Core Viewpoint - The company, Chuangmeng Tiandi (01119.HK), has entered into a capitalization agreement and subscription agreements to issue approximately 166 million shares at a subscription price of HKD 1.098 per share, which represents a premium of about 4.57% over the closing price of HKD 1.050 [1][2]. Group 1 - The total amount raised from the issuance of approximately 166 million shares under the capitalization agreement is approximately HKD 183 million [3]. - The shares issued under the capitalization and subscription agreements represent about 13.09% of the company's existing issued share capital as of the announcement date, and about 11.57% of the enlarged issued share capital post-transaction [2]. - The proceeds from the subscription agreement, estimated at approximately HKD 76.61 million, will be used for game product operational promotion and general working capital [3]. Group 2 - The capitalization agreement will not generate any cash proceeds, as all proceeds will be used to offset a total of USD 23.49 million (approximately HKD 183 million) in royalties owed by Shenzhen Chuangmeng to the capitalization agreement subscriber [3]. - The capitalization agreement subscriber, PLR Worldwide Sales Limited, is a limited liability company established in the Republic of Ireland, primarily engaged in mobile game development and multi-platform marketing [2].

Group 1 - The company Dreamland (01119.HK) announced a capital agreement on September 29, 2025, to issue approximately 166 million shares at a subscription price of HKD 1.098 per share [1][2] - The subscription price represents a premium of approximately 4.57% compared to the closing price of HKD 1.050 per share [2] - The shares issued under the capital agreement and subscription agreement will account for approximately 13.09% of the existing issued share capital and approximately 11.57% of the enlarged issued share capital [2] Group 2 - The total proceeds from the issuance of approximately 166 million shares to the capital agreement subscriber will be approximately HKD 183 million [3] - The capital agreement will not generate any cash proceeds, as all proceeds will be used to offset a total of USD 23.49 million (approximately HKD 183 million) in royalties owed to the capital agreement subscriber [3] - The estimated net proceeds from the subscription will be approximately HKD 76.33 million, which the company plans to use for game product promotion and general working capital [3]

Group 1: Overview of China's Gaming Industry Growth - The Chinese gaming industry is experiencing a new wave of growth in overseas markets, with actual sales revenue from self-developed games reaching $9.501 billion in the first half of 2025, a year-on-year increase of over 11% [1] - Traditional markets such as North America, Japan, South Korea, and Western Europe remain key revenue contributors, but competition is intensifying, prompting Chinese companies to explore underdeveloped emerging markets [1] - Emerging markets in the Middle East, Latin America, and Southeast Asia are rising, presenting new growth opportunities for manufacturers [1] Group 2: Vietnam's Gaming Market - Vietnam has emerged as a significant player in the global gaming scene, with mobile game downloads reaching the highest globally in 2024, surpassing China [5] - Chinese games dominate the Vietnamese market, with 81% of approved games being from China, and titles like "Sword of Legends Online" have historically held a significant market share [7] - The success of Chinese games in Vietnam is attributed to cultural proximity, effective localization strategies, and integration with local payment platforms [9] Group 3: Challenges in the Vietnamese Market - Despite the potential, challenges such as strict approval processes and market size versus commercial return discrepancies exist, requiring companies to adjust expectations [9] - The Vietnamese gaming market is projected to reach $1.5 to $2 billion by 2025, with an annual growth rate of 15% to 25% [9] Group 4: Middle East Gaming Market - The Middle East is becoming a new blue ocean for the gaming industry, driven by a large population, strong consumer spending, and government support [12] - Saudi Arabia's government has elevated the gaming industry as a national strategy, planning to invest $38 billion in gaming and esports [14] - The market is characterized by high consumer spending, with Saudi users' average revenue per user (ARPU) being twice that of the U.S. and five times that of China [14] Group 5: Russia's Gaming Market - Russia's mobile game downloads reached 1.18 billion in the first half of 2024, making it the fifth largest globally, supported by a smartphone penetration rate of 83% [17] - The local digital ecosystem has shown resilience despite international sanctions, with in-app purchase revenue expected to reach $247 million in 2024, growing 12% year-on-year [17] - The exit of Western companies has created a "window of opportunity" for Chinese developers to fill the gap in the market [20] Group 6: Latin America's Gaming Market - Latin America is a growing market with approximately 150 million gamers and a market size of around $3.8 billion, with Brazil being the largest market [21] - The effectiveness of marketing strategies has shifted towards leveraging KOLs (Key Opinion Leaders) for brand promotion, especially in gaming [23] - The market is in a recovery phase, with Chinese companies increasingly establishing local teams for customized operations [24] Group 7: Future Outlook - The Chinese gaming industry is entering a new phase focused on strategic depth and localization, moving away from a reliance on traffic and short-term gains [25] - The next decade will see competition driven by the ability to transition from "game developers" to "localization partners," enabling sustainable global development [26]

