Summary of Conference Call Records Industry Overview - The gaming sector experienced significant growth following the release of game licenses in June and strong summer performance, but expectations for Q3 performance have diverged, leading to adjustments post-holiday. The current sector valuation is at 15 times next year's earnings, with potential for a valuation switch by year-end, where leading companies may reach valuations of 25 times [1][3] - The AI video generation field has made progress, particularly with Sovit's updates, enhancing film production efficiency and restructuring the film industry process. This technology is changing how users generate and consume video content on the consumer side and expanding film production capabilities on the business side [1][4] Key Points on Gaming Industry - Q3 performance was best in the gaming industry, while the film industry showed lackluster results. The box office for September increased year-on-year, but the National Day holiday box office declined [1][5] - The gaming sector's long-term direction focuses on sustainability and globalization, with an emphasis on companies with stable revenue and profit support. Q3 earnings reports are a core focus, particularly the continuity of existing products and the progress of new ones [2][15] - Companies like Century Huatong, NetEase, and others are favored for their long-lasting products and clear product lines [3][15] AI Video Generation Developments - Significant advancements in AI video generation tools have been noted, particularly with Sovit's updates, which enhance production efficiency and may lead to commercialized film series. The tools are transforming user-generated content and expanding production capabilities [4][17] - The introduction of the Sora APP has upgraded social interaction from traditional text and image formats to immersive experiences, allowing users to create high-fidelity digital avatars for cross-scenario interactions [18] Performance Insights - The third quarter saw an increase in the number of domestic dramas, but the effective viewership of the top 20 long dramas decreased by about 10% year-on-year, while variety shows saw a 30% increase in viewership [7][8][9] - Major platforms like iQIYI and Mango TV are expected to report Q3 earnings soon, with iQIYI benefiting from exclusive dramas and Mango TV facing challenges due to a lack of key variety shows [13][14] Regulatory Impact - The new regulations from the National Radio and Television Administration (NRTA) have positively influenced the industry by supporting content innovation and increasing the number of registered productions [10][11] Future Trends and Recommendations - The long video industry will continue to focus on content innovation, with policies providing a supportive environment. Short-term improvements are expected from the release of backlog dramas and shortened review cycles [11] - Companies to watch include those with multi-modal models and strong platforms, such as Kuaishou, and those with high-quality vertical models in AI drama, advertising, and gaming [21]

Core Insights - The competition among long video platforms in China is shifting from online metrics like content scale and membership numbers to offline experiences as of 2024-2025 [1][5] - A new focus is emerging on transforming "watching content" into "experiencing IP" and "exploring scenes," with iQIYI leading the charge into offline entertainment spaces [3][5] Industry Trends - iQIYI announced its entry into "offline parks and content e-commerce" in April 2025, with projects in Yangzhou, Kaifeng, and Beijing [3][6] - The shift to offline is seen as a way to rebuild user relationships and extend content lifecycles, moving from "content is king" to "experience is king" [5][6] iQIYI's Strategy - iQIYI is the first player to systematically plan for "parkification," with a focus on smaller, modular entertainment spaces that can quickly adapt content [6][8] - The design of iQIYI's parks emphasizes immersive experiences, rapid content iteration, and diverse revenue streams, including ticket sales and secondary consumption [8][10] Competitive Landscape - Other platforms like Tencent Video and Youku are exploring different strategies, such as event-based operations and cultural tourism collaborations, while observing iQIYI's progress [20][22] - The industry consensus is that offline experiences are becoming integral to platform strategies, moving beyond mere extensions of online content [24][25] Future Considerations - The success of offline parks will depend on factors like location, audience targeting, content density, and financial sustainability [14][19] - The long video industry is at a crossroads, where the relationship with users is evolving from "content supply" to "experience touchpoints" and "diverse monetization" [24][27]

