37 Interactive Entertainment FY2025 Annual Report

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37 Interactive Entertainment
Network Technology Group Co., Ltd.
2025 Annual Report (Summary)
April 2026

Should there be any discrepancy between the English version and the Chinese version of this Report, the Chinese version shall prevail.
2
Part IImportant Notes, Table of Contents and Definitions
The Board of Directors (or the “Board ”) as well as the directors and senior
management of 37 Interactive Entertainment Network Technology Group Co., Ltd.
(hereinafter referred to as the “Company ”) hereby guarantee the truthfulness,
accuracy and completeness of the contents of this Report, and shall be jointly and
severally liable for any misrepresentations, misleading statements or material
omissions therein.
Zeng Kaitian, the Company ’s legal representative, and Ye Wei, the
Company ’s person-in-charge of accounting & head of the accounting
department ,hereby guarantee that the financial statements carried in this Report
are truthful, accurate and complete.
All the Company ’sdirectors have attended the Board meeting for the review
of this Report.
Any plans and other forward-looking statements in this Report shall not be
deemed as promises to investors. Investors and other stakeholders shall be fully
aware of the risk and understand the difference between plans, forecasts and
promises. Most of these forward-looking contents can be found in “XI Prospects ”of
“Part III Management Discussion and Analysis ”herein.
The Company is subject to the disclosure requirements for listed companies
engaged in software and IT services.
The Board has approved a final dividend plan as follows: based on the total
issued share capital (exclusive of shares in the Company ’s account for
repurchased shares) on the date of record, a cash dividend of RMB4.00 (tax
inclusive) per 10 shares is planned to be distributed to all the shareholders of the
Company, with no bonus issue from either profit or capital reserves.

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Table of Contents
Part IImportant Notes, Table of Contents and Definitions ………………………………………………………………………. 2
Part IICorporate Information and Key Financial Information …………………………………………………………………. 4
Part IIIManagement Discussion and Analysis …………………………………………………………………………………………… 8
Part IV Governance, Environmental and Social Information ………………………………………………………………… 36
Part VShare Changes and Shareholder Information …………………………………………………………………………….. 59
Part VI Financial Statements …………………………………………………………………………………………………………………….. 67

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Part II Corporate Information and Key Financial Information
ICorporate Information
Stock name 37 Interactive Entertainment Stock code 002555
Place of listing Shenzhen Stock Exchange
Company name in
Chinese 三七互娱网络科技集团股份有限公司
Abbr. 三七互娱
Company name in
English (if any) 37 INTERACTIVE ENTERTAINMENT NETWORK TECHNOLOGY GROUP CO.,LTD.
Legal representative Zeng Kaitian
Registered address Room 7001, 7/F, Tower B1, Wanjiang Fortune Plaza, 88 Ruixiang Road, Wuhu City,
Anhui Province
Zip code 241000
Change of registered
address
For business development purposes, the registered address of the Company has
changed from “11/F, Creative Advertising Complex, Wuhu Advertising Industrial
Park, Middle Beijing Road, Jiujiang District, Wuhu City, Anhui Province ”to “Room
7001, 7/F, Tower B1, Wanjiang Fortune Plaza, 88 Ruixiang Road, Wuhu City, Anhui
Province ”on 31 March 2022.
Office address Room 7001, 7/F, Tower B1, Wanjiang Fortune Plaza, 88 Ruixiang Road, Wuhu City,
Anhui Province
Zip code 241000
Company website https://www.37wan.net/
Email address ir@37.com
IIContact Information
Board Secretary Securities Affairs Representative
Name Wang Sijie Wang Sijie
Office address
Room 7001, 7/F, Tower B1, Wanjiang
Fortune Plaza, 88 Ruixiang Road,
Wuhu City, Anhui Province
Room 7001, 7/F, Tower B1, Wanjiang
Fortune Plaza, 88 Ruixiang Road,
Wuhu City, Anhui Province
Tel. 0553-7653737 0553-7653737
Fax 0553-7653737 0553-7653737
Email address ir@37.com ir@37.com
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report is
disclosed
China Securities Journal, Shanghai Securities News, Securities
Times, and Securities Daily
Media and website where this Report is
disclosed http://www.cninfo.com.cn
Place where this Report islodged Room 7001, 7/F, Tower B1, Wanjiang Fortune Plaza, 88 Ruixiang
Road, Wuhu City, Anhui Province

