Core Viewpoint - Xindong Company (02400) experienced a significant stock price increase of over 6%, reaching a rise of 7.13% to HKD 123.2, with a trading volume of HKD 202 million, following the announcement of a strategic cooperation agreement with Golden Arc [1] Group 1: Strategic Cooperation - Xindong Company announced a strategic cooperation agreement between its indirect wholly-owned subsidiary, XD Entertainment, and Golden Arc, aimed at establishing a long-term business relationship [1] - The agreement includes a financing arrangement where XD Entertainment will provide a total of USD 40 million in term loan financing to Golden Arc [1] Group 2: Business Implications - The financing agreement is expected to lay the foundation for a long-term business relationship and promote the exploration of future business opportunities [1] - The target group possesses a range of well-known gaming intellectual properties, which may enhance Xindong Company's position in the overseas gaming industry [1] - The company views this financing as a method to enhance its investment in the overseas gaming sector and facilitate future business exploration [1]

Core Viewpoint - The company, Xindong Company, has seen its stock price increase by over 6%, reaching a rise of 7.13% to HKD 123.2, with a trading volume of HKD 202 million, following the announcement of a strategic cooperation agreement and financing deal with Golden Arc [1] Group 1: Strategic Cooperation - Xindong Company announced a strategic cooperation agreement between its indirect wholly-owned subsidiary, XD Entertainment, and Golden Arc, aimed at establishing a long-term business relationship [1] - The agreement includes a financing arrangement where XD Entertainment will provide a total of USD 40 million in term loan financing to Golden Arc [1] Group 2: Business Implications - The financing agreement is expected to lay the foundation for future business opportunities and is considered beneficial for the company and its shareholders [1] - The company views this financing as a method to enhance its investment in the overseas gaming industry, facilitating the exploration of future business opportunities [1]

Core Viewpoint - The company has entered into a strategic cooperation agreement and financing agreement with Golden Arc, aiming to enhance its investment in the overseas gaming industry and explore future business opportunities [1][2] Group 1: Strategic Cooperation Agreement - XD Entertainment, a wholly-owned subsidiary of the company, has established a strategic partnership with Golden Arc [1] - The strategic cooperation agreement allows both parties to explore business opportunities in areas such as research and development [2] Group 2: Financing Agreement - The financing agreement involves the company providing a total of $40 million in term loan financing to Golden Arc [1] - The terms of the financing agreement, including applicable interest rates, were determined through fair negotiations based on current market terms [1] - The financing is intended to support Golden Arc in acquiring a target group that operates a diversified portfolio of games, including online service games like Star Trek Online and Neverwinter, as well as paid games like Hyper Light Breaker [2] - The financing agreement is seen as a foundation for establishing a long-term business relationship and promoting future business opportunities [2]

Core Viewpoint - The company has entered into a strategic cooperation agreement and a financing agreement with Golden Arc, aiming to enhance its presence in the overseas gaming industry and explore future business opportunities [1][2]. Group 1: Strategic Cooperation Agreement - XD Entertainment, a wholly-owned subsidiary of the company, has established a strategic partnership with Golden Arc to explore business opportunities in areas such as research and development [2]. - The strategic cooperation agreement serves as a framework for both parties to collaborate on various business ventures [2]. Group 2: Financing Agreement - The financing agreement involves a total loan of $40 million to Golden Arc, which is intended to support its acquisition of a target group with a diversified gaming portfolio [1][2]. - The target group operates well-known online service games like Star Trek Online and Neverwinter, as well as paid games such as Hyper Light Breaker, and holds a range of valuable gaming intellectual properties [2]. - The financing agreement is seen as a foundation for establishing a long-term business relationship between the parties, promoting future business opportunities [2].

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。 XD Inc. 心动有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2400） 有關提供融資的 須予披露交易 及 與GOLDEN ARC的戰略合作 戰略合作及提供融資 董事會欣然宣佈，於2025年11月26日，XD Entertainment（為本公司的間接全 資 附 屬 公 司）(1)與Golden Arc訂立戰略合作協議，據此，XD Entertainment與 Golden Arc同意建立戰略合作關係；及(2)與Golden Arc訂立融資協議，據此， XD Entertainment同意向Golden Arc提供合共40,000,000美元的定期貸款融資。 上市規則的涵義 戰略合作協議 戰略合作協議並不構成上市規則第14章項下本公司的須予公佈交易，亦不構 成上市規則第14A章項下的關連交易。股東及投資者務須注意，戰略合作協 議項下擬進行的交易仍有待訂立最終業務協議後方可作實。倘訂立最終業務 ...