Core Insights - The company, Chuangmeng Tiandi (01119), reported a mid-term performance for the six months ending June 30, 2025, with revenue of 686 million RMB, a gross profit of 289 million RMB, and a net profit attributable to shareholders of 28.514 million RMB, marking a turnaround from a loss of 110 million RMB in the same period last year [1][1][1] - The gaming segment remains the primary revenue driver, contributing 97.5% and 97.3% of total revenue for the periods ending June 30, 2025, and 2024, respectively [1][1][1] - The company’s core games, including "Subway Surfers," "Dream Garden," "Dream Home," and "Mecha Squad," continue to generate significant revenue, while new releases like "Legendary Store: Management and Crafting" and the jointly developed "Delta Action" with Tencent have also performed well [1][1][1]

Group 1 - The core viewpoint of the article highlights that Dreamland (01119) has seen a significant increase in its stock price, rising over 55% within the month and currently trading at 1.2 HKD with a transaction volume of 21.36 million HKD [1] - On July 29, Dreamland announced a capital agreement with Playrix's PLR Worldwide Sales Limited, which will subscribe to approximately 38.08 million shares at a price of 1.024 HKD per share, totaling an investment of 39 million HKD [1] - Following the completion of the transaction, Playrix will hold approximately 2.11% of Dreamland's shares, indicating a strategic partnership with a major player in the mobile gaming industry [1] Group 2 - PLR Worldwide Sales Limited specializes in mobile game development, multi-platform marketing, distribution, and operation, with notable products including "Gardenscapes" and "Homescapes" [1] - The board believes that this capital agreement will introduce a long-term cooperative upstream developer as a strategic shareholder, preserve the group's cash flow for future business development, and strengthen the group's financial position [1]

Group 1 - The core viewpoint of the article highlights the significant stock price increase of Dreamland (01119), which has risen over 55% in the month, with a current price of 1.2 HKD and a trading volume of 21.36 million HKD [1] - On July 29, Dreamland announced a capital agreement with Playrix's PLR Worldwide Sales Limited, which will subscribe to approximately 38.08 million shares at 1.024 HKD per share, totaling an investment of 39 million HKD [1] - Following the transaction, Playrix will hold approximately 2.11% of Dreamland's shares, indicating a strategic partnership with a major player in the mobile gaming industry [1] Group 2 - PLR Worldwide Sales Limited specializes in mobile game development, multi-platform marketing, distribution, and operation, with notable products including "Gardenscapes" and "Homescapes" [1] - The board believes that this capital agreement will introduce a long-term cooperative upstream developer as a strategic shareholder, preserve the group's cash flow for future business development, and strengthen the group's financial position [1]