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IV Change to Company Registered Information
Unified social credit code 91340200713927789U
Changes to the principal activities
of the Company since going public
(if any)
No changes inthe Reporting Period
Every change of controlling
shareholder since incorporation (if
any)
No changes inthe Reporting Period
V Other Information
The independent auditor hired by the Company:
Name Huaxing Certified Public Accountants LLP
Office address 7-9/F, Tower B, Zhongshan Building, 152 Hudong Road, Gulou District, Fuzhou
City, Fujian Province
Accountants writing
signatures Zhang Fengbo and Gao Yunjun
The independent sponsor hired by the Company to exercise constant supervision over the Company in the
Reporting Period:
 Applicable □Not applicable
Name Office address Representative Period of supervision
Orient Securities
Company Limited
Orient Securities Building,
No. 119 South
Zhongshan Road,
Huangpu District,
Shanghai
Wang Bin and Wang
Dehui
From 10 March 2021 until
the proceeds of the
private placement are
used up
The financial advisor hired by the Company to exercise constant supervision over the Company in the
Reporting Period:
□Applicable  Not applicable
VI Key Financial Information
Indicate by tick mark whether there isany retrospectively restated datum inthe table below.
□Yes  No
2025 2024 2025-over-2024
change (%) 2023
Operating revenue
(RMB)
15,965,709,257.7
3 17,440,957,495.58 -8.46% 16,546,871,737.85
Net profit attributable
to the Listed
Company ’s
shareholders (RMB)
2,900,228,102.32 2,673,021,327.30 8.50% 2,658,570,193.44
Net profit attributable
to the Listed
Company ’s
shareholders after
2,845,358,422.20 2,591,270,839.95 9.81% 2,497,299,725.79

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deducting non-
recurring profits and
losses (RMB)
Net cash flows from
operating activities
(RMB)
3,538,334,677.62 2,997,982,682.73 18.02% 3,147,037,336.46
Basic earnings per
share (RMB/share) 1.32 1.21 9.09% 1.20
Diluted earnings per
share (RMB/share) 1.32 1.21 9.09% 1.20
Weighted average
return on equity (%) 21.73% 20.58% 1.15% 20.83%
December 31,
2025 December 31, 2024
Change of
December 31, 2025
over December 31,
2024 (%)
December 31, 2023
Total assets (RMB) 22,315,257,868.1
4 19,582,691,938.40 13.95% 19,134,551,079.36
Equity attributable to
the Listed Company ’s
shareholders (RMB)
13,534,207,976.0
9 12,920,729,844.38 4.75% 12,706,945,475.87
Indicate by tick mark whether the lower of the net profit attributable to the Listed Company ’sshareholders
before and after deducting non-recurring profits and losses was negative for the last three accounting years,
and the latest independent auditor ’sreport indicated that there was uncertainty about the Company ’s
ability to continue as agoing concern.
□Yes  No
Indicate by tick mark whether the lowest of the Company ’saudited profit before income tax expenses, net
profit, and net profit before non-recurring profits and losses for the Reporting Period isnegative.
□Yes  No
VII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 4,243,286,846.87 4,242,829,842.75 3,974,698,193.46 3,504,894,374.65
Net profit
attributable to the
Listed Company ’s
shareholders
549,180,610.69 851,066,339.34 944,463,660.38 555,517,491.91
Net profit
attributable to the
Listed Company ’s
shareholders after
deducting non-
recurring profits
and losses
536,488,161.79 850,748,190.59 873,166,176.98 584,955,892.84
Net cash flows from
operating activities 582,696,083.65 1,170,646,583.03 1,213,711,698.26 571,280,312.68

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Indicate by tick mark whether any of the quarterly financial data in the table above or their summations
differs materially from what have been disclosed inthe Company ’squarterly or interim reports.
□Yes  No
VIII Non-recurring Profits and Losses
 Applicable □Not applicable
Unit: RMB
Items 2025 2024 2023 Note
Gain or loss on disposal of non-
current assets (inclusive of
impairment allowance write-
offs)
45,335,110.29 1,370,429.32 2,836,160.40
Government grants
recognized inprofit or loss
(exclusive of those that are
closely related to the
Company’s normal business
operations and given in
accordance with defined
criteria and incompliance
with government policies, and
have acontinuing impact on
the Company’s profit or loss)
27,104,789.60 73,289,931.28 59,144,627.86
Mainly due to
government grants
other than the
rebates of value-
added tax
Gain or loss on fair-value
changes infinancial assets
and liabilities held by anon-
financial enterprise, as well as
on disposal of financial assets
and liabilities (exclusive of the
effective portion of hedges
that isrelated to the
Company’s normal business
operations)
19,512,451.65 8,600,080.44 113,869,356.66
Reversed portions of
impairment allowances for
receivables which are tested
individually for impairment
661,243.99 1,626,737.10
Non-operating income and
expenses other than the
above
-23,433,508.19 -2,212,101.11 7,082,898.99
Less: Income tax effects 16,585,031.12 9,148,746.86 25,007,516.39
Non-controlling interests
effects (net of tax) -2,274,623.90 -8,224,157.18 -3,344,940.13
Total 54,869,680.12 81,750,487.35 161,270,467.65 —

