Investment Rating - The report maintains a positive outlook on the media and internet industry, particularly recommending leading companies in various segments, including Shenzhou Taiyue, Southern Media, and Tencent Holdings [1][2]. Core Insights - The SLG (Simulation Game) segment is expected to continue its high growth momentum, driven by expanding overseas demand and the integration of lightweight and diverse gameplay [1]. - The report highlights that SLG games are projected to capture nearly 10% of the global gaming market by 2024, generating approximately $17.5 billion in revenue, making it the leading category [1]. - The performance of companies like ST Huatuo and Bilibili in the SLG space is noted, with significant revenue contributions from their new and existing titles [1][2]. Summary by Sections Market Performance - The media industry index rose by 1.95% in the past week, ranking 17th among all sectors, with a year-to-date increase of 21.47%, placing it 6th among various sectors [1][9]. Game Sector Highlights - The report emphasizes the strong performance of the gaming sector, particularly the SLG games, which are expected to see continued growth due to their long lifecycle and high average revenue per user (ARPU) [1]. - Notable titles such as "Endless Winter" and "Kingshot" are highlighted for their revenue achievements, with "Endless Winter" surpassing $2.8 billion globally by mid-2025 [1]. Company Performance - Xindong Company has exceeded market expectations with its performance forecast, driven by successful self-developed games and the Taptap platform [2]. - The report notes that despite a stable monthly active user count, Taptap's revenue and profit have increased due to improved advertising algorithms and user engagement [2]. Film and Television Sector - The report provides insights into the film sector, noting that the top films in the box office are predominantly Chinese, with "Nanjing Photo Studio" leading with a weekly box office of 689.225 million [16][17]. - Television ratings are also discussed, with "Jin Yue Ru Ge" topping the viewership ratings on Hunan TV [21]. Book Publishing Sector - The report mentions the best-selling books in July 2025, with notable titles in both fiction and non-fiction categories, indicating a healthy market for literature [32][34].

Core Insights - DataEye has released exclusive data on WeChat mini-games for July, highlighting consumption patterns and trends in various game categories [1] Consumption Patterns - In July, the consumption share of the war strategy category remained stable at approximately 20%, while the idle game category saw a decline to about 14.42%, down over 2 percentage points from June [3] - The simulation management category increased its consumption share to about 13.35%, while the tower defense category slightly decreased to 12.5% [3] - The consumption shares of legendary RPG and Xianxia RPG categories continued to decline, with legendary RPG at 8.36% and Xianxia RPG at 9.44% [3] Top Consumption Rankings - The top consumption game in July was "Three Kingdoms: Ice Age," surpassing "Endless Winter," which ranked second [7] - "Zombie Shooting" maintained its third position, while "Seeking the Great Thousand" and "Refined Hero" remained in the top five [7] - "Happy Elimination" re-entered the top 20, indicating a resurgence in the light casual game category [7][12] Growth Rankings - "Three Kingdoms: Ice Age," "Qingyun Jue: Demon Subduing," and "Spirit Painter" topped the consumption growth rankings for July [11] - "Forever Blue Planet" showed significant growth, ranking ninth in the consumption growth list after starting its advertising campaign in mid-July [11] Advertising Trends - In July, the total number of advertising materials for WeChat mini-games was approximately 2.28 million, showing a decline from June [15] - The number of games participating in advertising increased to about 11,600, with 1,560 new games launched during the month [15][21] - The top three gameplay categories in terms of advertising were casual, elimination, and puzzle games, with idle gameplay seeing a growth of over 12% [21] Genre Trends - The modern, other, and fantasy genres ranked as the top three in terms of the number of games launched, with the fantasy genre experiencing a growth of over 15% [24] - The legendary genre was the only one to see a decline in the number of games launched, indicating a shift in the competitive landscape [24]

