ARCHOSAUR GAMES(09990) Ge Long Hui·2025-06-03 08:05Core Viewpoint - Zulong Entertainment (9990.HK) demonstrated strong growth in the premium gaming sector despite a challenging market environment characterized by a contraction in game approvals and accelerated industry clearing [1][2]. Financial Performance - For the fiscal year ending December 31, 2021, Zulong Entertainment reported total revenue of approximately RMB 921 million, with overseas business revenue accounting for about RMB 536 million, representing 58.2% of total revenue [1]. - Self-developed business revenue was approximately RMB 448 million, making up 48.7% of total revenue [1]. Product Development and Strategy - Zulong Entertainment launched 16 premium mobile games in over 170 markets, supporting more than 70 regional versions in 14 languages [1]. - The company plans to release 11 new mobile games from 2022 to 2024, including 4 expected to launch in 2022, covering various genres such as MMORPG, SLG, and shooting games [3]. - The MMORPG and shooting hybrid game "Avatar" represents a new entry into the multiplayer online shooting game category, while the adventure game "Noah's Heart" is set to launch in 2022 [3]. User Base and Market Expansion - As of December 31, 2021, Zulong Entertainment's games had a cumulative global user base exceeding 130 million, with three games generating over RMB 3 billion in total revenue [4]. - The MMORPG game "Dragon Tribe Fantasy" achieved over RMB 3.8 billion in global revenue and nearly 40 million registered users within 18 months of its overseas launch [4]. Future Outlook - The management anticipates that with a richer variety of game genres and a more pronounced global style, game performance and lifecycle will further improve [5]. - Analysts from CICC and Zhongtai International have issued reports with "Buy" and "Accumulate" ratings, respectively, recognizing the company's commitment to premium development and the expected product launch year in 2022 [5].