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Part III Management Discussion and Analysis
IPrincipal Operations of the Company in the Reporting Period
(I) The Company ’sprincipal operations and products
The Company specializes in the development and publishing of games for global players, with the game
development brand “Three Seven Games ”,as well as game publishing brands “37Mobile ”,“37GAMES ”and
“37Online ”.The Company precisely grasped the industry development trends, and made continuous
improvements in operation, while adhering to the “boutiqueization, diversification and globalization” strategy.
For the Reporting Period, the Company recorded operating revenue of RMB 15,966 million, ayear-over-year
(YoY) decrease of 8.46%; and anet profit attributable to its shareholders of RMB 2,900 million, aYoY increase of
8.50%.
During the Reporting Period, the Company’s products that had been published for many years, including
Puzzles &Survival, SoulLand: Clash of Spirimasters (斗罗大陆：魂师对决 ),Trading Legend (叫我大掌柜 ),Fan Ren
Xiu Xian Zhuan: Ren Jie Pian (凡人修仙传：人界篇 ),and Nobody’s Adventure Chop-Chop (寻道大千 ),maintained
long-term operations, while new products such as Bonk Bonk Tribe (时光大爆炸 ),Lootborn Warriors (英雄没有闪 ),
The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界 ),and Survive for 33 Days (生存 33 天)delivered outstanding
performance, continuously underpinning the Company ’ssteady development. During the Reporting Period,
the mobile games we published globally achieved peak monthly gross billings of approximately RMB2,200
million, with peak global monthly active users exceeding 130 million.
1.Focusing on core strategic tracks and long-term operations of diversified products
Centering on industry development trends and the Company’s core competitive advantages, on the one
hand, we continue to deepen our strategic presence in the mini-game and lightweight game segments,
continuously enriching product categories and innovating gameplay to consolidate our core competitive
advantages; on the other hand, we focus on the research and development as well as global publication of
SLG, MMORPG, and business simulation games, continuously increasing investment in innovation in core
gameplay, long-term operations, the development of localization capabilities, etc., while orderly advancing
the exploration of overseas casual products.
37Online
(publishing of mobile
&browser games)
37GAMES
(overseas publishing)
Three Seven Games
(game development)
37Mobile
(publishing of mobile
games)
37 Interactive Entertainment

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During the Reporting Period, the idle ARPG game, Lootborn Warriors (英雄没有闪 ),quickly topped the iOS
free app chart following its app launch and broke into the top five of the iOS bestseller list. Its applet version
also quickly rose to the top of the WeChat mini-game bestseller list, maintaining astable presence in the top
five and winning the WeChat Mini Games “2025 Innovative Breakthrough Mini Game ”award. Building on its
core gameplay, the game expands its narrative depth by introducing emotionally engaging hero growth lines
and an extended world view, enhancing user immersion and sparking community discussion, earning
widespread acclaim from players.
The Company’s Chinese-style simulation game Nobody’s Adventure Chop-Chop (寻道大千 )saw arebound
in performance through refined long-term operations and optimized event pacing, demonstrating the
continued evolution capabilities of a mature product and the notable highlight of “revitalizing legacy
products ”,validating its strong monetization and user retention capabilities. The game achieved multiple
breakthroughs in its collaborative models, including partnerships with the popular Chinese comic —Battle
Through the Heavens (斗破苍穹 )—and Meituan for an immersive consumer experience, collaboration with the
classic Xuanhuan IP, Shen Mu (神墓 ),and the nationally popular IP, Calabash Brothers (葫芦兄弟 ).Italso
actively participated in the Weifang International Kite Festival to showcase traditional culture, bridging the
game world with real-life experiences. In terms of version and content updates, we continued to deepen the
worldview and gameplay experience around the core of Chinese-style simulation, and innovatively
introduced the “classic IP +regional culture +public welfare actions” to promote the integration of game
content and social value.
Our time progression business simulation game Bonk Bonk Tribe (时光大爆炸 )leveraged its differentiated
theme and lightweight simulation experience to rapidly attract users, topping the free charts upon its app
release. On the WeChat Mini Games platform, itranked within the top three for popularity and top four for
bestsellers, earning the “2025 Innovative Breakthrough Mini Game ”award and frequently appearing on
subcategory charts. Over time, ithas become akey addition to our portfolio of emerging products.
During the Reporting Period, the Company ’smodern-themed simulation game My Memory Shop (时光杂货
店 )operated steadily. By adapting to market trends through continuous innovation and breakthroughs, the
game adopted amore flexible go-to-market strategy. Itdeveloped amore comprehensive user engagement
model through IP collaborations, public welfare campaigns, and city tours, such as collaborations with classic
film IPs, such as AChinese Odyssey (大话西游 )and introducing acreative worldview of “ancient characters in
the modern world ”.These efforts strengthened the consistency of online and offline content operations,
effectively prolonging the game ’slifecycle and further solidifying the Company ’slong-term operation strength
inthe business simulation genre.
During the Reporting Period, the Company began public testing for The Soul Land: Lie Hun Shi Jie (斗罗大陆：
猎魂世界 ),aself-developed game based on the novel and anime, Soul Land, which received both the novel
and anime licenses. This product, the first 3D realistic MMORPG based on the IP, the Soul Land, fully
implemented the Company ’sstrategy of boutiqueization. The game had garnered over ten million pre-
registrations and quickly ascended to the top of the iOS free app charts, becoming another benchmark for
the Company ’sdeep involvement inthe MMORPG sector.
During the Reporting Period, the Company ’sself-developed gacha mobile game SoulLand: Clash of
Spirimasters (斗罗大陆：魂师对决 )launched the “Speed Server ”concept, which significantly improved the user
experience by accelerating early-stage growth and enriching in-game rewards. It also initiated a

