Quantitative Models and Construction Methods 1. Model Name: "All Stocks Portfolio" - **Model Construction Idea**: This model aggregates all broker-recommended stocks ("golden stocks") and evaluates their performance as a portfolio[18][21] - **Model Construction Process**: 1. Collect all broker-recommended stocks for the month 2. Weight the stocks within the portfolio based on the number of recommendations by brokers 3. Exclude non-A-share stocks and Hong Kong-listed stocks to focus solely on A-shares[18] - **Model Evaluation**: The model demonstrates strong performance, significantly outperforming benchmark indices such as CSI 300 and CSI 500[18][21] 2. Model Name: "Newly Added Stocks Portfolio" - **Model Construction Idea**: Focuses on stocks newly added to the broker-recommended list, as they tend to exhibit better performance compared to repeated recommendations[18][23] - **Model Construction Process**: 1. Identify stocks newly added to the broker-recommended list for the month 2. Construct a portfolio weighted by the number of broker recommendations 3. Exclude non-A-share stocks and Hong Kong-listed stocks[18] - **Model Evaluation**: Newly added stocks outperform repeated recommendations, showcasing their superior return potential[18][23] 3. Model Name: "Repeated Stocks Portfolio" - **Model Construction Idea**: Focuses on stocks that have been repeatedly recommended by brokers across multiple months[18] - **Model Construction Process**: 1. Identify stocks that were recommended in the previous month and continue to be recommended in the current month 2. Construct a portfolio weighted by the number of broker recommendations 3. Exclude non-A-share stocks and Hong Kong-listed stocks[18] - **Model Evaluation**: While the performance is positive, it is generally weaker compared to newly added stocks[18] 4. Model Name: "Optimized Golden Stocks Portfolio" - **Model Construction Idea**: Selects the top 30 newly added stocks with the highest earnings surprise factor (SUE factor) to construct an optimized portfolio[23] - **Model Construction Process**: 1. Filter newly added stocks based on their earnings surprise factor (SUE factor) 2. Select the top 30 stocks with the highest SUE factor 3. Weight the portfolio based on the number of broker recommendations[23] - **Model Evaluation**: This optimized portfolio demonstrates superior performance compared to the "All Stocks Portfolio" and benchmark indices[23][25] --- Model Backtesting Results 1. All Stocks Portfolio - **August Return**: 13.6%[21] - **2025 YTD Return**: 33.5%[21] - **Annualized Return**: 13.7%[21] - **Annualized Volatility**: 23.6%[21] - **Sharpe Ratio**: 0.58[21] - **Maximum Drawdown**: 42.6%[21] 2. Newly Added Stocks Portfolio - **August Return**: 11.8%[21] - **2025 YTD Return**: 37.9%[21] - **Annualized Return**: 16.5%[21] - **Annualized Volatility**: 24.3%[21] - **Sharpe Ratio**: 0.68[21] - **Maximum Drawdown**: 38.5%[21] 3. Repeated Stocks Portfolio - **August Return**: 15.6%[21] - **2025 YTD Return**: 30.2%[21] - **Annualized Return**: 11.3%[21] - **Annualized Volatility**: 23.7%[21] - **Sharpe Ratio**: 0.48[21] - **Maximum Drawdown**: 45.0%[21] 4. Optimized Golden Stocks Portfolio - **August Return**: 19.6%[25] - **2025 YTD Return**: 37.6%[25] - **Annualized Return**: 22.3%[25] - **Annualized Volatility**: 25.5%[25] - **Sharpe Ratio**: 0.88[25] - **Maximum Drawdown**: 24.6%[25] --- Quantitative Factors and Construction Methods 1. Factor Name: Earnings Surprise Factor (SUE Factor) - **Factor Construction Idea**: Measures the degree to which a company's earnings exceed or fall short of market expectations, serving as a key indicator for stock selection[23] - **Factor Construction Process**: 1. Calculate the earnings surprise for each stock as the difference between reported earnings and consensus estimates 2. Normalize the earnings surprise to account for variations across stocks and industries 3. Rank stocks based on their normalized earnings surprise values[23] - **Factor Evaluation**: The SUE factor demonstrates strong predictive power, particularly in identifying high-performing newly added stocks[23] --- Factor Backtesting Results 1. SUE Factor - **Performance**: The SUE factor is highly effective in selecting top-performing stocks within the newly added category, contributing to the superior returns of the Optimized Golden Stocks Portfolio[23]