Core Insights - The event "New Cultural Creation Ignites New Consumption" held in Shanghai focused on the intersection of digital culture and consumer behavior, emphasizing the importance of IP cross-industry empowerment and innovation in the digital cultural industry [8][10][12]. Group 1: Industry Trends - Digital cultural IP is reshaping the consumption logic of young people, with local governments promoting ecological collaboration in the cultural industry [8][10]. - The integration of technologies like AIGC and business models such as "Guzi Economy" and "Co-branding Economy" is expected to break down industry barriers and drive high-quality economic development [8][10]. - The concept of "emotional embedding" and "social interaction empowerment" is crucial for brands to maintain consumer enthusiasm, as young consumers prioritize emotional connections with products [9][10]. Group 2: Brand Collaboration Strategies - Brands are increasingly focusing on "tone alignment" when selecting collaboration partners, ensuring that the IP's characteristics resonate with their own brand identity [10][11]. - Softstar Technology emphasizes the importance of cultural depth and innovation in collaborations, showcasing successful partnerships with various brands to enhance consumer engagement [10][11]. - Century Huatong has successfully collaborated with hotels and traditional brands, demonstrating that diverse partnerships can rejuvenate brand images and attract younger audiences [11][12]. Group 3: Challenges and Considerations - The tea beverage brand Lemon Right has observed a slowdown in collaboration frequency, highlighting the need for brands to focus on building their own identity while selectively engaging in IP collaborations [13][14]. - Concerns about the effectiveness of collaborations in delivering added value are prevalent, with brands emphasizing the importance of product quality before pursuing co-branding opportunities [14][15]. - The integration of AI in IP collaborations is gaining traction, but many companies remain cautious due to concerns about AI-generated content potentially harming brand reputation [15][16]. Group 4: Intellectual Property Protection - Intellectual property protection is essential for maintaining the value and scarcity of IP, with significant investments required to cultivate successful IPs [16][17]. - The rise of counterfeit products poses challenges for IP holders, necessitating proactive measures to protect brand reputation and market integrity [16][17]. - The industry is actively exploring various legal pathways for protecting intellectual property rights, indicating a collective effort to address infringement issues [16][17].

Core Insights - The Chinese animation and gaming industry is experiencing significant growth, with the market expected to exceed 270 billion yuan in 2024, making China the largest market globally for the "二次元" (2D) culture [2] - Major events like ChinaJoy and BiliBili World are becoming increasingly competitive, with cities vying for the rights to host these exhibitions, reflecting the rising commercial value of the industry [2] - The "痛" (pain) culture, characterized by the decoration of personal items with anime and gaming merchandise, is driving consumer interest and economic value, as evidenced by the rapid ticket sales for events like BW 2025 [4] Industry Trends - The rise of "痛" culture is linked to the continuous upgrade of domestic gaming companies, which are now focusing on creating a full IP value chain around popular games [4][5] - Companies like叠纸游戏 and米哈游 are successfully launching high-quality merchandise and achieving significant sales, indicating a strong market for IP-related products [4][5] - The trend of cross-industry collaborations is growing, with more consumer brands seeking partnerships with gaming and entertainment companies to tap into the lucrative market of IP merchandise [5] Event Dynamics - Major gaming companies are leveraging events like ChinaJoy to showcase their products, with companies like世纪华通 and网易游戏 presenting a diverse range of games and attracting large crowds [6][7] - The immersive experience provided at these events is crucial for gathering player feedback and enhancing marketing strategies, as players increasingly value firsthand experiences over traditional marketing [8] - The focus on high-quality, boutique games is reshaping the industry, with player reviews and word-of-mouth becoming critical for the success of new game launches [8]

Core Insights - The empowerment of AI in the gaming industry is becoming a consensus among stakeholders [1] - Identifying quality gaming investment targets and teams has emerged as a new challenge [2] - The "Shulong Cup" competition initiated by Century Huatong aims to discover outstanding AI talent and teams in the gaming sector [2] AI Integration in Gaming - AI's current involvement in gaming primarily focuses on design aspects such as original artwork, concept creation, character illustrations, and 3D modeling [3] - Century Huatong has signed cooperation agreements with numerous startups in the AIGC field, covering various content production stages [3] - Despite the lack of significant cost reduction and efficiency gains due to insufficient computing power and skilled personnel, the direction of AI integration is widely recognized in the industry [3] - The challenge lies in how AI can enhance gameplay innovation while improving production efficiency [3][9] Innovations and Case Studies - The "Best AI Game Content Design Award" was awarded to "Mystery Reasoning," where players interact with AI-controlled NPCs to gather clues [4] - The NPCs in the game exhibit strong anthropomorphic traits, enhancing player immersion through witty dialogues [5][6] - "1001 Nights," which won the "Best AI Game Innovation Award," utilizes a large model to generate dynamic content based on player inputs, pushing the narrative forward [6] - Century Huatong's popular game "Endless Winter" also incorporates AI-generated storylines, although it still requires significant human editing [7] Market Trends and Financial Performance - The gaming industry is experiencing a high demand and supply dynamic, with many companies turning profitable this year [8] - Century Huatong's net profit attributable to shareholders is expected to more than double year-on-year in the first half of 2025 [8] - The number of game licenses issued has increased significantly, with over 800 licenses granted in the first half of the year, marking a growth of over 20% [8] Investment Landscape - Investment in AI gaming projects remains relatively low compared to the hot AI infrastructure sector [12] - Many investment institutions are still in the early stages of investing in AI gaming, primarily focusing on initial funding rounds [13] - Key factors for evaluating AI games include understanding the target audience, ensuring high-quality gameplay, and effectively integrating AI technology with the gaming experience [14]

