[中报]三七互娱(002555):2025年半年度报告摘要（英文版）
原标题:三七互娱:2025年半年度报告摘要（英文版） TechnologyGroupCo.,Ltd. 2025InterimReport(Summary) August2025 PartIImportantNotes,TableofContentsandDefinitions The Board of Directors (or the “Board”) as well as the directors and seniormanagementof37InteractiveEntertainmentNetworkTechnologyGroupCo.,Ltd.(hereinafter referred to as the “Company”) hereby guarantee the truthfulness,accuracyandcompletenessofthecontentsofthisReport,andshallbejointlyandseverally liable for any misrepresentations, misleading statements or materialomissionstherein. Zeng Kaitian, the Company’s legal representative, and Ye Wei, theCompany’sChiefFinancialOfficer&BoardSecretary,herebyguaranteethatthefinancialstatementscarriedinthisReportaretruthful,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReport. PossiblerisksfacingtheCompanyandcountermeasureshavebeendetailedin “VII Risks Facing the Company and Countermeasures” under “Part IIIManagementDiscussionandAnalysis”herein,whichinvestorsarekindlyremindedtopayattentionto. TheCompanyissubjecttothedisclosurerequirementsforlistedcompaniesengagedinsoftwareandITservices. TheBoardhasapprovedaninterimdividendplanasfollows:basedonthetotal issued share capital (exclusive of shares in the Company’s account forrepurchased shares) on the date of record, a cash dividend of RMB 2.10 (taxinclusive)per10sharesisplannedtobedistributedtoalltheshareholdersoftheCompany,withnobonusissuefromeitherprofitorcapitalreserves. TableofContents PartIImportantNotes,TableofContentsandDefinitions..................................................................................2 ............................................................................PartIICorporateInformationandKeyFinancialInformation 4 ......................................................................................................... PartIIIManagementDiscussionandAnalysis 7 ...........................................................................PartIVEnvironmental,SocialandGovernanceInformation 29 .........................................................................................PartVShareChangesandShareholderInformation 34 PartVIFinancialStatements......................................................................................................................................39 PartIICorporateInformationandKeyFinancialInformation ICorporateInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.□Yes?No
1.NetProfitandEquityunderCASandIFRS □Applicable?Notapplicable NodifferencefortheReportingPeriod. 2.NetProfitandEquityunderCASandForeignAccountingStandards □Applicable?Notapplicable NodifferencefortheReportingPeriod. VNon-recurringprofitsandlosses ?Applicable□Notapplicable Unit:RMB
NosuchcasesfortheReportingPeriod. ExplanationofwhytheCompanyreclassifiesasrecurrentanon-recurringprofitsandlossesitemlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringProfitsandLossesItems: □Applicable?Notapplicable NosuchcasesfortheReportingPeriod. PartIIIManagementDiscussionandAnalysis IPrincipalOperationsoftheCompanyintheReportingPeriod (I)Industryreview 1.GrowthinindustryscaleanduserbasecontinuedtounlockthepotentialofthegameindustryAccordingtotheChina’sGameIndustryReportfromJanuarytoJune2025releasedbytheGamePublishingCommitteeofChinaAudio-videoandDigitalPublishingAssociation(CADPA),duringthefirsthalfof2025,theactualsalesrevenueofthedomesticgamingmarketreachedRMB168,000million,representingayear-over-year(YoY)increaseof14.08%;andthenumberofgameusersapproximated679million,aYoYincreaseof0.72%.Bothfigureshavehitrecordhighs. In recent years, the mini-game segment continued its explosive growth, with several outstandingproductsemerging.Thesegamesexpandedintopreviouslyuntappeduserdemographicswithinexistingapplicationscenarios.Theiraccessibleentrypointsmorepreciselyandeffectivelyattractedtargetplayers,whilefragmented gameplay and lightweight userexperiences introduced morecasual gaming modes.Thesefeaturesmetusers’demandforlight,fragmentedentertainmentandbroughtnewgrowthpotentialtothegamingindustry.Inthefirsthalfoftheyear,theactualsalesrevenuefromdomesticappletgamesamountedtoRMB23,276million,aYoYgrowthof40.2%. FromJanuarytoJune2025,theself-developedgamesinChinageneratedUSD9.501billioninoverseasmarketrevenue,aYoYincreaseof11.07%.TheUnitedStates,Japan,andSouthKorearemainedtheprimarytargetmarkets for Chinesemobilegames abroad,withrespectivesharesof31.96%,16.20%,and 7.47%.Additionally,thecombinedmarketshareofGermany,theUnitedKingdom,andFrancewas8.78%,makingEuropeakeyregionforChinesegameexports.Amongthetop100self-developedmobilegameswiththehighestoverseasrevenue,strategygames(includingSLG)accountedfor43.33%,rankingfirst,followedbyrole-playinggameswitha10.02%share,slightlydowncomparedtothesameperiodlastyear.Shootinggamesrankedthirdwithashareof8.85%,showingaslightYoYincrease.Inthefirsthalfof2025,drivenbypolicysupport,asoundecosystem,andtechnologicalinnovations,theChinesegameindustryshowedsteadygrowth.Theindustryfocusedonthedevelopmentandinnovationofhigh-qualitygames,comprehensivelyenhancingproductqualitywhileacceleratingglobalexpansion.Theindustryscalecontinuedtogrow,economicpotentialcontinuedtobereleased,andstrongmomentumforhigh-qualitydevelopmentwasinjected. 