Core Insights - The overseas micro-drama market generated a total revenue of $1.525 billion from January to August 2025, marking a year-on-year increase of 194.9% [1] - Micro-dramas have become a significant medium for Chinese cultural export, supported by a mature industrial production system and a rich repository of web literature IP resources [1] Industry Overview - The white paper outlines the development trends of China's micro-drama industry, focusing on aspects such as industry overview, content creation, business models, and technological innovation [1] - The average daily usage time for micro-drama applications reached 120.5 minutes per user from January to August 2025, suggesting that micro-drama usage may have surpassed that of long video applications [1] Technological Innovation - Chinese animated micro-films and AI live-action dramas are rapidly growing, with significant breakthroughs expected in AI live-action dramas by the second half of 2024 [2] - The production cost for regular AI live-action dramas is approximately 1,000 RMB per minute, while premium AI live-action dramas can cost between 20,000 to 50,000 RMB per minute due to higher computational and labor inputs [2]

AI Applications - The October AI application rankings show ChatGPT, Doubao, Quark, Baidu Cloud, and Gemini as the top five globally [1][2] - Doubao surpasses Quark to become the leading domestic application with a monthly MAU of 159 million, reflecting a 6.28% month-over-month growth [1][2] - Other notable monthly active users include Tencent Yuanbao at 73 million, Deepseek at 72 million, and ByteDance's Jimeng AI at 4.511 million, with a 5.16% month-over-month increase [1][2] - Significant events in AI include OpenAI's $38 billion computing partnership with Amazon, the release of the Kimi K2Thinking model, iFlytek's launch of the Xunfei Spark X1.5 and related AI products, and OpenAI's introduction of GPT-5-Codex-Mini [2] Gaming - The top three games on the iOS weekly sales chart as of November 6 are "Honkai: Star Rail," "Honor of Kings," and "Delta Force" [3] - The game "Supernatural Action Group" launched a new character and ranked between 15-25 during the week, while G-bits' "Staff Sword Legend" ranked around 40 [3] - A partnership between Shengqu Games and Mango TV aims to create a new ecosystem for mini-games, and Bilibili's single-player game "Escape from Duckkov" has sold over 3 million copies [3] Film and Television - The total box office for the week of November 1-7 reached 207 million yuan, with "Improv Murder" as the top film, earning 42.11 million yuan and accounting for 20.3% of the weekly box office [3] - Upcoming films include "Demon Slayer: Infinity Castle Chapter One" and "Now You See Me 3," with high anticipation levels indicated by 579,000 and 284,000 people wanting to watch, respectively [3] - "Zootopia 2" is scheduled for release on November 26, and "Avatar: Fire and Ash" on December 19, highlighting a rich supply of imported films [3]

Investment Rating - The report maintains a "Buy" rating for the media industry, indicating a positive outlook for the sector [6][34]. Core Insights - The media industry saw a slight increase of 0.16% in the week from November 1 to November 7, 2025, ranking 18th among various industries. Notable performers included China Film, Jishi Media, and Chinese Media, with Baidu Group-SW and NetEase-S showing strong weekly gains in the Hang Seng Technology Index [10][16]. - The report emphasizes the potential in AI applications and cultural exports, particularly focusing on sub-sectors such as gaming, IP, short dramas, and publishing [4][34]. Summary by Sections Market Performance - The media industry experienced a weekly increase of 0.16%, while the Shanghai Composite Index rose by 1.08% and the Shenzhen Component Index by 0.19%. The gaming sector saw a decline of 0.29%, while the film and television sector increased by 2.49% [10][12]. Key Industry Data - **AI Applications**: In October, the top five AI applications globally were ChatGPT, Doubao, Quark, Baidu Cloud, and Gemini. Doubao led domestic applications with a monthly active user (MAU) count of 159.41 million, reflecting a 6.28% month-over-month growth [20][21]. - **Gaming**: The iOS gaming sales chart for November 6, 2025, was topped by "Honkai: Star Rail," followed by "Honor of Kings" and "Delta Force." The report also noted the upcoming release of seven new games between November 13 and November 15 [23][25]. - **Film**: The total box office for the week was 207 million yuan, with "Improv Murder" leading at 42.11 million yuan, accounting for 20.3% of the weekly total. Upcoming films include "Demon Slayer: Infinity Castle Chapter" and "Now You See Me 3" [27][28][31]. Investment Recommendations - The report suggests focusing on themes such as AI applications and cultural exports, with specific attention to companies like Giant Network, Kaiying Network, and Perfect World among others [4][34].

