Core Viewpoint - The company Tom Cat (300459.SZ) reported its first half-year loss since its listing, with a significant decline in revenue and a shift from profit to loss in the first half of 2025 [1][2]. Revenue and Profit Summary - In the first half of 2025, Tom Cat achieved operating revenue of 463 million yuan, a year-on-year decrease of 19.62% [1] - The net loss attributable to shareholders was 30 million yuan, a drastic decline of 141.34% compared to the previous year [1] - The decline in revenue was primarily attributed to a decrease in in-game advertising revenue [2][3]. Advertising and Game Business Performance - The advertising business generated 335 million yuan in revenue, down 22.87% year-on-year, accounting for 72.41% of total revenue [3] - Key metrics such as average monthly active users, transaction counts, and advertising revenue all showed a downward trend compared to the same period in 2024 [3]. - The eCPM (effective cost per mille) for global casual games also exhibited a downward trend year-on-year [3]. Product Development and Revenue Diversification - In response to declining advertising revenue, the company is focusing on new product development, with several games set to launch in the third quarter, including "Talking Tom Gold Run 2" and "Talking Tom Town" [3]. - The company is exploring innovative monetization strategies, optimizing in-app purchases, and enhancing the proportion of in-app revenue in overall earnings [3][5]. Financial Challenges and Cost Management - Despite the revenue decline, the company's operating expenses did not decrease, with sales, management, and R&D costs rising by 4.85%, 4.91%, and 1.65% respectively [5]. - The company reported an investment loss of 5.613 million yuan, which increased from a loss of 3.136 million yuan in the previous year, accounting for 32.27% of total profit [5][6]. - The company also faced credit impairment losses of 16,010 yuan, contributing to a negative operating profit of -17.603 million yuan [6]. Shift in Strategic Focus - The company has shifted its focus towards AI hardware, moving away from previously emphasized concepts like the metaverse and AR, which were highlighted in earlier reports [1][7]. - The introduction of AI products, including the first-generation AI emotional companion robot, is part of the company's strategy to tap into the AI companion hardware market [8]. - The company has formed strategic partnerships to develop an "AI + IP" ecosystem, although specific sales figures for the AI robots have not been disclosed [8].

Core Viewpoint - The financial performance of the company Tom Cat (300459) has significantly declined in the 2025 mid-year report, with a notable drop in both revenue and net profit compared to the previous year [1][3]. Financial Performance Summary - Total revenue for the first half of 2025 was 463 million yuan, a decrease of 19.62% year-on-year [1]. - The net profit attributable to shareholders was -30.33 million yuan, reflecting a year-on-year decline of 141.34% [1]. - The gross profit margin was 86.59%, down 2.31% from the previous year, while the net profit margin was -6.89%, a decrease of 154.24% [1]. - Total expenses (sales, management, and financial) amounted to 328 million yuan, accounting for 70.9% of revenue, an increase of 27.6% year-on-year [1]. - Earnings per share were -0.01 yuan, a decline of 150.0% compared to the previous year [1]. Cash Flow and Debt Analysis - The net cash flow from operating activities decreased by 51.93%, attributed to reduced cash received from sales [3]. - The company’s cash and cash equivalents decreased by 34.91% to 357 million yuan [3]. - The interest-bearing debt decreased by 11.70% to 1.563 billion yuan [1]. Business Evaluation - The company's historical return on invested capital (ROIC) has been relatively low, with a median ROIC of 9.01% since its listing [4]. - The company has experienced three years of losses since its IPO, indicating a fragile business model [4]. - The cash flow situation is concerning, with a cash to current liabilities ratio of only 22.63% [4]. Fund Holdings - The largest fund holding Tom Cat shares is the Southern CSI 1000 ETF, with 32.47 million shares, indicating a new entry into the top ten holdings [5]. - The fund has shown a significant increase in value, with a 65.64% rise over the past year [5]. Future Developments - The company is focusing on developing in-app purchase games, with recent products showing a year-on-year revenue growth of 27% and 24% in April and May respectively [6]. - New game products are in development, including "Tom Cat Town" and "Tom Cat Mobilization 2," aimed at enhancing user interaction and expanding the user base [6].