Summary of the Conference Call Company and Industry Overview - The conference call discusses Century Huatong and its subsidiary, Diandian Interactive, focusing on the SLG (Simulation and Strategy Game) market, which holds over 14% of the global market share and is expected to grow at approximately 20% year-on-year from 2024 to the first half of 2025 [2][4]. Key Points and Arguments - Diandian Interactive is a leader in the SLG gaming industry, with its flagship game "Frosty Apocalypse" generating annual revenue between 20 billion to 25 billion RMB, while another title, "Bouncing Kingdom," is projected to reach 10 million USD in overseas monthly revenue by August [2][4]. - The combined annual revenue from these two products is expected to exceed 35 billion RMB [2][4]. - The SLG gaming sector has evolved from gameplay iteration to user diversification, with user acquisition becoming a primary growth driver since 2020, despite traditional SLG games facing challenges in user acquisition and retention [2][6]. - Diandian Interactive has innovated with the "SLG+X" formula, merging simulation management with SLG elements, utilizing cartoon art styles and apocalyptic themes to reduce user acquisition costs and enhance retention [2][10]. Development Trends and Innovations - The SLG market has seen significant innovations since 2014, with key titles introducing new gameplay mechanics. However, since 2020, the industry has relied more on user acquisition innovations rather than gameplay innovation [8][9]. - Traditional SLG games have struggled with user retention due to core gameplay being less engaging initially, leading to lower early retention rates [8][9]. - The introduction of casual elements and secondary gameplay has helped some companies improve user acquisition costs, but retention remains a challenge [9]. Future Outlook - Diandian Interactive is currently in a growth phase, with expectations of sustained revenue growth and profit increases over the next 1 to 3 years [7][11]. - The company is benefiting from a favorable cycle in both product and category, with its successful titles in long-term operation, indicating potential for continued revenue growth [3][11]. - The innovative approach of combining SLG with simulation management is expected to yield further success, as evidenced by the performance of "Endless Winter" and other titles [10][11]. Additional Important Insights - The SLG market primarily attracts middle-aged males interested in historical military themes, but the introduction of more diverse gameplay and themes is broadening the user base [5][6]. - The high payment characteristics of SLG games, with monthly spending typically ranging from 600 to 800 RMB, indicate a high user value, albeit with high acquisition costs [6]. This summary encapsulates the key insights from the conference call regarding Century Huatong and the SLG gaming industry, highlighting growth opportunities, challenges, and innovative strategies.

创新题材+Merge-2+解谜，蓝色奥义持续验证方法论 作为一款二合游戏，相较于市面上的其他竞品，《Haunted Merge》最大的亮点便是选择了中式民俗恐怖这个极为小众的题材。 就游戏出海而言，在SLG之外，合成应该是当下行业关注度、厂商参与度、爆款产出率以及收益情况最好的赛道，尤其是更为细分的Merge-2方向。 近期点点出海发现一款中式恐怖题材的Merge-2游戏《Haunted Merge: Horror Story》（《谁来救救我》），该作的出现表明了赛道正在朝着题材多元化、 玩法创新化的方向"狂奔不止"，另外其背后厂商似乎也是我们熟悉的赛道重点厂商，作为后来者他用自己的方法论实现了突围，而这种成功的突围又与赛 道的发展进程密切相关。 01 《Haunted Merge》东南亚5国开测 根据简单体验到的剧情，玩家扮演的女主沈昭昭八字极阴，父母都是精通风水之人，但就在一个月之前父母却完全失联，她翻遍家里找到一张照片，照片 指向了闹鬼严重的幸福公寓，为了追寻父母的下落，女主便以租客的身份入住了公寓，在寻找父母的同时探寻这栋不寻常的公寓的秘密。 下文中，点点出海将详细分析《Haunted Merge》是 ...

