Core Viewpoint - The company reported a slight decline in revenue but a significant increase in net profit, indicating effective cost management and strong performance in its self-developed games [1][2] Financial Performance - The company achieved a revenue of 688 million yuan, a year-on-year decrease of 1.93% [1] - Net profit attributable to shareholders reached 50.16 million yuan, a substantial increase of 989.31% [1] - The net profit after deducting non-recurring gains was 13.74 million yuan, a slight increase of 0.85% year-on-year [1] Business Structure - Revenue from PC games was 199 million yuan, accounting for 29.07% of total revenue, while mobile games generated 485 million yuan, making up 70.86% [1] - The proportion of mobile game revenue increased by 2.87 percentage points compared to the same period last year [1] - Domestic revenue was 241 million yuan (35.20% of total), while overseas revenue reached 444 million yuan (64.80%), with overseas revenue share increasing from 60.16% to 64.80% year-on-year [1] Game Performance - The company emphasized the success of its self-developed card games, particularly the American cartoon SLG game "War and Eternity," which saw a revenue increase of 225% [2] - Other titles like "Youth Three Kingdoms" and "Game of Thrones: Winter is Coming" also contributed to stable revenue through frequent content updates [2] - The "Youth Three Kingdoms" mini-program generated over 50 million yuan in revenue, with active user growth of 41% quarter-on-quarter [2] Cost Management - The company achieved a year-on-year decrease in operating expenses through refined cost control and targeted advertising [2] - The reduction in promotional expenses and improved organizational efficiency contributed to lower overall operating costs [2] Non-Recurring Gains - Non-recurring gains contributed significantly to net profit, with estimates of 25 to 50 million yuan from financial asset valuation changes and fund dividends [2] AI Integration - The company utilized AI to enhance global operations and player experience, supporting various aspects of game development and marketing [3] - The "YOOZOO.AI" platform improved operational efficiency across the game development and distribution process [3] - AI tools significantly increased testing efficiency and reduced localization costs by 80% [3] Industry Overview - The Chinese gaming industry saw a recovery in the first half of 2025, with actual sales revenue reaching 168 billion yuan, a year-on-year increase of 14.08% [4] - Chinese self-developed games generated 9.5 billion USD (approximately 68 billion yuan) in overseas sales, reflecting an 11% year-on-year growth [4]

Core Insights - The China Game Developers Conference (CGDC) commenced on August 1 in Shanghai, providing a professional platform for industry developers to engage in deep interaction and discussions [1] - Wang Junsheng, CTO of Youzu Network, presented on the implementation of the company's full-chain AI tools in global game operations and shared the latest advancements in building an AI cultural entertainment ecosystem [1] Development Aspects - Youzu Network focuses on two main directions: "AIGC" and "AI Empowerment for Game Globalization," establishing a comprehensive AI empowerment system across development and publishing [1] - The company is advancing automation, standardization, and scalability in areas such as art asset production, code generation, and localization translation [1] - Youzu's one-stop intelligent translation platform supports translation among 16 languages, significantly reducing localization costs by 80% for overseas game products [1] - Automated testing tools, leveraging natural language processing and code generation, cover 70% of test case writing, enhancing testing efficiency and game quality [1] Publishing Aspects - To address the high demand and costs of advertising materials, Youzu developed AI tools for generating copy, images, and videos, increasing production efficiency by 3-5 times [2] - The company introduced ChatBI, an intelligent BI tool that combines NLP technology with business intelligence, simplifying data analysis through natural interaction [2] - The intelligent operation platform, utilizing Dify workflows, has improved operational efficiency by reducing response times for operational queries by 30% and SQL review cycles from hours to minutes [2] Player Experience Enhancement - AI serves not only to enhance development and operations but also to optimize player experiences [3] - The intelligent game companion "Xiao Youjiang" integrates large language models and multimodal technology, enhancing user engagement across 15 domestic games [3] - Features like "Witch Between" in "Crimson Echo" allow for personalized interactions with NPCs, moving beyond fixed dialogue [3] - The upcoming "AI Native Game" "My Three-Body: 2277" will incorporate AI as a key element for player engagement and narrative recreation [3] Strategic Collaborations - Since last year, Youzu Network has been actively building an AI-driven cultural entertainment ecosystem, forming partnerships with notable companies and institutions [4] - Recent strategic collaborations include a partnership with Sunrise to address the high-performance computing needs in game development, integrating customized GPU solutions [4] - A tripartite collaboration with Great Wall Technology and Shenzhen Confidential Computing aims to provide secure cross-border computing solutions for various industries [4] - Youzu Network was elected as the vice president unit of the Shanghai Artificial Intelligence Industry Association during the 2025 World Artificial Intelligence Conference [4]

