Group 1 - The core viewpoint of the article highlights that Xindong Company (02400) has seen a stock price increase of over 3%, currently trading at 65.4 HKD with a transaction volume of 42.34 million HKD [1] - Xindong Company announced the acquisition of intangible assets related to the game and associated intellectual property, specifically the "Torchlight" IP, for a total consideration of 37.18 million USD [1] - Following the completion of the asset transfer, the group will fully own the intellectual property rights, eliminating related royalty fees, which is expected to directly enhance the profit margin of "Torchlight: Infinite" and improve overall profitability for shareholders [1] Group 2 - With complete ownership of the "Torchlight" intellectual property, the group will be able to independently develop sequels, derivative works, and cross-platform products, thereby enriching its product portfolio and expanding new revenue sources [1] - The acquisition is anticipated to facilitate deep value transformation and sustained growth from this high-quality intellectual property asset [1]

Core Viewpoint - The company, XD Entertainment, has entered into an asset transfer agreement to acquire rights and ownership of the "Torchlight" intellectual property and related assets for a total consideration of $37.18 million [1]. Group 1: Asset Transfer Details - The assets being transferred include the "Torchlight" technology, source code, documentation, intellectual property, social media accounts, and all related goodwill [2]. - The agreement specifies that the transferred assets do not include any assets related to "Torchlight: Infinite" that are owned by XD Entertainment and third parties [2]. Group 2: Financial and Operational Impact - Following the asset transfer, the company will fully own the intellectual property, eliminating the need to pay royalties to external IP owners, which will directly enhance the profit margin of "Torchlight: Infinite" [3]. - The acquisition will provide the company with complete autonomy in decision-making regarding "Torchlight: Infinite," ensuring long-term operational stability and sustainability [3]. - With full ownership of the "Torchlight" intellectual property, the company will be able to independently develop sequels, spin-offs, and cross-platform products, thereby enriching its product portfolio and expanding new revenue sources [3].

Group 1 - The core point of the news is that XD Entertainment, a wholly-owned subsidiary of the company, has entered into an asset transfer agreement to acquire assets from Runic and Arc Games for a total consideration of $37.18 million [1] Group 2 - The transferred assets include the game "Torchlight," its technology, source code, intellectual property, social media accounts, and all related rights and claims, excluding any assets related to "Torchlight: Infinite" owned by XD Entertainment and third parties [2] Group 3 - After the asset transfer is completed, the company will fully own the intellectual property of "Torchlight: Infinite," eliminating the need to pay royalties to external IP owners, which will directly enhance the profit margin of the game and improve overall profitability for shareholders [3] - The acquisition will grant the company complete autonomy in decision-making regarding "Torchlight: Infinite," ensuring long-term stability and sustainability in game operations, allowing for flexible responses to market opportunities and strategic focuses [3] - With full ownership of the "Torchlight" intellectual property, the company will be able to independently develop sequels, spin-offs, and cross-platform products, thereby enriching its product portfolio and expanding new revenue sources [3]

根据资产转让协议的条款及受资产转让协议所载的条件所规限，卖方应向XD Entertainment出售、传 输、转让、指让及交付，而XD Entertainment则应向卖方收购卖方于下列资产的所有权利、所有权及权 益(统称「转让资产」)：(1)游戏；(2)《火炬之光》技术，包括当中任何及所有源代码；(3)《火炬之 光》文件；(4)《火炬之光》知识产权；(5)转让合约；(6)资产转让协议所载的所有社交媒体账户，包括 任何相关用户名称、网页名称、URL、密码、存取凭证以及一切相关内容、追随者、订阅者名单、分析 数据及其附带商誉，连同向适用社交媒体或平台服务供应商要求及获取转让或指让该等账户的权利； (7)卖方与任何其他人士于交割日期後产生的转让资产相关的所有权利、索赔、债权、诉因或针对第三 方的抵销权(包括对任何独立承包商强制执行任何发明指让、保密或机密契诺或任何谘询协议的权利)， 包括强制执行所有《火炬之光》知识产权的权利以及就所有《火炬之光》知识产权的侵权、盗用或其他 侵犯(包括过往的侵权、盗用或其他侵犯)提出诉讼(并寻求和保留损害赔偿)的权利；(8)卖方拥有或控制 且与任何上述事项相关的所有书面或电子格式记 ...