Investment Rating - The report maintains a positive outlook on the internet media sector, indicating an "Overweight" rating, suggesting that the industry is expected to outperform the overall market [4]. Core Insights - The report highlights the strong performance of AI applications in the US stock market, particularly noting Figma's successful IPO and its market capitalization exceeding $50 billion. Figma's integration of AI into design workflows is expected to enhance customer retention and drive revenue growth [4]. - The report identifies several key opportunities within the domestic AI application industry, including AI design, AI advertising, AI companionship/gaming, cross-border e-commerce, and education [4]. - The gaming sector is also highlighted, with Tencent's new game "Delta Action" exceeding expectations in daily active users, indicating strong growth potential despite high baseline comparisons [4]. - The report emphasizes the ongoing high demand for consumer entertainment sectors such as trendy toys, music, and concerts, with companies like Pop Mart and NetEase Cloud Music being recommended as core investment targets [4]. Summary by Sections AI Applications - Figma's revenue for 2024 is projected at $749 million, reflecting a year-over-year growth of 48%. The company's Rule of 40 score is among the top in the SaaS sector, with a revenue growth rate of 46% and an operating margin of 18% [4]. - The report suggests focusing on domestic AI design companies like Meitu, which is expected to grow at a CAGR of approximately 40% from 2024 to 2026, and Kuaishou, which has a low PE ratio of 15x [4]. Gaming Sector - Tencent's gaming growth potential is considered underestimated, with new titles like "Delta Action" performing well in the market. The report anticipates continued growth from other titles in development [4]. - Other companies such as Giant Network and Huatuo are also mentioned for their innovative game offerings and potential for future growth [4]. Consumer Entertainment - The report continues to recommend companies in the high-demand consumer entertainment sector, including Pop Mart and NetEase Cloud Music, as they have adjusted to high valuations and are entering favorable investment zones [4]. Advertising and Marketing - The collaboration between Focus Media and Alipay is noted as a significant development, aiming to create new marketing paradigms by integrating digital and physical spaces [4].

Core Insights - The revenue performance of the casual merge game "Tasty Travels" by DianDian Interactive is experiencing rapid growth, with a month-on-month revenue increase of 61% in June, making it the second highest in global merge game revenue growth [1][2] - Another title from DianDian Interactive, "Kingshot," saw a 56% revenue increase in June after doubling in May, entering the top 3 in overseas mobile game revenue within just four months [1] - Overall, DianDian Interactive's revenue rose by 10% in June, positioning it as the second highest global revenue earner among Chinese mobile game publishers, following Tencent [1] Market Performance - "Tasty Travels" began generating significant revenue from April 2025, with daily revenue increasing from $25,000 on April 1 to a record $200,000 by July 20 [2] - The estimated total revenue for "Tasty Travels" has reached $15 million (approximately 110 million RMB), with 55% coming from the Apple Store and 45% from Google Play [2] - The game has shown strong performance in high-value markets, with the U.S. accounting for 38% of total revenue, followed by Japan and South Korea at 10% each [4] Download Performance - The download volume for "Tasty Travels" has been steadily increasing since April 1, peaking at over 45,000 downloads in a single day on June 25 [6] - The total downloads across both platforms have surpassed 4.15 million, with 60% from the Apple Store and 40% from Google Play [6] - The U.S. leads in download volume with a 25% share, followed by Japan (7%), South Korea (6%), and the UK (5%) [8] Gameplay and Design - "Tasty Travels" employs a classic merge gameplay mechanism where players combine ingredients to fulfill customer orders, progressing through restaurant upgrades and map exploration [9] - The game focuses on an order system, providing players with clear objectives, which helps reduce fatigue from repetitive merging [11] - UI design optimizations enhance user experience, allowing for efficient gameplay without the need for scrolling [14] Advertising and Market Strategy - "Tasty Travels" has maintained a stable advertising strategy since the second half of 2024, with the highest daily ad material exceeding 700 sets in July 2025 [19] - The primary advertising markets are in Europe and North America, with France, Portugal, and Germany leading in ad material volume [22] - Recent advertising materials focus on mini-games and popular casual gameplay, targeting a broader audience [24]

Investment Rating - The industry investment rating is "Overweight," indicating that the industry is expected to outperform the overall market [12]. Core Insights - The report highlights the rapid growth of AI applications, particularly in programming, recommendation, and creative generation, with Chinese companies focusing on emotional consumption and overseas expansion to drive revenue [5]. - Tencent is identified as a strong player in AI applications, leveraging its large daily active users (DAU) and rich content ecosystem, with expectations for significant future growth in its advertising and cloud computing segments [5]. - The gaming sector is noted for its potential, with Tencent's game "Delta Action" exceeding expectations in DAU, and the value of game IP, especially female-oriented games, remains underappreciated by the market [5]. - The report emphasizes the importance of AI in enhancing advertising efficiency and revenue generation, particularly for companies with untapped traffic potential [5]. Summary by Sections AI Applications - AI applications are driving growth in various sectors, with significant contributions from programming and creative tools [5]. - Tencent's AI capabilities are expected to enhance its advertising revenue, with a projected growth rate of 20% in Q1 2025 [5]. Gaming Sector - Tencent's "Delta Action" has maintained a strong position in the iOS game sales rankings, indicating robust growth potential [5]. - The report notes that the gaming IP value, particularly for female-targeted games, is not fully recognized by the market, suggesting potential investment opportunities [5]. Key Company Valuations - Tencent's market capitalization is reported at 45,907 million RMB, with projected revenue growth of 11% for 2025 [7]. - Other companies like NetEase and Giant Network are also highlighted, with respective market caps of 6,139 million RMB and 463 million RMB, showing varied growth rates [7].

