When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

On August 26th, Caixin reported (Reporter Fang Yanbo) that in the face of intensified competition in the gaming market, Ourpalm Co., Ltd. (300315.SZ) has withstood the industry's internal turmoil with the excellent performance of its popular small game 'The Monkey King's Fight', and its revenue and non-GAAP net profit remained basically the same on a year-on-year basis.

On the evening of the 26th, Ourpalm Co., Ltd. released an announcement, stating that the company achieved operating revenue of 0.468 billion yuan in the first half of the year, a year-on-year increase of 2.02%. Among them, the mobile terminal gaming business achieved operating revenue of 0.437 billion yuan, a year-on-year increase of 2.60%; the net profit, after deducting non-recurring gains and losses, was 0.119 billion yuan, basically unchanged year-on-year.

Since the beginning of this year, the Chinese gaming industry has continued its trend of intensified competition in a saturated market, with a market size of 147.267 billion yuan, a year-on-year increase of 2.08%. However, small games have become the growth engine leading the industry, with actual sales revenue reaching 16.603 billion yuan in the first half of the year, an increase of 60.5%, maintaining high-speed growth for three consecutive years.

The company stated that thanks to the revenue contribution from small game products, especially the self-developed small game product 'The Monkey King's Fight', which was launched in Q3 2023, it has made important performance contributions and enhanced the stability of the company's performance.

It is worth noting that behind the rapid growth of the market, the trend of increasing costs for acquiring users of small games has become more apparent.

Financial data from Ourpalm Co., Ltd. shows that the company's sales expenses in the first half of the year reached 0.147 billion yuan, a year-on-year increase of 52.48%. The company explained that this was due to an increase in marketing expenses. As a result, the net profit attributable to shareholders of the listed company in the first half of the year was 0.139 billion yuan, a year-on-year decrease of 10.44%.

In fact, the rise in traffic costs is a common problem faced by all gaming companies, and each company is seeking to reduce costs and increase efficiency in their own way. AI has become a popular option in this process.

Ourpalm Co., Ltd. also stated in the semi-annual report that the company is closely following the development of AI technology, proposing the 'AI+UGC' global strategy, actively exploring gaming application scenarios of related technologies, and has already made certain progress. It is reported that the company, in collaboration with Peking YOUMI Interactive Entertainment Technology Co., Ltd., jointly developed an 'AI game creation platform' to realize 'AI+UGC'. At the same time, the company joined forces with Peking LayaBox Technology Co., Ltd. to launch LayaAir 3 game engine, providing game developers with a more intelligent and automated game engine product.