Core Insights - The gaming industry in China has shown significant growth in overseas revenue, with major companies reporting substantial increases in July [1][2][3] Group 1: Industry Performance - In July, 32 Chinese gaming companies entered the global mobile game publisher revenue ranking, collectively earning $1.95 billion, which accounts for 34% of the top 100 global mobile game publishers' revenue [2] - Tencent's games, including "Honor of Kings" and "PUBG MOBILE," saw a 20% increase in global revenue in July, maintaining Tencent's position as the top Chinese mobile game publisher [3] - Century Huatong's subsidiary, DianDian Interactive, reported a 10% increase in overall revenue, driven by significant growth in its games "Kingshot" and "Tasty Travels: Merge Game," which saw revenue increases of 34% and 52% respectively [3] Group 2: Company Highlights - Other notable A-share companies like 37 Interactive Entertainment and Giant Network also performed well, with Giant Network's game "Supernatural Action Group" becoming a hit, leading to a significant revenue increase [4] - NetEase and miHoYo ranked third and fourth in the revenue ranking, with NetEase's "Egg Party" and miHoYo's "Honkai: Star Rail" achieving revenue growth of 23% and 28% respectively in July [4] - Year-to-date stock performance for Century Huatong and Giant Network has been impressive, with increases of approximately 167% and 133% respectively, leading the A-share gaming sector [4] Group 3: Market Outlook - The global gaming market continues to grow, with projections indicating that the combined market for mobile and PC games will exceed $120 billion by 2028 [5] - The report anticipates a 4% year-over-year growth in global mobile game in-app purchase revenue in 2024, reaching $85.4 billion, with further growth expected in 2025 [5] - There remains significant market opportunity for Chinese gaming companies in overseas markets, as evidenced by the 11.07% year-over-year growth in actual sales revenue from self-developed games in the first half of the year [4][5]

Summary of Conference Call Records Industry Overview: Gaming Industry Key Points - **Market Dynamics**: The gaming industry is experiencing a shift with mid-tier companies performing well in mini-programs and overseas markets due to lower costs and technical requirements. In contrast, leading companies are facing challenges in transformation due to high costs and complex processes. It is anticipated that by the end of 2026 or 2027, these leading companies will leverage their technological advantages to capture market share with higher quality products [1][2][3]. - **Product Delays**: Major gaming companies have delayed the release of several products originally scheduled for the first half of 2025 due to changes in player preferences and the rise of new game genres. This has led to a reassessment of R&D investments to capture market share in the latter half of the year [1][3][4]. - **Mobile Market Competition**: The competition in the mobile game publishing and operation sector has slowed down in the first half of 2025, with increased costs in a saturated market. Companies are shifting towards private traffic strategies to maintain user engagement and reduce costs [5]. - **User Demographics**: Changes in user age demographics are influencing game genre preferences. Younger users prioritize fairness and freedom, leading to increased customer acquisition costs for traditional games. Games emphasizing fair competition and content, such as "Soda Car" games, are gaining popularity [6]. - **Domestic Two-Dimensional Market**: The domestic two-dimensional market is polarized, with leading products attracting significant user bases while mid-tier products struggle to survive. High-quality and innovative experiences are essential for development, as smaller productions face challenges in gaining market recognition [7][11]. - **Overseas SLG Market**: Companies like Yuanqu and Jiangyu have successfully navigated the overseas SLG market by innovating and focusing on niche segments, surpassing the 10 million user threshold. The challenge remains to attract non-SLG users, as only 30% of users have previously engaged with SLG games [8][9][10]. - **High Investment Trends**: The trend towards high-investment, high-quality products is creating barriers for smaller companies. While some can match investment levels, they struggle with gameplay differentiation, leading to a reliance on quality to outperform competitors [12]. - **Mini-Game Market**: The mini-game market is growing rapidly, but profitability remains low due to high platform costs and user retention challenges. Companies are exploring new business models to adapt to changing user expectations [13]. - **Regulatory Environment**: The normalization of licensing policies has stabilized time and cost expectations, promoting healthier industry development. This stability encourages the production of high-quality cultural products and supports their international expansion [19]. - **Emerging Game Trends**: The end-game market is witnessing a steady rise, driven by high-quality domestic single-player games and independent games. The emergence of interactive film games is also noted, although success rates in this area are low [16][17][18]. Additional Insights - **Community Engagement**: TapTap has become a significant player in the market, benefiting from user migration and changing demographics, with a 50%-60% share in new user acquisition for projects launched [2][15]. - **Market Risks**: Certain games, such as a tomb-raiding themed game, show growth potential but face risks due to content similarities and competition. The need for innovation and differentiation is critical for maintaining market position [21][22]. - **Military Simulation Games**: The potential for military-themed games like "World of Tanks" is limited due to their aging user base and gameplay. Without innovation, these games may struggle to attract new users [23]. This summary encapsulates the key insights and trends within the gaming industry as discussed in the conference call records, highlighting both opportunities and challenges faced by companies in this dynamic market.

