Giant Network(SZ:002558)2025-04-30 09:16Group 1: Company Performance Overview - In 2024, the company achieved an operating income of CNY 2.923 billion, remaining flat year-on-year, and a net profit attributable to shareholders of CNY 348 million, representing a year-on-year increase of 31.15% [1][2] - The net profit excluding non-recurring gains and losses was CNY 1.623 billion, up 18.23% year-on-year [1] - In Q1 2025, the company reported an operating income of CNY 724 million, reflecting a year-on-year growth of 3.94% [1] Group 2: User and Product Insights - The new user ratio for the "Zhengtu" mini-program is significantly higher compared to the PC and mobile game versions, with mini-program revenue accounting for approximately 20% to 30% of "Original Zhengtu" [3] - The new self-developed SLG game "Five Thousand Years" has obtained a license and is undergoing multiple rounds of testing, with each round showing improvement [3] - "Supernatural Action Group," a new iteration from the "Space Kill" team, is expected to begin promotion and enter commercial operation this year [3] Group 3: Financial Metrics and Projections - The company's Q4 2024 gross margin decreased year-on-year due to rising operating costs, including server hosting and labor costs [8][9] - In Q1 2025, the gross margin significantly improved due to a one-time reversal of server hosting costs, alongside other factors such as reduced revenue sharing from older agency games [9] - The increase in contract liabilities in Q1 2025 was primarily driven by significant revenue growth from "Original Zhengtu," although the income recognition lagged behind the revenue increase [10] Group 4: Strategic Initiatives and Future Plans - The company is actively exploring AI applications beyond gaming, including strategic and financial investments in AI projects [6] - There are considerations for launching new products in the PC gaming market, although no formal projects have been initiated yet [7] - The company is researching suitable product directions for overseas markets, aiming to create globally operable products [8]