Core Insights - The "2025 China·Chengmai International Economic and Trade Fair" has launched the Hainan Free Trade Port Game Industry Ecological Innovation Development Conference, focusing on three core support measures for the game industry [1][2] Policy Advantages - The "Three Taxes" policy (zero tariffs, "one negative and three positives" list, and a "dual 15%" low tax rate) significantly reduces operational costs for companies [1] - Innovative financial tools in the free trade port shorten approval times and expand service scope, facilitating self-research funding recovery and overseas investment [1] - The implementation of the shortest negative list for foreign investment and the first cross-border service trade negative list effectively attracts foreign investment and lowers import costs [1] Supporting Infrastructure - A talent training base for art development has been established in collaboration with local universities to address the "talent shortage" [1] - A motion capture and high-precision model scanning base equipped with top international equipment has been set up, featuring two high-standard optical motion capture studios [1] - An 880 square meter game audio production base offers a one-stop solution for sound effects, music, dubbing, and voice acting [1] Comprehensive Ecological Services - Five core ecological service systems have been established to empower the entire chain, including game publishing services, art and animation outsourcing, engine technology training, rights protection services, and game export support [2] - The conference also hosted the award ceremony for the 2025 eSports Carnival, attracting 120 teams nationwide, setting a record for similar events [2] - Several companies signed agreements to settle in the Hainan Ecological Software Park, enhancing the industry cluster [2] Commitment to Industry Development - The Hainan Provincial Publicity Department emphasized the importance of solidifying the foundation of the Chengmai game industry through policy implementation, ecological scene construction, service list publication, and enterprise agreements [2] - The Chengmai County Committee highlighted the need for practical measures to address the pain points of enterprises, providing comprehensive support in key areas such as license application and intellectual property protection [3]

Group 1 - The National Press and Publication Administration announced the approval of 166 domestic games and 7 imported games in August 2025, marking a new monthly high for domestic game approvals this year [1] - Among the 166 domestic games, 107 are mobile games, 39 are mobile casual puzzle games, 17 are mobile and client games, 1 is a console game (PS5), and 2 are client games [1] - Major companies like NetEase and Bilibili have successfully obtained approvals for their games, indicating strong performance among leading firms in the industry [1] Group 2 - Several A-share game companies reported positive impacts from the issuance of game approvals, with Baotong Technology highlighting the role of approvals in the recovery of the domestic game industry [2] - Tom Cat mentioned that the game industry is experiencing a dual drive of policy support and technological innovation, with 757 domestic and 55 imported game approvals issued in the first half of 2025, reflecting an 18% year-on-year increase [2] - The domestic game market achieved a sales revenue of 168 billion yuan in the first half of 2025, a 14.08% year-on-year growth, with the user base reaching nearly 679 million, marking a historical high [2]

Market Overview - On August 20, A-shares opened lower across the board, with the Shanghai Composite Index down 0.28%, the Shenzhen Component down 0.61%, and the ChiNext Index down 1.14%. By the time of reporting, the Shanghai Composite Index had turned positive, rising by 0.07%. The total trading volume in the Shanghai, Shenzhen, and North markets was 704 billion yuan, a decrease of 63.5 billion yuan compared to the same time the previous day [1]. Gaming Sector Performance - The gaming sector showed strength, with stocks such as Gigabit (603444) hitting the daily limit, and other companies like Xunyou Technology, Kaiying Network, Perfect World, and Giant Network also experiencing gains. This surge was influenced by the announcement of the latest game "Black Myth: Wukong" by Game Science during the opening night of the International Games Expo in Cologne, Germany [2][3]. Key Stock Movements - Notable stock performances included: - Gigabit (603444) at 421.19 yuan, up 10.00% [4] - Xunyou Technology (300467) at 25.58 yuan, up 9.22% [4] - ST Zhongqingbao (300052) at 11.54 yuan, up 4.06% [4] - Perfect World (002624) at 15.82 yuan, up 2.86% [4] - Kaiying Network (002517) at 20.65 yuan, up 2.63% [4] Game Science Developments - Game Science founder Feng Ji expressed on Weibo that after the release of "Black Myth: Wukong," the team is focused on developing a new title in the "Black Myth" series, featuring new heroes, gameplay, visuals, technology, and stories. He indicated that the legend of Wukong will return in a more complete and solid form in the future [5]. - The flagship 3A game "Black Myth: Wukong" was released in August 2024, generating significant buzz and discussions both domestically and internationally, with sales surpassing 10 million copies within four days and reaching 18 million copies globally within two weeks [5].

