Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [16]. Core Insights - The company experienced short-term pressure on performance, with Q4 2024 revenue at 138 million yuan, down 19.8% year-over-year and 2.0% quarter-over-quarter. The net profit attributable to shareholders was -44 million yuan, and the net profit after deducting non-recurring items was -46 million yuan. For Q1 2025, revenue was 102 million yuan, down 25.6% year-over-year and 25.8% quarter-over-quarter, with a net profit of 2 million yuan [1]. - The overall revenue for 2024 is projected at 550 million yuan, a decrease of 19% year-over-year, with a net profit of 30.58 million yuan and a net profit after deducting non-recurring items of 5.3 million yuan [1]. Financial Performance Summary - **Revenue and Profit Forecasts**: - 2024A: Revenue of 550 million yuan, net profit of 31 million yuan - 2025E: Revenue of 1,025 million yuan, net profit of 311 million yuan - 2026E: Revenue of 1,278 million yuan, net profit of 401 million yuan - 2027E: Revenue of 1,433 million yuan, net profit of 454 million yuan - **Growth Rates**: - Revenue growth rates are projected at -18.7% for 2024, 86.1% for 2025, 24.8% for 2026, and 12.1% for 2027 [3]. - Net profit growth rates are projected at -46.2% for 2024, 918.6% for 2025, 28.7% for 2026, and 13.3% for 2027 [3]. Business Segmentation - The company's PC game segment generated 370 million yuan in revenue for 2024, down 15.9% year-over-year, with a gross margin of 83.26%. The mobile game segment generated 160 million yuan, down 20.69% year-over-year, with a gross margin of 45.89% [7]. - Core products are performing steadily, with the flagship product "Dream Three Kingdoms 2" operating for over 10 years and having over 100 million registered users. The company is also launching new games like "Spiral Warrior" and "Jianghu Like Dream" in 2024 [7]. Future Outlook - The company has a rich pipeline of upcoming products, with a focus on the open-world game "Xiu Xian Era," which is expected to bring significant revenue and profit elasticity. The game will be published by Tencent and is set to be showcased at the 2025 Tencent Game Conference [7]. - Revenue forecasts for 2025-2027 are optimistic, with expected revenues of 1.03 billion yuan in 2025, 1.28 billion yuan in 2026, and 1.43 billion yuan in 2027, alongside substantial growth in net profits [7].