Core Insights - The company reported its mid-year results for 2025, showing a revenue of 2.578 billion yuan, a year-on-year increase of 0.89%, and a net profit attributable to shareholders of 950 million yuan, up 17.41% year-on-year [1] Revenue Performance - The revenue growth in 1H25 was primarily driven by the long-term operation of classic IPs and the successful overseas launch of new games. Notable titles contributing to revenue include "Original Legend," "Blood of the Heroes," and "Sword and Fairy: New Beginnings." The overseas revenue reached 202 million yuan, a significant increase of 59.6% year-on-year [2] Cost Management - The company demonstrated a clear optimization in sales expenses, with Q2 2025 sales expenses amounting to 407 million yuan, down 13.69% year-on-year. The gross margin for Q2 2025 was 81.07%, reflecting a slight decrease of 0.91 percentage points year-on-year [2] R&D Investment - R&D expenses for Q2 2025 were 134 million yuan, representing a year-on-year increase of 13.59%. The company continues to prioritize R&D, particularly in AI projects, leading to an increase in both expenses and expense ratio [3] Management Expenses - Management expenses for Q2 2025 were 38 million yuan, down 13.87% year-on-year, with an expense ratio of 3.12% [4] Product Development - The company is enhancing user experience through the "Legend Box," which serves as a vertical ecosystem for players of legendary games, offering various functionalities such as game downloads and live interactions [5] Future Outlook - The company has a rich reserve of multi-dimensional IPs and is leveraging AI technology to optimize its product matrix. Upcoming games based on top IPs like "Douluo Dalu" and "Tomb Raider" are expected to launch within the year [6] Investment Recommendation - The company is expected to benefit from a robust product line and AI projects, with projected revenues of 6.1 billion yuan, 7.1 billion yuan, and 7.8 billion yuan for 2025-2027, and net profits of 2.1 billion yuan, 2.5 billion yuan, and 2.8 billion yuan respectively [7]