Core Viewpoint - The stock of Zhejiang Century Huatong Group Co., Ltd. (ST Huatong) has seen significant gains, with a year-to-date increase of 176.46% and a monthly increase of 11.80%, benefiting notable investor Wei Wei who has realized substantial profits from his recent acquisition of shares through judicial auction [1][3]. Company Overview - ST Huatong was established in 2005 and successfully listed on the Shenzhen Stock Exchange in July 2011. The company initially focused on automotive parts but transitioned to the internet gaming industry in 2014, completing a major acquisition of Shengqu Games for 29.8 billion yuan in 2019, positioning itself as a leading player in the cultural media sector in A-shares [7]. - The company currently operates in three main business areas: internet gaming, automotive parts manufacturing, and artificial intelligence cloud data, while also engaging in brain science research and investment [7]. Recent Financial Performance - ST Huatong's financial forecast for the first half of 2025 indicates a net profit attributable to shareholders ranging from 2.4 billion to 3 billion yuan, representing a year-on-year growth of 107.20% to 159.00%. The expected consolidated revenue is approximately 17 billion yuan, reflecting an 83.27% increase compared to the previous year [8][9]. - The strong performance is attributed to the excellent results of its subsidiary, Diandian Interactive, which has shown robust growth in both domestic and international markets. Notable products include "Whiteout Survival" and "Kingshot," which have achieved significant revenue milestones [8][9].

Core Insights - The report titled "2025 China Game Overseas Guide - UK Edition" was jointly developed by Gamma Data and the China Audio-Video and Digital Publishing Association's Game Working Committee, providing a comprehensive analysis of the UK gaming market for Chinese game companies looking to expand overseas [1][2]. Group 1: UK Gaming Market Overview - The UK gaming industry is a key pillar of the digital entertainment sector, contributing significantly to the country's cultural soft power [2]. - The market size peaked at £4.9 billion (approximately ¥46 billion) during the COVID-19 pandemic in 2020, reflecting a 29% year-on-year growth compared to 2019, and accounted for about 50% of the digital entertainment industry [2][6]. - In 2024, the UK gaming industry is projected to be worth £4.6 billion, making it the second-largest gaming market in Europe [6]. Group 2: Market Segmentation and Trends - The console gaming segment remains the largest in the UK, holding a 51% market share, while mobile gaming is steadily increasing, accounting for 34% [11][13]. - The mobile gaming market has shown consistent growth over the past five years, with a market size of £1.58 billion in 2024, driven by a high willingness to pay among younger players [17][25]. - Casual gaming genres such as puzzle, gambling, and strategy dominate the mobile gaming market, collectively accounting for 53% of revenue [19][21]. Group 3: Tax Incentives and Compliance - The UK has implemented a video game tax relief policy, allowing companies to claim a 34% tax deduction on qualifying expenditures, with over £5 billion in tax relief provided since its inception [7][8]. - Compliance with regulations such as the General Data Protection Regulation (GDPR) and the Online Safety Act (OSA) is essential for game developers operating in the UK [45][46]. Group 4: Player Behavior and Preferences - Over 62% of UK gamers identify as casual or light gamers, indicating a preference for simple and accessible gaming experiences [31]. - The smartphone is the most popular gaming platform among UK players, with a 36.2% preference, highlighting a shift towards mobile gaming [33]. - Female players tend to favor casual genres like puzzle and life simulation, while male players are more inclined towards competitive and strategy games [35]. Group 5: Marketing and Localization Strategies - UK players prefer "cold humor" in game narratives, contrasting with the more exaggerated "hot humor" typical in American media, suggesting a need for culturally sensitive storytelling [37][38]. - Recommendations for new games primarily come from friends and gaming influencers, emphasizing the importance of community engagement and local marketing strategies [40]. - Social media platforms like TikTok are gaining traction, especially among female users, indicating potential for targeted marketing campaigns [41].

Group 1 - Sony Interactive Entertainment showcased several domestic AAA games, including "Shadow Blade Zero," "Black Myth: Wukong," and "Lost Soul," which attracted significant attention from players at the event [3] - "Shadow Blade Zero" and "Lost Soul" were particularly popular, with large crowds waiting to try them out [3] Group 2 - The ChinaJoy BTOB business negotiation hall saw a substantial number of overseas buyers and exhibitors registering, indicating a shift towards "high-quality growth" in China's gaming export business [9]

Group 1 - Sony Interactive Entertainment showcased several high-profile domestic AAA games, including "Lost Soul" and "Shadow Blade Zero," which attracted significant attention from players at the event [3] - A large number of players queued to experience the games "Lost Soul" and "Shadow Blade Zero," indicating strong interest and engagement from the gaming community [3] Group 2 - The ChinaJoy BTOB business negotiation hall saw a substantial number of overseas buyers and exhibitors registering, reflecting a trend towards high-quality growth in China's gaming export business [9]