Core Insights - The article highlights the rapid development of the micro-short drama industry in Linping District, Hangzhou, which has become a leading area in Zhejiang's micro-short drama sector, attracting over 200 upstream and downstream enterprises and serving more than 700 production teams [1][2]. Group 1: Industry Growth and Strategy - Linping has set ambitious goals, including becoming the "most understanding local government for micro-short dramas" in 2023 and aiming for the title of "National Micro-Short Drama City" in the following years [1]. - The user base for micro-short dramas in China is projected to reach 626 million by June 2025, accounting for 55.8% of internet users, indicating a significant market opportunity [1]. Group 2: Brand Development and Ecosystem - The Linping Micro-Short Drama Conference has been established as a core platform for industry exchange, attracting major online platforms and leading enterprises to discuss key topics such as "quality creation" and "business models" [2]. - Linping's strategy includes attracting high-quality enterprises across the entire value chain from content creation to distribution, leveraging local leading companies to create a cluster advantage [2]. Group 3: Infrastructure and Support - Linping has developed the "Lin Ying Factory," a comprehensive industrial complex that includes the largest professional variety studio in Zhejiang and over 40 dedicated shooting scenes, providing one-stop services for production teams [4]. - A 100 million yuan "Da Mei Lin Zhuo" industrial fund has been established to support the audiovisual industry, along with policies to provide lifecycle support for enterprises [4]. Group 4: Professional Services and Talent Development - The establishment of various centers for film and television collaboration, content review, and artistic guidance has enhanced the professional service system, supporting over 200 talent training sessions annually [5]. - Initiatives such as training camps for young screenwriters and workshops for content creation have been implemented to nurture new talent in the industry [5]. Group 5: Cultural Export and Global Reach - Linping aims to expand the reach of Chinese traditional culture through micro-short dramas, with successful projects like "Diary of Miss Zhao" gaining international recognition [7]. - The launch of the overseas short drama platform FlickReels by Long Eagle Technology has quickly gained popularity in multiple countries, indicating a successful strategy for cultural export [7]. Group 6: Industry Challenges and Future Plans - Linping plans to address industry challenges such as copyright infringement by establishing a national micro-short drama copyright protection and trading center [8]. - The third Hangzhou Micro-Short Drama Conference is set to take place from November 10 to 11, 2023, where various industry plans and honors will be announced [8].

Core Insights - The collaboration between SPDB and Shangjiukai Company showcases the integration of finance and intangible cultural heritage, specifically the Song brocade, at the 8th China International Import Expo [2][6] - Song brocade is recognized as one of China's three major brocades and was listed as a national intangible cultural heritage in 2006 and as a UNESCO intangible cultural heritage in 2009 [3] - Shangjiukai Company, established in December 2012, is a pioneer in the inheritance and innovation of Song brocade products, expanding its application beyond traditional clothing to include bags, home textiles, and crafts [4] Company Overview - Shangjiukai Company is located in Suzhou, known as the "Silk Capital," and has developed two brands, "Roma Family" and "Shangjiukai," while collaborating with institutions and designers for continuous innovation [5] - The partnership with SPDB began in 2014, providing financial support during a critical transformation period for the textile industry in Wujiang, leading to a doubling of credit support for Shangjiukai [4][7] Financial Support and Innovation - SPDB emphasizes cross-border finance as a key area for digital transformation, launching the "Puying Cross-Border" brand to assist cultural enterprises in going global [6] - The Song brocade products have been featured in significant international events, including the APEC meeting in 2014 and the Belt and Road Forum in 2017, enhancing China's cultural confidence on the global stage [6] - SPDB has tailored financial solutions to meet the needs of Shangjiukai, significantly reducing financing costs and alleviating cash flow pressures, thus supporting the company's focus on heritage skills [7] Future Outlook - SPDB aims to continue leveraging financial innovation to connect global resources and promote China's intangible cultural heritage and innovation to the world [8]

