Summary of Conference Call Company Overview - The company, 创梦 (Chuangmeng), is a global game company focusing on game publishing, self-developed games, and AI technology to enhance operational efficiency and user experience [1][2][6]. Industry Insights - The gaming industry is experiencing rapid changes, with a focus on long-lifecycle games and the integration of AI technology to improve game development and user engagement [1][7][42]. Key Points and Arguments Business Performance and Strategy - In 2024, the total revenue was 1.51 billion RMB, a decrease compared to the previous year due to the cessation of non-core game operations and the transition of self-developed games to a net revenue recognition model [9][10]. - The company continues to focus on long-lifecycle games, with successful titles like 地铁跑酷 (Subway Surfers) and 梦幻花园 (Dream Garden) contributing to revenue [2][10]. - The self-developed game 卡拉比丘 (Karabichu) has been launched globally, with significant revenue potential expected from its multi-platform release [5][18]. Game Development and AI Integration - The company is leveraging AI technology to enhance game development efficiency, achieving over a 30% improvement in overall development effectiveness through AI integration [7][39]. - A joint innovation lab with Tencent Cloud has been established to focus on AI-assisted game development [7][38]. - The community platform Fanbook has been developed to connect with users and support long-term game operations [6][7]. Financial Performance - The adjusted gross margin for 2024 was around 30%, impacted by revenue structure and lower revenue-sharing ratios for some games [11][12]. - The company reported an adjusted loss of 30 million RMB, primarily due to ongoing development costs for 卡拉比丘 and the timing of its overseas PC version launch [11][12]. - Financial costs have decreased significantly, from 290 million RMB to 110 million RMB, due to debt repayment and reduced interest expenses [13][14]. Future Outlook - The company plans to enhance its game portfolio with new titles and expand its self-developed games globally, focusing on high-quality, competitive gameplay [18][44]. - The strategy includes optimizing the game publishing model to reduce risks while increasing revenue from long-lifecycle games [17][42]. - The company aims to maintain a strong balance sheet and improve operational stability through careful management of financial costs and capital structure [16][35]. User Engagement and Market Strategy - The company is adjusting its marketing strategies based on user feedback, particularly for 卡拉比丘, to better align with player preferences and improve user retention [20][22]. - The introduction of new gameplay modes, such as casual and cooperative play, is expected to attract a broader audience and enhance user experience [23][24]. Conclusion - 创梦 is committed to leveraging its strengths in game publishing and development while integrating advanced technologies like AI to enhance its competitive edge in the gaming industry. The focus on long-lifecycle games and user engagement strategies positions the company for future growth and profitability [18][44].

Summary of Conference Call Company Overview - The company, referred to as "创梦" (Chuangmeng), is a global gaming company with integrated capabilities in game publishing and development, focusing on high-quality business growth and stability in operations [1][2]. Key Business Segments Game Publishing - The company has a mature game publishing business, with long-lifecycle products such as "Subway Surfers" and "Dream Garden" contributing to revenue [2]. - New releases like "Mecha Squad" and "Legendary Store" have also performed well, indicating a focus on unique and niche products [2][3]. - The company emphasizes user engagement through content iteration and optimizing user lifetime value (LTV), achieving a 40% increase in payment rates through enhanced content and competitive gaming features [2]. Self-Developed Games - "卡拉比丘" (Karabichu) is highlighted as a key self-developed product, launched globally with significant user engagement and positive feedback [5][6]. - The game has achieved top rankings on platforms like Steam and is expected to contribute positively to the company's revenue in 2025 [5][6][11]. - The company plans to expand the game to mobile and console platforms, enhancing its global operational capabilities [6]. AI Technology Integration - The company is actively integrating AI into its operations, including community management and game development processes [7][8]. - AI tools have improved operational efficiency by over 30%, enhancing game development and user engagement [8][41]. - The establishment of a joint innovation lab with Tencent Cloud focuses on leveraging AI to enhance game development processes [40][41]. Financial Performance - Total revenue for 2024 is reported at 1.51 billion RMB, showing a decline due to the cessation of non-core game operations and the transition of self-developed games to a net revenue recognition model [10][11]. - Despite the overall revenue decline, core games continue to perform well, with a 10% increase in publishing revenue [11]. - The adjusted loss for 2024 is 30 million RMB, primarily due to ongoing R&D investments in "卡拉比丘" [12]. Marketing and Cost Management - Marketing expenses decreased by 15% to 196 million RMB, attributed to improved customer acquisition efficiency and community engagement [13]. - R&D expenses also saw a reduction, with a focus on capitalizing certain development costs [13][14]. Future Outlook - The company aims to enhance its game portfolio with a focus on long-term operational stability and profitability [17]. - Plans to optimize the game publishing model to improve cash flow and reduce risks associated with upfront payments [18]. - The company is committed to improving stock liquidity and investor structure following its exit from the Hong Kong Stock Connect [31]. Strategic Focus - The company aims to solidify its position as an IP-driven entity, focusing on high-quality game content and sustainable profitability [44][46]. - Future game development will prioritize high-barrier genres, leveraging AI technology to enhance gameplay and user experience [46][47]. Additional Insights - The company is adapting its game design based on user feedback, particularly for "卡拉比丘," to include more casual gameplay options and improve user experience [24][25][26]. - The integration of AI in gameplay is expected to enhance player engagement and retention, with plans for more intelligent NPC interactions [42][43]. This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic direction, financial performance, and future initiatives.