Summary of the Conference Call for Xindong Company Company Overview - Xindong Company initially started as a resource website, transitioned to web games, then to the TapTap platform, and finally entered the game publishing sector. From 2011 to 2014, the company successfully operated the game "God's Path," realizing the importance of operations and subsequently shifted focus to self-developed mobile games, with mobile game revenue accounting for 92% by 2017 [2][4][8]. Key Points and Arguments Industry and Market Dynamics - The mobile gaming market in China is dominated by Tencent and NetEase, which hold 75%-80% of the market share, while the global market is more diversified with various champions in different categories [11]. - Xindong Company has actively expanded its overseas market, increasing its overseas revenue share from 2% in 2016 to 62% in 2018, maintaining over half of its revenue from international markets [2][6]. Strategic Shifts - The company faced challenges due to piracy issues, leading to a strategic pivot towards enhancing overseas distribution and increasing self-developed game efforts. R&D expenses rose from 10% to 45%-48% post-2020, with a significant increase in R&D personnel [2][9][10]. - Xindong's TapTap platform, launched in 2016, has become a key player in the mobile gaming distribution space, focusing on user engagement through community interactions and innovative marketing strategies [5][20]. Financial Performance - The company’s advertising revenue from the TapTap platform has shown a compound annual growth rate of 25%-30% from 2019 to 2023, indicating a stable income stream despite fluctuations in game revenue [10][29]. - The overall revenue growth is expected to remain in the low to mid-double digits, supported by unique platform advantages and improving R&D capabilities [29]. Game Development and Releases - Xindong's self-developed games launched in 2022, such as "Flash Party" and "T3," did not meet expectations due to incomplete features and strong competition, leading to a strategic refocus on key projects [9][13]. - Upcoming titles like "Xindong Town" and "Torchlight" are anticipated to drive revenue growth, with "Xindong Town" showing promising user engagement metrics [15][19]. Challenges and Future Outlook - The company faces significant pressure to release new products, with only one confirmed game pipeline for 2025, which is "RO2 Advanced Legend." The strategy includes leveraging mature gameplay to mitigate development risks and encouraging user-generated content [14][19]. - The TapTap platform's user growth has plateaued, with a less than 1% increase in monthly active users in the first half of 2025, indicating a need for continuous innovation and content updates to sustain growth [26][25]. Additional Important Insights - Xindong's unique zero-commission model on the TapTap platform allows for higher profit margins for developers, with gross margins ranging from 50% to 70% [22]. - The company’s ADN business, which provides one-stop advertising services, has generated over 30 million yuan monthly but faces competition from major players in the advertising market [28]. - The overall sentiment among investors remains cautious, with a focus on the company's ability to balance its game development and advertising revenue streams effectively [10][30].

Core Insights - Embracer Group sold Arc Games and Cryptic Studios for a net gain of $30 million to Project Golden Arc, with significant involvement from Chinese gaming company Xindong Network, which provided a $40 million loan to facilitate the acquisition [1][2][3] Group 1: Embracer Group's Strategic Moves - The sale of Cryptic Studios and Arc Games is part of Embracer's restructuring plan, as these studios generated a net sales of 390 million Swedish Krona but incurred an adjusted EBITDA loss of 174 million Swedish Krona from October 2024 to September 2025 [2][8] - Embracer's high-leverage expansion model led to significant losses and cash flow issues, prompting a series of asset sales since 2024, including notable studios like Gearbox Software [2][8] - The transaction allows Embracer to retain rights to key IPs such as the "Remnant" series and "Partners" game, focusing on core assets [2][8] Group 2: Xindong Network's Strategic Positioning - Xindong Network acted as a strategic financier, providing a $40 million loan to Project Golden Arc, with $25 million as a one-year short-term loan and $15 million as a five-year long-term loan, both at a 6% interest rate [3][9] - The loan agreement includes critical clauses granting Xindong exclusive negotiation rights for future game collaborations or IP transfers, along with 100% equity pledges and asset guarantees [3][9] - This strategy allows Xindong to secure potential collaboration opportunities with classic IPs like "Neverwinter" and "Star Trek," aiming to replicate its success with "Torchlight: Infinite" in the Western market [3][9] Group 3: Transaction Logic and Market Dynamics - The financing approach taken by Xindong avoids the high costs and risks associated with direct acquisitions while establishing strong ties with established Western IPs [4][10] - The partnership enables Project Golden Arc to address its funding gap while allowing the original management team to optimize product lines more flexibly [4][10] - The collaboration leverages Xindong's expertise in mobile game development and platform operations, combined with Cryptic Studios' experience in PC and console game development, potentially revitalizing older IPs [4][10] Group 4: Industry Trends and Future Outlook - Embracer's asset divestiture reflects a broader industry shift from rapid expansion to more refined operations, as seen in recent moves by major players like Microsoft and Sony [5][12] - Xindong's involvement during a downturn in the gaming industry represents a counter-cyclical investment strategy, with success hinging on the ability to convert IP influence into sustainable profit models [5][12] - The outcome of this capital experiment, involving cross-regional collaboration, may set a new benchmark for the global gaming industry as Project Golden Arc progresses through its integration process [6][13]

