[中报]三七互娱(002555):2026年半年度报告摘要（英文版）
原标题:三七互娱:2026年半年度报告摘要（英文版） NetworkTechnologyGroupCo.,Ltd. 2026InterimReport(Summary) August2026 PartIImportantNotes,TableofContentsandDefinitions TheBoardofDirectors(orthe“Board”)aswellasthedirectorsandseniormanagementof37Interactive Entertainment Network Technology Group Co., Ltd. (hereinafter referred to as the“Company”)herebyguaranteethetruthfulness,accuracyandcompletenessofthecontentsofthisReport,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein. Zeng Kaitian, the Company’s legal representative, and Ye Wei, the Company’s person-in-charge of accounting & head of the accounting department (accounting supervisor), herebyguaranteethatthefinancialstatementscarriedinthisReportaretruthful,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReport.TheBoardhasapprovedaninterimdividendplanasfollows:basedonthetotalissuedsharecapital(exclusiveofsharesintheCompany’saccountforrepurchasedshares)onthedateofrecord,a cash dividend of RMB1.00 (tax inclusive) per 10 shares is planned to be distributed to all theshareholdersoftheCompany,withnobonusissuefromeitherprofitorcapitalreserves.TableofContents PartIImportantNotes,TableofContentsandDefinitions..................................................................................................2 PartIICorporateInformationandKeyFinancialInformation..............................................................................................4 PartIIIManagementDiscussionandAnalysis......................................................................................................................7 PartIVGovernance,EnvironmentalandSocialInformation..............................................................................................26 PartVShareChangesandShareholderInformation..........................................................................................................31 PartVIFinancialStatements...............................................................................................................................................37 PartIICorporateInformationandKeyFinancialInformation ICorporateInformation
Indicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.□Yes?No
□Applicable?Notapplicable NodifferencefortheReportingPeriod. 2.NetProfitandEquityunderCASandForeignAccountingStandards □Applicable?Notapplicable NodifferencefortheReportingPeriod. VNon-recurringProfitsandLosses ?Applicable□Notapplicable Unit:RMB
NosuchcasesfortheReportingPeriod. Explanation of why the Company reclassifies as recurrent a non-recurring profits and losses item listed in the Explanatory AnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—Non-recurringProfitsand □Applicable?Notapplicable NosuchcasesfortheReportingPeriod. PartIIIManagementDiscussionandAnalysis IPrincipalOperationsoftheCompanyintheReportingPeriod (I)Industryreview 1.Steadygrowthinthescaleanduserbaseofthegameindustry AccordingtotheChina’sGameIndustryReportfromJanuarytoJune2026releasedbytheGamePublishingCommitteeofChina Audio-video and Digital Publishing Association (CADPA), during the first half of 2026, the actual sales revenue of the domesticgamingmarketreachedRMB188.45billion,representingayear-over-year(YoY)increaseof12.17%;andthenumberof gameusersinChinastoodat684million,aYoYincreaseof0.82%.Thegameindustryachievednotableexpansionwithsound developmentmomentum.Usershaveputforwardmorediversifieddemandsforcontent,gameplayexperienceandemotional value,drivingthecontinuousevolutionofgamestowardsegmentationanddifferentiation.FromJanuarytoJune2026,theself-developedgamesinChinageneratedUSD12.372billioninoverseasmarketrevenue,a YoY increase of 30.22%. The United States, Japan, and South Korea remained the primary target markets for Chinese mobile gamesabroad,withrespectivesharesof32.31%,14.05%and7.48%(53.84%intotal).Amongthetop100self-developedmobile gameswiththehighestoverseasrevenue,strategygames heldthelargestsharewithaslightYoYincrease.Mergegamesranked second with a notable YoY growth, emerging as one of the promising sub?segments. Role?playing games and shooting games cameinthirdandfourthrespectively,maintainingsteadyperformance.ForJanuary?June2026,theactualsalesrevenueofself?developedgamesinChina’sdomesticmarketreachedRMB163.356 billion,representingaYoYincreaseof16.31%,showingsoundgrowthmomentum.Ofthisamount,theactualsalesrevenueof themobilegamemarketstoodatRMB135.21billion,aYoYriseof7.9%.Amongthetop100mobilegamesrankedbyrevenue,role?playinggamesandstrategygamesstilltooktheleadingpositions,followedbyboard?and?cardgamesandgachagames. In addition, mini?games and lightweight games have maintained high user engagement. In the first half of this year, the revenue of domestic applet games amounted to RMB31.657 billion, a considerable YoY growth of 36.01%, serving as an importantdriverforindustry?widegrowth. In2026,drivenbypolicysupport,asoundecosystem,andtechnologicalinnovations,theChinesegameindustryshowssteady growth.Theindustryfocusesonthedevelopmentandinnovationofhigh-qualitygames,comprehensivelyenhancinggamequality whileacceleratingglobalexpansion.Theindustryscalecontinuestogrow,economicpotentialcontinuestobereleased,andstrong momentumforhigh-qualitydevelopmenthasbeeninjected. 