Core Insights - The gaming industry is experiencing a resurgence due to favorable policies and recovering consumer demand, leading to increased market attention on gaming stocks [1] - Qingci Games has entered a three-year licensing agreement with Disney and Pixar to develop and publish the game "Disney: Book of Legends," expected to launch in 2026 across multiple regions [1] - This collaboration is anticipated to enhance brand recognition among family and youth demographics, contributing to market expansion [1] Group 1: Market Trends and Opportunities - The overseas market has become a significant revenue source for Chinese gaming companies, with a reported overseas revenue of $9.501 billion in the first half of 2025, marking an over 11% year-on-year growth [2] - Predictions indicate that China's self-developed games will surpass $20 billion in overseas revenue for the entire year of 2025, highlighting the industry's growing global role [2] - Government initiatives are supporting the gaming industry's international expansion, including the establishment of special funds to alleviate financial pressures on game development teams [2] Group 2: Qingci Games' Global Strategy - Qingci Games has accelerated its global business layout, with overseas revenue contributing over 40% to its total income, marking it as a key growth driver [3] - The flagship product "The Strongest Snail" has performed well in various international markets, including Japan and Vietnam, showcasing the company's effective localization strategies [3] - Upcoming releases, including the Korean version of "The Strongest Snail" and the licensed game "Cardcaptor Sakura: Memory Key," are expected to further enhance the company's market presence [3] Group 3: Operational Excellence and User Engagement - Qingci Games has developed a systematic and localized overseas distribution system, which is crucial for expanding its revenue sources [4] - As of June 30, 2025, the company has surpassed 100 million registered players, with a 7.56% year-on-year increase, indicating strong user engagement [5] - The flagship game "The Strongest Snail" has seen a significant increase in average revenue per paying user (ARPPU), rising from approximately 200 yuan to nearly 300 yuan during its anniversary event [5] Group 4: Future Product Pipeline - The company is preparing to launch several new titles, including the strategic self-developed game "Project E," which is expected to enter a broader testing phase in Q4 2025 [6] - Additional games based on popular IPs, such as "Project W" and "Project HA," are slated for release in 2026 and 2027, respectively, further diversifying the product portfolio [6] - The strategic focus on high-quality, sustainable growth through both new releases and refined operations positions the company for future profitability [7]

Core Insights - The gaming industry is experiencing a resurgence due to favorable policies and recovering consumer demand, leading to increased market attention on gaming stocks [1] - Qingci Games has entered a three-year licensing agreement with Disney and Pixar to develop and publish the game "Disney: Book of Legends," expected to launch in 2026 across multiple regions [1] - This collaboration is anticipated to enhance brand recognition among family and youth demographics, contributing to market expansion [1] Industry Trends - China's gaming industry is accelerating its overseas expansion, with overseas revenue from self-developed games reaching $9.501 billion in the first half of 2025, a year-on-year increase of over 11% [2] - The Chinese gaming sector is projected to surpass $20 billion in overseas revenue for the full year of 2025, highlighting its growing global significance [2] - Government initiatives are supporting the gaming industry's internationalization, including funding for original game development and overseas operations [2] Company Performance - Qingci Games' overseas revenue contribution has risen, with over 40% of its revenue coming from international markets in 2024 and further increasing to 40.9% in the first half of 2025 [3] - The flagship product "The Strong Snail" has performed well internationally, achieving top rankings in various markets, including Vietnam and Japan [3][4] - The company has established a systematic and localized overseas distribution system, enhancing its ability to expand into new markets [4] User Engagement and Product Development - As of June 30, 2025, Qingci Games has surpassed 100 million registered players, with a 7.56% year-on-year increase, and an average monthly active user count of approximately 1.144 million [6] - The flagship game "The Strong Snail" has seen significant user engagement, with its average revenue per paying user (ARPPU) increasing to 289.79 yuan, reflecting strong user retention and monetization potential [6] - Upcoming titles, including "Project E" and adaptations of popular IPs, are expected to further diversify the product lineup and enhance revenue streams [7][8] Strategic Direction - Qingci Games is focused on a "premium, global, and long-term" strategy, aiming to expand into new markets while optimizing existing product performance [8] - The partnership with Disney and the launch of new games are expected to unlock additional revenue potential and broaden the company's market reach [8]

