Core Viewpoint - Shenzhou Taiyue's stock has experienced fluctuations, with a recent decline of 2.06% and a year-to-date increase of 24.37%, indicating volatility in investor sentiment and market performance [1][2]. Financial Performance - For the first half of 2025, Shenzhou Taiyue reported a revenue of 2.685 billion yuan, a year-on-year decrease of 12.05%, and a net profit attributable to shareholders of 509 million yuan, down 19.26% compared to the previous year [2]. - Cumulative cash dividends since the company's A-share listing amount to 1.297 billion yuan, with 372 million yuan distributed over the past three years [3]. Shareholder Structure - As of September 19, the number of shareholders decreased by 10.27% to 88,700, while the average number of circulating shares per person increased by 11.45% to 20,829 shares [2]. - The largest circulating shareholder is Hong Kong Central Clearing Limited, holding 56.3593 million shares, a decrease of 5.95812 million shares from the previous period [3]. Stock Market Activity - On September 30, Shenzhou Taiyue's stock price was 14.29 yuan per share, with a trading volume of 549 million yuan and a turnover rate of 2.06% [1]. - The stock has seen a net outflow of 57.2987 million yuan in principal funds, with significant selling pressure observed [1]. Business Segments - The company's main business segments include gaming (75.53% of revenue), AI/ICT operation management (19.89%), IoT/communication (2.04%), and innovative services (1.99%) [1]. - Shenzhou Taiyue operates within the media and gaming industry, with involvement in various concept sectors such as nuclear power, digital twins, and robotics [1].

Summary of the Gaming Industry Conference Call Industry Overview - The gaming industry in China has maintained high activity levels since the summer, with a market size of approximately 29 billion yuan in July, reflecting a year-on-year growth of nearly 5% [1][4] - Mobile game revenue showed a slight increase, with several new games performing well, such as "Douluo Dalu: Soul Master World," which generated over 100 million yuan in its first month [1][4] - The market size remained stable in August compared to July, but there was a year-on-year decline, with mobile game revenue decreasing by 4% [1][4] Key Insights - The overall performance of the gaming industry has been positive this year, supported by a relaxation of policies and an acceleration in supply growth [2] - The industry is in an upward trend, with new game launches significantly boosting company performance [2] - The release of 156 game licenses in September, including 145 domestic and 11 imported, indicates a healthy regulatory environment [6][7] Company-Specific Developments - Huatuo's core overseas products have shown strong performance, leading to an 11% month-on-month increase in revenue for Diandian Interactive [8] - Giant Network's game "Supernatural" has exceeded expectations in revenue stability, with plans to launch an overseas version next year [8] - Key products approved include new titles from Tencent, NetEase, and miHoYo, indicating strong competition among major players [6][7] International Market Performance - Chinese self-developed games generated nearly 1.7 billion USD in overseas revenue in July, with a year-on-year growth in single digits [5] - Despite a 10% year-on-year decline in August due to high base effects, some products like KingShow's "Frost Knight" maintained strong growth, with a 20% month-on-month increase [5] Future Trends - The legendary game market is substantial, with annual revenues of 30-40 billion yuan, and more legendary games are expected to enter the market [9] - Future growth will come from expanding partnerships with larger companies, the introduction of 25 key legendary games, and enhancements in PC, live streaming, and item trading functionalities [9] Product Development and AI Initiatives - Kaiying Network is entering a new product cycle, with "Blood of the River and Lake" launched in South Korea and plans for several new titles by 2025-2026 [10] - The AI product EVE is expected to launch by the end of the year, and the AI gaming platform Soon may begin commercialization [10] Performance of Key Companies - Gigabit has consistently outperformed expectations, with "Sword of the Hero" showing strong overseas revenue growth of 14% month-on-month in August [11] - Perfect World and Shenzhou Taiyue have new titles in development, with Perfect World's "Yihuan" showcased at the Tokyo Game Show [12] Overall Market Sentiment - The gaming industry remains strong, with companies performing well even in the traditionally slower month of September [13] - Continued investment opportunities are recommended in companies such as Giant Network, Kaiying Network, ST Huatuo, Perfect World, Gigabit, Shenzhou Taiyue, and Sanqi Interactive [13]

