Market Overview - The gaming sector experienced a slight increase of 0.0% on January 22, with Mingchen Health leading the gains [1] - The Shanghai Composite Index closed at 4122.58, up 0.14%, while the Shenzhen Component Index closed at 14327.05, up 0.5% [1] Individual Stock Performance - Mingchen Health (002919) closed at 26.91, with a rise of 6.41% and a trading volume of 150,400 shares, amounting to a transaction value of 398 million yuan [1] - Other notable gainers included Shunwang Technology (300113) with a 2.35% increase, and Electric Soul Network (603258) with a 1.95% increase [1] - Conversely, stocks like Kaiying Network (002517) and Giant Network (002558) saw declines of 2.27% and 1.91%, respectively [2] Capital Flow Analysis - The gaming sector saw a net outflow of 222 million yuan from institutional investors, while retail investors experienced a net outflow of 97.08 million yuan [2] - Notable net inflows from retail investors were observed in stocks like Kunlun Wanwei (300418) and Yaoji Technology (002605) [3] ETF Performance - The Gaming ETF (159869) tracking the China Animation and Gaming Index decreased by 4.62% over the past five days, with a net redemption of 200 million yuan [5] - The Food and Beverage ETF (515170) saw a slight decline of 2.34% and an increase in shares by 4.5 million [5]

Investment Rating - The report indicates a strong market vitality in the mini-game sector, with a projected market size of approximately 610 billion yuan in 2025, reflecting a year-on-year growth of 22% [7][6]. Core Insights - The mini-game industry is transitioning from a phase of rapid growth driven by traffic bonuses to a more refined operational phase focused on existing user engagement and content creation [7]. - The competition in the domestic mini-game market will increasingly center on operational capabilities, content creation value, and platform adaptability, with live streaming, content, social interaction, and multi-platform operations identified as four core strategies for industry breakthroughs [7]. - The number of active users on major platforms continues to rise, with the leading social software platform reaching 571 million monthly active users, and the leading short video platform seeing a 44% increase in active users [11][10]. Summary by Sections 1. Mini-Game Market Overview - The mini-game market is expected to exceed 700 billion yuan by 2026, with a significant growth rate of 22% in 2025 [7][6]. - The average daily usage frequency per user is approximately 5.1 times, with a 4.5% year-on-year increase, while the average daily usage duration has risen to 24.6 minutes, marking a 27.2% increase [15][14]. 2. Mini-Game Market Buy Volume Trends - The daily expenditure on mini-game user acquisition is approximately 144 million yuan, reflecting a 15.6% increase from Q1 [25]. - The number of games in the mini-game sector has grown by over 54% year-on-year, reaching approximately 51,000 games in 2025, while mobile app games have only seen a 5.2% increase [30]. - The number of games launched on Douyin mini-games has surged by nearly 70%, while WeChat mini-games have also shown a recovery in growth [35]. 3. Key Categories & Case Analysis - Modern themes in mini-games have seen a significant increase, with over 15,000 products launched, reflecting a 52.23% year-on-year growth [76]. - The top three gameplay types (MMORPG, idle, and card games) account for over 70.6% of the top 500 products, indicating a high market concentration [86]. - The strategy SLG segment has shown a continuous increase in the number of products, with a year-on-year growth of 38.8%, driven by user preference for lightweight operations combined with heavy strategy [89].