Company Background - Xindong Company is a global game developer and publisher with extensive experience in research and development, publishing, and agency operations. The company's major games include "Let's Go, Muffin," "Xindong Town," "Iser," "Ragnarok M," and "Torchlight: Infinite." According to Sensor Tower, the company is expected to enter the global mobile game publisher revenue ranking TOP 100 by October 2025, ranking 22nd among Chinese mobile game publishers. The company also owns TapTap, the largest comprehensive game community platform in China, which provides a full-service experience for players and developers [1][2]. Self-Developed Game Performance - Since 2024, the company's self-developed games such as "Let's Go, Muffin," "Xindong Town," and "Iser" have shown impressive performance, reflecting the high success rate from refining quality games and precise product positioning. The international version of "Xindong Town" and new products like "Ragnarok RO: Guardians of Eternal Love 2" are expected to continue driving growth [2]. TapTap Platform Growth and Commercialization - TapTap exhibits a "user-game" dual-sided effect, with a zero-revenue-sharing policy and a considerable user base attracting many quality games to launch and promote on the platform. The ongoing opening of the iOS application ecosystem in China is expected to further expand TapTap's growth potential. The launch of the TapTap PC version will help broaden the user base and market for multi-platform games, including PC and independent games. The TapAND business has been successfully initiated and has vast market potential. In the first half of 2025, TapTap's revenue reached 1.01 billion, representing a year-on-year increase of 37.6%. The company forecasts TapTap's revenue growth of 35.5%, 25.0%, and 14.6% for 2025, 2026, and 2027, respectively [3]. Profit Forecast, Valuation, and Rating - As revenue scales grow, the operating leverage effect is expected to be released, leading to a net profit growth rate for the company that exceeds revenue growth. The forecast for the company's net profit attributable to shareholders is 1.7 billion, 2.12 billion, and 2.55 billion for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 111.2%, 24.3%, and 20.0%. The corresponding EPS is projected to be 3.44, 4.28, and 5.16 yuan. Based on industry valuation, a target price of 103.2 HKD is set for 2026, with an initial "buy" rating [4].

Investment Rating - The industry rating is "Recommended" [4] Core Insights & Investment Recommendations - Unity and Epic Games announced a strategic partnership to create an open and interoperable ecosystem for game engines, allowing developers to publish Unity games on the Fortnite platform with over 500 million registered accounts, enhancing user reach and commercialization efficiency [2][21] - NVIDIA's quarterly performance exceeded expectations, with data center revenue growing by 289% year-on-year, reflecting strong demand for AI infrastructure [3][22] - The report suggests focusing on investment opportunities in leading internet companies in Hong Kong, the gaming industry, and the film and cultural tourism sectors, driven by consumption policies and technological empowerment [3][22] Sub-industry Data Film Industry - The top three films by box office this week are "Demon Slayer: Infinity Castle" with 134.67 million yuan (42.9% market share), "Wild Era" with 75.67 million yuan (24.1%), and "Now You See Me 3" with 55.44 million yuan (17.7%) [23][24] Gaming Industry - The top three iOS games by revenue are "Teamfight Tactics," "Dungeon & Fighter: Origin," and "Honor of Kings," while the top three Android games are "Heart Town," "Sword and Magic Legend," and "My Leisure Time" [25] TV Series Industry - The top three TV series by broadcasting index are "Tang Dynasty Ghost Stories: Chang'an," "Four Happiness," and "Phoenix Platform," with indices of 85.5, 82.4, and 81.8 respectively [26][27] Variety Shows & Animation - The top variety show is "Now Departing Season 3" with a broadcasting index of 82.4, followed by "Wonderful Night Season 2" and "Flowers and Youth Together" [28][29] - The top three animated shows by viewership index are "Xian Ni" with 212.8, "Happy Hammer" with 191.6, and "Swallowing the Starry Sky" with 187.2 [30]