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collaboration with Cantonese culture, incorporating intangible cultural heritages such as Cantonese
embroidery and Cantonese opera to help promote traditional Chinese culture through its immersive game
presentation. This encouraged user re-engagement, stabilized daily active users, and further prolonged the
game ’slifecycle.
During the Reporting Period, the mobile game Fan Ren Xiu Xian Zhuan: Ren Jie Pian (凡人修仙传：人界篇 )
launched its anniversary version “Shuang Dao Gong Ran ”(双道共燃 )inmid-2025. The game collaborated with
Battle Through the Heavens (斗破苍穹 )to create a“Realm-Breaking Duel ”cultivation concept using atraffic
management-centric approach. This has not only helped the Company expand its active user base but has
also allowed itto continuously improve the game ’secosystem and enrich players ’experiences. The game has
thus become aflagship product inthe Company ’scultivation-themed MMORPG lineup.
During the Reporting Period, the Company’s Chinese-style business simulation mobile game, Trading
Legend (叫我大掌柜 ),maintained aleading position within the business simulation game segment through
steady version updates and carefully designed events. This performance demonstrates its solid user base and
mature monetization model, highlighting the long-term vitality and sustainable revenue generation of our
established products. During the Reporting Period, Trading Legend (叫我大掌柜 )centered on Song Dynasty
commerce and traditional Chinese market culture, continuously deepened the expression of traditional
culture, and, through collaborations with the National Games and intangible cultural heritage of Quanzhou,
reinforced the “Ancient Market Master” brand identity, thereby strengthening emotional engagement among
long-term users while enhancing the game’s social recognition. The product, through stable performance,
cultural co-creation, and content evolution, successfully established a mature path for the sustainable
operation of legacy products.
During the Reporting Period, the Company’s self-developed survival-themed RPG mobile game Survive for
33 Days (生存 33 天 )attracted significant user attention and discussion immediately upon launch, quickly
topping the bestseller charts of platforms such as WeChat Mini-Game, Douyin Mini-Game, TapTap, etc.,
demonstrating the Company’s continued ability to explore the balance between gameplay innovation and
user experience inthe mini-game and lightweight game segments.
2. Building strength in core categories such as SLG, and continuously tapping growth potential in
globalization
The Company, drawing upon its years of experience in overseas expansion, has continued to build
strength in core categories such as SLG, MMORPG, business simulation games, and casual games. Ithas
continuously explored overseas markets based on its “tailored games” strategy, sought growth opportunities
in those markets, and refined its long-term operation strategy. This has led to the sound development of its
overseas business. During the Reporting Period, the Company achieved overseas operating revenue of
RMB5,381 million, accounting for 33.70% of its total operating revenue.
In the SLG segment, we continue to focus on large-scale themes and deep gameplay innovation as our
core development direction, systematically advancing our product pipeline from the perspective of user
needs and long-term operations. Our current pipeline includes key projects such as Code K3 (代号 K3), with
targeted optimizations ingameplay integration, content depth, and monetization models.
For example, Last Asylum: Plague, launched in 2026, introduces lightweight gameplay such as business
simulation into its core SLG framework as an entry point for the early-stage experience, effectively

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enhancing new users’ sense of immersion and playability. Combined with the mature global user base for
medieval and survival-themed content and its differentiated art presentation, ithas demonstrated strong
potential inuser acquisition efficiency, user retention, monetization capabilities, etc.
Meanwhile, in terms of mature product operations, the Company prolongs product life cycles by
continuously introducing new gameplay features and cross-industry collaborations. Puzzles & Survival, our
phenomenal product launched overseas that integrates “Match-3 gameplay +SLG”, continues to maintain
arelatively stable gross billing contribution even years after its launch. As of the end of 2025, the product
had acumulative global user base exceeding 70 million, with the cumulative gross billing over RMB15 billion.
Ithad ranked on Sensor Tower’s monthly revenue chart for overseas mobile games for 12 consecutive
months and had appeared on the annual chart for four consecutive years, fully demonstrating the
Company’s mature capabilities inlong-term product operations.
Since its official launch, the Company’s fantasy match-3 mobile simulation game Puzzles & Chaos has
consistently ranked first among new overseas releases in the high fantasy SLG segment and maintained a
position within the top 50 on the annual overseas simulation game chart. By building a multi-channel
publishing matrix, advancing refined user operations, and continuously exploring the potential for
integrating high fantasy themes with SLG gameplay, we have driven the product to maintain steady growth
inoverseas markets, with the scale of new users continuing to increase and repeatedly reaching new highs.
In the MMORPG segment, the Company focuses on the key new product Ragnarok: The New World (RO
仙境传说：世界之旅 )by continuously improving product quality, strengthening IP influence, and innovating
publishing strategies. The product was officially launched in Hong Kong, Macao, and Taiwan of China on
January 2026, topping the free apps and bestseller charts of major local app stores. As the product
gradually expands into Southeast Asia and more overseas markets, itisexpected to continue unlocking the
value of the IPand further solidify the Company ’sstrategic footprint inthe MMORPG track.
In the casual game segment, we focus on core gameplay mechanics such as match-3 and hybrid styles.
While strengthening foundational gameplay experiences, we continue to explore differentiation in themes
and narrative. Through multi-dimensional validation in art style, storyline packaging, and level design, we
continuously optimize product-market fit and user retention, building valuable experience for future large-
scale publishing.
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, we keep incorporating Chinese cultural elements into gameplay and narrative systems.
Through games, adigital content medium with extensive international influence, we continuously promote
Chinese culture into overseas markets in a more interactive and communicative manner, aimed at
demonstrating the unique connotations and contemporary value of Chinese culture.
For example, Puzzles & Survival incorporates traditional symbols such as the Qixi Festival’s Qiniang Pan
and the Qiqiao legend into game narratives and event designs. Through immersive festival interactions and
romantic-themed storytelling, global players can experience the emotional expression and romantic
undertones of Eastern culture. Similarly, Trading Legend (叫我大掌柜 )incorporates Quanzhou Xunpu’s “Zan
Hua Wei ”intangible cultural heritage into its ancient-style management gameplay. By digitally recreating
heritage craftsmanship and fishermen’s daily life, the game presents overseas users with aculturally rich and
regionally distinctive living experience, vividly showcasing the historical depth and humanistic charm of

