Investment Rating - The industry investment rating is "Positive" (maintained) [2] Core Viewpoints - The report emphasizes the potential of AI applications in video understanding and generation, particularly through the launch of Kwai Keye-VL by Kuaishou, which showcases advanced multimodal capabilities [5] - The report suggests continued investment in the gaming sector, particularly with the recent approval of numerous domestic game licenses, indicating a favorable environment for new game launches [6] - The upcoming summer season is expected to boost consumption in various IP sectors, including games, animated films, concerts, and trendy toys, with specific recommendations for companies in these areas [6] Summary by Sections Industry Data Overview - "Delta Action" ranked first in the iOS free chart, while "Honor of Kings" topped the iOS revenue chart as of June 28, 2025 [13][17] - The film "Sauce Garden Case" achieved the highest box office for the week, grossing 1.64 billion [28] Industry News Overview - AI advancements in embodied intelligence and brain-computer interfaces are highlighted, with ongoing releases in gaming and film sectors [35] - The report notes the launch of Gemini, the first model capable of running locally on robots, enhancing task adaptability and efficiency [35] Company Recommendations - For AI video applications, key recommendations include Kuaishou-W, Shanghai Film, and Tencent Holdings, with beneficiaries like Alibaba-W and Kunlun Wanwei [5] - In the gaming sector, companies such as Xindong Company, Giant Network, and Perfect World are recommended, with beneficiaries including Youyi Time and Kingsoft [6] - For animated films, Shanghai Film is highlighted, while beneficiaries include Zhongwen Online [6] - In the concert and performance sector, Fengshang Culture is recommended, with beneficiaries like Alibaba Pictures and Maoyan Entertainment [6] - The trendy toy sector recommends Blukoo and Aofei Entertainment, with beneficiaries including Pop Mart and Quantum Song [6]

Core Viewpoint - The China Securities Animation and Game Index has shown a recent upward trend, indicating a positive performance in the animation and gaming sector despite some fluctuations over the past months [2]. Group 1: Index Performance - The China Securities Animation and Game Index increased by 0.37% to 1741.71 points with a trading volume of 12.752 billion yuan [1]. - Over the past month, the index has risen by 6.34%, while it has decreased by 2.44% over the last three months. Year-to-date, the index has increased by 16.76% [2]. Group 2: Index Composition - The index comprises companies primarily engaged in animation, comics, and gaming, reflecting the overall performance of the listed companies in the animation and gaming industry [2]. - The top ten weighted companies in the index include: Giant Network (10.64%), Kaiying Network (10.51%), Light Media (10.3%), 37 Interactive Entertainment (9.45%), Shenzhou Taiyue (7.73%), Perfect World (7.39%), ZQ Technology (5.59%), G-bits (4.42%), Youzu Interactive (4.03%), and Zhejiang Shuju Culture (3.55%) [2]. Group 3: Industry Breakdown - The index's holdings are predominantly in the communication services sector, accounting for 91.74%, followed by information technology at 4.49% and consumer discretionary at 3.77% [2]. Group 4: Index Adjustment and Fund Tracking - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [3]. - Public funds tracking the animation and gaming index include various ETFs from Guotai, Huaxia, and Haitai Baipin [3].

Investment Rating - The industry investment rating is "Positive" (maintained) [2] Core Views - The gaming industry is entering a recovery phase, with a 9.9% year-on-year growth in the Chinese gaming market as of May 2025, driven by new game releases and upcoming summer titles [5] - AI applications are accelerating in various sectors, including content creation, entertainment, education, and e-commerce, with significant advancements in AI models and tools [4][5] - The report emphasizes the importance of focusing on mid-year performance and new content releases to capitalize on emerging consumer trends in IP [5] Summary by Sections Industry Data Overview - "Delta Action" ranked first in the iOS free chart, while "Honor of Kings" topped the iOS revenue chart as of June 21, 2025 [12][16] - The film "Sauce Garden Case" achieved a weekly box office of 1.37 billion [28] AI Evolution Driving Industry Change - Multiple large AI models have been released or upgraded, enhancing capabilities in various applications [35] - The introduction of the MiniMax-M1 model signifies a shift towards efficient, low-cost AI solutions with strong reasoning capabilities [38] Gaming Sector Insights - The mobile gaming market saw a 12.0% year-on-year growth, with self-developed games generating overseas revenue increasing by 6.9% [5] - New game launches and summer releases are expected to boost the gaming sector's performance in Q2 and Q3 [5] Recommendations for Investment - Key recommendations include Tencent Holdings and Kuaishou-W for large models/agents, with Alibaba-W and SenseTime-W as beneficiaries [4] - The report suggests focusing on mid-year earnings and new content to drive investment in IP new consumption sectors, including gaming, short dramas, films, and trendy toys [5]

