Investment Rating - The report maintains a "Buy" rating for the media industry, indicating a positive outlook for the sector [7]. Core Insights - The media industry (Shenwan) saw a weekly increase of 0.26%, ranking 8th among industries during the period from December 6 to December 12, 2025. Notable performers included Bona Film Group, Guangxi Radio and Television, Beijing Culture, Sanrenxing, and Huace Film & TV [11][18]. - The report highlights strong performance in AI applications and cultural exports, with a focus on sub-sectors such as gaming, intellectual property (IP), short dramas, and publishing [5][37]. Summary by Sections Market Performance - The media industry experienced a weekly increase of 0.26%, while the Shanghai Composite Index fell by 0.34%. The gaming sector saw a rise of 1.06%, and the film and television sector increased by 5.70% [11][12]. Key Industry Data AI Applications - In November, Deepseek led domestic AI web traffic with 346 million visits, despite a 2.95% month-over-month decline. Other notable AI products included Nano AI Search and Baidu AI Search, with respective monthly visits of 260 million and 52.63 million [22][23]. Gaming - The iOS gaming sales chart for December 13, 2025, was topped by "Honor of Kings," followed by "Gold Shovel Battle" and "Endless Winter." The report also noted that "Whiteout Survival" and "Kingshot" continued to perform strongly in overseas revenue [25][26]. Film - The total box office for the week of December 6-12 was 1.2 billion yuan, with "Zootopia 2" leading at 853 million yuan, accounting for 71% of the weekly total. Upcoming films include "Avatar: Fire and Ashes," set to release on December 19 [33][34]. Investment Recommendations - The report recommends focusing on themes such as AI applications and cultural exports, with specific attention to gaming, IP, short dramas, and publishing. Key companies to watch include Giant Network, Kaiying Network, Yaoji Technology, and others [5][37].

Summary of the Conference Call for Giant Network Industry Overview - The gaming sector is experiencing a valuation correction, currently around 20 times earnings, down from a previous high of 25 times, indicating potential for further upside to the 25-30 times range [2][4] - The gaming industry is expected to see a significant product launch year in 2026, with major titles from companies like Perfect World, Tencent, Lilith, and miHoYo, alleviating concerns about declining product growth [2][6] Company Performance - Giant Network's game "Supernatural" has performed exceptionally well, generating 1.5 billion yuan in revenue from July to September, with September's revenue exceeding expectations and daily active users (DAU) reaching a record high of nearly 7 million during the National Day holiday [2][7] - The revenue recognition cycle for "Supernatural" was adjusted from two months to three months, which could increase revenue by approximately 270 million yuan, bringing total revenue to 3 billion yuan and profit to 850 million yuan for the third quarter [2][8] - The sales expense ratio for "Supernatural" is maintained below 20% of revenue, with a net profit margin of 50%, primarily due to a high percentage of downloads from the official website, resulting in lower channel costs [2][9] Future Product Pipeline - In addition to "Supernatural," Giant Network has several upcoming titles, including "Famous Generals Kill," "5000 Years," and "Pocket Fighting," with expectations of quarterly profits of 300-400 million yuan in 2026 and "Supernatural" potentially generating 6 billion yuan in revenue [3][14] Market Trends and Opportunities - The Chinese gaming market is diversifying, with both large productions and casual games coexisting, driven by user demand for casual gaming experiences [10] - There is a notable shift towards targeting younger and female demographics, with companies like Giant Network and others developing games that appeal to these groups [10][11][13] - The gaming industry is witnessing a rise in casual games that cater to modern lifestyles, providing quick entertainment options [10] Investment Insights - The current market correction offers a favorable entry point for investors, with a potential upside of 50% as valuations have adjusted from 25 times to below 20 times [5] - The overall performance of the gaming sector is expected to stabilize, with a long-term outlook suggesting valuations could reach 25-30 times [4] Conclusion - Giant Network is well-positioned for future growth, with a strong product pipeline and a focus on expanding its user base. The company is expected to maintain its leading position in the market, potentially driving significant profits and market sentiment in the coming years [14]

