Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The anime and game adaptation industry is a vital and dynamic segment of the cultural creative industry, driven by the rise of digital entertainment and the two-dimensional culture [4][5] - The industry encompasses a full value chain, including copyright acquisition, content development, technical implementation, marketing, and user operation [4][5] - The market size of the anime game adaptation industry in China has surpassed 100 billion RMB, with a compound annual growth rate (CAGR) of over 15% [16][17] - The industry is expected to continue its rapid growth, potentially exceeding 200 billion RMB in the next five years, fueled by technological advancements and a large user base [21] Industry Overview - The anime game adaptation industry involves transforming anime works into games and vice versa, requiring deep understanding and innovative design to retain the original spirit while enhancing user experience [4][5] - Key business models include IP licensing for game development, game IP licensing for animation production, and the development of derivative products [6][7] - The industry chain includes content creation, copyright operation, technical development, distribution channels, and marketing strategies [8][9] Market Demand Analysis - The target user demographic primarily consists of individuals aged 15 to 35, with a slight male predominance, although female engagement is increasing [24][27] - Users exhibit diverse interests, including two-dimensional culture, competitive gaming, and immersive storytelling, with a strong inclination towards high-quality content and innovative gameplay [28][30] - The demand for anime adaptation games focuses on faithful story representation and character development, while game adaptation anime seeks to deepen narrative and character backgrounds [33][36] Competitive Landscape - Major players like Tencent, NetEase, and Bilibili dominate the market, leveraging extensive IP resources and advanced technology to maintain a competitive edge [46][47] - The industry is characterized by frequent collaborations and alliances among anime production companies, game developers, and technology service providers [48] - Successful adaptation cases, such as "Honor of Kings" and "Douluo Dalu," highlight the importance of high-quality content and user community engagement [51][52] Technological Development Trends - The application of VR and AR technologies enhances user immersion and interactivity in anime game adaptations [58] - AI plays a crucial role in content creation, user behavior analysis, and personalized recommendations, significantly improving production quality and efficiency [59] Future Development Outlook and Strategic Recommendations - The market is projected to grow steadily, with a focus on content diversification and user segmentation to meet varied consumer demands [61] - Companies should prioritize original content development and IP protection to enhance brand competitiveness and user loyalty [67] - Strengthening cross-industry collaborations and expanding into international markets are essential for sustained growth and cultural exchange [70]

Core Insights - The conference on embodied intelligence and humanoid robots in Hefei, Anhui, highlighted the integration of technology and practical applications in the industry, with over 60 supply chain companies and 40 industry chain enterprises participating [1] - NetEase Fuxi received the "Yanshi·Scene Application Intelligence Award" for its outstanding technological innovation and practical applications in the field of embodied intelligence [1] - The industry is entering a phase of practical implementation, with government policies supporting the development of embodied intelligence, and trends indicating a rise in humanoid robots and decreasing costs [5] Industry Trends - Embodied intelligence has been included in government work reports, indicating strong policy support for its development [5] - The industry is experiencing a shift with industrial leadership, an increase in humanoid robots, and advancements in technology such as generalized brain functions and refined motor control [5] - Despite advancements, the industry faces challenges such as data scarcity, the gap between simulation and reality, and ethical concerns [5] Company Innovations - NetEase Fuxi aims to reshape productivity in embodied intelligence through "virtual-real integration," focusing on human-machine collaboration and leveraging AI technology to enhance labor productivity [5][6] - The company has introduced an innovative platform based on AOP (Agent-Oriented Programming) to organize individual intelligence into efficient collaborative networks, addressing high data collection costs and low efficiency [6] - The platform supports various task types and includes automatic quality inspection and dynamic evaluation capabilities, enhancing data production efficiency and accessibility [6] Technological Advancements - NetEase Fuxi is applying its gaming AI expertise to the field of embodied intelligence, providing robots with emotional and life-like qualities through advanced data and algorithms [7] - Technologies such as expression AI and action transfer enable robots to exhibit natural emotional expressions and learn complex skills efficiently [7] - The company has developed a digital twin simulation system for real-world environment reconstruction, enhancing training for embodied remote operations and intelligent machinery [7] Practical Applications - The "Mechanical Intelligence" framework for the engineering machinery sector has demonstrated significant efficiency improvements, achieving 80% of human efficiency with minimal human intervention in real-world tests [8] - The technology has potential applications across various sectors, including agriculture, unmanned factories, smart warehousing, and environmental monitoring [8] - NetEase Fuxi's platform aims to create a global multi-agent collaboration system, integrating dispersed resources to enhance collective intelligence [8] Future Outlook - The future of embodied intelligence lies in integration rather than replacement, with NetEase Fuxi committed to transforming cutting-edge technology into practical productivity [9]

