Group 1: AI Product Development - The company launched the AI-native music social app "Ge Mai" in 2023, which integrates AI applications for music socializing and creation, achieving breakthroughs in emotional analysis, voice, and text recognition [2][5] - The company plans to introduce AI virtual human features, including AI companions and emotional consultants, enhancing user interaction in social scenarios [3][4] Group 2: AI Strategy and Infrastructure - The company has established a comprehensive AI platform covering application, model, and infrastructure layers, with the AI Innovation Lab founded in 2023 to drive deep integration of AI technology [4][6] - The company has developed its own cloud and computing infrastructure, achieving ultra-low latency of 0-20ms and creating a flexible computing pool to support AI inference needs [6] Group 3: Game Development and IP Strategy - The company is collaborating with international IP partners like Koei Tecmo to develop derivative products and extend the lifecycle of core IPs such as "Romance of the Three Kingdoms" [8][9] - The original IP game "Star Wings" was launched in Japan in November 2024, with plans for releases in Korea and Southeast Asia in 2025, achieving over 60% of monthly revenue from Japan [9][10] Group 4: Financial Performance and Future Outlook - In Q1 2025, the company reported a revenue increase of 24.16% year-on-year, driven by significant growth in advertising and game distribution revenues [12][13] - The company has over 1 billion in cash reserves, providing a solid financial foundation for future development and potential mergers and acquisitions [13] Group 5: Challenges in Overseas Expansion - The company faces challenges in overseas markets, including complex regulatory policies and cultural preferences, which could hinder product acceptance and launch [11] - To mitigate risks, the company has formed specialized operational teams to study target market regulations and user needs [11]

Core Viewpoint - The revenue growth in advertising and game publishing has led to a recovery in the performance of ShengTian Network (300494.SZ) in Q1 2025 [1] Financial Performance - In Q1 2025, the company achieved an operating revenue of 315 million yuan, a year-on-year increase of 24.16% [1] - The net profit attributable to shareholders was 25.43 million yuan, reflecting a year-on-year growth of 78.56% [1] - The net profit after deducting non-recurring items was 24 million yuan, up 143.8% year-on-year [1] - The net operating cash flow was -4.89 million yuan, an increase of 94.2% year-on-year [1] Business Segments - The main business areas include advertising value-added services and game publishing, with significant revenue growth in advertising services driving overall revenue increase [1] - The advertising business integrated various media resources, including search engines, social platforms, live streaming, short videos, vertical media platforms, and portal websites, to provide systematic marketing services, resulting in a notable rise in advertising revenue [1] - The game publishing segment saw success with the fighting game "Star Wings" and the independent game "Hero's Journey," which gained popularity among domestic and overseas players [1] Historical Financial Data - From 2020 to 2024, the company reported operating revenues of 896 million yuan, 1.22 billion yuan, 1.66 billion yuan, 1.33 billion yuan, and 1.14 billion yuan respectively [2] - The net profits attributable to shareholders during the same period were 60 million yuan, 125 million yuan, 222 million yuan, 169 million yuan, and -261 million yuan [2] - The decline in revenue and profit in 2024 was attributed to decreased game revenue, lower settlement prices, and ongoing preparations for new game releases [2] Strategic Direction - For 2025, the company aims to continue its strategic mission of "empowering scenarios with technology to make entertainment more interesting" [2] - The focus will be on leveraging opportunities brought by technological changes such as AI and virtual reality, driving content innovation and scenario expansion [2] - The company plans to build a three-dimensional development layout consisting of "application layer breakthroughs, model layer deep cultivation, and infrastructure layer consolidation" [2]

