Group 1 - The game "Wen Jian Chang Sheng" is planned to be launched in the fourth quarter of 2025 in regions such as Hong Kong, Macau, and South Korea [2] - The game "Jiu Mu Zhi Ye" has obtained its license and is currently in the testing and adjustment phase, with the specific launch date yet to be determined [2] - Investors are encouraged to follow official information from Thunder Game for updates on the launch of "Jiu Mu Zhi Ye" [2]

Summary of Key Takeaways from Citi's 2025 China Online Gaming Tour Industry Overview - The report focuses on the **China Online Gaming** industry, highlighting key players such as **Century Huatong**, **Giant Network**, **G-Bits**, and **Kingnet**. Key Company Insights Century Huatong - **Century Games** has emerged as a leading player in the casual strategy gaming sector, with monthly grossing between **US$350-400 million** driven by innovative content and effective traffic acquisition strategies [2][14]. - The company has a high product hit rate, with successful titles like **Whiteout Survival** and **Kingshot**, contributing to an extended profit growth cycle expected until **2028-29** [1][20]. - Management expects **incremental IP licensing revenues** to begin in **3Q25**, further enhancing profitability [23]. Giant Network - **Supernatural Action** is positioned as a potential large DAU title, with over **2 hours** of average daily time spent per user, driven by frequent content updates and a strong female gamer demographic [3][30]. - The game has achieved a grossing of over **RMB 500 million** in August, indicating strong user engagement [30]. - Management emphasizes the importance of social attributes and game quality over heavy traffic acquisition costs, achieving a **20%** traffic acquisition cost relative to grossing [31]. G-Bits - G-Bits is focusing on expanding its market presence in **Hong Kong, Macau, Taiwan, Japan**, and exploring Western and Korean markets [4]. - The company plans to launch **Wen Jian Chang Sheng** in **2H25**, with a focus on cultural adaptation for different markets [46]. - G-Bits maintains a shareholder return policy with a **70%+** earnings payout, supported by a strong cash position of over **RMB 4 billion** [54]. Kingnet - Kingnet has established three core business pillars: distribution, development of innovative games, and investment in IP [58]. - The upcoming renewal of the **Chuanqi IP** on **September 19** is expected to boost information services revenues significantly [60][65]. - Kingnet is also investing in AI initiatives, including the launch of an AI companion application, **EVE**, which has shown promising retention rates during testing [66][67]. Industry Trends and Outlook - The gaming industry is experiencing **structural tailwinds** such as favorable policy support and improved execution capabilities, with increasing interest in how AI is reshaping the sector [6]. - Despite rising traffic acquisition costs, companies are focusing on enhancing game quality and leveraging AI to improve operational efficiency [53][68]. - The overall sentiment among investors is positive, with expectations of continued growth and profitability across the sector, particularly for companies like Century Huatong and Giant Network [25][38]. Additional Insights - The report indicates a competitive landscape where companies are increasingly focusing on **user engagement** and **content innovation** to maintain market share [17][32]. - Management teams across these companies emphasize the importance of adapting to market demands and leveraging data analytics for better decision-making [52][70]. This summary encapsulates the key points from the Citi's 2025 China Online Gaming Tour, providing insights into the performance and strategies of leading companies in the industry.

Market Overview - The average stock price of A-shares is 13.49 yuan, with 165 stocks priced over 100 yuan as of September 18 [1] - The Shanghai Composite Index closed at 3831.66 points, down 1.15% [1] - Among stocks priced over 100 yuan, the highest closing price is for Kweichow Moutai at 1467.96 yuan, down 1.68% [1] Performance of High-Value Stocks - Stocks priced over 100 yuan had an average increase of 0.67%, outperforming the Shanghai Composite Index by 1.82 percentage points [1] - 77 stocks in this category increased in price today, while 88 stocks decreased [1] Recent Trends in High-Value Stocks - Over the past month, high-value stocks have averaged a 25.44% increase, compared to a 3.65% increase in the Shanghai Composite Index [2] - Notable performers include Haoen Automotive and Cambridge Technology, with increases of 171.60% and 164.53%, respectively [2] - Year-to-date, the average increase for these stocks is 98.96%, surpassing the Shanghai Composite Index's increase of 84.64% [2] New High-Value Stocks - Two stocks, Changfei Fiber and Huafeng Technology, have recently surpassed the 100 yuan mark, closing at 109.65 yuan and 106.21 yuan, with increases of 10.00% and 20.00%, respectively [2] Industry Distribution of High-Value Stocks - The electronics sector has the highest concentration of high-value stocks, with 53 stocks, accounting for 32.12% of the total [2] - Other significant sectors include machinery equipment with 20 stocks (12.12%) and computer technology with 19 stocks (11.52%) [2] Stock Market Composition - Among the high-value stocks, 40 are from the main board, 50 from the ChiNext board, 3 from the Beijing Stock Exchange, and 72 from the Sci-Tech Innovation Board, with the latter making up 43.64% of the total [2]

