Core Viewpoint - Beijing Zhangqu Technology Co., Ltd. reported a decline in both revenue and net profit for the first half of 2025, indicating continued pressure on its performance [1][2]. Financial Performance - The company achieved a revenue of 358 million yuan, a year-on-year decrease of 23.44% [2][3]. - The net profit attributable to shareholders was 48 million yuan, down 65.58% year-on-year, while the net profit excluding non-recurring items was 50 million yuan, a decrease of 57.72% [2][3]. - In Q2 2025, revenue was 196 million yuan, a year-on-year decline of 7.54% but a quarter-on-quarter increase of 20.93% [2]. - The net profit for Q2 was 20 million yuan, reflecting a year-on-year drop of 76.02% and a quarter-on-quarter decrease of 28.48% [2]. Cash Flow and Assets - The net cash flow from operating activities was -26 million yuan, compared to 47 million yuan in the same period last year, primarily due to reduced sales receipts [4]. - Total assets at the end of the reporting period were approximately 5.31 billion yuan, showing a slight decrease of 0.07% from the previous year [3]. - The net assets attributable to shareholders increased by 0.79% to approximately 4.90 billion yuan [3]. Game Business Performance - The gaming business generated 330 million yuan in revenue, a decline of 24.63% year-on-year [4]. - Key games include "One Punch Man: The Strongest Man" with revenue of approximately 108 million yuan, "The King of Fighters 98 Ultimate Match OL" with 59 million yuan, and "All-Miracle 2" with 48 million yuan [4]. - The company currently operates 19 games, focusing on the SLG segment and accelerating the development of new titles [5]. Shareholder Activity - The company's largest shareholder, Liu Huicheng, announced plans to reduce his holdings by up to 27.2 million shares due to personal financial needs [5]. - As of June 30, Liu Huicheng had already reduced his holdings by 3.3 million shares, maintaining a direct ownership of 6.13% [6][7].

Group 1 - The global mobile game market is experiencing a slowdown, but the SLG (Simulation Game) segment presents structural investment opportunities due to high user spending, long lifecycle, and global adaptability [1][2] - In 2024, the global strategy game revenue is projected to reach $17.5 billion, making it the top category in mobile games, with significant contributions from Chinese titles like "Last War: Survival" and "Whiteout Survival" [2] - The proportion of strategy games among the top 100 self-developed mobile games in overseas markets is 41.38%, indicating a strong presence and growth potential for SLG games [2] Group 2 - SLG developers are innovating gameplay to attract lighter users and reduce user acquisition costs, with successful cases emerging from SLG+ simulation and mini-games [1][3] - The industry is focusing on two main strategies: maintaining core SLG features while reducing player investment ("降肝降氪") and integrating lighter gameplay elements to broaden user appeal [3] - The enduring popularity of Three Kingdoms themes and the combination of new themes and IPs are helping SLG games to explore new market spaces [3] Group 3 - Notable products are successfully entering overseas markets, providing stable revenue support, such as "Whiteout Survival," which has generated $2.25 billion globally by March 2025 [4] - The games "Age of Origins" and "War and Order" have shown stable growth in ARPU and revenue, contributing 96.83% to the total revenue of Shenzhou Taiyue's gaming business [4] - New games like "Stellar Sanctuary" and "Next Agers" are undergoing commercialization testing overseas, potentially offering new revenue streams for the company [4]