Group 1 - The gaming sector is experiencing a significant rise, with the gaming ETF (159869) increasing by nearly 3.5% as of December 17, driven by leading stocks such as Giant Network, which surged over 6% [1] - In November, the number of approved domestic game licenses reached a new high, with 178 domestic games and 6 imported games approved, marking a month-on-month increase of 19 games and a year-on-year increase of 66 games [1] - Among the approved games, 167 are mobile games, 2 are client games, and 9 are multi-platform games, with notable titles including Perfect World's "Dream New Zhu Xian: Light Enjoy" and Bilibili's "Shining Lu Mi" [1] Group 2 - From January to October 2025, China's gaming market generated actual sales revenue of 287.385 billion yuan, reflecting a year-on-year growth of 7.19%, with the mobile gaming market at 212.331 billion yuan, growing by 8.73% [2] - The gaming sector is expected to benefit from multiple catalysts as the holiday season approaches, including Christmas, New Year, and the Spring Festival, which may significantly boost revenue [2] - The gaming sector is undergoing transformations in AI, content, and commercialization models, making the gaming ETF (159869) an attractive investment opportunity [2]

Group 1 - The gaming sector showed resilience with a slight increase in the gaming ETF (159869) after initially opening lower, indicating a recovery trend in the market [1] - In November, 184 game licenses were approved, with 178 being domestic games and 6 imported, reflecting a continuous optimization of industry supply [1] - The approval of key titles such as Tencent's "No Boundaries" and Bilibili's "Shining Luminous" highlights the ongoing strength and stability of the gaming policy environment [1] Group 2 - Since 2025, a significant number of high-quality games have emerged, suggesting potential long-term value growth for related companies [2] - The gaming and film industries are seen as pioneers for cultural export, achieving notable success in overseas markets [2] - The application of AI technology in the industry is expected to contribute to sustained prosperity in the content sector, with a rich reserve of new games anticipated for 2026 [2]

Group 1 - The gaming sector is experiencing a downward trend, with the gaming ETF (159869) dropping over 1%, while stocks like 37 Interactive Entertainment,掌趣科技, Tianzhou Culture, Xinghui Entertainment, and Iceberg Network are among the biggest losers [1] - As of December 1, the gaming ETF (159869) has a product scale of 11.451 billion yuan, allowing investors to easily invest in leading A-share gaming companies [1] - On November 27, the National Press and Publication Administration approved 178 domestic games and 6 imported games, marking a monthly high for domestic game approvals in 2025, with a total of 1,532 domestic game licenses issued [1] Group 2 - Huaxi Securities believes that the high number of game licenses reflects policy stability, with leading companies enhancing their competitive advantages through product iteration and multi-platform strategies, providing a solid foundation for the long-term healthy development of the industry [1] - The gaming sector is catalyzed by multiple factors including AI, content, and commercialization model transformations, with the gaming ETF (159869) tracking the CSI Animation and Gaming Index, reflecting the overall performance of A-share listed companies in the animation and gaming industry [1]

Group 1 - The gaming sector is experiencing downward pressure, with the gaming ETF (159869) expanding its decline to 1.5%, indicating a challenging market environment for many stocks within the sector [1] - Despite the overall decline, there has been a notable inflow of funds into the gaming ETF, totaling 371 million yuan over the past two trading days, reflecting investor interest [1] - As of December 1, the product scale of the gaming ETF reached 11.451 billion yuan, facilitating investors' access to leading A-share gaming companies [1] Group 2 - The National Press and Publication Administration approved 184 games in November, including 178 domestic and 6 imported titles, which may positively impact the profitability of related listed companies [1] - Key products approved include Tencent's "No Man's Land," Perfect World's "Dream New Zhu Xian: Light Enjoy," and Bilibili's "Shining! Luming," indicating a diverse range of offerings in the market [1] - The gaming industry is expected to maintain its favorable outlook, driven by successful new releases and the integration of AI and other new technologies, which may enhance industry valuation levels [1][2]

Industry Dynamics - In November, a total of 178 domestic game licenses and 6 imported game licenses were approved, marking a new high in recent years [1][2] - The domestic game market revenue reached 31.36 billion yuan in October, with a year-on-year growth of 7.83% [1][3] - The PC game market saw a significant increase, growing by 29.39% year-on-year, driven by titles like "Delta Force" and "Yanyun Sixteen Sounds" [3] Company Updates - Guo Weiwei resigned as CEO of Xishanju, continuing as Chief Producer, while Zou Tao, CEO of Kingsoft, will act as interim CEO [1][4] - Xindong Network provided a loan of 40 million USD (approximately 290 million yuan) to support the acquisition of Arc Games and Cryptic Studios by Project Golden Arc [1][5] - ByteDance is in negotiations with Saudi Savvy Game Group to sell its subsidiary Mutong, with a potential valuation of 2 billion USD for the core asset "Mobile Legends: Bang Bang" [1][6] - NetEase announced that its card game "Onmyoji: Banshu Card" will stop new content updates after January 1, 2026, due to operational strategy adjustments [1][7] - Perfect World’s actual controller, Chi Yufeng, plans to reduce his stake by selling up to 3297.95 million shares, representing 1.7% of the total share capital [1][8] Overseas Insights - Research firm Alinea Analytics predicts that Valve's revenue from its Steam platform will reach approximately 16.2 billion USD in 2025, with total revenue potentially exceeding 17 billion USD when including hardware and first-party game sales [1][9]

