Core Viewpoint - Giant Network has launched a new game, "Supernatural Action Group," which integrates AI large models into its core gameplay, marking the first instance of such integration in a high DAU (Daily Active Users) game in China [1] Group 1: Game Development and Innovation - The game features an "AI Large Model Challenge," making AI large models accessible to all users [1] - This initiative represents a significant step in the application of AI in gaming, aiming for large-scale implementation within high DAU games [1] Group 2: Collaborations and Partnerships - Giant Network is collaborating with major model providers such as Alibaba Cloud, Volcano Engine, and Tencent Cloud to address key issues like model capability adaptation, real-time inference efficiency, and high concurrency stability [1] - The collaboration aims to create a comprehensive solution for integrating multiple large model capabilities into a single product [1] Group 3: Industry Impact - "Supernatural Action Group" is positioned as a pioneering example in the industry, being the first high DAU product to successfully integrate and apply multiple large model capabilities at scale [1]

Core Viewpoint - Giant Network has integrated AI large models into its popular game "Supernatural Action Group," marking the first deep integration of AI in a high DAU game in China [1] Group 1: AI Integration - The new "AI Large Model Challenge" feature allows NPCs to be driven by AI large models, enabling them to interact as "player opponents" rather than fixed-script characters [1] - AI-driven NPCs can communicate via voice, mimic real player behaviors, and engage in direct confrontations with human players [1] - Within one week of launch, AI participation in matches exceeded 25 million [1] Group 2: Industry Collaboration - To facilitate the large-scale implementation of AI native gameplay, Giant Network has partnered with major model providers such as Alibaba Cloud, Volcano Engine, and Tencent Cloud [1] - The collaboration focuses on core issues such as model capability adaptation, real-time inference efficiency, and high concurrency stability [1] - "Supernatural Action Group" serves as a pioneering example of integrating multiple large model capabilities in a high DAU product [1]

Group 1 - The gaming sector is experiencing a significant rise, with the gaming ETF increasing by nearly 1.5% as of January 19, 2023, and the ETF's scale reaching 14.209 billion yuan by January 16, 2023, providing a convenient tool for investors to position themselves in A-share gaming leaders [1][2] - Giant Network has introduced a new "AI Model Challenge" in its popular mobile game "Supernatural Action Group," marking the first integration of AI model capabilities into the core gameplay of a high DAU game, supported by major tech platforms like Alibaba Cloud, Volcano Engine, and Tencent Cloud [1] - The AI-driven NPCs in the game can engage in real-time interactions, mimicking human player behavior and participating actively in gameplay, making it difficult for players to distinguish between real players and AI [1] Group 2 - AI technology is profoundly transforming the industry ecosystem, with companies like MiniMax going public and generating significant revenue through AI applications, while AI is optimizing game production processes and enhancing user experiences [2] - 33 Chinese companies have entered the global mobile game revenue top 100, accounting for 34.6% of the total, indicating a strong presence in the market [2] - The gaming sector is currently benefiting from multiple catalysts, including policy support, product cycles, and AI empowerment, suggesting a favorable window for investment in the gaming space [2]

Core Insights - The article discusses the launch of a new "AI Model Challenge" in the game "Supernatural Action Group" by Giant Network, marking the first deep integration of AI models in a high DAU game in China [1] - The AI-driven NPCs in the game can now interact with players in real-time, enhancing gameplay by acting as direct opponents rather than scripted characters [1] - After one week of launch, AI participation in matches exceeded 25 million [1] Industry Collaboration - To facilitate the large-scale implementation of AI-native gameplay, Giant Network has partnered with major AI model providers such as Alibaba Cloud, Volcano Engine, and Tencent Cloud [1] - The collaboration focuses on key issues such as model capability adaptation, real-time inference efficiency, and high concurrency stability [1] - "Supernatural Action Group" serves as a pioneering example in the industry for integrating multiple AI model capabilities into a high DAU product [1]

