Core Insights - The company reported its mid-year results for 2025, showing a revenue of 2.578 billion yuan, a year-on-year increase of 0.89%, and a net profit attributable to shareholders of 950 million yuan, up 17.41% year-on-year [1] Revenue Performance - The revenue growth in 1H25 was primarily driven by the long-term operation of classic IPs and the successful overseas launch of new games. Notable titles contributing to revenue include "Original Legend," "Blood of the Heroes," and "Sword and Fairy: New Beginnings." The overseas revenue reached 202 million yuan, a significant increase of 59.6% year-on-year [2] Cost Management - The company demonstrated a clear optimization in sales expenses, with Q2 2025 sales expenses amounting to 407 million yuan, down 13.69% year-on-year. The gross margin for Q2 2025 was 81.07%, reflecting a slight decrease of 0.91 percentage points year-on-year [2] R&D Investment - R&D expenses for Q2 2025 were 134 million yuan, representing a year-on-year increase of 13.59%. The company continues to prioritize R&D, particularly in AI projects, leading to an increase in both expenses and expense ratio [3] Management Expenses - Management expenses for Q2 2025 were 38 million yuan, down 13.87% year-on-year, with an expense ratio of 3.12% [4] Product Development - The company is enhancing user experience through the "Legend Box," which serves as a vertical ecosystem for players of legendary games, offering various functionalities such as game downloads and live interactions [5] Future Outlook - The company has a rich reserve of multi-dimensional IPs and is leveraging AI technology to optimize its product matrix. Upcoming games based on top IPs like "Douluo Dalu" and "Tomb Raider" are expected to launch within the year [6] Investment Recommendation - The company is expected to benefit from a robust product line and AI projects, with projected revenues of 6.1 billion yuan, 7.1 billion yuan, and 7.8 billion yuan for 2025-2027, and net profits of 2.1 billion yuan, 2.5 billion yuan, and 2.8 billion yuan respectively [7]

Group 1 - The core viewpoint of the news is the collaboration between Zhejiang Xianqu Interactive Entertainment Network Technology Co., Ltd. and Jiangxi Ganwan Information Technology Co., Ltd., which involves a payment of 200 million yuan for the establishment of a "Ganwan Game" celebrity zone within the Legend Box [2][3] - Ganwan Game is a well-known game distribution platform in China, focusing on the refined operation and innovative promotion of legendary games, having successfully created several phenomenon-level game products such as "Blue Moon Legend" and "Dragon Soaring Legend" [2] - Xianqu Interactive has developed a unique vertical community platform for legendary games, integrating game experience, community interaction, live streaming, and item trading, which enhances user engagement and community activity [2] Group 2 - This partnership represents an extension of the long-term collaboration between Kaiying Network and Ganwan Game, marking a comprehensive upgrade of the legendary IP ecosystem [3] - The entry of Ganwan Game will provide easier content access for its large user base and utilize integrated marketing strategies, including celebrity endorsements, to enhance product market penetration [3] - Both companies will share resources and collaborate on traffic sharing, content co-creation, and ecosystem building to elevate the market presence of the legendary IP and improve player experience [3]

Group 1 - The collaboration between Zhongxu Future (Ganwan) and Kaiying Network marks a significant enhancement of the Legend IP ecosystem, with the introduction of classic IPs such as "Blood Legend" and "Legend World" [1][2] - Ganwan Games, a well-known game distribution platform in China, has successfully developed several phenomenon-level games in the Legend genre, establishing a strong brand influence in this field [1][2] - The partnership aims to leverage community-based operations of the game box platform to enhance brand influence and provide a more convenient content entry for a large user base [2] Group 2 - The integration of Ganwan Games into Kaiying Network's game box will utilize a multi-faceted marketing approach, combining "star IP + game products" to enhance market penetration [2] - Both companies will share resources and collaborate on traffic sharing, content co-creation, and ecosystem building to increase the market presence of the Legend IP [2] - Future efforts will focus on user growth, content innovation, and the derivative value of IP, reinforcing the leading position of Legend games in the market [2]

Group 1 - Zhongxu Future (Tanwan) has deepened its business cooperation with Hangzhou Tianqiong Interactive Network Technology, obtaining licenses for classic IPs "Blood Legend" and "Legend World" [1] - The partnership with Zhejiang Xianqu Interactive Network Technology, a subsidiary of Kaiying Network, allows Tanwan to officially enter the game box section operated by Xianqu Interactive, creating a "Tanwan Games" star brand area [1] - Tanwan Games, a well-known game distribution platform in China, focuses on the refined operation and innovative promotion of legendary games, successfully launching several hit products and establishing a strong brand influence in the legendary game sector [1] Group 2 - This collaboration represents an extension of the long-term partnership between Zhongxu Future (Tanwan) and Kaiying Network, marking a comprehensive upgrade of the legendary IP ecosystem [2] - The entry of Tanwan Games will provide a more convenient content entry for its large user base and enhance product market penetration through integrated marketing strategies like signing celebrity endorsements [2] - Both companies will share resources and enhance the market presence of legendary IPs through traffic sharing, content co-creation, and ecological construction, aiming to improve user growth and content innovation [2]