Industry Overview - The gaming industry is experiencing a continuous release of policy benefits, with a record high of 166 domestic game licenses issued in August, totaling 1,050 licenses in the first eight months of the year, significantly higher than 850 in the same period last year [1] - The domestic gaming market reached a scale of 29.084 billion yuan in July, showing a year-on-year growth of 4.62%, with mobile and client games growing by 0.92% and 16.56% respectively, indicating a healthy long-term development trend [1] Company Performance - Qingci Games reported a revenue of 247 million yuan in the first half of 2025, with a gross profit of approximately 154 million yuan and a net profit of 72.665 million yuan, marking a year-on-year increase of 90.2% [1] - As of June 30, 2025, Qingci Games had over 100 million registered players, with the "Qingci Iron Fans" community growing to 16.2036 million, a year-on-year increase of 8.22% [3] - The average revenue per paying user (ARPPU) reached 289.79 yuan, up 5.26% year-on-year, reflecting effective commercial value conversion [3] Key Products and Innovations - The flagship product, "The Strongest Snail," celebrated its fifth anniversary, achieving cumulative revenue of over 3.786 billion yuan and 29.4 million registered players, showcasing its long-term operational potential [4] - Recent updates to "The Strongest Snail," including new character "Gua Gua" and the ninth country "Persia," have successfully activated player community engagement and increased ARPPU from approximately 200 yuan to nearly 300 yuan during the anniversary period, a growth of about 50% [6] - The classic game "Unusual Maze" has also shown resilience, with over 25 million registered players and a successful free-to-play version launched on Steam, which quickly attracted new players and reached the sixth position on the global free game chart [8] Strategic Development - Qingci Games is expanding its product matrix and global layout, with new titles like "Tingus Goose" planned for Steam, targeting the rising demand for lightweight entertainment [10][12] - The self-developed project "Project E" aims to differentiate itself in the SLG market by incorporating exploration and resource management elements, currently undergoing targeted testing with positive feedback from players [13] - The company is also preparing to launch "The Strongest Snail" in South Korea and "Cardcaptor Sakura: Memory Key" in Vietnam and Japan, aligning product features with regional market demands to mitigate expansion risks [15] Market Sentiment - The gaming sector is gaining significant attention from capital markets, with public funds heavily investing in the gaming segment, which accounted for 215.03 billion yuan in heavy positions, representing 59.17% of the media sub-sector [17] - The positive correlation between capital market interest and Qingci Games' improved fundamentals reflects the company's ability to meet user demands through content innovation and active user engagement [19]

Core Insights - Qingci Games (06633) reported a mid-year revenue of approximately 247 million RMB for 2025, with a gross profit of around 154 million RMB and a net profit of 72.67 million RMB, representing a 90.2% increase compared to the same period last year, indicating a continuous improvement in profitability [1] Financial Performance - The significant net profit growth is attributed to efficient management operations and cost control, with a substantial reduction in marketing expenses compared to the previous year, as well as favorable exchange rate fluctuations and effective foreign exchange management leading to increased exchange gains [1] Game Operations - As of June 30, 2025, the company has over 100 million registered players, a 7.56% year-on-year increase, with an average monthly active user count of approximately 1.144 million and an average monthly paying user count of about 140,600, resulting in an ARPPU of 289.79 RMB, a 5.26% year-on-year growth [1] - The changes in game operation data are primarily due to some games reaching maturity, leading to a decline in active and paying user numbers, while the introduction of new game versions and content optimization has attracted new player registrations and encouraged some returning players, enhancing user payment willingness [1] Strategic Achievements - The long-term operational effectiveness is highlighted by the flagship self-developed game "The Strong Snail," which celebrated its five-year anniversary in June 2025, successfully attracting a large number of returning players and significantly increasing user payment willingness, with ARPPU rising from approximately 200 RMB to nearly 300 RMB, a 50% increase [2] - The company is steadily advancing its global expansion, preparing for the launch of the Korean version of "The Strong Snail" in the second half of 2025, which will enhance its influence in core markets, alongside preparations for the overseas release of "Cardcaptor Sakura: Key to Memories" in Vietnam and Japan [2] - The research and development pipeline is focused on breakthroughs, with the strategic self-developed project "Project E" progressing smoothly, recently entering a "Plank Test" phase for core players, which is expected to become a milestone product for the company's future growth [2]

