Core Viewpoint - The ongoing legal dispute between miHoYo and Tencent revolves around the protection of user privacy and the request for user data in a civil lawsuit initiated by miHoYo [1][3]. Group 1: Legal Proceedings - A new civil lawsuit has been filed by miHoYo against Tencent, with a court hearing scheduled for September 5 in Shenzhen [3]. - The case is categorized as "other civil" and is part of miHoYo's broader strategy to combat leaks and internal breaches within its gaming content [3][4]. - miHoYo has been actively pursuing legal actions against over 260 individuals involved in leaking game content since 2023 [7]. Group 2: Content Leakage and Enforcement Actions - miHoYo has reported significant findings of unauthorized disclosures of unreleased game content for titles like "Genshin Impact" and "Honkai: Star Rail" by various online influencers [4][7]. - The company has successfully collaborated with law enforcement to apprehend individuals involved in the illegal dissemination of game content, including a suspect who confessed to profiting from such activities [7]. - miHoYo's legal department has been conducting a "special operation against game leaks," resulting in criminal measures against those who leaked unreleased game content [3][4].

9月1日晚，腾讯回应被米哈游起诉："本次诉讼系米哈游因自身民事诉讼需要，希望调取相关QQ用户资 料，但根据保护用户隐私的相关法律规定，腾讯公司不能违规提供用户资料，只有通过正式司法诉讼程 序才能做调取提供。腾讯会严格遵照法律规定和相关诉讼程序给予支持。" 值得注意的是，2025年7月份，上海米哈游无定谷科技有限公司成立，法定代表人为于晨曦，注册资本 为5亿元，经营范围包含：互联网信息服务；广播电视节目制作经营；信息网络传播视听节目；动漫游 戏开发；数字文化创意软件开发等。企查查股权穿透显示，该公司由上海米哈游网络科技股份有限公司 全资持股。 （齐鲁晚报·齐鲁壹点客户端编辑 张宝帆综合 腾讯QQ官方微博、企查查） ...

Core Viewpoint - Tencent Games is poised to capitalize on industry trends with the upcoming release of "Path of Exile: Ascendancy," which has shown significant success overseas and is expected to perform well in the domestic market [1][2][3]. Market Performance - "Path of Exile: Ascendancy" topped the Steam sales chart for eight consecutive weeks, achieving nearly 600,000 concurrent players across all platforms and a peak viewership of 1.23 million on Twitch [4]. - The game has garnered over 2.25 million pre-registrations on its official website [4]. Industry Reputation - The game received multiple accolades in the Steam 2024 awards, including "Platinum Level New Product" and "Most Popular Game" [5]. - Tencent's senior vice president praised the game's development team for their community engagement and continuous improvement [5][6]. Development Strategy - Tencent has acquired a majority stake in Grinding Gear Games (GGG) but allows for independent operation, similar to its management of Riot Games [12]. - GGG's focus on community feedback and innovative gameplay design is expected to enhance the game's appeal [10][15]. Gameplay Features - "Path of Exile: Ascendancy" emphasizes high freedom in character builds and complex skill interactions, distinguishing it from mainstream ARPGs [16][18]. - The game introduces a more dynamic loot system, allowing for random drops from any monster, enhancing player engagement [22][23]. Localization and AI Integration - The game aims for extensive localization, with over one million words of text and 17,000 lines of voice acting in Chinese [31]. - An AI assistant will be integrated to provide guidance without restricting player freedom, enhancing the overall gaming experience [34][35]. Market Trends - The success of "Delta Action" has reignited interest in PC gaming, with a reported daily active user count exceeding 20 million [41]. - Tencent's dominance in the gaming market is reinforced by its strong portfolio, with seven out of the top ten games in the net cafe rankings being Tencent titles [45]. Future Outlook - The gaming industry is witnessing a revival in PC gaming, driven by successful titles like "Black Myth: Wukong," which has increased player interest in the platform [52]. - Despite challenges such as hardware limitations and strict regulatory approvals, the trend towards multi-platform gaming is expected to continue [54].