Investment Rating - The report maintains a positive outlook on the internet media sector, indicating an "Overweight" rating, suggesting that the industry is expected to outperform the overall market [4]. Core Insights - The report highlights the strong performance of AI applications in the US stock market, particularly noting Figma's successful IPO and its market capitalization exceeding $50 billion. Figma's integration of AI into design workflows is expected to enhance customer retention and drive revenue growth [4]. - The report identifies several key opportunities within the domestic AI application industry, including AI design, AI advertising, AI companionship/gaming, cross-border e-commerce, and education [4]. - The gaming sector is also highlighted, with Tencent's new game "Delta Action" exceeding expectations in daily active users, indicating strong growth potential despite high baseline comparisons [4]. - The report emphasizes the ongoing high demand for consumer entertainment sectors such as trendy toys, music, and concerts, with companies like Pop Mart and NetEase Cloud Music being recommended as core investment targets [4]. Summary by Sections AI Applications - Figma's revenue for 2024 is projected at $749 million, reflecting a year-over-year growth of 48%. The company's Rule of 40 score is among the top in the SaaS sector, with a revenue growth rate of 46% and an operating margin of 18% [4]. - The report suggests focusing on domestic AI design companies like Meitu, which is expected to grow at a CAGR of approximately 40% from 2024 to 2026, and Kuaishou, which has a low PE ratio of 15x [4]. Gaming Sector - Tencent's gaming growth potential is considered underestimated, with new titles like "Delta Action" performing well in the market. The report anticipates continued growth from other titles in development [4]. - Other companies such as Giant Network and Huatuo are also mentioned for their innovative game offerings and potential for future growth [4]. Consumer Entertainment - The report continues to recommend companies in the high-demand consumer entertainment sector, including Pop Mart and NetEase Cloud Music, as they have adjusted to high valuations and are entering favorable investment zones [4]. Advertising and Marketing - The collaboration between Focus Media and Alipay is noted as a significant development, aiming to create new marketing paradigms by integrating digital and physical spaces [4].

Core Insights - The 22nd ChinaJoy, themed "Gathering What You Love," attracted 743 exhibitors, showcasing the integration of technology in reshaping entertainment experiences [1][3] Industry Recovery and Atmosphere - The high attendance at ChinaJoy is linked to the recovery of the gaming industry, with the domestic gaming market generating actual sales revenue of 168 billion yuan in the first half of 2025, a year-on-year increase of 14.08% [3][6] - The number of gaming users reached approximately 679 million, marking a 0.72% increase, both figures setting historical highs [3][6] - Esports and mini-program games are significant contributors to this growth, with esports revenue at 80.645 billion yuan, accounting for nearly half of the total gaming market revenue [3][6] - Mini-program games generated 23.276 billion yuan in revenue, with a remarkable year-on-year growth rate of 40.20%, becoming a key growth driver [3][6] Highlights from Exhibitors - Major domestic companies like Tencent, NetEase, and Perfect World showcased multiple esports products, while international firms like Blizzard and Ubisoft presented their esports IPs [3][6] - Century Huatong featured its popular mini-program game "Endless Winter," which has over 54 million monthly active users, in a unique exhibition area [4][6] Single-Player Game Popularity - The actual sales revenue for domestic console games reached 1.034 billion yuan, reflecting a year-on-year increase of 29.78%, driven by titles like "Black Myth: Wukong" [6][10] - The presence of single-player games has notably increased at this year's ChinaJoy, with several high-profile titles receiving dedicated exhibition spaces [10][11] AI Integration in Gaming - ChinaJoy 2025 highlighted the deep integration of AI in gaming, with companies like NetEase showcasing AI interactive experiences and dynamic narrative generation [12][13] - AI NPCs are designed to better understand player intentions and provide real-time responses, enhancing immersion and user experience [13][14] - The event also featured a "Smart Entertainment Robot" area, indicating a growing interest in the intersection of gaming and robotics [14][16]