Group 1: Industry Trends - Trend 1: A new content cycle is anticipated under a policy-friendly environment, with the gaming industry demonstrating the potential for content release during such periods. The gradual normalization of game license issuance and the stabilization of the drama industry supply side are expected to enhance content richness and contribute to the resilience of gaming companies. 2026 is projected to be a critical observation window for content innovation and mechanism optimization [3][5][6]. - Trend 2: The development of AI is entering a new stage, with significant breakthroughs in various sectors by 2025. AI applications in film and television, gaming, advertising, and social communities are expected to enhance efficiency and drive revenue growth. By 2026, AI-native penetration and highly automated content generation are anticipated to attract more users and optimize monetization [3][8]. - Trend 3: The trend of "cultural export" is continuing in the gaming, online literature, and short drama sectors. The focus has shifted from indiscriminate content output to high-quality content with cultural core, tailored to local markets. This shift is expected to enhance the global presence of Chinese content and create a positive feedback loop between domestic and international markets [3][10]. - Trend 4: Upgraded demand is catalyzing a revaluation of IP value, with content companies increasingly focusing on IP strategies. The maturation of the domestic IP industry chain is expected to lead to a systematic revaluation of IP value, with industrialization of content production and diversification of revenue structures becoming key trends [3][12]. Group 2: Investment Recommendations - The company remains optimistic about leading firms consolidating their industry positions and enhancing their capabilities through mergers and acquisitions. The digital media, online gaming, and social community sectors are viewed as having superior business models, benefiting from the new content cycle, AI efficiency improvements, and potential overseas advantages [4]. - In the advertising sector, attention is directed towards opportunities for acquiring quality media shares and enhancing operational efficiency through AI. The film and cinema industry is advised to focus on the marginal changes brought by broadcasting regulations and explore new models and integration opportunities [4]. - The publishing industry faces challenges from declining enrollment numbers, with a focus on high-dividend value companies in key provinces. The cable broadcasting sector is advised to monitor the operational capabilities of leading companies in value-added services and potential development opportunities under supportive policies [4].

Core Insights - The 2025 Game IP Ecosystem Conference, themed "Intelligent Creation for the Future, Linking the World," commenced in Suzhou, marking its third consecutive year in the industrial park since the inaugural event in 2023 [1] - The conference highlights the rapid growth of the gaming industry in the park, evolving from aggregation to clustering, and expanding from domestic to international markets, as well as from single products to a comprehensive IP ecosystem [1] Group 1: Industry Development - The gaming IP ecosystem conference reflects the rapid development of China's IP licensing business and the booming "grain economy" over the past three years [2] - The Suzhou Industrial Park has cultivated a "2+4+1" modern industrial system, providing fertile ground for digital content industries, with over 12,000 cultural industry units and 236 large-scale cultural enterprises, achieving a revenue of 87.311 billion yuan, the highest in the city [2] - The park aims to have 105 large-scale gaming and animation-related enterprises within three years, targeting a total revenue of 27 billion yuan, accounting for 45% of the core cultural sector's revenue [2] Group 2: Policy Support and Services - Systematic policy support and precise services have been pivotal for the park's growth, with recent policies emphasizing the gaming industry as a key support direction [3] - The establishment of a one-stop service center for game enterprises in the Jiangsu Free Trade Zone and the first national intellectual property protection center are notable innovations that support the industry [3] - The park has over 1,000 registered private equity funds with a total capital exceeding 410 billion yuan, alongside creative industry spaces that provide robust support for the gaming sector [3] Group 3: Cultural Integration and Global Expansion - The park promotes the integration of gaming with cultural events, creating a cultural consumption loop with significant exposure, such as over 250 million views for events like the Dragon Boat Festival and EDC Daisy Electronic Music Festival [3] - Friendship Time Technology Co., as a leading gaming company in Jiangsu, has evolved from a game developer to a comprehensive group, emphasizing cultural value through its products, which incorporate elements of Jiangnan culture [4][5] - The company has strategic plans for international markets, including Japan, South Korea, Hong Kong, Macau, Taiwan, and Europe, utilizing IP collaborations to enhance global understanding and appreciation of Jiangnan culture [5] Group 4: Future Vision - The establishment of the "International Cooperation Service Center for Game and Animation IP" marks a significant advancement in the park's service capabilities, aiming to enhance global collaboration and market expansion for the gaming industry [6] - The park's vision for the future includes becoming a new force in gaming and animation that integrates into the Yangtze River Delta, radiates nationwide, and connects globally, guided by the goal of building a "culturally strong province" in Jiangsu [7]