2.Policiessteeringtheindustrytowardhigh?qualityandsounddevelopmentIn March 2026, the Outline of the 15th Five-Year Plan for Economic and Social Development of the People's Republic of Chinawasreleased.Itexplicitlyemphasizestheneedto“guideandregulatethehealthydevelopmentofonlineliterature,online games,andonlineaudiovisualcontent”andto“encourageculturalenterprisestoexpandinternationally,promotetheoverseas dissemination of high-quality online literature, games, films, animation, and premium exhibitions, and strengthen the constructionofinternationalcommunicationkeybasesandnationalculturalexportbases”,furthersupportingthehealthyand high-quality development of the industry. In April 2026, the State Council issued the Opinions on Expanding Capacity and Improving Quality of the Service Sector. It aims to expand capacity and improve quality of the service sector and foster high?qualityandefficientdevelopmentofservices.Ithighlightsprioritiesincluding“strengtheningthesupportingroleofscience and technology services, accelerating innovative development of software and information services, developing innovative models for culture?, tourism? and sports?related services, and steadily advancing opening?up and cooperation in the service sector”. Actively responding to the policy directives and complying with regulatory requirements, the Company keeps strengtheningitscapacitytodeliverqualitygames.Itexploreswaystointegrategameplayexperiencewithculturalattributesand deployinnovative technologies.Throughinternal?external resourcecollaboration inthecultural?entertainmentandtechnology sectors, the Company advances in?depth integration of games and culture, contributing to the global dissemination of fine traditionalChineseculture. In February 2026, the Cyberspace Administration of China (CAC) and seven other government departments issued the CircularonIssuingtheMeasuresforIdentifyingOnlinePlatformServiceProviderswithaMassiveMinorUserBaseandSignificant Influence onMinors.The documentaimstoscientificallydefinethescopeofonline platformserviceproviderswithamassive minor user base and significant influence on minors, further strengthen constraints and administration over enterprises, and enhance targeted protection for minors. The Company attaches high importance to minor protection. Its official proprietary platforms have fully prohibited users under the age of 18 from registering for game accounts. Additionally, the Company continues to refine and upgrade its minor?protection system. It has rolled out an upgraded version of the “Game Real?name Registration and Minor Anti?Addiction System”, revamped the existing “Parental Supervision Platform”, optimized customer?servicehandlingprocedures,andassistedguardiansininquiryandverification,soastofosterthehealthygrowthof minors. InApril2026,theStateAdministrationforMarketRegulation(SAMR)issuedtheCircularonDeepeningtheGovernanceof theInternetAdvertisingEcosystemandtheKeyTasksforRectifyingtheOrderoftheInternetAdvertisingMarket.Thedocuments aim to support overall online?ecosystem governance and foster high?quality development of the internet?advertising industry. TheCompanyhasbuiltafull?processcompliance?managementsystemcoveringgenerative?AI?poweredadvertisements,pop?up advertisementsandomni?channeladplacements.ForAI?generatedadvertisements,ithasestablishedmechanismsforcontent review,labelmanagementandfileretentiontodefineclearboundariesforintelligently?createdadcontent.Ithasstandardized controlrulesforpop?upadvertisements,optimizeduserinteractionforclosingfunctions,implementedtime?phasedcontrolsand differentiated blockingfor minors.Multi?level contentapproval procedures areenforced forad placements, anduser?targeted advertising is standardized. Both domestic and overseas advertisements operate in compliance with local regulatory requirements.Dynamiccontroloveradvertising?relatedrisksisachievedthroughregularcomplianceinspections. (II)TheCompany’sprincipaloperationsandproducts TheCompanyspecializesinthedevelopmentandpublishingofgamesforglobalplayers,withthegamedevelopmentbrand “ThreeSevenGames”,aswellasgamepublishingbrands“37Mobile”,“37GAMES”and“37Online”.FortheReportingPeriod,the Company recorded operating revenue of RMB7,275 million, a YoY decrease of 14.28%; and a net profit attributable to its shareholdersofRMB1,766million,aYoYincreaseof26.14%.DuringtheReportingPeriod,theCompany’stitlesincludingNobody'sAdventureChop-Chop(寻道大千),Puzzles&Survival, Survivefor33Days(生存33天),LastAsylum:Plague,Ragnarok:TheNewWorld(RO仙境传说：世界之旅),LootbornWarriors (英雄没有闪), My Memory Shop (时光杂货店), Puzzles & Chaos, Bonk Bonk Tribe (时光大爆炸) and SoulLand: Clash of Spirimasters(斗罗大陆：魂师对决)maintainedsoundoperatingperformance.TheCompany’speakglobalmonthlyactiveusers exceeded160million. Intermsofoverseasbusiness,theCompanycontinuedtobuildstrengthincorecategoriessuchasSLG,MMORPG,business simulation games, and casual games. It sought growth opportunities in overseas markets, and refined its long-term operation strategy.Thishasled tothe sounddevelopment ofitsoverseasbusiness.During theReportingPeriod, theCompanyachieved overseasoperatingrevenueofRMB3,021million,aYoYgrowthof10.90%,accountingfor41.53%ofitstotaloperatingrevenue. 1.Solidperformanceofnewgamesandbuildingaglobalmarket?orientedproductmatrixThe Company’s self?developed survival?themed RPG Survive for 33 Days (生存 33天) carried out a collaboration with GrandBuy Gold. It combined in?game online gameplay with offline promotions to create an integrated operation scenario. Meanwhile,theCompanypartneredwithJackieChanforaseriesofcommunicationcampaigns.Popularmass?marketelements wereincorporatedintoproductpromotion,whichenhancedbrandawarenessandwonpositivereviewsfromplayers. Drivenby dualmarketbreakthroughsfrombrandcollaborationandcelebrityendorsement,thetitle’sinfluencekeptexpanding.Itranked No.?1onboththeWeChatMini?GamesandDouyinMini?GamesbestsellerchartsthroughoutJanuary,andremainedamongthe topfiveonthebestsellerchartsofbothplatformsinthefirstquarter,demonstratingrobustmarketperformanceandhighuser engagement. The Company’s self?developed MMORPG Ragnarok: The New World (RO仙境传说：世界之旅)delivered solid market performancefollowingitsofficiallaunchinChina’sHongKong,MacaoandTaiwanregions.Uponrelease,itpeakedatNo.1on both the free chart and bestseller chart of major local app stores. The results demonstrated the Company’s comprehensive capabilitiesinlocalizedpublishing,useroperationandmonetizationconversionforclassic IPtitles,andreflectedthesustained userinfluenceandregionalmonetizationpotentialoftheIP.ThegameofficiallylaunchedinSoutheastAsiainJuly2026.Asoneof the markets where the IP boasts the strongest influence, Southeast Asia is expected to continuously unlock the IP value and furtherconsolidatetheCompany’sbusinesslayoutintheMMORPGsegment.The Company’s medieval-themed strategy game Last Asylum: Plague achieved coverage across 137countries and regions worldwide after its launch in 2026, supported by a mature publishing system, continuous content operation and strong monetizationperformance.ItmaintainedsolidperformanceinkeymarketsincludingtheUnitedStates,Europe,RussiaandSouth Korea,andranked16thonSensorTower’sJunerankingofrevenue-generatingChinesemobilegamesoverseas.ThetitleintroduceslightweightgameplaysuchasbusinesssimulationintoitscoreSLGframeworkasanentrypointforthe early-stageexperience,effectivelyenhancingnew users' senseofimmersionandplayability.Combined withthematureglobal userbaseformedievalandsurvival-themedcontentanditsdifferentiatedartpresentation,ithasdemonstratedstrongpotential inuseracquisitionefficiency,userretention,monetizationcapabilities,etc.Sincelaunch,thetitlerolledoutdiverseoperational activitiesincludingseasonalgameplayandtargetedfestiveevents.Itstotalregisteredusersexceeded15million,anditranked Top 9onSensorTower’sOverseas Revenue Growth Rankingfor Chinese MobileGames in July.In addition, thegame officially kicked off market expansion in China’s Hong Kong, Macao and Taiwan regions. The Company enlisted Ethan Juan as its brand ambassadorforpromotion,andthegameisexpectedtobecomeanotherlong-runningtitleintheCompany’sSLGsegment. During the Reporting Period, the Company’s new survival-themed SLG title Z Route: Redemption launched in overseas marketsandgaineduserrecognitionacrossmultipleoverseasmarkets.Itverifiedthereplicabilityoftheproductmodelof“hyper- casual gameplay for front-end user acquisition + mid-core SLG gameplay for back-end user retention” in diverse markets, emergingasanotherkeytitleintheCompany’sSLGsegment. In addition,multiple titles ofthe Company including Dreamweaving Garden (织梦森林), CritterRumble (爪爪大乱斗), HuangWuZhiXia(荒无之下),BattleThroughtheHeavens:MoQiShaoNianQiong(斗破：莫欺少年穷),TheSoulLand:Chuan