Core Insights - The company reported a revenue decline of 18.9% in the first half of 2025, totaling 686 million yuan, but achieved a net profit of 32.95 million yuan, marking a turnaround from losses [1] - Operating cash flow showed a significant increase of 71.2%, reaching 57.86 million yuan, indicating improved cash management [1] - The company's strategic transformation over the past five years is reflected in its financial performance, with a focus on enhancing player experience over maximizing advertising revenue [1][2] Financial Performance - Revenue decreased primarily due to the lifecycle stage of the game "Honor All-Stars" and a deliberate reduction in advertising slots [1] - Cost control measures and improved profit margins from new products contributed to the profit increase [1] - Sales and marketing expenses rose by 39.4% to 108.4 million yuan, driven by increased promotion for "Kara Bichu" and new game launches [1][2] Product Development - R&D expenses fell by 68.2% to 48.7 million yuan, attributed to the completion of "Kara Bichu" development and enhanced efficiency from AI technology [2] - "Kara Bichu" saw a 9.9% increase in monthly active users and a 74.8% increase in revenue, with significant improvements in payment rates [2] - The game’s unique positioning in the market, combining "anime" and "shooting" elements, has created a competitive edge [2] Market Strategy - The company is focusing on expanding into the Middle East, establishing a regional headquarters in Riyadh and forming partnerships with local gaming platforms [3] - "Kara Bichu" was included in the Saudi Esports World Cup, enhancing its global visibility [3] - The international launch of the PC version has attracted a loyal user base in Japan and the West, maintaining a strong presence on Steam [3] Challenges and Future Outlook - Despite current successes, the company faces challenges in the mobile gaming market, where competition is fierce [3] - There are concerns regarding user retention and content updates, as evidenced by a significant drop in online player numbers [3] - The management acknowledges the risks associated with strategic adjustments and is optimistic about the upcoming mobile version launch, which is expected to drive new growth [3][4] Industry Trends - The performance of "Kara Bichu" will be crucial in determining the company's ability to navigate its transformation phase [4] - The gaming industry is shifting towards a focus on quality, efficiency, and globalization, moving away from previous growth models [4] - The transition from PC to mobile gaming typically expands the user base, attracting non-traditional players [4]

Core Viewpoint - The company reported a significant increase in revenue and net profit for the mid-term of 2025, indicating strong operational performance and a solid foundation for long-term growth [1][2]. Financial Performance - The company achieved a revenue of 686 million yuan and a net profit of 32.95 million yuan, with an operating cash inflow of 57.86 million yuan, reflecting a year-on-year growth of 71.2% [1]. Business Strategy - The company focuses on long-term operations by introducing overseas premium games with clear user positioning and stable revenue streams, enhancing user value through refined operations [1]. - Classic products like "Subway Surfers," "Dream Garden," and "Dream Home" contributed to stable income, with "Dream Garden" showing a more than 9% year-on-year increase in average monthly active user spending [1]. Product Development - The company is deploying advanced large models in various aspects of game development, leading to improved overall R&D efficiency and game quality [2]. - The self-developed global user voice analysis platform "Fengsheng" and AI customer service system have enhanced user feedback and reduced manual intervention during the global launch of "Karabichu" [2]. Upcoming Releases - The second half of 2025 will see a concentrated release of new products, including "Karabichu," which has shown strong market potential during testing, with 46.5% of new users coming from organic spread [2]. - The company plans to launch several overseas agency games, including "Chong Chong Qibing," further diversifying its revenue sources [2]. Leadership Perspective - The chairman emphasized the company's commitment to long-termism, focusing on core gaming business and continuously creating quality content and value for users, which is seen as essential for navigating cycles and achieving value transitions [2].

Core Viewpoint - The company, Chuangmeng Tiandi (01119), reported a significant turnaround in its mid-term performance for the six months ending June 30, 2025, achieving a net profit attributable to shareholders of 28.514 million yuan, compared to a loss of 110 million yuan in the same period last year, indicating a successful recovery [1]. Financial Performance - The company's revenue for the period reached 686 million yuan, with a gross profit of 289 million yuan [1]. - The basic earnings per share were reported at 0.02 yuan [1]. Business Segments - The gaming segment remains the primary revenue driver, contributing 97.5% of total revenue for the six months ending June 30, 2025, and 97.3% for the same period in 2024 [1]. - Key titles such as "Subway Surfers," "Dream Garden," "Dream Home," and "Mecha Squad" continue to generate significant revenue, while new releases like "Legendary Store: Management and Crafting" and the jointly developed "Delta Action" with Tencent have also performed well [1].