Core Viewpoint - The report highlights the strong performance of Kaiying Network in H1 2025, driven by the growth of its game box and overseas business, and suggests a buy rating due to the company's increasing investment value through share repurchase and management confidence in future growth [1][5]. Financial Performance - In H1 2025, the company achieved revenue of 2.578 billion yuan, a year-on-year increase of 0.89%, and a net profit attributable to shareholders of 950 million yuan, up 17.41% [2]. - In Q2 2025, revenue was 1.225 billion yuan, a decline of 1.80% year-on-year, while net profit increased by 12.79% to 432 million yuan [2]. Business Growth Drivers - The growth in revenue and net profit is attributed to: 1. Steady operation of classic games like "Original Legend" and "Angel Battle" [2]. 2. Significant growth in game box services, with a 65.33% increase in revenue from information services [2]. 3. Strong overseas performance, with international revenue reaching 202 million yuan, a 59.57% increase, driven by successful game launches [2]. Future Outlook - The company expects the performance of game boxes to gradually improve starting Q3 2025, following exclusive IP authorizations and partnerships with other gaming companies [3]. - The company has a robust pipeline of games across various genres, with 14 games approved for release from January to August 2025 [4]. AI and Technology Initiatives - The company is diversifying into AI, launching an AI development platform for the gaming industry and investing in VR hardware and AI applications [4]. Share Repurchase and Management Confidence - The company plans to repurchase shares with a total fund of 100 million to 200 million yuan, aiming to enhance investment value [5]. - Management has committed to not selling shares from 2024 to 2028 and has already begun increasing their holdings [5]. Earnings Forecast - Revenue projections for 2025-2027 are 6.14 billion, 6.77 billion, and 7.47 billion yuan, with corresponding growth rates of 19.9%, 10.3%, and 10.4% [6]. - Net profit forecasts for the same period are 2.19 billion, 2.52 billion, and 2.82 billion yuan, with growth rates of 34.5%, 14.9%, and 11.9% [6].

Core Insights - The company's 1H25 performance aligns with expectations, showing significant revenue and profit growth, with a 39% increase in revenue to 3.08 billion yuan and a 223.5% increase in profit to 811 million yuan [1] Group 1: Financial Performance - The company's revenue for 1H25 increased by 39% to 3.08 billion yuan, meeting the forecast of at least 3.05 billion yuan [1] - Net profit attributable to shareholders rose by 268% to 755 million yuan, with adjusted net profit increasing by 235% to 796 million yuan [1] - The overall performance is consistent with the company's profit warning and analyst expectations [1] Group 2: Game Development and Trends - Game revenue for 1H25 increased by 39% to 2.07 billion yuan, driven by strong performances from titles like "Ragnarok M: Origin" and "Heart Town" [1] - Future growth is anticipated from existing games, particularly with the commercialization acceleration of "Heart Town" and the overseas launch of "Ragnarok M: Origin" [1] - New game launches to watch include "Iser," set to launch on September 25, and "Ragnarok RO: Guardians of Eternal Love," which is scheduled for testing by the end of the year [1] Group 3: TapTap Platform and User Engagement - The TapTap platform has shown a stable monthly active user count of 43.625 million, with a 1% year-on-year increase, while daily active users have increased by 11% over the past year [2] - The company is enhancing its community ecosystem by integrating more games with TapSDK, which allows for data sharing and the creation of differentiated content [2] - Revenue from Tap increased by 38% to 1.01 billion yuan, attributed to improvements in the advertising system and market positioning as a unique player in the game acquisition platform [2] Group 4: Future Outlook and Valuation - The company maintains net profit forecasts of 1.65 billion yuan and 1.95 billion yuan for 2025 and 2026, respectively [3] - The current stock price corresponds to 21 and 18 times the P/E ratio for 2025 and 2026, with a target price increase of 14% to 93.7 HKD, indicating a potential upside of 16% [3]