2. Policy guidance drove high-quality development and multi-dimensional exploration of "Games+"integration InMarch2025,theGeneralOfficeoftheCPCCentralCommitteeandtheGeneralOfficeoftheStateCouncil issued the Special Action Plan for Boosting Consumption, proposing to “strengthen consumption brandleadership.Focusoncommerce,logistics,cultureandtourism,andotherservicesectors,andformulatetargetedpoliciestoenhanceservicequality.DevelopmoreChineseservicebrands.IntegrateoutstandingtraditionalChinesecultureintoproductdesign,supportthedevelopmentoforiginalintellectualproperty(IP)brands, promote consumption of animation, games, e-sports and their derivative products, and expanddomesticandinternationalmarketsforfashionabledomesticbrands”.InApril2025,theMinistryofCommerceissued a notice titled “Work Plan for Accelerating the Promotion of the Comprehensive Pilot Program for Expanding Opening-up of the Service Industry”, which proposed the development of game exports and encouraged afullindustrial chainlayout from IP creation to game production,distribution, and overseas operations.InMay2025,GuangdongProvincepublishedSeveralPolicyMeasuresforPromotingHigh-Quality Development of Guangdong’s Online Game Industry, which focused on supporting original high-quality games, technological innovation, optimizing the business environment, establishing industrial clusters, improving support systems, and strengthening service support mechanisms to promote the high-quality developmentofGuangdong’sonlinegameindustry. Inresponsetonationalpolicies,theCompanyhasearnestlyimplementedmanagementrequirements.It delvedintotheessenceoftraditionalcultureingameR&Dandoperationalstrategies.Andithasactively sought to integrate cultural significance into player experiences and apply innovative technologies. By implementing a "Games+" model, the Company aims to achieve mutual empowerment of cultural and industrialvalue,andtopromotethetraditionalChinesecultureacrosstheworld.Forexample,duringtheReportingPeriod,undertheguidanceoftheGuangdongProvincialDepartmentofAgricultureandRuralAffairs,theCompanyactivelyrespondedtothelycheeinitiativeunderthe“Hundred-Thousand-TenThousandProject”.Usingdigitalmethodstounlocktheculturalandcommercialpotentialoflychee-themedcontent,theCompanycreativelyincorporatedlycheeculturalelementsintogamessuchasTradingLegend(叫我大掌柜),BonkBonkTribe(时光大爆炸),MyMemoryShop(时光杂货店),andNobody'sAdventureChop-Chop(寻道大千),developingacrossovereditiontitled“YouLiQuanQiu(游荔全球)”.Byaggregatingin-gametraffic,theinitiativehelpedexpandsaleschannelsforlocallycheefarmers,enablingGuangdonglycheestoreachtheglobalstagethroughthe“Games+”digitalapproach.Furthermore, the Company actively explored the “Games+” integrated development model of“technology+culturaltourism”.TheCompanyhascombinedthevirtualcharacterandreal-worldculturaltourismscenariostofacilitatethepromotionofculturaltourismincitiessuchasGuangzhou.Forexample,duringtheReportingPeriod,theCompanydevelopedthedigitalproductMyIntangibleCulturalHeritageTreasure:ACulinaryJourney,whichpresentedtherepresentativetraditionalculinarycraftsmanship,suchaspoon choi (an auspicious one-pot dish served in a very big pot) and yum cha (Cantonese tradition of breakfastorbrunchinvolvingChineseteaanddimsum),throughengaginggameinteractionsandgraphical programming.Thisapproachsparkedinterestindiscoveringintangibleculturalheritagesandculturaldepth. Furthermore,atthe“Guangzhou:TheCapitalofGourmet”brandlauncheventorganizedbytheGuangzhou MunicipalAdministrationforMarketRegulation,theCompany’svirtual character,“CongMei”,becamethe brandambassador,showcasingthecharmofGuangzhou’sfoodcultureinalivelyandinteractivemanner andbringingthebrandstoryof“Guangzhou:TheCapitalofGourmet”tolife.As AI technology continues to mature, the development of games in sync with AI has becomeincreasingly prominent. Technological innovation in AI is increasingly seen as a key factor in the global competitivenessofproducts.TheCompanyadherestotechnology-driveninnovation,exploresthepotentialfordeepintegrationofAIandotheremergingtechnologieswithitsbusiness,andpromotesorganicinnovationcapabilities. In2025,theCompanybecameoneofthefirst“CityPartners”ofGuangzhouasadesignated“SuperPartner”, further deepening its collaboration with the local government and expanding partnershipopportunities to co-create a new blueprint for the development of Guangzhou’s digital economy. TheCompanywilllaunchaspecialversionofTradingLegend(叫我大掌柜)called“NationalGamesGuangzhou”and, relying on the in-house gaming-specific large language model “Xiao Qi”, apply generative AItechnologytoallowplayerstojointheCantoneseliondanceinthedigitaltwinofGuangzhou,experienceCantoneseyumchaculture,andexploreonlinereproductionsofculturallandmarkssuchastheFiveRamsStatueandChenClanAncestralHall.Playersfromaroundtheworldwillbeabletoenjoya“cloudtourofGuangzhou”fromtheirhomes.Additionally,theCompany’svirtualcharacter“CongMei”willactasasmartcityassistant,providingservicessuchasticketing,venueguides,andrecommendationsforculturaltourismattractionsinGuangzhouduringthe15thNationalGames. The Company has remained focused on its core business, deepened its "integration of R&D andoperation" strategy, and continued to enhance its capability of producing quality games. We explorepossibilitiesofintegratingtechnologyintoourbusinessbyleveragingresourcesbothwithinandoutsidetheentertainment technology domain. With steady strides, we have advanced high-quality and sustainablebusinessdevelopment,dedicatedtoofferingthepublicawealthofpremiumculturalcontent.