Core Insights - The concept of "reward economy" is gaining traction, defined as consumers purchasing non-essential goods or experience services to cope with work-life stress and fulfill psychological needs, leading to immediate gratification and self-affirmation [1] Group 1: Market Performance - As of December 23, 2025, the CSI Hong Kong-Shenzhen Online Consumption Theme Index (931481) shows mixed performance among its constituent stocks, with Perfect World (002624) leading at a 2.74% increase, followed by Kaiying Network (002517) at 1.79%, and Gome Retail (06808) at 1.69% [1] - The Online Consumption ETF (159793) is currently priced at 1.01 yuan [1] Group 2: Index Composition - The CSI Hong Kong-Shenzhen Online Consumption Theme Index comprises 50 listed companies involved in online shopping, digital entertainment, online education, and telemedicine, reflecting the overall performance of online consumption theme stocks in the mainland and Hong Kong markets [2] - The top ten weighted stocks in the index include Alibaba-W (09988), Tencent Holdings (00700), Meituan-W (03690), Kuaishou-W (01024), JD Health (06618), Giant Network (002558), Bilibili-W (09626), iFLYTEK (002230), Kunlun Wanwei (300418), and Kaiying Network (002517), collectively accounting for 55.21% of the index [2]

Investment Rating - The report maintains a "Buy" rating for several companies including Xindong Company, Shenzhou Taiyue, Kaiying Network, and Jibite, while Perfect World is rated as "Hold" [8][9]. Core Insights - The gaming industry in China is expected to achieve a sales revenue of 350.79 billion yuan in 2025, reflecting a year-on-year growth of 7.68%, driven by an increase in user ARPU [1]. - Mobile games are projected to generate 257.08 billion yuan in revenue, up 7.92% year-on-year, while client games are expected to see a significant recovery with a revenue of 78.16 billion yuan, marking a 14.97% increase [1]. - Mini-games and console games are highlighted as the biggest growth areas, with mini-games expected to reach 53.54 billion yuan, a 34.39% increase, and console games projected at 8.36 billion yuan, an 86.33% increase [2]. - The overseas market for self-developed games is anticipated to reach 20.46 billion USD, growing by 10.23%, with strategy games dominating the revenue share [3]. Summary by Sections Overall Market Performance - The gaming market is experiencing steady growth, supported by long-term operations and innovative new products [1]. - The user base is expected to exceed 683 million, with a growth of 1.35% year-on-year [1]. Mini-games and Console Games - Mini-games are benefiting from lightweight features and social media platforms, significantly lowering customer acquisition costs [2]. - Console games are seeing a surge due to hardware upgrades and popular titles driving sales [2]. Overseas Market - The overseas revenue for self-developed mobile games is projected to be 18.48 billion USD, with a growth rate of 13.16% [3]. - The North American, Japanese, and Korean markets contribute 57.81% of the overseas revenue, indicating a high market concentration [3]. Investment Recommendations - The report suggests focusing on companies with long-term operations and strong overseas strategy game capabilities, such as Giant Network [4]. - New product cycles and companies transitioning to platform-based business models are also recommended for investment [4].

Industry Overview - The Chinese gaming industry is experiencing steady growth, with the actual sales revenue expected to reach 350.79 billion yuan in 2025, a year-on-year increase of 7.68%, and the user base growing to 683 million, up 1.35% [1] - The market shows a "stronger stronger, emerging rise" pattern, with the console gaming market continuing its rapid growth, achieving sales revenue of 8.36 billion yuan, a staggering increase of 86.33% year-on-year [1] - Mini-program games have emerged as a major highlight, generating revenue of 53.54 billion yuan, a year-on-year growth of 34.39%, driven by dual-track monetization through in-app purchases and advertising [1] International Expansion - The overseas market for self-developed games has also performed well, with actual sales revenue reaching 20.46 billion USD, a year-on-year increase of 10.23%, maintaining a scale of over 100 billion yuan for six consecutive years [1] Policy Support - The "Game Shanghai Ten Measures" was officially released, introducing systematic support policies in key areas of industry development, with an annual support fund totaling 50 million yuan, aimed at building a globally influential gaming and esports industry ecosystem [1] Technological Integration - The gaming industry is evolving from a mere entertainment medium to a flexible tool driving digital transformation in traditional sectors such as healthcare, education, and manufacturing, reshaping perceptions of gaming and opening new growth points [2] - Game companies are increasingly demanding AI technology, which is accelerating the application of AI in the industry, further enhancing its value to society and achieving a leap in digital and real-world integration [2] Market Performance - A-share gaming stocks have shown strong performance this year, with an average increase of nearly 44%, and three leading gaming stocks have doubled in price [3] - Giant Network's stock has surged over 260% this year, driven by the deep integration of AI technology into its core gaming business [3] - As of December 19, three gaming stocks have seen net purchases exceeding 50 million yuan in December, with Giant Network leading at 263 million yuan [3] Investor Interest - The most frequently researched company this year is Shunwang Technology, with 23 investor inquiries, indicating strong interest in its upcoming asymmetric competitive card mobile game [4]

