Investment Rating - The industry rating is "Recommended" [4] Core Insights & Investment Recommendations - Unity and Epic Games announced a strategic partnership to create an open and interoperable ecosystem for game engines, allowing developers to publish Unity games on the Fortnite platform with over 500 million registered accounts, enhancing user reach and commercialization efficiency [2][21] - NVIDIA's quarterly performance exceeded expectations, with data center revenue growing by 289% year-on-year, reflecting strong demand for AI infrastructure [3][22] - The report suggests focusing on investment opportunities in leading internet companies in Hong Kong, the gaming industry, and the film and cultural tourism sectors, driven by consumption policies and technological empowerment [3][22] Sub-industry Data Film Industry - The top three films by box office this week are "Demon Slayer: Infinity Castle" with 134.67 million yuan (42.9% market share), "Wild Era" with 75.67 million yuan (24.1%), and "Now You See Me 3" with 55.44 million yuan (17.7%) [23][24] Gaming Industry - The top three iOS games by revenue are "Teamfight Tactics," "Dungeon & Fighter: Origin," and "Honor of Kings," while the top three Android games are "Heart Town," "Sword and Magic Legend," and "My Leisure Time" [25] TV Series Industry - The top three TV series by broadcasting index are "Tang Dynasty Ghost Stories: Chang'an," "Four Happiness," and "Phoenix Platform," with indices of 85.5, 82.4, and 81.8 respectively [26][27] Variety Shows & Animation - The top variety show is "Now Departing Season 3" with a broadcasting index of 82.4, followed by "Wonderful Night Season 2" and "Flowers and Youth Together" [28][29] - The top three animated shows by viewership index are "Xian Ni" with 212.8, "Happy Hammer" with 191.6, and "Swallowing the Starry Sky" with 187.2 [30]

苹果15%抽成新规带来的是喜还是忧？ 从表面看，15%的抽成比例较此前降低一半，对长期承受高比例分成压力的游戏开发者而言，似乎是实 打实的福利。但深入拆解政策便会发现，苹果的这一动作，本质上是在用让利换取控制权。 对于这一新规，国内游戏企业又如何看待？ 游戏厂商和渠道之间的博弈再次迎来重大节点。 11月14日，苹果官网一则公告激起千层浪。苹果正式推出"小程序合作伙伴计划"（Mini Apps Partner Program），对符合条件的小程序内交易仅抽取15%佣金。经过长时间的博弈拉锯，苹果与腾讯终于就 微信小程序的"苹果税"达成一致。 表面看来，这无疑是给开发者送上一份"甜蜜大礼"。但细究规则便会发现，这份"礼物"暗藏玄机。苹果 方面表示，开发者若想享受优惠，前提是必须在应用开发过程中深度集成苹果官方提供的软件技术。例 如，使用苹果系统记录用户购买历史、验证用户年龄，以及通过苹果官方渠道处理应用内支付。 无疑，苹果此举暗藏生态整合的野心，影响深远且复杂。小程序生态或将迎来新的发展机遇，但游戏厂 商与渠道平台的博弈也将进入新阶段。尤其在用户数据、支付等核心环节，游戏公司将如何平衡苹果生 态的"甜蜜与枷锁"？ ...

Core Viewpoint - The recent trend of multiple NetEase games ceasing operations on OPPO's platform reflects a broader shift in the gaming industry, driven by high channel fees and changing market dynamics [2][3][4]. Group 1: Game Cessation on OPPO - Several NetEase games, including "逆水寒" (Nirvana in Fire), have stopped operations on OPPO's platform due to "operational strategy adjustments" by NetEase [2][3]. - This trend is not new; multiple titles have previously announced their exit from OPPO, including "阴阳师：妖怪屋" (Onmyoji: Yokai House) and "梦幻西游" (Fantasy Westward Journey) [3][4]. - Analysts suggest that more prominent titles from NetEase may also follow suit, indicating a significant shift in the gaming landscape [3][4]. Group 2: Industry Dynamics - The gaming industry is witnessing a decline in the relevance of Android channels, with companies increasingly opting to withdraw from these platforms due to high revenue-sharing demands [4][5]. - The "hardcore alliance" formed by major players like Tencent has also contributed to this shift, as it established a 50/50 revenue-sharing model that is now being challenged [4][5]. - The contribution of channels to user acquisition is diminishing, while the revenue-sharing ratios remain high, leading to increased tension between game developers and platform providers [5][6]. Group 3: Strategic Shifts - Companies like NetEase and Tencent are confident in their games' appeal, believing that withdrawing from channel servers will not significantly impact user retention and may even enhance user migration to official servers [6]. - The industry is moving towards a model where high-quality games attract users directly, reducing reliance on traditional channel distribution methods [5][6].

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].