(II)TheCompany’sprincipaloperationsandproducts The Company specializes in the development and publishing of games for global players, with theexcellentgamedevelopmentbrand“ThreeSevenGames”,aswellasprofessionalgamepublishingbrands“37Mobile”,“37GAMES”and“37Online”.TheCompanypreciselygraspedtheindustrydevelopmenttrends,madecontinuousimprovementsinoperation,andremainedatopperformerintheindustry,whileadheringto the "boutiqueization, diversification and globalization" strategy. For the Reporting Period, the Company recordedoperatingrevenueofRMB8.486billion,andanetprofitattributabletoitsshareholdersofRMB1.4 billion,aYoYincreaseof 10.72%.1.Continuouslyenhancingthelong-termoperationofdiverseproducts Inresponsetoindustrytrends,theCompanyhasconsistentlyadheredtothe"diversification"strategy, understandingthedemandsofdiverseuserbasesandcontinuouslyexpandingitsuserbase.Bytappinginto newmarketsandnurturingnewgrowthdrivers,wehavecontinuouslypushedbacktheboundariesofour gamegenres.Inadditiontodelvingintotheexistingfourprimarygenres:massivemultiplayeronlinerole playing games (MMORPGs), strategy games, gacha games, and business simulation games, we have developed more diverse and lightweight games to provide diversified player experiences. During the ReportingPeriod,theCompany’sgloballypublishedmobilegamesachievedpeakmonthlygrossbillingof approximatelyRMB2.2billion.Inearly2025,severaloftheCompany’sproducts,includingBonkBonkTribe(时光大爆炸)andLootbornWarriors(英雄没有闪),werelaunchedandquicklygainedpopularityamongplayers.Amongthem,thetimeprogressionsimulationgameBonkBonkTribe(时光大爆炸)achievedfirstplaceontheiOSfreeappchartuponitsreleaseinJanuary,anditssubsequentappletversionquicklyrankedfourthontheWeChatmini-gamebestsellerlist.Similarly,thevertical-screen,side-scrollingidleARPGlootergame,LootbornWarriors(英 雄没有闪),quicklyenteredthetopfiveontheiOSbestsellerlistafterthereleaseofitsappversion,anditsappletversionalsotoppedtheWeChatmini-gamebestsellerchart,demonstratingimpressiveperformance.InJuly2025,theCompanybeganpublictestingforTheSoulLand:LieHunShiJie( ),a斗罗大陆：猎魂世界 self-developedgamebasedonthenovelandanime,SoulLand,whichreceivedboththenovelandanimelicenses.Thisproduct,thefirst3DrealisticMMORPGbasedontheIP,theSoulLand,fullyimplementedtheCompany’sstrategyofboutiqueization,offeringasmoothexplorationexperienceinanexpansiveopenworld.ByblendingChineseandWesternartstyles,itshowcasestheinclusivenessanddiversityofChineseculture,andcreatesaSoulLanduniversewithculturalfusionacrosstimeandspace.Thegamehadgarneredovertenmillion pre-registrations before its launch and quickly ascended to the top of the iOS free app charts, performing excellently and becoming another benchmark for the Company’s deep involvement in theMMORPGsector. DuringtheReportingPeriod,theCompanycontinuedtostrengthenitsadvantageoflong-termoperation,withseveralofitsexistingproductsmaintainingstrongvitalityandpotential.Forexample,theChinese-stylesimulation game Nobody's Adventure Chop-Chop (寻道大千) achieved multiple breakthroughs in itscollaborativemodels,includingpartnershipswiththepopularChinesecomic—BattleThroughtheHeavens(斗 破苍穹)—andMeituanforanimmersiveconsumerexperience,collaborationwiththefantasyclassicIP,ShenMu(神墓),anddeepinvolvementintheWeifangInternationalKiteFestivaltoshowcasetraditionalculture.Duringitssecondanniversary,thegamepartneredwiththenationallypopularIP,CalabashBrothers(葫芦兄弟),focusingonuseroperationstoboostgamerevenue.Furthermore,thegamelaunchedalycheeaidprogramforfarmers,usingthegameasaplatformtofulfillcorporatesocialresponsibility.Throughthedeepintegrationof“classicIP+regionalculture+publicwelfareactions”,thegamesuccessfullyestablishedanewmodelforcross-sectorcollaborationinthegameecosystem. DuringtheReportingPeriod,theCompany’smodern-themedsimulationgameMyMemoryShop(时光杂货店)operatedsteadily.Byadaptingtomarkettrendsthroughcontinuousinnovationandbreakthroughs,thegameadoptedamoreflexiblego-to-marketstrategy.ItdevelopedamorecomprehensiveuserengagementmodelthroughIPcollaborations,publicwelfarecampaigns,andcitytours,suchascollaborationswithclassicfilmIPs,suchasAChineseOdyssey( )andintroducingacreativeworldviewof“ancientcharactersin大话西游 the modern world”. These efforts strengthened the consistency of online and offline content operations, effectivelyprolongingthegame’slifecycleandfurthersolidifyingtheCompany’slong-termoperationstrength inthebusinesssimulationgenre. During the Reporting Period, the Company’s self-developed gacha mobile game SoulLand: Clash ofSpirimasters(斗罗大陆：魂师对决)launchedthe“SpeedServer”concept,whichsignificantlyimprovedtheuserexperience by accelerating early-stage growth and enriching in-game rewards. It also initiated acollaboration with Cantonese culture, incorporating intangible cultural heritages such as