Core Insights - ByteDance has re-entered the gaming industry with a robust product lineup, including both existing titles and new projects, indicating a strategic focus on long-term growth in this sector [1][3][38] Group 1: Financial Performance - ByteDance's gaming revenue exceeded 3.8 billion yuan this year, reflecting a slight year-on-year decline of 8%, with the game "Mobile Legends: Bang Bang" accounting for over 50% of this revenue [1] - The new title "Jing·Jie Dao Ming" has achieved an 18.5% revenue share in the past month, second only to "MLBB" [1] Group 2: Product Development and Strategy - ByteDance has a reserve of at least 30 games in development, with various genres including action, shooting, and card games, indicating a diverse product strategy [4][38] - The company is exploring both heavy and light gameplay styles, with projects like "Wu Ying Lie Ren" and "Within the Dome: Survival" showcasing this dual approach [10][12] Group 3: Studio Operations - ByteDance operates multiple studios across China, including BlueSea and Oasis in Beijing, ZERO36 in Shanghai, and others in Hangzhou and Guangzhou, each focusing on different game types [5][17][25] - The ZERO36 studio is developing a CCG card game based on the Star Wars IP, while the Oasis studio is working on various action and RPG titles [17][19] Group 4: Market Expansion and New Ventures - ByteDance is testing new games in international markets, such as the fishing game "Yacht & Catch" and the stacking elimination game "Tile Blast - Triple Match," indicating a strategy to diversify its gaming portfolio [33][29] - The company is also considering platform business models, as seen with the GameTop platform, which aims to integrate casual games [39]

Group 1 - ByteDance's gaming division, Chaoxi Guangnian, has not shut down its Shanghai studio, nor is there a project named "Project: Babel" [1] - Recent rumors suggested a layoff of approximately 300 employees (40% of the department) due to unmet project progress expectations, with a compensation plan of N+2 [1] - The Shanghai gaming development operations primarily rely on Mutong Technology and ZERO36 studio, with ZERO36 known for titles like "One Piece: Burning Blood" and "Hatsune Miku: Colorful Stage" [2] Group 2 - Mutong is working on an ARPG competitive project and a PC action game, along with two card game projects under the codenames "Card-Z" and "Card-W" [2] - ZERO36 is developing a CCG card game based on a space battle IP and is actively recruiting for various positions, including CCG card system planners and casual game planners [2][3][4][5][6][7] - The studio has previously hired Lu Jiaxian, the founder of Muqi Qi, who had announced layoffs in 2022 [2]

Summary of Zhongshou's Conference Call Company Overview - Zhongshou's overseas revenue reached RMB 272 million in 2024, accounting for 14.1% of total revenue, with significant contributions from the game "Douluo Dalu: Shrek Academy" in the Hong Kong, Macau, and Taiwan markets [1][3] - The company plans to expand its overseas business by launching "Douluo Dalu: Reverse Time" in international markets [1][3] Core Business Segments - Zhongshou's game publishing revenue for 2024 was RMB 1.665 billion, with three main business segments: game publishing, game development, and IP licensing [2] - Key games launched include "Douluo Dalu: Shrek Academy," "Doupo Cangqiong: Peak Showdown," and "Douluo Dalu: Reverse Time," all performing exceptionally well [2][15] - The company aims to launch 18 new games in 2025, focusing on high-quality IP games and innovative mini-games [2][10] Long-term Operating IP Games - Zhongshou has several long-term operating IP games, including "Xianjian Qixia Chuan," "One Piece: Bloodline," and "True Three Kingdoms: Domination," which have shown strong revenue performance [4] - "New Legend of the Condor Heroes: Iron Blood and Heart" generated RMB 260 million in its first month, while "One Piece: Bloodline" has maintained active engagement since its launch [4] Research and Development - The company invested RMB 244 million in R&D in 2024, focusing on projects like "Code: Dark Night Legend" and the open-world game "Xianjian World" [5] - "Xianjian World" was launched in early 2025, while "Code: Dark Night Legend" is expected to enter testing later in 2025 [5][13] IP Licensing Achievements - In 2024, IP licensing revenue was RMB 116 million, with Zhongshou holding complete global rights to "Xianjian Qixia Chuan" [7] - The company collaborates with partners like iQIYI and Tencent to produce series based on the IP, enhancing its market presence [8] Mini-Game Platform - The mini-game platform has lower channel costs and higher profit margins, with "Chunqiu Xuanqi" generating over RMB 100 million in its second month [17] - The company aims to deepen its development in the mini-game sector, targeting a revenue increase [17] Overseas Market Strategy - Zhongshou began its overseas business in 2021, with revenue contribution rising from less than 1% to over 10% in the first year [19] - The company plans to accelerate its overseas expansion, targeting a revenue contribution of 20% to 30% from international markets in the next three years [19][20] Future Outlook - The company is considering stock buybacks and dividends based on market conditions, with ongoing support from major shareholders [21] - The competitive landscape in the gaming market remains intense, but Zhongshou's strong IP portfolio positions it favorably [16]

Summary of Conference Call Records Industry Overview - The conference call discusses the **Chinese IP gaming market**, highlighting that **82%** of the actual sales revenue from January to September 2024 is derived from IP products [1] - The market size for original IP games in China reached **945.8 billion** in the same period, with the overall gaming market projected to exceed **245.9 billion** for the full year 2023 [2] Key Insights and Arguments - The company emphasizes the importance of **self-developed and co-developed IP**, aiming for global promotion and sustainable operations through acquisitions like **Xianjian Yaozhuan** [1] - Original IP games are characterized by high **freedom and potential cost-effectiveness**, as they represent assets that can be continuously developed and accumulated [3] - The company has successfully launched popular IP games, such as **One Piece: Bloodline**, which generated over **400 million** in monthly revenue, and **Xianjian Qixia Zhuan**, which has a user base exceeding **60 million** [9][10] - The company has established deep collaborations with various IP rights holders, including **Chinese and Japanese anime**, and has over **128 IP cooperation resources** [8] Trends and Market Dynamics - There is a growing trend of **cross-platform releases**, with simultaneous launches on PC and mobile to capture a larger user base [2] - The integration of **traditional culture** into games, such as **Nezha** and **Black Monkey Flower**, positively impacts the cultural tourism industry [3] - The company notes the increasing importance of **quality and innovation** in IP development, with a formula for success based on IP popularity, gameplay compatibility, and fan emotional connection [6] Potential Risks and Considerations - Despite the high value of IP, there is a need to avoid over-reliance on IP alone, as quality and innovation are critical for success [6] - The company is cautious about selecting IPs for collaboration, focusing on those with high potential and low competition [7] Future Plans and Developments - The company plans to continue expanding its IP portfolio, with upcoming projects including **Disney Speed Legends** and **DreamWorks All-Stars** [11] - There are plans for new **single-player games** and various **animation projects** in collaboration with platforms like **Bilibili** [16] - The company aims to leverage its IPs for broader engagement, including community-building platforms and derivative products [14][15] Conclusion - The conference call highlights the robust growth and potential of the Chinese IP gaming market, with the company positioning itself as a leader in IP development and collaboration, while also addressing the challenges and strategies for future success.