Core Viewpoint - Sanqi Interactive Entertainment has seen a significant stock price increase, with a 21.13% rise over the past seven days, indicating strong market performance and investor interest [1][2]. Group 1: Company Overview - Sanqi Interactive Entertainment is based in Wuhu, Anhui Province, and was established on May 26, 1995, with its stock listed on March 2, 2011 [1]. - The company's main business involves the research, development, publishing, and operation of mobile and web games, with revenue composition being 97.09% from mobile games, 2.08% from web games, and 0.83% from other sources [1]. Group 2: Stock Performance - As of the latest report, Sanqi Interactive's stock price is 28.77 CNY per share, with a trading volume of 1.806 billion CNY and a turnover rate of 4.01%, leading to a total market capitalization of 63.646 billion CNY [1]. - The stock has experienced a continuous increase for seven days, with a total gain of 21.13% during this period [1]. Group 3: Fund Holdings - Nord Fund has a significant position in Sanqi Interactive, with its Nord Huazheng Value Selected 50 Index Fund holding 15,000 shares, representing 2% of the fund's net value, making it the tenth largest holding [2]. - The fund has realized a floating profit of approximately 22,200 CNY today and a total of 71,400 CNY during the seven-day increase [2]. - The Nord Huazheng Value Selected 50 Index Fund was established on April 29, 2025, with a current size of 15.8091 million CNY and a year-to-date return of 3.66% [2].

Investment Rating - The industry investment rating is "Positive" and maintained [7] Core Insights - The new game cycle in January continues with several products like "Duck Duck Goose" and "Heart Town" launching successfully. The trend of Chinese games going overseas remains strong, with leading companies like Dd and others showing impressive performance. The industry is expected to see a series of new game launches, leading to continuous catalysts [2][4] - The gaming sector's product cycle in 2026 shows strong sustainability and performance certainty, indicating room for valuation improvement. It is recommended to continue focusing on investment opportunities in the gaming sector, with relevant companies including Giant Network, Kaiying Network, Perfect World, 37 Interactive, G-bits, Yaoji Technology, Shengtian Network, Tencent Holdings, and Xindong Company [2][4] Summary by Sections New Game Launches - The January new game cycle has seen successful launches, including "Duck Duck Goose," which has gained significant popularity, and "Heart Town," which topped the global free charts in over 50 regions during its pre-download phase [2][4] - The performance of these new games validates the importance of global expansion and social interaction as growth engines in the gaming industry, with a strategy of "evergreen games + globalization" becoming key for leading companies [10] Overseas Market Performance - The overseas gaming market continues to thrive, with Dd's "Whiteout Survival" achieving over $4 billion in global revenue by December 2025. Other games like "Tasty Travels: Merge Game" and "Truck Star" have also shown strong performance in the overseas market [10] Future Game Releases - Upcoming game releases include Tencent's "Counter-Strike: Future" on January 13, "Rock Kingdom: World" on March 26, and several others from various companies, indicating a busy launch schedule that may catalyze further industry growth [10]

Core Insights - The report emphasizes that in 2026, the media internet sector will undergo a dual reconstruction driven by the transition from AI as a "technical infrastructure" to "application deep water zone," focusing on entry form migration, distribution rule repricing, and supply-side capacity explosion [1][11] - AI Agents are set to replace traditional apps as the new super entry point, shifting the traffic distribution logic from "time capture" to "efficient execution" [1][12] - AIGC (AI-Generated Content) is expected to lead to a significant increase in content production capacity, with zero marginal cost production becoming a reality, thus redefining the value of quality data and IP [1][11] Group 1: AI Agents and Traffic Distribution - AI Agents signify a generational leap in human-computer interaction, evolving from GUI to IUI, fundamentally changing the traffic distribution logic [1][12] - The traditional "click-jump" model is being replaced by a "dialogue-execute" paradigm, where AI Agents understand user intent and execute tasks across applications [1][12] - The emergence of AI Agents is expected to create a new operational layer that could potentially replace single apps as the primary distribution entry point [1][12][19] Group 2: AIGC and Content Supply - AIGC is anticipated to transition from a phase of "cost reduction and efficiency enhancement" to a "new demand creation" explosion by 2026, significantly increasing content supply [1][41] - The production barriers for video, 3D, and gaming assets are expected to lower drastically, leading to a surge in content supply and a devaluation of mediocre content [1][41] - Content consumption is evolving from passive viewing to active engagement, with new formats like "generative interactive dramas" and "AI companion games" emerging [1][43] Group 3: Investment Recommendations - The investment strategy in the media internet sector is shifting towards high-quality assets in both traffic distribution and content supply, focusing on companies that can effectively capture user intent and provide quality content [1][41] - Companies with operational system bases or super Agent platforms are likely to gain new traffic distribution rights and bargaining power, while mid-tier apps lacking exclusive content may face risks of being "pipelined" [1][19] - Key players in the AI Agent space include Alibaba, Tencent, and ByteDance, which are actively developing their AI capabilities to secure new traffic entry points [1][25][40]

