Core Viewpoint - Cheer Holding, Inc. reported stable financial performance for the first half of 2025, with total revenues of approximately $71.0 million and a net income of $11.2 million, reflecting slight changes compared to the previous year [1][9][11]. Financial Highlights - Total revenues for the six months ended June 30, 2025, were approximately $71.0 million, compared to $71.1 million in the same period of 2024 [9]. - Net income decreased to $11.2 million from $12.4 million year-over-year [11]. - Cash and cash equivalents increased to approximately $203.2 million as of June 30, 2025, from $197.7 million at the end of 2024 [12]. Segment Revenues - Revenue from CHEERS App Internet Business was $65.5 million, accounting for 92.26% of total revenues [8]. - Revenue from Cheers Traditional Media Business was $5.5 million, making up 7.74% of total revenues [8]. Operating Highlights - CHEERS Video accumulated downloads grew by 1.85% year-over-year to approximately 440 million, with monthly active users increasing by 0.02% to about 51.1 million [8]. - CHEERS e-Mall downloads increased by 16.07% year-over-year to 70.4 million, with monthly active users rising by 0.44% to approximately 6.9 million [8]. - CHEERS Telepathy saw a significant increase in monthly active users, up 263.33% year-over-year to approximately 3.3 million [8]. Operating Expenses - Cost of revenues increased by approximately $1.9 million, or 9.99%, to $20.8 million [14]. - Selling and marketing expenses decreased by approximately $2.3 million to $35.3 million [14]. - General and administrative expenses decreased from approximately $1.6 million to $0.8 million [14]. - Research and development expenses increased to approximately $2.3 million from $1.4 million [14]. Cash Flow - Net cash provided by operating activities was approximately $3.9 million [8]. - The company reported a net increase in cash and cash equivalents of $5.6 million for the period [22]. Company Overview - Cheer Holding is a leading provider of advanced mobile internet infrastructure and platform services, focusing on building a digital ecosystem that integrates various technologies [13]. - The company is developing a 5G+VR+AR+AI shared universe space leveraging cutting-edge technologies [13].

Core Viewpoint - The AI era presents a significant shift from the mobile internet paradigm, emphasizing "implementation" over mere "connection," leading to unprecedented opportunities for entrepreneurs in the AI space [1][5][6]. Group 1: Old vs New Paradigm - The old mobile internet paradigm focused on connecting large user bases and applications, while the new AI paradigm emphasizes depth and high-value implementation [4][6]. - Major tech companies are still operating under the old paradigm, which creates space for new entrants to focus on specific, high-value applications that these giants cannot fully address [5][6]. Group 2: Model Dividend - The current model dividend represents the largest opportunity in history, driven by rapid advancements in AI models since late last year [10][11]. - Companies leveraging new model capabilities in niche markets have seen significant success, with some achieving valuations exceeding $5 billion [12][15]. - The speed of achieving revenue milestones in AI has accelerated, with companies reaching $1 million in annual revenue much faster than in previous tech waves [7][11]. Group 3: Opportunities in Agent and Multimodal - The next major opportunities lie in the development of Agent capabilities and multimodal applications, which are expected to see rapid advancements in the coming year [30][31]. - The ability of models to perform complex tasks and integrate various tools is still in its early stages, indicating a significant growth potential [33][34]. - The B2B sector remains underexplored for multimodal applications, presenting a substantial opportunity for innovation [35][36]. Group 4: Market Dynamics - Entrepreneurs should focus on high-value, specific problems rather than large-scale user acquisition, as the model capabilities allow for significant impact with smaller user bases [18][19]. - The global market presents vast opportunities, and companies should not limit themselves to domestic markets but rather seek to address pain points across various industries worldwide [21][22]. - Successful companies are those that can identify and solve specific industry challenges using advanced AI models, leading to substantial competitive advantages [23][24].