Group 1 - The gaming sector is experiencing a significant rise, with the gaming ETF (159869) increasing nearly 3% in early trading, and notable stocks such as Glacier Network, Perfect World, and Star Shine Entertainment showing strong gains [1] - In September, a total of 156 games were approved, including 145 domestic and 11 imported titles, marking the third month this year with over 150 game approvals [1] - Open Source Securities suggests that the current gaming industry cycle may exceed market expectations due to supply-demand resonance, and recommends increasing investments in the gaming sector [1] Group 2 - The gaming sector is undergoing multiple catalysts including AI, content, and commercialization model transformations, with the gaming ETF (159869) tracking the performance of A-share listed companies in the animation and gaming industry [2] - Citic Construction Investment is optimistic about the gaming sector's performance for the year, highlighting that the overall gaming landscape is improving, with leading companies like Tencent and mid-sized firms performing well [1][2]

Group 1 - The National Press and Publication Administration approved 145 domestic online games as of September 24, 2025, indicating a positive trend in the gaming industry [1] - The CSI Hong Kong-Shenzhen Online Consumption Theme Index (931481) rose by 0.51% as of September 25, 2025, with notable increases in stocks such as Perfect World (up 4.72%) and Kying Network (up 3.77%) [1] - The Online Consumption ETF Fund (159793) increased by 1.21%, reaching a latest price of 1.17 yuan, and has seen a cumulative rise of 4.81% over the past two weeks [1] Group 2 - As of August 29, 2025, the top ten weighted stocks in the CSI Hong Kong-Shenzhen Online Consumption Theme Index accounted for 51.84% of the index, with Tencent Holdings and Alibaba-W being the top two [2] - The weightings of the top ten stocks include Tencent Holdings at 9.65%, Alibaba-W at 9.25%, and Meituan-W at 8.37%, reflecting their significant influence on the index [4]

Group 1 - The core viewpoint of the news highlights the recent performance and financial metrics of Giant Network, indicating a significant increase in stock price and trading volume on September 24, with a 4.32% rise and a transaction amount of 2.11 billion yuan [1] - As of September 24, the financing balance of Giant Network reached 740 million yuan, with a financing net purchase of -784,300 yuan, indicating a high level of financing activity compared to the past year [1] - The company reported a revenue of 1.662 billion yuan for the first half of 2025, reflecting a year-on-year growth of 16.47%, and a net profit of 777 million yuan, which is an 8.27% increase compared to the previous year [2] Group 2 - The main business of Giant Network consists of mobile online games (78.16%), computer online games (19.11%), and other game-related businesses (2.42%) [1] - As of June 30, 2025, the number of shareholders for Giant Network was 50,200, a decrease of 15.24% from the previous period, while the average circulating shares per person increased by 17.98% to 38,532 shares [2] - The company has distributed a total of 3.499 billion yuan in dividends since its A-share listing, with 1.516 billion yuan distributed in the last three years [2]

Group 1: Company Acquisition - Longfor Properties (600159) announced a preliminary intention to acquire 60% equity of Beijing Chengzhu Real Estate Development Co., Ltd. from Beijing Shunyi New Town Development Co., Ltd. to supplement its project reserves [1] - The target company was established in March 2025 with a registered capital of 600 million yuan, focusing on real estate development [1] - As of the announcement date, the target company has not generated any operating revenue [1] Group 2: Game Approval and Market Activity - On September 24, the National Press and Publication Administration approved 145 domestic online games, including 93 mobile games and 42 mobile-casual puzzle games [2] - By the end of September, a total of 1,275 game licenses have been issued in 2025, maintaining a high issuance frequency [2] - The regular issuance of game licenses reflects the regulatory support for the gaming industry [2] Group 3: Financing and Performance of Game Stocks - In September, three game stocks saw significant net purchases from financing clients, with Kunlun Wanwei, 37 Interactive Entertainment, and Giant Network receiving net purchases of 760 million yuan, 544 million yuan, and 153 million yuan respectively [3] - Kunlun Wanwei reported a revenue of 3.733 billion yuan in the first half of the year, a year-on-year increase of 49.23% [5] - 37 Interactive Entertainment achieved a revenue of 8.486 billion yuan in the first half, a year-on-year decrease of 8.08%, but its net profit increased by 10.72% to 1.4 billion yuan [5] Group 4: Profitability of Game Stocks - The top net profit earners in the gaming sector for the first half of the year include ST Huaman, 37 Interactive Entertainment, and Kaiying Network, with net profits of 2.656 billion yuan, 1.4 billion yuan, and 950 million yuan respectively [6] - Significant year-on-year profit growth was observed in companies like Sheng Tian Network and Youzu Network, with increases of 1186.02% and 989.31% respectively [6] - Several companies, including Perfect World and Glacier Network, reported a turnaround from losses to profits [6]

