Group 1 - The company, Boyaa Interactive (00434.HK), announced that it will hold a board meeting on November 17, 2025, to approve the unaudited third quarter consolidated results for the three and nine months ended September 30, 2025 [1]

Core Viewpoint - The article discusses the recent trend of OPPO channel servers for multiple NetEase games being shut down, attributed to NetEase's operational strategy adjustments, reflecting a broader shift in the gaming industry regarding distribution channels and revenue sharing [3][4][5]. Group 1: Game Shutdowns - Several NetEase games have announced the cessation of operations on OPPO's platform, including titles like "逆水寒" and "实况足球," with the trend starting from last year and continuing into 2025 [4][5]. - The shutdowns are part of a larger pattern where both mid-sized and major titles are exiting OPPO, indicating a significant shift in the gaming landscape [4][5]. Group 2: Industry Trends - Industry analysts suggest that the era of channels demanding high fees is coming to an end, as game developers are increasingly opting to withdraw from Android channels due to unfavorable revenue-sharing agreements [5][6]. - The "hardcore alliance" formed by major companies like Tencent has led to speculation about revenue-sharing disputes, with developers seeking more favorable terms [5][6]. Group 3: Changing Distribution Dynamics - The reliance on app stores for user acquisition is diminishing, as game quality has improved, allowing developers to attract users through direct downloads rather than through channels [6]. - Major companies like NetEase and Tencent are confident in their game appeal, allowing them to withdraw from channel servers without fearing significant user loss, potentially even using the shutdowns to attract users back to official servers [6].

Investment Rating - The report indicates a positive investment outlook for the gaming sector, highlighting its strong performance compared to other sub-industries within the media sector [3][4]. Core Insights - The A-share media sector reported an 8.2% year-on-year revenue growth and a 59.8% increase in net profit attributable to shareholders in Q3 2025, with significant differentiation among sub-industries [3][4]. - The gaming industry showed remarkable growth, with a 28.6% year-on-year revenue increase, marking six consecutive quarters of accelerating revenue growth and achieving a profit margin of 19.0%, the highest quarterly level since 2022 [3][4]. - The external environment for gaming continues to improve, with an increase in the average monthly number of domestic game approvals and relaxed third-party payment policies from platforms like Google and Apple, which are expected to enhance channel cost efficiency [3][6][10]. - The advertising sector, particularly focusing on Focus Media, has seen substantial growth in internet advertising spending, leading to improved profit margins and a return to historical highs in gross margins [3][4]. - The publishing sector has shown mixed results, with some state-owned publishing groups experiencing significant profit growth while others face challenges due to changes in educational material subscription methods [3][4]. Summary by Sections Gaming Sector - The gaming sector's revenue in Q3 2025 grew by 28.6% year-on-year, with a profit margin of 19.0%, the best performance since 2022 [3][4]. - Domestic PC game sales increased by 20% year-on-year, driven by titles like "Dream" and "Delta" [11]. - Key companies to watch include ST Huatuo, Giant Network, and Jiubite, which have shown significant growth [3][4][19]. Advertising Sector - Focus Media has optimized its cost structure, leading to a gross margin that has reached historical highs [3][4]. - Future observations will focus on the elasticity of internet advertising spending and the impact of new partnerships and acquisitions [3][4]. Publishing Sector - The performance of state-owned publishing groups varies, with some recovering from previous declines while others continue to face challenges [3][4]. - The overall trend indicates a need for adaptation to changing market conditions and consumer demands [3][4]. Long Video Sector - Mango TV is at a critical juncture, with expectations for operational improvements as policy support strengthens [3][4]. - The focus will be on innovative IP operations and product cycles in the coming years [3][4].

Core Viewpoint - The era of channel-based revenue collection is coming to an end, as major game developers like NetEase are increasingly withdrawing their games from OPPO's channel services due to operational strategy adjustments and high revenue-sharing costs [1][4][5]. Group 1: Game Industry Trends - Multiple NetEase games have announced the cessation of their OPPO channel services, including popular titles like "Onmyoji: Yokai House" and "Reverse Water Cold," indicating a broader trend in the gaming industry [1][3]. - Analysts suggest that the withdrawal from channel services is driven by the rising costs associated with Android channels, which have become unsustainable for game developers [3][4]. - The gaming industry is witnessing a shift where developers are moving away from reliance on app store channels for user acquisition, as the contribution of these channels to new user growth diminishes while revenue-sharing ratios remain high [4][5]. Group 2: Developer Strategies - Game developers, including NetEase and Tencent, are confident in their games' appeal and are willing to withdraw from channel services, believing it will not significantly impact user retention [5]. - The trend of high-quality games attracting users through direct downloads rather than through channels is becoming more prevalent, allowing developers to bypass traditional revenue-sharing models [5]. - The "hardcore alliance" formed by major companies like Tencent has led to significant changes in how games are distributed on Android platforms, with developers seeking more favorable terms [4].