Investment Rating - The industry investment rating is "Overweight" indicating a positive outlook for the sector compared to the overall market performance [10]. Core Insights - The report highlights the rising trend of "small happiness" self-consumption as a relative safe haven amid increasing risk aversion, with specific companies like Pop Mart and Damai Entertainment showing strong growth potential through innovative product offerings and expansion strategies [3][5]. - The gaming sector is experiencing significant adjustments, with major companies like Tencent and Century Huatong expected to maintain strong performance despite market volatility, while the AI video segment is emerging as a key area for growth [3][5]. Summary by Relevant Sections Consumer Sector - Pop Mart is ramping up production capacity and expanding product categories, with successful new IP launches and international expansion, achieving rapid sales growth during peak seasons [3]. - Damai Entertainment's core IP Chiikawa has seen high demand in mainland China, indicating strong market interest and potential for future growth [3]. Gaming Sector - Tencent Holdings is projected to have a market cap of 50,823 million RMB with a revenue growth of 13% year-on-year, while its PE ratio is expected to be 20 for 2025 [5]. - Century Huatong is also highlighted with a projected revenue increase of 21% year-on-year, indicating a positive outlook for its gaming products [5]. Cloud Computing and Entertainment - Alibaba's cloud computing segment is expected to grow at a rate of 11% year-on-year, with a market cap of 26,914 million RMB [5]. - Mango TV is anticipated to see a turnaround in its operations, benefiting from favorable policy changes in the long video sector [3]. AI and Technology - The report emphasizes the importance of AI in video production, with companies like Bilibili and Kuaishou positioned to leverage AI advancements for monetization [3]. - The technology sector has faced a 14% adjustment since October 2, but the report suggests that the fundamentals remain strong, driven by advancements in domestic models and chips [3].

Investment Rating - The report maintains a positive outlook on the internet media industry, indicating an "Overweight" investment rating [2]. Core Insights - The report highlights the rising risk aversion and the relative benefits of self-indulgent consumption, particularly in the context of the internet media sector [2]. - Key companies such as Pop Mart, Damai Entertainment, and Mango TV are identified as having strong growth potential due to innovative product offerings and market expansion strategies [2]. - The gaming sector is experiencing significant adjustments, but the fundamentals remain strong, with major companies like Tencent and Century Huatong showing resilience [2]. - The report emphasizes the importance of AI in video content creation and identifies key players in this space, such as Bilibili and Kuaishou, as potential investment opportunities [2]. Summary by Sections Consumer Trends - The report notes that Pop Mart is ramping up production capacity and expanding its product categories, with the new IP "Starry People" expected to drive future growth [2]. - Damai Entertainment's core IP "Chiikawa" has seen high demand in mainland China, indicating strong market interest [2]. - Mango TV is positioned to benefit from favorable policy changes in the long video sector, with expectations for improved operational performance [2]. Gaming Sector - The gaming sector is undergoing significant adjustments, with concerns over short-term impacts from tariffs and market volatility [2]. - Despite these challenges, the report suggests that the fundamentals of major gaming companies remain intact, with Tencent's daily active users reaching 30 million [2]. - The report recommends several gaming stocks, including Tencent, Century Huatong, and Giant Network, highlighting their strong market positions [2]. AI and Technology - The launch of Sora 2 by OpenAI is noted as a significant development in AI video technology, with implications for monetization strategies [2]. - Companies like Bilibili and Meitu are highlighted for their potential in AI-driven content creation and advertising [2]. - The report suggests that advancements in domestic AI models and chips provide a strong foundation for future growth in the tech sector [2].

Core Insights - The ratio of small screen to large screen usage has reached 1:1, indicating a significant presence of large screen users in the entertainment landscape [1] - Despite the perception that television is declining, data shows that large screen viewing is thriving, with platforms like iQIYI and Youku reporting substantial increases in viewing time on large screens [1][3] - The Chinese smart large screen market is expanding, with nearly 1 billion people covered and a steady annual growth rate [1][4] User Demographics - The total number of television users in China remains the highest among all viewing populations, with 1.197 billion television users compared to 1.108 billion internet users [4][7] - Smart TV users are projected to exceed 1 billion by the end of 2025, with a 25% growth rate over the past five years [4][7] - The user base for large screens is diverse, including couples, single young adults, families with children, and older adults, each with distinct viewing preferences [8][10] Viewing Behavior - Large screen users are primarily engaged in watching long-form content, with a significant portion of viewing time dedicated to dramas and movies [12][13] - The viewing habits of different demographics show a preference for quality long content, with single young adults and families particularly active during prime viewing hours [10][11] - The demand for long-form content on large screens remains strong, despite the rise of short video formats [11][15] Market Trends - The sales of smart TVs are on the rise, with an expected increase of 23.59 million units in 2024, driven by government subsidies and consumer demand [7][20] - The content landscape is shifting, with a growing emphasis on high-quality long-form content as the primary draw for large screen users [18][22] - Platforms are adapting to the large screen environment, with strategies that include offering exclusive content and enhancing user experience [20][22] Industry Implications - The resurgence of large screens as a viable platform for long-form content suggests a potential shift in content strategy for streaming services [19][23] - The integration of short-form content into large screen viewing is being explored, but long-form content remains the dominant format [11][15] - The industry must address the operational challenges of large screen platforms to fully capitalize on the growing user base and viewing habits [22][24]