Core Insights - The Chinese gaming industry is experiencing steady growth, with historical highs in core metrics, including an expected actual sales revenue of 350.79 billion yuan in 2025, representing a year-on-year increase of 7.68%, and a user base growth to 683 million, up 1.35% [1] Industry Performance - The console gaming market continues its rapid growth, with actual sales revenue reaching 8.362 billion yuan, a staggering year-on-year increase of 86.33%, marking three consecutive years of explosive growth [1] - Mini-program games have emerged as a significant highlight, generating revenue of 53.535 billion yuan, up 34.39%, driven by dual monetization through in-app purchases and advertising [1] - The overseas market for self-developed games also performed well, with actual sales revenue reaching 20.455 billion USD, a year-on-year increase of 10.23%, maintaining a scale of over 100 billion yuan for six consecutive years [1] Policy and Support - The "Game Shanghai Ten Measures" was officially released, introducing systematic support policies in key areas of industry development, with an annual support fund totaling 50 million yuan, aimed at building a globally influential gaming and esports industry ecosystem [1] Technological Integration - The gaming industry is evolving beyond mere entertainment, integrating with traditional sectors such as healthcare, education, and manufacturing, thus reshaping perceptions and opening new growth avenues [2] - Game companies are increasingly demanding AI technology, which is accelerating the application of AI in the industry and creating a value leap through the integration of digital and physical realms [2] Market Trends - The gaming industry is expected to maintain a high level of prosperity, with new products being launched and cross-platform connectivity contributing to growth, while seasonal activities are likely to enhance user engagement and average revenue per user (ARPU) [2] - The mini-program gaming sector is anticipated to exhibit characteristics of sustained high prosperity, stable growth rates, and optimized profit structures, supported by collaborations between WeChat and Apple [2] Stock Market Performance - Leading gaming stocks have shown strong performance in the A-share market, with an average increase of nearly 44% this year, and three stocks, including Giant Network, Century Huatong, and G-bits, have doubled in price [3] - Giant Network's stock has surged over 260% this year, driven by the integration of AI technology into core gaming operations and innovative product offerings [3] - As of December 19, three gaming stocks, including Giant Network, Zhejiang Shuju, and G-bits, saw net purchases exceeding 50 million yuan in December, with net buying amounts of 263 million yuan, 66 million yuan, and 58 million yuan respectively [3]

