Core Insights - The future of the film and television industry is expected to undergo significant changes due to the rapid development of artificial intelligence (AI) and its integration into content creation and distribution [2][3]. Group 1: Industry Changes - The traditional film industry is facing challenges from vertical content formats, but companies can adapt by producing high-quality horizontal content or by creating vertical content themselves [2]. - AI is seen as both a challenge and an opportunity for the film industry, potentially reducing costs significantly while increasing the volume of creative output [3]. Group 2: AI Integration - AI technology is rapidly evolving, with many issues related to content generation and consistency being resolved in a short time frame [3]. - iQIYI has made substantial investments in AI, aiming to reshape every aspect of content generation, recommendation, and user experience [4]. Group 3: New Initiatives - iQIYI plans to launch the first AI theater in China, "Bodexi·iQIYI AI Theater," which will solicit content ideas globally and provide technical support and subsidies to creators [5].

Core Insights - iQIYI has premiered Season 2 of "The Blooming Journey," a travel-themed reality show that emphasizes authentic female narratives and personal stories, launched on October 24, 2025 [1] - The show features five renowned female celebrities and two young companions, focusing on collaboration and self-discovery rather than competition [1] - The series showcases diverse Chinese destinations, including Inner Mongolia, Guizhou, Chongqing, Quanzhou, Hong Kong, and Macao, enriching viewers' understanding of Chinese culture [1] Performance Metrics - Season 2 generated over a thousand trending topics on social media before its premiere, indicating strong anticipation and engagement [2] - Season 1 achieved a content popularity index exceeding 8,000 and led third-party rankings from platforms like Enlightent and Dengta, appealing to both young audiences and lower-tier markets [2] Cultural Impact - The show has positively influenced tourism, notably increasing visitor numbers to Lugu Lake in Yunnan Province by 42.93% year-on-year during the 2025 National Day Holiday [3] - It has inspired travelers to engage with local traditions, such as sunrise watching and Mosuo cultural experiences [3] Strategic Positioning - "The Blooming Journey" reflects iQIYI's commitment to premium, IP-driven entertainment, alongside other successful variety shows like "The Rap of China" and "Become a Farmer," reinforcing its leadership in high-quality content [4] - iQIYI's strong portfolio of seasonal IP and innovative formats positions the company at the forefront of China's entertainment landscape, promoting inclusive storytelling and cultural connections [5]

Core Insights - iQIYI will host a virtual photography flagship open day at the Hengdian Film Industry Park on November 2, showcasing the latest cases and trends in virtual production technology [1][3] - The upgraded IQStage virtual production system will be demonstrated in real-time, allowing attendees to experience virtual shooting firsthand [3] - iQIYI has successfully produced several visually impressive series using virtual production technology since its establishment in Hengdian in 2022, including the first commercial series in China to use this technology, "Cloud Feather" [3] Group 1 - The flagship studio spans over 500 square meters with high-quality LED walls, supporting 200 flawless high-speed shots and a color gamut 1.2 times that of cinema screens [5] - iQIYI has introduced a heavy-duty waterproof electric control real scene turntable, overcoming previous challenges in virtual production [5] - The pricing for the upgraded virtual production system has been significantly reduced, with costs starting as low as 35,000 yuan per day, excluding digital scene production [5] Group 2 - The upgraded virtual photography studio has already been used for the filming of multiple series, receiving positive feedback for its seamless visual effects [5] - iQIYI's integration of over 20 patents and software copyrights into the IQStage platform has earned recognition from Beijing's Smart Broadcasting [3] - The company plans to complete the relocation and comprehensive upgrade of its virtual photography studio by the end of 2024 to better meet filming demands [3]

Core Viewpoint - The Ministry of Industry and Information Technology (MIIT) has identified issues with customer service accessibility for several internet companies, including iQIYI and Zhuanzhuan, highlighting the need for improvement in service capabilities [2] Group 1: Customer Service Issues - The MIIT's recent report on telecommunications service quality for Q3 2025 indicates that certain internet companies' customer service hotlines were found lacking [2] - Specific companies such as Sogou Browser and Dida Chuxing did not provide access to human customer service representatives, while iQIYI, Zhuanzhuan, and Sohu News had human customer service lines that were unreachable [2] - The MIIT has urged these companies to rectify the issues and enhance their service capabilities [2]