Performance Overview - In 2024, the company achieved operating revenue of 1.136 billion, a year-on-year decline of 14.56% [1] - The net profit attributable to shareholders was -261 million, and the net profit excluding non-recurring items was -272 million [1] - In Q1 2025, the company reported operating revenue of 315 million, a year-on-year increase of 24.16% [1] - The net profit attributable to shareholders for Q1 2025 was 25.43 million, a year-on-year increase of 78.56% [1] - The net profit excluding non-recurring items for Q1 2025 was 23.99 million, a year-on-year increase of 143.78% [1] Game Releases and Performance - The game "Star Wings" received positive reviews and was launched in the domestic market in Q2 2024, with a release in Japan on November 21, 2024 [2] - "Star Wings" achieved second place on both Google Play and App Store in Japan within its first month and ranked in the top two on Steam's Japanese sales chart [2] - The game "Heroic Legend" launched on Steam in Q2 2024, gaining significant attention and ranking ninth in Steam's domestic sales chart [2] - "Heroic Legend" also performed well in overseas markets, ranking in the top seven on Steam's Korean sales chart [2] - The company plans to release a DLC version for "Heroic Legend" in 2025 and will continue to develop the game for long-term operation [2] Technological Advancements - The company is rapidly iterating its product features and has seen a continuous increase in user numbers [3] - The integration of DeepSeek technology has led to breakthroughs in multi-modal models, including emotion analysis and voice recognition [3] - The launch of the "AI Astrology" feature combines astrology culture with AI technology to enhance user engagement [3] - The company is exploring AI and social interaction scenarios, aiming to develop AI virtual companions and enhance user experience [3] Strategic Partnerships - The company has partnered with NIO and Lantu Motors to explore multi-scenario entry points for cloud gaming [4] - NIO's new smart system version Banyan 3.0.0 will feature cloud gaming support from the company's platform [4] - The collaboration with Lantu Motors aims to enhance the entertainment experience in their new electric SUV [4] Revenue Forecast - The company is expected to achieve operating revenues of 1.533 billion, 1.809 billion, and 1.990 billion for the years 2025 to 2027, respectively [4] - The net profit attributable to shareholders is projected to be 141 million, 166 million, and 192 million for the same period [4] - Corresponding price-to-earnings ratios are estimated at 37, 32, and 27 times [4]

在游戏业务方面，公司在2024年发行的格斗类游戏《星之翼》和独立游戏《活侠传》在上线后，均获得 了国内及海外玩家的喜爱，取得较好成绩。其中《星之翼》自开通Steam端登录渠道以来，不仅其人气 在中国国内持续攀升，更吸引了日本格斗爱好者的广泛关注。 盛天网络方面表示，未来公司将紧跟AIGC、虚拟现实等新技术变革下带来的产业机遇，全速推进 AI+的应用战略落地。 根据同期发布的2024年年报，盛天网络去年全年实现营业收入11.36亿元，同比下降14.56%。2024年， 该公司IP运营业务收入较上年同期降幅较大，主要原因是游戏流水下降及部分结算价格下降，新游戏产 品的发行还在筹备过程中。 但从今年一季度财务数据看，盛天网络营收、净利润触底回升态势明显，主要原因是广告业务收入和游 戏发行业务收入同比增加导致。 广告业务方面，今年一季度，盛天网络整合自有平台的媒介资源以及搜索引擎、社交平台、直播平台、 短视频、垂直媒体平台、门户网站等多种媒介资源和多种传播形式，为全网广告客户提供系统化的营销 服务，其广告收入提升显著。 （原标题：广告和游戏发行收入增加 盛天网络一季度净利润同比增长78.56%） 4月28日，盛天网络 ...

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company reported a revenue of 1.136 billion yuan in 2024, a year-on-year decline of 14.56%, and a net profit attributable to shareholders of -261 million yuan [1] - In Q1 2025, the company achieved a revenue of 315 million yuan, a year-on-year increase of 24.16%, and a net profit attributable to shareholders of 25.43 million yuan, a year-on-year increase of 78.56% [1] - The new games "Star Wings" and "Heroic Legend" have received positive feedback and are expected to expand into new markets [2] - The integration of AI applications through the "Give Mai" platform is showing promising results, enhancing user engagement and social interaction [3] - Collaborations with NIO and Lantu Motors for cloud gaming support are set to enhance the entertainment experience in vehicles [4] - Revenue projections for 2025-2027 are 1.533 billion, 1.809 billion, and 1.990 billion yuan respectively, with net profits expected to be 141 million, 166 million, and 192 million yuan [4] Financial Overview - In 2024, the company experienced a revenue decline of 14.56% compared to 2023, with a projected revenue growth of 35% in 2025 [5] - The net profit for 2024 is projected to be -261 million yuan, with a significant recovery expected in 2025 with a net profit of 141 million yuan [5] - The earnings per share (EPS) is expected to recover from -0.53 yuan in 2024 to 0.29 yuan in 2025 [5] - The company’s price-to-earnings (P/E) ratio is projected to be 37, 32, and 27 for the years 2025, 2026, and 2027 respectively [5]