Core Viewpoint - The financial performance of the company Tom Cat (300459) has significantly declined in the 2025 mid-year report, with a notable drop in both revenue and net profit compared to the previous year [1][3]. Financial Performance Summary - Total revenue for the first half of 2025 was 463 million yuan, a decrease of 19.62% year-on-year [1]. - The net profit attributable to shareholders was -30.33 million yuan, reflecting a year-on-year decline of 141.34% [1]. - The gross profit margin was 86.59%, down 2.31% from the previous year, while the net profit margin was -6.89%, a decrease of 154.24% [1]. - Total expenses (sales, management, and financial) amounted to 328 million yuan, accounting for 70.9% of revenue, an increase of 27.6% year-on-year [1]. - Earnings per share were -0.01 yuan, a decline of 150.0% compared to the previous year [1]. Cash Flow and Debt Analysis - The net cash flow from operating activities decreased by 51.93%, attributed to reduced cash received from sales [3]. - The company’s cash and cash equivalents decreased by 34.91% to 357 million yuan [3]. - The interest-bearing debt decreased by 11.70% to 1.563 billion yuan [1]. Business Evaluation - The company's historical return on invested capital (ROIC) has been relatively low, with a median ROIC of 9.01% since its listing [4]. - The company has experienced three years of losses since its IPO, indicating a fragile business model [4]. - The cash flow situation is concerning, with a cash to current liabilities ratio of only 22.63% [4]. Fund Holdings - The largest fund holding Tom Cat shares is the Southern CSI 1000 ETF, with 32.47 million shares, indicating a new entry into the top ten holdings [5]. - The fund has shown a significant increase in value, with a 65.64% rise over the past year [5]. Future Developments - The company is focusing on developing in-app purchase games, with recent products showing a year-on-year revenue growth of 27% and 24% in April and May respectively [6]. - New game products are in development, including "Tom Cat Town" and "Tom Cat Mobilization 2," aimed at enhancing user interaction and expanding the user base [6].

Group 1: Game Development and Revenue Growth - The in-app purchase revenue from the Tom Cat family IP games saw year-on-year growth of 27% in April and 24% in May [3] - The company is focusing on the development of new in-app monetization products, including "Jin Jie Cat Enlightenment Garden" and "Tom Cat Town," which are expected to further increase in-app revenue [3] - A new virtual pet game, "Tom Cat Mobilization 2," is set to launch in 2025, aiming to expand the user base and market influence [3] Group 2: AI Robot Sales Performance - The sales of Tom Cat AI robots have shown significant growth, with transaction volumes increasing by 137%, 96%, and 163% from March to May [4] - The company is expanding its offline sales channels, with the AI emotional companion robot now available in over 30 airport stores and other retail locations [4] Group 3: AI Robot Collaboration and Development - The company is collaborating with Yushu Technology on a robotic dog project, integrating voice control capabilities with the Tom Cat AI robot [6][5] - The AI robot's features include advanced movement capabilities and emotional support, targeting applications in elder care and home companionship [6] Group 4: Market Outlook and Competitive Advantages - A survey by Tencent Research Institute predicts the AI companionship market will reach a scale of 100 billion by 2027, highlighting the advantages of AI companionship over traditional methods [7] - The Tom Cat AI robot has several innovative features, including long-term memory and proactive interaction, enhancing user engagement [8] - The product leverages the Tom Cat IP, which has a large global fan base, and utilizes a specialized emotional support model for voice interaction [8][9] Group 5: Future Product Development Plans - The company has conducted over 480 updates to the first-generation Tom Cat AI emotional companion robot since December, indicating rapid iteration [10] - Future plans include launching AI robots with different IP characters, portable models, and AI solutions for data security and low-latency applications [10] Group 6: Programmatic Advertising Business - The company’s subsidiary, Aurion11, is exploring the commercialization of programmatic advertising services using machine learning and big data analytics [12] - Aurion11 aims to enhance advertising monetization for mobile application clients, currently engaging with potential clients in the gaming industry [12]