Investment Rating - Investment rating: Positive (maintained) [1] Core Insights - The brain-computer interface (BCI) technology is entering a phase of large-scale production, with gaming as a significant application area, expected to benefit continuously [3] - The integration of AI in gaming is enhancing multi-modal capabilities and innovative forms, potentially opening up new industry spaces [3] - The upcoming gaming season, with new game launches and updates to existing games, is anticipated to drive revenue growth [4] Summary by Sections Brain-Computer Interface Developments - BCI technology connects the human brain with external devices for information exchange, enabling previously disabled individuals to engage in gaming through "brain-controlled" interfaces [3] - The launch of China's first fully implanted, wireless BCI product by Shanghai Brain Tiger Technology marks a significant breakthrough in core technology [3] - Companies like 37 Interactive Entertainment and Century Huatong are actively investing in BCI-related projects, indicating a growing interest in this field [3] AI Integration in Gaming - AI is enhancing various aspects of game development, from art resource generation to core creative areas like gameplay design and narrative structure [3] - Tencent reported a 40% reduction in animation production time due to AI integration, showcasing efficiency gains [3] - The number of games utilizing generative AI on the Steam platform has increased significantly, indicating a trend towards AI-enhanced gaming experiences [3] Upcoming Gaming Season - Major game releases and updates are scheduled for January, including anniversary events and new collaborations with popular IPs [4] - The report suggests focusing on the gaming sector due to its favorable valuation and expected demand surge during the holiday season [4] - Recommended companies include Giant Network, Xindong Company, and Tencent Holdings, among others, as potential beneficiaries of this trend [4]

Industry Insights - AppMagic released the top 15 new mobile games by revenue for 2025, including titles like "Kingshot," "Delta Action," and "Yanyun Sixteen Sounds." Notably, no new game reached the $1 billion revenue mark, and the total revenue for the top ten games dropped by 27% to $2.2 billion compared to the previous year [2] - The Steam annual awards recognized "Hollow Knight: Silksong" as the Game of the Year, with other notable awards going to "Midnight Walk" for Best VR Game and "Hades 2" for Best Steam Deck Game [3] - The National Radio and Television Administration initiated a month-long campaign starting January 1, 2026, to address the spread of "AI-modified" videos, focusing on content that distorts original narratives and promotes inappropriate values [6][7] Company Developments - Xindong Company announced the acquisition of the "Torchlight" series IP for $37.18 million (approximately 260 million RMB) through its wholly-owned subsidiary XDEntertainment [4] - The developer of "The Legend of Sword and Fairy 4: Remake" stated that it has not received the Xbox development kit despite joining the ID@Xbox program at the beginning of 2025, leading to a halt in new game proposals [5] - IG won the 2025 League of Legends Demacia Cup, defeating JDG with a score of 3-0, marking their third championship win in this tournament [8]

Investment Rating - The industry investment rating is maintained as "Positive" [5] Core Insights - The total supply of game licenses continues to increase, with a significant rise in new products expected in 2026. The number of game licenses issued in 2025 reached 1,771, a 25.07% increase from 1,416 in 2024, marking a new high since the regulations were established in 2018 [8] - The approval process for imported game licenses has been optimized, with the average number of licenses issued per batch increasing from approximately 80 in 2023 to 160 in the second half of 2025, indicating a supportive policy environment [8] - The number of cross-platform headlining games has significantly increased, with 1,729 mobile games, 159 client games, 19 web games, and 8 console games licensed in 2025. The growth of cross-platform products is expected to continue, driven by high-end engine usage [8] - The gaming market is expected to see intense competition in genres such as simulation, RPG, and open-world games in 2026, with a notable presence of low ARPU (Average Revenue Per User) games that may exhibit stronger resilience against deflationary pressures [8] Summary by Sections Investment Suggestions and Targets - The report suggests focusing on companies with a reserve of cross-platform headlining projects and those with a strong portfolio of enduring games that have high daily active users (DAU) but low ARPU. Recommended stocks include Tencent Holdings (00700, Buy), NetEase (09999, Buy), and others [3] Industry Dynamics - The gaming industry is experiencing a robust growth trajectory, with a notable increase in the number of game licenses and an improved business environment for game developers due to policy support [8]

Core Viewpoint - Xindong Company has completed the acquisition of the global intellectual property rights for the classic action role-playing game series "Torchlight," gaining control over its trademark, copyright, and related derivative rights [1][3]. Group 1: Acquisition Details - The acquisition allows Xindong to take over the operation and development of the "Torchlight" IP, which has a history of nearly twenty years [1]. - The deal was finalized with relevant parties, marking a significant step for Xindong in the gaming industry [1]. Group 2: Game Series Background - The "Torchlight" series, launched in 2009, has become a benchmark in the ARPG field, with global sales exceeding 10 million copies [3]. - The latest installment, "Torchlight: Infinite," was released in 2022, featuring free-to-play mechanics, seasonal updates, and cross-platform multiplayer capabilities, expanding the IP's influence into mobile and global markets [3]. Group 3: Market Implications - The acquisition may alter the competitive landscape in the ARPG sector, which is currently dominated by established IPs like "Diablo" and "Path of Exile" [3]. - "Torchlight: Infinite" has differentiated itself with its seasonal model and light monetization strategy, positioning it uniquely in the market [3]. - The ability of Xindong to integrate the IP and capture additional market share will be a focal point for industry observers [3].

Core Viewpoint - Xindong Company (02400) has seen a stock increase of over 3%, currently trading at 65.4 HKD with a transaction volume of 42.34 million HKD, following the announcement of an asset acquisition deal [1] Group 1: Acquisition Details - Xindong's wholly-owned subsidiary, XDEntertainment, has entered into an asset transfer agreement to acquire all rights, ownership, and interests related to the game and associated intellectual property, specifically the "Torchlight" IP, for a total consideration of 37.18 million USD [1] - Upon completion of the asset transfer, Xindong will fully own the intellectual property, eliminating the need for royalty payments related to it [1] Group 2: Financial Impact - The acquisition is expected to directly enhance the profit margin of "Torchlight: Infinite," thereby improving the overall profitability of the group and providing better returns for shareholders [1] - With complete ownership of the "Torchlight" IP, the group will be able to independently develop sequels, derivative works, and cross-platform products, further enriching its product portfolio and expanding new revenue sources [1]

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 ...