Core Insights - Giant Network has integrated AI large model capabilities into its popular mobile game "Supernatural Action Group," marking a significant advancement in gameplay by allowing AI-driven NPCs to interact with players in real-time [1][3][6] Group 1: AI Integration in Gaming - The new "AI Large Model Challenge" feature allows AI-driven NPCs to act as real opponents, engaging in voice communication and mimicking human player behavior, enhancing the gaming experience [3][4] - Over 25 million matches have involved AI participation, making it one of the most discussed new features among players [3][4] - This implementation is seen as a landmark case in the industry, being the first to fully embed AI capabilities into a high DAU product [3][6] Group 2: Gameplay Dynamics - Unlike traditional scripted NPCs, the AI NPCs in "Supernatural Action Group" possess advanced decision-making abilities, creating a more unpredictable and engaging gameplay experience [4][6] - The AI NPCs utilize technologies such as ASR, LLM, and TTS to understand player semantics and generate strategies based on real-time game conditions [4][6] - The introduction of AI has sparked significant player engagement on social media, with discussions around the AI's ability to blend in with human players [4][6] Group 3: Industry Implications - The successful integration of AI into core gameplay represents a shift in the gaming industry, moving from AI as a tool to AI as a driver of gameplay and content [6][7] - Giant Network has previously explored AI in social deduction games, accumulating valuable experience that contributed to the current implementation [7] - The company is committed to further exploring scalable and sustainable innovations in AI-driven gameplay, indicating a long-term vision for AI in gaming [7]

Group 1 - The core viewpoint is that China's gaming user spending per capita has significant growth potential compared to foreign markets, with expected increases in average revenue per user (ARPU) driven by policy support, increased game supply, and macroeconomic recovery [1] - The gaming policy environment in China has improved, with a projected issuance of 1,771 game licenses in 2025, marking a 25% increase from 2024 and a 65% increase from 2023, indicating a stable and supportive phase for the industry [1] - The overseas market for self-developed games in China is expected to reach $20.455 billion in 2025, reflecting a year-on-year growth of 10.23%, supported by a systematic national strategy for cultural export [1] Group 2 - The domestic mini-program gaming market is projected to generate revenue of 53.535 billion yuan in 2025, representing a substantial year-on-year growth of 34.39% [2] - A new agreement between Apple and Tencent regarding a 15% commission on payments within mini-program games is expected to enhance the payment process, potentially increasing iOS mini-program user numbers and improving profit margins for gaming companies [2] - The WeChat mini-game platform is set to implement a new incentive policy for in-app purchases starting January 1, 2026, which will favor developers by adjusting revenue sharing from 70:30 to 80:20 [2] Group 3 - AI is transforming the entire game development process, reducing character animation production time by 40% and significantly improving marketing efficiency through AI-generated materials and targeted advertising [3] - AI is enhancing operational efficiency by providing intelligent customer service and improving material risk detection, thus streamlining the gaming experience [3] - New AI-driven gameplay experiences are being developed, such as "Endgame Duel" and the AI-native application "EVE," which integrate emotional dialogue and personalized immersive experiences [3]

Summary of Key Points from Conference Call Records Industry Overview - The media industry is currently experiencing overall weak performance, with the media index declining over 2.5% despite some segments showing investment potential [4][6] - Official media and state-owned enterprises, such as People’s Daily and Xinhua News, are gaining importance due to their high content weight, making them worthy of attention [4][12] Investment Opportunities - The gaming sector is expected to thrive in 2026, driven by multi-modal AI advancements. Companies like Kaixin Network and Century Huatong are anticipated to realize profits in 2026 [4][5] - The issuance of game licenses is expected to increase significantly in 2025, providing ample supply for the gaming industry. The total number of licenses issued in 2025 is projected to exceed 1,711, a 25% year-on-year increase [5][6] - Low-valuation gaming companies with solid fundamentals, such as Perfect World, Century Huatong, and Giant Network, are recommended for continued observation [4][5] Market Projections - The gaming market is projected to reach a peak of over 90 billion yuan in the third quarter of 2026, with an annual market size expected to hit 357 billion yuan [6] - The two-dimensional game market is anticipated to grow rapidly, potentially reaching 84.5 billion yuan by 2030, driven by a strong consumer base among post-2000 players [7] Performance of Chinese Companies - Chinese companies hold a significant position in the global mobile gaming market, with Tencent's Honor of Kings leading in revenue. Century Huatong's Endless Winter has seen explosive growth [6][8] - Chinese firms are achieving notable success in the two-dimensional game market, with several top titles developed or managed by them, such as "崩铁" and "恋与深空" [8] Trends in Game Development - The SLG (Strategy Game) category is performing well, particularly with the SLG + X model, which combines secondary gameplay to attract users. This trend is expected to continue [9] - The hybrid casual gaming segment has shown significant growth, with revenues doubling year-on-year in Q2 2025 and a staggering 114% increase in Q3 [9] Key Products and Companies to Watch - Notable upcoming products include new titles from Century Huatong, Shenzhou, Giant Network, and others, with significant IP launches expected in 2026 [10][11] Importance of Authoritative Media - In the current SEO to GO era, the reliability and accuracy of authoritative media have become crucial. The penetration rate of AI-generated content increases by 80% when information is cited by three or more authoritative sources [12] Risks for Investors - Investors should be aware of potential risks, including delays or quality issues with new game launches, international trade risks, industry regulatory risks, and the underperformance of AI technology implementation [13]