Investment Rating - The report maintains an "Outperform" rating for the media industry [3] Core Insights - The media sector outperformed the market in November, with the Shenwan Media Index rising by 1.69%, surpassing the CSI 300 Index by 4.14 percentage points, ranking 7th among 31 industries [4][20] - The number of game approvals reached a new high, with 178 domestic games and 6 imported games approved in November, contributing to a total of 1,625 game approvals from January to November, a year-on-year increase of 26.8% [4][28] - The gaming market revenue in October was 31.4 billion yuan, a year-on-year growth of 7.8%, driven by strong product cycles from leading companies [4][32] Summary by Sections Market and Industry Review - The media sector's performance in November was strong, with a 1.69% increase in the Shenwan Media Index, outperforming the CSI 300 Index [4][20] - The current TTM-PE for the Shenwan Media Index is 42.6x, positioned at the 82.2% percentile over the past five years [20][26] Gaming - The number of game approvals in November was the highest in three years, with a total of 178 domestic and 6 imported games approved [28] - The gaming market revenue in October was 31.4 billion yuan, with mobile gaming revenue at 22.6 billion yuan, reflecting a year-on-year growth of 2.4% [32] - The overseas revenue for Chinese self-developed games reached 1.799 billion USD in October, marking an 11.9% year-on-year increase [41] Film and Television - The total box office in November reached 3.553 billion yuan, a year-on-year increase of 89.3%, primarily due to the success of "Zootopia 2" [49] - The top five films in November included "Zootopia 2," which grossed over 2.2 billion yuan within nine days of release [60] - The drama market saw high viewership, with "The Tang Dynasty Mysteries" leading with 1.5 billion views [67] AI Applications - The report highlights advancements in AI video models, including the launch of the O1 video model by Keling AI, which allows users to generate videos from text prompts [79] - PixVerse V5.5 was released, enabling the creation of multi-angle narrative videos [84] - Google's Gemini 3 Pro and Nano Banana Pro were launched, showcasing significant improvements in AI capabilities [91] Investment Recommendations - The report suggests focusing on the gaming sector's new product cycles and AI applications, recommending companies such as Giant Network, G-bits, and K-Game Network [96] - The December investment portfolio includes Giant Network, K-Game Network, Bilibili, and HuiLiang Technology [7]

Investment Rating - The industry investment rating is "Overweight," indicating that the industry is expected to outperform the overall market [9]. Core Insights - The report highlights the competition for C-end AI entry points in the internet sector, with significant developments from ByteDance and Alibaba. ByteDance's upcoming conference will focus on the performance and pricing of its Doubao model, while Alibaba has restructured its C-end business group to enhance its AI capabilities [2]. - The gaming sector shows promising growth, with companies like Giant Network and 37 Interactive Entertainment being recommended due to their strong product pipelines and market potential. The report anticipates a net profit of 3.21 billion for 37 Interactive Entertainment in 2025, with a PE ratio of 15x [2]. - The advertising sector, particularly Focus Media, is noted for its ongoing mergers and high dividend support, with expectations of continued investment in internet advertising [2]. Summary by Relevant Sections Internet Sector - ByteDance is focusing on the performance of its Doubao AI model and cloud business strategy, while Alibaba aims to create a super app through its newly formed C-end business group [2]. - Alibaba Cloud's revenue growth has accelerated, with a year-on-year increase of 34% for FY26Q2, marking eight consecutive quarters of growth [2]. Gaming Sector - Giant Network is expected to see significant user growth and revenue increase, while 37 Interactive Entertainment is entering a profit recovery phase with a projected net profit of 3.21 billion in 2025 [2]. - The report emphasizes the potential of the young female gaming market and the company's ability to adapt and innovate [2]. Advertising Sector - Focus Media's merger with New Wave is progressing, which is expected to enhance its bargaining power within the industry. The company has shown strong alpha performance despite macroeconomic challenges [2]. - The report anticipates sustained investment in internet advertising, particularly in local life services and AI applications [2]. Valuation Table - The valuation table provides insights into key companies, showing Tencent Holdings with a market cap of 51.14 billion and a projected revenue growth of 14% for 2025. Other companies like Giant Network and 37 Interactive Entertainment are also highlighted for their growth potential and profitability metrics [4].

Core Insights - The fifth Chongqing Capital Market High-Quality Development Conference emphasized the importance of listed companies in driving the capital market's high-quality development, urging them to take on responsibilities in governance, innovation, and investor relations [1] Group 1: Listed Companies in Chongqing - As of now, Chongqing has 78 A-share listed companies with a market capitalization of approximately 1.3 trillion yuan [2] - In the first three quarters of 2025, these companies achieved operating revenue of 572.13 billion yuan and net profit of 32.96 billion yuan, with over 40% of firms experiencing growth in both metrics [2] - Chongqing's listed companies exhibit a "124+N" characteristic, with a national leading R&D investment of 14.768 billion yuan in the first half of 2025, a year-on-year increase of 42.1% [2][3] Group 2: Key Performance Indicators - Chongqing's listed companies have the largest asset scale in Central and Western China, reaching 40.173 billion yuan by the end of the third quarter of 2025, a 7% year-on-year increase [3] - The refinancing scale of these companies reached 13 billion yuan in the first three quarters of 2025, marking a 125.9% increase year-on-year, ranking second in Western China [3] - The number of companies with over 50% of revenue from overseas is second in Western China, with 7 companies achieving this in the first half of 2025 [3] Group 3: Unique Industry Characteristics - Several companies in Chongqing have made significant achievements in their respective industries, such as Sanfeng Environment issuing the first "Belt and Road" technology innovation green corporate bond in the country [4] - Chongqing Rural Commercial Bank has the largest asset scale among rural commercial banks nationwide, while companies like Giant Network and Chongqing Beer lead in their respective sectors [4] Group 4: Two Rivers New Area Development - The Two Rivers New Area has 37 listed companies, contributing approximately 55.15% of the city's operating revenue and 49.35% of net profit, despite representing only 37% of the total number of listed companies [6] - Since the implementation of the "merger and acquisition six guidelines," Chongqing has seen active mergers and acquisitions, with 12 companies completing 14 transactions worth 35.276 billion yuan in the first three quarters of 2025, a 637% increase year-on-year [6][7] Group 5: Recommendations for Future Development - The report suggests optimizing policy supply and reducing transaction costs for successful mergers, including offering preferential policies for projects that land in Chongqing and exploring the establishment of a "merger loan risk compensation fund" [7]