Investment Rating - The report maintains a "Buy" rating for the media industry, indicating a positive outlook for the sector [7]. Core Insights - The media industry (Shenwan) saw a weekly increase of 0.26%, ranking 8th among industries during the period from December 6 to December 12, 2025. Notable performers included Bona Film Group, Guangxi Radio and Television, Beijing Culture, Sanrenxing, and Huace Film & TV [11][18]. - The report highlights strong performance in AI applications and cultural exports, with a focus on sub-sectors such as gaming, intellectual property (IP), short dramas, and publishing [5][37]. Summary by Sections Market Performance - The media industry experienced a weekly increase of 0.26%, while the Shanghai Composite Index fell by 0.34%. The gaming sector saw a rise of 1.06%, and the film and television sector increased by 5.70% [11][12]. Key Industry Data AI Applications - In November, Deepseek led domestic AI web traffic with 346 million visits, despite a 2.95% month-over-month decline. Other notable AI products included Nano AI Search and Baidu AI Search, with respective monthly visits of 260 million and 52.63 million [22][23]. Gaming - The iOS gaming sales chart for December 13, 2025, was topped by "Honor of Kings," followed by "Gold Shovel Battle" and "Endless Winter." The report also noted that "Whiteout Survival" and "Kingshot" continued to perform strongly in overseas revenue [25][26]. Film - The total box office for the week of December 6-12 was 1.2 billion yuan, with "Zootopia 2" leading at 853 million yuan, accounting for 71% of the weekly total. Upcoming films include "Avatar: Fire and Ashes," set to release on December 19 [33][34]. Investment Recommendations - The report recommends focusing on themes such as AI applications and cultural exports, with specific attention to gaming, IP, short dramas, and publishing. Key companies to watch include Giant Network, Kaiying Network, Yaoji Technology, and others [5][37].

Core Viewpoint - The report by Haitao Securities emphasizes the importance of identifying stocks with potential short-term or long-term performance discrepancies or surprises in AI advancements as a core task for 2026 [1] Group 1: Investment Strategy - The main investment strategy is to focus on value investing in the Hang Seng Technology Index, leveraging volatility from the Hong Kong stock market and short-selling mechanisms [1] - The key to successful operations lies in selecting fundamentally strong companies with sustainable development capabilities [1] Group 2: Recommended Stocks for 2026 - Stocks currently at the bottom or adjusting, with a high likelihood of fundamental reversal in 2026: Meituan, Xiaomi Group (planning next vehicle), BYD Electronics [2] - Stocks expected to benefit from EPS gains and potential valuation uplift: Tencent Holdings, Trip.com Group, JD Health, Lenovo Group [2] - Stocks with controllable elasticity: Alibaba, Baidu Group, SMIC, Hua Hong Semiconductor [2] - AI elastic stocks: Kuaishou, Bilibili, Kingdee International, Horizon Robotics, Xpeng Motors, Yueda Group, NetEase, Sunny Optical Technology, UBTECH [2] - Potential small-cap companies: Inspur Digital Enterprise, Xindong Company, Huiliang Technology [2] Group 3: Individual Stock Insights - Kuaishou, Bilibili, Horizon Robotics, Xpeng Motors, Sunny Optical Technology, UBTECH are highlighted as key stocks with positive outlooks [2] - Inspur Digital Enterprise and Huiliang Technology are noted as quality small-cap stocks with promising prospects [2] - Tencent Holdings is identified as a top pick due to its strong research framework [2] - Alibaba is considered a leading asset in AI technology [2] - Lenovo Group is expected to achieve profitability in its server business next year due to accelerated AIPC penetration [2] - Trip.com Group is positioned well for growth driven by domestic stability and overseas acceleration [2] - JD Health is recognized as a leading player in internet healthcare with a clear growth path [2] - Meituan is noted for its resilience and potential turning point in competitive landscape [2] - Kingdee International's growth is constrained by macroeconomic factors, but AI and overseas expansion provide additional elasticity [2] - Xiaomi Group is expected to see improvements as negative factors gradually clear [2] - SMIC is experiencing an increase in advanced manufacturing proportion and continuous technological breakthroughs [2] - Hua Hong Semiconductor is benefiting from growth driven by computing and consumer electronics [2] - Yueda Group focuses on IP as a core asset, with expectations for further expansion and monetization [2] - NetEase is anticipated to enter a new product cycle with upcoming releases [2] - BYD Electronics is expected to see growth from Apple's foldable phone production and has significant potential in the new energy vehicle and data center sectors [2] - Xindong Company is driven by gaming and Taptap, with expectations for the launch of an overseas version [2]