Group 1: Game Approval and Market Trends - In September 2025, a total of 145 domestic online games were approved, including 93 mobile games, 42 mobile-casual puzzle games, 7 mobile-client games, 2 client games, and 1 mobile-web game [2] - The cumulative number of game licenses issued by the National Press and Publication Administration in 2025 has reached 1275, maintaining a high issuance frequency [2] - The regular issuance of game licenses reflects the regulatory support for the development of the gaming industry [2] Group 2: Company Performance and Financing - Kunlun Wanwei achieved a revenue of 3.733 billion yuan in the first half of 2025, a year-on-year increase of 49.23%, with ongoing optimization of AI game products [6] - Sanqi Interactive Entertainment reported a revenue of 8.486 billion yuan in the first half of 2025, a year-on-year decrease of 8.08%, but a net profit of 1.4 billion yuan, up 10.72% [6] - Financing net purchases for game stocks in September exceeded 1 billion yuan for three companies: Kunlun Wanwei (760 million yuan), Sanqi Interactive Entertainment (544 million yuan), and Giant Network (153 million yuan) [3] Group 3: Profitability and Growth - The net profit rankings for the first half of 2025 show ST Huatuo, Sanqi Interactive Entertainment, Kaiying Network, Giant Network, and G-bits leading with net profits of 2.656 billion yuan, 1.4 billion yuan, 950 million yuan, 777 million yuan, and 645 million yuan respectively [6] - Significant year-on-year net profit growth was observed in companies such as Shengtian Network (1186.02%), Youzu Network (989.31%), and Zhejiang Shuju Culture (156.26%) [7] - Kaiying Network's game "Black Cat Detective: Guardian" received approval in September, contributing to its overseas revenue of approximately 202 million yuan, a year-on-year increase of 59.57% [6]

Core Points - In September, 145 domestic online games and 11 imported online games received approval from the National Press and Publication Administration [1] - A total of 1,275 games have been approved in 2025, including 1,195 domestic and 80 imported games [1] - Major companies like NetEase and miHoYo have multiple key games approved, including "Starry Friends" and "Honkai: Origin Spirits" [1][2] Industry Summary - The new batch of approved domestic games includes 135 mobile and mobile-casual games, 2 client games, and 1 mobile + web game [1] - The continuous issuance of game approvals has positively impacted the gaming industry, with the Shenwan gaming industry index rising 85% this year, ranking third among all Shenwan secondary industries [2] - On September 24, the Shenwan gaming industry index surged by 3.63%, with several A-share gaming companies, including ST Huayuan and Giant Network, seeing over 100% increase in stock prices [2] Company Summary - A-share companies like Giant Network and 37 Interactive Entertainment have games approved, including "Hot Blood Dynasty: Basketball" and "Endless Night" [1] - Hong Kong-listed companies Tencent and NetEase have also seen significant stock price increases this year, with gains of 56.87% and 76.42% respectively [3]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report focuses on the commercialization progress of AI applications, highlighting significant advancements in various sectors, including large models, AI video, AI programming, and enterprise-level AI software [4][28] - The report emphasizes the rapid growth in token consumption for AI applications, indicating accelerated commercialization and the emergence of new revenue streams [4][15] - Key companies in the AI space are experiencing substantial valuation increases, with several achieving over $1 billion in annual recurring revenue (ARR) [16][21] Summary by Sections 1. AI Application Overview: Acceleration of Commercialization - AI applications are witnessing a significant increase in token consumption, reflecting faster commercialization progress [4] - Major models like OpenAI have achieved an ARR of $12 billion, while AI video tools are approaching the $100 million ARR milestone [4][15] 2. Internet Giants: Recommendation System Upgrades + Chatbot - Companies like Google, OpenAI, and Meta are enhancing their recommendation systems and developing independent AI applications [4][26] - The integration of AI chatbots into traditional applications is becoming a core area for computational consumption [14] 3. AI Programming: One of the Hottest Application Directions - AI programming tools are gaining traction, with companies like Anysphere achieving an ARR of $500 million [17] - The commercialization of AI programming is accelerating, with several startups reaching significant revenue milestones [17][18] 4. Enterprise-Level AI: Still Awaiting Large-Scale Implementation - The report notes that while enterprise AI has a large potential market, its commercialization has been slower compared to other sectors [4][25] - Companies are expected to see significant acceleration in AI implementation by 2026 [17] 5. AI Creative Tools: Initial Commercialization of AI Video - AI video tools are beginning to show revenue potential, with companies like Synthesia reaching an ARR of $100 million [15][21] - The report highlights the impact of AI on content creation in education and gaming [4][28] 6. Domestic AI Application Progress - By mid-2025, China's public cloud service market for large models is projected to reach 537 trillion tokens, indicating robust growth in AI applications domestically [4] 7. Key Company Valuation Table - The report provides a detailed valuation table for key companies in the AI sector, showcasing significant increases in their market valuations and ARR figures [16][22]

