Thanks to the growth of revenue from multiple games, Yoozoo Interactive is expected to turn losses into profits year-on-year in the first half of the year. The company attributes the performance change to the long-term operation of popular games like 'Three Kingdoms of Youth'.
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On July 12th, according to Cailian Press, Yoozoo Interactive (002174.SZ) is expected to turn losses into profits year-on-year in the first half of the year thanks to growth of revenue from multiple games.
Yoozoo Interactive announced tonight that it is expected to achieve net income attributable to shareholders of RMB 4 million to RMB 6 million in the first half of 2024, and net income of RMB 11 million to RMB 16.5 million after deducting non-recurring gains and losses, turning losses into profits year-on-year.
According to Yoozoo Interactive, the main reason for the performance growth is the refined and long-term operation of popular games such as 'Three Kingdoms of Youth', 'Three Kingdoms of Youth 2', 'Three Kingdoms of Youth: Zero', 'Journey to the West of Youth', 'Game of Thrones Winter is Coming PC version', 'Infinity Kingdom Mobile Game'.
It is reported that in the first half of this year, the company has launched many new games, including self-developed mobile game 'Journey to the West of Youth 2' released in mainland China, proxy mobile game 'Record of the Dream of the Three Kingdoms', self-developed mobile game 'The Return of the Mirror Flowers' released in the Hong Kong, Macao, and Taiwan markets, as well as self-developed mobile game 'Crimson Echoes' released in South Korea.
Yoozoo Interactive also stated that continuous cost reduction and efficiency improvement have improved the profitability of the company's main business. On one hand, the promotion of products focuses on accurate delivery, and the advertising costs in the first half of the year decreased year-on-year. On the other hand, in the first half of the year, the company made organizational structure adjustments based on the principles of 'Research and Operation Integration' and 'Independent Operation', resulting in a decrease in labor costs year-on-year.
According to Cailian Press, during this year's '616 Youth Festival', the company launched its first AI product for players, the AI companion 'Code Xiao You Jiang'. The product can not only serve as a game-exclusive assistant to provide players with customer service and game strategies, but also provide rich emotional value in companionship and listening, while also taking into account the development and assistance of personalized aspects.
The launch of 'Code Xiao You Jiang' is attributed to the company's many layouts in the AI field. Since the establishment of the AI Innovation Institute last year, the company has successively cooperated with companies such as Yuncong Technology and Tencent Cloud, and co-initiated the 'New Quality Productivity Digital Innovation Alliance' with People's Venture Capital and Dawning Information Industry in May of this year.
Regarding future product reserves, Yoozoo exposed 6 new games during the '616 Youth Festival'. Among them, there are key products such as the 'Youth Three Kingdoms 3' and the first official authorization game based on the 'Three Body' IP, 'My Three Body: 2277'. In addition, the company also announced many innovative product categories, such as the multiplayer online real-time strategy mobile game 'Vice Nation', the slightly casual mobile game 'Code: Pack', the super casual placement RPG 'Code: Agame', and the simulation business game 'Code: SR2'.