Investment Rating - The report maintains a strong recommendation for leading companies in the media and internet sectors, including Shenzhou Taiyue, Southern Media, and Tencent Holdings [1][2]. Core Insights - The media industry experienced a decline of 3.59% last week, ranking 30th among all sectors, but has risen 26.95% year-to-date, placing it 7th overall [1][10]. - The box office performance of "Zootopia 2" exceeded expectations, grossing over 2 billion CNY within 10 days, with projections reaching around 4 billion CNY, highlighting the potential for blockbuster films to drive industry growth [1]. - The enthusiasm of young audiences for IP-based entertainment consumption is significantly higher than anticipated, with "Zootopia 2" achieving a global box office of 981 million USD, including 448 million USD from the Chinese mainland [1]. - The report emphasizes the strong growth potential for companies embracing youth-oriented gaming and film IPs, particularly Century Huatong, Giant Network, and others [1]. Summary by Sections Market Performance Review - The media sector's index fell by 3.59% from December 1 to December 7, while the Shanghai Composite Index rose by 0.37% [10]. - Individual stock performances varied, with Lianjian Optoelectronics leading with a 28.62% increase, while Shengyibao saw a decline of 10.91% [13][14]. Film and Game Industry Key Data Film - The top films for the week included "Zootopia 2" with a weekly box office of 112,496.2 thousand CNY, contributing to a cumulative box office of 305,267.3 thousand CNY [17][18]. - Upcoming films are expected to attract significant audience interest, with "Mountain River's Past" leading in pre-release interest [19][20]. Game - Giant Network's game "Supernatural Action Group" has shown strong performance, with contract liabilities reaching 1.333 billion CNY, a 50.7% increase from the previous quarter [2]. - The game has successfully launched in Hong Kong, Macau, and Taiwan, with plans for expansion into Southeast Asia and Japan [2]. Television and Variety Shows - The top-rated TV dramas included "Dance City" and "Four Happiness," with ratings of 1.963% and 1.587%, respectively [22][23]. - In variety shows, "Running Man: Sky Road" topped the viewership rankings [28]. Book Sector - The best-selling fiction titles included "Red Rock" and "The Right Bank of the Erguna River," while non-fiction bestsellers featured "The Lazy Economy" [34][35].

Summary of Key Points from the Conference Call Industry Overview - The gaming sector's valuation has reached a lower limit of 15 times, with expectations of maintaining high prosperity and performance growth certainty through 2026, making it an attractive investment opportunity [1][3][25] - The A-share market recommends a "3+2" combination: Giant Network, Kaiying Network, and Century Huatong as stable fundamentals; Gibit and 37 Interactive are positioned lower but showing recent improvements [1][4] Company-Specific Insights Tencent - Expected to launch multiple mid-sized new games in 2026, with a diverse range of genres [7] - Notable titles include "Under One Person," "Rock Kingdom World," and "Monster Hunter Traveler" [7] NetEase - Anticipates additional revenue of 2-3 billion from international IP adaptations and domestic MMO games [2][24] - Key upcoming titles include "Forgotten Sea" and "Infinite," with the former developed by the team behind "Identity V" [7][24] Giant Network - "Famous General Kill" is expected to contribute 200-300 million in profit, with "Supernatural Action Group" potentially increasing annual revenue to 7-8 billion if successful during the Spring Festival [10][12] Kaiying Network - The "Legend Box" platform is driving growth, with DAU expected to reach 650,000 to 700,000 by the end of 2026, and annual advertising revenue projected at around 2.4 billion [10][13] Bilibili - Strong growth in advertising business, with expectations to outperform the overall internet advertising growth rate [21] - Anticipated game revenue growth in the low double digits, with "Three Kingdoms Hundred Generals Card" projected to generate 1-1.5 billion [21] Gibit - Recent performance impacted by a decline in revenue from "Sword of the World," but new game "Nine Mu of the Wild" expected to contribute 1-1.5 billion [19][20] Heart Company - Facing stock price pressure but has potential due to rapid progress in programmatic advertising, with profits expected to reach 150-200 million in 2026 [22] Market Trends and Predictions - The gaming sector is expected to maintain strong growth certainty compared to other sectors, with a focus on identifying high-certainty investment targets [25] - The first quarter of 2026 is anticipated to be stable, with significant product launches concentrated in the summer [11][25] Additional Insights - The competitive landscape is expected to increase in 2026, but companies will focus on their strengths without excessive suppression of smaller firms [11] - The overall sentiment is optimistic for the gaming industry, with a recommendation for investors to strategically select stocks based on performance certainty and market conditions [25]