Investment Rating - The report assigns a "Buy" rating for the company, marking it as a first-time coverage [1]. Core Insights - The company is positioned for growth through a dual engine of self-developed games and the TapTap platform, which serves as a comprehensive game community and distribution platform [1][2]. - The self-developed games have shown strong performance, with titles like "Let's Go Muffin" and "Heart Town" driving revenue growth, while the TapTap platform is expected to expand significantly due to its user base and monetization potential [2][34]. Summary by Sections Company Overview - The company is a global game developer and publisher with a diverse portfolio, including popular titles such as "Let's Go Muffin," "Heart Town," and "Torchlight: Infinite." It ranks 22nd among mobile game publishers in China and is expected to enter the global top 100 by October 2025 [1]. Investment Logic - **Self-Developed Game Capability**: The company has consistently validated its ability to develop successful games, with a strong product matrix and ongoing growth from new releases and international expansions [2][12]. - **TapTap Platform Growth**: The platform benefits from a user-game dual effect, with a zero-revenue-sharing policy attracting quality games and users. The introduction of a PC version and the expansion of the iOS ecosystem are expected to further enhance growth [2][34][39]. Financial Forecasts and Valuation - The company is projected to achieve significant profit growth, with net profits expected to reach 1.7 billion, 2.1 billion, and 2.55 billion CNY in 2025, 2026, and 2027, respectively, reflecting growth rates of 111.2%, 24.3%, and 20.0% [2][46]. - The target price is set at 103.2 HKD, based on a 22x PE ratio for 2026, indicating a strong valuation relative to industry peers [2][50]. Revenue Projections - Total revenue is expected to grow from 3.39 billion CNY in 2023 to 8.84 billion CNY by 2027, with a compound annual growth rate (CAGR) of 31.0% from 2025 to 2027 [46][47]. - Game revenue is projected to increase significantly, driven by successful titles and new game launches, while information service revenue from TapTap is also expected to grow robustly [46][47]. Cost and Margin Expectations - The company anticipates improving gross margins, with overall gross margins projected to rise from 69.4% in 2024 to 76.3% by 2027, driven by a higher proportion of self-developed games [48][49].

Company Overview - The game "Heart Town" will begin overseas testing on November 5, 2026, with an expected iOS App Store launch date of January 8, 2026 [1] - The company has updated its game revenue and Tap performance metrics [1] Game Performance - "Torchlight" has shown strong performance in its new season launched in October, indicating a potential increase in player engagement [1] - "Ither" has had a lackluster performance in the East Asia region since its September launch, primarily due to issues with balance and user matching, leading to limited revenue contribution for the year [1] - "Ragnarok: Origin" has also seen a decline in overseas performance, negatively impacting profits [1] Future Outlook - The primary focus for 2026 will be on the overseas performance of "Heart Town," which is expected to have a higher initial commercialization level compared to its domestic counterpart [2] - "Ither" is anticipated to contribute throughout the year, while the progress of the open-world game "Ragnarok 2" is also being monitored [2] - TapTap is expected to see a quarter-on-quarter increase in user engagement in the second half of 2025, with stable revenue performance anticipated [2] Advertising and Business Development - The company is developing its Dirichlet advertising alliance, focusing on intelligent configuration and refined operations across various advertising platforms [2] Profit Forecast and Valuation - Due to the underwhelming performance of "Ither" in East Asia, the company has revised its net profit forecasts for 2025 and 2026 down by 13.5% and 13.1% to 1.4 billion and 1.7 billion respectively [2] - The target price has been adjusted down by 4% to HKD 89.5, reflecting a 23x P/E for 2026, with an upside potential of 30% [2]

Group 1 - The Hong Kong stock market indices opened higher on November 12, with active performance from certain technology stocks, particularly the Hong Kong Technology 30 ETF (513160) which rose by 0.31% during the session with a trading volume exceeding 780 million HKD [1] - Notable gainers among the constituent stocks included Xiaomi Group-W, which increased by over 2%, along with other companies like AAC Technologies and Sunny Optical Technology, each rising by more than 1% [1] - The Hong Kong Technology 30 ETF has seen continuous net inflows over the past two trading days, accumulating over 18 million HKD from November 10 to 11, and over 1.3 billion HKD in the last five trading days [1] Group 2 - The Hong Kong Technology 30 ETF closely tracks the Hang Seng Hong Kong Stock Connect China Technology Index, which includes mainland companies engaged in technology business and listed in Hong Kong, with top holdings including SMIC, Kuaishou-W, Tencent Holdings, Alibaba-W, and Xiaomi Group-W [1] - Significant inflows from southbound funds have been observed, with a net purchase amount reaching 6.653 billion HKD on November 10, marking the 14th consecutive trading day of net buying in Hong Kong stocks [1] - Year-to-date, southbound funds have net purchased over 1.3 trillion HKD in Hong Kong stocks, setting a new annual record since the launch of the Hong Kong Stock Connect in 2014, significantly surpassing last year's total net purchases [1] Group 3 - According to Huaxi Securities, the main focus for net inflows in cross-border ETFs in November has been on Hang Seng Technology and Hong Kong innovative pharmaceuticals, indicating a potential stabilization in these sectors [2] - Guotai Junan Securities highlighted the importance of monitoring the U.S. government reopening and economic data in the short term, while suggesting that the influx of new capital and the gathering of quality assets in the Hong Kong market could lead to new highs, with technology stocks being a key focus [2]