CantoneseembroideryandCantoneseoperatohelppromotetraditionalChineseculturethroughitsimmersivegamepresentation.Thisencourageduserre-engagement,stabilizeddailyactiveusers,andfurtherprolongedthegame’slifecycle. DuringtheReportingPeriod,themobilegameFanRenXiuXianZhuan:RenJiePian(凡人修仙传：人界篇)launcheditsanniversaryversion“ShuangDaoGongRan”(双道共燃)inmid-2025.ThegamecollaboratedwithBattleThroughtheHeavens(斗破苍穹)tocreatea“Realm-BreakingDuel”cultivationconceptusingatrafficmanagement-centricapproach.ThishasnotonlyhelpedtheCompanyexpanditsactiveuserbasebuthasalsoallowedittocontinuouslyimprovethegame’secosystemandenrichplayers’experiences.ThegamehasthusbecomeaflagshipproductintheCompany’scultivation-themedMMORPGlineup.TradingLegend( ),aChinese-stylesimulationmobilegameoftheCompany,hassuccessfully叫我大掌柜 convertednewplayersthroughanengagingandnostalgicmarketingapproachandintellectualproperty(IP)collaborations.Bycreatingalong-termecosystemwithafocusonuserinteractions,thisgamehasconsistentlysparkedaboom.DuringtheReportingPeriod,thegamepartneredwiththeanimatedseriesTrueCookingMasterBoy(厨神小当家)tolaunchanewcookingmaster-themedevent,ensuringstablelong-termgrossbilling.Tocelebrateitsfourthanniversary,thegameheldaspeciallivestreamconcertwhereplayerswereinvitedtosing and celebrate together. Additionally, the anniversary update introduced a new “Guardian Spirit” progression system and long-term seasonal gameplay, further enhancing long-term player engagement,prolongingtheproductlifecycle,andreinforcingtheCompany’slong-termoperationcapabilities.DuringtheReportingPeriod,ThreeKingdom:BaYe(霸业),oneofourself-developedstrategymobilegamesonthethemeoftheThreeKingdoms,launcheditsS7seasonandintroducedanewdungeonmode,Treasure Hunt Path. To mark its second anniversary, the game also held an exclusive “June 6 Festival” celebration, releasing a tag-team hero, Ban Yu Shuang Shu, designed to enhance long-term gameplayexperienceandplayerretention.TheseeffortshavefurthercontributedtotheCompany’sexpertiseinlong-termoperationsofSLGgames. The Company consistently adheres to long-term operation, providing players with meticulous andcomprehensive long-term services. It deeply integrates the highlights of its intellectual property (IP) to continuously innovateintermsof reflow methodsand activities,consistently prolonging theproduct lifecycleandignitingproductvitality.ThisdemonstratestheCompany’sstrongcapabilitiesoflong-termgameoperation. 2. Continuously exploring global market opportunities, and promoting the mutual empowermentbetweengamesandculture DuringtheReportingPeriod,theCompanyachievedoverseasoperatingrevenueofRMB2.724billion,accountingfor32.10%ofitstotaloperatingrevenue.TheCompany,drawinguponitsyearsofexperienceinoverseasexpansion,hascontinuouslyexploreditsoverseasmarketsinlinewiththe"tailoredgames"strategy.Itcontinuedtoseekgrowthopportunitiesintheoverseasmarket,achievedregionalbreakthroughs,andcontinuedtorefineitslong-termoperationstrategy.WehaveconsolidatedourstrengthsinsectorssuchasMMORPGs,strategygames,gachagames,andbusinesssimulationgames,andopenedupopportunitiesinthecasualgamemarket,therebyboostingthesteadygrowthofouroverseasbusiness.Puzzles&Survival,aphenomenalproductlaunchedoverseasbytheCompany,integrates“Match-3gameplay+SLG”.DuringtheReportingPeriod,thegamecontinuedtodeepenitsglobalcontentstrategyandcollaboratedwiththegloballyrenownedIPTransformers.Throughhighlyfaithfulcharacterintegrationandoriginalstorylines,thegameenhanceditsworldviewandimmersionforplayers.Withfeaturessuchasmulti-dimensionalinteractivegameplayandmultilinguallocalization,thegameeffectivelyengagedglobalcoreusers,furtherenhancingitsbrandinfluenceandconsolidatingitspositionasagenreleader.Sinceitslaunchin2020,thegamehasgeneratedoverRMB10billioningrossbilling,demonstratingtheCompany’sstrongcapabilitiesinIPintegrationandlong-termoperation. TheCompanyhascontinuedtoexploreplayerpreferencesandmarkettrendswithinthestrategygamegenre to iterate high-quality products through theme diversification and gameplay differentiation. For example,themagicalmatch-3strategymobilegamePuzzles&Chaoshasattractedover15millionglobalplayerssinceitsofficiallaunch.DuringtheReportingPeriod,thegameintroducednewgameplayfeaturessuchastheDoom ArenaLeagueand PhantomExpedition,whichhavebeenwellreceived byplayersacrossvariousoverseasmarkets.Itsoverseasrevenuehascontinuedtogrow,andthegamehasrankedamongthetop20best-sellingstrategygamesinmorethan80regionsworldwide.The Company adheres to the roleof an“advocator of Chinese culture” and activelyexplores theintegrationofgames and culture.It creativelyincorporatestraditionalChineseculturalelements intoitsgameproducts,usinggamesasaglobalculturalmediumtoshowcasetheuniquecharmofChineseculturetotheworld.DuringtheReportingPeriod,theCompanywasrecognizedasa“KeyCulturalExportCompanyofChinafor2025-2026”,anditsgameTradingLegend( )wasselectedasa“KeyNationalCultural叫我大掌柜 ExportProjectofChinafor2025-2026”.Withitsengaginggameplayandstunningvisuals,thegamedeeplyintegratesChinesetraditionalculture,presentingtheprosperityofancientChinesecommercetoglobalplayers. The Company continues to seek a balance between Eastern aesthetics and global narratives,enablingChinesestoriestoreachglobalusersinamoreimpactfulwayandpositioninggamesasanewengineforculturalcommunicationandexchange. 