Core Viewpoint - The long video industry in China is experiencing stagnant growth, with a user scale increase of only 0.7% in the first half of 2025, indicating a need for content innovation, technological upgrades, and cross-scenario integration to drive future growth [1] Group 1: Industry Trends - The long video industry is facing intense competition, prompting platforms to focus on IP derivatives, micro-short dramas, and content refinement as key strategies to address challenges [1][2] - The trend of shifting from long dramas to shorter formats and the emphasis on content quality are becoming increasingly significant in the industry [4][5] Group 2: Company Developments - iQIYI's CEO announced that offline business, including theme parks and IP derivatives, will be a core focus for the company moving forward, with plans for new parks in Yangzhou and Kaifeng, and a third park in Beijing [2] - iQIYI is actively developing IP derivatives, with significant sales figures reported, such as over 50,000 units sold for a handbag related to the drama "I Love You" within a month [2][3] - The company is leveraging technology and partnerships to enhance the development of IP derivatives, including the use of AI and digital scanning to preserve assets for future derivative creation [3] Group 3: Collaboration Models - iQIYI has introduced a "shared benefits" model for content collaboration, where it invests fully in projects and shares profits equally with partners, aiming for greater future returns [5] - Tencent Video is also adopting a "post-verification incentive" model, which encourages production partners to focus on content quality and share in the profits based on performance [5]

Core Insights - The core message conveyed by iQIYI's founder, Gong Yu, emphasizes a rational yet optimistic approach to the integration of AI in the film and television industry, highlighting the potential for AI to enhance rather than replace existing processes [2][3] Group 1: AI Integration in the Industry - AI is expected to disrupt both long and short video formats, but this disruption will focus on enhancing the industry rather than complete replacement [2] - iQIYI's strategy involves avoiding broad R&D traps and instead tailoring AI to meet specific business needs, such as improving advertising effectiveness by 30% and significantly reducing design workload [3] - The "Baudry-iQIYI AI Theater" initiative aims to gather global creators' AI film story ideas, with selected teams receiving support and guidance, leading to potential releases as early as Q1 2026 [3] Group 2: Human-AI Collaboration - The approach to AI development at iQIYI prioritizes human collaboration, with AI designed to alleviate repetitive tasks, allowing creators to focus on unique ideas [4] - AI is positioned as an "experience optimizer" in user interactions, enhancing viewing experiences without compromising emotional value [4] - Gong Yu acknowledges the rapid evolution of AI technology, comparing its current state to that of a graduate student, while emphasizing that no AI model can fully replace human creativity [3][4] Group 3: Market Position and Competitive Landscape - As of July 2025, iQIYI has 358 million monthly active users, closely trailing Tencent Video's 365 million, indicating a competitive landscape among leading platforms [5] - The industry is witnessing a shift towards practical AI applications, with a focus on solutions that can be effectively implemented rather than theoretical models [5]

