Group 1 - The gaming sector continues to experience fluctuations, with the gaming ETF (159869) dropping around 2%, indicating a low-positioning opportunity for investors [1] - Notable performers among holdings include Fuchun Co., Mingchen Health, Huali Technology, and 37 Interactive Entertainment, while companies like Gigabit, Perfect World, Giant Network, and others are seeing significant declines [1] - A boom in domestic shooting games is anticipated from late 2024 to 2025, with Tencent's shooting products showing impressive metrics, such as "Delta Force" achieving 20 million DAU within a year and "Peacekeeper Elite" experiencing over 30% year-on-year growth in average DAU in Q2 2025 [1] Group 2 - The head effect in shooting games is pronounced, with a few products generating substantial revenue, and the "search and destroy" genre gaining popularity due to its immersive experience compared to the "battle royale" format [1] - The gaming sector is undergoing transformations driven by AI, content, and commercialization models, with the gaming ETF (159869) tracking the performance of A-share listed companies in the animation and gaming industry, presenting investment opportunities [2]

Core Insights - Tencent's new game "Delta Action" has quickly become a phenomenon within a year of its launch, contributing significantly to the company's gaming revenue growth [1][5][17] Financial Performance - Tencent reported a 15% year-on-year revenue increase to 184.5 billion yuan in Q2 2025, surpassing market expectations of 178.94 billion yuan [1] - Operating profit (Non-IFRS) rose by 18% to 69.25 billion yuan [1] - Domestic game revenue reached 40.4 billion yuan, up 17% year-on-year, while international game revenue grew by 35% to 18.8 billion yuan [1] Game Performance - "Delta Action" achieved an average daily active user (DAU) count of over 20 million by July, ranking among the top five in the industry for DAU and top three for revenue [5][16] - The game has shown a remarkable 66% increase in DAU within just three months, indicating strong user engagement [5] Market Trends - The success of "Delta Action" reflects a broader trend of rising interest in shooting games within the Chinese market, which is experiencing rapid growth [17][18] - Tencent's executives noted that the Chinese shooting game market is diversifying, with various game modes and styles coexisting without cannibalizing each other [19] Competitive Landscape - Other major companies, including NetEase and various independent studios, are also entering the "looting and extraction" game genre, indicating a competitive environment [15][16] - Tencent's strategy includes launching complementary products like "Rainbow Six: Siege" and "Valorant" mobile versions to enhance its market position [19]