Market Overview - The A-share market saw all three major indices rise today, with the Shanghai Composite Index up 0.23% closing at 3969.25 points, the Shenzhen Component Index up 0.37% at 13223.56 points, and the ChiNext Index up 1.03% at 3166.23 points. The total trading volume in the Shanghai and Shenzhen markets was 1.8723 trillion yuan, a decrease of 43.4 billion yuan compared to the previous day [3]. Market Sentiment - The current market sentiment is under scrutiny, with discussions on whether the bulls or bears are "crazy." Notably, Michael Burry, a well-known short-seller, has begun shorting Nvidia and Palantir, causing significant concern on Wall Street. His previous successful prediction of the 2008 financial crisis adds weight to his current actions, which have led to a notable decline in major U.S. indices, including a 2% drop in the Nasdaq [4][5]. A-share Market Reaction - The A-share market opened significantly lower, with the Shanghai Composite Index down nearly 1% and the Shenzhen Component Index down about 1.5%. However, a typical market behavior of "low open, high rise" was observed as main funds initiated self-rescue efforts, leading to a recovery [5][6]. Sector Performance - The performance of sectors today showed a clear divide, with TMT (Technology, Media, and Telecommunications) sectors, including software development, semiconductors, and internet services, experiencing declines. Conversely, energy sectors such as wind, water, electricity, coal, and oil saw strong performance. This indicates a demand for recovery in previously lagging sectors while retaining some bullish sentiment [7]. Technology Sector Concerns - The technology sector is currently under pressure, with concerns about the commercial viability of the artificial intelligence industry, particularly in the consumer market. The lack of clear profit models and the high capital expenditure in areas like data centers are seen as potential risks. The Nasdaq's recent performance, having adjusted for five consecutive trading days, suggests that the technology sector may need to consolidate [8][9].

Group 1: Company Strategy and Future Plans - The company is focused on global expansion, particularly in mature markets like Japan, South Korea, and Southeast Asia, while not completely excluding the domestic market [2] - The establishment of the subsidiary Talys in May 2025 aims to enhance the robotics ecosystem by integrating upstream core components with downstream applications [5][6] - The company is actively exploring micro-motors for robotics applications, with ongoing product development and testing [5][6] Group 2: Financial and Market Performance - The company emphasizes the importance of market value management and shareholder returns, focusing on stability in its main operations to navigate market fluctuations [6] - The new game "ATHENA: Blood Twins" has received positive feedback, achieving top rankings in free charts across multiple regions upon launch [4] - The Thai manufacturing base for digital conveyor belts has officially commenced production, with a target output of 10 million square meters annually [5] Group 3: Investor Relations and Risk Management - The company has reiterated that any acquisition or restructuring plans will be disclosed in accordance with regulatory requirements, urging investors to remain aware of investment risks [1][3] - The company is cautious about revealing specific financial details related to contracts due to confidentiality agreements [2] - Ongoing developments in the robotics sector are subject to uncertainties, and the company advises investors to stay informed through official communications [3][5]

