Summary of the Conference Call for Kaiying Network Company Overview - The focus is on the 996 Legend Box, which enhances brand recognition through exclusive IP licensing, such as "Legend of Blood" and "Legend World" [2][4][5] - The company is shifting its strategy towards a platform-based community centered around "retro sentiment" to expand game categories and community services [2][6] Key Points and Arguments Industry and Company Strategy - The 996 Legend Box is positioned as a vertical community platform catering to "Legend" users, with potential expansion to other retro IPs [3] - The current daily active users (DAU) are approximately 400,000 to 500,000, with a potential market of over 2 million "Legend" users, indicating significant growth potential [3] - The company has signed exclusive licensing agreements, expecting an increase in revenue by 400 to 500 million RMB in 2025, with a projected revenue of 1.5 to 2 billion RMB in 2026, and gross margins of 90% [2][8] Revenue and Profitability - The primary revenue model is currently advertising, but future monetization paths include cloud services, live streaming fees, and in-game rewards [7][9] - The company anticipates a significant revenue boost in Q3 2025 due to new licensing agreements, with total revenue expected to reach around 1 billion RMB [8] - The net profit margin is projected to be between 50% and 60%, with potential increases as advertising prices rise [8] User Growth and Engagement - New users are expected to be attracted through brand zones and the integration of popular products, with all products required to feature the 996 Legend Box logo [10][11] - The company aims to double its user base through live streaming and influencer engagement, enhancing platform activity [11] Future Growth Potential - The company sees potential for revenue growth to reach 2 to 3 billion RMB in the next two years, with corresponding net profits of approximately 12 to 18 billion RMB [13] - The overall profit potential for the company could exceed 3 to 4 billion RMB if other major products perform well [14] Recent Initiatives - Recent initiatives include a unified branding campaign requiring all products to feature the 996 logo and inviting influencers to enhance platform engagement [15] - The company is also developing a props trading platform and a points system to ensure user retention [15] Confidence in Future Development - The company demonstrates confidence in its future through share buybacks and commitments from executives not to sell shares for five years [16] Additional Important Insights - The core of the business model revolves around user growth and advertising revenue, with a significant increase in revenue from 200 million to 900 million RMB over the past few years [17] - Key performance indicators for future growth include user engagement metrics and advertising investments, with a focus on high-quality user acquisition [19] - The company has several upcoming game releases, including "Three Kingdoms" and "Douluo Dalu," which are expected to contribute to overall performance [20][21] Conclusion - The 996 Legend Box is positioned for significant growth through strategic licensing, user engagement, and diversified revenue streams, with a strong focus on community building and brand recognition. The company's proactive measures and confidence in its strategy suggest a promising outlook for future performance.

Core Viewpoint - The company reported a stable performance in H1 2025, with revenue growth driven by new game contributions and high growth in information services, alongside a share buyback plan for 2025 [1] Financial Performance - H1 2025 revenue reached 2.578 billion yuan, a year-on-year increase of 0.89%, with net profit attributable to shareholders at 950 million yuan, up 17.41% year-on-year [1] - Q2 2025 revenue was 1.225 billion yuan, down 1.80% year-on-year and 9.43% quarter-on-quarter, while net profit was 432 million yuan, up 12.79% year-on-year but down 16.64% quarter-on-quarter [1] - The company's gross margin for H1 2025 was 82.38%, with a slight increase of 0.37 percentage points year-on-year [4] Product Innovation and Market Expansion - The company launched successful new products such as "Dragon Valley World" and "Digimon: Source Code," with the self-developed mobile game "Hot Blood Jianghu: Return" performing well in both domestic and overseas markets [2] - H1 2025 overseas revenue reached 202 million yuan, a year-on-year increase of 59.6% [2] - The company is expanding its 996 Legend Box collaboration, which contributed to a 65.33% increase in information service revenue to 660 million yuan, accounting for 25.47% of total revenue [3] Cost Management - The sales expense ratio decreased by 3.85 percentage points to 33.61%, reflecting optimized user acquisition strategies, while management expenses also declined, indicating effective cost control [4] Profit Forecast and Valuation - The company slightly raised its net profit forecast for 2025-2027 to 2.19 billion, 2.55 billion, and 2.89 billion yuan, respectively, reflecting a 7.27% to 5.97% adjustment [5] - The target price was increased to 30.72 yuan based on a 30X PE valuation for 2025, considering the ongoing expansion in overseas markets and high growth in information services [5]

Group 1 - The core viewpoint of the news is the debut of the 996 Legend Box at the 2025 ChinaJoy, highlighting its focus on the legendary IP ecosystem and its strategic long-term operations in the gaming industry [1][2] - The 996 Legend Box has secured exclusive rights to the domestic Legend and Chuan Shi game copyrights, marking a significant milestone in the history of the Legend IP, which has been active for over 20 years [1] - The exhibition at ChinaJoy aims to engage millions of players and industry peers, showcasing the platform's extensive development of the Legend ecosystem and its various gameplay options [1][2] Group 2 - The platform has established a mature player community that enhances player cohesion through benefits, shared experiences, and social interactions [2] - The 996 Legend Box hosts professional esports events, including the "Legend World Cup," with a maximum single-session prize of 1.92 million yuan, attracting top guilds from across the country [2] - The company aims to provide a one-stop immersive experience for players, continuing to deepen content and ecosystem development while empowering developers and serving millions of players [2]

Core Viewpoint - The launch of the "Eagle Feather Combined Attack" game mode on the 996 Legend Box platform represents a significant evolution in the classic Legend mobile game genre, offering enhanced gameplay experiences and extensive exploration opportunities for players [1][3][24]. Gameplay Features - The "Eagle Feather Combined Attack" is based on the classic 1.85 version of the three professions, featuring a vast world structure and a rich equipment system with over a thousand items, providing diverse gameplay options [3][5]. - The core gameplay revolves around the classic three-profession combined attack, allowing players to form six unique combinations that cater to different play styles, whether for PvP or monster hunting [5][10]. World and Exploration - The game retains the classic structure of the 1.85 version while introducing a new continent, "Eagle Feather City," with over ten new dungeons and maps available after reaching level 70, enhancing the exploration aspect [9][10]. - Players can access various dungeons, including the Emperor's Tomb and Dark Night Temple, which offer new equipment, materials, and gameplay mechanics [9][10]. Equipment System - The equipment system is significantly expanded compared to retro versions, featuring main gear, weapons, accessories, and special items, all of which require players to engage in monster hunting and leveling up to acquire [10][12]. - Unique accessories and artifacts can be crafted and upgraded through gameplay, adding depth to the equipment progression system [12][16]. Progression Mechanics - The game includes a comprehensive character progression system with various upgrade paths, such as title upgrades, skill enhancements, and new awakening features, ensuring a rich and engaging experience for players [18][20]. - Players can benefit from numerous rewards and incentives to facilitate their progression, including daily tasks, membership bonuses, and lottery systems [23][24]. Community Engagement - The game emphasizes community interaction and player engagement, with features designed to reward participation and enhance the overall gaming experience [23][24]. - The platform aims to cater to a wide range of player preferences, from combat-focused gameplay to nostalgic experiences, ensuring a diverse gaming ecosystem [25].