Cheng(斗罗大陆：传承),BattleThroughtheHeavens:DouDiZhiLu(斗破苍穹：斗帝之路)andMyHeroicHusband(赘婿) were successively launched, further enriching the Company’s diversified genre portfolio. These titles are expected to continuouslyunlockvalueinrespectivesub-segmentsandbringincrementalgrowthtotheCompany’sgamingbusiness. Pipelinetitles: Guided by its strategic positioning of "boutiqueization, diversification and globalization" and centering on industry development trends and its core competitive advantages, on the one hand, the Company continued to deepen its strategic presence in the mini-game and lightweight game segments, continuously enriching game genres and innovating gameplay to consolidate its core competitive advantages; on the other hand, it focused on the development and global publishing of SLG, MMORPG, and business simulation games, among others, continuously increasing investment in innovation in core gameplay, long-termoperation,thedevelopmentoflocalizationcapabilities,etc.SetoutbelowaresomeoftheCompany’skeyupcomingpipelinetitles: Intended Sourceofgame Nameofgame Gamegenre,themeandartstyle publishingarea Self-developed CodeMLRPG(代号MLRPG) WesternfantasyRPG GlobalSelf-developed XiaoTouKuiDaMaoXian(小头盔大冒险) ChibifantasyRPG GlobalSelf-developed HuangMoShaZhou(荒漠沙舟) AmericancartoonsurvivalSLG GlobalSelf-developed CodeMRRPG(代号MRRPG) ChibisurvivalRPG Global Self-developed CodeYCSLG(代号YCSLG) SurvivalSLG Global Self-developed CodeKGSLG(代号KGSLG) MedievalSLG Global Self-developed CodeHope(代号Hope) SurvivalMerge Overseas Self-developed CodeFMR(代号FMR) RealisticfootballgachaSLG GlobalSelf-developed CodeFXCZB(代号FXCZB) OrientalXuanhuanRPG GlobalSelf-developed CodeYPBY(代号YPBY) Ancient-stylebusinesssimulation GlobalAgency TheSoulLand:Zero(斗罗大陆：零) OrientalXuanhuangachaRPG DomesticAgency MengHuiZhenHuanZhuan(梦回甄嬛传) Chibi ancient-stylecasual DomesticAgency CodeFX2(代号FX2) OrientalXuanhuanidleRPG Domestic Agency TheSoulLand:QiCheng(斗罗大陆：启程) OrientalXuanhuanidleRPG GlobalAgency CodeLD(代号LD) SurvivalSLG Global Agency CodeKCZM(代号KCZM) ThreeKingdomsSLG Domestic Agency CodeK5(代号K5) SurvivalSLG Overseas Agency CodeDream(代号Dream) Casualpuzzlematch-3 Overseas Agency CodeRiseMatch-3( Rise ) Casualpuzzlematch-3 Overseas 代号 三消 Agency CodeRVMatch-3(代号房车三消) Casualpuzzlematch-3 OverseasAgency CodeNovaMerge(代号Nova二合) Casualpuzzlemerge OverseasAgency CodeMatchCatch(代号MatchCatch) Casualpuzzlemerge Overseas2.Steadylong-termoperationandenhancedlong-termvalueviadiversifiedcollaborationsIn terms of the operation of mature titles, the Company prolonged product life cycles by continuously introducing new gameplayfeaturesandcross-bordercollaborations.Nobody'sAdventureChop-Chop(寻道大千), theCompany’sChinese-style casualcultivationgame,hasmaintaineditsvitalitythroughcontentiterationandcross-bordercollaborations.Thetitlehasrolled outinitiativesincludingaculturalandtourismcollaborationwithQuanzhouCity,acharityartexhibitionandanofflinecheck-in campaign.Leveragingmovietie-ins,long-cycleseasonaleventsandanniversary-themedcontent,itcontinuouslyincreaseduser activityandengagement,furtherenrichinglong-termplayerexperienceandstabilizinguserexpectations.TheCompany’sbreakoutglobaltitlePuzzles&Survival,whichintegratesMatch-3andSLGgameplay,hasbenefitedfromits maturepublishingsystem,continuouscontentoperationandstrongusermonetizationcapability.Thetitleisavailableacross171 regionsworldwideandhasmaintainedrelativelystablegrossbillingcontributionsyearsafterlaunch,consistentlyrankingamong thetopChinesemobilegamesbyoverseasrevenue.FromlaunchthroughtheendoftheReportingPeriod,thetitleamassedover 75 million cumulative global users, with total gross billing exceeding RMB16.8 billion. Leveraging the overseas market’s high receptivenesstoclassicIP,fantasythemesandracinggameplay,theCompanyrolledoutdiversein-gamecampaignsduringthe ReportingPeriod, includingTransformerstie-incontent,dragon-themedupdatesandracing-themedversions.Whilepreserving the core gameplay experience, the Company continuously enriched the depth of game content and visual presentation to enhanceplayers’senseofnoveltyandengagement. TheCompany’sidleARPGtitleLootbornWarriors(英雄没有闪)hasincreaseduserretentionandengagementcontinuously through classexpansion, systemupdatesandseasonal operation.Thisyear, itrolledoutnewcontentincludingthebrand-new class"ShadowRanger",SpringFestivalevents,thefirst-anniversarycelebrationandthemountsystem,andlaunchedSeasonS2 "FourHorsemenoftheApocalypse",drivinggrowthinnewuserandoverallmetricsandfurtherconsolidatingitscoreuserbase. TheCompany’smodern-themedbusinesssimulationmobiletitleMyMemoryShop(时光杂货店)haskeptinnovatingandmakingbreakthroughsinresponsetomarketshifts.Ithasbuiltamorecomprehensiveuseroperationframeworkviaintegrated