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Maritime Silk Road culture.
The Company continues to explore the balance between expressing Eastern aesthetics and crafting
globally appealing narratives. Through systematic content design and localized operational practices, we
steadily increase the acceptance and influence of Chinese cultural content inoverseas markets, positioning
our games as important vehicles for cross-cultural exchange. During the Reporting Period, the Company
was named a “Key National Cultural Export Enterprise for 2025 –2026” in recognition of our sustained
investment and achievements incultural export.
3.Building diversified offerings for the global market
The Company focuses on its core gaming business, and continuously expands the boundaries of its self-
development capabilities. Leveraging a mature methodology for IP adaptation and a three-element
integrated approach for non-IP projects, i.e., “theme packaging, prototype gameplay, and long-term
monetization model”, we build stable and efficient project initiation capabilities, actively pursue diversified
categories, develop products with a global perspective, meticulously refine product details, and remain
“Dedicated to Making Premium Games”.
Based on its self-developed brands, the Company consistently prioritizes high-quality content as its
strategic direction. Through multi-dimensional approaches such as investment empowerment and business
support, the Company has carried out in-depth collaborations with reputable game developers such as
EyuGame and Yanqu Network. Meanwhile, ithas continued to set up research and development studios for
SLG and casual games, and has established research and development branches in Beijing, Shanghai, etc.
This has led to astrong product pipeline, representing diversified offerings to come.
The Company iscurrently accelerating the release of its reserved products, aiming to deliver amore
diversified gaming experience for players. Looking ahead, certain key games in the pipeline are presented
below:
Source of
game Name of game Game category, theme and style
Intended
publishing
area
Self-
develop
ed
Battle Through the Heavens: Dou Di Zhi Lu
(斗破苍穹：斗帝之路 ) Chibi Xuanhuan RPG Global
Self-
develop
ed
The Soul Land: Chuan Cheng (斗罗大陆：
传承 ) Chibi Xuanhuan RPG Global
Self-
develop
ed
Xiao Tou Kui Da Mao Xian (小头盔大冒险 ) Chibi fantasy RPG Global
Self-
develop
ed
Huang Mo Sha Zhou (荒漠沙舟 ) American cartoon survival SLG Global
Self-
develop
ed
Code YCSLG (代号 YCSLG) Survival SLG Global
Self-
develop
ed
Code KGSLG (代号 KGSLG) Medieval SLG Global
Self-
develop
ed
Code ZXRRPG (代号 ZXRRPG) Chibi adventure RPG Global

