Core Viewpoint - Shenzhen is implementing a comprehensive plan to promote high-quality development in service trade and digital trade, aiming to enhance its international competitiveness and establish itself as a global economic center by 2030 and 2035 [1]. Group 1: Promotion of Efficient Flow of Trade Resources - The plan focuses on four key areas: facilitating cross-border data flow, accelerating technology transfer, providing financial support for trade development, and enabling talent mobility [2]. - A pilot "negative list" system for cross-border data flow will be established in specific regions, allowing approved research institutions and enterprises to share scientific data securely [2]. - The initiative includes expanding the use of the Renminbi in cross-border transactions and improving the efficiency of its use in various financial activities [2]. Group 2: Innovation in Digital Trade - The plan aims to attract foreign investment in telecommunications and internet services, enhancing the overall scale and competitiveness of the software and information services industry [3]. - Support will be provided for the development of original digital products with independent intellectual property rights, focusing on improving technology content and user experience [3]. - The initiative encourages the use of advanced digital technologies to upgrade service industries, promoting innovation in digital services such as digital finance and online education [3]. Group 3: Enhancement of Service Trade - The plan includes measures to improve international transportation services and expand shipping routes to various regions, including Europe and Africa [6]. - It aims to attract high-level international medical resources and professional service institutions to establish a presence in Shenzhen [6]. - The initiative also seeks to develop cross-border financial and insurance services, enhancing the efficiency of cross-border fund settlement for e-commerce enterprises [6]. Group 4: Support for Digital and Smart City Services - The plan encourages the export of digital and smart city services to markets in ASEAN, the Middle East, Latin America, and Southern Europe [7]. - It aims to facilitate cross-border travel services and support foreign-invested travel agencies in conducting outbound tourism business [7]. - The initiative promotes the development of high-value-added bonded maintenance services and the establishment of a global trading center for electronic components [7].

Core Viewpoint - Shenzhen is implementing a comprehensive plan to promote high-quality development in service trade and digital trade, aiming to enhance its international competitiveness and support its goal of becoming a globally influential economic center by 2030 and 2035 [1]. Group 1: Promotion of Efficient Flow of Trade Resources - The implementation plan focuses on four key areas: facilitating cross-border data flow, accelerating technology transfer, providing financial support for trade development, and enhancing talent mobility [3]. - A pilot program for a "negative list" system for cross-border data flow will be established in specific regions, allowing approved research institutions and enterprises to share scientific research data internationally [3]. - The plan aims to expand the use of the Renminbi in cross-border transactions, improving efficiency and convenience for businesses [3]. Group 2: Innovation in Digital Trade - The plan proposes to open up value-added telecommunications services to attract foreign investment in internet data centers and related services [5]. - It emphasizes the importance of enhancing the software and information services sector, supporting quality software companies, and promoting the export of software services [5]. - The development of high-end outsourcing in sectors like biomedicine, software development, and cultural creativity is encouraged, along with the establishment of digital creative industry parks [5]. Group 3: Enhancement of Service Trade - The plan includes measures to strengthen international transportation services and expand shipping routes to Europe, Oceania, and Africa [8]. - It aims to attract foreign investment in specialized service sectors, including healthcare and professional services, by clarifying regulations for foreign-owned hospitals and encouraging international collaboration in education and research [9]. - The development of cross-border financial and insurance services is prioritized, with initiatives to facilitate efficient cross-border fund settlement for e-commerce businesses [9]. Group 4: Facilitation of Cross-Border Travel Services - The plan explores allowing qualified foreign-invested travel agencies registered in Shenzhen to conduct outbound tourism business outside Taiwan [10]. - It supports the development of high-value-added bonded maintenance services and aims to establish Shenzhen as a global trading center for electronic components [10].

Core Viewpoint - The company reported strong financial performance for 2024, with significant growth in net profit, while the first quarter of 2025 showed a decline in both revenue and net profit, indicating potential challenges ahead [1][2]. Financial Performance - For 2024, the company achieved revenue of 6.452 billion and net profit of 1.428 billion, representing year-on-year growth of 8.22% and 60.92% respectively [1]. - In the first quarter of 2025, revenue and net profit were 1.323 billion and 0.239 billion, showing year-on-year declines of 11.07% and 19.09% respectively [1]. Business Segmentation - The company's revenue composition was 72% from gaming and 28% from software and information services, with year-on-year growth of 3.66% and 22.21% respectively [2]. - Key gaming titles, Age of Origins and War and Order, contributed 74% and 23% to total gaming revenue [2]. - The software and information services segment focused on AI/ICT operational management products, including AI, cloud services, and information security [2]. Profitability Metrics - The overall gross margin slightly decreased by 1.7 percentage points to 61%, while the gaming gross margin increased by 1.56 percentage points to 72.7% [2]. - The company experienced changes in expense ratios, with sales, management, finance, and R&D expense ratios adjusting to 15.6%, 19.66%, -1.71%, and 5.15% respectively [2]. Regional Performance - The overseas business showed a revenue growth of 12.84%, with a slight increase in gross margin by 0.82 percentage points to 68.09%, indicating strong momentum and competitiveness in international markets [2]. Competitive Advantage - The company has established significant competitive barriers through its subsidiary, Shellwood Games, which is recognized as an early pioneer in the overseas market for strategy games, showcasing international product development and distribution capabilities [3]. - The integration of AI technology and AIGC tools is expected to help maintain this competitive edge and facilitate the launch of new products in the future [3]. Profit Forecast - The company anticipates revenue growth rates of 18.8%, 12.7%, and 10% for 2025-2027, with net profit growth rates of 6.5%, 9.7%, and 7.2% respectively [3]. - Earnings per share (EPS) are projected to be 0.77 yuan, 0.85 yuan, and 0.91 yuan for 2025-2027, with a target price of 15.4 yuan based on a 20x PE valuation for 2025 [3].