Core Viewpoint - The article discusses the evolution of China's gaming industry policies, highlighting the government's support and regulatory measures aimed at fostering growth and addressing challenges within the sector [2][3][4]. Policy Evolution - The gaming industry in China has transitioned from "cultural market management" to "digital content industry cultivation" and finally to "cultural industry pillarization and digital strategy" as outlined in national economic plans from the "Eighth Five-Year Plan" to the "Fourteenth Five-Year Plan" [2][3][4]. - The "Eleventh Five-Year Plan" (2006-2010) encouraged the development of digital content industries, including gaming, and emphasized cultural innovation and quality improvement [3]. - The "Twelfth Five-Year Plan" (2011-2015) aimed to make the cultural industry a pillar of the national economy, enhancing its overall strength and competitiveness [3]. - The "Thirteenth Five-Year Plan" (2016-2020) introduced the term "gaming" and focused on accelerating the development of emerging industries such as online audio-visual, mobile multimedia, and digital publishing [3]. - The "Fourteenth Five-Year Plan" (2021-2025) emphasizes expanding the supply of quality cultural products and implementing a digital strategy for the cultural industry [4]. National Policy Summary - Since 2000, various government bodies have issued policies to support and regulate the gaming industry, covering aspects such as technological development, industry standards, and minor user regulations [7][8]. - Key policies include the "Network Game Management Measures" aimed at ensuring the healthy development of the gaming industry and the "Technical Requirements for Minor User Monitoring Systems" which impose restrictions on gaming time and spending for minors [9][10]. Provincial Policies - Coastal provinces like Guangdong, Beijing, and Zhejiang have introduced supportive policies for the gaming industry, focusing on high-quality development, technological innovation, and overseas expansion [23][24]. - Specific measures include optimizing game approval processes, encouraging the development of 3A games, and supporting collaborations with historical IPs [24][25]. Market Outlook - As of mid-2025, China's gaming industry is projected to have an overseas market size of $9.501 billion, reflecting a year-on-year growth of 11.07% [20]. - The government aims to enhance the global competitiveness of the gaming industry by promoting the entire value chain from IP creation to overseas operations [20].

Summary of Bilibili Inc. (BILI) Conference Call Company Overview - **Company**: Bilibili Inc. (BILI) - **Market Cap**: $10.0 billion - **Enterprise Value**: $7.3 billion - **Industry**: Games, Entertainment & Healthcare Tech Key Points Advertising Outlook - Bilibili's advertising growth is expected to be robust, with a projected **20% year-over-year growth** for 2H25, driven by: - Increased ad inventory and higher ad load due to growing user traffic [2][25] - An upward trajectory in effective cost per mille (eCPM) supported by improved algorithms and a broader client base [2][25] - The company is refining its ad infrastructure, indicating ample room for improvement in monetization [2] Game Pipeline and Approvals - The near-term game outlook is cautious, with guidance for 2H25 indicating a potential **15% to high-teens percent decline** in game revenue year-over-year due to a tough comparison base from the previous year [3][22] - Bilibili received approvals for two games, **Trickcal RE:VIVE** and **Escape from Duckov**, which are expected to enhance visibility for its game pipeline [3][24] - The casual game **Sanguo: Ncard** is anticipated to launch by the end of 2025 or early 2026, contributing to future growth [3][27] Financial Estimates and Adjustments - Revenue estimates for 2025-2027 have been fine-tuned downwards by **-2% to -1%** due to a lighter game pipeline, although advertising performance is stronger than expected [4][18] - The revised revenue estimates are as follows: - **2025E**: Rmb 29,959.9 million (down from Rmb 30,376.6 million) - **2026E**: Rmb 32,992.4 million (down from Rmb 33,460.3 million) - **2027E**: Rmb 35,790.2 million (down from Rmb 36,608.4 million) [5][19] Margins and Profitability - The company aims to achieve a **10% adjusted operating profit margin** by the end of 2025, benefiting from operating leverage [26] - Gross profit margin is expected to improve sequentially, reaching approximately **37%** in Q4 [26] User Engagement and Growth Metrics - Monthly Active Users (MAU) are projected to grow from **341 million in 2024** to **373 million by 2027**, indicating a steady increase in user engagement [28] - Daily Active Users (DAU) are expected to rise from **104 million in 2024** to **120 million by 2027** [28] Competitive Landscape - Bilibili's advertising revenue is projected to grow significantly, with a focus on young users, which may help brands gain exposure beyond traditional circles [2] - The top verticals contributing to advertising growth include games, 3C digital products, e-commerce, internet services (including AI), and automotive sectors [27] Conclusion - Bilibili Inc. maintains a **Buy rating** with a 12-month price target of **$26.30**, reflecting a **9.7% upside** from the current price of **$23.98** [1] - The company is positioned to leverage its advertising growth while navigating challenges in the gaming segment, with a focus on improving margins and user engagement metrics [1][3][25]