Group 1 - The core point of the news is that Shenzhou Taiyue's stock price dropped by 5.14% to 14.75 CNY per share, with a trading volume of 832 million CNY and a turnover rate of 3.00%, resulting in a total market capitalization of 29.016 billion CNY [1] - Shenzhou Taiyue, established on May 18, 2001, and listed on October 30, 2009, is primarily engaged in various sectors including operator services, IoT and communications, artificial intelligence and big data, mobile gaming, and innovative services [1] - The revenue composition of Shenzhou Taiyue is as follows: gaming accounts for 75.53%, AI/ICT operation management 19.89%, IoT/communications 2.04%, innovative services 1.99%, and other supplementary services 0.55% [1] Group 2 - From the perspective of major fund holdings, one fund under Taiping Fund has a significant position in Shenzhou Taiyue, specifically the Taiping Reform Dividend Selection Fund (005270), which held 600,000 shares in the second quarter, representing 5.24% of the fund's net value, making it the sixth-largest holding [2] - The Taiping Reform Dividend Selection Fund (005270) was established on December 1, 2017, with a current size of 135 million CNY, and has achieved a year-to-date return of 37.09%, ranking 2398 out of 8171 in its category, and a one-year return of 66.81%, ranking 1736 out of 8004 [2] - The fund manager of Taiping Reform Dividend Selection Fund is Xu Chuang, who has been in the position for 2 years and 85 days, with the fund's total asset size at 885 million CNY, achieving a best return of 57.96% and a worst return of 16.62% during his tenure [3]

Group 1 - The gaming sector experienced a decline at the beginning of trading, with companies such as Gigabit, Xinghui Entertainment falling over 5% [1] - Other companies like Xunyou Technology, 37 Interactive Entertainment, and Shenzhou Taiyue saw declines of over 3% [1] - Additional companies including Dihun Network, Kaiying Network, and Tom Cat also faced downward movement in their stock prices [1]

Core Viewpoint - The gaming industry in China is experiencing a significant increase in the issuance of domestic game licenses, with a total of 1,195 licenses granted in the first nine months of the year, surpassing the 959 licenses issued during the same period last year [1][3]. Group 1: License Issuance - In September, 145 domestic games were approved, contributing to a total of 1,195 domestic licenses issued this year, which is significantly higher than the 959 licenses issued in the same period last year [1][3]. - The average monthly issuance of licenses has increased from 88.8 in 2023 and 108.8 in 2024 to 132.8 in the first nine months of this year [1][3]. Group 2: Market Performance - The gaming market in August recorded a revenue of 29.263 billion yuan, showing a month-on-month growth of 0.61%, although it experienced a year-on-year decline of 13.01% due to high revenue from a major game in the previous year [4]. - Mobile game revenue reached 21.521 billion yuan, with a month-on-month increase of 0.85% and a year-on-year decline of 4.25%, while client game revenue was 6.563 billion yuan, showing a month-on-month decrease of 1.11% but a year-on-year increase of 17.59% [4]. Group 3: Key Products and Companies - Tencent's game "Delta Action" saw its daily active users rise to 30 million in September, topping the iOS sales chart, indicating strong profit contributions [4]. - The new game "Valorant: Energy Action" is expected to generate over 300 million yuan in its first month [4]. - Companies such as Tencent, NetEase, and Giant Network are highlighted for their strong product performance and market presence [4][5].

Investment Rating - The report assigns an "Increase" rating for the gaming industry, indicating a positive outlook compared to the CSI 300 index, with expected growth exceeding 15% [13]. Core Insights - In September, a total of 145 domestic games received approval, contributing to a total of 1,195 domestic game licenses issued this year, significantly higher than the 959 licenses issued in the same period last year [6][8]. - The gaming market in August showed stability, with a total revenue of 29.263 billion yuan, reflecting a month-on-month growth of 0.61% but a year-on-year decline of 13.01% [6][8]. - The report highlights the strong performance of leading products, such as Tencent's "Delta Action," which reached 30 million daily active users in September, and the anticipated revenue of over 300 million yuan for the new game "Valorant: Energy Action" in its first month [6][8]. Summary by Sections Game License Approvals - In September, 145 domestic games and 11 imported games received approval, with notable titles from Tencent, NetEase, and others included in the list [6][8]. - The approval rate for domestic game licenses has increased, with an average monthly issuance of 132.8 licenses in 2023, up from 88.8 in 2021 and 108.8 in 2022 [6][8]. Market Performance - The gaming market's revenue for August was 29.263 billion yuan, with mobile games generating 21.521 billion yuan and client games 6.563 billion yuan [6][8]. - The report notes that client games are experiencing growth due to cross-platform products, which enhances their profitability compared to mobile games [6][8]. Investment Recommendations - The report recommends companies with strong content reserves and solid fundamentals, including Kain Network, 37 Interactive Entertainment, Giant Network, Perfect World, and others [6][8]. - Specific stock recommendations include Kain Network (28.94 yuan), 37 Interactive Entertainment (22.49 yuan), and Giant Network (44.87 yuan), all rated for "Increase" [7][8].

