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].

Core Viewpoint - Huatai Securities report indicates that the RPG mini-game "Survive 33 Days," launched by 37 Interactive Entertainment at the end of November 2025, quickly rose to the top of the WeChat mini-game sales chart, achieving the number one position on January 3, breaking the dominance of SLG and tower defense games that had held the top spot for a year [1] Group 1 - The game "Survive 33 Days" utilizes a "search, attack, retreat" gameplay mechanic that attracts players [1] - The game's visual design and innovative gameplay create an immersive experience for players [1] - This title is another successful release following "Seeking the Dao of the Universe," "Time Explosion," and "Heroes Have No Flash," demonstrating the company's ongoing product development and operational capabilities [1] Group 2 - The company is optimistic about its product strength and the continued implementation of AI technologies [1] - The investment rating for the company is maintained at "Buy" [1]

Group 1 - The core focus of the news is the explosive growth of the brain-computer interface (BCI) sector in the A-share market, with significant stock price increases observed on the first trading day of 2026, particularly for companies involved in BCI technology [1][5] - Notable stock performances include BeiYikang with a 30% increase, and other companies like Sanbo Brain Science, Xiangyu Medical, and Meihai Medical all achieving around 20% gains [1][5] - The surge in the BCI sector is attributed to three major developments: Neuralink's announcement of large-scale production of BCI devices, the implementation of new industry standards in China, and successful clinical trials demonstrating the technology's effectiveness [3][4][6] Group 2 - Neuralink, led by Elon Musk, announced that its BCI devices will enter mass production in 2026, along with a breakthrough in automated surgical technology for implanting devices [3] - A new industry standard for BCI medical devices in China, effective January 1, 2026, aims to provide regulatory clarity and facilitate clinical trials and product approvals [4] - A successful human trial in China demonstrated the ability to restore movement in paralyzed patients using implanted electrodes, showcasing rapid advancements in BCI technology [6] Group 3 - Investment interest in the BCI sector is heightened, with major international banks like Goldman Sachs, BNP Paribas, and Morgan Stanley focusing on companies like Innovation Medical, which has a strategic advantage due to its hospital resources [8] - The global BCI market is projected to reach $12.4 billion by 2034, with a compound annual growth rate of 17% from 2025 to 2034, indicating strong long-term growth potential [9] - The potential applications of BCI technology are expanding beyond medical uses, with possibilities in consumer electronics and smart home integration, suggesting a broader market impact [11] Group 4 - Despite the excitement, challenges remain in ensuring the long-term viability of implanted electrodes and improving the accuracy of non-invasive BCI systems [12] - Following the stock price surge, regulatory bodies have issued inquiries to several companies in the BCI sector to ensure transparency regarding their business operations and R&D progress [12] - Innovation Medical's stock has seen significant increases, but analysts caution that its current valuation is high, and investors should monitor the actual progress of its BCI projects and their impact on profitability [14]

Core Insights - The article highlights that Sanqi Interactive Entertainment has been recognized as the Best CVC Investment Institution for 2025 due to its strategic investments in the entertainment technology sector [1][2]. Investment Strategy - In 2025, Sanqi Interactive focuses on emerging industries with high growth potential, aligning with national strategic plans, particularly in areas like computing power, biomanufacturing, brain-computer interfaces, and embodied intelligence [4]. - The company aims to capture opportunities for industrial upgrades driven by technological innovation, emphasizing the integration of technology and industry as a core investment strategy [4]. Investment Portfolio - Sanqi Interactive has invested 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]. - The investment in Beiqi Bio, whose founder was recently elected as an academician of the Chinese Academy of Sciences, showcases 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, Sanqi Interactive has developed a clear investment methodology focused on companies with core technologies and commercial viability that can synergize with its industry chain [6]. - The company emphasizes that the core value of CVC investment lies not only in capital injection but also in industry insights and resource integration [6]. Future Outlook - Sanqi Interactive plans to continue aligning with national strategic deployments and the "14th Five-Year Plan," enhancing its collaborative capabilities and building a multi-dimensional investment ecosystem [7]. - The company aims to leverage investments to drive technological innovation and model innovation in the digital entertainment industry, contributing to the development of new productive forces [7].