Market Overview - On September 18, the gaming sector declined by 1.56%, with Xinghui Entertainment leading the drop [1] - The Shanghai Composite Index closed at 3831.66, down 1.15%, while the Shenzhen Component Index closed at 13075.66, down 1.06% [1] Individual Stock Performance - Xinghui Entertainment (300043) closed at 7.17, down 6.88%, with a trading volume of 2.0662 million shares and a turnover of 1.518 billion yuan [2] - Other notable declines include: - Shenzhou Taiyue (300002) down 4.95% to 14.20 with a turnover of 1.763 billion yuan [2] - Bingchuan Network (300533) down 4.55% to 40.52 with a turnover of 994 million yuan [2] - Conversely, Xunyou Technology (300467) saw an increase of 5.61%, closing at 27.10 with a turnover of 927 million yuan [1] Capital Flow Analysis - The gaming sector experienced a net outflow of 1.72 billion yuan from major funds, while retail investors contributed a net inflow of 1.439 billion yuan [2] - Speculative funds saw a net inflow of 281 million yuan into the gaming sector [2]

Group 1 - The gaming sector has shown strong performance recently, driven by new product release expectations and industry recovery, with the gaming ETF (159869) gaining nearly 1.5% [1] - Major stocks in the gaming ETF include Xunyou Technology (300467) leading with over 10% increase, followed by Beiwai Technology (002148) with nearly 6% rise, and others like Kaiying Network (002517), G-bits (603444), Baotong Technology (300031), and Giant Network (002558) also showing significant gains [1] - The gaming ETF has seen a net inflow of funds for two consecutive days, accumulating a total of 5.92 billion yuan [1] Group 2 - In the first half of 2025, the gaming sector achieved revenue of 54.452 billion yuan, a year-on-year increase of 22.17%, with net profit rising 74.95% to 8.052 billion yuan [2] - The profit increase is attributed to leading companies like Perfect World (002624) focusing on core product operations and self-developed IP iterations, alongside contributions from hit games and new game version updates [2] - The overall profitability of the gaming sector improved, with gross margin and net margin rising by 0.37 percentage points and 4.13 percentage points to 67.80% and 14.74%, respectively [2] Group 3 - Wanlian Securities notes that the media sector's overall performance is recovering, with significant improvement in the gaming sector's performance in Q2 2025 [3] - The long-term outlook for the industry is positive, with expectations of recovery in industry prosperity driven by gradual restoration of content supply, deepening AI technology empowerment, policy support, and consumer recovery [3] - Companies in the film and television industry, as well as those in the gaming sector showing strong performance, are recommended for attention, along with those involved in digital assets and AIGC-related technologies [3]

Group 1 - The gaming sector experienced a significant rally on September 18, with Xunyou Technology rising over 10% [1] - Giant Network and 37 Interactive Entertainment both saw increases of over 3% [1] - Perfect World and Jiayuan Technology also followed the upward trend [1]

Group 1: Industry Performance - The gaming industry index closed up 2.13% on September 17, with key stocks like Kaiying Network rising by 9.01% and others like Giant Network and Xunyou Technology increasing by over 4% [1] - Year-to-date, the gaming industry index has increased by 82.61%, ranking third among all Shenwan secondary industries, making it one of the best-performing sectors this year [1] - Six gaming stocks have doubled in price compared to the end of last year, with ST Huatuo, Giant Network, and 37 Interactive Entertainment showing significant cumulative increases of 286.19%, 261.23%, and 157.39% respectively [1] Group 2: Market Growth - The gaming market revenue reached 1970.84 billion yuan from January to July 2025, marking a year-on-year growth of 12.58% [2] - Projected revenues for the gaming market from 2022 to 2024 are 2658.84 billion yuan, 3029.64 billion yuan, and 3257.83 billion yuan respectively, indicating robust growth potential [2] Group 3: Esports Development - The esports industry in China generated 127.61 billion yuan in revenue from January to June 2025, reflecting a year-on-year increase of 6.1% [4] - The Chinese esports industry is expanding its influence overseas, particularly in regions like Latin America, alongside traditional markets in East and Southeast Asia [4] Group 4: Supply and User Growth - The steady growth in industry revenue is attributed to the continuous release of new games, with a noticeable reduction in the approval cycle for game licenses [5] - As of June 2025, the number of online game users in China reached 584 million, an increase of 26.92 million from December 2024, representing 52% of the total internet users [7] - The proportion of female gamers has risen to 48%, up by 3.1 percentage points from the end of 2024, contributing to market expansion and innovation [7] Group 5: International Expansion - The overseas business revenue of 20 A-share gaming companies reached 21.823 billion yuan in the first half of 2025, a year-on-year increase of 30.43% [9] - Notably, ST Huatuo, Kunlun Wanwei, and 37 Interactive Entertainment reported overseas revenues exceeding 1 billion yuan, with ST Huatuo achieving 89.58 billion yuan, accounting for 52.06% of its total revenue [10]