Investment Rating - The report gives an "Overweight" rating for the internet media industry, indicating a positive outlook for the sector's performance compared to the overall market [1]. Core Insights - The global commercialization of AI applications is progressing rapidly, with companies like Figma planning an IPO. Chinese firms are focusing on emotional consumption and overseas expansion to break through in monetization [2]. - AI creative tools, particularly from Meitu, are highlighted as leading global players, with a strong focus on meeting the needs of Gen Z female consumers [2]. - The gaming sector is experiencing a technical correction, but the long-term outlook remains positive due to ongoing product development and market expansion [2]. - The competition in instant retail and food delivery is intensifying, with Alibaba announcing a significant investment, indicating a potential increase in advertising budgets in Q3 [2]. - High-demand consumer sectors such as trendy toys, music, and concerts continue to be recommended for investment [2]. Summary by Sections AI Applications - AI applications in China are seeing commercial success in areas like companionship, beauty, education, and advertising. Notable examples include Kuaishou's AI tool achieving an ARR of over $100 million within ten months of launch [2]. - The report emphasizes the potential of AI in enhancing productivity and monetization for creative tools and advertising [2]. Gaming Sector - The gaming industry is expected to maintain growth despite a short-term correction, with major companies like Giant Network and Huatuo showing strong fundamentals and product pipelines [2]. - New game launches and expansions are anticipated to drive revenue growth for various companies in the sector [2]. Instant Retail and Food Delivery - The report notes an increase in competition among major players like Meituan and JD, with Alibaba's investment signaling a push for market share in instant retail and food delivery [2]. - The upcoming peak season for local lifestyle products is expected to drive promotional activities and advertising spending [2]. Consumer Trends - The report highlights ongoing consumer interest in trendy products, music, and entertainment, recommending companies like Pop Mart and NetEase Cloud Music for investment [2].

Core Insights - The article discusses the success of the match-3 game "Royal Match" and its sequel "Royal Kingdom," highlighting the latter's strong performance in the market and its potential to become a top contender [2][22]. Game Performance - "Royal Match" has consistently topped the match-3 category since its launch four years ago, surpassing "Candy Crush Saga" [2]. - "Royal Kingdom" has shown significant growth, ranking in the top 10 of the US iOS sales chart with nearly $20 million in revenue in May, reflecting a 53% month-over-month increase [2][22]. Game Mechanics - "Royal Kingdom" retains core gameplay elements from "Royal Match," such as completing match-3 levels and building a kingdom, but introduces new features like a more extensive character background and additional gameplay modes [5][6]. - The game includes various level types, including Hard, Super Hard, Kingdom, and Dark Kingdom levels, enhancing the gameplay experience [8]. Monetization Strategies - "Royal Kingdom" employs a winning streak mechanism to encourage in-game purchases, allowing players to earn more items as they progress through levels [13][15]. - The game features popular in-app purchases, such as the $1.99 Mini Coin Pack and the $9.99 Splendid Pouch, which have shown strong sales performance [16][18]. Marketing Efforts - The marketing strategy for "Royal Kingdom" has been robust, featuring collaborations with high-profile celebrities like LeBron James and Shakira, which have garnered millions of views on promotional videos [23][26]. - The game's promotional efforts have led to a significant increase in user engagement and revenue, with early earnings exceeding $450,000 shortly after launch [26][29]. Industry Trends - The match-3 game market has seen a decline in downloads but an increase in revenue, with "Royal Match" being a significant contributor to this growth [33]. - The success of "Royal Kingdom" may indicate that there is still room for innovation and new entries in the match-3 genre, as evidenced by other companies exploring similar game mechanics [27][32].