Summary of Mobile Gaming Industry Conference Call Industry Overview - The global mobile gaming market is projected to see a year-over-year (YoY) decline of 3% in January 2026 according to Sensor Tower data [1] - The United States remains the largest market, accounting for 31% of total revenue, followed by China at 19% and Japan at 13% [1] - In January 2026, the U.S. mobile gaming market experienced a YoY decline of 2%, while China and Japan saw more significant declines of 14% and 8%, respectively [1] China Market Insights - The domestic gaming market in China is expected to achieve a YoY revenue growth of 8% in 2025, with mobile gaming being the largest segment, contributing 73% of total revenue [1] - The client-based gaming segment is also showing strong growth, with a projected YoY increase of 15%, while mobile gaming is expected to grow at 8% YoY [1] - Chinese game exports are anticipated to continue their high growth trajectory, with a YoY revenue increase of 10% [1] Regulatory Environment - In January, the National Press and Publication Administration issued 177 new domestic online game licenses, representing a YoY increase of 44%, indicating a robust supply of new games in the future [2] Market Performance - In January, most gaming stocks saw an increase, with notable gains in Hong Kong stocks such as Bilibili and Xindong, as well as A-share companies like Huatuo, Perfect World, Kaiying, and Sanqi [2] Data Highlights - Bilibili's new game "Dudu Face Prank" launched in Q4 2025 has shown significant revenue growth, with a QoQ increase of 21% in December and 46% in January 2026, contributing to an overall QoQ revenue increase of 5% and 14% [2] - Xindong's game "Xindong Town" launched in January 2026 has seen an extraordinary QoQ revenue increase of 516%, significantly boosting overall revenue by 99% [2] - Huatuo's overall revenue continues to grow YoY, with its game "Delicious Journey" showing a QoQ revenue increase of 30% and 33% in December and January, respectively [2] - Giant's core product "Supernatural Action Team" recorded a QoQ revenue increase of 41% in January 2026, contributing to an overall revenue growth of 28% QoQ and 199% YoY [2] Future Outlook - Attention is recommended on the testing phases of new games from NetEase ("Sea of Forgetting") and Perfect World ("Different Ring"), as well as monitoring revenue performance during the Spring Festival period [3]

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: Aluminium and Alumina - **Current Price Trends**: LME aluminium prices have rallied to over $3,000 per tonne, driven by tightening fundamentals, supply disruptions, and increased net speculative positioning [2][3] Aluminium Market Insights - **Demand Growth**: Primary aluminium demand is expected to grow at approximately 2.5% in 2025, slightly below the trend of 3-4%, leading to a modest surplus in the market [3] - **Supply Constraints**: Supply growth is limited, particularly in China where smelter run rates are at the 45 million tonnes capacity cap. Future growth from Indonesia is expected to be measured, with restarts in Europe and the US offset by closures [3][9] - **Price Outlook**: The LME price is above the cost curve, indicating an improving supply-demand outlook. A balanced global market is anticipated in 2026, with medium-term price risks skewed to the upside as demand improves [3][21] Alumina Market Insights - **Price Trends**: Alumina prices are currently around $300 per tonne, reflecting a bearish outlook due to significant overcapacity in China and new capacity additions in Indonesia and India [4][39] - **Capacity Additions**: China is expected to add over 10 million tonnes of new alumina capacity in 2026, contributing to the existing overcapacity [4][47] - **Fundamental Challenges**: Despite low prices, the outlook for alumina remains challenging due to limited growth in global aluminium output and low capacity utilization in China [39][46] Regional Supply Dynamics - **China**: Expected to produce 44.5 million tonnes of primary aluminium in 2025, with negligible growth beyond that due to the 45 million tonnes capacity cap [27][28] - **Indonesia**: Anticipated to be the largest contributor to global supply growth, with projects expected to add approximately 3 million tonnes of new supply over the next 2-3 years [13][14] - **Europe and US**: Several smelters are in the process of restarting, but material production increases are unlikely due to high costs and market conditions [22][23] Investment Insights - **Equity Performance**: AA has outperformed NHY, driven by potential catalysts such as Canadian tariff exemptions and improved cash returns. Valuations for aluminium are generally undemanding, with NHY seen as more valuable compared to AA [5] - **Investment Recommendations**: Continued buying interest in companies like Hongqiao and Press Metal is noted, with a cautious approach towards AA due to stretched valuations [5] Additional Considerations - **Power Constraints**: The aluminium smelting process is highly power-intensive, and the availability of power in Indonesia may constrain growth. The planned increase in aluminium smelting capacity will require significant growth in national power output [15][16] - **Bauxite Supply**: China's dependence on imported bauxite from Guinea poses risks, but increased imports and stabilization of domestic production are expected to support alumina output [46][47] This summary encapsulates the key insights and projections regarding the aluminium and alumina markets, highlighting both opportunities and challenges within the industry.