Group 1: Currency and Economic Outlook - Barclays reports that despite recent negative events, the US dollar has remained resilient, with no significant decline observed since May, even amid weak economic data and challenges to the Federal Reserve's credibility [1] - Goldman Sachs predicts that the US economy will recover in the coming months, which may support the dollar's continued strength [1] Group 2: Oil and Emerging Markets - Goldman Sachs states that a complete ban on Russian oil imports by the EU is unlikely due to reliance from certain member states like Hungary and Slovakia, and any potential ban would only redistribute oil flows rather than reduce global supply [2] - Goldman Sachs expects emerging market stocks and currencies to rise by the end of the year, raising the MSCI Emerging Markets Index target from 1,370 to 1,480 points, indicating a potential 10% upside [2] Group 3: Domestic Market Insights - Dongfang Jincheng forecasts stable and ample market liquidity by year-end, with potential for a new round of reserve requirement ratio cuts and government bond purchases [4] - CITIC Securities highlights the long video industry benefiting from favorable policies, which may enhance production capacity and efficiency for content creators [6][10] - CITIC Securities notes a recovery in the restaurant industry, with August seeing a year-on-year increase in dining revenue, suggesting structural opportunities for leading companies with strong compliance and quality [8] Group 4: Sector-Specific Developments - CITIC Securities indicates that the carbon fiber industry is in a recovery phase, with strong demand in wind energy and aerospace sectors, recommending attention to high-quality companies with international exposure [9] - China Galaxy Securities observes a slight increase in cement prices due to seasonal demand, with expectations for further price support from rising coal prices [11][12] - China Galaxy Securities also reports positive signals in panel procurement ahead of the overseas promotional season, indicating a potential peak in TV demand [13] Group 5: Electronic Materials - Huatai Securities emphasizes the importance of electronic cloth in the PCB-CCL supply chain, predicting a supply shortage for various specialty electronic cloth products until 2026, and recommends companies with rapid capacity expansion [14][15]

近日，国家广播电视总局印发实施《进一步丰富电视大屏内容促进广电视听内容供给的若干举措》。 《若干举措》强调，要多措并举加强内容建设，增加优质广电视听内容供给。实施"内容焕新计划"，加 强内容创新；改进电视剧集数和季播剧播出间隔时长等管理政策；改进电视剧内容审查工作，优化机 制、提高效率；加强超高清节目制作播出宣传推介；加强纪录片、动画片精品创作；鼓励支持优秀微短 剧进入电视播出；推动优秀境外节目引进播出等。同时，加强相关法律法规制度建设，加强节目版权保 护。 中信证券指出，对比先前行业存在的各种约束政策，《进一步丰富电视大屏内容促进广电视听内容供给 的若干举措》为行业2010年以来首次在包括内容题材、审核效率、海外内容引进、商业化空间提升等方 面上的全面政策调整。 该机构表示，通过复盘2010年以来影视剧行业面临政策以及其对于行业内上游内容制作公司、下游平台 的业绩影响，广电总局《若干举措》涉及多方面，后续有望陆续落地配套政策，推动长视频平台及优质 内容制作公司提高内容周转效率和投资效率、提升单剧和剧集IP商业化空间带来的业绩改善和增长潜 力。推荐有望受益于后续政策的影视剧平台公司。 ...

Core Insights - The report by iResearch indicates that Youku's user growth in the first half of 2025 significantly outpaced the overall long video industry, achieving an 8-fold increase compared to the industry's growth rate, driven by popular dramas like "The Hidden Sea" and "In the Name of Law" [1][2] Group 1: User Growth and Content Strategy - Youku's user base grew from 270 million to 280 million, marking a 6% increase, while the overall long video sector saw only a 0.7% growth [1] - The growth is attributed to a diverse content strategy that includes genres such as historical, suspense, and urban dramas, aiming to cater to various audience preferences [1][2] Group 2: Impact of Quality Content - High-quality dramas like "The Hidden Sea" have a broad appeal, reaching audiences beyond just fan bases, thus becoming significant commercial successes [2] - Youku dominated the summer viewing season, securing the top two spots in total views across platforms, with "The Hidden Sea" and "In the Name of Law" each surpassing 1.3 billion views and achieving over 40% market share [2] Group 3: Competitive Landscape - The long video industry is entering a low-growth phase, making the impact of premium content increasingly vital for user engagement and retention [2] - Youku's strategy of increasing its self-produced content has transitioned from exploration to refinement, with a high exclusivity rate of 87.5% for its original content from January to July 2025, the highest among major long video platforms [2]