Core Viewpoint - Tian Ge Interactive (01980) reported a significant increase in revenue for the first half of 2025, but also faced substantial losses due to increased product incubation costs and fair value losses from financial investments [1] Financial Performance - Revenue reached 32.425 million RMB, representing a year-on-year growth of 508% [1] - The loss attributable to the company's owners was 22.432 million RMB, compared to a profit of 44.079 million RMB in the same period last year [1] - Basic loss per share was 0.019 RMB [1] Revenue Breakdown - Revenue from online interactive entertainment services surged from approximately 3.3 million RMB in 2024 to about 28.8 million RMB, marking an increase of 774.4% [1] - This growth was primarily driven by strategic investments and the ongoing optimization and integration of the "Sila Chat" platform, as well as healthy growth in the gaming market promotion and operations business launched in December 2024 [1] Loss Factors - The losses were mainly attributed to increased product incubation costs due to the company's strategy of investing and incubating multiple online interactive entertainment platforms across various regions, leading to higher resource allocation [1] - Fair value losses were also a significant factor, influenced by macroeconomic factors including increased tariffs [1]

Core Viewpoint - Tian Ge Interactive (01980.HK) reported a significant turnaround in its financial performance for the year ending December 31, 2024, achieving a revenue of 10.16 million RMB and a net profit of 20 million RMB, compared to a loss of 135 million RMB in the previous year [1][2][3]. Financial Performance - Revenue for 2024 was 10.16 million RMB, a decrease from 67.62 million RMB in 2023 [2]. - The company reported a gross profit of 8.1 million RMB, with a gross profit margin of 79.8%, down from 87.0% in the previous year [2]. - Net profit reached 19.92 million RMB, marking a net profit margin of 196.0%, a significant recovery from a net loss margin of 199.7% in 2023 [2]. - Earnings per share improved to 0.018 RMB from a loss of 0.114 RMB per share in the previous year [2]. Investment Strategy and Portfolio - The company has strategically invested in high-growth potential sectors, including social reasoning games, Southeast Asian e-commerce, and short video content in India, which contributed to its improved financial performance [3][5]. - As of December 31, 2024, Tian Ge Interactive's financial assets totaled 1.757 billion RMB, with significant holdings in fund investments, private investments, and wealth management products [6][7]. - The company’s investment portfolio includes stakes in emerging technology companies, which are expected to yield substantial returns due to their innovative business models and strong market potential [23][24]. Market Position and Valuation - Despite the positive financial results, the company's market capitalization is currently undervalued at approximately 662 million HKD (about 607 million RMB), compared to the average price-to-book ratio of 0.85 for the investment and asset management sector [8]. - The company’s cash and cash equivalents stood at 467 million RMB, indicating a strong liquidity position [8]. - The market perception of Tian Ge Interactive remains focused on its traditional live-streaming business, overlooking the hidden value in its technology investments, particularly in AI-related assets [25].