Group 1 - A new civil lawsuit has been filed by miHoYo against Tencent, which will be heard on September 5 in Shenzhen, attracting significant attention [1] - Tencent QQ stated that the lawsuit is related to miHoYo's need to obtain relevant QQ user data, emphasizing that user privacy laws prevent them from providing such data without formal judicial procedures [1] - miHoYo's legal department announced progress in combating game content leaks, indicating that individuals involved in leaking unreleased game content for titles like "Genshin Impact" and "Honkai: Star Rail" have faced criminal measures and court injunctions [1] Group 2 - miHoYo's lawsuit mentions the "QQ Channel," specifically highlighting that an operator named Yang has been distributing unreleased software test packages and tutorials for "Honkai: Star Rail" and "Zero Zone" within the community [2] - The QQ Channel, which began internal testing in November 2021, is described by Tencent as a new way for entertainment collaboration, allowing users to connect with like-minded individuals [4] - The "Coffee Forest" channel mentioned by miHoYo has 1,247 members, indicating a significant user base involved in the distribution of unreleased game content [4]

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]