Core Insights - In Q3 2025, China's gaming market achieved actual sales revenue of 880.26 billion yuan, marking a quarter-on-quarter growth of 6.96% but a year-on-year decline of 4.08%, ending a continuous decline since Q4 2024 [1][2] Market Segmentation - The client game market in China generated actual sales revenue of 202.9 billion yuan, with a quarter-on-quarter increase of 16.05% and a year-on-year increase of 19.88%, driven by multiple product launches during the summer and the performance of cross-platform products [2] - The web game market saw actual sales revenue of 10.75 billion yuan, experiencing a quarter-on-quarter decline of 1.41%, attributed to a strategic shift by game companies towards mobile and client games [2] - The mobile game market reported actual sales revenue of 643.89 billion yuan, with a quarter-on-quarter growth of 4.39% but a year-on-year decline of 1.93%, primarily due to a high base from the previous year and reduced revenue from leading products [2] - China's self-developed games in overseas markets achieved actual sales revenue of 49.94 billion USD, with a quarter-on-quarter growth of 6.34% but a year-on-year decline of 3.39%, supported by key products like "Kingshot" and "Last Z: Survival Shooter" [3]

Investment Rating - The report maintains an "Outperform" rating for the media sector [1] Core Viewpoints - The media sector has shown significant performance with favorable policies and AI-driven growth, particularly in the gaming segment [1][4] - The gaming sector is experiencing robust growth, with a year-on-year revenue increase of nearly 24% and net profit growth of approximately 75% [4][13] - The report highlights a divergence in performance among sub-sectors, with gaming showing strong growth while publishing and film sectors face challenges [4][12] Summary by Sections Investment Recommendations - The media sector's H1 2025 report indicates record-high revenue and significant profit growth, with a positive outlook on gaming, publishing, and IP derivative products [4][12] - The gaming sector benefits from favorable policies and AI advancements, leading to improved valuations and sustained performance [4][13] Market Review - From August 18 to September 26, 2025, the media sector rose by 11.76%, underperforming the ChiNext index by 12.60 percentage points but outperforming the CSI 300 and Shanghai Composite indices [3][16] - Among sub-sectors, the gaming sector increased by 28.36%, while the publishing sector declined by 2.19% [3][16] Industry News - Recent government policies, such as the "Artificial Intelligence +" initiative, are expected to enhance the media sector's growth prospects [25] - The gaming industry saw the approval of 145 domestic game licenses in September 2025, indicating a healthy regulatory environment [50] Monthly Data - In August 2025, the domestic film market generated a box office of 5.991 billion yuan, a year-on-year increase of 48.59% [26][27] - The gaming market's actual sales revenue in August 2025 was 29.263 billion yuan, with a year-on-year decline of 13.01% [44]

Core Points - The collaboration between Domino's Pizza and the popular mobile game "Dungeon & Fighter: Origin" features a special "Volcano Raid" meal package, combining culinary creativity with gaming elements [1][3][5] - The promotional period for this collaboration runs from September 25, 2025, to December 24, 2025, with limited-time offers available at designated stores [1][10] - The meal package includes a choice of cheese or cocoa "volcano" pizza, with a maximum discount of 42 yuan, and comes with exclusive in-game items and merchandise [1][5][10] Company Overview - Domino's Pizza, established in 1960, operates over 21,000 restaurants in more than 90 countries as of Q2 2025, with over 1,200 stores in mainland China [9] - The company emphasizes quality ingredients, including imported cheese and a variety of meats and vegetables, ensuring a high standard of pizza production [9] - Domino's Pizza offers a delivery guarantee of 30 minutes, enhancing customer service and satisfaction [9][10] Industry Context - "Dungeon & Fighter" is a well-known RPG fighting game that has maintained popularity for over a decade, with its mobile version "Dungeon & Fighter: Origin" being well-received in China [3][5] - The collaboration represents a growing trend of cross-industry partnerships, merging food and gaming to enhance customer engagement and brand loyalty [1][3]

Core Viewpoint - The gaming industry in China has experienced a significant rebound in performance and stock prices, driven by multiple favorable factors including the continuous issuance of game licenses, strong product performance, and successful expansion into overseas markets [1][5][6]. Industry Performance - The A-share gaming sector has seen a remarkable increase, with the Shenyin Wanguo gaming industry index surpassing 4000 points, marking a new high since 2017. The index has risen nearly 80% year-to-date, ranking third among secondary industry indices [5][6]. - From 2017 to 2024, China's gaming market revenue has grown from 203.6 billion to 325.8 billion yuan, with a notable turnaround beginning in the second half of last year [4][5]. Company Highlights - Several gaming companies have reported impressive stock price increases, with ST Huatuo and Giant Network both exceeding 200% growth this year. ST Huatuo's market capitalization has surpassed 140 billion yuan, making it the highest in the A-share media sector [5][6]. - Specific companies like ST Huatuo and Giant Network have seen substantial revenue growth, with ST Huatuo's revenue increasing by 70.3% in 2024 and continuing to rise by 85.5% in the first half of this year [7][8]. Factors Driving Growth - The resurgence in the gaming sector is attributed to several factors: overall industry performance recovery, cost reduction and efficiency gains from AI technology, disclosure of high-revenue products, and the explosion of mini-game ecosystems [6][7]. - The number of game licenses issued has significantly increased, with 1,119 licenses granted by August this year, reflecting a strong policy support for the industry [6][8]. Future Outlook - The gaming industry is expected to maintain its growth momentum due to the deep accumulation of resources by domestic gaming companies, which have developed a robust pipeline of new products [8][9]. - Analysts predict that the current prosperous situation may continue for the next 1 to 2 years, although the growth model and market dynamics may evolve, focusing more on quality and long-term operational capabilities rather than sheer quantity [9].