XD Inc. 心动有限公司 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：2400） 須予披露交易 訂立資產轉讓協議 訂立資產轉讓協議 董事會欣然宣佈，於2025年12月29日，XD Entertainment（本公司的全資附屬公 司）與賣方及Golden Arc訂立資產轉讓協議，據此，XD Entertainment同意向賣 方購買及收購轉讓資產的所有權利、所有權及權益。 上市規則的涵義 由於資產轉讓協議所涉及的最高適用百分比率超過5%，但低於25%，故根據 上市規則第14章，資產轉讓協議構成本公司的須予披露交易，並須遵守上市 規則第14章項下的申報及公告規定。 緒言 董事會欣然宣佈，於2025年12月29日，XD Entertainment（本公司的全資附屬公司） 與賣方及Golden Arc訂立資產轉讓協議，據此，XD Entertainment同意向賣方購 買及收購轉讓資產的所有權利、所有權及權 ...

Investment Rating - The report maintains a "Positive" investment rating for the media and internet industry [3] Core Views - As the winter vacation and Spring Festival approach, high DAU products like "Delta Action" and "Supernatural Action Group" are expected to achieve new highs in DAU and revenue, with market consensus strengthening [3] - Emphasis on cross-year allocation opportunities and companies with significant growth potential, such as Tencent Holdings, Giant Network, and Century Huatong, is recommended [3] - New product launches and updates in gaming and film content are highlighted as key trading opportunities [3][4] Summary by Sections Gaming Sector - Major products like "Honor of Kings," "Delta Action," and "Supernatural Action Group" are expected to strengthen their market position through frequent content updates [5] - Companies exploring AI integration in gaming are noted for their potential to drive value reassessment [5] - Recommendations include Tencent Holdings, NetEase, and several others for their innovative approaches [5] Film and Television Sector - The film "Fast Life 3" is scheduled for release during the 2026 Spring Festival, with recommendations to monitor related production and distribution companies [4] - The implementation of new policies by the National Radio and Television Administration is expected to enhance content creation and development in the long-form drama sector [4] Internet Sector - ByteDance's launch of the general Agent model Seed1.8 is noted for its multi-modal capabilities, impacting traditional business models [6] - Continued focus on AI technology development and its application in various sectors, including education and e-commerce, is advised [6] New Business Models - The rise of "group broadcasting" is seen as a shift towards systematic growth, with recommendations for companies directly involved in this model [7] - Companies benefiting from the growth of group broadcasting, such as Kuaishou and Bilibili, are highlighted [7] Market Performance - The A-share market saw a slight decline in the media sector, ranking 26th among all industries during the specified period [12] - Notable stock performance includes Baida Qiancheng (+20.08%) and Rebate Technology (+14.34%) [15][19] Industry News - "Chinese Tales 2" will exclusively launch on Bilibili starting January 1, 2026 [9] - The 2025 mini-game market is projected to reach 61 billion yuan, growing by 22% [9][24]