Industry Overview - Chinese gaming stocks, including Bilibili and NetEase, saw a pre-market rise, with Bilibili increasing over 3% and NetEase over 2% [1] - The China Audio-Video and Digital Publishing Association's report indicates that the domestic gaming market's actual sales revenue for the first half of 2025 is projected to reach 168 billion yuan, marking a year-on-year growth of 14.08%, setting a historical high [1] - The number of domestic gaming users is expected to reach 679 million, also a record high [1] Company Performance Bilibili (BILI) - Bilibili's closing price on August 4 was 22.435 USD, with a pre-market price of 23.210 USD on August 5, reflecting a 3.45% increase [1] - The stock's trading volume was 2.2305 million shares, with a market capitalization of 9.261 billion USD [1] - The stock has a 52-week high of 31.770 USD and a low of 12.720 USD [1] NetEase (NTES) - NetEase's closing price on August 4 was 130.280 USD, with a pre-market price of 133.140 USD on August 5, showing a 2.20% increase [1] - The trading volume was 536,700 shares, with a market capitalization of 82.493 billion USD [1] - The stock has a 52-week high of 141.450 USD and a low of 74.171 USD [1]

Industry Overview - In the first half of 2025, China's gaming market achieved actual sales revenue of 168 billion yuan, marking a year-on-year growth of 14.08%, setting a historical record [1] - The number of domestic gaming users reached 679 million, also a historical high [1] - The gaming market's actual sales revenue for the first quarter of 2025 was approximately 857.04 billion yuan, reflecting a significant year-on-year increase of 17.99% [1] - The second quarter's revenue is estimated to be around 823 billion yuan, maintaining above 800 billion yuan for the season [1] Market Performance - In 2024, the actual sales revenue of China's gaming market was 325.78 billion yuan, with a year-on-year growth of 7.53% [1] - The user base for gaming in 2024 was 674 million, both revenue and user numbers being historical highs [1] - From mid-2020 to mid-2024, the semi-annual actual sales revenue fluctuated between 140 billion to 150 billion yuan, indicating a breakthrough in the industry with the current figures approaching 170 billion yuan [1] International Market - In the first half of 2025, the actual sales revenue of Chinese self-developed games in overseas markets reached 9.5 billion USD (approximately 680 billion yuan), with a year-on-year growth of 11% [2] - The primary markets for Chinese games abroad are the United States, Japan, and South Korea, contributing 31.96%, 16.2%, and 7.47% of overseas revenue, respectively [2] Game Categories - The mobile gaming sector showed robust growth, with actual sales revenue of 125.31 billion yuan in the first half of 2025, reflecting a year-on-year increase of 16.55% [2] - The success is attributed to strong performances from MOBA, shooting, and strategy games, along with revenue growth from new shooting and action RPG titles [2] - Conversely, the revenue from the two-dimensional mobile game market declined significantly to 14.58 billion yuan, a year-on-year decrease of 8% due to factors like slowing growth of top games and reduced consumer spending [2] - Mini-games performed exceptionally well, with actual sales revenue of 23.28 billion yuan, marking a year-on-year growth of 40.2% [2] Company Performance - ST Huatuo expects a consolidated revenue of approximately 17 billion yuan for the first half of 2025, a year-on-year increase of about 83.27%, with a projected net profit of 2.4 billion to 3 billion yuan, reflecting a growth of 107.2% to 159% [3] - Youzu Network anticipates a net profit of 40 million to 60 million yuan, a year-on-year increase of 768.75% to 1203.13%, driven by stable operations of games like "Youth Three Kingdoms" [3] - Perfect World expects to turn a profit with a projected net profit of 480 million to 520 million yuan, compared to a loss of 177 million yuan in the same period last year, supported by the upcoming launch of its self-developed game "Zhu Xian World" [3]