Investment Rating - The report maintains an "Outperform" rating for the media industry [3] Core Insights - The media sector outperformed the market in November, with the Shenwan Media Index rising by 1.69%, surpassing the CSI 300 Index by 4.14 percentage points, ranking 7th among 31 industries [4][20] - The number of game approvals reached a new high, with 178 domestic games and 6 imported games approved in November, contributing to a total of 1,625 game approvals from January to November, a year-on-year increase of 26.8% [4][28] - The gaming market revenue in October was 31.4 billion yuan, a year-on-year growth of 7.8%, driven by strong product cycles from leading companies [4][32] Summary by Sections Market and Industry Review - The media sector's performance in November was strong, with a 1.69% increase in the Shenwan Media Index, outperforming the CSI 300 Index [4][20] - The current TTM-PE for the Shenwan Media Index is 42.6x, positioned at the 82.2% percentile over the past five years [20][26] Gaming - The number of game approvals in November was the highest in three years, with a total of 178 domestic and 6 imported games approved [28] - The gaming market revenue in October was 31.4 billion yuan, with mobile gaming revenue at 22.6 billion yuan, reflecting a year-on-year growth of 2.4% [32] - The overseas revenue for Chinese self-developed games reached 1.799 billion USD in October, marking an 11.9% year-on-year increase [41] Film and Television - The total box office in November reached 3.553 billion yuan, a year-on-year increase of 89.3%, primarily due to the success of "Zootopia 2" [49] - The top five films in November included "Zootopia 2," which grossed over 2.2 billion yuan within nine days of release [60] - The drama market saw high viewership, with "The Tang Dynasty Mysteries" leading with 1.5 billion views [67] AI Applications - The report highlights advancements in AI video models, including the launch of the O1 video model by Keling AI, which allows users to generate videos from text prompts [79] - PixVerse V5.5 was released, enabling the creation of multi-angle narrative videos [84] - Google's Gemini 3 Pro and Nano Banana Pro were launched, showcasing significant improvements in AI capabilities [91] Investment Recommendations - The report suggests focusing on the gaming sector's new product cycles and AI applications, recommending companies such as Giant Network, G-bits, and K-Game Network [96] - The December investment portfolio includes Giant Network, K-Game Network, Bilibili, and HuiLiang Technology [7]

Summary of Key Points from the Conference Call Industry Overview - The gaming sector's valuation has reached a lower limit of 15 times, with expectations of maintaining high prosperity and performance growth certainty through 2026, making it an attractive investment opportunity [1][3][25] - The A-share market recommends a "3+2" combination: Giant Network, Kaiying Network, and Century Huatong as stable fundamentals; Gibit and 37 Interactive are positioned lower but showing recent improvements [1][4] Company-Specific Insights Tencent - Expected to launch multiple mid-sized new games in 2026, with a diverse range of genres [7] - Notable titles include "Under One Person," "Rock Kingdom World," and "Monster Hunter Traveler" [7] NetEase - Anticipates additional revenue of 2-3 billion from international IP adaptations and domestic MMO games [2][24] - Key upcoming titles include "Forgotten Sea" and "Infinite," with the former developed by the team behind "Identity V" [7][24] Giant Network - "Famous General Kill" is expected to contribute 200-300 million in profit, with "Supernatural Action Group" potentially increasing annual revenue to 7-8 billion if successful during the Spring Festival [10][12] Kaiying Network - The "Legend Box" platform is driving growth, with DAU expected to reach 650,000 to 700,000 by the end of 2026, and annual advertising revenue projected at around 2.4 billion [10][13] Bilibili - Strong growth in advertising business, with expectations to outperform the overall internet advertising growth rate [21] - Anticipated game revenue growth in the low double digits, with "Three Kingdoms Hundred Generals Card" projected to generate 1-1.5 billion [21] Gibit - Recent performance impacted by a decline in revenue from "Sword of the World," but new game "Nine Mu of the Wild" expected to contribute 1-1.5 billion [19][20] Heart Company - Facing stock price pressure but has potential due to rapid progress in programmatic advertising, with profits expected to reach 150-200 million in 2026 [22] Market Trends and Predictions - The gaming sector is expected to maintain strong growth certainty compared to other sectors, with a focus on identifying high-certainty investment targets [25] - The first quarter of 2026 is anticipated to be stable, with significant product launches concentrated in the summer [11][25] Additional Insights - The competitive landscape is expected to increase in 2026, but companies will focus on their strengths without excessive suppression of smaller firms [11] - The overall sentiment is optimistic for the gaming industry, with a recommendation for investors to strategically select stocks based on performance certainty and market conditions [25]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年11月30日 | | | | 狀態: | 新提交 | | --- | --- | --- | --- | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | | | | | 公司名稱: | 心动有限公司 | | | | | | | 呈交日期: | 2025年12月3日 | | | | | | | I. 法定/註冊股本變動 | | | | | | | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | 於香港聯交所上市 (註1) | | 是 | | 證券代號 (如上市) | 02400 | 說明 | | | | | 本月底法定/註冊股本總額： USD 100,000 第 1 頁 共 10 頁 v 1.1.1 FF301 III.已發行股份及/或庫存股份變動詳情 (A). 股份期權（根據發行人的股份期權計劃） | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- ...