3.Buildingarichproductpipelinefortheglobalmarket The Company focuses on its core gaming business. On one hand, it continuously expands theboundaries of self-development capabilities, actively expands into various categories, and developsproductswithaglobalperspective.Itcarefullyworksoutdetailsregardinggameplaydesign,artquality,musiceffects,etc.,continuestoinvestinproductiteration,userexperienceandotheraspects,andhasformed professional layouts in MMORPGs, strategy games and light games. Remaining "Dedicated toMakingPremiumGames",ithasastrongpipelineofrefinedself-developedmobilegames.Ontheotherhand,basedonitsself-developedbrands,theCompanyconsistentlyprioritizeshigh-qualitycontentasitsstrategicdirection.Throughmulti-dimensionalapproachessuchasinvestmentempowermentandbusinesssupport,theCompanyhascarriedoutin-depthcollaborationswithreputablegamedeveloperssuchasEyuGameandYanquNetwork.ThisapproachhasallowedtheCompanytoaccumulateabundantexternalR&D reserves, which is conducive to its diversified arrangements for product supply. In terms of IP, the CompanyhassecuredadaptationrightsforseveralIPsincludingBattleThroughtheHeavens( ),Lord斗破苍穹 ofMysteries(诡秘之主),andSoulLand(斗罗大陆),providingarichercontentfoundationforbuildingadiversifiedproductportfolio. TheCompanyhasbuiltaportfolioofgamesacrossgenressuchasMMORPGs,strategygames,gachagames, and business simulation games. These games cover diverse themes, including western fantasy,orientalfantasy,ThreeKingdoms,modernthemes,andancientthemes.Theseinclude:theJapaneseChibi-styleMMORPGCodeMLK(代号MLK),therealisticThreeKingdomsSLGQiMouSanGuo(奇谋三国),theAmericancartoon-stylesurvivalSLGCodeXSSLG( XSSLG),theorientalfantasySLGCodeGMSLG(代号 代号 GMSLG),thetraditionalChineseinkpainting-themedbusinesssimulationgameZhuiXu(赘婿),theorientalfantasyRPGCodeDouPo(代号斗破),andtheorientalfantasyRPGTheSoulLand:Zero(斗罗大陆：零).TheCompanyiscurrentlyacceleratingthereleasescheduleofitsreservedproducts,aimingtodeliveramore diversified gaming experience for players. Looking ahead, certain key games in the pipeline are presentedbelow: Intended Gamecategory,theme Developer Nameofgame publishing andstyle area Self- JapaneseChibi-style CodeMLK(代号MLK) Global developed MMORPG Self- RealisticThreeKingdoms QiMouSanGuo(奇谋三国) Global developed SLG Self- CodeGMSLG(代号GMSLG) OrientalfantasySLG Global developed Self- Americancartoonsurvival CodeXSSLG(代号XSSLG) Global developed SLG Self- CodeYCSLG(代号YCSLG) Survival-themedSLG Global developed Self- CodeDTSLG(代号DTSLG) Survival-themedSLG Global developed Self- CodeDLXD(代号DLXD) Chibi-stylefantasyRPG Global developed Self- CodeBDRPG(代号BDRPG) Chibi-stylefantasyRPG Global developed Agency CodeMiCheng(代号迷城) TowerdefenseSLG Domestic Agency CodeDouPo(代号斗破) OrientalfantasyRPG Domestic TraditionalChineseink Agency ZhuiXu(赘婿) painting-stylebusiness Domestic simulationgame WesternfantasyChibi-style Agency QiShiYuDaLong(骑士与大龙) Domestic gachagames Agency ShiShiDaLu(史诗大陆) WesternfantasyRPG Domestic 斗罗大陆：零 Agency TheSoulLand:Zero( ) OrientalfantasyRPG Domestic 斗兽战场 Agency DouShouZhanChang( ) Giant-themedSLG Domestic Agency CodeDPMMO(代号DPMMO) OrientalfantasyMMORPG Domestic 代号 Agency CodeRS( RS) RealisticsurvivalSLG Overseas 代号 Agency CodeAK( AK) RealisticmicroworldSLG Overseas Moderncartoonseaside Agency SeasideResort:Match3 resort-themedmatch-3 Overseas game Agency LootbornWarriors WesternfantasyRPG Overseas Agency DeathRouteSurvivor Survival-themedSLG Overseas 4.Leveragingcutting-edgetechnologicaladvantagesandbusinessapplications(1)Continuous upgrades to the AI capability system and the development of a comprehensiveAIempowermentecosystembasedonaself-developedindustry-specificlargelanguagemodelAsoneoftheearliestgamecompaniesinChinatosystematicallyadoptAItechnologies,theCompanyplacesahighstrategicemphasisonthedeploymentandapplicationofbigdataandAItechnologies.Afteryears of technological accumulation and business practice, the Company has established an AIarchitecture centered on the AI capability foundation, which covers the intelligent product layer and businessapplicationlayer,formingafull-linkAIempowermentsystemforgameR&Dandoperation.ThissystemcomprehensivelyenhancestheindustrializationleveloftheCompany’sgameR&Dandoperation.BuildingtheAIcapabilityfoundation:Basedondeepdataaccumulationfrombusinessscenariosandcomputilityinvestment,theCompanycontinuouslyconductsinternaltrainingandinferenceoptimizationonthemassive,high-qualitydataaccumulatedovertheyears,independentlydevelopingthegaming-specificlargelanguagemodel“XiaoQi”.TheCompany,using“XiaoQi”andincorporatinganadvancedexternallargelanguagemodelcluster,hasdevelopedmorethan40AIcapabilities.ThisAIcapabilityfoundationfullyempowersvariousgeneralandspecializedsystemsacrosstheCompany,followingthetechnologyiterationpathofchatbot/tool-copilot-agent-digitallabor. ContinuousupgradestotheAIcapabilitysystem:Basedontheindustry-specificlargelanguagemodel“XiaoQi”,theCompanyhasestablishedthe“XiaoQi”AIagentplatform.Thisplatformcoversbusinessareassuchas market analysis, product planning,art design,development assistance, advertising, operational analysis, intelligent