Core Insights - The company has successfully completed a board restructuring, strengthening its governance foundation and continuing its "product + technology" dual-driven strategy to enhance its competitive advantage in the gaming market [1] Group 1: New Game Development - The company is focusing on new game reserves as a growth engine, targeting high-value and high-potential segments, with a "key breakthroughs and multiple developments" approach [2] - The SLG games "Code H" and "Code S" are in critical development stages, expected to support future revenue growth and are seen as potential core products following the "Miracle" series [2] - The lightweight game "Great Sage Hold On," launched in Q3 2023, has quickly achieved stable revenue, demonstrating the company's capabilities in casual gaming and enhancing its product matrix [2] Group 2: Product Matrix Construction - As of the first half of 2025, the company operates 19 game products, creating a multi-dimensional product matrix covering MMO, card games, SLG, and casual games [3] - The product matrix balances long-term revenue stability from heavy products and short-term revenue from casual games, effectively meeting diverse market demands [3] - The matrix is designed to cater to different user groups, enhancing the company's adaptability to the gaming market and creating a positive growth cycle [3] Group 3: Market Feedback and Future Outlook - The product matrix has shown strong resilience and growth potential, providing stable cash flow while new game reserves open up incremental opportunities [4] - The dual-driven model allows the company to withstand short-term market fluctuations with mature products while seizing opportunities in niche segments with new game launches [4] - As key new games like "Code H" and "Code S" approach their launch phases, the product matrix is expected to expand further, solidifying the company's leadership in high-quality development within the gaming industry [4]

Core Viewpoint - The company,掌趣科技, reported a significant decline in both revenue and net profit for the first half of 2025, indicating ongoing challenges in its business operations and financial performance [1][3]. Financial Performance - The company achieved a revenue of 358 million yuan, a decrease of 23.44% compared to the same period last year [2]. - The net profit attributable to shareholders was 48 million yuan, down 65.58% year-on-year [2]. - The net profit after deducting non-recurring gains and losses was 50 million yuan, reflecting a 57.72% decline [2]. - The net cash flow from operating activities was -25 million yuan, a drop of 154.52% from the previous year [2]. - Basic and diluted earnings per share were both 0.02 yuan, down 60% from 0.05 yuan [2]. - The weighted average return on equity decreased to 0.98%, down 1.89 percentage points from the previous year [2]. Business Operations - The decline in revenue is attributed to ongoing development and adjustment of SLG game products, which have not yet been launched on a large scale, alongside a natural decline in revenue from mature game products due to their lifecycle [3]. - The gaming business revenue for the first half of the year was 330 million yuan, down 24.63% year-on-year, with a gross margin of 72.20%, a decrease of 4.57% [4]. - The company has been under financial pressure due to the decline in its main business, with a continuous drop in revenue for four consecutive years since 2021 [4]. - The number of R&D personnel has been reduced significantly from over 1,000 in 2020 to 477 by the end of 2024, indicating a strategic shift in resource allocation [4]. Shareholder Actions - The chairman of the company, Liu Huicheng, initiated a share reduction plan, intending to sell up to 27.2 million shares between June 5 and September 4, potentially raising around 165 million yuan based on the latest share price [5]. - As of June 30, Liu Huicheng still holds a 6.13% stake in the company after reducing his holdings by 3.3 million shares [5].

Group 1: Product Development and Market Strategy - The company is actively developing mini-games for the domestic market and focusing on SLG games for the overseas market, with titles like "Code S" and "Code H" in progress [1] - Currently launched mini-games have experienced a decline in revenue compared to their initial launch due to product lifecycle factors [2] - The company plans to adjust the development and promotion pace of mini-games based on testing data and market conditions [2] Group 2: Financial Performance and Cost Factors - The gross margin for mobile terminal games decreased by 1.60% in 2024, influenced by the structural adjustment of game product types [1] - The company is implementing strategies to maintain market share and brand awareness through new game launches and promotions [2] Group 3: Talent Acquisition and Resource Allocation - The company aims to attract and retain high-end talent through reasonable incentives, empowerment, and development opportunities [2] - The current focus is on mini-games and SLG games, with potential research and small-scale trials for new game categories [2] Group 4: Currency Risk Management - The company acknowledges that a decline in the US dollar could impact profits due to the significant contribution of overseas business to revenue [2] - A currency risk management strategy is in place to monitor global exchange rate fluctuations [2] Group 5: Disclosure of Information - The investor relations activity did not involve any undisclosed significant information [3]