Core Viewpoint - The article discusses the rapid rise of casual mini-games in the lives of workers, highlighting their addictive nature and the significant revenue potential they present for developers [11][18][60]. Group 1: Mini-Games Popularity - Mini-games have infiltrated the daily lives of workers, becoming a part of their routine and often leading to late-night gaming sessions [11][17][18]. - These games, such as "抓大鹅" (Catch the Goose) and "折螺丝" (Screw Folding), are characterized by simple rules and increasing difficulty, making them highly engaging [20][24][46]. - The user base for mini-games is substantial, with over 500 million monthly active users on WeChat alone, indicating a massive market potential [59][60]. Group 2: Revenue Generation - Mini-games are generating significant revenue through advertising rather than in-app purchases, as many do not have the necessary licenses for monetization [72][74]. - The revenue model relies on high user engagement, where players watch ads to gain in-game advantages, allowing developers to earn a few cents per ad viewed [78][80]. - The casual gaming market is projected to reach 610 billion yuan by 2025, reflecting a 22% growth rate [65][139]. Group 3: User Demographics - The primary demographic for mini-games includes individuals aged 24-40, with a notable female user base that is higher than traditional gaming demographics [128][132]. - Many users are new to gaming, with 50% of WeChat mini-game players having never engaged with traditional client games before [127]. - Mini-games cater to the needs of busy workers, providing quick and easy entertainment during fragmented time slots throughout the day [132][134].

Company Achievements & Strategy - Mythical Games launched a successful mobile game with Pudgy branding [1] - The company is actively driving forward games involving crypto [1] - The company hired a new team member to boost growth [1] - The company aims to bring more people into the "crypto user" funnel [1] - The company is pushing for DeFi adoption through mass-market appeal [1] Industry Perspective - Rising tides benefit all game publishers/studios working with crypto [1] - The ultimate goal is to attract hundreds of millions of new market participants [2]

Core Viewpoint - The financial report of Kaiying Network for the first half of 2025 shows a decline in game operation revenue, but overall revenue remains stable due to growth in platform services, with a net profit increase of 17.41% compared to the previous year [1][2]. Financial Performance - For the period from January to June 2025, Kaiying Network achieved an operating revenue of 2.578 billion yuan, which is essentially flat compared to the previous year, with a net profit attributable to shareholders of 950 million yuan, reflecting a year-on-year growth of 17.41% [2][3]. - The net profit excluding non-recurring gains and losses was 938 million yuan, up 17.18% year-on-year [2][3]. - The net cash flow from operating activities was 736 million yuan, down 20.28% year-on-year [2][3]. - The basic and diluted earnings per share were both 0.45 yuan, an increase of 18.42% [3]. Revenue Breakdown - The mobile game segment generated 1.883 billion yuan, accounting for 73.03% of total revenue, but saw a decline of 10.14% year-on-year [6][7]. - The information services segment reported revenue of 657 million yuan, a significant increase of 63.33%, making up 25.47% of total revenue [6][7]. - The web game segment earned 39 million yuan, down 38.41% year-on-year, representing 1.50% of total revenue [6][7]. Product Launches and Innovations - In the first half of 2025, Kaiying Network launched several successful products, including "Dragon Valley World" and "Digimon: Source Code," which achieved top rankings in app stores [6]. - The company is integrating AI technology into game development, with a new tool called "SOON" that can generate complete games from simple prompts, significantly reducing development time [9]. International Expansion - The overseas revenue reached 202 million yuan, marking a year-on-year growth of 59.57%, driven by successful products in international markets [7]. Stock Buyback Plan - Kaiying Network announced a plan to repurchase shares with a total fund not exceeding 200 million yuan, aiming to buy back approximately 681,900 shares at a maximum price of 29.33 yuan per share [12][14].