Core Viewpoint - The company, Youzu Interactive, is expected to report a significant increase in net profit for the first half of 2025, driven by strategic initiatives in user engagement and cultural integration [1]. Financial Performance - The projected net profit attributable to shareholders is between 40 million to 60 million yuan, representing a year-on-year increase of 768.75% to 1203.13% [1]. - The expected net profit after deducting non-recurring gains and losses is between 10 million to 15 million yuan [1]. User Engagement and Cultural Integration - The company has enhanced user engagement through various online and offline activities, including the 10th anniversary celebration of "少年三国志" and the 16th anniversary of Youzu Network [1]. - Collaborations with cultural entities, such as the partnership with the 1994 CCTV version of "三国演义" and the Yichang Museum, have deepened emotional connections with players [1]. Technological Integration - Youzu Network is committed to a "cultural + technology" dual-drive strategy, integrating cutting-edge technologies like AI into game development [2]. - The AI Innovation Institute has established an AI empowerment system that spans the entire game development and publishing process, enhancing automation and standardization [2]. Product Development and Future Plans - The company plans to launch over ten new products, including "少年三国志3," "援军来了," and "代号：Ball," to diversify its product matrix [3]. - "少年三国志3" has already entered group testing, featuring innovations in core combat and gameplay to realize a "global card+" concept [3].

Group 1 - The core theme of the event is "Be YOUTHself," celebrating the 16th anniversary of Youzu Interactive and the 616 Youth Festival, featuring a week-long carnival for global employees and multiple benefits for players, including 6.16 million gift packages [2] - Youzu Interactive aims to enhance the gaming experience for global players, with various titles like "Youth Three Kingdoms," "Youth Journey to the West," and "Game of Thrones: Winter is Coming" offering rich benefits during the festival [2] - Over 10 million global players participated in the event, showcasing Youzu Interactive's strong influence in the global gaming market [2] Group 2 - Youzu Interactive emphasizes its mission of "Technology Transmitting Civilization," integrating traditional Chinese culture into gaming, exemplified by the collaboration of "Youth Three Kingdoms 2" with the national intangible cultural heritage Guangling Qin School [3] - The company plans to continue its dual-driven approach of "Culture + Technology," using gaming as a medium to tell Chinese stories and enhance players' appreciation of Chinese culture [3] - Future product reserves include over ten new titles, such as "Origin: Endless Land" and "Code: SR2," aimed at consolidating and expanding its global presence [2]

Core Insights - The company reported a revenue of 1.434 billion yuan for the year 2024, with overseas revenue accounting for 60.16% of total revenue, marking the tenth consecutive year it has surpassed domestic revenue [1] - In Q1 2025, the company achieved a revenue of 359 million yuan, representing a year-on-year growth of 7.29%, and a net profit attributable to shareholders of 24.7 million yuan, up 43.74% year-on-year, indicating a stable development phase [1][2] Financial Performance - The total revenue for Q1 2025 was 359,404,100.79 yuan, compared to 334,992,747.75 yuan in the same period last year, reflecting a growth of 7.29% [2] - The net profit attributable to shareholders for Q1 2025 was 24,703,463.86 yuan, up from 17,186,242.41 yuan year-on-year, showing an increase of 43.74% [2] - The basic and diluted earnings per share for Q1 2025 were both 0.03 yuan, a 50% increase from 0.02 yuan in the previous year [2] Strategic Initiatives - The company is deepening its "globalization card+" strategy by integrating resources, enhancing terminal adaptation capabilities, and applying cutting-edge technologies like AI to improve global game development and diversified publishing capabilities [3] - The company has launched several self-developed games and agency titles globally, achieving notable success [3] - The company is expanding its product offerings beyond card and SLG genres to include simulation management and Roguelike games, with over ten new game projects in development [8] AI Integration - AI technology is being integrated throughout the game development and operation processes, enhancing automation, standardization, and scalability in various areas such as art asset production and localization [9] - The company has introduced an AI companion named "Xiao You Jiang" in multiple games, providing personalized services to enhance player experience [9][11] - The company is collaborating with various institutions to promote technological innovation and sustainable development in the AI industry [11]