Industry Overview - In the first half of 2025, China's gaming market achieved actual sales revenue of 168 billion yuan, marking a year-on-year growth of 14.08%, reaching a historical high [1] - The number of domestic gaming users reached 679 million, also a record high [1] - The gaming market's actual sales revenue for the first quarter of 2025 was approximately 857.04 billion yuan, with a significant year-on-year increase of 17.99% [1] - The second quarter's revenue is estimated to be around 823 billion yuan, maintaining above 800 billion yuan for the season [1] - In 2024, the gaming market's actual sales revenue was 325.78 billion yuan, with a year-on-year growth of 7.53% [1] Overseas Market Performance - In the first half of 2025, the actual sales revenue of Chinese self-developed games in overseas markets reached 9.5 billion USD (approximately 680 billion yuan), reflecting a year-on-year growth of 11% [2] - The primary overseas markets for Chinese games are the United States, Japan, and South Korea, contributing 31.96%, 16.2%, and 7.47% of the overseas revenue, respectively [2] Mobile Gaming Sector - The actual sales revenue of China's mobile gaming market in the first half of 2025 was 125.31 billion yuan, with a year-on-year increase of 16.55% [2] - The growth is attributed to the strong performance of MOBA, shooting, and strategy games, as well as revenue growth from new shooting and action RPG titles [2] - However, the revenue from the two-dimensional mobile game market declined significantly, with a year-on-year decrease of 8%, impacted by slowing growth of leading titles and reduced player spending [2] Mini Games and Other Segments - The mini-game market in China showed remarkable performance, with actual sales revenue of 23.28 billion yuan in the first half of 2025, achieving a year-on-year growth of 40.2% [2] Company Performance - ST Huatuo (002602) expects a consolidated revenue of approximately 17 billion yuan for the first half of 2025, a year-on-year increase of about 83.27%, with a projected net profit of 2.4 to 3 billion yuan, reflecting a growth of 107.2% to 159% [3] - Youzu Network (002174) anticipates a net profit of 40 to 60 million yuan, with a year-on-year increase of 768.75% to 1203.13%, driven by stable revenue from games like "Youth Three Kingdoms" [3] - Perfect World (002624) expects to turn a profit in the first half of 2025, projecting a net profit of 480 to 520 million yuan, compared to a loss of 177 million yuan in the same period last year [3]

Core Insights - The report indicates that the domestic game market in China achieved actual sales revenue of 168 billion yuan in the first half of 2025, marking a year-on-year growth of 14.08%, setting a new record [1] - The user base for games reached nearly 679 million, reflecting a year-on-year increase of 0.72%, also a historical high [1] Market Performance - The growth in market revenue and user base is attributed to several factors: the successful launch of multiple new games, the steady performance of long-standing games, and the strong growth of esports and mini-program games [1] - Self-developed games generated actual sales revenue of 140.45 billion yuan in the domestic market, with a year-on-year increase of 19.29%, driven by popular long-standing products and new releases [3] - The overseas market for self-developed games saw actual sales revenue of 9.50 billion USD, reflecting a year-on-year growth of 11.07%, primarily from long-term product revenues and new releases expected in 2024 [3] Segment Insights - The console game market in China recorded actual sales revenue of 1.03 billion yuan, with a significant year-on-year growth of 29.78%, largely due to the ongoing popularity of the 2024 phenomenon title "Black Myth: Wukong" and the strong sales of new imported console games [5] - The report anticipates continued growth in the Chinese game industry in the second half of 2025, supported by favorable policies, optimized industry ecology, deepened technological innovation, and ongoing global product distribution and corporate globalization efforts [5]

Core Insights - The Chinese gaming market achieved a record actual sales revenue of 168 billion yuan in the first half of 2023, marking a year-on-year growth of 14.08% [1] - The user base for games in China reached approximately 679 million, reflecting a year-on-year increase of 0.72%, also a historical high [1] - The growth in market revenue and user base is attributed to several factors, including the successful launch of new games, the steady performance of established games, and the strong growth of esports and mini-program games [1] Market Performance - The actual sales revenue of the Chinese console gaming market was 1.034 billion yuan, showing a year-on-year increase of 29.78% [2] - The esports gaming market generated actual sales revenue of 80.645 billion yuan, with a year-on-year growth of 16.64% [2] - The revenue from the two-dimensional mobile gaming market was 14.577 billion yuan, experiencing a year-on-year decline of 8% [2] - The domestic casual mobile gaming market achieved actual sales revenue of 16.439 billion yuan, reflecting a year-on-year growth of 2.55% [2] - The domestic mini-program gaming market saw actual sales revenue of 23.276 billion yuan, with a significant year-on-year increase of 40.2% [2] Self-Developed Games - The actual sales revenue from self-developed games in the domestic market reached 140.452 billion yuan, representing a year-on-year growth of 19.29% [1] - The overseas market for self-developed games generated actual sales revenue of 9.501 billion USD, with a year-on-year increase of 11.07% [1]