Core Viewpoint - The company, formerly known as Zhongxu Future, is rebranding back to its original name "Tanwan" to better reflect its brand value and market recognition, especially in the gaming sector [1]. Group 1: Company Background - Tanwan Games was established in May 2015 and initially focused on the agency and operation of legendary games [4]. - The company underwent a brand upgrade to Zhongxu Future in early 2022 to pursue a public listing and expanded its business into food and trendy products [4]. - In September 2023, Zhongxu Future successfully listed in Hong Kong, with its stock price rising from an initial HKD 14 to a historical high of HKD 72.45 per share by January 2024 [4]. Group 2: Financial Performance - From 2020 to 2022, the company's revenue increased from RMB 2.872 billion to RMB 8.817 billion, but it has been declining since 2023, with projected revenue of RMB 5.58 billion in 2024, a year-on-year decrease of 14.34% [4]. - Net profit peaked at RMB 616 million in 2021 but fell sharply to RMB 44 million in 2024, representing a significant year-on-year decline of 83.89% [4]. - The decline in profit was attributed to a decrease in revenue outpacing cost reductions and a significant drop in other income, particularly from financial asset investments [4]. Group 3: Future Outlook - The company is expected to experience a turnaround in performance due to stable game license approvals and supportive policies for the gaming industry and AI technology integration [5]. - For the first half of 2025, the company anticipates a net profit of approximately RMB 600 million to RMB 700 million, a substantial recovery from a net loss of RMB 385 million in the same period last year [6]. - The profit increase is attributed to higher fair value gains from financial assets, a mature game product portfolio reducing customer acquisition costs, and improved marketing efficiency through AI technology [6].

Core Viewpoint - The company, formerly known as Zhongxu Future, is rebranding back to its original name "Tanwan" to better reflect its brand value and market recognition, especially in the gaming sector [2]. Group 1: Company Background and Rebranding - Zhongxu Future, established in 2015, initially operated under the name Tanwan Games, focusing on the agency and operation of legendary games [2]. - The company had previously rebranded to Zhongxu Future in early 2022 in pursuit of an IPO, but is now reverting to the Tanwan name to leverage its established brand recognition in the gaming industry [2]. - The company has a history of popular games, including "Original Legend" and "Blood of Heroes," which have contributed to its brand identity [2]. Group 2: Financial Performance - The company's revenue increased from 2.872 billion RMB in 2020 to 8.817 billion RMB in 2022, but has since declined, with projected revenue of 5.58 billion RMB in 2024, a year-on-year decrease of 14.34% [3]. - Net profit peaked at 616 million RMB in 2021 but fell drastically to 44 million RMB in 2024, representing an 83.89% decline year-on-year [3]. - The decline in profit is attributed to a decrease in revenue outpacing cost reductions and significant drops in other income, particularly from financial asset investments [3]. Group 3: Future Outlook - The company anticipates a potential turnaround in performance due to stable game license approvals and supportive policies for the gaming industry and AI technology integration [3]. - Preliminary assessments suggest that the company could achieve a net profit of approximately 600 million to 700 million RMB in the first half of 2025, marking a significant recovery from a net loss of 385 million RMB in the previous year [3][4]. - Factors contributing to the expected profit growth include increased fair value gains from financial assets, a mature game product portfolio reducing customer acquisition costs, and enhanced profitability from overseas game distribution [4].

Group 1: Management Changes - Kaiying Network announced the resignation of CFO Huang Zhenfeng due to work adjustments, effective immediately upon receipt of the resignation report [1] - Zhang Qirun, the current budget director of the subsidiary Zhejiang Shenghe, has been appointed as the new CFO, with a term until the fifth board of directors concludes [1] - Zhang Qirun, aged 35, holds a bachelor's degree from Dalian University of Technology and is a certified public accountant, with previous experience in Deloitte and various roles within Kaiying Network [1] Group 2: Company Performance - In the 2024 annual report, Kaiying Network's revenue surpassed 5 billion yuan, reaching 5.118 billion yuan, a year-on-year increase of 19.16%, while net profit attributable to shareholders was 1.628 billion yuan, up 11.41% year-on-year [5] - The company's robust growth is attributed to a combination of research and development, publishing, and investment in intellectual property [5] - Kaiying Network focuses on three main areas in its gaming business: retro nostalgia games, innovative premium games, and IP-related projects, with 22 new products announced at the annual product launch [5] Group 3: Game Development and Innovation - The company has developed and operated several classic games, including "Original Legend," "Blood of the Alliance," and "Angel Battle," while also venturing into innovative premium games and adaptations of classic novels [5] - Notable new games include real-time battle game "Gundam Battle," 3D action game "Code: Ultraman," and open-world adventure game "Douluo Dalu: Zhu Xie Chuan Shuo" [5] - Kaiying Network is also investing in AI applications, having introduced the "Xingyi" large model for game development, which enhances efficiency across various stages of game production [6]