Group 1 - The core viewpoint of the article highlights the significant stock price increase of Chuangmeng Tiandi (01119), which has risen over 55% in the month, with a current price of 1.2 HKD and a trading volume of 21.36 million HKD [1] - On July 29, Chuangmeng Tiandi announced a capital agreement with Playrix's PLR Worldwide Sales Limited, which will subscribe to approximately 38.08 million shares at a price of 1.024 HKD per share, totaling an investment of 39 million HKD [1] - Following the completion of the transaction, Playrix will hold approximately 2.11% of Chuangmeng Tiandi's shares, indicating a strategic partnership with a major player in the mobile gaming industry [1] Group 2 - PLR Worldwide Sales Limited specializes in mobile game development, multi-platform marketing, distribution, and operation, with notable products including "Gardenscapes" and "Homescapes" [1] - The board of Chuangmeng Tiandi believes that this capital agreement will introduce a long-term cooperative upstream developer as a strategic shareholder, preserve the group's cash flow for future business development, and strengthen the group's financial position [1]

Core Insights - The global mobile game revenue rankings for June 2025 have been released, with Tencent's "Honor of Kings" leading the chart despite a month-over-month revenue decline [1][2]. Group 1: Top Revenue Generating Games - "Honor of Kings" by Tencent generated $143 million in June, maintaining its top position despite a $40 million drop from May's $184 million [2]. - "Whiteout Survival" and "LastWar" closely follow, with "Whiteout Survival" earning $128 million and "LastWar" at $127 million, showing a very narrow revenue gap [2]. - "Royal Match" ranked fourth with a revenue of $117 million, marking its first drop below $120 million since June 2024 [3]. Group 2: Notable Trends and Changes - "Monopoly Go" by Scopely has stabilized around $100 million for three consecutive months, while "Candy Crush Saga" saw its revenue fall below $100 million for the first time since February, now at $97 million [3]. - "PUBG Mobile" and "Peacekeeper Elite" also experienced revenue declines, with "Peacekeeper Elite" dropping from approximately $120 million in May to about $94 million in June [3]. - "Pokémon Go" saw a significant revenue increase to over $62 million due to community events, while "Pokémon TCG Pocket" faced a decline from approximately $81 million to $56 million [4]. Group 3: Rankings Beyond the Top 10 - "Genshin Impact" by miHoYo ranked 11th with $48.8 million, while "Gossip Harbor" reached $44.2 million, marking a new high [5][6]. - "Roblox" continued to struggle with a revenue drop to $39.2 million, while "Kingshot" surged to $37.3 million, climbing 13 positions [6][7]. - "Clash Royale" by Supercell achieved a revenue of approximately $36 million, marking its best performance since December 2021 [7].

Core Insights - The global mobile game revenue rankings for May 2025 have been released, showing significant performance variations among top games [1][2]. Group 1: Top Performers - "Honor of Kings" by Tencent continues to lead the chart with a revenue of $184 million in May, maintaining its position after regaining the top spot in April [1][2]. - "Whiteout Survival" and "Last War: Survival" are in a close competition for the second position, with revenues of $137 million and $133 million respectively, marking their third consecutive month of rank changes [2][3]. - "PUBG Mobile" ranks fifth with a revenue of approximately $119 million, showing a slight month-over-month increase [3]. Group 2: Revenue Fluctuations - "Royal Match" experienced significant revenue fluctuations, earning about $127 million in May after peaking at nearly $145 million in March [2]. - "Candy Crush Saga" and "Monopoly Go" followed closely with revenues of $105 million and $100 million, both showing slight declines [3]. - "Pokémon TCG Pocket" saw its revenue rebound to over $80 million, heavily influenced by new card pack releases [3]. Group 3: Rankings 11-20 - The rankings from 11 to 20 include "Gossip Harbor" at $42.4 million, "Brawl Stars" at $38.9 million, and "Honkai: Star Rail" at $38.5 million, indicating a steady performance for these titles [4][5]. - "Gossip Harbor" has shown consistent growth since its launch in mid-2022, achieving a new high in May [5]. - "Fate/Grand Order" made a notable comeback to the top 20 with a revenue of $32.1 million [5].

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].