Core Viewpoint - The gaming industry in China has shown unexpected strong performance this year, with significant increases in both product performance and stock prices, driven by factors such as continuous issuance of game licenses, successful new game launches, and effective overseas market expansion [1][2]. Group 1: Market Performance - The A-share gaming sector has seen a remarkable recovery, with the Shenwan gaming industry index surpassing 4000 points, marking a new high since 2017. As of September 19, the index has increased nearly 80% this year, ranking third among Shenwan's secondary industry indices [2]. - Individual stocks have performed exceptionally well, with companies like ST Huatuo, Giant Network, and G-bits seeing stock price increases exceeding 100%, and ST Huatuo and Giant Network surpassing 200% [2][3]. - The domestic gaming market's actual sales revenue is projected to grow from 203.6 billion yuan in 2017 to 325.8 billion yuan in 2024, indicating a significant upward trend after years of stagnation [2]. Group 2: Factors Driving Growth - The continuous issuance of game licenses has been a crucial factor in revitalizing the industry, with 1,119 game licenses granted by August this year, a notable increase compared to previous years [2][3]. - The domestic gaming market's actual sales revenue reached 168 billion yuan in the first half of the year, a year-on-year increase of 14.08%, with the user base growing to 679 million, both figures hitting historical highs [3][4]. - The overseas market performance has also been strong, with actual sales revenue from self-developed games reaching $9.5 billion (approximately 68 billion yuan) in the first half of the year, marking an 11% year-on-year increase [3][4]. Group 3: Product and Technological Advancements - The successful launch of high-revenue games has bolstered investor confidence, particularly in validating the commercial models of mobile games and the potential for growth in mini-games [4][5]. - Companies are focusing on high-quality content production and expanding their market reach, moving away from low-quality, imitation games to more innovative offerings [5][6]. - The integration of AI technology is expected to enhance the ability of gaming companies to produce high-quality content efficiently, requiring strong market insight and operational capabilities [8]. Group 4: Future Outlook - The gaming industry is anticipated to maintain its growth momentum for the next 1-2 years, driven by the continuous production of new products and the deep accumulation of resources by domestic gaming companies [6][7]. - Major players like Tencent are diversifying their portfolios by launching both established and new titles, contributing to overall revenue growth in the domestic gaming market [7]. - The focus is shifting towards the quality and longevity of game releases, with an emphasis on achieving higher success rates rather than merely increasing the quantity of new games [7][8].

Core Viewpoint - The gaming industry in China has shown unexpected strong performance in 2023, with significant increases in both product performance and stock prices, driven by factors such as continuous issuance of game licenses, successful new game launches, and effective overseas market expansion [1][2]. Industry Performance - From 2017 to 2024, China's gaming market sales revenue is projected to grow from 203.6 billion yuan to 325.8 billion yuan, with a notable turnaround beginning in the second half of last year [2]. - As of September 17, the Shenwan Gaming Industry Index closed above 4000 points, marking a new high since 2017, with an approximate 80% increase year-to-date, ranking third among Shenwan's secondary industry indices [2]. - Individual stocks have performed exceptionally well, with companies like ST Huatuo and Giant Network seeing increases of over 100%, and ST Huatuo's market capitalization surpassing 140 billion yuan [2]. Factors Driving Recovery - The continuous issuance of game licenses has been a significant factor in boosting industry confidence, with 1119 licenses issued by August, a notable year-on-year increase [2][3]. - The gaming market's actual sales revenue reached 168 billion yuan in the first half of the year, a 14.08% increase year-on-year, with the user base growing to 679 million [3]. - The overseas market for self-developed games generated approximately 6.8 billion yuan in revenue, reflecting an 11% year-on-year growth [3]. Product and Market Dynamics - High-revenue products disclosed by gaming companies have bolstered investor confidence, particularly in validating the business models of mobile games and the growth potential of mini-games [4]. - The successful launch of key games, such as Giant Network's "Supernatural Action Group," has significantly contributed to stock price increases, with the game showing rapid growth in user engagement and revenue [4][6]. - The trend of gaming companies focusing on high-quality content and overseas expansion has become more pronounced, moving away from reliance on low-quality or cloned games [5][7]. Future Outlook - The gaming industry is expected to maintain its positive trajectory due to the deep accumulation of resources and capabilities by domestic gaming companies, which have enhanced their ability to produce new products [6]. - The current growth model may evolve, with a shift from quantity to quality in game releases, emphasizing long-term operational capabilities and market insight [7].