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Self-
develop
ed
Code MLRPG (代号 MLRPG) High fantasy RPG Global
Self-
develop
ed
Code MRRPG (代号 MRRPG) Chibi survival RPG Global
Self-
develop
ed
Code Hope (代号 Hope) Survival hybrid Overseas
Self-
develop
ed
Code FMR (代号 FMR) Realistic football gacha SLG Global
Agency Zhui Xu (赘婿 ) Traditional Chinese ink painting-style
business simulation game Global
Agency Battle Through the Heavens: Mo Qi Shao
Nian Qiong (斗破：莫欺少年穷 ) Oriental Xuanhuan MMORPG Domestic
Agency Battle Through the Heavens: Xiao Yan
Zhuan (斗破苍穹：萧炎传 ) Oriental Xuanhuan RPG Domestic
Agency The Soul Land: Zero (斗罗大陆：零 ) Oriental Xuanhuan gacha RPG Domestic
Agency Zhua Zhua Da Luan Dou (爪爪大乱斗 ) Chibi animal casual battle Domestic
Agency Code ZT (代号 ZT) Ancient farm otome-oriented Domestic
Agency Code ZH (代号 ZH) Chibi ancient style casual Domestic
Agency Code K3 (代号 K3) Survival SLG Overseas
Agency Code JX (代号 JX) Oriental Xuanhuan idle RPG Domestic
Agency Endless Night (无尽黑夜 ) Survival SLG Domestic
Agency Code FX2 (代号 FX2) Oriental Xuanhuan idle RPG Domestic
Agency The Soul Land: Qi Cheng (斗罗大陆：启程 ) Oriental Xuanhuan idle RPG Global
Agency Xun Long BiJi(寻龙笔记 ) Chinese-style adventure RPG Domestic
Agency Code K5 (代号 K5) Survival SLG Overseas
Agency Code Dream (代号 Dream) Casual puzzle match-3 Overseas
4.Leveraging cutting-edge technological advantages and business applications
(1) Continuous upgrades to the AI capability system and the development of a comprehensive AI
empowerment ecosystem based on aself-developed industry-specific large model
The Company places a high emphasis on the deployment and application of big data and AI
technologies. After years of technological accumulation and business practice, the Company has
established an AI architecture centered on the AI capability foundation ,which covers the intelligent
product layer and business application layer ,forming afull-link AI empowerment system for game R&D and
operation. This system continuously enhances the industrialization level of the Company ’sgame R&D and
operation.
Building the AI capability foundation: Based on deep data accumulation from business scenarios and
computility investment, the Company continuously conducts internal training and inference optimization on
the high-quality data accumulated over the years, independently developing the gaming-specific large
model “Xiao Qi”.Leveraging its self-developed “Xiaoqi Large Model ”as the core, the Company integrates
mainstream external large model clusters to build its AI capability foundation, empowering the full range of
its general and specialized systems. During the Reporting Period, the “Xiao Qi Large Model ”received
generative AI service approval from the Cyberspace Administration of China, becoming one of the first
game-specific large models in Guangdong Province to achieve this milestone. This signifies that the model

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meets national standards in practical application, algorithmic security, data compliance, and content
governance.
Continuous upgrades to the AI capability system: Relying on the industry-specific large model “Xiao Qi”,
the Company builds the “Xiao Qi AI Agent Platform ”.This platform covers business areas such as 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, and 3D
materials that meet the Company’s product needs, accurately support advertising campaigns, and perform
excellently incode generation and text creation, thus fully empowering game development and operation.
During the Reporting Period, we continued to advance the upgrade and iteration of our AI capability
framework. We launched an enterprise-grade intelligent knowledge base platform “Zhi Qi” (知七 )and a
multi-agent collaboration platform “Zhi Qi” (智七 ).As of now, the “Xiao Qi AI Agent Platform ”has integrated
more than 150 various large models and AI tools, providing unified capability support for intelligent
applications across the Company’s business processes.
(2) AI reshapes the game pipeline for quality and efficiency enhancement across multiple dimensions
At the business application layer, the Company has leveraged AI technology to achieve intelligent
production and application across various content formats, including AI-text, AI-multimodal, and AI-
comprehensive applications categories.
AI-text: AI-text application scenarios of the Company have shown continuous improvement. For
example, AI localization translations now cover all of the Company ’soverseas games in18 languages with a
peak accuracy of 95% per language. Allof the Company ’sgames have integrated AI-powered customer
service with a90% resolution rate to offer more efficient, intelligent service experiences to players.
AI-multimodal: In the publishing process, over 80% of the 2D art assets used by the Company are now
generated using AI technology as a support. During the Reporting Period, more than 500,000 2D images
were produced each quarter. In terms of AI-3D generation, the Company continuously increases the
proportion of AI-3D applications, with mature use of art assets such as characters and item models. AI-3D
assisted asset generation accounts for more than 30%. In the Reporting Period, the effectiveness of AI-
generated videos became evident, with more than 70% of the Company ’sin-game advertising videos
involving AI intheir generation.
AI-comprehensive applications: The Company’s AI-assisted code generation covered code review,
event code generation, back-end system code generation, and automated testing, among other
processes. AI penetration in coding has exceeded 40%. In advertising, the “Quantum” platform and the
“Zeus” platform are fully integrated with AI capabilities, with AI-assisted ad placements accounting for 50% of
total spend, significantly improving delivery efficiency. On overseas platforms, AI-assisted image diffusion
accounts for 20% of usage. Meanwhile, leveraging its AI capabilities, the Company has developed a
material infringement detection system for intellectual property protection. Within five months after launch,
the system boosted the efficiency of identifying and obtaining core external infringement clues by
approximately nine times, effectively strengthening the Company ’s intellectual property protection
capacity.
In terms of product development, AI algorithms are employed to capture high-precision and high-
performance motions, and the capture function for facial expressions has been introduced, addressing the

