Summary of Key Points Core Viewpoint - On November 7, Yaoji Technology experienced a slight decline of 0.39%, closing at 25.54 yuan, with a total of 4 block trades amounting to 4,616 million yuan [1]. Trading Activity - The first block trade occurred at a price of 23.08 yuan for 500,000 shares, totaling 11.54 million yuan, with a discount rate of -9.63% [1]. - The second block trade also took place at 23.08 yuan for 400,000 shares, amounting to 9.23 million yuan, maintaining the same discount rate of -9.63% [1]. - The third block trade involved 600,000 shares at the same price of 23.08 yuan, totaling 13.85 million yuan, again with a discount rate of -9.63% [1]. - The fourth block trade mirrored the previous trades, with 500,000 shares at 23.08 yuan, totaling 11.54 million yuan, and a discount rate of -9.63% [2]. Recent Performance - Over the past three months, Yaoji Technology has recorded a total of 4 block trades with a cumulative transaction value of 4,616 million yuan [2]. - In the last five trading days, the stock has seen a cumulative decline of 1.54%, with a net outflow of 40.24 million yuan in principal funds [2].

Core Insights - On November 7, Yaoji Technology executed a block trade of 2 million shares, amounting to 46.16 million yuan, which represented 33.7% of the total trading volume for the day. The transaction price was 23.08 yuan, reflecting a discount of 9.63% compared to the market closing price of 25.54 yuan [1] Trading Details - The block trade on November 7 involved multiple transactions at a price of 23.08 yuan per share, with a total volume of 200,000 shares [2] - The total transaction value for the block trade was 46.16 million yuan, with significant contributions from various brokerage firms [2] - The trade was executed at a discount to the market price, indicating potential investor interest or strategic positioning by the sellers [1][2]

Core Viewpoint - Yaoji Technology reported a net profit attributable to shareholders of 390 million yuan for the first three quarters, a year-on-year decrease of 8.00% [1] - In Q3 2025, the net profit attributable to shareholders was 134 million yuan, down 3.98% year-on-year [1] Financial Performance - The company's short-term performance is under pressure, but there is an optimization in revenue structure [1] - The gaming business remains stable, and the IP card ecosystem layout is improving [1] Business Development - The company is deeply engaged in the casual puzzle segment, establishing multiple studio teams to maintain a continuous production capacity of quality content [1] - Yaoji Technology invested in Shanghai Ludao Consulting Management Co., Ltd. to participate in the issuance and secondary trading platform of sports culture collectible cards [1] Strategic Initiatives - In September 2022, the company established Yaoji Trendy Products and became the agent for Pokémon TCG (Simplified Chinese version) in mainland China [1] - The company is building a full industry chain ecosystem around short videos and short dramas, with over 200 indoor scene constructions completed in the short video center [1] - A short drama fund has been set up to specifically invest in quality projects in parks and industries [1] - The company is actively integrating production and broadcasting, aiming to create a complete ecological closed loop from IP, production, distribution to investment flow [1] Outlook - Given the growth potential of the Shanghai International Short Video Center and card business, the company maintains an "overweight" rating [1]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [5] Core Views - The gaming business remains stable, and the company is building a comprehensive ecosystem for short videos [5] - The company reported a significant decline in revenue for the first three quarters of 2025, with a year-on-year decrease of 24.42% [7] - The company is focusing on optimizing its revenue structure and enhancing its high-margin business segments [7] - The establishment of the Shanghai International Short Video Center aims to create a full industry chain ecosystem around short videos and short dramas [7] Financial Performance Summary - For 2025, the company expects revenue of 3,440 million yuan, a 5.16% increase from 2024 [6] - The projected net profit attributable to shareholders for 2025 is 612 million yuan, reflecting a year-on-year growth of 13.61% [6] - The earnings per share (EPS) for 2025 is estimated at 1.47 yuan [6] - The company’s gross margin for the first three quarters of 2025 was 44.46%, an increase of 6.61 percentage points year-on-year [7] - The net profit margin for the same period was 19.44%, up by 3.55 percentage points year-on-year [7] Business Development - The company has established multiple teams in the casual puzzle game segment to ensure continuous production of quality content [7] - The core products, such as "Fishing Blast" and "Finger Fishing," have shown strong player retention over the years [7] - The company is also involved in the issuance and secondary trading of sports culture collectible cards through its investment in Shanghai Luda Consulting Management Co., Ltd. [7] - The company has become the agent for the Pokémon TCG (Simplified Chinese version) in mainland China [7]