Core Insights - The article features a rare in-depth conversation with the renowned entrepreneur and investor Duan Yongping, discussing his philosophy of "being true to oneself" and its application in business, investment, and personal development [3][4][6]. Investment Logic - Duan emphasizes that understanding the business is the core of investment, sharing insights from his experience with companies like Apple and Moutai, highlighting the importance of business models and corporate culture in investment decisions [4][24][25]. Corporate Culture and Succession - The success of companies like OPPO and vivo is attributed to a hiring principle where cultural fit is prioritized over capability, and a systematic approach to identifying compatible partners over time [5][29][30]. Marketing Principles - Duan advocates for honesty in marketing, stating that communication with users should be efficient and truthful, which he believes is essential for building trust and brand loyalty [6][55]. Education Philosophy - He provides insights on parenting, arguing against physical punishment and advocating for unconditional love and boundary-setting to foster a sense of security in children [6][74][75]. Long-term Perspective - Duan defines a "calm mind" as rationality and long-term thinking, suggesting that maintaining a long-term perspective can lead to better decision-making in both business and life [6][92]. Reflections on Success - The conversation touches on the role of luck and effort in success, with Duan asserting that while luck plays a part, consistent effort and understanding one's business are crucial for achieving long-term success [6][78][82]. Insights from Buffett's Lunch - Duan shares a key takeaway from a lunch with Warren Buffett, emphasizing the importance of a company's business model and culture as filters for investment decisions [4][87][88]. AI and Future Perspectives - The discussion includes thoughts on AI, recognizing its potential to enhance efficiency while also acknowledging the uncertainties it brings to the future [6][90]. Philosophy of "Being True to Oneself" - Duan's overarching philosophy revolves around the concept of "being true to oneself," which he believes underpins both effective business strategies and a fulfilling life [6][93].

新力量 New Force 第一上海研究部 research@firstshanghai.com 总第 4920 期 2025 年 12 月 9 日 星期二 研究观点 【公司研究】 网易（NTES.US/9999.HK，买入）：Q3 递延收入同比增长 25%，未来游戏产品储备丰富 【公司评论】 特斯拉（TSLA）：周报 奈飞（NFLX）：奈飞+华纳，下一个时代的媒体巨头 评级变化 | 公司 | 代码 | 评级 | 目标价(港元） | | 2025年EPS(港元) | | | 2026年EPS(港元) | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 新 旧 新 | 旧 | 变动 | 新 | 旧 | 变动 | 新 | 旧 | 变动 | | 网易（美元） | NTES | 买入 买入 165.00 | 160.00 | 3% | 8.300 | 8.600 | -3% | 8.800 | 9.100 | -3% | 第一上海证券有限公司 香港中环德辅道中 71 号永安集团大厦 19 楼 咨询热线：400- ...

Investment Rating - The report assigns a "Buy" rating with a target price of $165.00, representing an upside potential of 18.04% for US shares and 18.42% for HK shares [2][4]. Core Insights - The company reported a 25% year-on-year increase in deferred revenue, indicating a strong future product pipeline in gaming [4]. - The gaming and related services revenue grew by 11.8% year-on-year, driven by both new and existing game titles, with mobile gaming revenue increasing by 6.6% [4]. - The company is expected to achieve a revenue CAGR of 12.9% and a Non-GAAP net profit CAGR of 15.5% from 2025 to 2027 [4]. Financial Performance Summary - For the fiscal year ending December 31, 2025, total revenue is projected to reach $16,175 million, reflecting an 8.6% increase from the previous year [3]. - Non-GAAP net profit is forecasted to be $5,408 million for 2025, with a year-on-year growth of 13.2% [3]. - The company achieved a GAAP net profit of 87.9 billion RMB in Q3 2025, marking a 31.8% increase year-on-year [4]. Revenue Breakdown - The gaming segment is expected to generate revenue of 940 billion RMB in 2025, representing a 12.4% year-on-year growth [4]. - The report highlights the successful launch of new titles such as "Dreamland" and "Yanyun," which have received positive feedback in international markets [4]. Shareholder Information - Major shareholders include Ding Lei with a 45.78% stake, followed by BlackRock and The Vanguard Group with 3.02% and 2.47% respectively [2].