Core Insights - In May, ByteDance maintained a significant lead in overseas revenue among non-gaming Chinese companies, while Ruqi Software saw a revenue surge of over 32.4% due to its AI-enhanced app features [3][4] - Meitu's overseas revenue increased by over 12.4% driven by its AI features in the app "Wink," contributing to its stable ranking [3] - Xiaohongshu, rebranded as "rednote," experienced a 75% increase in overseas revenue, helping its parent company rise in rankings [4] Non-Gaming Companies - ByteDance ranked first with 78 apps, maintaining its leading position in overseas revenue [1] - Ruqi Software's app "PictureThis" achieved an estimated monthly revenue of nearly 100 million yuan, marking a continuous growth trend [3] - Meitu's "BeautyCam" and other apps are part of its strategy to embrace AI, contributing to revenue growth [3] - Xiaohongshu's global strategy has led to a stable monthly active user base exceeding 10 million [4] - Youku's overseas version saw an 18.9% revenue increase due to popular content, allowing it to return to the rankings [4] Gaming Companies - Diandian Interactive's new game "Kingshot" saw a revenue increase of over 81.7%, reaching an estimated 190 million yuan [7] - Lilith's game "AFK Journey" experienced a revenue growth of over 54.9%, particularly in the U.S. market [7] - NetEase's new game "Dunk City Dynasty" generated over 1 million USD in less than ten days, indicating potential for future growth [8] - Jiangyu Interactive's "Top Heroes" achieved an estimated revenue of nearly 230 million yuan, contributing to its ranking improvement [8] - Yishijie’s new game "Lands of Jail" generated over 8.21 million USD, with a growth rate of over 75.4% [9]

Group 1 - The core viewpoint of the news is the performance of the CSI 500 Communication Services Index, which shows a recent increase of 6.57% over the past month, a decrease of 6.16% over the past three months, and an increase of 9.73% year-to-date [2] - The CSI 500 Communication Services Index is composed of various industry companies classified into 11 primary industries, 35 secondary industries, and over 90 tertiary industries, providing a comprehensive analysis tool for investors [2] - The top ten weighted stocks in the CSI 500 Communication Services Index include Light Media (6.7%), Kaiying Network (6.3%), Yanshan Technology (6.27%), Hengtong Optic-Electric (6.18%), Giant Network (5.86%), Haige Communication (5.42%), Wangsu Technology (5.2%), BlueFocus Communication Group (4.9%), Shenzhou Taiyue (4.64%), and Guangxun Technology (4.47%) [2] Group 2 - The market share of the CSI 500 Communication Services Index is dominated by the Shenzhen Stock Exchange at 65.69%, while the Shanghai Stock Exchange accounts for 34.31% [2] - The industry composition of the CSI 500 Communication Services Index shows that cultural entertainment accounts for 45.44%, communication equipment for 31.52%, data centers for 9.58%, digital media for 8.56%, and marketing and advertising for 4.90% [2] - The index sample is adjusted every six months, with adjustments implemented on the next trading day following the second Friday of June and December [3]

Core Viewpoint - The Chinese gaming market is experiencing significant growth, with a projected market size of 857.04 billion yuan in Q1 2025, reflecting a year-on-year increase of 17.99% [1]. Group 1: Market Performance - In April 2025, the Chinese gaming market size reached 273.51 billion yuan, showing a year-on-year growth of 21.93% and a month-on-month increase of 2.47% [1]. - The gaming industry is characterized by high demand driven by consumer sentiment, with trends such as "self-consumption" leading to increased engagement in gaming for enjoyment and achievement [1]. Group 2: Product Supply - In 2024, a total of 1,416 game licenses were issued, marking a 32% year-on-year increase, with an average of 118 licenses granted per month [2]. - The game license inventory is expanding, with notable titles from major companies like Tencent and NetEase, indicating a robust pipeline of new games [2]. Group 3: New Game Launches - New games are performing well, with titles like "暴吵萌厨" and "伊瑟" achieving high rankings in the iOS free game charts shortly after their release [3]. - Century Huatong's new game "Kingshot" has seen its revenue double month-on-month, reaching over 75 million USD in cumulative revenue within three months of launch [3]. Group 4: Policy Support - The Zhejiang provincial government has introduced measures to support the internationalization of the gaming industry, which includes 20 specific initiatives aimed at enhancing global competitiveness [4]. - The policy support is expected to further stimulate growth in the gaming sector, aligning with the upward product cycle and performance recovery [4]. Group 5: Recommended Companies - Key companies recommended for investment include Xindong Company, Kaixin Network, and NetEase, among others, which are expected to benefit from the industry's growth [5].