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pain points such as high costs and overly long periods typically identified with specialized traditional motion
capture equipment. This has enhanced both R&D efficiency and quality. In terms of AI balance testing,
many of our self-developed products such as SoulLand: Clash of Spirimasters (斗罗大陆：魂师对决 ),Three
Kingdoms: Glory of Heros (霸业 ),The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界 ),and Ragnarok: The New
World (RO 仙境传说：世界之旅 )have benefited from the AI-assisted stat balance testing function with
improved training efficiency and access process, resulting in better player experiences and prolonged
game life cycles. Furthermore, the Company has continued to deepen its research in artistic resource
generation algorithms based on Generative Adversarial Networks (GAN), Stable Diffusion (SD), and Neural
Radiance Fields (NeRF). It has built an intelligent art asset generation platform that supports physical
rendering workflows, and developed features such as animation generation and migration, as well as 3D
model generation, thereby streamlining the game development process. The Company has also built an
intelligent art asset management platform powered by AI, enhancing smart search and AI-based tagging
of art resources. By more finely managing development resources, we continue to improve the reuse rate of
art assets.
Overall, AI penetration continues to deepen across the Company, embedding into employees’ daily
workflows. The “Xiaoqi AI Agent Platform ”has been used by much more people and more frequently across
the Company, greatly improving employee productivity, and driving higher organizational efficiency and
operational intelligence. For example, in game publishing and operations, the “Destiny” platform delivers AI-
powered public opinion reports covering over 30 games, greatly enhancing the capacity for high-
frequency perception and assisted analysis of public opinion trends. In functional management scenarios,
the Xiaoqi AI Meeting Minutes System has become acommonly used tool in key communication scenarios,
effectively improving information circulation and cross-departmental collaboration efficiency.
In terms of AI talent development and cultural innovation, the Company places great importance on
cultivating AI talent, actively promoting AI learning among employees. Ithas established an “AI Efficiency
Committee ”to implement a top-down, AI innovation-driven corporate culture strategy and promote AI
applications inall business links. Itplaces great importance on cultivating AI talent. Innovative activities such
as the “21-Day AI Learning Challenge ”,“Open Classes on AI”,and “AI Expert Program ”certification have
been carried out to comprehensively enhance employees ’AI skills. In parallel, the Company has
continuously expanded its AI-related job functions to build a robust talent pipeline that supports its AI
strategy. The ultimate goal isto drive enterprise-wide innovation through AI and inject new momentum into
industry development.
As the Company continues to promote AI applications, AI reshapes the workflow of each business link
and improves the level of automation. As AI technologies continue to deepen in business applications, the
optimization and upgrading of all business pipelines have enabled teams to focus more on creativity and
emotional expression. With the industry ’songoing technological iteration and innovation, the Company will
continue to explore the implementation of advanced AI capabilities in reasoning and decision-making,
providing deeper support and assistance for the efficient operation of all stages of the gaming business.
(3) AI-driven game innovation and exploration of diversified value
Supporting Game Project Initiation: During the early stages of game project establishment and new
version updates of operating products, the Company utilizes AI technology to assist in designing game
characters, combat scenarios, and game items. This optimizes characters, gameplay environments,

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animation effects, and style testing outcomes, thereby enhancing the efficiency of project approval and
version update processes.
Exploration of the AI+Games Technology: The Company continues to conduct technical research and
internal testing centered on the “AI+Games” strategy. Itfocuses on the application potential of AI in content
generation and personalized interaction, and further explores the supportive value of AIGC technology
across multiple content contents and processes, including storyline, art, programming and music. In parallel,
the Company conducts research on gameplay innovations such as intelligent NPC systems and AI-powered
in-game housing systems, and explores integration pathways between games and UGC creation. These
efforts aim to enhance the intelligence of in-game interaction and deliver more immersive player
experiences.
Exploring the diverse value of AI: The Company continues to explore the diverse possibilities of
“Games+AI” in creating social value. For example, as one of the first “Guangzhou City Partners”, we have
developed the “CongMei AI Assistant” for the 15th National Games, leveraging the “Xiao Qi” large model to
provide smart services such as event information consultation, venue navigation, and personalized cultural
and tourism recommendations. During the Reporting Period, the Company launched the “Ling Cha Cha”
platform for brand content insights and intellectual property protection, offering brand reputation
monitoring, communication analysis, and infringement risk identification services. The platform supports
enterprises insectors such as entertainment, e-commerce, and technology with digital asset protection and
related services. In the healthcare sector, the Company has collaborated with Zhujiang Hospital of Southern
Medical University to explore gamified applications for Alzheimer’s cognitive training. By combining AI with
interactive game design, the collaboration seeks to develop supportive training solutions for individuals with
cognitive impairments, demonstrating a multifaceted approach to leveraging AI and games for social
impact.
The Company isactively exploring innovative applications of AI in gaming. At present, itcontinues to
accumulate technological reserves for future AI game products through technological verification and
capability accumulation, while building a capability foundation for the implementation of commercial
products in the future. Under the premise of ensured technological feasibility, itexplores paths for deep
integration between AI and game content, and focuses on the potential of AI inenhancing gameplay and
interactive experience, with the aim of delivering more immersive and personalized gaming experiences to
users.
(4) Technology ecosystem and investment strategy focused on long-term competitiveness
The Company adheres to an investment strategy guided by “core business synergy + strategic
positioning in frontier technologies”. On one hand, our investments target innovative entities that can form
effective synergies with our game R&D and operation and support the development of our core business;
on the other hand, we focus on frontier technologies with strong policy support, high growth potential, and
broad expansion opportunities, steadily advancing technology capability building and forward-looking
strategic positioning. In recent years, focusing on the upstream and downstream segments of its core
industrial chains of cultural and entertainment technology, human-computer interaction, and artificial
intelligence, the Company has invested, directly or indirectly, in a number of innovative enterprises. The
portfolio includes Zhipu AI, Moonshot AI, Baichuan AI, AIsphere, Luxvisions, Tsing Micro, LuminX, HYQ, Huixi,
BrainCo, iStar, and RayNeo. The Company explores the adaptive application of technologies from invested

