Investment Rating - The report maintains a "Buy" rating for the company [9]. Core Views - The company achieved revenue of 938 million yuan in Q2 2025, representing a year-on-year increase of 28.42% and a quarter-on-quarter increase of 29.64%. The net profit attributable to the parent company was 429 million yuan, up 17.49% year-on-year and 23.37% quarter-on-quarter [2][5]. - The game "Supernatural Action Group" has shown exponential growth in user scale and revenue, reaching a peak of over 1 million concurrent users in July. The game has consistently ranked in the top 10 of the iOS free games chart and reached a highest position of 4 in the iOS revenue chart [6]. - The company’s deferred revenue has increased significantly, with confirmed deferred income of 889 million yuan as of June 30, 2025, compared to 761 million yuan on March 31, 2025, and 498 million yuan in Q2 2024. This increase is expected to continue contributing to revenue growth [6]. Summary by Sections Financial Performance - In the first half of 2025, the company reported total revenue of 1.662 billion yuan, a year-on-year increase of 16.47%. The net profit attributable to the parent company was 777 million yuan, up 8.27% year-on-year [5]. - The company’s Q2 2025 revenue was 938 million yuan, with a net profit of 429 million yuan and a non-recurring net profit of 444 million yuan [2][5]. Game Performance and Development - The game "Supernatural Action Group" has achieved significant user growth and revenue, with a stable monthly revenue of around 100 million yuan for "Original Journey" and a total of over 20 million new users in the first half of the year [6]. - Several new games are in the pipeline, including "Five Thousand Years" and "Famous Generals Kill," which are expected to contribute to future revenue growth [7]. Sales and Marketing - Sales expenses increased to 317 million yuan in Q2 2025, with a sales expense ratio of 33.8%. However, the overall return on investment (ROI) from marketing efforts remains favorable [7]. - The company is actively pursuing a comprehensive layout of games combined with AI technology, enhancing user engagement and playtime [7]. Profit Forecast - The company is projected to achieve net profits of 2.26 billion yuan and 3.18 billion yuan in 2025 and 2026, respectively, corresponding to price-to-earnings ratios of 26.2 and 18.6 [7].