Group 1: Stock Movements and Market Reactions - Hengdeli (03389) resumed trading and rose over 10% after announcing a voluntary cash offer at HKD 0.14 per share for all issued shares, excluding those already owned by the offeror and Mr. Feng Jiaqiao [1] - Anjuke Food (02648) increased nearly 5% following a report from Huachuang Securities after attending its 2025 first extraordinary general meeting, where management addressed operational and product channel strategies [1] - Copper stocks collectively surged, with Jiangxi Copper (00358) up 8.08%, China Daye Nonferrous Metals (00661) up 8.6%, and others, driven by a significant rise in LME copper futures, which exceeded USD 11,200, marking a historical high [1] Group 2: Industry-Specific Developments - Lichun Resources (02245) rose over 3% as reports indicated a major Chinese-controlled nickel smelter in Indonesia is cutting production due to tailings management issues [2] - Yuhua Education (06169) saw a nearly 1.89% increase after reporting a revenue of RMB 2.497 billion for the year ending August 31, 2025, a 5.4% year-on-year increase, with adjusted net profit rising 95.6% to RMB 914 million [2] - Jiantao Laminates (01888) increased nearly 7% as AI-driven demand for high-end PCBs surged, leading to price increases for key materials [2] Group 3: Strategic Partnerships and Collaborations - ZTE Corporation (00763) rose over 11% following reports of an upcoming AI phone launch in collaboration with ByteDance [2] - JD Health (06618) increased nearly 4% as demand for respiratory disease testing kits surged with the flu season, indicating a growing market for health-related products [3] - Xindong Company (02400) rose over 3% after announcing a strategic cooperation agreement with Golden Arc, including a financing agreement for USD 40 million [3] Group 4: Financial Performance Highlights - Bawang Tea (CHA.US) rose 6.09% after reporting Q3 results with a total GMV of RMB 7.93 billion and net income of RMB 3.208 billion, with overseas GMV increasing by 75.3% year-on-year [7]

公告称，目标集团亦拥有一系列知名的游戏知识产权。融资协议为订约方建立长期业务关系奠下基础， 促进未来商机的探索，而本公司认为此对本公司及股东整体有利。因此，本公司认为，根据融资协议向 Golden Arc提供融资为提升公司于海外游戏行业的投资的方法之一，有助于公司日后探索商机，故订立 融资协议乃属于本公司日常业务过程。 本文源自：智通财经网 智通财经获悉，心动公司(02400)早盘涨超6%，截至发稿，涨7.13%，报123.2港元，成交额2.02亿港 元。 消息面上，心动公司发布公告，于2025年11月26日，XD Entertainment(为本公司的间接全资附属公司)与 Golden Arc订立战略合作协议，XD Entertainment与 Golden Arc同意建立战略合作关系;及与Golden Arc订 立融资协议，XD Entertainment同意向Golden Arc提供合共4000万美元的定期贷款融资。融资协议的条 款(包括适用利率)乃由本公司与Golden Arc经计及现行市场条款后公平磋商厘定。 ...

Core Viewpoint - Xindong Company (02400.HK) experienced a significant increase in stock price, rising over 7% in early trading, indicating positive market sentiment towards the company [1] Group 1 - The stock price of Xindong Company rose by 7.13%, reaching 123.2 HKD [1] - The trading volume amounted to 202 million HKD, reflecting strong investor interest [1]