Summary of the Conference Call on Gaming Industry and "Delta Action" Industry Overview - The gaming industry is witnessing a significant evolution in shooting games, categorized into three main phases: traditional FPS (e.g., CS, CF), battle royale (e.g., PUBG, Peacekeeper Elite), and hardcore looter shooters (e.g., Escape from Tarkov, Delta Action) [2][6][16]. Key Concepts and Arguments - **"Search and Extract" Gameplay**: This high-risk, high-reward model requires players to enter the battlefield with external gear, scavenge for resources, and defeat enemies to successfully extract and gain rewards. Failure results in the loss of all equipment, akin to gambling psychology [2][3][5]. - **Evolution of Shooting Games**: The transition from traditional FPS to battle royale and now to hardcore looter shooters reflects changing player preferences and gameplay complexity. The hardcore genre, while initially difficult to access, is gaining popularity [6][16]. - **Classification of Looter Shooters**: Looter shooters are divided into three categories: hardcore (e.g., Delta Action), mid-light (e.g., Super Burn Action Group), and X+ looter shooters (e.g., Sausage Party, Egg Party). Each category caters to different player demographics and preferences [7][16]. Delta Action Specifics - **Core Gameplay Mechanics**: Delta Action features three main gameplay modes: Fire Zone (simplified Tarkov), Full Battlefield (PVP), and Black Hawk Down (single-player narrative). Players can choose from 12 operators across four classes, each with unique skills that influence combat strategies [8][9]. - **Teamwork and Strategy**: The game emphasizes teamwork, with AI-controlled NPCs providing auditory cues to locate other players. Players can choose to avoid combat or ambush others for valuable loot [10][11]. - **Economic Mechanisms**: Players can purchase larger insurance boxes to secure high-value loot, promoting an economic cycle within the game and enhancing user retention [12][15]. Market Potential and Trends - **X+ Looter Shooter Growth**: The X+ looter shooter category is expected to grow significantly due to its combination of hardcore gameplay with broader appeal, particularly attracting female players. Current leading titles like Super Burn Action Group demonstrate innovative gameplay and market potential [14][16]. - **Comparison with Other Titles**: Delta Action is less hardcore than similar games like Dark Zone Breakthrough, making it more accessible to new players. This accessibility is crucial for expanding the player base [13][16]. Additional Insights - **Psychological Appeal**: The "Search and Extract" gameplay's gambling-like risk-reward structure is a major draw for players, contributing to its rising popularity [3][5]. - **Future Trends**: The gaming industry is likely to see continued innovation in gameplay mechanics and player engagement strategies, with X+ looter shooters potentially becoming a dominant trend in the coming years [16].

Group 1 - The core viewpoint of the news is that Giant Network has seen a stock price increase of 5.09%, reaching 45.20 yuan per share, with a trading volume of 1.56 billion yuan and a market capitalization of 87.451 billion yuan as of September 24 [1] - Giant Network's main business involves the development and operation of internet games, with revenue composition being 78.16% from mobile online games, 19.11% from PC online games, 2.42% from other game-related businesses, and 0.31% from other sources [1] Group 2 - Manulife Fund has a significant holding in Giant Network, with its Manulife Preferred Enterprises Stock A fund holding 564,800 shares, accounting for 3.25% of the fund's net value, making it the eighth largest holding [2] - The Manulife Preferred Enterprises Stock A fund has achieved a year-to-date return of 34.67% and a one-year return of 40.25%, ranking 1359 out of 4220 and 2591 out of 3814 respectively [2] - The fund manager, Li Kunyuan, has a tenure of 15 years and 127 days, with the fund's total asset size being 2.394 billion yuan [2]

Core Viewpoint - The A-share market is experiencing a strong performance in the online gaming sector, with several stocks reaching significant gains [1] Group 1: Stock Performance - Dongfang Mingzhu has reached the daily limit increase [1] - Shenzhou Taiyue and G-bits have increased by over 7% [1] - Kying Network and Kunlun Wanwei have risen by over 5% [1] - Xunyou Technology and Giant Network have gained over 4% [1]