Market Overview - The A-share market saw collective gains last Friday, with the Shanghai Composite Index rising by 0.34% to close at 3,888.60 points, the Shenzhen Component Index increasing by 0.85% to 12,984.08 points, and the ChiNext Index up by 0.7% to 3,052.59 points. The total trading volume in the A-share market reached 1.59 trillion RMB, with net purchases from southbound funds amounting to 2.727 billion HKD. Over 3,900 stocks in the A-share market experienced gains [1][6]. - In terms of sector performance, the steel, agriculture, forestry, animal husbandry, and retail sectors led the gains, while the banking and coal sectors saw declines. Concept indices such as titanium dioxide and Hainan Free Trade Zone performed well, whereas indices related to avian influenza and flu saw declines [1][6]. Important News - The China Securities Regulatory Commission (CSRC) has drafted an announcement regarding the pilot launch of commercial real estate investment trusts (REITs). The announcement outlines eight key points, including the definition of commercial real estate REITs, registration and operational management requirements, and the responsibilities of fund managers and custodians. It emphasizes the need for strict adherence to regulatory standards and the roles of regulatory bodies in monitoring and managing risks associated with commercial real estate REITs [2][6]. Industry Insights - In November, a record 184 game licenses were approved, with notable titles such as Xishanju's "Star Sand Island" entering the life simulation genre. The total number of approved domestic games this year has reached 1,532, with 178 approved in November alone. The report highlights the competitive landscape for life simulation games, with major developers like miHoYo and Tencent also entering the market [7][8][9]. - The approval of game licenses is expected to continue to support the industry's recovery, with a focus on companies that possess product reserves, research capabilities, and diverse thematic layouts [9].

Investment Rating - The investment rating for the media industry is "Positive (Maintain)" [1] Core Insights - The report highlights a significant increase in the approval of domestic game licenses, with 178 domestic games and 6 imported games approved in November, marking a new monthly high for the year. A total of 1,532 domestic game licenses have been issued in 2025, indicating a robust supply for new game releases [3][4] - The film market is showing signs of recovery, driven by the success of "Zootopia 2," which has grossed over 1.89 billion yuan in the mainland, with a projected final box office of 4.263 billion yuan. Upcoming films are expected to further boost box office revenues [4][5] - The report emphasizes the ongoing development and commercialization of AI applications, particularly in gaming, advertising, and content creation, suggesting continued investment in these sectors [3][4] Summary by Sections Industry Data Overview - "仙逆 H5" ranks first in the iOS free game chart, while "和平精英" leads the iOS revenue chart as of November 29, 2025 [10][14] - The report notes that "明日方舟：终末地" is the top-ranked game in the Android pre-registration chart, and "逆战：未来" leads the iOS pre-registration chart [21][23] Industry News Overview - The report discusses advancements in AI models, including the release of Claude Opus 4.5, which enhances coding and agent capabilities, and the rapid deployment of AI products by Alibaba [31][32] - The gaming market remains vibrant, with a notable increase in the issuance of domestic game licenses, indicating sustained high demand [31][32] Company Recommendations - The report recommends continued investment in AI gaming, AI advertising, AI animation, AI e-commerce, and AI design sectors, highlighting key companies such as 恺英网络, 巨人网络, and 腾讯控股 as beneficiaries [3][4]

Investment Rating - The industry rating is "Recommended" [4] Core Insights & Investment Recommendations - "Zootopia 2" achieved a single-day box office of 700 million yuan, setting a new record for animated films. The cumulative box office reached 1.37 billion yuan, with total pre-sale tickets at 1.54 billion yuan. The significant increase in audience numbers reflects the strong appeal of quality IP and production, injecting confidence into the film industry chain [2][21] - In November, 184 game licenses were approved, indicating continuous optimization in the industry supply. The National Press and Publication Administration released 184 game licenses, including 178 domestic and 6 imported games. The high number of licenses reflects policy stability, allowing leading companies to deepen their competitive advantages through product iteration and multi-platform strategies [2][22] - Current head technology companies are increasing their computing power investments, coupled with a recovery in entertainment consumption. Investment opportunities include: 1) Hong Kong internet leaders, promoting consumption and stabilizing employment; 2) Gaming industry, with policy incentives boosting domestic demand and technological empowerment enhancing product competitiveness; 3) Film and cultural tourism industries, with consumption policies promoting cinema recovery and stimulating improvement in consumer demand [3][22] Sub-industry Data Film Industry - The top three films by box office this week are "Zootopia 2" (1.373 billion yuan, 89.50% market share), "Wild Era" (59.14 million yuan, 3.90% market share), and "Demon Slayer: Infinity Castle" (47.84 million yuan, 3.10% market share) [23][24] Gaming Industry - The top three iOS games by sales are "Peace Elite," "Honor of Kings," and "League of Legends Mobile." The top three Android games by popularity are "Heart Town," "Boundary: Knife Sound," and "Daughter of Volcano: Reunion" [26][27] TV Series Industry - The top three TV series by broadcast index are "Tang Dynasty Strange Stories: Chang'an" (83.2), "Xiao Qi Qing Huang" (80.6), and "Si Xi" (79.7) [28][29] Variety Shows & Animation - The top three variety shows by broadcast index are "Now Departing Season 3" (81.7), "Wonderful Night Season 2" (78), and "Running on the Road: Tianlu Edition" (75.9) [30][32] - The top three animations by viewership index are "Immortal Reversal" (193), "Demon Slayer" (187.6), and "Devouring the Starry Sky" (175.2) [31][33]