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enterprises in the game R&D and operation pipeline, and continuously empowers business innovation and
technological capacity expansion through strategic investments.
(II) The Company ’sprincipal operations and business models
The Company isprincipally engaged in the development, publishing, and operation of online games
(mostly mobile and browser games). The business models of the Company ’sonline games mainly include
independent operation and third-party joint operation.
Under the independent operation mode l,the Company obtains the licenses of games through
independent R&D or being an operator of other games, and publishes and operates these products through
its own or third-party channels. The Company is fully responsible for the operation, promotion and
maintenance of the games; providing unified management services for online promotion, online customer
service and top-up payment; and updating games along with game developers based on the real-time
feedback of users and games.
Under the third-party joint operation mode l,the Company cooperates with one or more game operators
or game application platforms to jointly operate games. And the aforesaid parties are responsible for the
management of their own channels, including operation, promotion, the recharge and charge system, while
the Company provides technical support services along with game developers.
(III) The Company ’spresence on the market and primary growth drivers
Focusing on cultural and creative businesses based on the development, publishing, and operation of
online games, the Company isacomprehensive entertainment provider in China ’sA-stock market. ItisaKey
Cultural Export Company of China, Demonstration Base for China ’sCultural 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 alist of China ’stop 100 internet companies. Ithas 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
Company isdedicated to becoming an excellent and sustainable entertainment provider.
IIIndustry Overview for the Reporting Period
1.Growth inindustry scale and user base continued to unlock the potential of the game industry
According to the 2025 China ’sGame Industry Report released by the Game Publishing Committee of
China Audio-video and Digital Publishing Association (CADPA), in 2025, the actual sales revenue of the
domestic gaming market reached RMB350,789 million, representing aYoY increase of 7.68%; and the number
of game users approximated 683 million, aYoY increase of 1.35%. Both figures have hit record highs.
In recent years, the mini-game segment has seen asurge in blockbusters. These games expanded into
previously untapped user demographics within existing application scenarios. Their accessible entry points
more precisely and effectively attracted target players, while fragmented gameplay and lightweight user
experiences introduced more casual gaming modes. These features met users ’demand for light, fragmented
entertainment and brought new growth potential to the gaming industry. In 2025, the revenue from domestic
applet games amounted to RMB53,535 million, aconsiderable YoY growth of 34.39%.

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In 2025, the self-developed games in China generated USD20,455 million in overseas market revenue, a
YoY increase of 10.23%. The United States, Japan, and South Korea remained the primary target markets for
Chinese mobile games abroad, with respective shares of 32.31%, 16.35% and 9.15%. Additionally, the
combined market share of Germany, the United Kingdom, and France was 8.84%. Among the top 100 self-
developed mobile games with the highest overseas revenue, strategy games (including SLG) accounted for
49.96% with anotable YoY rise, still ranking first, followed by shooting and role-playing games (9.69% and 9.39%,
respectively). In the overseas revenue rankings over the past five years, strategy games have remained at the
top. The strategic value and growth potential of the SLG genre have continued to hit record highs.
In 2025, driven by policy support, asound ecosystem, and technological innovations, the Chinese game
industry showed steady growth. The industry focused on the development and innovation of high-quality
games, comprehensively enhancing product quality while accelerating global expansion. The industry scale
continued to grow, economic potential continued to be released, and strong momentum for high-quality
development was injected.
2. Policies guided the expansion of the boundaries of “Games+” in a diversified way, and continuously
promoted cultural export.
In March 2025, the General Office of the CPC Central Committee and the General Office of the State
Council issued the Special Action Plan for Boosting Consumption, proposing to “strengthen consumption
brand leadership. Focus on commerce, logistics, culture and tourism, and other service sectors, and formulate
targeted policies to enhance service quality. Develop more Chinese service brands. Integrate outstanding
traditional Chinese culture into product design, support the development of original intellectual property (IP)
brands, promote consumption of animation, games, e-sports and their derivative products, and expand
domestic and international markets for fashionable domestic brands ”.
In April 2025, the Ministry of Commerce issued anotice 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 a full industrial chain layout from IP creation to game
production, distribution, and overseas operations. In May 2025, Guangdong Province published Several Policy
Measures for Promoting High-Quality Development of Guangdong ’sOnline Game Industry, which focused on
supporting original high-qualit