Core Viewpoint - Game companies are increasingly engaging in real estate acquisitions, leveraging their substantial cash flow to invest in properties as a strategic move to diversify their assets and mitigate risks [2][3][6]. Group 1: Real Estate Acquisitions - Yanqu Game's subsidiary, Quanzhou Yanqu Network Technology Co., successfully acquired the Quanzhou Puxi Wanda Plaza commercial complex for 331 million yuan, which is approximately 70% of its market value [3]. - This acquisition marks Yanqu Game's second real estate purchase in 2025, following a 31 million yuan acquisition of land in Xiamen for their global headquarters [3][4]. - Other game companies, such as Feiyu Technology and 4399, are also making similar real estate investments, indicating a trend among gaming firms to diversify their portfolios [6]. Group 2: Financial Performance - Yanqu Game's successful titles, such as "Call Me the Shopkeeper" and "Seek the Dao," have contributed to its financial strength, with the former achieving monthly revenues exceeding 500 million yuan [4]. - Feiyu Technology reported a significant revenue increase of 343.58% in the first half of 2025, reaching 451 million yuan, and turned a profit with a net income of 57.52 million yuan [6]. - 4399's acquisition of land for its headquarters in Guangzhou for 603 million yuan reflects its growth strategy, supported by its successful game "Mushroom Hero Legend," which generated approximately 2.63 billion yuan in annual revenue [7]. Group 3: Industry Trends - The Chinese gaming industry is entering a new golden decade, with game companies increasingly looking to diversify into real estate and other sectors as a strategic move [6][7]. - The small program game market in China saw a 40.2% year-on-year revenue growth in the first half of 2025, indicating a robust market environment for gaming companies [7]. - The trend of gaming companies investing in real estate is seen as a way to solidify their asset base and prepare for future uncertainties [2][6].

Core Insights - The company has adopted a strategic initiative to invest in HTML5 games starting in 2023, resulting in significant financial performance by June 30, 2025 [1] - Revenue reached approximately RMB 451.4 million, representing a year-on-year increase of about 343.6% [1] - The notable growth was primarily driven by the performance of the HTML5 game "One Step Two Steps," which was launched in August 2024 and entered its recovery phase in the first half of 2025 [1] - The company reported a profit attributable to equity holders of RMB 57.5 million, a significant turnaround from a loss of RMB 1.6 million in the same period of 2024 [1] - Established games such as "Gods and Demons" and "Defend the Carrot" continue to perform strongly, contributing to stable revenue streams and demonstrating the company's operational expertise [1]

Group 1 - Company Fish Technology announced the acquisition of properties in Beijing for a total price of RMB 50.3 million, consisting of office units and parking spaces with a total area of 1,770.22 square meters and 129.53 square meters respectively [2] - The properties are located in a strategic area of Beijing's central business district, which is considered one of the prime commercial zones, and the company believes this acquisition represents a long-term investment opportunity despite the current downturn in the real estate market [2] - The acquisition is expected to provide stable rental income in the long term, as the company has referenced past rental income data and recent rental prices of comparable properties in the area [2] Group 2 - In 2024, Fish Technology achieved a revenue of RMB 277 million, reflecting a year-on-year growth of 22.35%, but faced significant pressure on profits with a net loss of RMB 44.39 million, marking a shift from profit to loss [3] - The main source of revenue for the company comes from game operations, accounting for 86.29% of total revenue, with RMB 239 million generated from this segment [3] - The company plans to focus on the long-term operation of existing popular games to maintain stable cash flow and aims to expand into overseas markets to diversify revenue sources [3]