Core Viewpoint - The company has successfully reversed its previous losses and achieved significant revenue and profit growth, establishing itself as a key player in the gaming industry, particularly in the retro gaming segment [1][3][5]. Financial Performance - The company's revenue has resumed growth since 2020, reaching 5 billion yuan last year, with net profit exceeding 1 billion yuan for three consecutive years [1]. - Last year's revenue grew by 19% year-on-year, totaling 5.1 billion yuan, with self-operated and joint-operated revenues accounting for 63% of total revenue [5]. Business Developments - The company has undergone significant changes, including the resolution of past legal issues and a restructuring of its business model, allowing for increased product releases and investment activities [4][8]. - The company has expanded its product offerings beyond traditional titles like "Legend" and "Miracle," venturing into various game genres [4]. Product Portfolio - The core revenue still relies on retro-themed games, which include titles like "Original Legend," "Blood of the Battle," and "Angel War," contributing significantly to the revenue base [5]. - The company has introduced a new information service that has grown rapidly, accounting for 18% of total revenue, primarily from the 996 game box and Cangyue Island platform [7]. Strategic Partnerships - The company has established a strong partnership with Zhejiang Shenghe, a game developer, which has been a significant contributor to its success, particularly with the "Legend" series [8]. - The company has strengthened its ties with Century Huatong and Zhongxu Future through cross-shareholding and strategic cooperation agreements, enhancing its position in the "Legend" IP ecosystem [10][12]. Legal and Regulatory Developments - The company has been involved in long-standing copyright disputes over the "Legend" IP, which have recently seen resolution, allowing for a more stable business environment [9]. - A recent arbitration ruling ordered a compensation of 224.5 million yuan from a Korean company, further solidifying the company's legal standing [12]. Market Expansion - The company has made strides in international markets, with overseas revenue reaching 375 million yuan, a year-on-year increase of over 220% [22]. - The company has diversified its product line, including various genres and IP adaptations, to enhance its market presence and appeal [13][19].

Core Viewpoint - The strategic partnership between Zhongxu Future (9890.HK) and Kaiying Network (002517.SZ) has been formalized through a three-year product cooperation memorandum, aiming to deepen collaboration in game development and distribution, leveraging their strengths for innovative growth in the gaming industry [1][3][14] Group 1: Strategic Cooperation - The memorandum signifies an upgrade in the strategic cooperation between Zhongxu Future and Kaiying Network, focusing on resource integration and complementary advantages [1][2] - The partnership will continue to build on successful past collaborations in IP operation and global distribution, with a clear strategic direction for the next three years [3][5] Group 2: Classic and New IP Development - Classic IPs such as "Legend," "Miracle," and "Hot Blood Jianghu" will remain central to the partnership, with plans to enhance their lifecycle value through exclusive distribution by Zhongxu Future [5][7] - The collaboration will also explore new IPs, including the Jin Yong martial arts series, to meet market demand for high-quality games [7][8] Group 3: Technological Innovation - The partnership will leverage AI technology to optimize game development processes and enhance content innovation efficiency, aiming for breakthroughs in storytelling and player interaction [5][10] - A joint venture focused on AI technology has been established, with Zhongxu Future investing RMB 10 million to support the development of localized content for diverse markets [12][14] Group 4: Market Impact and Future Outlook - The collaboration is positioned as a response to the evolving gaming industry, emphasizing the importance of IP derivative value and technological innovation as growth engines [14] - The partnership aims to create a sustainable development model for the gaming industry, enhancing player experiences and setting a benchmark for deep cooperation in technology, products, and market strategies [14]

Core Viewpoint - The performance of major A-share gaming companies in 2024 shows a significant disparity, with Perfect World maintaining the third position in revenue but suffering substantial losses, while other companies like Shenzhou Taiyue and Kaixin Network are showing better profitability and growth [1][17]. Company Performance Summary Perfect World - In 2024, Perfect World reported a revenue of 5.57 billion yuan, a decrease of 28.50% year-on-year, and a net loss of 1.29 billion yuan, marking a shift from profit to loss [2][3]. - The gaming business revenue was 5.18 billion yuan, down 23.32% from the previous year, attributed to project adjustments and underperforming game launches [2][3]. - The company underwent significant layoffs, reducing its workforce by 32% to 3,905 employees, impacting various expense categories [4][5]. Shenzhou Taiyue - Shenzhou Taiyue achieved a revenue of 6.45 billion yuan in 2024, an increase of 8.22%, with a net profit of 1.43 billion yuan, up 60.92% [10][11]. - The gaming segment generated 4.66 billion yuan, a growth of 3.66%, primarily driven by overseas player spending on the game "Age of Origins" [8][10]. Kaixin Network - Kaixin Network reported a revenue of 5.12 billion yuan, a year-on-year increase of 19.16%, and a net profit of 1.63 billion yuan, up 11.41% [12][13]. - The company saw a significant increase in overseas revenue, which grew by 221.48% to 375 million yuan, driven by successful game launches in various markets [14]. Industry Ranking - The ranking of A-share gaming companies shows that 37 Interactive Entertainment and Century Huatong remain the top two, while Perfect World, despite its revenue position, is the only major company reporting losses [16][17]. - Perfect World has been surpassed in overall revenue by Shenzhou Taiyue and is at risk of being overtaken by Kaixin Network in the near future [17].