marketing,publicwelfarecollaborationsandcitytouractivities.Centeredon"digitalforgood",thetitlecontinuouslyexploresthe integrationofgameplaywithpovertyalleviationforagricultureandculturalinheritance.DuringtheReportingPeriod,thegame rolled out an agricultural support program featuring "grow tea trees online, obtain premium tea offline", helping expand communication and consumption scenarios for ancient tree black tea from Fengqing County, Yunnan Province. Meanwhile, it launchedacultural-themedversionthemedon“TheThirteen?HongsofGuangzhou”aswellasanAIpublicwelfarepromotional videoofthesametheme.ItshowcasescommercialcultureandtheLingnanMaritimeSilkRoadspiritinadigitalmanner,further elevatingthetitle’sculturalinfluenceandbrandvalue. The Company’s time progression business simulation game Bonk Bonk Tribe (时光大爆炸) leveraged its differentiated theme and lightweight simulationexperience torapidly attractusers, topping thefree chartsupon its launch.Onthe WeChat Mini-Games platform, it ranked within the top three for popularity and top four for bestsellers, earning the “2025Innovative BreakthroughMini-Game”awardandfrequentlyappearingonsubcategorycharts.Overtime,ithasbecomeakeyadditiontothe Company’sportfolioofemergingproducts. DuringtheReportingPeriod,theCompany’sself-developedgachamobiletitleSoulLand:ClashofSpirimasters(斗罗大陆： 魂师对决)continuouslydelivered freshgameplayexperiencesforplayersthroughanniversarycampaigns,regularlaunchesof newcharactersandcontent,aswellascontentexpansionsfeaturingnewdevelopmentsintheDivineRealm.Itmaintainedthe activityofcore users viacompetition systemssuchas the Spirimasters Championship League.In itsfifth year post-launch,the title still delivered relatively steady gross billing performance, which demonstrates the Company’s capability in the long-term operationofIP-basedmobilegames. TheCompany’sfantasy-themedMatch-3strategymobiletitlePuzzles&Chaoshasmaintainedsolidgrowthmomentumin the global market with its integrated Match-3 and SLG gameplay and differentiated positioning centered on Western fantasy themes. It has been launched in more than 80countries and regions worldwide, rankingamong the top 20 on strategygame grossingchartsacrossmultiplemarkets.ThetitleconsistentlyleadsthelistofnewlylaunchedoverseasWesternfantasySLGtitles andstayswithinthetop50intheannualrankingofstrategymobilegamesgoingglobal.Sincelaunch,itsoverseasrevenuehas keptrising,andthevolumeofnewusershashitrecordhighsonmultipleoccasions.The Company remains committed to inheriting and promoting China's outstanding traditional culture, actively exploring ways to integrate games with cultural development. Throughout product development and operations, it keeps incorporating Chinese cultural elements into gameplay and narrative systems. It promotes Chinese culture into overseas markets in a more interactive and communicative manner, aimed at demonstrating the unique connotations and contemporary value of Chinese culture. Inthefirsthalfof2026,threeoftheCompany’stitles,namelyNobody'sAdventureChop-Chop(寻道大千),BonkBonkTribe (时光大爆炸)andTradingLegend(叫我大掌柜),collaboratedwithQuanzhoucultural?tourismauthoritiesonthe"Hair?Flower New Year, Lucky Quanzhou Tour" campaign. Centered on the Spring?Festival?themed blessing concept, the integration of intangible?cultural?heritage and world?heritage elements such as Xunpu hair?flower headdresses and Nanyin music was embedded into in?game content. An immersive offline check?in event “Lucky Quanzhou Tour Office” was set up, connecting iconic Quanzhou scenic spots including Kaiyuan Temple, Xunpu Village and West Street. Through online digital presentation coupled with offline scenario?based collaborations, the initiative further expands the integration boundary of “Game + Cultural?Tourism”,helpingQuanzhouCity’sworld?heritagecultureandurbancultural?tourismbrandreachabroaderyoung?user audience. 3.Leveragingcutting-edgetechnologicaladvantagesandbusinessapplications(1) BuildingasustainableAIcapabilitysystemandcontinuouslyunlockingcorebusinessvalueThe Company places a high emphasis on the deployment and application of big data and AI technologies. After years of technologicalaccumulationandbusinesspractices,theCompanyhasestablishedanAIarchitecturecenteredontheAIcapability foundation, which covers theintelligentproduct layerand businessapplicationlayer, forming anend-to-end AIempowerment systemforgameR&Dandoperation. Intermsofbusinessapplication,theCompanyadvancesAIintegrationintogameR&Dandoperationprocedurestobuildan AI?empowerment system covering the full chain of game R&D and operation. Leveraging AI technologies, the