Core Insights - The mobile game market in November 2025 showcased a diverse range of popular titles, with classic IP adaptations gaining significant traction and established products experiencing renewed growth driven by quality content [1] Download Rankings - The top three games in the download rankings were "Delta Operation," "Valorant: Source Action," and "Honor of Kings" [1] - Six new games entered the download rankings, with "Battle Heroes," "Jing·Jie: Blade Sound," and "Dawn of the Wasteland" being notable new releases [1] - "Jing·Jie: Blade Sound," a 3D action mobile game based on the popular anime "BLEACH," achieved a strong performance, reaching the top 12 in the download rankings shortly after its release [1][3] - The game had over 15 million pre-registrations, indicating strong IP appeal and player interest [1] Game Features and Innovations - "Jing·Jie: Blade Sound" is noted for its high fidelity to the original anime, with a focus on storyline, art style, and character abilities [3] - The game features a unique combat system that allows for skill combinations and recreates iconic battles from the anime, enhancing player engagement [3] - "Dawn of the Wasteland," a survival building game, also performed well, entering the top 17 of the download rankings with over 8 million pre-registrations [4] - The game emphasizes a low barrier to entry for players, allowing for quick immersion in survival mechanics [4][6] Revenue Rankings - "Honor of Kings" and "Delta Operation" topped the revenue rankings, with "Endless Winter" rising to third place [4] - Six new titles entered the revenue rankings, including "Honkai: Star Rail," "Arknights," and "QQ Dance" [4] - "Honkai: Star Rail" achieved a notable rise to the top 12 in revenue rankings following the release of its 3.7 version, which included new characters and engaging events [7][9] Player Engagement and Marketing Strategies - The 3.7 version of "Honkai: Star Rail" featured a new character and various promotional activities that significantly boosted player engagement [9] - "Light: Encounter" saw a substantial increase in revenue due to recent content updates and events, including a Halloween-themed activity and a collaboration with "Werewolf" [10][12] - The game has also expanded its cultural reach through cross-media projects, including an animated film that enhances its IP influence [12][19] Market Trends - The November rankings reflect a trend towards deep content innovation and refined operations as key drivers of growth in the competitive mobile gaming market [19] - The majority of games in the rankings were action-oriented, with Tencent and NetEase being the leading publishers [19]

Investment Rating - The report suggests a "barbell" investment strategy focusing on companies with stable cash flows supporting AI-related investments and those with strong operational capabilities for overseas expansion [1][3]. Core Insights - 2026 is viewed as a pivotal year for capturing user attention in the AI era, emphasizing the importance of lowering usage barriers, enhancing decision-making efficiency, and creating real value [1]. - Companies like Tencent, Alibaba, and Kuaishou are highlighted for their potential to benefit from AI-driven growth in advertising and cloud services, while firms like NetEase and Trip.com are noted for their stable earnings growth and reasonable valuations [1][3]. Summary by Sections AI Theme - Companies to watch include Tencent, which is expected to benefit from AI-driven advertising and cloud growth, Alibaba, which has a lower valuation compared to peers, and Kuaishou, which is making progress in monetizing AI applications [1][3]. Profit Growth Certainty - Focus on companies with reasonable valuations and strong performance, such as NetEase and Trip.com, which are expected to maintain stable profit growth [1][3]. E-commerce and Online Retail - The online retail sector is anticipated to see growth in experiential consumption, while competition in physical goods retail may normalize due to reduced government subsidies [3][15]. - Instant retail is expected to maintain high GMV growth, but the overall e-commerce sector may face challenges in revenue and profit growth due to competitive pressures [3][15]. Online Gaming and Music - The online gaming industry is projected to grow by around 10% in revenue, with profit growth expected to be between 10-15% [15]. - The online music sector is expected to see revenue and profit growth of 10-15%, although competition from ByteDance's music platform poses challenges [15][18]. Cloud and Advertising - Cloud and advertising are expected to remain the main growth drivers for companies leveraging AI, with a focus on investment returns [3][39]. Overseas Expansion - The report highlights the potential for overseas expansion in cloud services and OTA, with companies that have strong cash flow and profit margins likely to perform better in the long term [3][15]. Investment Recommendations - Specific companies recommended for investment include Tencent, Alibaba, Kuaishou, Trip.com, and NetEase, each with unique strengths and growth prospects in the AI and digital landscape [37][38].