customer service, and general office tasks. The upgraded AI agents can generate images,videos,and3DmaterialsthatmeettheCompany'sproductneeds,accuratelysupportadvertisingcampaigns,andperformexcellentlyincodegenerationandtextcreation,thusfullyempoweringgameR&Dandoperation.DuringtheReportingPeriod,theCompanycontinuouslyupgradedthecoreinterfaceandarchitecturesystemofthe“XiaoQi”AIagentplatform,anddevelopedmorevertical-domainAIagents.Subsequently,itplanstointroducemulti-agentcollaborationcapabilitiestosupportmorecomplexinternalcoordinationtasks. (2)AIreshapesthegamepipelineforqualityandefficiencyenhancementacrossmultipledimensionsAtthebusinessapplicationlayer,theCompanyhasleveragedAItechnologytoachieveintelligentproductionandapplicationacrossvariouscontentformats,includingAI-multimodal,AI-text,andAI-smartapplicationscategories. ConcerningtheAI-multimodalcategory,inthepublishingprocess,over80%ofthe2DartassetsusedbytheCompanyarenowgeneratedusingAItechnologyasasupport.DuringtheReportingPeriod,morethan500,0002Dimageswereproducedeachquarter.IntermsofAI-3Dgeneration,theCompanywasalsoanearlyadopteroftoolsand3Dmodeltraining,continuouslyincreasingtheproportionofAI-3Dapplications,withmatureuseofartassetssuchascharactersanditemmodels.AI-3Dassistedassetgenerationaccountsformorethan30%.IntheReportingPeriod,theeffectivenessofAI-generatedvideosbecameevident,withmorethan70%oftheCompany’sin-gameadvertisingvideosinvolvingAIintheirgeneration.Inaddition,AI-textapplicationscenariosoftheCompanyhaveshowncontinuousimprovement,whilecomprehensive applications such as AI advertising and AI data analysis have also been graduallyimplemented.Forexample,alloftheCompany’sgameshaveintegratedAI-poweredcustomerservicetooffermoreefficient,intelligentserviceexperiencestoplayers.AIlocalizationtranslationsnowcover85%oftheCompany’soverseasgamesin18languageswithanaccuracyrateof95%.IntermsoftheAI-smartapplicationscategory,AI-assistedcodegenerationhasalsobeenappliedtocodereview,eventcodegeneration,backendsystemcodegeneration,andautomatedtesting,improvingefficiencyby30%.Intermsofadvertising,adsplacedbyAInowaccountfor50%ofthetotaladcontent,increasing overall ad placement efficiency by 70%. The Company has also developed an AI-poweredmaterial infringement detection system to provide intelligent risk detection solutions for internal teams, ensuringefficientmaterialreview,effectivelyidentifyingexternalmaterialinfringementissues,protectingthe Company’sintellectualproperty,andsafeguardingoriginalcontentrights.IntermsofR&D,AIalgorithmshavebeenemployedtocapturehigh-precisionandhigh-performancemotions,andthecapturefunctionforfacialexpressionshasbeenintroduced,addressingthepainpointssuchashighcostsandoverlylongperiodstypicallyidentifiedwithspecializedtraditionalmotioncaptureequipment.ThishasenhancedbothR&Defficiencyandquality.IntermsofAIbalancetesting,manyofourself-developedproductssuchasSoulLand:ClashofSpirimasters(斗罗大陆：魂师对决),ThreeKingdom:BaYe( ),TheSoulLand:LieHunShiJie( ),andCodeMLK( MLK)havebenefitedfromthe霸业 斗罗大陆：猎魂世界 代号 AI-assistedstatbalancetestingfunctionwithimprovedtrainingefficiencyandaccessprocess,resultinginbetterplayerexperiencesandprolongedgamelifecycles.Furthermore,theCompanyhascontinuedtodeepenitsresearchinartisticresourcegenerationalgorithmsbasedonGenerativeAdversarialNetworks(GAN), Stable Diffusion (SD), and Neural Radiance Fields (NeRF). It has built an intelligent art asset generationplatformthatsupportsphysicalrenderingworkflows,anddevelopedfeaturessuchasanimationgenerationandmigration,aswellas3Dmodelgeneration,therebystreamliningthegamedevelopmentpipeline. Internally, the Company established an “AI Efficiency Committee” to implement a top-down, AIinnovation-drivencorporateculturestrategyandpromoteAIapplicationsinallbusinesslinks.TheCompanyplacesgreatimportanceoncultivatingAItalent,activelypromotingAIlearningamongemployeesthroughinnovative activities such as the “21-Day AI Learning Challenge” and “AI Expert Program” certification. These efforts aim to comprehensively enhance employees’ AI skills. In parallel, the Company hascontinuously expanded its AI-related job functions to build a robust talent pipeline that supports its AI strategy.Theultimategoalistodriveenterprise-wideinnovationthroughAIandinjectnewmomentumintoindustrydevelopment. Ingeneralofficescenarios,theCompany’sAIassistant,basedonthelargelanguagemodelof“XiaoQi”, isextensivelyappliedinemployees’dailywork,comprehensivelyimprovingefficiency.Thisrepresentsanewlevelofintelligenttransformationincorporateoperation.Forexample,basedonitslargemodelXiaoQi,theCompanyhasdevelopedanefficientmeetingminutesassistantcapableofaccuratelyrecordingandintelligentlyanalyzingmeetingcontent.Thishassignificantlyimprovedmeetingefficiencyandcollaborationquality,reducedcommunicationcosts,andoptimizedinformationmanagement.AstheCompanycontinuestopromoteAIapplications,AIreshapestheworkflowofeachbusinesslinkandimprovesthelevelofautomation.AsAItechnologiescontinuetodeepeninbusinessapplications,theoptimizationandupgradingofallbusinesspipelineshaveenabledteamstofocusmoreoncreativityandemotionalexpression.Withtheindustry’songoingtechnologicaliterationandinnovation,theCompanywillcontinuetoexploretheimplementationofadvancedAIcapabilitiesinreasoningand decision-making,providingdeepersupportandassistancefortheefficientoperationofallstagesofthegamingbusiness.