Suspension and Resumption of Trading - SMIC is planning to issue A-shares to acquire minority stakes in its subsidiary, SMIC North, leading to a suspension of its stock trading [1] - Huahong Semiconductor intends to issue shares and pay cash to acquire 97.5% of Huali Micro's equity and will resume trading [2] - Tailin Micro plans to acquire 100% of Panqi Micro, both companies operate in the low-power wireless IoT chip design sector, and will resume trading [2] Mergers and Acquisitions - Xingchen Technology plans to acquire 53.3087% of Furui Kun for 214 million yuan, aiming to enhance its capabilities in connectivity, audio, and low power, thereby strengthening its SoC self-developed IP platform [3] - Huijin Co. intends to cash purchase 20% of Cooper New Energy's equity, which is expected to constitute a major asset restructuring [3] Share Buybacks - Kweichow Moutai's controlling shareholder plans to increase its stake by purchasing 3 to 3.3 billion yuan worth of company shares [4] - Kaiying Network intends to repurchase shares worth 100 to 200 million yuan [4] Investment Cooperation and Operational Status - Jiayuan Technology plans to invest 500 million yuan to acquire a portion of Endatong's equity, which is related to the optical module industry [5] - Zhiyang Innovation plans to establish a wholly-owned subsidiary with an investment of 20 million yuan to promote embodied intelligence technology innovation [6] - Yunzhu Technology plans to raise no more than 876 million yuan through a private placement for the upgrade and expansion of chip insertion integrated (CMI) component projects [6] Performance Changes - Sails reported a net profit of 2.941 billion yuan for the first half of 2025, an increase of 81.03% year-on-year [8] - BYD's net profit for the first half reached 15.51 billion yuan, up 13.79% year-on-year [8] - Lanke Technology reported a net profit of 1.159 billion yuan for the first half, a significant increase of 95.41% year-on-year [8] - Yilake Co. reported a net profit of 2.515 billion yuan for the first half, up 13.69% year-on-year, with a lithium salt project expected to start trial operations by the end of September [8] - Haowei Group reported a net profit of 2.028 billion yuan for the first half, an increase of 48.34% year-on-year, and has entered NVIDIA's supply chain [9] - Tianqi Lithium reported a net profit of 84.41 million yuan for the first half, marking a return to profitability [10] - China Rare Earth reported a net profit of 162 million yuan for the first half, also returning to profitability [10] - BeiGene reported a net profit of 450 million yuan for the first half, returning to profitability [10] - Guoxuan High-Tech reported a net profit of 367 million yuan for the first half, an increase of 35.22% year-on-year, and plans to invest up to 4 billion yuan in a new lithium-ion battery manufacturing base [10] - Lingyi Technology reported a net profit of 930 million yuan for the first half, an increase of 35.94% year-on-year [10] - Shenwan Hongyuan reported a net profit of 4.284 billion yuan for the first half, an increase of 101% year-on-year [10] - Zhongtai Securities reported a net profit of 711 million yuan for the first half, an increase of 77.26% year-on-year [10] - Guotai Junan reported a net profit of 15.737 billion yuan for the first half, an increase of 213.74% year-on-year [10] - China Shipbuilding reported a net profit of 2.946 billion yuan for the first half, an increase of 108.59% year-on-year [10] - Yangtze Power reported a net profit of 13.056 billion yuan for the first half, an increase of 14.86% year-on-year [10] - TCL Technology reported a net profit of 1.883 billion yuan for the first half, an increase of 89.26% year-on-year [10] - ST Huatuo reported a net profit of 2.656 billion yuan for the first half, an increase of 129% year-on-year [10] - Wentai Technology reported a net profit of 474 million yuan for the first half, an increase of 237.36% year-on-year [10]

Core Insights - Kaiying Network (002517) reported a revenue of 2.578 billion yuan for the first half of 2025, representing a year-on-year growth of 0.89%, while the net profit attributable to shareholders reached 950 million yuan, up 17.41% year-on-year, showcasing resilience and growth amid industry recovery and AI innovation acceleration [1] Group 1: AI Innovations and Strategic Developments - The company is focusing on a diversified strategy, emphasizing "AI + IP" as two key business modules, in response to the booming AI sector and the recovery of the gaming industry [1] - The launch of the "SOON" AI full-process development platform allows for the generation of playable games from a single sentence input, significantly reducing the traditional game development cycle from months to hours, thereby enhancing efficiency and lowering costs [1][2] - "SOON" breaks down game generation into three core elements: art assets, code creation, and numerical design, utilizing AI agents for collaborative module generation, and introduces the role of "game preset designers" to streamline the game creation process [2] Group 2: Emotional Companionship and AI Hardware - Kaiying Network is venturing into the emotional companionship sector with the launch of the "Warm Star Valley Dream Journey" AI toy brand, featuring smart toys that provide personalized emotional support through AI capabilities [2] - The company is also involved in the development of the world's first 3D EVE AI companionship application, which aims to establish long-term virtual emotional connections using self-developed multimodal interaction systems [2] - In the AI hardware space, the company’s invested enterprise DPVR unveiled the DPVR AI Glasses, equipped with advanced features such as electronic image stabilization and intelligent interaction capabilities [3]

