①In the first half of the year, the domestic gaming industry faced growth pressure, and Ourpalm Co., Ltd. realized stable revenue with the small game 'Monkey King Holding On'. ②The rising cost of acquiring users for small games led to a significant increase in sales expenses for Ourpalm Co., Ltd., dragging down net income. ③The company's 'AI+UGC' strategy made certain progress.
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On August 26th, CAIJING.COM (Reporter: Fang Yanbo) reported that under the trend of intensified competition in the gaming market, Ourpalm Co., Ltd. (300315.SZ), with the outstanding performance of its popular small game 'Monkey King Holding On', achieved basically stable revenue and non-GAAP net profit, resisting the industry downturn wave.
On the evening of the 26th, Ourpalm Co., Ltd. announced that the company achieved operating income of 46.8 billion yuan in the first half of the year, a year-on-year increase of 2.02%. Among them, the operating income of the mobile terminal gaming business reached 43.7 billion yuan, a year-on-year increase of 2.60%; the non-recurring profit and loss deducted net profit was 11.9 billion yuan, basically flat year-on-year.
Since the beginning of this year, China's gaming industry has continued to face intensified competition, with the market size reaching 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 in the first half of the year reaching 16.603 billion yuan, a 60.5% year-on-year increase, maintaining rapid growth for three consecutive years.
The company stated that thanks to the revenue pull from small game products, especially the self-developed small game product 'Monkey King Holding On', launched in Q3 of 2023, it has made significant contributions to the company's performance and enhanced the stability of the company's performance.
Of note, behind the rapid growth in market size, the rising trend of user acquisition costs for small games has become increasingly evident.
According to the financial data of Ourpalm Co., Ltd., the company's sales expenses in the first half of the year reached 14.7 billion yuan, a year-on-year increase of 52.48%. The company explained that this was due to increased marketing expenses. As a result, the company's net income attributable to shareholders of the listed company in the first half of the year was 13.9 billion yuan, a 10.44% year-on-year decrease.
In fact, the rising cost of traffic is a common issue faced by all gaming companies, and each company is seeking to reduce costs and increase efficiency in their own ways. In this process, AI has become a popular option.
Ourpalm co.,ltd. also stated in its semi-annual report that the company closely monitors the development of AI technology and has proposed the "AI+UGC" global strategy, actively exploring the game application scenarios of related technologies, and has already made certain progress. It is reported that the company, in collaboration with Beijing YOUMI Interactive Entertainment Technology Co., Ltd., has jointly developed the "AI Game Creation Platform" to achieve "AI+UGC". At the same time, the company has teamed up with Beijing LAYA BOX Technology Co., Ltd. to launch the LayaAir 3 game engine, providing a more intelligent and automated game engine product for a large number of game developers.