(3)AIdrivesgameinnovations SupportingGameProjectInitiation:Duringtheearlystagesofgameprojectestablishmentandnew versionupdatesof operating products, the Companyutilizes AItechnology toassist indesigning game characters, combat scenarios, and game items. This optimizes characters, gameplay environments, animationeffects,andstyletestingoutcomes,therebyenhancingtheefficiencyofprojectapprovaland versionupdateprocesses. ExplorationoftheAI+GameTechnology:TheCompanycontinuestoimproveandoptimizetheinternal exploration of the "AI+game" technology, aiming to integrate multimodal content generation, data algorithm models and game development to improve R&D efficiency. At the same time, relying on AI generationandpersonalizedrecommendations,itaccuratelygraspsuserneeds,providesanewinteractive experience,andbuildskeytechnologyreservesforcommercialproductsinthefuture.Also,compliance capabilities are continuously strengthened to ensure the compliance and security of technology applications.Forexample,theCompanycontinuestoworkonusingAIGCtorecommendandgenerate player-preferredimages,elements,andgameplay,loweringthethresholdforcreationandenablingAI- poweredproductionofallgameelements,includingplot,art,programming,andmusic.Ontopofthat,the Companyisworkingonnon-lineargamingexperiencethroughdiscriminativeAI.Basedonuserpreferences, AIisusedtogeneratecontentforplayersinrealtime,realizinga“oneplayer,onenarrative”model.Development of a General AI Solution for In-Game Housing Systems: The Company is continuouslyintegrating technologies such as large language models, AI voice, and AI motion capture to developintelligentNPCsystemsandAI-poweredin-gamehousingsystems.ItisexploringtheconvergenceofgameswithUGCcontentcreation,aimingtoenableNPCstoperformautonomousbehaviorsbasedoncompoundreasoning,andtoprovideplayerswithemotionalcompanionshipandpersonalizedinteractiveexperiences.Playerscanenjoycharacterdevelopment,storyandscenedesign,itemcreation,andotherinnovativesocial interaction experiences within increasingly enriched housing systems, laying a technologicalfoundationformorediverseandpersonalizedgameplayinthefuture. TheCompanyisactivelyexploringinnovativeapplicationsofAIingaming.Atpresent,itcontinuestoaccumulate technological reserves for future AI game products through technological verification and capability accumulation, while building a capability foundation for the implementation of commercial productsinthefuture.Underthepremiseofensuredtechnologicalfeasibility,itexplorespathsfordeepintegrationbetweenAIandgamecontent,andfocusesonthepotentialofAIinenhancinggameplayandinteractiveexperience,withtheaimofdeliveringmoreimmersiveandpersonalizedgamingexperiencestousers. 5.EmpoweringbusinessinnovationandsustainabledevelopmentthroughinvestmentBenefitingfromourpioneeringstridesintheexplorationofAIapplications,wehaveremainedopen-minded about transformations inindustry technologies and ecosystems. We have insisted on a steadilyprogressive manner, continuously iterated and optimized innovative tools to align with the Company's businessdevelopment,anddeeplyintegratedadvancedtechnologiesandbusinessneeds.Theseeffortshavepromotedthelong-termdevelopmentoftheCompanyinthefieldofAI.InresponsetotherapiditerationofAItechnologiesandapplicationsworldwide,theCompanykeepspacewithtechnologicaltransformationtrends.ItinvestsinlargelanguagemodelsandapplicationlayersandcontinuallyexplorestheapplicabilityofthesemodelsandAItechnologiestotheCompany’sR&Dandoperationline.Specifically,theCompanyhas,directlyorindirectly,investedinleadingcompaniessuchasZhipuAI,MoonshotAI,BaichuanAI,aiXcoder,DeepLangAI,Yahaha,Studio51,andDeepMirrorTechnology.Supportedbyfoundationallargelanguagemodels,theCompanystrivestounlockthepotentialofAIGCtoempowerdiverseverticalscenarios.Furthermore,theCompanyisactivelybuildinganindustrialchainof“AI+computility”.Tothisend,ithasinvestedinfirmssuchasiStar,CIX,TingyuTech,Huixi,HYQ,andEeasyTech.These investments aim to build an integrated industrial chain that links computility infrastructure, large languagemodelalgorithms,and AIapplications,and promotethecoordinationandintegrationoftheinvestedbusinessesandtheCompany’sownbusinesses. TheCompanycontinuouslymonitorshardwareandtechnologicaladvancements,withastrongfocusonhard&coretechnology,andemphasizesbusinesssynergy.Ithasinvestedincultural,entertainment,andhigh-tech sectors, such as computility, optical displays, extended reality (“XR”) devices, cultural and entertainment content, semiconductors and materials, spatial computing engines, AI, new sensingtechnology,andAIGC-basedsocialplatformsforgames.TheCompany’sgoalistodrivebusinessinnovationthroughinvestments,therebyforgingcompetitiveedgesintheentertainmenttechnologysector.