Summary of Conference Call Records Industry Overview - The gaming sector is experiencing a favorable opportunity for growth, driven by the upcoming holiday season and the launch of new games, which are expected to boost user engagement and revenue [1][3] - The long-term outlook for the gaming industry is positive, with a supply-demand resonance indicating an upward trend in market conditions [3] Key Insights and Arguments - **Short-term Growth Drivers**: The upcoming winter holidays and the Spring Festival are traditional peak seasons for the gaming industry, expected to last nearly two months starting from New Year's Day. New game launches will contribute to user and revenue increases [3] - **Long-term Product Pipeline**: Companies have a robust pipeline of new products targeting younger demographics, including games like "Shining Version of Milumi" and "World of Luok Kingdom," which are anticipated to drive industry growth [1][4] - **AI Technology Integration**: AI is enhancing the gaming industry by reducing development costs, improving efficiency, and increasing return on investment (ROI) in user acquisition. It also enriches gameplay and content design, propelling the industry into a growth acceleration phase [1][5] Recommended Companies - **Giant Network**: Expected to see increased Daily Active Users (DAU) and revenue from "Supernatural Action Group" during the holiday season, with several new games in the pipeline [7] - **Kying Network**: Rapid growth of "996 Legend Box" and a strong lineup of upcoming games, including "Douluo Dalu" and "Three Kingdoms: The Return of the Heart" [7] - **G-bits**: Positive performance from "Nine Muwu" and a solid product matrix with long-lasting games expected to drive growth [7] - **Xindong Company**: Anticipated launch of "Xindong Town" overseas in early 2026, with strong domestic market performance expected during the holiday season [7][8] - **Bilibili and Tencent**: Both companies are expected to launch significant new products in 2026, including "Three Kingdoms: Hundred Generals Card" and "World of Luok Kingdom" [9] AI and Content Creation - **Multimodal AI Models**: Recent advancements in multimodal AI models by major tech companies like Alibaba, Tencent, and ByteDance are set to revolutionize content creation across various domains, including gaming, video, and music [10][11] - **Impact on Content Creators**: These technologies will enhance the ability of content creators to produce high-quality, diverse, and personalized content, thereby increasing demand for computational power in inference [11] Market Dynamics - **Rising Demand for Computational Power**: The growth in demand for inference computational power will benefit edge computing and cloud computing companies, with firms like Vision Technology expected to see sustained growth in their cloud business [12] Conclusion - The gaming industry is positioned for significant growth driven by seasonal demand, innovative product offerings, and the integration of AI technologies. Key players in the market are well-prepared to capitalize on these trends, making them attractive investment opportunities.

Investment Rating - The report maintains a "Positive" investment rating for the gaming industry [7]. Core Insights - The domestic gaming market in China is projected to achieve an actual sales revenue of CNY 350.79 billion in 2025, reflecting a year-on-year growth of 7.68%. The market size for Q4 2025 is expected to reach CNY 94.76 billion, with a year-on-year increase of 9.24% [2][4]. - A new product cycle is underway as key new games from listed companies are being launched. Notable titles include Gigabit's "Nine Muses of the Wild" and Giant Network's "Famous Generals Kill," which have recently entered testing phases [6][4]. - The report suggests continued attention to investment opportunities within the gaming sector, highlighting companies such as Giant Network, Perfect World, and Tencent [6]. Summary by Sections Market Performance - The gaming market in China has reached a historical high in revenue, with mobile games generating CNY 257.08 billion (up 7.92%) and PC games reaching CNY 78.16 billion (up 14.97%) in 2025. The Q4 market size for mobile games is projected at CNY 67.38 billion (up 3.59%) [9][8]. - The user base for games has shown consistent growth over three years, with increases of 0.61%, 0.94%, and 1.35% from 2023 to 2025 [9]. New Product Cycle - The report emphasizes the impact of new game launches on Average Revenue Per User (ARPU), which is expected to rise from CNY 483.10 in 2024 to CNY 513.26 in 2025, marking a growth of 6.24% [9]. - The overseas market for self-developed mobile games from China is also thriving, with projected revenue growth of 11.14% and 13.16% for 2024 and 2025, respectively [9]. Policy Environment - Recent supportive policies for the gaming industry have been introduced, including initiatives to enhance the esports sector and promote original game development. These measures are expected to foster a more favorable environment for growth [9].

Investment Rating - The industry investment rating is "Overweight" indicating a positive outlook for the sector compared to the overall market performance [3][11]. Core Insights - ByteDance's AI application commercialization and MaaS (Model as a Service) are expected to accelerate, potentially forcing major internet companies like Alibaba, Tencent, and Baidu to expedite their AI strategies and monetization efforts [3]. - The demand for self-indulgent consumption among the post-90s and post-00s demographics is outpacing the overall domestic demand, with a focus on gaming, music, and trendy products [3]. - The gaming sector is anticipated to rebound quickly due to the upcoming Spring Festival, driven by younger audiences and a decline in global app store bargaining power [3]. Summary by Sections Industry Overview - ByteDance's advancements in AI and cloud services are likely to challenge competitors to enhance their AI capabilities and monetization strategies [3]. - The market remains optimistic about the growth of self-indulgent consumption, particularly in gaming and entertainment sectors, despite concerns over product cycle fluctuations [3]. Gaming Sector - The gaming industry is expected to see significant growth during the Spring Festival, with key products like Giant Network's "Supernatural" projected to achieve new highs in revenue and daily active users [3]. - Recommended stocks include Giant Network, 37 Interactive Entertainment, and Bilibili, with a focus on companies with new product reserves and low PE ratios [3]. Other Consumption Areas - In the music sector, subscription models are showing strong user retention and cash flow, with NetEase Cloud Music still in its growth phase [3]. - For trendy products, Pop Mart's revenue from single IPs has shown significant growth, supported by product innovation and market expansion [3]. Advertising Sector - Focus on the sustainability of advertising investments in the internet sector, with potential growth from acquisitions and high dividend yields providing a safety margin [3].