Group 1: Industry Overview - The domestic game market in China achieved actual sales revenue of 168 billion yuan in the first half of 2025, marking a year-on-year growth of 14.08%, setting a historical record [1] - The number of domestic game users reached 679 million, also a historical high [1] - In the first quarter of 2025, the actual sales revenue was approximately 857.04 billion yuan, with a significant year-on-year increase of 17.99%, while the second quarter revenue was around 823 billion yuan, maintaining above 800 billion yuan per quarter [1] - For the entire year of 2024, the actual sales revenue was 325.78 billion yuan, reflecting a year-on-year growth of 7.53% [1] Group 2: International Market Performance - In the first half of 2025, the actual sales revenue of Chinese self-developed games in overseas markets reached 9.5 billion USD (approximately 680 billion yuan), with a year-on-year growth rate of 11% [2] - The primary overseas markets for Chinese games are the United States, Japan, and South Korea, contributing 31.96%, 16.2%, and 7.47% of the overseas revenue, respectively [2] Group 3: Game Categories and Trends - The mobile game market in China generated actual sales revenue of 125.31 billion yuan in the first half of 2025, with a year-on-year growth of 16.55% [2] - The decline in revenue for the two-dimensional mobile game market was significant, with a revenue of 14.58 billion yuan, down 8% year-on-year, attributed to factors such as slowed growth of leading games and reduced consumer willingness [2] - Mini-games showed remarkable performance, with actual sales revenue of 23.28 billion yuan, achieving a year-on-year growth of 40.2% [2] Group 4: Company Performance - ST Huatuo expects a consolidated revenue of approximately 17 billion yuan for the first half of 2025, with a year-on-year growth of about 83.27% [3] - Youzu Network anticipates a net profit attributable to shareholders of 40 to 60 million yuan, reflecting a year-on-year increase of 768.75% to 1203.13% [3] - Perfect World is expected to turn losses into profits, forecasting a net profit of 480 to 520 million yuan for the first half of 2025, compared to a loss of 177 million yuan in the same period last year [3]

Core Insights - The Chinese gaming market achieved a record actual sales revenue of 168 billion yuan in the first half of 2023, marking a year-on-year growth of 14.08% [1] - The user base for games reached approximately 679 million, reflecting a 0.72% increase year-on-year, also a historical high [1] Market Performance - The mobile gaming sector generated actual sales revenue of 125.31 billion yuan, accounting for 74.59% of the total market, with a year-on-year growth of 16.55% [1] - The client game market saw actual sales revenue of 35.40 billion yuan, growing by 4.86% year-on-year [1] - The web game market experienced a decline, with actual sales revenue of 2.20 billion yuan, down by 5.87% year-on-year [1] Sub-Sector Highlights - The casual mobile gaming market generated actual sales revenue of 16.44 billion yuan, up by 2.55% year-on-year, with in-app purchases contributing 11.10 billion yuan [2] - The mini-program gaming market showed significant growth, with actual sales revenue of 23.28 billion yuan, a 40.2% increase year-on-year [2] - The console gaming market achieved actual sales revenue of 1.03 billion yuan, growing by 29.78% year-on-year [2] - The esports gaming market reached actual sales revenue of 80.65 billion yuan, reflecting a year-on-year growth of 16.64% [2] Self-Developed Games - The domestic market for self-developed games generated actual sales revenue of 140.45 billion yuan, up by 19.29% year-on-year, driven by popular long-standing products and new releases [2] - The overseas market for self-developed games achieved actual sales revenue of 9.50 billion USD, growing by 11.07% year-on-year [2] International Market Insights - In the overseas market for self-developed mobile games, the United States accounted for 31.96%, Japan for 16.20%, and South Korea for 7.47%, collectively representing 55.63% of the market [3] - Strategy games led the revenue share among the top 100 self-developed mobile games, accounting for 43.33%, with a significant increase compared to the previous year [3] Industry Trends - The gaming industry is characterized by supportive government policies, technological innovation, and a focus on user protection and talent development [3]