Investment Rating - The report maintains an "Outperform" rating for the media industry [4][38]. Core Insights - The media industry has shown a 3.44% increase, outperforming both the CSI 300 (-0.57%) and the ChiNext Index (1.00%) during the week of January 12-16 [11][12]. - Key companies that performed well include Yidian Tianxia, Liou Shares, People’s Daily, and Visual China, while companies like ST Fanli, Liansheng Technology, Beitou Technology, and Diguang Media faced declines [11][12]. - Bilibili launched a one-stop AI marketing tool, "Bilibili Bid," aimed at enhancing advertising efficiency for brands [15][16]. - Google’s Veo 3.1 received a significant upgrade, improving its video generation capabilities [15][16]. - OpenAI released the GPT-5.2 Codex programming model, enhancing its performance for complex software development tasks [15][16]. - The Qianwen App introduced over 400 new features, covering various services from food delivery to AI tutoring [17]. Summary by Sections Industry Performance - The media sector's performance ranked third among all sectors, with a notable increase of 3.44% [11][12][13]. Key Company Updates - The report highlights the strong performance of companies like Yidian Tianxia and Liou Shares, with significant weekly gains [11][12]. - The report provides earnings forecasts for key companies, indicating a positive outlook for firms like Kayi Network and Jibite [4][38]. Market Trends - The film box office for the week was 259 million yuan, with top films including "Nishan" (58 million yuan), "Zootopia 2" (53 million yuan), and "Avatar 3" (45 million yuan) [17][19]. - In the gaming sector, the top-grossing mobile games in December 2025 were "Whiteout Survival," "Gossip Harbor: Merge & Story," and "Kingshot" [26][27]. AI and Technology Developments - The report emphasizes the acceleration of AI applications in the media industry, particularly in marketing and content creation [3][36]. - Companies are encouraged to explore investment opportunities in AI-driven sectors, including AI marketing and content services [3][36].

Investment Rating - The report maintains an "Outperform" rating for the media industry [4][36]. Core Insights - The media industry has shown a 3.44% increase, outperforming both the CSI 300 (-0.57%) and the ChiNext Index (1.00%) during the week of January 12-16 [11][12]. - Key companies that performed well include Yidian Tianxia, Liou Co., People's Daily, and Vision China, while companies like ST Fanli and Liansheng Technology saw declines [11][12]. - Bilibili launched a one-stop AI marketing tool, "Bilibili Bid," aimed at enhancing advertising efficiency [15][16]. - Google released a significant upgrade to its AI video generation model, Veo 3.1, enhancing its practical applications [15][16]. - OpenAI introduced the GPT-5.2 Codex programming model, which significantly improves performance and reliability for long-term tasks [15][16]. - The Qianwen App launched over 400 new features, marking a significant advancement in AI capabilities [15][17]. Summary by Sections Industry Performance - The media sector's performance ranked third among all sectors, with a notable increase of 3.44% [11][12][13]. Key Company Updates - The report highlights the strong performance of companies like Yidian Tianxia, which saw a 54% increase, and Liou Co., which increased by 39% [12]. - The report also provides earnings forecasts for key companies, indicating a positive outlook for firms like Kayi Network and Jibite [4]. Market Data - The total box office for the week was 259 million yuan, with the top three films being "Nishan" (58 million yuan), "Zootopia 2" (53 million yuan), and "Avatar 3" (45 million yuan) [2][19]. - In the gaming sector, the top three mobile games in December 2025 were "Whiteout Survival," "Gossip Harbor: Merge & Story," and "Kingshot" [26][27]. Investment Recommendations - The report emphasizes the potential of AI applications in the media sector, particularly in marketing and content creation, suggesting investment opportunities in companies like Zhejiang Wenlian and Huimai Technology [36]. - It also notes the expected growth in the gaming sector driven by new product cycles and AI integration, recommending companies such as Giant Network and JiBit [36].

Core Viewpoint - The stock of Sanqi Interactive Entertainment has shown a significant increase in price and trading volume, reflecting positive market sentiment despite a recent slight decline in the short term [1]. Group 1: Stock Performance - As of January 22, Sanqi Interactive Entertainment's stock price rose by 2.01% to 28.88 CNY per share, with a trading volume of 2.33 billion CNY and a turnover rate of 0.51%, resulting in a total market capitalization of 638.89 billion CNY [1]. - Year-to-date, the stock has increased by 22.37%, with a 1.26% decline over the last five trading days, a 27.28% increase over the last 20 days, and a 47.87% increase over the last 60 days [1]. Group 2: Financial Performance - For the period from January to September 2025, Sanqi Interactive Entertainment reported a revenue of 12.461 billion CNY, a year-on-year decrease of 6.59%, while the net profit attributable to shareholders was 2.345 billion CNY, reflecting a year-on-year growth of 23.57% [2]. - The company has distributed a total of 11.5 billion CNY in dividends since its A-share listing, with 6.388 billion CNY distributed over the past three years [3]. Group 3: Shareholder Information - As of September 30, 2025, the number of shareholders for Sanqi Interactive Entertainment reached 159,300, an increase of 5.86% from the previous period, while the average circulating shares per person decreased by 5.54% to 10,034 shares [2]. - The largest circulating shareholder is Hong Kong Central Clearing Limited, holding 128 million shares, a decrease of 4.3869 million shares from the previous period [3].