Group 1 - The National Press and Publication Administration approved a total of 173 games in August, including 166 domestic and 7 imported games, setting a new high for the year [1][2] - By August 2025, over 1100 games have been approved in total for the year, with 1119 games receiving approval, an increase of 193 compared to the same period last year [4] - Among the 166 domestic games, there are 107 mobile games, 39 mobile-casual puzzle games, 17 mobile and client games, 2 client games, and 1 console game [1] Group 2 - Notable companies with approved products include NetEase with "Tianxia: Wanxiang," Century Huatong with "Legend of the Ancients," and Bilibili with "Escape from Duckkov" [1] - The 7 imported games include "Kaeas Dreamland" by Xiaoming Taiji and Tencent Games, "Age of Discovery: Origins" by Century Huatong, and "Dudu Face Prank" by Bilibili [2] - Some games underwent approval information changes, such as "Matrix: Zero Day Crisis" adding a console version and "Tianya Mingyue Dao" being renamed to "Tianya Mingyue Dao: World" with an added client version [4]

Core Insights - The National Press and Publication Administration released the approval information for domestic online games in August 2025, with a total of 166 domestic game licenses issued, indicating a growing trend towards multi-platform products [1][2]. Domestic Game Licenses - Out of the 166 domestic game licenses, 163 are for mobile games, 19 for client games, and 1 for console games. Additionally, 17 games received licenses for both mobile and client categories, highlighting the increasing trend of multi-platform products [1]. - A total of 1,050 domestic game licenses have been issued in 2025 as of August, with the monthly approval numbers showing a phase of growth, reaching a new high this month [2]. Imported Game Licenses - A new batch of 7 imported game licenses was also released, with 6 for mobile and 3 for client games. The frequency of issuing imported game licenses has changed from bi-monthly to monthly, maintaining relative stability without significant growth [4]. - Notable imported games include Tencent's "Kaeas Dreamland," developed by the SUPER CREATIVE team under South Korea's Smilegate, which will be co-operated by Tencent Games and Xiaoming Taiji [7]. Notable Games and Developers - Key domestic games approved include titles from major developers such as NetEase, Bilibili, and 37 Interactive Entertainment, with games like "Tianxia: Wanxiang" and "Escape from Duckkov" among the highlights [6]. - For imported games, Tencent's "Kaeas Dreamland" and other titles from companies like Shengqu and Bilibili are noteworthy, showcasing a mix of local and international collaborations [7].

Core Viewpoint - The National Press and Publication Administration approved 166 domestic online games in August 2025, including titles from companies like Zhongqingbao and NetEase, indicating a positive trend in the gaming industry and potential growth opportunities for these companies [1]. Company Summaries - Zhongqingbao (300052.SZ) has three games approved: "Let's Go! Kulu," "Cat Island Party," and "Cute Beast Attack Team," showcasing its active participation in the gaming market [1]. - NetEase (09999) has its game "Tianxia: Wanxiang" approved, reflecting its ongoing efforts to expand its gaming portfolio [1]. - Sanqi Interactive Entertainment (002555.SZ) received approval for "Super Cow Hero," indicating its continued growth in the mobile gaming sector [1]. Industry Insights - A total of 166 games were approved, highlighting the regulatory body's support for the gaming industry, which may lead to increased competition and innovation among gaming companies [1]. - The approval of multiple games from various companies suggests a robust pipeline of new content, which could enhance user engagement and revenue generation in the gaming sector [1].

Core Insights - The article highlights the significant growth and competition in the shooting game genre, particularly in the mobile gaming sector, with major players like Tencent and NetEase actively expanding their portfolios [1][2][7]. Group 1: User Engagement and Market Dynamics - On June 5, the active user count for "Peace Elite" surpassed 37 million, indicating strong engagement in the shooting game segment [1]. - The National Press and Publication Administration approved 147 domestic and 11 imported games, including several shooting titles, reflecting a robust market for this genre [1]. - The shooting genre accounted for 13.89% of the top 100 mobile games by revenue last year, ranking third, showcasing its significant market share [2]. Group 2: Revenue and Profitability Insights - Despite a focus on user metrics like DAU (Daily Active Users) and MAU (Monthly Active Users), the revenue potential of shooting games, especially on PC, is substantial, as indicated by Tencent's comments on "Delta Force" [2][7]. - In 2024, the tactical multiplayer genre is projected to lead mobile game revenues at 17.99%, followed closely by role-playing games at 17.85% and shooting games at 13.89% [2]. Group 3: Competitive Landscape - The shooting game market is characterized by intense competition among Chinese developers, who are not only competing internally but also vying for market share against established Western companies [9]. - Emerging markets like Russia, Turkey, and Brazil are showing explosive growth in active users for shooting games, indicating a shift in global gaming dynamics [9]. Group 4: Innovation and Long-term Viability - The shooting genre continues to evolve with innovative gameplay, such as the integration of tactical elements and various modes, which keeps the genre fresh and engaging for players [10][12]. - The ability of shooting games to incorporate diverse gameplay elements without alienating core players suggests a strong potential for long-term engagement and revenue generation [13].