Core Insights - The gaming sector experienced a decline in early trading on November 7, with the gaming ETF (159869) dropping around 0.5% and most constituent stocks showing weakness [1] - As of November 6, the gaming ETF (159869) had a product scale of 11.306 billion yuan, providing investors with a convenient way to invest in leading A-share gaming companies [1] - The unveiling of the new game "Black Myth: Wukong" at the 2025 Wuzhen Summit highlights the strong development momentum of domestic games as one of the "new three samples" of culture [1] Industry Overview - The gaming industry, along with online literature and web dramas, forms a new vehicle for Chinese culture to go global, driven by a dual force of "culture as the soul" and "technology as the wings" [1] - The unique cultural appeal of works like "Black Myth" is rooted in Eastern aesthetics and traditional narratives, while the application of cutting-edge technologies such as AI and NVIDIA DLSS significantly enhances game quality and player experience globally [1] - With accelerated international expansion, deepening technological innovation, and continuous improvement in content quality, the gaming industry is expected to maintain a strong growth trajectory [1] Growth Drivers - The long-term positive outlook for the gaming sector is supported by AI technological innovation, content ecosystem upgrades, and the evolution of commercialization models [1] - The gaming ETF (159869) closely tracks the CSI Animation and Gaming Index, focusing on core assets in the A-share animation and gaming industry, making it a quality tool for investing in the gaming sector's development [1]

Core Insights - The feedback from over 4,000 Gen Z users across Europe, the Middle East, and North America highlights the strong potential of Chinese gaming as a cultural export and recognizes the efforts of the company in global markets [2] - The company has been a pioneer in overseas market exploration since 2012, operating in over 200 countries and regions, and has released nearly 250 games across various genres [2] - The company's overseas revenue has seen exponential growth, increasing from 356 million yuan in 2015 to 5.722 billion yuan in 2024, representing a nearly 15-fold increase and accounting for 33% of total revenue [2] - In the first half of this year, the company's overseas revenue reached 2.724 billion yuan [2] Product Performance - The game "Puzzles & Survival" has achieved significant global success with cumulative revenue exceeding 10 billion yuan, while "Puzzles & Chaos" has surpassed 15 million global players and ranked among the top 20 strategy games in over 80 regions [2] - The culturally themed game "Call Me Big Shopkeeper" has broken barriers for traditional Chinese games in the Western market, becoming a benchmark for cultural export [2] Global Strategy - The company's global strategy focuses on "integrated research and operations, IP ecosystem, and technology empowerment," breaking down barriers between development and publishing to incorporate localization from the project's inception [3] - A refined operational system has been established to address cultural differences in various markets, allowing for tailored customization of game elements [3] - The company employs a dual-track approach to IP development, creating original IPs while adapting popular domestic IPs for global audiences, thereby facilitating cultural exchange [3] Technological Empowerment - The company has developed over 40 AI capabilities and more than 400 intelligent agents across its business chain, with AI-generated video content accounting for over 70% of advertising efforts [4] - AI translation supports 18 languages with a 95% accuracy rate, covering 85% of overseas games, enabling rapid response to Gen Z user demands [4] - The company aims to deepen its "premium, diversified, and global" strategy by leveraging AI and big data to enhance its research and operations system while promoting traditional Chinese culture through gaming [4]

Core Insights - The 8th China International Import Expo opened in Shanghai on November 5, showcasing Jiangsu's cultural heritage and innovative expressions through its traditional brands [1] - Jiangsu has a significant number of traditional brands, with 113 national and 352 provincial time-honored brands, highlighting its rich cultural legacy [1] Group 1: Traditional Brands and Innovations - Jiangsu's cultural exchange exhibition featured unique products like the "Su Super Zisha Pot Series," which combines traditional craftsmanship with modern themes, representing the cultural stories of 13 cities in Jiangsu [2] - The Nanjing Yunjin Research Institute presented exquisite works that blend ancient weaving techniques with modern materials, showcasing the evolution of traditional crafts [2][3] - The Nantong Benlan Craft Co., known for its blue print fabric, has modernized its offerings to appeal to younger consumers, significantly increasing brand recognition and sales since participating in the expo [3] Group 2: High-End and Artistic Products - The high-end silk scarf brand "Zhangyu Deva-Vani" showcased silk paintings and artistic scarves, emphasizing the fusion of traditional silk culture with contemporary design [4] - Jiangsu's ceramics, particularly from Gaochun Ceramics Co., presented a banquet set that merges traditional patterns with modern craftsmanship, aimed at enhancing diplomatic relations [6] Group 3: Cultural Exchange and Market Expansion - The expo serves as a platform for cultural exchange, with companies like Suzhou Embroidery Silk Co. receiving international orders and exploring collaborations to bring traditional crafts to global markets [6][7] - The event is viewed as an opportunity for companies to optimize cross-border supply chains and expand their international presence, with many brands actively seeking partnerships and collaborations [6][7]