Group 1 - The core business of the company includes mobile game operations and the design, production, and sales of various playing cards, with digital marketing contributing the highest revenue share at 34.91% and playing cards at 33.07% [3] - Since its listing in 2011, the company has achieved a cumulative net profit growth of 643.01%, reaching 539 million yuan in the latest fiscal year 2024, with no annual losses recorded over the 14 years [3] - Revenue has shown volatility, with a peak of 2.562 billion yuan in 2020 and a decline of 24.04% in 2024, resulting in revenue of 3.271 billion yuan [3] Group 2 - The company's market value has increased by 2.29 times since its listing, peaking at 19.845 billion yuan on June 19, 2023, with a stock price of 48.2 yuan [5] - As of August 4, 2023, the stock price dropped to 26.53 yuan, leading to a market value of 11.08 billion yuan, representing a decrease of 8.766 billion yuan and a market value evaporation of 44.17% from its peak [5]

Core Viewpoint - Yaoji Technology, known as "the first poker stock," is facing a share reduction by its controlling shareholder, which may indicate liquidity needs and could impact investor sentiment [1][2]. Group 1: Shareholder Actions - The controlling shareholder, Yao Shuaobin, and four other associated parties plan to reduce their holdings by up to 12.52 million shares, representing 3% of the total share capital [1]. - The reduction will occur through both centralized bidding and block trading, with a maximum of 1% and 2% of the total share capital being sold through these methods, respectively [1]. - As of the announcement, Yao Shuaobin and associated parties hold 206.9 million shares, accounting for 49.63% of the total share capital [2]. Group 2: Financial Performance - Yaoji Technology's revenue has seen significant growth from 980 million yuan in 2018 to 4.307 billion yuan in 2023, but there was a notable decline in revenue in 2023 [3]. - The company's revenue for 2024 is reported at 3.271 billion yuan, a decrease of over 1 billion yuan, representing a year-on-year decline of 24.04% [3]. - The decline in revenue is attributed to all three main business segments, with digital marketing experiencing the most significant drop of 40.25% [3]. Group 3: Profitability Trends - The net profit of Yaoji Technology peaked at 1.093 billion yuan in 2020 but has been on a downward trend since, with net profits of 547 million yuan in 2021 and 349 million yuan in 2022 [4]. - In 2023, the net profit slightly rebounded to 539 million yuan, but it still represented a year-on-year decrease of 4.17% [4]. - The first quarter of the current year shows continued declines in both revenue and net profit, with revenue at 779 million yuan, down 20.67%, and net profit at 141 million yuan, down 6.70% [4].

Core Viewpoint - The company reported a significant decline in revenue for 2024, with total revenue of 3.271 billion (down 24.04% year-on-year) and a net profit of 539 million (down 4.17% year-on-year) [1] Group 1: Business Performance - The poker business remained stable, while overseas gaming business showed strong performance; however, revenue decline was attributed to reduced income from digital marketing and gaming segments [2] - In 2024, gaming business revenue was 1.015 billion (down 17.20% year-on-year), accounting for 31.04% of total revenue, with domestic gaming revenue declining due to high 2023 base and product cycle factors [2] - The overseas gaming business saw revenue and profit growth, with the subsidiary Dayu Competition achieving revenue of 140 million (up 10.07% year-on-year) and net profit of 5.95 million (returning to profit) [2] - The poker business generated revenue of 1.082 billion (down 0.75% year-on-year), benefiting from sales structure adjustments and improved high-margin poker sales, with a gross margin increase of 3.84 percentage points to 30.40% [2] Group 2: Digital Marketing and Cost Management - Digital marketing revenue for 2024 was 1.142 billion (down 40.25% year-on-year), with a gross margin increase of 2.31 percentage points to 7.76% [3] - The company improved profit margins in Q4 2024, with a gross margin of 75.85% (up from 51.26% in Q3 2024) due to a decrease in low-margin advertising business and improved gross margins [4] - Sales expenses in Q4 2024 decreased by 48% to 50 million, while R&D expenses decreased by 13% to 60 million, indicating effective cost management [4] Group 3: Future Outlook - The company is expected to expand poker production capacity, addressing capacity bottlenecks and increasing market share [4] - The casual gaming segment is performing well, with overseas gaming business showing competitive advantages; prior investments in R&D and marketing are anticipated to yield profits in the future [4] - Strategic investment in Shanghai Luda aims to participate in card development and operations, with expectations for continued growth in the card business [4] - Profit forecasts for 2025 and 2026 are 600 million and 670 million respectively, with corresponding PE ratios of 17.9 and 16.1, maintaining a buy rating [4]