Core Viewpoint - The company, Shenzhou Taiyue, is one of the earliest entrants in the information security business in China, focusing on providing security software and services to various industries such as telecommunications, energy, finance, and transportation [1] Group 1: Business Focus - The company specializes in three main areas of information security: identity security, asset security, and security management [1] - It has developed an integrated security operation center, identity security platform, asset security platform, and security management platform, along with over ten standardized security products [1] Group 2: Technical Expertise - The company has solid technical accumulation and practical experience in data security, covering areas such as data access control, data operation behavior auditing, fine-grained database management, database traffic auditing, API traffic auditing, data asset management, and data security operations [1]

Group 1 - Alibaba is actively promoting the construction of AI infrastructure with an investment of 380 billion and plans for additional funding [1] - The IPO of Moore Threads on the Sci-Tech Innovation Board is scheduled for September 26, with several GPU companies expected to initiate listings within the year [1] - Huawei's rotating chairman shared plans for the Ascend chip series, with the Ascend 950PR chip expected to launch in Q1 2026 and the Ascend 960 chip in Q4 2027 [1] Group 2 - The domestic AI industry chain is accelerating, with expectations for a spiral growth in large models, computing power, and applications [2] - The CSI Artificial Intelligence Theme Index (930713) has seen a strong increase of 1.79%, with notable gains in constituent stocks such as Lianqi Technology (up 7.53%) and iFlytek (up 6.47%) [2] - The AI Artificial Intelligence ETF (512930) has risen by 1.73%, with a recent price of 2.18 yuan, and has a management fee of 0.15%, the lowest among comparable funds [2] Group 3 - As of August 29, 2025, the top ten weighted stocks in the CSI Artificial Intelligence Theme Index account for 60.82% of the index, including companies like Xinyi Technology and Cambricon [3] - The top ten stocks by weight include Zhongji Xuchuang, Xinyi Technology, and iFlytek, with varying performance and weight percentages [4]

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]

Group 1 - The stock of Beijing Shenzhou Taiyue Software Co., Ltd. increased by 5.09% on September 24, reaching a price of 15.07 CNY per share, with a trading volume of 9.71 billion CNY and a turnover rate of 3.57%, resulting in a total market capitalization of 29.645 billion CNY [1] - The company was established on May 18, 2001, and went public on October 30, 2009. Its main business areas include operator services, IoT and communications, artificial intelligence and big data, mobile gaming, and innovative services [1] - The revenue composition of the company is as follows: gaming accounts for 75.53%, AI/ICT operation management 19.89%, IoT/communications 2.04%, innovative services 1.99%, and other supplementary services 0.55% [1] Group 2 - According to data from the top ten heavy stocks of funds, one fund under Galaxy Fund holds a significant position in Shenzhou Taiyue. The Galaxy Xinli Mixed A Fund (519652) held 174,900 shares in the second quarter, accounting for 0.88% of the fund's net value, ranking as the sixth-largest heavy stock [2] - The Galaxy Xinli Mixed A Fund was established on April 22, 2015, with a current scale of 232 million CNY. Year-to-date returns are 1.8%, ranking 7514 out of 8173 in its category; the one-year return is 9.06%, ranking 6965 out of 7996; and since inception, the return is 61.69% [2] Group 3 - The fund managers of Galaxy Xinli Mixed A are Liu Ming and Bao Wubin. Liu Ming has a cumulative tenure of 8 years and 292 days, with a total fund asset size of 5.545 billion CNY, achieving a best fund return of 140.79% and a worst return of -4.69% during his tenure [3] - Bao Wubin has a cumulative tenure of 3 years and 192 days, managing a total fund asset size of 1.09 billion CNY, with a best fund return of 39.56% and a worst return of -29.11% during his tenure [3]