Group 1: Game Approval and Market Trends - In November, the National Press and Publication Administration approved a total of 184 games, bringing the total number of game licenses issued in 2025 to 1,624, with 1,532 being domestic and 92 being imported [1][4] - The number of domestic game licenses approved each month has consistently exceeded 110 over the past year, indicating a stable growth trend compared to last year [4] - Notable games approved this month include Tencent's "No Man's Land," Bilibili's "Shining! Lume," and Perfect World's "Dream New Zhu Xian: Light Enjoy" [1] Group 2: ByteDance and Savvy Games Group Negotiations - ByteDance is reportedly in talks with Saudi Savvy Games Group to sell its gaming subsidiary, Mouton, with negotiations still ongoing and no final agreement reached [5] - Mouton's flagship game, "Mobile Legends: Bang Bang," has over 1.5 billion downloads globally and is considered a core asset of ByteDance's gaming business [5] - There are concerns regarding Savvy's financial situation, which may impact the negotiations, as the Saudi Public Investment Fund is facing funding shortages [7] Group 3: Tencent's Strategic Investments - Tencent has completed a strategic investment of €11.6 billion (approximately 900 million RMB) in Ubisoft's subsidiary, Vantage Studios, acquiring a 26.32% economic interest while Ubisoft retains control [8][10] - Vantage Studios will focus on major Ubisoft IPs like "Assassin's Creed," "Far Cry," and "Rainbow Six," aiming to develop them into evergreen brands with annual revenues of €1 billion [8] Group 4: Game Releases and Updates - Tencent's Level Infinite has secured global publishing rights for the upcoming cross-platform game "Project Spirits" developed by Shift Up, indicating Tencent's deepening involvement in game development [11][13] - Bilibili's game "Yao Guang Lu: Chaos Princess" will cease online operations on December 8, 2025, after a short lifespan, reflecting challenges in sustaining player engagement [16][18] - NetEase's collectible card game "Onmyoji: The Card Game" will stop new content updates after January 1, 2026, although servers will remain operational [19][21] Group 5: Acquisitions and Market Expansion - Nintendo plans to acquire 80% of Bandai Namco Studios Singapore by April 1, 2026, to enhance its game development capabilities [22][24] - The Chinese Embassy in Belarus praised NetEase's "Yanyun Sixteen Sounds," highlighting the increasing success of Chinese ARPGs in international markets [25][28] - Kaien Network's investment in the AI game "EVE" is set for a second test, with plans for a Q1 2026 launch, showcasing the industry's focus on AI-driven gaming experiences [29][31]

Investment Rating - The industry investment rating is "Outperform the Market," indicating an expected relative increase of over 10% in the industry index compared to the broader market within the next six months [4][7]. Core Insights - The number of game approvals in November reached a record high, with 178 domestic games and 6 imported games approved, contributing to a total of 1,532 domestic games approved year-to-date [2][3]. - The game "Star Sand Island," developed by SEED LAB, is positioned in the life simulation genre and has garnered significant market attention, with over 400,000 wish list entries on Steam as of November 13 [2]. - The competitive landscape for life simulation games is expected to intensify in 2026, with major developers like miHoYo and Tencent entering the market, making differentiation crucial for success [2]. Summary by Sections Game Approval Statistics - In November, 178 domestic games and 6 imported games received approval, marking a significant increase in the approval rate [2]. - Year-to-date, 1,532 domestic games and 93 imported games have been approved [2]. Market Trends - The approval of diverse game types indicates a stable trend in the normalization of game approvals, contributing to the ongoing recovery of the industry [3]. - The report highlights the importance of product reserves, R&D capabilities, and diverse thematic layouts for leading companies in the industry [3]. Competitive Landscape - "Star Sand Island" is highlighted as a key title in the life simulation genre, with its success dependent on differentiation and leveraging multi-platform advantages [2]. - The report anticipates a competitive environment with several major players entering the life simulation market, emphasizing the need for unique offerings [2].