Group 1 - The gaming sector experienced fluctuations on November 17, with the gaming ETF (159869) dropping nearly 1.5%. Notable gainers included Mingchen Health, Fuchun Co., Beiwai Technology, and others, while Shenzhou Taiyue and others faced declines. As of November 14, the gaming ETF's product scale reached 11.276 billion yuan, facilitating investor access to A-share gaming leaders [1] - The limited test of the pixel-style simulation game "Kairo Game World," developed by Thunder and Kairo Co., began on November 17, running until December 1. This game is based on the Kairo game series' IP and aims to attract nostalgic players and simulation game enthusiasts through a combination of classic gameplay and localized operations [1] - The collaboration between domestic developers and overseas IPs is maturing, providing new competitive paths for small and medium-sized firms in the gaming industry. This "overseas IP authorization + local joint development" model may lead to a reassessment of classic IP values in the market [1] Group 2 - According to Guosheng Securities, the gaming industry is expected to see significant recovery in the first three quarters of 2025, with A-share gaming sector revenue reaching 78.69 billion yuan, a year-on-year increase of 28.3%. Key growth drivers include stable licensing policies, rapid growth in overseas revenues, and the deep integration of AI technology in game development [2] - AI technology has permeated the entire game development process, significantly enhancing efficiency and giving rise to a new category of "dynamically generated games," injecting new momentum into the industry's sustained growth [2] - The gaming sector is catalyzed by transformations in AI, content, and commercialization models, with the gaming ETF (159869) tracking the performance of A-share listed companies in the animation and gaming industry, highlighting investment opportunities [2]

Group 1 - The developer of "JJ Happy Landlord," Jingji World (Beijing) Network Technology Co., Ltd., issued an apology for infringing on Tencent's "Happy Landlord" trademark, highlighting the increasing importance of intellectual property protection in the gaming industry [1] - Jingji World launched the "JJ Happy Landlord" game mini-program on a third-party app without permission, leading to a trademark infringement claim from Tencent in June 2024 [1] - The incident emphasizes the need for compliance and brand originality in the gaming sector, as companies face significant legal and reputational risks when attempting to leverage established IP traffic [1] Group 2 - Thunder Game and Kairosoft jointly developed and adapted the pixel-style simulation game "Kairo Game World," which will undergo a limited closed beta test from November 17 to December 1 [2] - The game aims to attract nostalgic players and simulation game enthusiasts by integrating Kairosoft's classic gameplay with Thunder Game's localized operational capabilities [2] - This collaboration reflects a mature model of deep cooperation between domestic companies and overseas IPs, providing a new path for differentiation in the gaming market [2] Group 3 - Tencent's "Yuanmeng Star" announced the recruitment for the final test of its new gameplay "Mountain and Sea Seeking Spirit: Catching Pets in a Big World," which runs from November 15 to December 16 [3] - The test aims to expand the game from a party format to a "UGC + open world" ecosystem, enhancing user engagement and playtime [3] - Continuous iteration of gameplay in leading products may drive a new wave of innovation in the gaming industry, enriching content supply and exploring the boundaries between party games and open-world experiences [3]

Core Insights - The gaming industry in China is experiencing a high prosperity cycle, with a significant number of game approvals indicating strong demand and supply dynamics [1][2] - The approval of 159 domestic games in October is the second highest this year, reflecting ongoing growth in the sector [1] - The A-share gaming sector has seen substantial stock price increases, with the Shenwan secondary gaming index rising approximately 66% year-to-date [2] Domestic Game Approvals - In October, 159 domestic games received approval, with 73 categorized as mobile-casual and 70 as mobile games [1] - Notable games include Tencent's "八荒奇旅," 37 Interactive's "生存33天," and others from companies like ST中青宝 and 祖龙娱乐 [1] Import Game Approvals - Seven new imported games received approval in October, including "蜡笔小新" from 游族网络 [2] - The total number of game approvals this year has reached 1,441, maintaining a consistent monthly issuance rate [2] Market Performance - The gaming sector has shown strong performance, with several stocks doubling in value this year, including 巨人网络 and 吉比特 [2] - The current valuation of the gaming sector remains attractive, prompting recommendations for increased investment [1][2] Future Growth Projections - Omdia forecasts that the total revenue from game subscriptions in the Asia-Pacific region will grow from $6.5 billion to $9.4 billion between 2025 and 2029 [3] - The domestic self-developed online game market saw a 19% year-on-year growth in the first half of this year, indicating a robust recovery [3] Company Performance Highlights - Tencent reported a revenue of 364.53 billion yuan in the first half of 2025, with a 13.7% year-on-year increase, driven by its gaming and social services [4] - 祖龙娱乐 achieved a revenue of 634 million yuan in the first half of 2025, a 44.4% increase compared to the same period last year, attributed to new game launches [4] - 友谊时光's revenue reached 623 million yuan in the first half of 2025, marking an 18.5% increase, with a significant turnaround in profitability [5] - 网易 reported a net income of 56.72 billion yuan in the first half of 2025, with its gaming segment showing stable performance and growth [6]