Company has realizedintelligentproductionanddeploymentofdiversecontentformsincludingAI?text,AI?multimodalandAI?comprehensive application categories. Over 80% of the Company’s 2D art assets are AI?aided generated, with more than 500,000 assets producedinasinglequarter.TheproportionofAI?3D?aidedassetgenerationexceeds30%;morethan70%ofadcreativevideos deeply involve AI generation, and AI?driven automated ad placement accounts for over 50%. AI?powered localized translation coversalloftheCompany’soverseastitlesacross18languages,withapeakaccuracyrateof95%.Intelligentcustomerservicehas beendeployedacrossalltitles,boastingan80%resolutionaccuracyrate.Intermsofcapabilitydevelopment,theCompanytakes“XiaoQi”,itsself?developedgame?verticallargemodel,asitscore base. It also integrates mainstream external models and tool ecosystems, and has built an enterprise?grade intelligent knowledge?base platform "Zhi Qi" (知七), a multi?agent development platform "Zhiqi" (智七) as well as the “Xiao Qi Agent Platform”.As ofthe end ofthe ReportingPeriod, the“Xiao QiAgent Platform”hasaccumulated more than70AIcapabilities, integratedover240modelsandAItools,andhousedmorethan600self?developedagents.Itcoversbusinessdomainsincluding market analysis, game project initiation, art design, development assistance, ad placement, operation analysis, intelligent customerserviceandgeneral?purposeofficework,enablingAItoserveassystematicproductivityspanningthefullworkflowof R&D,operationandmanagement. In terms oforganizational support, theCompanyleveragesmechanismsincluding theAIEfficiencyCommittee, the AILab andtheSuperProfessionalTeam(SPT)tocoordinatetheimplementationofstrategies,platformdevelopmentandcutting?edge exploration,sothatAIcanbetterservebusinessdevelopment.DuringtheReportingPeriod,thecallvolumeandactivitylevelof the Company’s“XiaoQiAgentPlatform”increasedmarkedly.AIapplications havepenetratedemployees’ dailyworkscenarios and continuously reshaped core?business workflows for games, effectively lifting organizational efficiency, operational intelligence and overall work quality and efficiency. This allows teams to focus more on creativity, innovation and emotional expression. (2)Exploring“AI+Game”integrationandextendingdiversifiedvalueTheCompanycontinuestoexploretheapplicationoftechnologiesinR&Defficiencyimprovement,contentgenerationand personalized user experiences under the “AI + Game” framework. On one hand, the Company leverages AI technologies to supportpreliminarydesigntasksincludingcharacter,scene,propandmotion?effectcreationaswellasstyletesting,improving efficiency for game project initiation and version updates. On the other hand, through the internally incubated AI?powered mini?game Ming Yue Gong Xin (明月宫心), the Company explores how generative AI reconstructs game?content production workflows. Its sequel Ming Yue Gong Xin II (明月宫心贰) validates the feasibility of AI?driven non?linear content and “personalized?for?each?user”gamingexperiences.Meanwhile,theCompanyhasrolledoutacorporate?culturestrategyoriented toward AI?driven innovation.Through internal initiatives such as the Micro?Innovation Contest, ithas built an enterprise?wide incubationplatformforgaming-relatedinnovation.TheCompanyencouragesemployeestotapintotheapplicationpotentialof AIincontent generationandpersonalizedinteraction, unlockingcreativityin areas includinggameplaymechanics, AI?powered interactiveexperiencesandindependentprototypes.ItplacesgreatimportanceoncultivatingAItalent.Innovativeactivitiessuch as the “21-Day AI Learning Challenge”, “Open Classes on AI”, and “AI Expert Program” certification have been carried out to comprehensivelyenhanceemployees’AIskills.Inparallel,theCompanyhascontinuouslyexpandeditsAI-relatedjobfunctionsto buildarobusttalentpipelinethatsupportsitsAIstrategy. Building on its solid core game?business foundation, the Company continues to explore broader application values of AI beyond games, extendingits AIcapabilities fromcontentproduction andenterprise?levelservices to social?value creation.For instance,theCompanyhaslaunched“LingChaCha”,anintegratedserviceplatformforenterprise?orientedcopyrightprotection and brand?content insights. It delivers functions including brand reputation monitoring, communication analysis and infringement?riskidentification,providingdigital?asset?protectionservicesforenterprisesincultural?entertainment,e?commerce, technology and other sectors. During the Reporting Period, the Company also rolled out “Ling Xu Xu”, an AI?powered video?creationplatformcoveringkeylinkssuchastextauthoring,contentdeconstruction,assetmanagement,videogeneration and video editing and final rendering. It