Core Insights - The Ministry of Industry and Information Technology has released the telecommunications service quality report for Q3 2025, focusing on key work areas, user complaints, and service requirements [1] Group 1: Telecommunications Service Quality - A third-party organization conducted tests on customer service hotlines of major internet companies, revealing that Sogou Browser and Dida Chuxing did not provide human customer service, while iQIYI, Zhuanzhuan, and Sohu News had unreachable human customer service [1] - The ministry has urged these companies to rectify the issues and improve their service capabilities [1] Group 2: User Complaints - In Q3 2025, complaints regarding poor mobile applications showed that 49.7% were related to cybersecurity issues, 29.6% involved personal information and permissions, and 20.7% were about information security [1] - The China Internet Association, in collaboration with app stores and security testing firms, has taken action to remove 142 problematic mobile applications [1]

Summary of Earnings Preview for China Internet and Other Services Industry Overview - The report focuses on the China Internet and Other Services sector, particularly highlighting companies involved in gaming and entertainment, such as Damai Entertainment, 37 Interactive Entertainment, G-bits, Perfect World, IQIYI, JOYY, Huya, and Focus Media [2][10]. Key Company Insights Damai Entertainment (1060.HK) - Forecasted 27% YoY total revenue growth in 1HF26, driven by 90% growth in IP business and 13% growth in offline entertainment [3]. - Expected net profit growth of 45% YoY [3]. 37 Interactive Entertainment (002555.SZ) - Anticipated 14% YoY revenue growth and 30% YoY adjusted net profit growth, attributed to new game releases [4]. G-bits (603444.SS) - Forecast aligns with preliminary announcements, with a focus on deferred revenue and 2026 pipelines [4]. Perfect World (002624.SZ) - Expected 34% revenue growth with a shift from a net loss of Rmb189 in 3Q24 to a net profit of Rmb326 in 3Q25 [5]. IQIYI (IQ.O) - Total revenue expected to be largely flat QoQ (-7% YoY), with a forecasted non-GAAP operating loss of Rmb23 million [6]. - Membership revenue projected to increase by 3% QoQ [6]. JOYY (JOYY.O) - Total revenue expected to grow 6% QoQ (-4% YoY), with net income remaining flat [7]. - Focus on advertising revenue and expense control [7]. Huya (HUYA.N) - Anticipated total revenue rebound in 3Q25 with an 11% YoY increase and a narrowing net loss [7]. Focus Media (002027.SZ) - Forecasted revenue growth of 4% YoY, driven by stronger demand from internet advertisers [8]. - Expected net profit growth of 10% YoY [8]. Financial Metrics and Projections - **Damai Entertainment**: Total revenue projected at Rmb3,879 million for 1HF26, with a normalized net profit margin of 12.8% [14]. - **37IE**: Revenue expected at Rmb4,674 million for 3Q25, with a gross margin of 79% [15]. - **G-bits**: Revenue forecasted at Rmb1,631 million for 3Q25, with a gross margin of 92% [17]. - **Perfect World**: Revenue expected at Rmb1,766 million for 3Q25, with a gross margin of 65% [18]. - **IQIYI**: Total revenues projected at Rmb6,688 million for 3Q25, with a gross profit margin of 18% [20]. - **Huya**: Total revenues expected at USD 1,710 million for 3Q25, with a gross profit margin of 13% [21]. - **JOYY**: Total revenues projected at USD 537 million for 3Q25, with a gross margin of 36% [24]. Additional Insights - The report emphasizes the importance of management comments on revenue growth momentum and normalized margin levels across companies [3][4][5]. - The potential for upside surprises in revenue growth for several companies, particularly in the context of new game releases and advertising demand, is highlighted [12][13]. - The overall industry view remains attractive, with a focus on the evolving landscape and potential regulatory impacts [10]. This summary encapsulates the key points from the earnings preview, providing a comprehensive overview of the anticipated performance and strategic focus of the highlighted companies within the China Internet and Other Services sector.

