Core Insights - The company reported an 8% year-over-year growth in total revenue to RMB28.4 billion, which was 3% below consensus expectations [3] - Core online game revenue grew by 13% year-over-year to RMB22.8 billion, missing consensus estimates by 2% to 3% [3] - Adjusted net profit of RMB9.5 billion was in line with consensus, primarily driven by a record high in sales and marketing expenses [3] Financial Performance - The gross profit margin (GPM) was 64.1%, meeting market expectations [3] - Sales and marketing expenses reached a historical high of RMB4.5 billion, up 17% year-over-year [3] - Operating profit increased by 12% year-over-year to RMB8.0 billion, but missed consensus expectations for operating profit margin (OPM) [3] Strategic Focus - The company is committed to enhancing resource allocation efficiency, focusing on fewer but high-potential game pipelines and sustaining evergreen titles [2] - The overseas debut of the game WWM on PC and PS5 is seen as a significant near-term catalyst, with Steam peak concurrent users surpassing 193,000 within two days [2] - Future observations include localization efforts, player habit cultivation, mobile version launch, and commercialization strategies [2] Revenue Estimates - Total revenue estimates for FY2025-27 have been slightly reduced by 1-2% to reflect updated assessments of game performance [2] - The adjusted bottom line estimates have been decreased mainly due to increased operating expense assumptions [2] Shareholder Returns - The company announced an extension of its remaining US$3.0 billion buyback quota until January 2029 and will continue to distribute regular quarterly dividends at a rate of 30% [3]