Core Viewpoint - The 2025 China Internet Enterprise Comprehensive Strength Index was released, highlighting the top companies in the industry, with Sanqi Interactive Entertainment ranking 17th, marking a significant achievement for the company and the province of Anhui [1][4]. Group 1: Company Rankings - Sanqi Interactive Entertainment has been included in the China Internet Top 100 for 13 consecutive years, ranking 17th in 2025, the highest among A-share companies and the only representative from Anhui province [1][5]. - The top five companies in the 2025 China Internet Comprehensive Strength Index include Shanghai Xunmeng Information Technology Co., Ltd., Beijing Douyin Information Service Co., Ltd., Ant Group, Taotian Co., Ltd., and Tencent [4]. Group 2: Company Performance - Sanqi Interactive Entertainment's rise in ranking is attributed to its strong performance in enterprise scale, credit, AI innovation, overseas market expansion, and social responsibility [4][6]. - The company aims to continue leveraging Anhui's favorable business environment and policy support to enhance its operations and contribute to the digital economy's high-quality development in the province [6].

Core Viewpoint - Sanqi Mutual Entertainment (002555) has been recognized for its outstanding performance in shareholder returns, winning the "2025 Excellent Shareholder Return Company" award, reflecting both its commitment to shareholder value and its sustained performance growth [1][3]. Shareholder Returns - The company has consistently increased its cash dividends, with total cash dividends reaching 17.72 billion, 18.06 billion, 22 billion, and 13.86 billion from 2022 to the third quarter of 2025, totaling 71.64 billion, ranking first in the A-share gaming industry [3][6]. - In 2024, Sanqi Mutual Entertainment pioneered a continuous quarterly dividend model in the A-share market, significantly shortening the cycle for returning value to shareholders [3][6]. Financial Performance - From 2022 to 2024, the company achieved revenues of 164.06 billion, 165.47 billion, and 174.41 billion, with net profits exceeding 25 billion each year [4][7]. - In the first three quarters of 2025, the company maintained a steady growth trend, achieving revenues of 124.61 billion and a net profit of 23.45 billion, representing a year-on-year growth of 23.57% [4][7]. Governance and Market Position - The company's approach to shareholder returns is integrated into its governance, demonstrating a commitment to sharing operational success with shareholders [4][7]. - For long-term value investors, companies like Sanqi Mutual Entertainment, which have a solid financial foundation and prioritize shareholder interests, are seen as quality choices capable of navigating market cycles [7].