Group 1 - The popularity of stablecoins is rising, with a resonance between the digital currency and AI industry chains [1] - The AI ETF (515070) has seen significant gains, with stocks like NewEase rising over 5%, and other tech stocks such as Zhongji Xuchuang, Guangxun Technology, and Shenzhou Taiyue also experiencing increases [1] - Meta AI has launched its first generative video editing feature, allowing users to make intelligent changes to clothing, scenes, and lighting with over 50 preset AI prompts, currently available in more than ten countries [1] Group 2 - China International Capital Corporation (CICC) believes that domestic large models are approaching international standards in key areas such as multimodal capabilities and inference efficiency, with a focus on companies that can commercialize these technological advantages [1] - The industry is entering an "application verification period," with high-value sectors like healthcare and finance becoming the main battlegrounds for competition, where technical barriers and industry know-how are crucial for long-term advantages [1] - The AI ETF (515070) tracks the CS AI Theme Index (930713), selecting component stocks that provide technology, basic resources, and applications for AI, focusing on the midstream and upstream of the AI industry chain [1] Group 3 - The top ten weighted stocks in the AI ETF include leading domestic tech companies such as Cambricon Technologies, Hikvision, Zhongji Xuchuang, Zhongke Shuguang, iFlytek, Weir Shares, NewEase, Lanke Technology, Kingsoft, and Unisplendour [1]

Investment Rating - The report maintains a "Buy" rating for the media industry [5] Core Insights - The media industry (Shenwan) saw a weekly increase of 1.55%, ranking 4th among industries, while the Shanghai Composite Index and Shenzhen Component Index both fell by 0.25% and 0.60% respectively [12][18] - Key companies such as Yuanlong Yatu, Chuanwang Media, and Giant Network showed strong performance, with notable weekly gains [18] - The gaming sector continues to thrive, with 33 Chinese companies making it to the global mobile game publisher revenue list, collectively earning $20.2 billion, accounting for 36.6% of the total revenue [29] Summary by Sections Market Performance - The media industry experienced a weekly increase of 1.55%, outperforming the Shanghai Composite Index and Shenzhen Component Index, which fell by 0.25% and 0.60% respectively [12] - The gaming sector saw a 2.57% increase, while advertising and film sectors also reported gains [12][18] Key Industry Data AI Application Data - Gemini's web access increased by 28.9% in May, ranking third among AI products, while Sora's access surged by 121.25% [22] - The top five AI products in China include DeepSeek, Nano AI Search, Doubao, Qwen.ai, and Baidu Wenku [24] Gaming Data - The top three mobile games as of June 12, 2025, are "Honor of Kings," "Mingchao," and "Peace Elite" [27] - The newly launched game "Zhang Jian Chuan Shuo" ranked 15th on the iOS bestseller list [27] - Tencent remains the top mobile game publisher, with "Delta Action" showing a 29% increase in revenue [29] Film Data - The total box office for the week of June 7-13, 2025, was 244 million yuan, with "Mission: Impossible 8" leading the box office [34] - Upcoming films for the summer season are generating significant attention, particularly "Breakup List" [35] Key Industry Events and Announcements - The Zhejiang Provincial Government issued measures to support the overseas expansion of the gaming industry, effective July 10, 2025 [38] - Tencent Music announced plans to acquire Ximalaya for $12.6 billion in cash and stock [38] - Chinese Online launched the "XIAOYAO" platform for international creators, focusing on AI-assisted writing [38]

Group 1 - The core point of the news is that Beijing Shenzhou Taiyue Software Co., Ltd. has applied for a patent related to a method and device for identifying network interruptions in home networks based on temporal associations [1] - The patent application, published as CN120151241A, was filed on May 2025 and focuses on network management technology [1] - The method involves obtaining periodic logs within the current time slice to reconstruct the network topology and identify potential interruptions in the home network, specifically regarding PPPoE interruptions and gateway events [1] Group 2 - Beijing Shenzhou Taiyue Software Co., Ltd. was established in 2001 and is located in Beijing, primarily engaged in technology promotion and application services [2] - The company has a registered capital of 1,962.564954 million RMB and has made investments in 43 enterprises [2] - The company has participated in 2,837 bidding projects and holds 578 patents along with 132 trademark registrations [2]

Company Overview - Shenzhou Taiyue (300002) closed at 11.04 yuan on June 13, 2025, down 1.34% from the previous week’s 11.19 yuan [1] - The stock reached a high of 11.49 yuan and a low of 10.7 yuan during the week [1] - The current total market capitalization is 21.667 billion yuan, ranking 7th in the gaming sector and 712th among all A-shares [1] Company Announcements - The company completed the election of the ninth board of directors and the appointment of senior management on June 10, 2025 [2] - The first meeting of the ninth board of directors established special committees and elected David Mao as chairman and Li Li as vice chairman, with Mao also appointed as president [2] - The 2024 annual general meeting approved several important resolutions, including the 2024 annual report and the proposal for director remuneration for 2025 [2] - A legal opinion from Beijing Dacheng Law Firm confirmed that the procedures for the annual general meeting complied with relevant laws and regulations [2] - The eighth board member and COO, Zhai Yibing, is no longer serving as a director or senior management [2]