can effectively improve the production efficiency of video content and standardized delivery capabilities. In the healthcare sector, the Company has collaborated with Zhujiang Hospital of Southern Medical UniversitytoexploregamifiedapplicationsforAlzheimer'scognitivetraining.BycombiningAIwithinteractivegamedesign,the collaboration seeks to develop supportive training solutions for individuals with cognitive impairments, demonstrating a multifacetedapproachtoleveragingAIandgamesforsocialimpact. (3)Technologyecosystemandinvestmentstrategyfocusedonlong-termcompetitivenessThe Company adheres to an investment strategy guided by "core business synergy + strategic positioning in frontier technologies".Ononehand,itsinvestmentstargetinnovativeentitiesthatcanformeffectivesynergieswithitsgameR&Dand operationandsupportthedevelopmentofitscorebusiness;ontheotherhand,itfocusesonfrontiertechnologiesalignedwith thenational15thFive?YearPlanaswellasfeaturinghighpotentialgrowthratesandbroadgrowthspace,andsteadilyadvances technology capability building and forward-looking strategic positioning. In recent years, focusing on the upstream and downstreamsegmentsofitscoreindustrialchainsofculturalandentertainmenttechnology,human-computerinteraction,and artificial intelligence, the Company has invested, directly or indirectly, in a number of innovative enterprises. The portfolio includesZhipuAI,MoonshotAI,BaichuanAI,AIsphere,Luxvisions,TsingMicro,LuminX,HYQ,Huixi,BrainCo,iStar,andRayNeo. The Company explores the adaptive application of technologies from invested enterprises in the game R&D and operation pipeline,andcontinuouslyempowersbusinessinnovationandtechnologicalcapacityexpansionthroughstrategicinvestments. (III)TheCompany’sprincipaloperationsandbusinessmodels The Company is principally engaged in the development, publishing, and operation of online games (mostly mobile and browsergames).ThebusinessmodelsoftheCompany’sonlinegamesmainlyincludeindependentoperationandthird-partyjoint operation. Undertheindependentoperationmodel,theCompanyobtainsthelicensesofgamesthroughindependentR&Dorbeinganoperatorofothergames,andpublishesandoperatestheseproductsthroughitsownorthird-partychannels.TheCompanyisfully responsible for the operation, promotion and maintenance of the games; providing unified management services for online promotion,onlinecustomerserviceandtop-uppayment;andupdatinggamesalongwithgamedevelopersbasedonthereal-time feedbackofusersandgames. Underthethird-partyjointoperationmodel,theCompanycooperateswithoneormoregameoperatorsorgameapplication platformstojointlyoperategames.Andtheaforesaidpartiesareresponsibleforthemanagementoftheirownchannels,including operation, promotion,therechargeandchargesystem,whiletheCompanyprovidestechnicalsupportservices alongwithgame developers. (IV)TheCompany’spresenceonthemarketandprimarygrowthdrivers Focusing on cultural and creative businesses based on the development, publishing, and operation of online games, the Company is a comprehensive entertainment provider in China’s A-stock market. It is a Key Cultural Export Company of China, Demonstration Base for China’s Cultural Industry, Civilized Institution in Guangdong Province, Top 30 Cultural Enterprise of Guangzhou, and Guangzhou City Partner, among others. In 2025, the Company has risen to No. 17 on a list of China’s top 100 internet companies. It has been steadily advancing with the development strategy of “boutiqueization, diversification and globalization”, and promoting high-quality and sustainable development. With “bringing joy to the world” as its mission, the Companyisdedicatedtobecominganexcellentandsustainableentertainmentprovider.IICoreCompetitivenessAnalysis TheCompany’scorecompetitivenessremainedlargelythesameduringtheReportingPeriod.1.Astableteamandanefficientmanagementmechanism,bolsteringtheCompany’soperationalresilienceTheCompanyhasbeendeeplyengagedintheculturalandcreativeindustryformanyyears.Itscoremanagementteamisdeeplyinvolvedinthefrontlineofbusiness,workinghardtogetherwithalltheemployees.Guidedbytheenduringmarathon spiritacrosstheentireorganization,theCompanymaintainsthestableoperationofitsexistingbusinessmodel.Centeringonkey productsandcorebusinesses,itadvancesoperationalinitiativestoimproveoperationalefficiencyandmarketresponsiveness. Againstthebackdropofanevolvingindustrylandscape,theCompanyleveragesitscorecompetitivestrengthsandkeepsaclose eyeon emergingmarketopportunities.It pursues strategicbusinesslayoutupon prudentevaluation. Empoweredbyarobust team and ascientific managementmechanism, the Company seizes market opportunities and has achieved sustained growth amid multipleindustrytransitions.In the courseof development, theCompanyhas established asound and efficientinternal managementmechanismandconsistentlyprioritizedtalentcultivationandteambuilding.Byvirtueofawell-roundedpromotion mechanism, remuneration management system and performance incentive framework, the Company stimulates employees’ enthusiasmandcreativity,furtherstrengthensoperationalresilience,andadvancesallbusinesslinesinasteadymanner. 