截至2026年1月21日收盘，三七互娱(002555)报收于28.31元，上涨3.97%，换手率6.04%，成交量96.57万 手，成交额27.07亿元。 当日关注点 交易信息汇总资金流向 1月21日主力资金净流入2.15亿元；游资资金净流入2615.05万元；散户资金净流出2.41亿元。 公司公告汇总第七届董事会第五次会议决议公告 三七互娱第七届董事会第五次会议审议通过两项议案：一是授权公司管理层办理募集资金专户的开立及 签订监管协议等相关事宜，授权有效期为十二个月；二是同意公司及控股子公司开展外汇套期保值业 务，额度为8亿美元或等值货币，期限一年内可循环使用，并授权管理层在额度内签订相关协议。 三七互娱第三期员工持股计划存续期将于2026年7月26日届满。该计划于2019年7月25日完成非交易过 户，初始持股22,347,537股，占当时总股本1.06%。截至公告日，持股数量为1,161,886股，占公司当前 总股本0.05%。锁定期36个月已于2022年7月26日届满。2023年4月27日，公司董事会审议通过存续期展 期36个月至2026年7月26日。存续期届满前，管理委员会将根据持有人意愿和市场情况决 ...

Group 1 - The A-share market has seen a rebound in AI application concept stocks, with Shanghai Steel Union rising over 11% [1] - Other notable gainers include Jiuqi Software and Zhejiang Wenhu Internet, both hitting the 10% limit up, while Jinxi Modern and Zhongkong Technology increased by over 9% [1] - The overall trend indicates a positive momentum in the AI sector, as evidenced by the MACD golden cross signal formation [2] Group 2 - Shanghai Steel Union's market capitalization is approximately 9.791 billion, with a year-to-date increase of 22.29% [2] - Jiuqi Software has a market cap of around 8.217 billion and a year-to-date increase of 19.27% [2] - Zhejiang Wenhu Internet's market cap stands at about 16.3 billion, with a significant year-to-date increase of 40.28% [2]

Summary of the Conference Call for Sanqi Media Company Overview - **Company**: Sanqi Media - **Industry**: Gaming and Media Key Points Transition to Self-Developed Games - Sanqi Media successfully launched its self-developed game "RO" for the Hong Kong, Macau, and Taiwan markets in January 2026, indicating a successful transition from agency publishing to self-development, with plans to increase the proportion of self-developed teams to enhance profit margins and drive business growth [2][4][8] Global Market Presence - The company achieved a global presence with its flagship product "Puzzle Survival," which has garnered significant success in Europe and the United States, contributing to approximately 40% of its overseas revenue. Sanqi Media is recognized as one of the earliest companies to enter the overseas market from China [2][5] Performance in Mini Program Games - Sanqi Media holds a leading position in the domestic mini program gaming market, launching high-revenue products such as "Xun Dao Da Qian" and "Time Explosion." The mini program gaming market is projected to reach nearly 40 billion yuan in 2024, with a compound annual growth rate of approximately 150% from 2021 to 2024 [2][6] Future Product Pipeline - The company plans to continue focusing on mini program games and SLG (Simulation Game) categories, with around 20 new products expected in the first half of 2025, including 10 SLG titles, indicating strong future growth potential [2][7] Financial Health and Investment Appeal - Sanqi Media has a robust cash reserve and a high dividend payout ratio, with a dividend yield of approximately 5%, leading in the media industry. The expected price-to-earnings (PE) ratio for 2025 is around 17 times, decreasing to 15-16 times in 2026, making it an attractive investment opportunity [2][7][9] Regulatory Challenges and Profitability - In 2025, Sanqi Media successfully addressed several regulatory issues. Although revenue growth was not significant, net profit showed a marked improvement in the first three quarters, primarily due to cost reduction and efficiency enhancement measures [3] Investment in Technology - The investment team at Sanqi Media is actively investing in AI and new technology sectors, building a comprehensive ecosystem for mini program games. The integration of semi-operational models is expected to enhance competitiveness and lay a solid foundation for future development [2][8] Overall Financial Outlook - Revenue is projected to reach 17.5 billion yuan in 2026, with significant income growth driven by the increase in new products. The anticipated profit growth from these new launches further supports the positive investment outlook for the company [3][9]

