Group 1 - The game ETF (159869) has seen a narrowing decline of 0.25% as of September 30, with a net inflow of funds amounting to 1.298 billion yuan over the past five trading days, indicating strong investor interest [1] - The product scale of the game ETF has reached a new high of 10.574 billion yuan since its inception, facilitating investors in easily accessing leading A-share gaming companies [1] - In September 2025, a total of 145 domestic game licenses and 11 imported game licenses were issued, with several major companies receiving approvals for their games [1] Group 2 - The gaming sector is experiencing multiple catalysts including AI, content, and commercialization model transformations, making the game ETF (159869) an attractive investment opportunity [2]

Investment Rating - The report maintains a "Positive" investment rating for the gaming industry [7]. Core Insights - The issuance of game licenses in September, with approvals for companies like Kaiying, Giant Network, and Point Point, indicates a positive trend in the new game cycle and overall industry prosperity. The performance of several new games, such as Giant Network's "Supernatural Action Group" and G-bits' "Staff Sword Legend," is expected to drive the product cycle and industry sentiment upward. The combination of new game cycles, favorable policies, and AI catalysis suggests that the gaming sector still has upward valuation potential, warranting continued attention to investment opportunities in this area [2][4][6]. Summary by Sections Game License Issuance - In September, a total of 156 game licenses were issued, including 145 domestic and 11 imported games. This brings the total number of domestic game licenses issued this year to 1,195, nearing the annual total of 1,306 from 2024 [6][9]. Market Performance - The gaming market in China showed a month-on-month growth, with August revenues reaching 29.263 billion yuan, a 0.61% increase from the previous month. The mobile gaming market accounted for 21.541 billion yuan, reflecting a 0.85% month-on-month growth [9]. New Game Launches - Several new games are set to launch or have recently launched, including Kaiying's "The Legend of the Adventure" and Heartbeat's "Yise," which quickly topped the iOS and TapTap charts. The report highlights a rich pipeline of upcoming games from major developers, indicating potential for revenue growth [6][9].

Core Viewpoint - The gaming sector in A-shares has seen significant gains following the approval of multiple domestic and imported game licenses, indicating a positive trend for the industry [1][3]. Group 1: Market Performance - On September 25, several gaming stocks surged over 5%, including Kunlun Wanwei (300418.SZ), Icefire Network (300533.SZ), and Gigabit (603444.SH) [1]. - The gaming sector's valuation recovery is attributed to various factors, including the continuous issuance of game licenses, with 145 domestic games and 11 imported games approved recently [1][3]. - As of September 25, 2025, the A-share gaming sector comprises 24 listed companies, with some stocks achieving remarkable performance this year [7][8]. Group 2: Regulatory Environment - The National Press and Publication Administration has approved a total of 1,275 games in 2025, significantly higher than the 959 games approved in the same period last year, with an average monthly issuance increasing from 88.8 in 2023 to 132.8 in 2025 [3]. Group 3: Financial Performance - The domestic gaming market's actual sales revenue reached 168 billion yuan in the first half of 2025, marking a 14.08% year-on-year increase, setting a historical record [5]. - The A-share gaming sector reported a 22.8% year-on-year revenue growth in the first half of 2025, indicating a strong industry fundamental [5]. Group 4: Company Highlights - ST Huatuo's stock price has increased over 300% this year, making it the highest market cap company in the A-share media sector, with a total market value exceeding 160 billion yuan [9]. - Gigabit's stock rose by 5.67%, with a market value of approximately 47.69 billion yuan, and the company reported a 28.49% year-on-year revenue growth in the first half of 2025 [10][11].

Group 1 - The gaming sector is experiencing a strong performance, driven by new product releases and industry recovery, with a notable increase in average net profit expected in the first half of 2025, projected to grow by 118.64% year-on-year [1] - Several listed companies have launched quality products, with key highlights including: - Haikang Network's information service revenue reaching 657 million yuan, a 65% increase year-on-year - Perfect World's game "Yihuan" expected to start paid testing in Q4 - Giant Network's "Supernatural Action Group" showing significant improvement in sales rankings in August - G-bits' "Staff Sword Legend" maintaining a top 40 position in domestic sales rankings from August to September [1] Group 2 - The gaming market has shown rapid revenue growth from January to July, with a total of 1,119 game licenses issued from January to August, marking a 20.8% year-on-year increase - In July, the Chinese gaming market revenue reached 29.1 billion yuan, a 4.7% year-on-year increase, while the mobile gaming market's actual sales revenue was 21.4 billion yuan, up by 0.9% [2] - The gaming sector is positioned for upward correction due to low valuations, new product launches, regulatory policies, and AI applications, with a focus on the performance of new products [2]