Performance Overview - In H1 2025, the company achieved operating revenue of 2.578 billion yuan, a year-on-year increase of 0.89% [1] - The net profit attributable to shareholders reached 950 million yuan, up 17.41% year-on-year [1] - The net profit excluding non-recurring items was 939 million yuan, reflecting a year-on-year growth of 17.18% [1] - The company announced a share buyback plan, intending to repurchase 0.16%-0.32% of its total shares, with a total fund of 100 million to 200 million yuan, at a price not exceeding 29.33 yuan per share [1] New Game Releases and Market Response - The mobile game "Dragon Valley World" launched in February 2025, achieving top rankings on App Store and overall charts [2] - In April 2025, the mobile game "Digimon: Source" received positive market feedback and attention [2] - A total of 11 new games received approval for release in H1 2025, enhancing the company's product pipeline [2] Global Expansion and Performance - The mobile game "Monster Alliance" launched in March 2025, ranking high on multiple platforms in South Korea [3] - "MU Immortal" was released in May 2025 across over 100 countries, achieving top rankings in several regions [4] - The game "Party Beast Control" attracted over a million pre-registrations before its launch in Hong Kong, Macau, and Taiwan [4] AI and Technology Development - The company has made significant advancements in AIGC technology, with several algorithms and models approved for use [5] - The AI application ecosystem has been integrated with DeepSeek R1, enhancing capabilities for future commercialization [5] Profit Forecast - Projected operating revenues for 2025-2027 are 6.142 billion, 6.940 billion, and 7.704 billion yuan, with year-on-year growth rates of 20%, 13%, and 11% respectively [6] - Expected net profits for the same period are 2.105 billion, 2.411 billion, and 2.707 billion yuan, with growth rates of 29.3%, 14.5%, and 12.3% respectively [6] - The current market capitalization corresponds to a PE ratio of 24, 21, and 18 for the years 2025, 2026, and 2027 [6]

Core Viewpoint - The financial performance of Kaiying Network (恺英网络) shows a slight increase in total revenue and a significant rise in net profit for the first half of 2025, indicating improved profitability and operational efficiency [1][3]. Financial Performance - Total revenue for the first half of 2025 reached 2.578 billion yuan, a year-on-year increase of 0.89% [1]. - Net profit attributable to shareholders was 950 million yuan, up 17.41% year-on-year [1]. - Gross margin improved to 82.38%, with a year-on-year increase of 0.45% [1]. - Net margin increased to 36.83%, reflecting a year-on-year growth of 16.3% [1]. - Total expenses (sales, management, and financial) amounted to 920 million yuan, accounting for 35.7% of revenue, a decrease of 10.86% year-on-year [1]. Key Financial Metrics - Earnings per share (EPS) rose to 0.45 yuan, an increase of 18.42% year-on-year [1]. - Cash flow from operations per share was 0.34 yuan, down 19.68% year-on-year [1]. - The company's net asset value per share increased by 45.21% to 3.84 yuan [1]. Changes in Financial Items - Cash and cash equivalents increased by 5.26% to 3.224 billion yuan due to significant growth in total assets [3]. - Accounts receivable rose by 26.68% to 1.303 billion yuan, attributed to increased service revenue [3]. - Interest-bearing debt surged by 208.38% to 54.056 million yuan, indicating a rise in short-term borrowings [3]. Market Position and Strategy - The gaming industry is performing well, with a reported market size of 857.04 billion yuan in Q1 2025, reflecting a year-on-year growth of 17.99% [10]. - The company is focusing on developing innovative products like the "SOON" platform, which automates game development processes [10]. - The company has secured exclusive licenses for popular IPs like "热血传奇" and "传奇世界," enhancing its product offerings [13]. Investment and Shareholding - The company is backed by prominent fund managers, with significant recent increases in holdings from various funds [6][9]. - The largest fund holding the company is the 华夏中证动漫游戏ETF, which has seen a substantial increase in value over the past year [9]. Future Outlook - Analysts project the company's revenue for 2025 to reach approximately 2.099 billion yuan, with an average EPS forecast of 0.98 yuan [5].