Core Viewpoint - Qingci Games (06633.HK) reported a significant increase in revenue and net profit for the six months ending June 30, 2025, driven by improved operational efficiency and effective cost control [1] Financial Performance - The company recorded revenue of approximately RMB 247 million, with a net profit of RMB 72.67 million, representing a 90.2% increase compared to RMB 38.20 million in the same period last year [1] - The cumulative registered players reached 100.45 million, a year-on-year increase of 7.56% [1] - Monthly average active users were approximately 1.144 million, with monthly average paying users around 140,600 [1] - The Average Revenue Per Paying User (ARPPU) reached RMB 289.79, a year-on-year growth of 5.26% [1] Operational Achievements - Long-term operational success was highlighted by the five-year anniversary of the flagship self-developed game "The Strongest Snail," which saw a significant increase in user spending during the anniversary event, with ARPPU rising from approximately RMB 200 to nearly RMB 300, an increase of about 50% [1] - The company is actively preparing for the launch of the Korean version of "The Strongest Snail," expected in the second half of 2025, and is also working on overseas releases for "Cardcaptor Sakura: Key of Memories" in Vietnam and Japan, enhancing its global market presence [1] - The development of the strategic self-developed title "Project E" is progressing well, with recent core player testing initiated to accelerate game iteration, incorporating innovative gameplay elements [1]

Core Insights - Qingci Games Limited has officially surpassed 100 million registered players globally, marking a significant milestone in its efforts within the global gaming market [1][3] - The company has successfully established its influence in the global gaming sector through a strategy focused on high-quality and personalized products [1] Group 1: Company Achievements - Since its establishment in 2012, Qingci Games has created several popular games characterized by innovative gameplay and distinctive artistic styles, referred to as "Qingci Style" by players [3] - The self-developed game "Unusual Maze," launched in 2016, has been pivotal in leading the domestic Rogue-like mobile game trend, being recognized as a must-play title in the genre [3] - The game "The Strongest Snail," released in 2020, has generated approximately RMB 3.629 billion in revenue by the end of 2024, achieving high rankings in various regions including Hong Kong, Taiwan, Japan, North America, Southeast Asia, Australia, and Europe [3] Group 2: Global Strategy and Operations - The company has strengthened its core competitiveness by integrating research and operations, with overseas revenue accounting for over 40% of total income [3] - Qingci Games has established offices in regions such as mainland China, Australia, Japan, and South Korea to enhance user engagement and solidify player communities [3] Group 3: Future Developments - The company is currently developing an original game titled "Project E," which combines elements of map exploration, backpack management, and resource collection, aiming to set new industry trends [4] - Qingci Games is embracing technological advancements by integrating AI tools to improve operational efficiency and support industrial development [4] - The CEO expressed gratitude for the support from global players and emphasized the commitment to delivering engaging and culturally rich gaming experiences in the future [4]

Group 1 - The company reported a revenue of approximately 628 million yuan and a gross profit of about 363 million yuan for the year 2024, achieving a profit attributable to equity holders of 51.12 million yuan, marking a turnaround from loss to profit year-on-year [1] - As of December 31, 2024, the company had a total of 98.28 million registered players, an increase of 11.24% year-on-year, with monthly active users averaging around 2.36 million and monthly paying users approximately 227,800; the ARPPU reached 265 yuan [1] Group 2 - The company continues to iterate on its self-developed games, with its flagship game "The Strongest Snail" achieving high rankings in free and best-selling game charts in multiple overseas markets, generating cumulative revenue of approximately 3.629 billion yuan from both domestic and international markets as of December 31, 2024 [2] - The company is actively developing its self-researched game "Project E," which is an innovative SLG game expected to enhance content and gameplay in 2025 [2] - The company has improved its long-term operational capabilities in game publishing, with overseas revenue growing from 28.47% to 43.93% year-on-year, indicating a significant enhancement in global publishing strength [2] - The company is steadily strengthening its core competitiveness in research and operations, promoting the globalization of its game products and further expanding its overseas market presence [2]