Summary of China Online Gaming Industry Journal (Nov 2025 Edition) Industry Overview - The report focuses on the **China Online Gaming Industry**, highlighting key data and updates from various companies within the sector, including **Century Huatong**, **37 Interactive Entertainment**, **G-Bits**, and **Kingnet** [1][22]. Key Highlights 1. **Industry Growth**: - The China domestic game market reached **Rmb 31.4 billion** in October 2025, reflecting a **7.8% year-over-year (yoy)** and **5.7% month-over-month (mom)** growth, primarily driven by National Day promotions [1][22]. - The **PC gaming segment** grew by **29.4% yoy** and **1.9% mom** to **Rmb 7.23 billion**, with notable contributions from games like **Delta Force** (Tencent) and **Where Winds Meet** (NetEase) [1][22]. - The **mobile gaming segment** saw a **2.4% yoy** and **5.3% mom** increase to **Rmb 22.6 billion**, driven by promotions for **HoK** (Tencent) and **Genshin Impact** (miHoYo) [1][22]. 2. **Company Performance**: - **Century Huatong**'s game **Whiteout Survival** climbed to **3** in mobile grossing rank, adding over **Rmb 100 million** in sequential grossing [1][22]. - **Overseas grossing** from Chinese studios increased by **11.9% yoy** and **11.0% mom** to **US$ 1.80 billion**, with top performers including **Arknights** (Hypergryph) and **Genshin Impact** (miHoYo) [1][22]. 3. **Investment Outlook**: - Despite a soft sentiment in the A-share gaming sector, the report maintains a positive outlook for most A-share gaming companies, citing a rich game pipeline and competitive advantages in overseas markets [1][22]. - The recommended pecking order for A-share gaming companies is: **Century Huatong > Kingnet > Giant Network > G-Bits > 37 > Perfect World** [1][22]. Company Updates - **Century Huatong**: - Announced the first beta for **Uncharted Waters: Origin** and **La Tale Mobile**, indicating ongoing development and expansion in mobile gaming [2]. - **37 Interactive Entertainment**: - Launched a survival RPG **Survival in 33 Days**, which quickly entered the top 30 in WeChat mini game grossing [2]. - **G-Bits**: - Conducted the final beta for **Jiu Mu Zhi Ye**, with an official launch scheduled for December 18 [2]. - **Kingnet**: - Announced a new Android closed paid beta for **Soul Land** [3]. Additional Insights - The report emphasizes the potential for **portfolio diversification** through investments in the online gaming sector, especially in light of current market conditions focused on AI [1][22]. - The performance of mobile games during promotional periods, such as National Day, highlights the importance of marketing strategies in driving revenue growth [1][22]. This summary encapsulates the essential insights and data from the China Online Gaming Industry Journal, providing a comprehensive overview of the current state and future outlook of the sector.

Core Points - The controlling shareholder's concerted action partner, Tengpeng Investment, has fully released the pledge of 142,000,000 shares of Giant Network as of December 8, 2025, which accounts for 72.61% of its held shares and 7.34% of the company's total share capital [2] Summary by Category - **Shareholder Actions** - Tengpeng Investment has released all pledged shares, totaling 142 million, which represents a significant portion of its holdings [2] - **Impact on Company** - The release of the pledged shares may indicate increased confidence in the company's financial stability and future prospects [2]

Core Viewpoint - The company has received notification from its controlling shareholder, Shanghai Giant Investment Management Co., Ltd., regarding the complete release of pledged shares held by its action-in-concert party, Shanghai Tengpeng Investment Partnership (Limited Partnership) [1] Group 1 - The total number of shares released from pledge amounts to 142 million shares, which represents 72.61% of the shares held by Tengpeng Investment and 7.34% of the company's total share capital [1]