Core Viewpoint - The A-share gaming landscape has changed in the first half of the year, with Century Huatong leading significantly in revenue, followed by 37 Interactive Entertainment and Perfect World returning to the top three [3][5]. Revenue Performance - Century Huatong achieved revenue of 17.207 billion yuan, a year-on-year increase of 85.5%, far surpassing 37 Interactive Entertainment's revenue of 8.486 billion yuan [3]. - Perfect World reported revenue of 3.691 billion yuan, up 33.74%, primarily driven by a surge in film and television revenue, which reached 767 million yuan (up 756.35%) [3]. - Only Century Huatong and Perfect World maintained high growth among the top five gaming companies, while 37 Interactive Entertainment and Shenzhou Taiyue experienced revenue declines [3]. Profitability Analysis - Century Huatong emerged as the most profitable gaming stock in A-shares, with a net profit exceeding 2.6 billion yuan, the only company in the sector to surpass 2 billion yuan in net profit [4]. - 37 Interactive Entertainment ranked second with a net profit exceeding 1 billion yuan, while Heiying Network, Giant Network, and Gibit each reported net profits exceeding 600 million yuan [4]. - Century Huatong's net profit surged by 129%, while Gibit and Heiying Network also saw significant increases [4]. Market Capitalization - Century Huatong's market capitalization exceeded 140 billion yuan, reclaiming its position as the top gaming stock, followed by Giant Network at over 80 billion yuan and Heiying Network at over 50 billion yuan [4]. - 37 Interactive Entertainment fell to fourth place in market capitalization [4]. Overseas Revenue Insights - Century Huatong's overseas revenue reached 8.958 billion yuan, leading significantly, while 37 Interactive Entertainment and Shenzhou Taiyue each exceeded 2 billion yuan [7]. - Heiying Network and Perfect World had overseas revenues around 200 million yuan, indicating a reliance on the domestic market [7]. Product Development Focus - The leading A-share gaming companies are focusing on high-quality IP development to mitigate market risks and enhance user attraction [10]. - The SLG (strategy game) genre remains a core focus, with 37 Interactive Entertainment having 10 SLG products in development [11]. - The trend of launching both APP and mini-program versions simultaneously is becoming mainstream in the industry, with companies like Shenzhou Taiyue adapting to market demands [12].

Group 1 - The gaming sector continues to show strong performance, with the gaming ETF (159869) leading the market by surging 4.18% [1] - The gaming ETF has attracted significant capital inflow, totaling 392 million yuan over the past five trading days [1] - Major gaming companies such as Xinghui Entertainment and Perfect World reached their daily limit up, while others like 37 Interactive Entertainment and Giant Network saw nearly 7% increases [1] Group 2 - The announcement of the 2026 International Invitation (TI15) to be held in Shanghai is expected to boost the gaming industry's growth momentum [1] - Several games have maintained strong performance in September, contributing to the positive outlook for Q4 and 2026 [1] - The summer gaming revenue is anticipated to accelerate the Q3 performance of gaming companies, with new game releases driving continued growth [1][2]

Core Viewpoint - The gaming industry is expected to rejuvenate in 2025 after undergoing self-restructuring and external changes from 2021 to 2024, with a notable growth of 19% in the domestic self-developed online game market in the first half of 2025 [1] Industry Overview - The gaming market experienced nearly 20% growth in the first half of 2025, driven by a recovery in both supply and demand, leading to an increase in total gaming hours and ARPU [3] - The number of monthly game approvals has doubled over the past two years, with a peak of 166 domestic game approvals this year, significantly enhancing the supply of new games [3] - The demand for gaming remains resilient, with a 13% year-on-year increase in ARPU in the first half of 2025 [3] User Demographics - The gaming audience continues to be predominantly young, with over 45% of users under 30 years old, and a significant increase in female players, with the female gaming market expected to grow by 124% year-on-year in 2024 [4] Competitive Landscape - The competition among leading companies is easing, with firms focusing on their strengths and specific game genres, leading to a reduction in the pressure on mid-sized companies [5] - Mid-sized companies are increasingly excelling in niche markets, such as female-oriented horror games and SLG genres, with notable successes like "Supernatural Action Group" and "Endless Winter" [6] Marketing and Distribution Changes - Traditional marketing methods are declining, with a shift towards content-driven marketing and community engagement, resulting in improved profit margins for gaming companies [7] - The performance of gaming community platforms has exceeded expectations, with significant revenue growth reported by platforms like TapTap and Huya Live [7] Impact of AI - AI is enhancing game development efficiency, with a notable decrease in R&D expense ratios from 48% in Q1 2023 to 29% in Q2 2025 [8] - Native AI games are emerging, with advancements in AI NPC interactions and the potential for AI-driven UGC games [8] Future Outlook - The gaming sector is expected to see significant growth in Q3 2025, with a robust pipeline of new game releases scheduled for major holidays [9] - The valuation of the gaming industry is anticipated to align with previous high points, supported by improved fundamentals and a favorable competitive landscape [10]