Group 1 - The gaming sector is experiencing a strong performance, with the gaming ETF (159869) rising over 0.5% during intraday trading on January 6, 2025 [1] - Notable stocks within the ETF include 37 Interactive Entertainment (002555), G-bits (603444), Mingchen Health (002919), Aofei Entertainment (002292), and Guomai Culture (600640), which have shown significant gains [1] - The gaming ETF has attracted a total of 1.306 billion yuan in the last 10 trading sessions, reaching a total scale of 13.116 billion yuan as of January 5, 2025, providing investors with a convenient tool for investing in A-share gaming leaders [1] Group 2 - The global mobile game revenue is projected to grow by 0.5% year-on-year by 2025, with eight products expected to surpass 1 billion dollars in revenue after global distribution [1] - "Honor of Kings" continues to lead the revenue rankings, while "Whiteout Survival" has seen a revenue increase of approximately 50%, becoming the growth champion in the 1 billion dollar tier [1] - Zhongyuan Securities (601375) anticipates steady growth in the domestic gaming industry in 2025, with both market and user scales reaching new highs, driven by strong supply and demand dynamics [1] - The integration of AI technology is expected to enhance efficiency in research and development, as well as operations, leading to improved financial performance in the gaming sector [1][2]

Core Insights - The article discusses the long-term investment strategy of 37 Interactive Entertainment in hard technology sectors, emphasizing the extended timeframes for technology commercialization compared to gaming products [1][2][3] Investment Strategy - 37 Interactive Entertainment has made significant moves in the capital market, including investing up to 50 million yuan in the Diao Weihu Shan Fund to enhance its artificial intelligence industry chain [1] - The company's investment portfolio spans various cutting-edge technologies, including lithium niobate films, brain-computer interfaces, large models, XR glasses, and more, indicating a broad focus on foundational computing power and advanced technologies [1][3] Management Perspective - The management of 37 Interactive Entertainment, particularly Chairman Li Weiwei, has expressed a strong belief that AI is a core necessity for current success, transitioning from an optional trend to a mandatory component [2] - The company aims to deepen its integration of technology into entertainment, moving from a focus on hit games to establishing a standardized mechanism for stable revenue generation through technological empowerment [3][9] Industry Context - The article highlights a shift in the gaming industry from creative competition to technological advancement, necessitating companies to develop their own technological foundations rather than relying on external suppliers [9] - The investment strategy has evolved from a focus on gaming entertainment to a broader emphasis on hard technology and its integration with entertainment, driven by advancements in human-computer interaction [11]

Core Viewpoint - The A-share market has seen a significant rise, particularly in the gaming sector, driven by the upgraded incentive policies for WeChat mini-games, which are expected to enhance developer returns and promote the growth of high-quality content in the industry [2][3][4]. Group 1: Market Performance - On the first trading day of 2026, gaming stocks experienced a notable increase, with companies like Sanqi Interactive Entertainment hitting the daily limit, and Century Huatong and Giant Network also seeing substantial gains [3]. - The mini-game market in China generated revenues of 53.535 billion yuan in 2025, marking a year-on-year growth of 34.39%, and accounting for 15% of the overall gaming market revenue [2][7]. Group 2: WeChat Mini-Game Policy Changes - Starting January 1, 2026, WeChat mini-games will benefit from a dual incentive system for new games, with a total incentive exceeding 100%, including a maximum of 4 million yuan for new game launch incentives [3]. - The new policy includes a "launch growth incentive," providing additional cash rewards for games that achieve certain revenue milestones within their first month [3][4]. Group 3: Company Strategies and Developments - Century Huatong plans to leverage the new WeChat mini-game policies to enhance its development in the mini-game sector, aiming to explore more niche categories beyond its current offerings [4]. - Sanqi Interactive Entertainment's mini-game "Survival for 33 Days" has topped the WeChat mini-game sales chart, showcasing the company's successful strategy in this segment [3]. Group 4: Industry Trends and Future Outlook - Analysts note that the growth of mini-games is a significant factor in the overall revenue and user base expansion in the Chinese gaming market, with Tencent's proactive measures to increase incentives reflecting the competitive landscape [7][8]. - The mini-game sector is expected to continue its rapid growth, with predictions of maintaining a medium to high-speed development trajectory in 2026, driven by the lightweight nature and diverse content of mini-games [8].

