Industry Overview Key Events - China-led industrial 5G international standard officially released, filling the gap in the international standard of industrial 5G [1] - The State Council approved the "Land and Space Plan for the Chengdu-Chongqing Economic Circle (2021 - 2035)", with specific targets for cultivated land, ecological protection, urban development, and water use by 2035 [1] - In the first three quarters, the advertising business revenue of top advertising enterprises and institutions reached 1388.09 billion yuan, a year-on-year increase of 9.6%. Internet advertising maintained rapid growth, with a revenue of 712.88 billion yuan, a year-on-year increase of 22.5%, accounting for 81.2% of the total advertising release revenue [1] Market Conditions - **Upstream**: Prices of iron ore and rebar declined; international oil prices and liquefied natural gas prices dropped slightly [3] - **Midstream**: PX operating rate was at a high level; power plant coal consumption remained stable; asphalt operating rate increased slightly [3] - **Downstream**: Commercial housing sales in first, second, and third-tier cities continued to decline; domestic flight frequencies increased slightly, and the film box office was in the off-season [3] Price Indicators - **Agriculture**: On November 6, the spot price of corn was 2152.9 yuan/ton, up 0.27% year-on-year; the spot price of eggs was 6.2 yuan/kg, up 0.81% year-on-year; the spot price of palm oil was 8760.0 yuan/ton, down 0.66% year-on-year; the spot price of cotton was 14826.2 yuan/ton, down 0.22% year-on-year; the average wholesale price of pork was 18.1 yuan/kg, up 1.46% year-on-year [34] - **Nonferrous Metals**: On November 6, the spot price of copper was 85936.7 yuan/ton, down 2.36% year-on-year; the spot price of zinc was 22476.0 yuan/ton, up 1.08% year-on-year; the spot price of aluminum was 21376.7 yuan/ton, up 0.90% year-on-year; the spot price of nickel was 120750.0 yuan/ton, down 1.21% year-on-year; another spot price of aluminum was 17318.8 yuan/ton, up 0.28% year-on-year [34] - **Black Metals**: On November 6, the spot price of rebar was 3133.0 yuan/ton, down 2.05% year-on-year; the spot price of iron ore was 792.2 yuan/ton, down 3.51% year-on-year; the spot price of wire rod was 3305.0 yuan/ton, down 1.78% year-on-year; the spot price of glass was 14.0 yuan/square meter, up 1.30% year-on-year [34] - **Non-metals**: On November 6, the spot price of natural rubber was 14616.7 yuan/ton, down 0.90% year-on-year; the China Plastic City price index was 776.9, down 0.08% year-on-year [34] - **Energy**: On November 6, the spot price of WTI crude oil was 59.6 US dollars/barrel, down 1.46% year-on-year; the spot price of Brent crude oil was 63.5 US dollars/barrel, down 2.16% year-on-year; the spot price of liquefied natural gas was 4288.0 yuan/ton, down 1.15% year-on-year; the coal price was 824.0 yuan/ton, up 1.85% year-on-year; the spot price of PTA was 4561.1 yuan/ton, up 0.19% year-on-year [34] - **Chemicals**: On November 6, the spot price of polyethylene was 7011.7 yuan/ton, down 1.34% year-on-year; the spot price of urea was 1597.5 yuan/ton, down 1.39% year-on-year; the spot price of soda ash was 1203.6 yuan/ton, down 0.71% year-on-year; the national cement price index was 136.7, down 0.36% year-on-year [34] - **Real Estate**: On November 6, the building materials composite index was 111.8 points, down 1.55% year-on-year; the national concrete price index was 90.9 points, down 0.15% year-on-year [34]