Market Performance - The Shanghai Composite Index rose by 0.37%, with 92 stocks closing at historical highs [1] - Among the tradable A-shares, 2,504 stocks increased in price, accounting for 46.19%, while 2,757 stocks decreased, making up 50.86% [1] - The average price increase for stocks that reached historical highs was 6.29% [1] Historical Highs - A total of 92 stocks reached historical closing highs today, with 45 from the main board, 31 from the ChiNext, and 11 from the Sci-Tech Innovation Board [1] - The sectors with the most stocks hitting historical highs included machinery equipment (23 stocks), automotive (18 stocks), and electronics (14 stocks) [1] Stock Highlights - Notable stocks that hit historical highs include Hongxi Technology (30.56 yuan, +29.99%), Sanwei Equipment (20.00 yuan, +29.95%), and Jingzhida (142.80 yuan, +15.16%) [2][3] - The stock with the highest closing price was Gibit at 555.06 yuan, up 2.48% [1] Capital Flow - The net inflow of main funds into stocks reaching historical highs totaled 2.142 billion yuan, with significant inflows into Ningde Times (1.243 billion yuan), Northern Copper (497 million yuan), and Haoneng Co. (327 million yuan) [2] - Stocks with the highest total market capitalization among those reaching historical highs included Ningde Times (1.661 trillion yuan), Sunshine Power (292.3 billion yuan), and Sanhua Intelligent Control (156.4 billion yuan) [2] Innovation and Performance - The ability to reach historical highs is considered an indicator of stock strength, with stocks like Bidetech achieving 15 new highs in the past month [2] - Other stocks with multiple new highs include Hengsheng Energy, Huagong Technology, and Zhejiang Rongtai, each with 12 new highs in the same period [2]

Market Overview - On September 17, the gaming sector rose by 2.02%, with Kaiying Network leading the gains [1] - The Shanghai Composite Index closed at 3876.34, up 0.37%, while the Shenzhen Component Index closed at 13215.46, up 1.16% [1] Individual Stock Performance - Notable gainers included: - Xinying Network (002517) with a closing price of 28.06, up 9.01% and a trading volume of 563,800 shares, totaling 1.514 billion yuan [1] - Giant Network (002558) closed at 45.38, up 4.49% with a trading volume of 459,700 shares, totaling 2.076 billion yuan [1] - Xunyou Technology (300467) closed at 25.66, up 4.44% with a trading volume of 180,400 shares, totaling 453 million yuan [1] Fund Flow Analysis - The gaming sector experienced a net outflow of 637 million yuan from institutional investors, while retail investors saw a net inflow of 330 million yuan [2][3] - Key stocks with significant fund flows included: - Shenzhou Taiyue (300002) with a net inflow of 141 million yuan from institutional investors [3] - Perfect World (002624) saw a net inflow of 95.9 million yuan from institutional investors [3] ETF Performance - The Gaming ETF (159869) tracking the China Animation and Gaming Index saw a 4.78% increase over the past five days, with a net outflow of 44.875 million yuan [5] - The Food and Beverage ETF (515170) experienced a decline of 1.63% over the past five days, with a net outflow of 17.845 million yuan [5]

Core Viewpoint - G-bits has experienced significant stock price growth in 2023, with a year-to-date increase of 156.59% and notable recent gains over various time frames [2] Group 1: Stock Performance - As of September 17, G-bits' stock price reached 552.57 CNY per share, with a market capitalization of 39.808 billion CNY [1] - The stock has seen a 15.53% increase over the last five trading days, a 31.19% increase over the last 20 days, and a 96.31% increase over the last 60 days [2] Group 2: Financial Performance - For the period from January to June 2025, G-bits reported revenue of 2.518 billion CNY, reflecting a year-on-year growth of 28.49%, and a net profit attributable to shareholders of 645 million CNY, up 24.50% year-on-year [2] Group 3: Shareholder Information - As of June 30, 2025, G-bits had 17,900 shareholders, a decrease of 16.51% from the previous period, with an average of 4,017 circulating shares per shareholder, an increase of 19.77% [2] - The company has distributed a total of 6.489 billion CNY in dividends since its A-share listing, with 2.918 billion CNY distributed over the last three years [3] Group 4: Institutional Holdings - As of June 30, 2025, the top ten circulating shareholders included Hong Kong Central Clearing Limited as the third-largest shareholder, increasing its holdings by 542,000 shares to 6.9738 million shares [3] - Other notable institutional shareholders include China Europe Internet Mixed A and Huaxia CSI Animation Game ETF, both of which increased their holdings compared to the previous period [3]