Investment Rating - The industry rating is "Outperform the Market," indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 months [12]. Core Insights - "鹅鸭杀" (Goose Duck Kill) has become a phenomenon in the gaming industry, particularly on the Steam platform, gaining immense popularity in China due to the influence of top gaming streamers [2][3]. - The mobile version of "鹅鸭杀," co-published by Kingsoft and Huya, saw over 5 million new registered users within 24 hours of its public launch on January 7, and surpassed 10 million new users within 6 days [3]. - The game features over 30 different roles, enhancing its gameplay beyond traditional social deduction games like Werewolf, allowing up to 16 players to participate simultaneously [4]. - The mobile version has optimized network access and connection delays, addressing issues faced by the Steam version, and introduced innovative gameplay modes to enhance user experience [5]. Company Recommendations - The report suggests focusing on several gaming companies, including Kingsoft, 37 Interactive Entertainment, Kying Network, Shenzhou Taiyue, Giant Network, G-bits, Perfect World, Yaoji Technology, and Zhangqu Technology, as potential investment opportunities in the gaming sector [5].

Group 1 - Media concept stocks experienced a significant decline in the afternoon, with Yanshan Technology hitting the daily limit down, and Light Media dropping over 3% [1] - Other companies such as Focus Media, Giant Network, Kunlun Wanwei, and Shenzhou Taiyue also saw declines exceeding 2% [1] - The Media ETF fell approximately 5% due to market conditions [1] Group 2 - Some brokerages suggest that in the medium to long term, the media industry is expected to recover as content supply gradually resumes, AI technology continues to deepen, and supported by policy and consumer recovery expectations [2] - Companies in sectors such as film and television, gaming, and advertising marketing that show strong performance should be monitored [2] - There is also a recommendation to pay attention to companies involved in digital assets and those applying AIGC-related technologies [2]

Group 1 - The core viewpoint of the news is that Giant Network's stock experienced a decline of 3.94% on January 14, with a trading volume of 2.485 billion yuan, indicating a significant market reaction [1] - On January 14, Giant Network had a financing buy-in amount of 153 million yuan and a financing repayment of 220 million yuan, resulting in a net financing buy of -67.48 million yuan [1] - As of January 14, the total balance of margin trading for Giant Network was 654 million yuan, with a financing balance of 626 million yuan, accounting for 0.69% of the circulating market value, which is above the 60th percentile level over the past year [1] Group 2 - As of September 30, the number of shareholders of Giant Network increased by 21.47% to 61,000, while the average circulating shares per person decreased by 17.67% to 31,722 shares [2] - For the period from January to September 2025, Giant Network achieved an operating income of 3.368 billion yuan, representing a year-on-year growth of 51.84%, and a net profit attributable to shareholders of 1.417 billion yuan, up 32.31% year-on-year [2] - The total cash dividends distributed by Giant Network since its A-share listing amounted to 3.499 billion yuan, with 1.516 billion yuan distributed in the last three years [2]