2025年8月1日，第二十二届中国国际数码互动娱乐展览会（以下简称ChinaJoy）在上海新国际博览中心正式开幕。 今年展会共吸引参展企业743家，其中外资企业237家，来自美国、加拿大、英国、德国、日本和韩国等37个国家和地区，占比达31.9%。BTOB （面向企业）商务洽谈馆共有超460家企业参展，展区面积2.5万平方米，其中外资企业近208家，占比45.2%。BTOC（面向公众）互动娱乐馆展 区总面积11万平方米，共有280余家企业参展。腾讯、网易、华为、世纪华通、完美世界、高通、索尼等国内外知名企业带来最新产品并提供现 场试玩。此外，展会还首次设立"智慧娱乐机器人"展位，打造AI（人工智能）科技体验场景。 此前，上海宣布于7月4日至8月10日举办首届上海国际动漫月，以CCG、Bilibili World与ChinaJoy三大动漫展会为核心，要将上海打造成"全球次 元文化新地标"。全球动漫游戏爱好者相聚上海，体验动漫游戏行业与城市文化的多元融合，推动文旅商体展深度融合发展。 由上海新国际博览中心2号入口进入，首先便是"骁龙主题馆"。而在 ChinaJoy开幕前一天，高通就在上海外滩召开了一年一度的"骁龙 ...

Group 1 - The 22nd China International Digital Interactive Entertainment Expo (ChinaJoy) commenced on August 1, attracting over 700 renowned domestic and international companies [1] - Tencent showcased 17 products under the theme "COOL Goose Summer Camp," featuring a 40-meter "Goose MAX" screen for player interaction [1][3] - Century Huatong's exhibition area was the largest, themed "Game for Gamers," featuring 13 games and interactive experiences like ice fishing and snow-themed activities [6][8] Group 2 - NetEase presented 45 games with six themed exhibition areas, including popular titles like "Naraka: Bladepoint" and "Identity V," offering immersive experiences [11][13] - Sony Interactive Entertainment showcased eight unreleased or popular domestic games, emphasizing the unique charm of Chinese games [17][19] - Perfect World highlighted its esports and MMO offerings, including "DOTA2" and "CS:GO," while also presenting new titles like "Eternal Return" [25][26] Group 3 - Giant Network introduced its new game "Supernatural Action Team," which has seen over 1 million concurrent users, showcasing its market potential [27][29] - First-time participant Mu Tong Technology presented its dark fantasy RPG "Silver and Scarlet," attracting significant attention for its unique art style [33][35] - AI remained a hot topic at ChinaJoy, with awards for innovative AI applications and discussions on AI's role in enhancing game development and global operations [38][39]

Group 1 - Wei Wei, known for "bottom fishing" in ST stocks, purchased 22.6173 million shares of Century Huatong for approximately 279 million yuan at an average price of 12.35 yuan per share, which is below the current market price of 12.89 yuan as of August 1 [2][3] - Century Huatong's net profit for the first half of the year is expected to be between 2.4 billion to 3 billion yuan, representing a year-on-year growth of 107.2% to 159% [2] - The stock price of Century Huatong has increased significantly, with a cumulative rise of 150.78% in the first half of the year [2][8] Group 2 - The auction for Century Huatong shares started at a price of approximately 194 million yuan, with Wei Wei's final bid being 279 million yuan after 31 rounds of bidding [3] - Wei Wei's previous investment in Shanshan Co. yielded a profit of over 26% within a month, indicating his successful investment strategy [4] - In the second quarter, 101 funds held shares in ST Huatong, an increase of 77 funds from the previous quarter, with a total holding value of nearly 2.7 billion yuan [9] Group 3 - Century Huatong's business segments include internet gaming, AI cloud data, and automotive parts manufacturing, with gaming contributing 76.33% of its revenue [6] - The company faced regulatory scrutiny for financial misreporting from 2018 to 2022, leading to penalties and a risk warning on its stock [7] - The gaming segment has seen significant growth, with the subsidiary Point Interactive generating approximately 150 billion yuan in revenue in 2024, a 155% increase year-on-year [8]