Core Viewpoint - The company reported a slight increase in revenue and a significant rise in net profit for the first half of 2025, indicating positive financial performance despite modest revenue growth [1] Financial Performance - The company achieved operating revenue of 2.578 billion yuan, representing a year-on-year growth of 0.89% [1] - The net profit attributable to shareholders was 950 million yuan, showing a year-on-year increase of 17.41% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 939 million yuan, reflecting a year-on-year growth of 17.18% [1] - Basic earnings per share were reported at 0.45 yuan [1]

Project Investment - Guoxuan High-Tech plans to invest no more than 4 billion yuan to build a new lithium-ion battery manufacturing base with an annual capacity of 20GWh [1] - Jingneng Thermal Power intends to invest 40.88 million yuan in the Tongzhou Liuxiao Village project [1] Contract Bidding - Hongsheng Huayuan is expected to win a bid for a national grid project worth approximately 780 million yuan [1] - Dalian Electric Porcelain's subsidiary is expected to win a bid for a national grid project totaling about 95.7 million yuan [1] Equity Acquisition - Xingchen Technology plans to acquire a 53.3087% stake in Fubingkun for 214 million yuan [1] - Zhongxin International intends to purchase a minority stake in Zhongxin North, with stock suspension starting September 1 [1] Share Buyback - Kaiying Network plans to repurchase company shares for 100 million to 200 million yuan [2] - City Investment Holdings intends to repurchase shares for 5 million to 10 million yuan [2] Performance - Changjiang Electric Power reported a net profit of 13.056 billion yuan for the first half of the year, a year-on-year increase of 14.86% [2] - Hongwei Group's net profit for the first half of the year was 2.028 billion yuan, reflecting a year-on-year growth of 48.34% [2] Shareholding Changes - Guizhou Moutai's controlling shareholder plans to increase its stake by 3 billion to 3.3 billion yuan [2] - Huasheng Tiancheng's director Wang Weihang intends to reduce his holdings by no more than 10.929 million shares [2] Other - Electric Alloy plans to issue convertible bonds to raise no more than 545 million yuan for high-performance copper and copper alloy production projects [2] - Yunzhu Technology intends to raise no more than 876 million yuan through a private placement [2]

Core Viewpoint - The company reported a revenue of 2.578 billion yuan and a net profit of 950 million yuan for the first half of 2025, indicating a year-on-year growth of 0.89% and 17.41% respectively, amidst a recovering industry and accelerated AI innovation [1] Group 1: Business Performance - The company's overseas revenue reached 202 million yuan, showing a significant year-on-year increase of 59.57% [2] - The company launched several new products, including "Dragon Valley World," "Digimon: Source Code," and "Hot Blood Jianghu: Return," which have received positive market responses [2] - The company plans to expand the promotion of games like "Monster Alliance" and "OVERLORD" in the overseas market, targeting new growth opportunities in Europe and America [2] Group 2: AI Applications - AI technology has been deeply integrated into game development, significantly enhancing production efficiency and flexibility [3] - The company developed "SOON," a game generation tool that can create playable games from simple text prompts, reducing development time from months to hours [3] - The company is also launching AI companion products targeting emotional needs of users aged 12-35, with the brand "Warm Star Valley Dream Journey" expected to launch this year [3] Group 3: Investment and Shareholder Returns - The company announced a share buyback plan of 100 million to 200 million yuan, continuing its trend of returning value to shareholders [6] - Since 2019, the company has repurchased over 600 million yuan worth of shares and has distributed a total of 1.212 billion yuan in cash dividends [6] - The controlling shareholder and executives have committed to reinvesting their dividends into the company's shares, with over 130 million yuan already reinvested since 2024 [6]

Core Viewpoint - The company reported a slight increase in revenue and a significant rise in net profit for the first half of 2025, indicating positive financial performance despite a modest growth rate in revenue [1] Financial Performance - The company achieved an operating revenue of 2.578 billion yuan, representing a year-on-year growth of 0.89% [1] - The net profit attributable to shareholders reached 950 million yuan, showing a year-on-year increase of 17.41% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 939 million yuan, reflecting a year-on-year growth of 17.18% [1] - The basic earnings per share stood at 0.45 yuan [1]