2.IntegrationofR&Dandoperationforcoordinateddevelopment,fosteringadiversifiedproductportfolioThe Company has continuously advanced its strategy of "integration of R&D and operation", deepened its diversified product portfolio, and established a multidimensional product portfolio. First, the Company continuously expands its self- developmentcapabilitiesandstrengthensitsfootholdincoregenretracks.LeveragingitsprovenIP?adaptationmethodologyand systematically integrating the three elements for non?IP themes — “theme packaging, prototype gameplay and long?period commercial models”, it advances the development of key products from a global perspective. This has cultivated a product portfoliowithself-developedofferingsasacorecomponent.Second,throughinvestmentempowermentandbusinesssupport, theCompanyhasmaintainedlong-termpartnershipswithnumerousdevelopersforyears,andcontinuouslybuiltupaportfolio ofhigh-quality,deeplycustomizedproducts.Third,bycooperatingwithdeveloperswithlong-termandstablepartnerships,the Company further supplements and optimizes its product portfolio. Under the above-mentioned models, the stability and diversity of the Company’s product portfolio have been steadily enhanced, forming a diversified and well-rounded product portfolioanddrivingthesustainablegrowthoftheCompany’sbusiness.Underthe“integrationofR&Dandoperation”model,theCompanystrengthenscollaborationbetweenR&Dandoperation arms. Leveraging feedback on market and user demands from the operation side, it supports the R&D team in optimizing product design. Meanwhile, close cooperation between the R&D and operationteams enables timely adjustments tocontent updatesandoperationalstrategiesforlaunchedproducts,enhancingsustainedoperationcapacityandenablingmoreeffective long-termoperations. 3.Publishingcapabilitieshavebeencontinuouslyiteratedtofacilitatelong-termoperationfromaglobalperspective Inresponsetotheever-evolvingglobalgamingmarket,theCompanyadherestoastrategyof“tailoredgames”foroverseas userswithdiverseculturalbackgrounds,gamingpreferencesandpaymenthabits.Tailoredpromotionandoperationstrategies areadoptedfordifferentcountries,regionsandgametypes.TheCompanyfocusesonpublishingdifferentgenresofgamesin different regions, and localizes game content and promotional materials to reflect the cultural characteristics of each region. Overtheyears,theCompany'spublishingteamhaslaunchedandoperatednumerousgamesacrossdiversegenresandthemes inglobalmarkets.Inthisprocess,theCompanyexploresinnovativemarketingapproachesandpromotionpathwaysinresponse to market changes. It adopts a variety of creative marketing strategies, such as renowned IP collaboration, celebrity endorsementandsituationalpresentation,buildsalong-termecosystemcenteredonusersocialinteraction,andcontinuously iteratesitspublishingcapability. 4.Technology-driveninnovationandbreakthroughstoembraceindustrytransformationPrioritizinginnovation,theCompanyfostersanopenandinclusiveenvironmentforinnovativeexchanges.Itkeepsaclose watchontheapplicationofemergingtechnologiesingameR&Dandoperation.Basedonactualbusinessneeds,theCompany applies big data, artificial intelligenceand other technologies tomultiple links including projectinitiation, content production, publishing and operation, as well as data asset management. Over the years, by continuously iterating and optimizing smart products across the entire R&D and operation chain, the Company has upgraded its game industrial pipeline and improved overall R&D and operational efficiency. In addition, the Company closely monitors development trends in the upstream and downstreamsegmentsofitscoreindustrialchainsofculturalandentertainmenttechnology,human-computerinteraction,and artificial intelligence. It explores opportunities for technological transformation and business synergy through strategic investment, supports thecontinuousexpansion ofapplicationscenarios fornew technologies,promotesresourcesharingand complementaryadvantages,andgraduallybuildsawin-winecosystem.IIIAnalysisofPrincipalOperations Overview Seecontentsundertheheading“IPrincipalOperationsoftheCompanyintheReportingPeriod”.Year-over-yearchangesinkeyfinancialdata: Unit:RMB
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