Core Insights - Sensor Tower released the revenue and download rankings for Chinese mobile games in overseas markets for August 2025, highlighting significant growth in the sector [1][2][3][4]. Revenue Growth - Point Cloud Interactive's game "Kingshot" saw a revenue increase of 26% in August, leading the overseas mobile game revenue growth chart, alongside "Whiteout Survival," which surpassed $3.3 billion in total revenue [1]. - Lemon Micro's "Gossip Harbor: Merge & Story" achieved a 14% revenue growth due to a successful anniversary event, securing the third position in the overseas revenue chart [1]. - Florere Game's "Last Z: Survival Shooter" experienced a 27% revenue increase, entering the top five in overseas mobile game revenue for the first time [1]. Notable Game Performances - Thunder Network's "Staff Sword Legend" saw a 74% revenue increase in August, climbing to the 18th position in the revenue rankings [2]. - Point Cloud Interactive's "Tasty Travels: Merge Game" achieved a 30% revenue growth, moving up to the 23rd position [2]. - The international version of "HAIKYU!! FLY HIGH" launched in late July, resulting in a 12.6 times revenue increase, placing it 6th in the revenue growth chart [3]. - "Hot Blood Jianghu: Return" launched in South Korea, with an 11-fold revenue increase, ranking 7th in the growth chart [3]. New Game Launches - NetEase launched "Destiny: Rising," which quickly topped the iOS download charts in the U.S. and entered the growth chart at 10th place within four days of release [4]. - The open-world survival game "Brave Land" topped the download charts in the Taiwan, Hong Kong, and Macau markets, entering the growth chart at 12th place [4]. Download Rankings - Hungry Studio's "Block Blast!" maintained its position as the top downloaded mobile game, with nearly 580 million downloads globally [5]. - Tencent's "PUBG MOBILE" ranked second in the overseas mobile game download chart, while "Whiteout Survival" saw an 11% increase in downloads, moving up to 6th in the revenue chart [6].

Core Insights - The gaming sector is experiencing a significant rebound, with the gaming ETF (159869) rising nearly 3% and attracting a net inflow of 242 million yuan over the past two days, indicating strong investor interest [1]. Industry Performance - Following the summer break, the gaming industry shows robust growth momentum heading into Q4 and 2026, with several games performing strongly in September [1]. - Notable game releases include Giant Network's "Supernatural Action Group," which entered the iOS top 12 sales chart, and G-bits' "Staff Sword Legend," maintaining a position in the iOS top 20-40 since August [1]. - The mini-game "Treasure Digging Friends" under the "Wen Dao" IP remains a top performer in the WeChat mini-game sales chart, while "Bouncing Kingdom" by Dandian Interactive has entered the top 25 of mini-game sales [1]. Future Outlook - The summer gaming revenue is expected to accelerate Q3 performance for gaming companies, with the strong performance of new games likely to drive continued upward momentum in company earnings [1]. - The gaming sector is poised for transformation through AI, content innovation, and changes in commercialization models, with the gaming ETF (159869) tracking the performance of A-share listed companies in the animation and gaming industry [1].

Core Viewpoint - The gaming industry in A-shares and Hong Kong stocks has shown significant revenue growth, with A-share gaming companies reporting a 22% year-on-year increase in gaming business revenue and Hong Kong gaming companies reporting a 16% increase, indicating overall profit improvement for manufacturers [1] Group 1: Revenue Growth Drivers - The performance of new and evergreen games has driven revenue growth, with successful new releases such as Tencent's "Delta Action" and Xindong's "Fantasy Land M: Original Server" contributing to revenue increases in Southeast Asia and the Greater China region [2] - Flagship evergreen games from Tencent and NetEase have also seen growth, with several mid-sized manufacturers experiencing a rebound in older games [2] Group 2: Marketing and AI Strategies - Marketing strategies vary among manufacturers due to product cycle differences, with increased marketing investments noted for new game versions, while some companies have reduced sales expense ratios due to AI-driven efficiency improvements [3] - AI applications in gaming focus on enhancing user engagement through AI NPCs and UGC creation, while company-level applications aim to improve efficiency in art, coding, and customer service [3] Group 3: Future Outlook - The outlook for A-share gaming companies in Q3 is optimistic, with new game releases expected to significantly contribute to profits, exemplified by Giant Network's "Supernatural" and JiBit's "Staff Sword Legend" [4] - Continued focus on the sustainability of new games and the value of evergreen games, alongside global expansion efforts, is anticipated to drive demand [4]