Core Viewpoint - The article highlights the launch of a public welfare legal education micro-animation titled "The Beast Across the Air," aimed at raising awareness about online sexual harassment against minors, particularly focusing on the crime of "remote indecency" [1] Group 1: Content Overview - The micro-animation was produced collaboratively by the Wuhu City Jiujiang District People's Procuratorate and the listed company 37 Interactive Entertainment [1] - The storyline depicts the complete chain of how offenders exploit minors' immaturity and gaming addiction to commit crimes, culminating in legal consequences for the perpetrators [1] - The video concludes with a prosecutor's legal education presentation, emphasizing that "remote indecency" is now regulated by criminal law and calling for collective efforts to enhance online safety and sexual education for minors [1] Group 2: Technological and Collaborative Aspects - 70% of the content in the public welfare video was created using the self-developed AI entity "Xiao Qi" by 37 Interactive Entertainment, showcasing an innovative integration of AI technology with public legal education [1] - This initiative represents a beneficial attempt at collaboration between judicial authorities and enterprises in the protection of minors [1]

Group 1 - The A-share market is experiencing fluctuations, with a notable rise in semiconductor equipment and materials, as well as strong performance in AI infrastructure sectors such as computing power, storage, and PCB [1] - The largest AI ETF in the Shanghai market, AI ETF (515070), saw its holdings, including Guangxun Technology, rise over 3%, while other stocks like Zhongji Xuchuang, Lankai Technology, and Xiechuang Data also increased [1] - Huolong Securities believes that the market is in a "slow bull" phase, with potential for upward breakthroughs due to ongoing supportive fiscal and monetary policies, as well as improving economic fundamentals [1] Group 2 - The AI ETF (515070) tracks the CS Artificial Intelligence Theme Index (930713), focusing on companies that provide technology, basic resources, and applications in the AI sector, representing the midstream and upstream of the AI industry chain [1] - The top ten weighted stocks in the AI ETF include leading domestic technology firms such as Zhongji Xuchuang, Xinyi Sheng, and Hanwha Technology, among others [1] - Related products include the AI ETF (515070), Huaxia CSI Artificial Intelligence Theme ETF Link A (008585), and Huaxia CSI Artificial Intelligence Theme ETF Link C (008586) [1]

Summary of China Online Gaming Industry Journal (Dec 2025 Edition) Industry Overview - The report focuses on the **China Online Gaming Industry**, highlighting key insights from various companies and market trends in the sector [1][2]. Key Companies Mentioned - **Century Huatong** - **37 Interactive Entertainment** - **Perfect World** - **Kingnet** - **G-Bits** - **Giant Network** Core Insights and Arguments 1. **Market Performance**: The A-share gaming sector experienced a rally in early January, indicating a positive sentiment towards the industry. The focus is on the monetization potential of the upcoming game cycle and performance during the Chinese New Year promotion [1]. 2. **Earnings Visibility**: There is an emphasis on strengthening shareholder returns to boost market confidence in earnings visibility as the sector approaches 2026 [1]. 3. **Constructive Outlook**: The report maintains a positive outlook on the China online gaming sector, citing quality earnings growth, accelerating overseas expansion, and increased exposure to AI gaming [1]. 4. **Company Rankings**: The new A-share gaming pecking order is established as follows: Century Huatong > Kingnet > Giant Network > 37 > G-Bits > Perfect World [1]. Financial Highlights - **Global Mobile Game Revenues**: According to AppMagic, global mobile game grossing remained stable with a **0.5% year-over-year increase**, while downloads rose by **4.6% year-over-year**. Notably, 12 of the top 30 most profitable mobile games globally were developed by Chinese studios [2]. - **Top Performers**: Among the top 30 mobile games, **Whiteout Survival** from Century Games was highlighted as the fastest-growing mobile game globally, achieving **50% year-over-year grossing growth** [2]. Company-Specific Updates 1. **Century Huatong**: Released the domestic version of **High Seas Hero** on WeChat mini game and is testing multiple new strategy games in domestic and overseas markets [3]. 2. **37 Interactive Entertainment**: The mini game **Survival in 33 Days** achieved significant traction, reaching the 2 position in WeChat mini game grossing in December 2025 [4]. 3. **Perfect World**: Announced the third round of closed beta testing for **Neverness to Everness**, available on multiple platforms [5]. 4. **Kingnet**: Launched a new MMORPG titled **Divine** in South Korea, featuring unique gameplay mechanics [6]. Additional Insights - The report suggests that the recent performance of 37 Interactive Entertainment supports its potential for re-rating as a sector laggard following the removal of regulatory overhang [4]. - The focus on AI gaming exposure indicates a trend towards integrating advanced technologies in game development, which could enhance user engagement and monetization strategies [1]. Conclusion The China Online Gaming Industry is poised for growth, driven by strong earnings potential, innovative game releases, and a favorable market environment as it heads into 2026. The emphasis on shareholder returns and AI integration reflects a strategic approach to enhance competitiveness in the global gaming landscape [1][2].