Market Overview - On the first trading day of 2026, the A-share market showed strong performance, with the Shanghai Composite Index recovering the 4000-point mark, increasing by 1.38%. The Shenzhen Component Index and the ChiNext Index rose by 2.24% and 2.85%, respectively. The total trading volume in the Shanghai and Shenzhen markets reached 25,675 billion yuan, a significant increase of 5,016 billion yuan compared to the previous trading day [1] AI Sector Performance - The AIGC (AI Generated Content) sector was notably strong, with 14 stocks hitting the daily limit, including four stocks that surged by 20%. The AIGC concept index rose by 3.15% on the first trading day of 2026 [2][3] - The strong performance of the AIGC sector is attributed to several factors, including the release of a significant paper by DeepSeek's CEO, which addresses long-standing challenges in AI applications. The next-generation flagship system R2 is expected to be launched around the Chinese New Year in February 2026 [1][2] Investment Trends - Major companies in both China and the U.S. are heavily investing in AI applications, with ByteDance becoming the exclusive AI cloud partner for the 2026 CCTV Spring Festival Gala. The daily token usage for AI applications has seen rapid growth, with the latest figures reaching 63 trillion tokens [2] - The AI application sector is transitioning from storytelling to generating real revenue, as evidenced by Meta's acquisition of Manus for billions and the significant annual recurring revenue of AI startups [2] Characteristics of Leading Stocks - The leading AIGC stocks share three main characteristics: 1. They focus on AIGC application scenarios with strong technological feasibility. For example, companies like Dahong Technology and BlueFocus have integrated AI technologies into their respective fields [3] 2. Many of the stocks are small to mid-cap, which allows for greater price elasticity. Seven of the stocks hitting the daily limit have market capitalizations of 7 billion yuan or less, indicating that smaller stocks are more easily driven by market funds [3] 3. The stocks exhibit strong conceptual linkages, covering a wide range of sub-sectors, including AI content production, AI computing power, data services, AI marketing, and enterprise-level AI applications [3]

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]

Market Overview - The Shanghai Composite Index rose by 1.38% on January 5, with 26 out of the 28 sectors experiencing gains, led by the media and pharmaceutical industries, which increased by 4.12% and 3.85% respectively [1] - The oil and banking sectors were the only ones to decline, with decreases of 1.29% and 0.34% respectively [1] Capital Flow Analysis - The net inflow of capital in the two markets was 8.334 billion yuan, with 15 sectors seeing net inflows [1] - The electronics sector had the highest net inflow, totaling 9.481 billion yuan, and it rose by 3.69% [1] - The pharmaceutical sector also saw significant inflows, with a net inflow of 4.379 billion yuan and a daily increase of 3.85% [1] - Conversely, 16 sectors experienced net outflows, with the machinery equipment sector leading at a net outflow of 3.694 billion yuan, followed by the defense industry with 3.411 billion yuan [1] Media Industry Performance - The media sector increased by 4.12%, with a net inflow of 855 million yuan, and 110 out of 129 stocks in this sector rose, including 4 hitting the daily limit [2] - The top three stocks with the highest net inflows were: - Tom Cat (5.8445 billion yuan) - 37 Interactive Entertainment (3.7020 billion yuan) - Tianxia Show (2.5293 billion yuan) [2] - The media sector also had stocks with significant net outflows, including: - BlueFocus (7.2915 billion yuan) - China Film (1.0847 billion yuan) - Easy Point (928.161 million yuan) [2][4] Media Sector Capital Inflow Rankings - The top stocks in terms of capital inflow included: - Tom Cat: +16.34% with a turnover rate of 21.45% and a capital flow of 584.451 million yuan - 37 Interactive Entertainment: +10.00% with a turnover rate of 2.95% and a capital flow of 370.2015 million yuan - Tianxia Show: +10.05% with a turnover rate of 15.09% and a capital flow of 252.9365 million yuan [2] Media Sector Capital Outflow Rankings - The stocks with the highest capital outflows included: - BlueFocus: -19.97% with a turnover rate of 39.79% and a capital flow of -729.1537 million yuan - China Film: -2.04% with a turnover rate of 2.64% and a capital flow of -108.4756 million yuan - Easy Point: +6.62% with a turnover rate of 34.01% and a capital flow of -92.8161 million yuan [4]