(III)TheCompany’sprincipaloperationsandbusinessmodels TheCompany isprincipally engaged inthedevelopment, publishing,and operationof onlinegames(mostlymobileandbrowsergames).ThebusinessmodelsoftheCompany’sonlinegamesmainlyincludeindependentoperationandthird-partyjointoperation. Under the independent operation mode, the Company obtains the licenses of games throughindependentR&Dorbeinganoperatorofothergames,andpublishesandoperatestheseproductsthroughits own or third-party channels. The Company is fully responsible for the operation, promotion andmaintenanceofthegames;providingunifiedmanagementservicesforonlinepromotion,onlinecustomerservice and top-up payment; and updating games along with game developersbased on the real-timefeedbackofusersandgames. Underthethird-partyjointoperationmode,theCompanycooperateswithoneormoregameoperatorsorgameapplicationplatformstojointlyoperategames.Andtheaforesaidpartiesareresponsibleforthemanagementoftheirownchannels,includingoperation,promotion,therechargeandchargesystem,whiletheCompanyprovidestechnicalsupportservicesalongwithgamedevelopers.(IV)TheCompany’spresenceonthemarketandprimarygrowthdrivers Focusingonculturalandcreativebusinessesbasedonthedevelopment,publishing,andoperationofonlinegames,theCompanyisacomprehensiveentertainmentproviderinChina’sA-stockmarket.ItisaKeyCultural Export Company ofChina, DemonstrationBasefor China’sCulturalIndustry, CivilizedInstitution in Guangdong Province, and Top 30 Cultural Enterprise of Guangzhou, and MSCI ESG AA-rated company,amongothers.With“bringingjoytotheworld”asitsmission,theCompanyisdedicatedtobecominganexcellent and sustainable entertainment provider. The Company has been steadily advancing with thedevelopmentstrategyof“boutiqueization,diversificationandglobalization”,andpromotinghigh-qualityand sustainabledevelopment. IICoreCompetitivenessAnalysis TheCompany’scorecompetitivenessremainedlargelythesameduringtheReportingPeriod.1.Forgingaheadwithdetermination,theteamhasseizedmarketopportunitiesswiftlyTheCompanyhasbeendeeplyengagedintheculturalandcreativeindustryformanyyears.Itscoremanagement team is deeply involved in the front line of business, working hard together with all the employees.Always upholding thespirit of marathon-like perseverance,theCompany has beenforgingaheadwithbreakthroughs,aswellaspursuingbetterfinancialresultsandfastergrowthwhilemaintainingsoundoperation.Overtheyears,theCompanyhasdemonstratedkeenmarketinsight,seizingemergingopportunities in the industry through a robust team of skilled professionals and scientific management mechanisms.Anticipatingthe"shiftfromwebgamestomobilegames"initsearlystages,theCompanyspearheadedoverseasmarketpenetrationoveradecadeago.Presently,weremainalignedwiththetrendtowards mini-games. Navigating numerous industry transitions, we have achieved sustained growth.Throughout the development, the Company has consistently emphasized talent cultivation and teambuilding.TheCompanyhasbuiltahigh-calibertalentpool.Throughascientifictalentpromotionmechanism,remunerationmanagementsystem,andperformanceincentivescheme,theCompanyinspiresemployeemotivationandcreativity.With"bringingjoytotheworld"asitsmission,theCompanyisadvancingtowardsthevisionof"becominganexcellentandsustainableentertainmentprovider".2.StrengthsintheintegrationofR&Dandoperationhavebeenconsolidated,enrichingtheproductportfolio TheCompanyhascontinuouslyadvanceditsstrategyof"integrationofR&Dandoperation",deepenedits diversified product portfolio, and established a robust and efficient multidimensional product supply system.First,theCompanyhasconsistentlypushedbacktheboundariesofitsself-developmentcapabilities,delvedintocoreproductcategories,andadoptedaglobalperspectivetocreateacentralsupplylayerwithself-developedproductsatthecore.Second,throughinvestmentempowermentandbusinesssupport,theCompanyhasfostereddeeperpartnershipswithnumeroushigh-qualitydevelopersbothdomesticallyand internationally, continuously accumulating deeply customized premium products. Third, bycollaboratingwithlong-termandstabledevelopers,theCompanyhasfurtherrefineditsproductofferings.Underthissupplysystem,theCompanyhasbuiltarobustproductsupplychain,continuouslyenrichedtheportfolioofhigh-qualityproductsanddrovesteadybusinessgrowth.Withthe“integrationofR&Dandoperation”model,theCompanycanfullycombineitsstrengthsinproductR&Dandoperation.This,ontheonehand,facilitatesadeeperunderstandingofthemarketanduserdemandsbytheR&Dteam,therebyincreasingthesuccessrateofproductsunderdevelopment.Ontheother,throughclosecollaborationbetweenR&Dandoperationsteams,theCompanycanoptimizetheupdatesandpromotionsofalreadylaunchedproducts,thuseffectivelyachievinglong-termoperationandprolongingproductlifecycles. 3. Publishing capabilities have been continuously iterated to facilitate long-term operation from aglobalperspective Inresponsetotheever-evolvingglobalgamingmarket,theCompanyadherestoastrategyof“tailoredgames”for overseas userswith diverseculturalbackgrounds, gaming preferences and payment habits.Tailoredpromotionandoperationstrategiesareadoptedfordifferentcountries,regionsandgametypes.The Companyfocuses onpublishing different genres of gamesindifferent regions,and localizes gamecontentandpromotionalmaterialstoreflecttheculturalcharacteristicsofeachregion.Overtheyears,theCompany'spublishingteamhassuccessfullylaunchednumerousqualitygamesacrossdiversegenresandthemes in global markets. During this journey, we have kept abreast of the latest market trends, and（未完）  |