Core Insights - The gaming industry is experiencing a recovery, with a reported revenue of 168 billion yuan in the first half of the year, marking a 14.08% year-on-year increase [1] - Many gaming companies are accelerating their transformation towards AI, cloud computing, and other sectors despite the industry's overall positive performance [1][4] Industry Performance - The domestic gaming user base reached 679 million, a historical high, with a 0.72% year-on-year growth [1] - Several gaming stocks have seen significant price increases, with companies like ST Huatuo and Giant Network experiencing over 100% growth in the past year [1] - Notable profit increases were reported by companies such as Zhejiang Shuju, Youzu Network, and Shengtian Network, with profit growth rates of 156.26%, 989.31%, and 1186.02% respectively [1][2] Company Financials - 37 Interactive Entertainment reported a revenue of 8.486 billion yuan, down 8.08%, but a net profit increase of 10.72% [2] - Kunlun Wanwei's revenue was 3.733 billion yuan, with a 49.23% increase, but a net loss of 856 million yuan, a 119.86% decline [2][10] - Perfect World achieved a revenue of 2.906 billion yuan, with a 9.67% increase and a net profit of 503 million yuan, marking a return to profitability [2] Market Trends - The overseas market for gaming is becoming increasingly challenging, with rising quality demands and higher customer acquisition costs [4][5] - The installation of casual and hyper-casual games by Chinese manufacturers in overseas markets grew by 159% and 48% respectively, while mid-core game installations fell by 43% [5] - Companies like Century Huatong have seen significant success with their overseas titles, contributing to a stock price increase of over 300% [4] Technological Transformation - Many gaming companies are investing in AI and cloud computing technologies, aiming to enhance operational efficiency [6][8] - Companies like Kunlun Wanwei and Zhongqingbao are shifting their focus from gaming to AI and cloud computing, with significant investments in these areas [8][9] - Despite high revenues, companies like Kunlun Wanwei are facing net losses, indicating the challenges of transitioning to tech-driven business models [9][10] New Business Directions - Companies are exploring new revenue streams, such as short dramas and IP development, to diversify their income sources [11][12] - Kunlun Wanwei's short drama platform, DramaWave, has achieved significant success, contributing 583 million yuan in revenue [11] - Perfect World is expanding its short drama offerings, while Jibite is focusing on IP development across various media formats [12][13] Conclusion - The gaming industry is on an upward trajectory, with companies actively pursuing technological upgrades and diversification strategies to secure future growth [14]

Core Viewpoint - The company has rebranded from Zhongxu Future to Tanwan, with a focus on revitalizing its gaming business and expanding into new markets, despite facing revenue declines and profitability challenges [3][9]. Group 1: Company Overview - Tanwan's stock will change to "Tanwan" starting September 2, following its successful listing in Hong Kong in September 2023, where the stock price rose from HKD 14 to a peak of HKD 72.45 by January 2024 [3]. - The company reported a revenue increase from CNY 2.872 billion in 2020 to CNY 8.817 billion in 2022, but has since experienced a decline, with projected revenue dropping to CNY 5.58 billion in 2024 [3]. Group 2: Financial Performance - In the latest financial report, Tanwan achieved revenue of approximately CNY 2 billion, a year-on-year decrease of 37.9% [4]. - The self-operated game products generated CNY 1.39 billion, down 44.1%, while the revenue from the cooperative operation model was CNY 565 million, a decrease of 15.5% [4]. - The company turned a profit of approximately CNY 650 million in the first half of the year, compared to a loss of CNY 385 million in the same period the previous year [5]. Group 3: Profitability and Margins - Despite the profit turnaround, Tanwan's gross profit decreased to CNY 1.21 billion, a decline of 48.7% year-on-year, resulting in a gross margin of 60.5%, down 12.8 percentage points [6]. Group 4: Market Expansion - The share of overseas revenue increased to 15.6%, with overseas game business revenue reaching CNY 313.5 million, a 9.2% increase from the previous year [7]. - The company has successfully launched over 30 multilingual games in various international markets and has a pipeline of more than ten overseas games [7]. Group 5: Future Strategies - Tanwan is actively developing new games, including adaptations of popular IPs and small program games, which are seen as key to future growth [8]. - The company aims to leverage its experience in game promotion and operation to innovate and adapt classic IPs for new platforms [8].