Market Overview - The gaming sector increased by 1.05% on January 6, with Caesar Culture leading the gains [1] - The Shanghai Composite Index closed at 4083.67, up 1.5%, while the Shenzhen Component Index closed at 14022.55, up 1.4% [1] Individual Stock Performance - Caesar Culture (002425) closed at 4.00, up 9.89% with a trading volume of 401,600 shares and a turnover of 158 million yuan [1] - Kaiying Network (002517) closed at 24.36, up 4.46% with a trading volume of 912,300 shares and a turnover of 2.179 billion yuan [1] - Gigabit (603444) closed at 448.99, up 2.77% with a trading volume of 24,400 shares and a turnover of 1.087 billion yuan [1] - Kunlun Wanwei (300418) closed at 44.89, up 2.56% with a trading volume of 949,700 shares and a turnover of 4.236 billion yuan [1] - Other notable stocks include Mingchen Health (002919) up 2.10%, Xunyou Technology (300467) up 2.04%, and Giant Network (002558) up 1.84% [1] Capital Flow Analysis - The gaming sector experienced a net outflow of 1.405 billion yuan from institutional investors, while retail investors saw a net inflow of 1.32 billion yuan [2] - The overall net inflow from speculative funds was 84.958 million yuan [2] Detailed Capital Flow for Selected Stocks - Kaiying Network (002517) had a net inflow of 255 million yuan from institutional investors, but a net outflow of 35.72 million yuan from speculative funds [3] - Caesar Culture (002425) saw a net inflow of 60.768 million yuan from institutional investors, with a net outflow of 36.423 million yuan from speculative funds [3] - Giant Network (002558) had a net inflow of 59.820 million yuan from institutional investors, but a significant net outflow of 82.100 million yuan from retail investors [3] - Other stocks like Xunyou Technology (300467) and Mingchen Health (002919) also showed varied capital flows, indicating mixed investor sentiment [3]

Core Viewpoint - The company, Sanqi Interactive Entertainment, has been recognized as one of the best CVC investment institutions for 2025 due to its strategic investments in the entertainment technology sector, aligning with national strategic initiatives and focusing on emerging industries [1][4]. Investment Strategy - In 2025, the company is focusing on strategic investments in cutting-edge industries such as quantum computing, biomanufacturing, brain-computer interfaces, and embodied intelligence, aiming to capture opportunities driven by technological innovation and industrial upgrades [4]. - The company's investment strategy is closely aligned with the "14th Five-Year Plan," which emphasizes the integration of technological and industrial innovation, further reinforcing its commitment to empowering the entertainment sector through technology [4]. Investment Portfolio - The company has made significant investments in several innovative companies, including AI chip developer Fangqing Technology, advanced chip lithography machine manufacturer Xingkong Technology, and brain-computer interface leader Qiangnao Technology, among others [5]. - Notably, the scientific founder of one of its investments, Beiqi Bio, was recently elected as an academician of the Chinese Academy of Sciences, highlighting the company's ability to identify high-quality technology projects [5]. Investment Methodology - As an early entrant in the CVC space within the entertainment sector, the company has developed a mature investment methodology that focuses on innovative entities with core technologies and clear commercialization prospects [6]. - The core value of CVC investment is seen not only in financial input but also in the output of industry insights and the deep integration of resource advantages, creating a closed-loop ecosystem from innovation to industrial transformation [6]. Future Outlook - The company plans to continue aligning with national strategic initiatives and the "14th Five-Year Plan," enhancing its collaborative capabilities and building a multi-dimensional investment ecosystem to seize new opportunities in the digital entertainment industry's technological and model innovations [7].