Group 1 - The core logic of the report revolves around "AI and IP coexisting," indicating that the media industry is expected to experience high overall prosperity, with profits and valuations likely to resonate together. The media industry is projected to rise by 24% in 2025, driven by breakthroughs in AI large models and performance releases [1][22] - The media industry's revenue for the first three quarters of 2025 grew by 6% year-on-year, while net profit attributable to shareholders increased by 38%. In Q3 alone, net profit growth reached 61%, significantly enhancing profitability [1][26] - In the gaming sector, both supply and demand are robust, with revenue and net profit increasing by 24% and 89% year-on-year, respectively. The film industry benefited from high-quality IP content, with net profit soaring by 110% year-on-year [1][28] Group 2 - AI has become the core growth engine, with accelerated application across multiple fields. Major companies are rapidly iterating large models, establishing a foundation for the application ecosystem. In the gaming sector, relaxed licensing has boosted new game supply, while AI is restructuring development processes to reduce costs and enhance efficiency [2][47] - The film industry is experiencing a resurgence due to supportive policies like the "21 Regulations," which have relaxed content restrictions. AI video tools and short dramas are expected to expand the industry significantly, benefiting companies like Mango TV and Shanghai Film [2][39] - In marketing, AI continues to empower programmatic advertising platforms, optimizing algorithms to improve customer acquisition efficiency. Companies like HuiLiang Technology and Inertia Media are expected to benefit significantly [2][14] Group 3 - The IP business is undergoing multi-dimensional upgrades, with overseas expansion becoming a core growth driver. Categories such as online literature, games, and trendy toys are rapidly increasing their market share abroad, with companies like Pop Mart seeing significant growth in overseas revenue [3][10] - The expansion of categories continues to deepen, with IP extending from online content to offline derivatives and theme parks, achieving full-scene coverage. The capitalization process is accelerating, with companies like Card Game and 52TOYS filing for listings [3][11] - Leading companies like Yuewen Group and Aofei Entertainment are leveraging their rich IP reserves and full industry chain operational advantages to lead the market [3][14]

Group 1: Industry Overview - The media industry has experienced a cumulative increase of approximately 24% in 2025, driven by strong earnings and the impact of AI on profitability [15][16][17] - AI is enhancing the profitability of the media sector, potentially driving long-term growth and a prosperous content ecosystem [16][18] Group 2: AI and Its Applications - Continuous iteration and upgrades of large models by domestic and international tech giants are laying the foundation for a thriving AI application ecosystem [35][36] - The gaming industry is witnessing robust supply and demand, with a significant increase in the issuance of game licenses, totaling 1,532 in 2025, a 29% year-on-year increase [41][42] - AI is transforming the game development process, improving efficiency and innovation in gameplay design and narrative structure [53][54] Group 3: Sector-Specific Insights - The gaming sector's revenue grew by 24% year-on-year in 2025, with a notable 29% increase in Q3 alone, driven by new game releases and strong user engagement [23][25] - The film industry saw a 9% increase in revenue year-on-year, with a remarkable 110% increase in net profit, largely attributed to successful IP content like "Nezha 2" [24][31] - The advertising and marketing sector experienced a 6% revenue growth year-on-year, with a 14% increase in net profit in Q3, supported by AI-driven cost optimization [28][33] Group 4: Investment Recommendations - Recommended companies in the gaming sector include Giant Network, Kying Network, and Tencent Holdings, which are well-positioned to benefit from the ongoing AI integration [4][41] - In the film sector, companies like Mango Super Media and Shanghai Film are highlighted as key players benefiting from supportive policies and AI tools [4][24] - For the marketing sector, recommended companies include Huimai Technology and Inertia Media, which are expected to gain from AI advancements [4][28] Group 5: IP Expansion and Capitalization - The expansion of IP companies into overseas markets is becoming a core growth driver, with a focus on diversifying product categories [39][40] - Capitalization efforts are accelerating the growth of IP companies, with notable recommendations including Reading Group and Aofei Entertainment [39][40]