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 36.25 CNY, while the current price is 25.94 CNY [5]. Core Insights - The company experienced a decline in revenue and profit year-on-year in Q3 2025, but structural optimization of revenue has led to improved profitability. The long-term outlook remains positive, particularly regarding the development of new business areas such as the short video center [2][11]. Financial Summary - Total revenue for 2023 is projected at 4,307 million CNY, with a year-on-year growth of 10.0%. However, a significant decline of 24.0% is expected in 2024, followed by a recovery with growth rates of 6.2%, 4.5%, and 4.1% in the subsequent years [4]. - Net profit attributable to the parent company for 2023 is estimated at 562 million CNY, with a substantial increase of 61.4% compared to the previous year. A slight decrease of 4.2% is anticipated in 2024, followed by growth in the following years [4]. - The earnings per share (EPS) for 2025 is projected to be 1.45 CNY, with subsequent increases to 1.54 CNY in 2026 and 1.62 CNY in 2027 [4][12]. Business Development - The gaming business is developing steadily, with core products expected to maintain a long lifecycle. The company is focusing on upgrading existing mobile games and developing a matrix of high-quality mobile games to enhance product efficiency [11]. - The establishment of the Shanghai International Short Video Center aims to create a full industry chain ecosystem around short videos and short dramas. This includes a fund to support high-potential creators and projects, promoting content innovation and commercialization [11].

Macro Overview - 2025 is characterized as a turning point for China's macroeconomic landscape, with expectations for a brighter macroeconomic outlook in 2026 [2] - The U.S. economy is experiencing a dual-speed growth pattern, with rapid expansion in AI-related investments and slightly below-trend growth in traditional sectors [2][3] Investment Strategy - The profit cycle is expected to rebound due to approaching turning points in capacity and inventory cycles, with positive signals from the real estate cycle and overseas expansion [3] - Relative valuations in the Chinese market still have room for improvement, making Chinese assets attractive [3] - The market style is anticipated to rebalance rather than switch, focusing on seven key investment themes including policy, technology, real estate, and capital market reforms [3][4] Fixed Income Market - The global investment landscape is expected to see a shift with a focus on domestic demand and technology, leading to a potential recovery in nominal GDP growth [6] - The bond market is likely to exhibit characteristics of low interest rates and high volatility, with a projected yield range for ten-year government bonds between 2.0% and 2.1% [6] Equity Market Insights - The insurance sector is shifting towards dividend insurance products, with positive sales trends expected to continue into 2026 [8] - The securities market is undergoing a transformation, with low interest rates enhancing the attractiveness of equity assets and sustainable inflows of new capital [9] Company-Specific Analysis - Xinquan Co., Ltd. reported Q3 revenue of 3.954 billion yuan, a year-on-year increase of 14.91%, but net profit decreased by 27.10% due to competitive pressures [10] - Jifeng Co., Ltd. achieved Q3 revenue of 5.608 billion yuan, with a net profit increase of 116.62% year-on-year, indicating strong order backlog and production ramp-up [11] - Guobo Electronics reported Q3 revenue of 498 million yuan, with a focus on mobile terminal expansion and military product recovery [12] - Icewheel Environment's Q3 revenue grew by 6.88% year-on-year, supported by recovery in commercial cold chain and new applications in data centers [13] - Changfei Optical Fiber's Q3 revenue increased by 16.27% year-on-year, driven by AI data communication demand [14] Sector Performance - The traditional energy sector, represented by Gansu Energy, showed a revenue increase of 1.33% year-on-year in Q3, benefiting from strong profitability in hydropower [26] - The pump manufacturing sector, led by Southern Pump, is expanding into new applications such as liquid cooling and data centers, with Q3 revenue showing a slight decline but net profit growth [27]

Investment Rating - The report maintains a "Recommended" investment rating for the media industry [4]. Core Insights - The media sector combines technology application and discretionary consumption, with a high proportion of "expectation" factors influencing valuations. The third quarter of 2025 saw an increase in EPS, leading to a shift towards PE-driven phases. The upcoming "14th Five-Year Plan" completion and the initiation of the "15th Five-Year Plan" are expected to drive new growth through state-owned enterprise reforms and technological advancements [3][14]. - The report highlights three key dimensions for investment focus: state-owned enterprise reform, the cinema sector in Q4 2025, and the new cycle of AI applications driving media sector valuations [3][14]. Summary by Sections 1. Industry Review - The media sector's performance from October 27 to October 31, 2025, showed varied results, with the Shanghai Composite Index and Shenzhen Component Index experiencing slight increases. The media sub-sectors had notable fluctuations, with BlueFocus and other companies showing significant gains [13][19]. 2. Key Company Recommendations - The report recommends several companies within the media sector, including: - Oriental Pearl (600637): Improved cash flow and AI-driven development [4]. - BlueFocus (300058): AI-driven revenue target of 3.47 billion to 4.7 billion for the year [4]. - Mango Excellent Media (300413): Recovery in advertising revenue [4]. - Wanda Film (002739): Focus on industry competition [4]. - Other notable mentions include CITIC Publishing (300788), Huace Film & TV (300133), and Shanghai Film (601595) [4]. 3. Financial Performance - The report indicates that the total net profit for the A-share media sector in Q3 2025 reached 10.079 billion, a 48% year-on-year increase, driven by low base effects and new product launches [14]. 4. AI and Technology Integration - The report emphasizes the ongoing exploration of AI's potential in the media sector, with companies leveraging AI for content creation and operational efficiency. The integration of AI is expected to enhance revenue generation and valuation in the media industry [15][16]. 5. Market Dynamics - The report notes that the film market is experiencing a resurgence, with significant box office revenues and a growing number of films being produced and released. The micro-drama sector is also expanding rapidly, indicating a shift in consumer demand towards shorter, more engaging content [29][30]. 6. E-commerce Trends - E-commerce platforms are adapting to consumer preferences, with innovations in product offerings and service models. The report highlights the competitive landscape among major players like Alibaba, JD, and Pinduoduo, particularly during promotional events like Double 11 [24][25]. 7. Future Outlook - The report anticipates that the media sector will continue to benefit from technological advancements and policy support, particularly in the context of the "15th Five-Year Plan" aimed at cultural and technological integration [16]. 8. Company Performance Forecasts - The report provides earnings per share (EPS) and price-to-earnings (PE) forecasts for various companies, indicating a generally positive outlook for the media sector [8].