Core Insights - Saudi Arabia has significantly invested in the gaming industry, with over $70 billion spent in the past five years, indicating a strong commitment to becoming a major player in the global gaming market [3][5][12] - The acquisition of Electronic Arts (EA) by a Saudi investment consortium marks a pivotal moment in the country's gaming ambitions, as it seeks to expand its influence and cultural output through gaming [1][14] - The Saudi Public Investment Fund (PIF) has established a dedicated gaming subsidiary, Savvy Games Group (SGG), with an initial capital reserve of approximately $38 billion, focusing on global gaming investments and acquisitions [9][12] Investment and Acquisition Strategy - In 2020, Saudi Arabia began its aggressive investment strategy in gaming, highlighted by the acquisition of a 51% stake in SNK, a prominent game developer [8][9] - SGG has made substantial investments in various gaming companies, including a $30 billion acquisition of a 5.01% stake in Nintendo, positioning itself as a significant player in the gaming industry [9][10] - The recent acquisition of EA, along with investments in companies like Scopely and partnerships with major gaming firms, showcases Saudi Arabia's ambition to dominate the gaming landscape [14][26] Cultural and Economic Impact - The Gamers8 esports event in Riyadh, with a prize pool of $45 million, reflects Saudi Arabia's growing influence in the esports sector, surpassing traditional gaming events like the League of Legends World Championship [12][14] - The gaming market in Saudi Arabia is projected to generate approximately $1.19 billion in revenue in 2024, with expectations to grow to $1.64 billion by 2028, indicating a robust growth trajectory [18][19] - The region's gaming players exhibit high spending potential, with an average payment capability of $46, aligning with the global trend of increasing gaming consumption [18][30] Future Prospects and Challenges - Saudi Arabia aims to attract global gaming talent and companies, offering incentives for developers to establish operations in the country, which could enhance its gaming ecosystem [21][22] - Despite significant financial investments, the challenge remains for Saudi Arabia to cultivate original game development and creativity, as it currently lacks influential homegrown titles [25][30] - The ongoing global trend of layoffs in the gaming industry presents an opportunity for Saudi Arabia to recruit talent and enhance its gaming capabilities [19][31]

Group 1 - The gaming sector experienced fluctuations with the gaming ETF dropping over 1.5%, while stocks like Perfect World and Kingsoft Network saw significant declines [1] - As of November 4, the gaming ETF had a net inflow of 1.842 billion yuan over the past 20 trading days, indicating strong investor interest, with a total product size of 11.291 billion yuan [1] - In Q3 2025, the media sector achieved a total revenue of 127.9 billion yuan, a year-on-year increase of 7%, with the gaming sector showing remarkable performance driven by blockbuster products [1] Group 2 - The domestic gaming market's actual sales revenue in Q3 2025 was 88.03 billion yuan, reflecting a year-on-year decrease of 4.1% but a quarter-on-quarter increase of 7.0% [2] - A-share gaming companies reported a total net profit of 5.59 billion yuan in Q3 2025, marking a year-on-year increase of 76% and a quarter-on-quarter increase of 20% [2] - The gaming sector is expected to benefit from a new game cycle and AI-driven valuation boosts, with the gaming ETF tracking the performance of A-share listed companies in the animation and gaming industry [2]

Core Viewpoint - Perfect World (002624.SZ) reported a closing price of 16.42 yuan, with a decline of 6.01% [1] Group 1: Company Performance - A brokerage firm released a report predicting that Perfect World's net profit attributable to shareholders will reach 770 million yuan in 2025 and 1.51 billion yuan in 2026 [1] - The report indicates that the price-to-earnings (PE) ratios for 2025 and 2026 are projected to be 43.4 times and 22.0 times, respectively [1] - The brokerage maintains a "buy" rating for the company [1]

Core Viewpoint - A game company, Quanzhou Yanqu Network Technology Co., Ltd., acquired the R&F Wanda Hotel in Quanzhou for 331 million yuan, which is 70% of its assessed value of 473 million yuan [1][2] Group 1: Acquisition Details - The hotel has a land area of 183,376.6 square meters and a building area of 47,767.47 square meters, with a planned use for hotel and actual use for commercial, office, and guest rooms [1] - The hotel was auctioned by the Intermediate People's Court of Guangzhou through JD's judicial auction platform [1] - The acquisition price of 331 million yuan is significantly lower than the market reference price of 473 million yuan [1][2] Group 2: Company Background - Quanzhou Yanqu Network Technology Co., Ltd. was established in February 2025 with a registered capital of 1 million yuan, primarily engaged in software and information technology services [1] - The company is controlled by Xiamen Luqu Consulting Management Co., Ltd., which is a wholly-owned subsidiary of Xiamen Yanqu Network Technology Co., Ltd. [1] Group 3: Future Plans - Yanqu Network plans to build a global headquarters building on a recently acquired land parcel in Xiamen, with a total investment of 150 million yuan, expected to start construction in March 2024 and complete by March 2029 [2] - The company has released several games, including "Call Me the Grandmaster" and "Seeking the Dao of the Universe," with more titles planned for future release [2] Group 4: Industry Context - The R&F Wanda Hotel was originally part of Wanda Group and was taken over by R&F Properties in 2017, following a significant acquisition of hotel assets [4] - R&F Properties has faced financial difficulties, leading to the sale of multiple hotel assets since 2022, including properties in major cities like Guangzhou and Beijing [4][5] - As of the end of 2024, R&F Properties' hotel count has decreased significantly to 22, following asset management changes [5]