Group 1: Market Overview - The three major US stock indices closed lower on Monday, with the Dow Jones down 0.45%, the Nasdaq down 0.14%, and the S&P 500 down 0.35% [1][7] - Large tech stocks showed mixed performance, with Broadcom rising over 2%, while Tesla and Netflix fell over 3% [1][7] Group 2: Commodity and Currency Dynamics - WTI crude oil fell below $59 per barrel, down 1.84% [3][9] - Gold futures briefly surpassed $4220 per ounce before retreating, closing down 0.79% [4][9] - Spot gold fell below $4180 per ounce, down 0.39% [5][9] - US natural gas futures dropped over 9% due to narrowing temperature drop forecasts and high production levels, currently at $3.849 per million British thermal units [5][9] - A 7.5 magnitude earthquake near eastern Honshu, Japan, caused short-term fluctuations in the USD/JPY exchange rate, which rose by 0.5% to 155.81 yen [5][9] Group 3: International Market Developments - Paramount launched a hostile takeover bid for Warner Bros. Discovery, offering $30 per share in cash, an 8% premium over Netflix's previous $720 billion acquisition offer of $27.75 per share, potentially providing shareholders with an additional $18 billion in cash benefits [10] - Warner Bros. owns several major networks including CNN, TBS, HGTV, and the HBO Max streaming platform, with Paramount claiming the proposal is more likely to pass regulatory scrutiny [10] - Former President Trump plans to sign an executive order this week to simplify AI industry regulatory approval processes, aiming to prevent individual states from creating conflicting regulations that could undermine the US's competitive edge in AI [10]

Group 1 - Trump announced that Nvidia is allowed to export H200 AI chips to "approved customers" in China, with the U.S. requiring a 25% revenue share from sales, applicable to companies like AMD as well [2] - The White House economic advisor Hassett stated that Trump will announce numerous positive economic messages and advocated for continued interest rate cuts by the Federal Reserve, emphasizing that the extent of cuts should depend on data [2] - Trump plans to introduce a "One Rule" executive order to streamline regulations for AI businesses, asserting that companies should not need separate approvals from all 50 states for operations [2] Group 2 - The Dow Jones fell by 0.45%, the Nasdaq decreased by 0.14%, and the S&P 500 dropped by 0.35%, with most large tech stocks declining [3][4] - Notable declines included Tesla down over 3%, Google down over 2%, and Amazon down over 1%, while Nvidia and Microsoft saw gains of over 1% [3][4] - The Nasdaq Golden Dragon China Index rose by 0.08%, with Baidu up over 3% and Xpeng up over 2%, while Netease fell over 2% [3] Group 3 - WTI crude oil futures fell by $1.20, nearly 2%, closing at $58.88 per barrel, while Brent crude oil futures dropped by $1.26, or 1.98%, to $62.49 per barrel [5][7] - Spot gold decreased by 0.13% to $4190.48 per ounce, and spot silver fell by 0.22% to $58.13 per ounce [5][7] Group 4 - OpenAI reported a 143% increase in global paid enterprise users, with over 100,000 companies using its AI products, and employees saving 40 to 60 minutes daily using AI [11] - The technology sector saw an 11-fold increase in AI usage, with rapid growth in international markets like Germany and Japan [11] Group 5 - Paramount announced a hostile takeover bid for Warner Bros. at $30 per share, totaling $108.4 billion, following Netflix's recent agreement to acquire part of Warner's core business [12] - Trump expressed his intention to be involved in the Netflix acquisition decision, citing concerns over market share [12] Group 6 - Apple’s hardware technology senior vice president denied rumors of leaving the company, while the iPhone 17 Pro series saw a price drop, with the Pro model reduced from 8999 yuan to 8699 yuan [13]

Group 1 - Hema acknowledged issues with strawberry cakes sold, affecting approximately 60 units across 7 stores due to ingredient handling errors [2] - Wanda Group has a new enforcement order for over 1.7 billion yuan, with over 6.9 billion yuan in total enforcement amounts against the company [2] - The State Taxation Administration prohibits platform companies from shifting tax obligations to gig workers, ensuring they are not overcharged [3][9] Group 2 - PepsiCo plans to reduce its product variety in the U.S. market by nearly 20% by early next year, aiming to cut operational costs and enhance efficiency [5] - The price of three-valent flu vaccines has dropped to 5.5 yuan, attributed to intense competition and oversupply in the vaccine market [8] - Paramount has proposed a cash acquisition offer of $30 per share for Warner Bros. Discovery, valuing the company at $108.4 billion [7] Group 3 - Faraday Future's board approved a five-year plan to produce 400,000 to 500,000 vehicles, with the first batch of FX Super One vehicles set to roll off the production line [13] - The International Monetary Fund (IMF) has officially launched its Shanghai Regional Center to enhance cooperation with the Asia-Pacific region [12] - The U.S. government announced a $12 billion aid package for farmers affected by tariff policies, addressing the negative impact on agricultural markets [14]