Summary of Conference Call Records Industry Overview - The gaming sector is experiencing a favorable opportunity for growth, driven by the upcoming holiday season and the launch of new games, which are expected to boost user engagement and revenue [1][3] - The long-term outlook for the gaming industry is positive, with a supply-demand resonance indicating an upward trend in market conditions [3] Key Insights and Arguments - **Short-term Growth Drivers**: The upcoming winter holidays and the Spring Festival are traditional peak seasons for the gaming industry, expected to last nearly two months starting from New Year's Day. New game launches will contribute to user and revenue increases [3] - **Long-term Product Pipeline**: Companies have a robust pipeline of new products targeting younger demographics, including games like "Shining Version of Milumi" and "World of Luok Kingdom," which are anticipated to drive industry growth [1][4] - **AI Technology Integration**: AI is enhancing the gaming industry by reducing development costs, improving efficiency, and increasing return on investment (ROI) in user acquisition. It also enriches gameplay and content design, propelling the industry into a growth acceleration phase [1][5] Recommended Companies - **Giant Network**: Expected to see increased Daily Active Users (DAU) and revenue from "Supernatural Action Group" during the holiday season, with several new games in the pipeline [7] - **Kying Network**: Rapid growth of "996 Legend Box" and a strong lineup of upcoming games, including "Douluo Dalu" and "Three Kingdoms: The Return of the Heart" [7] - **G-bits**: Positive performance from "Nine Muwu" and a solid product matrix with long-lasting games expected to drive growth [7] - **Xindong Company**: Anticipated launch of "Xindong Town" overseas in early 2026, with strong domestic market performance expected during the holiday season [7][8] - **Bilibili and Tencent**: Both companies are expected to launch significant new products in 2026, including "Three Kingdoms: Hundred Generals Card" and "World of Luok Kingdom" [9] AI and Content Creation - **Multimodal AI Models**: Recent advancements in multimodal AI models by major tech companies like Alibaba, Tencent, and ByteDance are set to revolutionize content creation across various domains, including gaming, video, and music [10][11] - **Impact on Content Creators**: These technologies will enhance the ability of content creators to produce high-quality, diverse, and personalized content, thereby increasing demand for computational power in inference [11] Market Dynamics - **Rising Demand for Computational Power**: The growth in demand for inference computational power will benefit edge computing and cloud computing companies, with firms like Vision Technology expected to see sustained growth in their cloud business [12] Conclusion - The gaming industry is positioned for significant growth driven by seasonal demand, innovative product offerings, and the integration of AI technologies. Key players in the market are well-prepared to capitalize on these trends, making them attractive investment opportunities.

Investment Rating - The report maintains a "Positive" investment rating for the gaming industry [7]. Core Insights - The domestic gaming market in China is projected to achieve an actual sales revenue of CNY 350.79 billion in 2025, reflecting a year-on-year growth of 7.68%. The market size for Q4 2025 is expected to reach CNY 94.76 billion, with a year-on-year increase of 9.24% [2][4]. - A new product cycle is underway as key new games from listed companies are being launched. Notable titles include Gigabit's "Nine Muses of the Wild" and Giant Network's "Famous Generals Kill," which have recently entered testing phases [6][4]. - The report suggests continued attention to investment opportunities within the gaming sector, highlighting companies such as Giant Network, Perfect World, and Tencent [6]. Summary by Sections Market Performance - The gaming market in China has reached a historical high in revenue, with mobile games generating CNY 257.08 billion (up 7.92%) and PC games reaching CNY 78.16 billion (up 14.97%) in 2025. The Q4 market size for mobile games is projected at CNY 67.38 billion (up 3.59%) [9][8]. - The user base for games has shown consistent growth over three years, with increases of 0.61%, 0.94%, and 1.35% from 2023 to 2025 [9]. New Product Cycle - The report emphasizes the impact of new game launches on Average Revenue Per User (ARPU), which is expected to rise from CNY 483.10 in 2024 to CNY 513.26 in 2025, marking a growth of 6.24% [9]. - The overseas market for self-developed mobile games from China is also thriving, with projected revenue growth of 11.14% and 13.16% for 2024 and 2025, respectively [9]. Policy Environment - Recent supportive policies for the gaming industry have been introduced, including initiatives to enhance the esports sector and promote original game development. These measures are expected to foster a more favorable environment for growth [9].