Core Insights - The National Market Regulation Administration of China conducted a statistical survey on leading advertising enterprises, revealing that these entities achieved an advertising revenue of 1.38809 trillion yuan in the first three quarters of this year, marking a year-on-year growth of 9.6% [1] Revenue Growth - In terms of quarterly performance, the first and second quarters experienced a year-on-year growth of 11.3%, while the third quarter saw a growth of 7.2% [1] - On a quarter-on-quarter basis, the advertising revenue of leading enterprises increased by 24.5% in the third quarter [1] Internet Advertising - Internet advertising continued to grow rapidly, with leading enterprises generating an internet advertising revenue of 712.88 billion yuan in the first three quarters, reflecting a year-on-year increase of 22.5% and accounting for 81.2% of total advertising revenue [1] Regional Performance - The top five regions for advertising revenue among leading enterprises were Shanghai, Beijing, Guangdong, Zhejiang, and Jiangsu, with year-on-year growth rates of 9.0%, 3.5%, 17.4%, 17.8%, and 7.3% respectively [1] - Collectively, these regions accounted for 1.09999 trillion yuan in advertising revenue, representing 79.2% of the national total [1] - Regions such as Shandong, Chongqing, Guangxi, Ningxia, and Gansu exhibited faster growth rates in advertising revenue [1]

Group 1 - Publicis Groupe has officially launched its Shenzhen office in Qianhai, marking its eighth core office in Greater China and indicating a strategic expansion in the region [1] - The company reported a net revenue of €13.965 billion for 2024, surpassing WPP to become the "largest advertising group in the world" [1] - In Q3 2025, Publicis achieved an organic growth rate of 5.7%, with the Asia-Pacific region performing particularly well, and China showing an organic revenue growth of 6.1% [1] Group 2 - Qianhai's appeal to the advertising industry is driven by multi-dimensional support, including the establishment of a招商小组 to attract international advertising firms [2] - Recent initiatives include hosting international advertising exchange events and providing tax-related support for advertising companies [2] - The introduction of policies to promote high-quality development in the cultural industry, specifically targeting the advertising sector, aims to create a "Shenzhen-Hong Kong International Advertising Industry Belt" [2]

Core Insights - The market regulatory authority conducted a statistical survey on leading advertising enterprises, revealing that these entities achieved an advertising business revenue of 1.38809 trillion yuan in the first three quarters of this year, representing a year-on-year growth of 9.6% [1] Advertising Industry Summary - Internet advertising continues to experience rapid growth, with leading enterprises generating internet advertising revenue of 712.88 billion yuan in the first three quarters, marking a year-on-year increase of 22.5% [1] - Internet advertising accounted for 81.2% of the total advertising revenue generated by these enterprises [1]

Core Viewpoint - Recently, the establishment of Linli Hongsheng Signage and Labeling Business (individual business) was registered, indicating a new player in the advertising and signage industry [1] Company Overview - The legal representative of the newly established business is Deng Zongguo, with a registered capital of 28,000 RMB [1] - The business scope includes various printing services, advertising design, and production, as well as sales of metal signage for traffic and public management [1] Business Activities - Licensed projects include printing of documents and other printed materials, binding services, and specialized construction operations [1] - General projects encompass advertising design and agency, advertising production and publication, professional design services, and various marketing and cultural activities [1] Manufacturing and Sales - The company is involved in the manufacturing and sales of digital video surveillance systems, metal structures, and materials [1] - Additional activities include office supplies sales and retail of arts and crafts, excluding ivory and its products [1]

Core Viewpoint - The company, 雅仕维 (01993.HK), has entered into an advertising agreement with 蒲公英, where its wholly-owned subsidiary, 浙江雅铁, will provide digital advertising services at the Fengqi Road Station on Line 2 of the Hangzhou Metro in China, effective November 5, 2025 [1] Group 1 - The agreement involves digital advertising services [1] - The location for the advertising services is at the Fengqi Road Station, known as 西湖之眼, on the Hangzhou Metro Line 2 [1] - The agreement is set to commence on November 5, 2025 [1]

Core Viewpoint - The company Yashiv (01993) has entered into an advertising agreement with its wholly-owned subsidiary Zhejiang Yatie, which will provide digital advertising services at the West Lake Eye station on Line 2 of the Hangzhou Metro in China, effective November 5, 2025 [1] Group 1 - The agreement involves the provision of digital advertising services [1] - The location for the advertising services is specified as the West Lake Eye station on the Hangzhou Metro Line 2 [1] - The effective date of the agreement is set for November 5, 2025 [1]

Core Insights - A new individual business named Kunming Yangzonghai Scenic Area Mingchen Paper Products Operating Department has been established, with a registered capital of 30,000 RMB [1] Company Overview - The legal representative of the new business is Huang Jian [1] - The business scope includes general projects such as paper product manufacturing, plastic packaging box and container manufacturing, paper product sales, packaging services, sales of packaging materials and products, sales of pre-packaged health food, internet sales of food (limited to pre-packaged food), advertising production, advertising design and agency, domestic trade agency, manufacturing of packaging special equipment, and sales of packaging special equipment [1]