Core Insights - The presentation by iQIYI's Senior Vice President Dai Ying emphasized the importance of foundational theories in content creation, particularly in the context of reality-themed projects [2][7] - The industry is currently facing challenges that require a return to the basics of storytelling and character development to resonate with audiences [2][4] Group 1: Creative Foundations - The core of creative foundational theory is centered around the expression of creative themes, where unique topics are crucial for project success [2] - Character development is essential for long-form dramas, as it fosters emotional connections between viewers and the characters [2][4] - The structure and narrative techniques used in storytelling are vital components of the creative process [2] Group 2: Understanding User Needs - User demand is a critical factor influencing content creation, necessitating continuous learning and adaptation by creators to meet evolving audience expectations [3] - Timing plays a significant role in the success of content, as demonstrated by the unique positioning of the series "生万物" in the current market [3] - Emotional resonance is key to engaging audiences, requiring creators to deeply understand characters' perspectives and inner thoughts [4] Group 3: Differentiated Practices - iQIYI has successfully launched several reality-themed projects that initially appeared to be niche but achieved significant acclaim through differentiated storytelling [5][6] - The series "理想之城" explores the previously underrepresented profession of cost engineers in the construction industry, resonating with viewers through its authentic portrayal of challenges faced by private enterprises [5] - "警察荣誉" was created in response to a gap in the market for police narratives that focus on everyday human experiences rather than sensationalized crime stories [5][6] Group 4: Content Value and Industry Outlook - The success of "生万物" highlights the importance of valuable content that sparks discussion and engagement on social media platforms [6] - The industry is encouraged to maintain a positive and resilient mindset, focusing on quality content creation regardless of market conditions [6][7] - Dai Ying's insights provide a roadmap for creators to navigate the current challenges in the industry, promoting healthier and higher-quality content development [7]

Core Insights - The 2025 China Broadcasting and Television Quality Creation Conference aims to summarize achievements in broadcasting and television content creation and explore innovative paths for audiovisual content in the new era [1] - The conference emphasizes a people-centered creative approach, the integration of culture and technology, and the importance of continuing Chinese cultural heritage while promoting international communication [1] Group 1 - The conference highlights the need for the broadcasting and audiovisual industry to enhance the quality and quantity of content, promote systemic reform, and strengthen technological support [1] - The "Documentary Innovation Action Plan" was launched to encourage the expansion of themes and innovative expressions in documentary creation [2] - The "Beautiful China" quality creation plan was introduced to support television projects that focus on contemporary themes and reflect people's sentiments [2] Group 2 - The conference will last until October 29 and includes various events such as a quality night, ten parallel forums, and six artistic salons, attracting over 1,000 industry organizations and more than 9,000 representatives [3] - The conference serves as a multi-functional platform for showcasing achievements in broadcasting and television, stimulating innovation, and promoting high-quality industry development [3]

Core Viewpoint - The opening of a state-of-the-art virtual photography flagship studio by iQIYI in Hengdian marks a significant advancement in virtual production technology for the film and television industry [3][6]. Group 1: Event Details - iQIYI will host an open day for its virtual photography flagship studio during the Hengdian Film Festival on November 2, featuring industry leaders sharing insights on virtual production technology [3]. - The event will include live demonstrations of the upgraded IQStage virtual production system, showcasing the entire process from camera tracking to real-time rendering [5]. Group 2: Technological Advancements - The newly upgraded virtual studio has already facilitated the production of several high-quality series, including "Fox Demon Little Red Daughter" and "Cloud Feather," with "Cloud Feather" being the first commercial series in China to utilize virtual production technology [6]. - The flagship studio features a custom 500 square meter immersive LED wall capable of supporting over 200 FPS low gray-scale high-speed shooting, addressing previous challenges in virtual production [6]. Group 3: Cost and Accessibility - To lower the barriers to using virtual production technology, iQIYI has significantly reduced the pricing of its upgraded virtual production system, with costs starting as low as 35,000 yuan per day, excluding digital scene production [6]. Group 4: Industry Impact - The virtual production segments released have received unanimous praise from industry creators and audiences for their exceptional visual effects, indicating a positive reception and potential for future growth in the industry [7].

Core Insights - iQIYI is hosting a virtual photography flagship open day at the Hengdian Film and Television Industrial Park on November 2, showcasing the latest advancements in virtual production technology [1] - The upgraded IQStage virtual production system will be demonstrated in real-time, allowing attendees to experience the virtual shooting process firsthand [1][2] - iQIYI has successfully produced several high-quality series using virtual production technology, including "Fox Demon Slayer" and "Cloud Feather," with the latter being the first commercial series in China to utilize this technology [2][3] Group 1 - The open day will feature industry leaders sharing insights on the application of virtual production technology in filmmaking [1] - iQIYI has integrated over 20 patents and software copyrights into its IQStage platform, which received significant recognition from Beijing's Smart Broadcasting [2] - The flagship studio, located in Hengdian, includes a custom 500 square meter immersive LED wall capable of supporting over 200 FPS low gray level shooting, addressing previous challenges in virtual production [2] Group 2 - iQIYI has lowered the cost of using its upgraded virtual production system to as low as 35,000 yuan per day, aiming to reduce barriers for production teams [2] - The newly upgraded virtual studio has been utilized for the filming of multiple series, receiving positive feedback for its visual effects [3] - The event on November 2 aims to foster collaboration among industry pioneers to advance the industrialization of film and television [4]