Core Insights - The ChinaJoy event is set to open in Shanghai on July 31, 2025, with the China International Digital Entertainment Industry Conference (CDEC) kicking off the festivities [1] - The report released during the conference indicates that the domestic game market achieved actual sales revenue of 168 billion yuan in the first half of 2025, marking a year-on-year growth of 14.08% [1] - The number of game users in China reached approximately 679 million, reflecting a slight year-on-year increase of 0.72% [1] Industry Performance - The actual sales revenue from self-developed games in the domestic market for the first half of 2025 was 140.45 billion yuan, showing a year-on-year increase of 19.29% [3] - The overseas market for self-developed games generated actual sales revenue of 9.50 billion USD, with a year-on-year growth of 11.07% [3] - The primary overseas markets for self-developed mobile games include the United States (31.96%), Japan (16.20%), and South Korea (7.47%) [3] Market Segmentation - In the domestic market, mobile games accounted for 74.59% of actual sales revenue, while client games made up 21.07% and web games only 1.31% [3] - The small program game market in China showed remarkable performance, with actual sales revenue reaching 23.28 billion yuan, a year-on-year increase of 40.20% [4] - Among the revenue from small program games, in-app purchases generated 15.30 billion yuan (65.70%), while advertising revenue accounted for 7.97 billion yuan (34.30%) [4] Future Outlook - The domestic game market is expected to continue its growth trend in the second half of 2025, with a focus on protecting minors and expanding the positive impact of the gaming industry [4]

责任编辑：何俊熹 他表示，"游戏出海的本质还是离不开文化出海，而出海行动的关键在于用国际化的方式去表达中国文 化的一些精神内核。" 姚喆认为，中国文化的现代化方式表达，特别是科幻题材能够获得全球观众的共鸣。根据2025年中国科 幻产业报告，去年中国科幻产业总营收达到1089.6亿元，"西山居选择将科幻这种集聚全球化共识的文 化作为突破口，通过明清时代熟悉的视觉语言，实现中国文化价值和意义的传播。这种策略既延续了中 国传统文化的精神脉络，又以创新的形式契合当代全球玩家的审美偏好。" 8月1日至4日，第二十二届ChinaJoy将在上海新国际博览中心举行。西山居副总裁姚喆在CDEC高峰论坛 发表演讲。 ...

Group 1 - The 22nd ChinaJoy will take place from August 1 to 4 at the Shanghai New International Expo Center [1] - Huawei's HarmonyOS has fully launched its mini-games overseas, featuring an independent game zone to showcase more quality mini-games [1] - Huawei HarmonyOS has expanded its collaboration in the gaming industry by introducing game short dramas, with the first short drama "Wilderness Mystery" achieving over 200 million exposures and more than 15 million views within two weeks of its launch [3] Group 2 - Huawei is exploring overseas opportunities with partners and has launched a comprehensive deep cooperation model for overseas expansion, which has already reached the Middle East last year [3]

Core Insights - Shanghai's online gaming industry has achieved continuous growth in both domestic and overseas revenues for three consecutive years, with strong talent attraction and long-term operational capabilities being key advantages for future breakthroughs [1] Group 1: Revenue Growth - In the first half of 2025, Shanghai's domestic online gaming sales revenue reached 68.737 billion yuan, a year-on-year increase of 10.73%, driven by long-term products and new releases [1] - Overseas sales revenue for Shanghai's online games reached 14.546 billion yuan, with a year-on-year growth of 11.12%, supported by quality overseas products and the establishment of overseas publishing brands [1] Group 2: Talent Attraction - Shanghai's job opportunities and salary levels contribute to its talent attraction, with 10.3% of game-related job postings in 2024 located in Shanghai, an increase of 0.2% year-on-year, highlighting its status as a key hub for the gaming industry [2] Group 3: Industry Ecosystem - The Shanghai gaming industry possesses multiple advantages that form the foundation of its competitiveness and will drive further growth in the gaming and esports sectors [3] Group 4: Long-term Operational Capability - The long-term operational capability of Shanghai's gaming products is a significant advantage for overseas expansion, with 63.3% of Shanghai's products in the top 100 overseas mobile games maintaining their ranking in 2024, indicating a higher retention rate than the national average [5] Group 5: Original Game IP - In 2024, 67.8% of mobile games with over 10 million yuan in revenue in Shanghai were based on original Chinese game IPs, reflecting a nearly 5% increase from 2023, showcasing the maturity of Shanghai's game companies in creating original IPs [7] Group 6: Esports Market - In the first half of 2025, revenue from areas outside of electronic sports games in Shanghai's esports industry reached 3.254 billion yuan, with a year-on-year growth rate of 6.91%, driven by live streaming, events, and clubs [9]