Core Viewpoint - Yaoji Technology is facing significant challenges, including a decline in performance and a recent change in top management, which may impact its future strategic direction and operational efficiency [1][3][6]. Management Changes - Liang Meifeng, the former CFO and Vice President, resigned for personal reasons, and her position will be taken over by Ji Wenjun, a certified public accountant with a background in Ernst & Young [1][2]. - This marks the third change in the board and senior management within a year, indicating potential instability in leadership [1][2]. Financial Performance - For the first three quarters of 2025, Yaoji Technology reported a revenue of 2.108 billion yuan, a year-on-year decrease of 24.42%, and a net profit of 410 million yuan, down 7.51% [3]. - All three main business segments experienced revenue declines: poker business down 12.72%, gaming business down 6.33%, and internet marketing down 40.76% [3][4]. Structural Challenges - The company faces structural challenges in its core business, with the internet marketing segment contributing the highest revenue (36.19%) but having a low gross margin of 8.16% [5]. - The gaming segment, despite a high gross margin of 96.39%, is seeing a decline in revenue, contrasting with the overall growth in the domestic gaming market [5]. - The poker business, a traditional revenue source, also saw a decline in revenue and gross margin [5]. Shareholder Actions - The controlling shareholder, Yao Shoubin, announced plans to reduce holdings by up to 12.524 million shares, representing 3% of the total share capital, citing personal financial needs [6][7]. - Prior to this reduction, the Yao family collectively held 49.63% of the company's shares, indicating a significant influence on corporate governance [7]. Future Outlook - The new CFO, Ji Wenjun, faces the challenge of improving profitability, particularly in the low-margin internet marketing segment [7]. - Investors are advised to closely monitor the upcoming quarterly report for specific data and assess the new management's ability to drive business transformation and reverse the declining performance trend [7].

Core Insights - Yaoji Technology (002605.SZ) reported its Q3 2025 results, revealing that as of October 30, 2025, nine institutional investors held a total of 30.136 million A-shares, accounting for 7.22% of the company's total equity, which represents a decrease of 2.57 percentage points from the previous quarter [1] Institutional Investors - The total shareholding by institutional investors decreased by 2.57 percentage points compared to the previous quarter [1] - The institutional investors include various funds and insurance products, such as Xuan Yuan Private Fund, China Minsheng Bank, and China Life Insurance [1] Public Funds - Two public funds increased their holdings, namely Huaxia CSI Animation Game ETF and Huaxia Strengthened Income Bond A, with an increase ratio of 0.43% [2] - One public fund, China Merchants Sports Culture Leisure Stock A, reported a slight decrease in holdings [2] - One new public fund disclosed its holdings, which is Huaxia Fengyue Bond A, while 212 public funds were not disclosed in the current period [2] Social Security Funds - One new social security fund disclosed its holdings in Yaoji Technology, which is the National Social Security Fund 411 Portfolio [2] - One social security fund, the National Social Security Fund 602 Portfolio, was not disclosed in the current period [2] Insurance Capital - One insurance capital, China Life Insurance, reported a slight decrease in holdings compared to the previous quarter [2]

Group 1 - The company, Yaoji Technology, held its 24th meeting of the 6th board of directors on October 29, 2025, via telecommunication voting, discussing proposals related to the formulation and revision of certain company systems [1] - For the first half of 2025, Yaoji Technology's revenue composition was as follows: Internet marketing accounted for 36.19%, entertainment for 33.44%, cultural and sports entertainment for 29.8%, and other businesses for 0.58% [1]