Group 1 - The media sector outperformed the index in 2025, with a 24.75% increase, ranking 8th among 31 sub-industries, driven primarily by a 60.67% rise in the gaming sector [1][14][21] - The overall revenue growth for the media industry in the first three quarters of 2025 was 5.92%, while net profit increased by 37.12%, indicating strong earnings per share (EPS) performance [1][21][24] - The current valuation of the media industry is at the 47th percentile of the past three years, with attractive valuations in the gaming and film sectors [1][24][25] Group 2 - The mobile gaming market in 2025 achieved sales revenue of 257.08 billion yuan, a year-on-year increase of 7.92%, indicating a recovery in market sentiment [2][26] - New game releases such as "Supernatural Action Group" and "Staff Sword Legend" exceeded expectations, while established titles like "Honor of Kings" and "Peace Elite" continued to perform well [2][26] - The approval process for new game licenses remained stable in 2025, benefiting the supply side of the gaming industry [2][34] Group 3 - The short drama market in China reached a scale of 67.79 billion yuan in 2025, growing by 34.4% year-on-year, with a significant portion attributed to IAA [3][22] - The overseas short drama market is expected to grow by 145.7% in 2025, reaching a scale of 21.07 billion yuan, indicating strong international demand [3][22] - AI-driven animated dramas are emerging rapidly, with the market size expected to exceed 20 billion yuan, benefiting from lower production costs and enhanced efficiency [3][29] Group 4 - AI model capabilities continued to iterate in 2025, with significant advancements in models like Gemini 3 and ChatGPT 5.2, leading to accelerated commercialization [4][38] - The annual recurring revenue (ARR) for OpenAI reached 12 billion USD in 2025, with various AI applications generating over 100 million USD in annual revenue [4][38] - Investment opportunities in AI applications are expected to grow, particularly in AI video, advertising, animated dramas, and gaming [4][38] Group 5 - Recommended companies for investment include Giant Network, Perfect World, Century Huatong, and others, indicating a focus on firms with strong product pipelines and market positions [5][10]

Company and Industry Summary Company: Sanqi Interactive Entertainment (三七互娱, 002555.SZ) Key Points 1. **New Game Launch Performance** The new survival RPG game "Survive 33 Days" launched on November 20, quickly reached the top three of the WeChat mini-game sales chart, and has maintained a strong position, ranking first for several days recently. The game entered the top ten on December 13 and stabilized at fifth place from December 16 to 20 [1][1][1] 2. **Research and Operation Integration Advantage** The company effectively leverages its "research and operation integration" advantage, creating a complete mini-game ecosystem. The gameplay design cleverly combines strategy and simulation elements, resulting in significant operational effectiveness [2][2][2] 3. **Global Expansion and Diverse Product Portfolio** The flagship product "Puzzles & Survival" has achieved breakthrough success in global markets, particularly in Europe and the US, due to its innovative gameplay and precise regional operational strategies. The company has established a diverse product matrix covering SLG, MMO, card games, and simulation games, with plans to launch 10 SLG products by the first half of 2025 [2][2][2] 4. **Continuous Revenue Growth from Product Pipeline** The company has a rich product pipeline, with the recent launch of "RO" in Hong Kong and Macau, and the anticipated launch of the IP product "Douluo Dalu: Zero," which is expected to contribute to revenue growth [2][2][2] 5. **Stable Dividend Policy** The company emphasizes shareholder returns, with a cumulative dividend and buyback amount of 2.3 billion yuan in 2024. In 2025, it plans to continue its quarterly dividend strategy, having already distributed approximately 1.386 billion yuan in the first three quarters, with a dividend payout ratio of about 59% [3][3][3] 6. **Investment in AI Development** The company is actively investing in AI, with its self-developed game industry model "Xiao Qi" at the core, covering the entire chain of research, operation, and distribution. AI applications in 2D art, 3D modeling, and multilingual translation have significantly improved development efficiency and reduced operational costs [3][3][3] 7. **Strategic Investments in AI Companies** The company is also investing in AI model companies such as Zhizhu Huazhang, Baichuan Intelligent, and Moon's Dark Side, further expanding its presence in the AI industry chain [3][3][3]