Core Insights - The National Press and Publication Administration issued approval for 144 game titles in May 2025, including 130 domestic and 14 imported games [1] - Notable games receiving approval include Perfect World's "Yihuan" and NetEase's "Destiny: Stars" [1][4] - Perfect World's "Yihuan" has gained significant attention, with over 10 million views on Bilibili and 2.48 million reservations on TapTap [1][4] Group 1: Domestic Games - A total of 130 domestic games received approval, with key products from listed companies such as Shanghai Shulong's "Dragon Valley: Remake" and Baidu's "Greedy Snake Battle 2" [1] - Perfect World's "Yihuan" is highlighted as a potential turnaround product for the company, being the first urban supernatural open-world RPG in China [4] - The game's recruitment video has surpassed 5 million views, indicating strong interest [4] Group 2: Imported Games - 14 imported games were approved, including NetEase's "Destiny: Stars," which is the first mobile game based on the Bungie IP [4] - "Destiny: Stars" retains the series' world view and includes classic gameplay elements along with new features like Rogue mode [4] - Other notable imported titles include "Rainbow Island: Adventure" and "Eternal Tree Song: Genesis" from listed companies [4] Group 3: Changes in Game Approvals - Tencent's "Yuanmeng Star" received a new client version approval, while Blizzard's "Diablo II" had its operational unit changed, indicating a potential reconciliation between NetEase and Blizzard [5][8] - The approval for "Diablo II" marks a significant milestone for the classic ARPG, which has sold over 15 million copies globally since its release in 2000 [8]

Group 1 - The National Press and Publication Administration issued 130 domestic game approvals in May 2025, with a notable increase in monthly approvals, reaching a new high this month [1][3] - Among the approved domestic games, 76 are mobile games, 54 are mobile-casual puzzle games, 6 are client games, and 1 is for the PS5 console, with some games receiving multiple platform approvals [1][5] - A total of 610 domestic game approvals have been issued this year, indicating a continuous upward trend in the approval rate [1][3] Group 2 - The number of imported game approvals has shifted from bi-monthly to monthly, with a consistent increase in the number of approvals each month [3] - In the latest batch of imported game approvals, 14 mobile games were granted licenses, with some receiving approvals for multiple platforms [1][5] - Notable titles among the newly approved games include Tencent's "Secret Realm Knife Boy," Perfect World's "Different Ring," and NetEase's "Fate: Stars" [5][15]

Group 1 - In May, the National Press and Publication Administration approved 130 domestic online games, including titles from Perfect World and Kaixin Network [1][2] - Among the approved games, 70 are mobile games, 54 are mobile-casual puzzle games, 5 are mobile + client games, and 1 is a tri-platform game [1] - 14 imported online games were also approved, including Blizzard's "Diablo II" which is set to launch in the Chinese market [1][4] Group 2 - Perfect World's "Yihuan," a three-platform game, received approval and is an open-world RPG developed on the Unreal Engine 5, generating significant interest with over 5 million views during its promotional phase [2] - The game has been compared to "GTA" due to its impressive graphics and is seen as a potential turnaround project for Perfect World [2] - Tencent's "Yuanmeng Zhi Xing" has added a client version, expanding its platform availability [7]

Industry Developments - The Chinese government has introduced multiple favorable policies for the gaming industry, including support for game exports and the establishment of a "Game Art Design" undergraduate program [1][4][5] - The National Press and Publication Administration approved 127 new game licenses in April, with 118 being domestic games [1][6] Company Updates - Gigabit reported Q1 2025 revenue of 1.136 billion yuan, a year-on-year increase of 22.47%, and a net profit of 283 million yuan, up 11.82% [1][8] - Giant Network's 2024 net profit grew by 31.15%, with stable operations and significant growth in mini-game business [1][11] - Iceberg Network reported a net loss of 247 million yuan in 2024, a decline of approximately 190%, primarily due to high overseas marketing costs [1][9][10] - Perfect World experienced a 28.5% revenue decline in 2024 but rebounded in Q1 2025 with a revenue increase of 52.22% [1][12] - Youzu Network's 2024 revenue fell by 11.75%, but Q1 2025 showed a revenue increase of 7.29% [1][13] - Tencent announced 46 game updates at the SPARK 2025 conference, including 24 new games [1][14] - Ru Yi Jing Xiu partnered with NBA China to develop two mobile games, expanding into the sports gaming sector [1][15] - NetEase's global investment and cooperation president Simon Zhu announced his departure, with Li Riqiang taking over [1][16]