12月19日，2025中国游戏产业年会在上海召开。此次大会上发布的《2025年中国游戏产业报告》显示， 中国游戏产业实现稳步增长，核心数据均创历史新高。2025年，国内游戏市场实际销售收入预计达 3507.89亿元，同比增长7.68%；用户规模增至6.83亿，同比增长1.35%。第一创业证券预计,游戏行业大 概率将延续高景气状态,供给端重点新品陆续上线、客户端与多端互通持续贡献增量,旺季活动将推动用 户时长与ARPU提升，移动端有望环比修复，客户端保持强势。市场表现方面，游戏龙头股今年走势强 劲。证券时报·数据宝统计，截至12月19日收盘，游戏股今年以来平均上涨44.36%。3只游戏股年内涨幅 翻倍，分别是巨人网络、世纪华通、吉比特。 ...

Investment Rating - The report assigns an "Accumulate" rating for the industry [1]. Core Insights - The report highlights that the daily usage of Doubao Tokens has surpassed 50 trillion, ranking first in China and third globally. The gaming market is expected to grow steadily by 2025, with female-oriented games experiencing growth rates significantly above the industry average [2][4]. Industry Summary - The Doubao model was launched by Huoshan Engine, with significant improvements in capabilities, including enhanced agent abilities, multimodal capabilities, and context management [8][9]. - The domestic gaming market is projected to reach a revenue of 350.79 billion yuan in 2025, reflecting a year-on-year growth of 7.68%. Mobile games, PC games, and console games are expected to see growth rates of 7.92%, 14.97%, and 86.33%, respectively [13][19]. - The female-oriented gaming segment is rapidly expanding, with a market size of 8 billion yuan in 2024, marking a year-on-year increase of 124.1% [19]. - The report recommends investment in specific companies within the media sector, including Wanda Film, Perfect World, and Mango Super Media, among others, due to their potential for sustained high growth [7][21].

Core Insights - The media industry is driven by content, leading to a market evolution from "policy recovery" to "expected fundamental improvement" and then to "performance realization and valuation enhancement" [3][6] - The report is optimistic about two segments: gaming and film, highlighting the potential for long-term operations and competition against major players to reshape gaming valuations, and the recovery of the film sector post-policy changes [3][6] Gaming Sector - The gaming sector is expected to see sustained performance growth driven by new game releases in 2025, with a focus on long-term operations and a shift from "chasing hits" to "nurturing evergreen" titles [7][18] - The gaming industry's valuation is recovering, with the current price-to-earnings (P/E) ratio around 27x, indicating a return to a reasonable range after a period of low valuations [18][22] - The introduction of AI in gaming is anticipated to enhance user engagement and extend gameplay duration, contributing to long-term growth [7][28] Film Sector - The film industry is poised for recovery following the implementation of the "21 Regulations" by the broadcasting authority, which is expected to revitalize content production and performance realization starting in the second half of 2026 [8][18] - Current film sector performance is compared to the gaming sector in 2022, suggesting a similar trajectory of recovery and growth potential [8][18] AI Applications - The commercialization of AI applications is accelerating, with expectations for a significant turning point in 2026, particularly in AI comic and advertising sectors [9][18] - AI comic production is seen as advantageous due to rapid content iteration and cost control, with companies like Kuaishou positioned to benefit [9][18] - The AI+ advertising model has been successfully implemented globally, with major players like Tencent and Bilibili expected to replicate this success domestically [9][18]