Core Viewpoint - CITIC Securities has initiated coverage on JOYY Inc. (欢聚集团) with a "Buy" rating and set a target price of $97 for 2026, indicating significant upside potential from the current stock price [1] Group 1: Value Proposition - JOYY's current market capitalization is below its net cash on the balance sheet, which is approximately $3.3 billion as of Q2 2025 [1] - The company has announced a shareholder return plan for 2025-2027, including a share buyback of about $300 million and cash dividends of approximately $600 million ($50 million per quarter), resulting in an annualized shareholder return rate of around 10% [1] - The traditional live streaming business has stabilized after adjustments, with expectations of providing steady cash inflows in the future [1] Group 2: Growth Potential - The global third-party programmatic advertising market is experiencing rapid growth, with companies like Applovin and Mobvista showing strong performance [1] - JOYY's BIGO Ads platform benefits from its own data accumulated through a pan-entertainment and e-commerce ecosystem, allowing it to compete in third-party data with lower customer acquisition costs [1] - The advertising business is still in the early stages of accelerated growth, and analysts are optimistic about the rapid expansion of the third-party advertising business, which could drive a shift in the company's investment profile from value to growth [1][2] Group 3: Business Performance - JOYY's fundamentals are improving, with overseas live streaming business stabilizing quarter-on-quarter and overseas advertising business showing significant year-on-year growth [2] - As advertising business volume increases and profitability rebounds, JOYY is expected to undergo a valuation reassessment [2]

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **Chinese film and media industry** for the third quarter of 2025, highlighting the performance of various companies within this sector, including **China Film**, **Light Media**, and **Wanda Film** [1][2]. Core Insights and Arguments - **Box Office Performance**: The total box office revenue for the third quarter was approximately **11.4 billion yuan**, representing a year-on-year increase of about **16%**. However, this remains relatively low compared to pre-pandemic levels, with average monthly box office figures between **3 billion to 4 billion yuan** [2]. - **Profit Growth**: Notable profit growth was reported by several companies: - **China Film**: Profit growth exceeded **1,400%** - **Light Media**: Profit growth surpassed **900%** - **Wanda Film**: Profits slightly exceeded expectations - **Hengdian** and **Light Media**: Net profit growth of **1,085%** and **900%** respectively [2]. - **Diversification Strategies**: Film companies are diversifying their revenue streams through: - **IP derivatives** - **Advertising** - **VR theaters** - **Merchandising** [3]. - **Upcoming Film Releases**: Anticipated releases during key periods such as the **New Year** and **Spring Festival** are expected to positively impact the market, with several domestic and imported films scheduled for release, including **"Zootopia 2"** and **"Avatar 3"** [5]. Additional Important Content - **Short Drama and AI Animation Trends**: The short drama and AI animation sectors are rapidly developing, with Douyin reporting a significant increase in paid traffic from **3 million daily in Q2 to 10 million daily in August**. The market for animation is projected to exceed **20 billion yuan** by 2025 [6]. - **Trends in the Toy Industry**: The collectible toy industry, represented by **Pop Mart**, is expanding rapidly in North America, with plans to open around **100 stores** by year-end and a profit target of **13.5 billion yuan** for the year [7]. - **Performance of Other Companies**: - **Guangbo Co.**: Achieved a profit of approximately **50 million yuan**, a **50%** year-on-year increase, driven by stable growth in exports and IP derivatives [8]. - **Aofei Entertainment**: Focused on IP development, with a revenue target of at least **2.85 billion yuan** for 2026 [9]. - **Advertising Sector Performance**: The advertising industry saw a total revenue of **59.1 billion yuan**, with a year-on-year growth of about **8%**. Notable companies like **Epoint** and **Yuanlong Yatu** reported revenue growth rates of **47%** and **41%** respectively [10]. Conclusion - The Chinese film and media industry is experiencing a recovery with significant profit growth among key players, driven by diversification and upcoming film releases. The trends in short dramas and AI animations, along with the expansion of the collectible toy market, indicate a dynamic and evolving landscape in the entertainment sector.