Summary of the Conference Call on Gaming Industry and "Delta Action" Industry Overview - The gaming industry is witnessing a significant evolution in shooting games, categorized into three main phases: traditional FPS (e.g., CS, CF), battle royale (e.g., PUBG, Peacekeeper Elite), and hardcore looter shooters (e.g., Escape from Tarkov, Delta Action) [2][6][16]. Key Concepts and Arguments - **"Search and Extract" Gameplay**: This high-risk, high-reward model requires players to enter the battlefield with external gear, scavenge for resources, and defeat enemies to successfully extract and gain rewards. Failure results in the loss of all equipment, akin to gambling psychology [2][3][5]. - **Evolution of Shooting Games**: The transition from traditional FPS to battle royale and now to hardcore looter shooters reflects changing player preferences and gameplay complexity. The hardcore genre, while initially difficult to access, is gaining popularity [6][16]. - **Classification of Looter Shooters**: Looter shooters are divided into three categories: hardcore (e.g., Delta Action), mid-light (e.g., Super Burn Action Group), and X+ looter shooters (e.g., Sausage Party, Egg Party). Each category caters to different player demographics and preferences [7][16]. Delta Action Specifics - **Core Gameplay Mechanics**: Delta Action features three main gameplay modes: Fire Zone (simplified Tarkov), Full Battlefield (PVP), and Black Hawk Down (single-player narrative). Players can choose from 12 operators across four classes, each with unique skills that influence combat strategies [8][9]. - **Teamwork and Strategy**: The game emphasizes teamwork, with AI-controlled NPCs providing auditory cues to locate other players. Players can choose to avoid combat or ambush others for valuable loot [10][11]. - **Economic Mechanisms**: Players can purchase larger insurance boxes to secure high-value loot, promoting an economic cycle within the game and enhancing user retention [12][15]. Market Potential and Trends - **X+ Looter Shooter Growth**: The X+ looter shooter category is expected to grow significantly due to its combination of hardcore gameplay with broader appeal, particularly attracting female players. Current leading titles like Super Burn Action Group demonstrate innovative gameplay and market potential [14][16]. - **Comparison with Other Titles**: Delta Action is less hardcore than similar games like Dark Zone Breakthrough, making it more accessible to new players. This accessibility is crucial for expanding the player base [13][16]. Additional Insights - **Psychological Appeal**: The "Search and Extract" gameplay's gambling-like risk-reward structure is a major draw for players, contributing to its rising popularity [3][5]. - **Future Trends**: The gaming industry is likely to see continued innovation in gameplay mechanics and player engagement strategies, with X+ looter shooters potentially becoming a dominant trend in the coming years [16].

Core Insights - The report highlights a positive outlook for MEMS inertial navigation, X-ray detection, and the export of air separation equipment, driven by growth in downstream applications such as low-altitude economy, autonomous driving, and robotics [3][6] - The industrial X-ray detection market is expected to experience structural growth due to strong demand from the electronics and semiconductor industries, as well as recovery in the lithium battery sector [3][6] - The air separation equipment market, primarily used in coal chemical, petrochemical, metallurgy, and nuclear power industries, has a market space exceeding 100 billion yuan, with increasing export activities under the Belt and Road Initiative [3][6] Industry Performance - The report notes that the new housing transaction area has increased month-on-month, while year-on-year comparisons show a decline in 20 cities for second-hand housing transactions [5][14] - The land transaction area has decreased year-on-year, but the premium rate has increased month-on-month, indicating a competitive land market in certain regions like Tianjin [5][14][16] - The issuance of domestic credit bonds has increased significantly, with a year-on-year rise of 606% and a month-on-month increase of 63%, reflecting improved market conditions [17] Market Trends - The gaming industry is expected to benefit from innovative gameplay and a surge in demand for new titles, with the monthly issuance of game licenses projected to reach 135 in the first half of 2025 [11][12] - The report emphasizes the potential for AI virtual social applications, particularly with the development of AI companions, which could lead to significant commercial opportunities [12] - The three-dimensional visual digitization market is projected to reach 40.01 billion yuan by 2027, with a compound annual growth rate of 26.6%, driven by the shift from 2D to 3D applications in various industries [8]

Group 1: Company Performance - NetEase reported a strong Q1 financial performance, with game and related value-added service revenue reaching 24 billion yuan, a year-on-year increase of 12.1%, accounting for 83.2% of total revenue [1] - The gaming sector continued its upward trend, with listed companies in the gaming sector achieving a total revenue of 26.72 billion yuan in Q1, a year-on-year growth of 22%, and a net profit of 3.48 billion yuan, up 47% [1] - Jiuhua Tong achieved a revenue of 8.145 billion yuan in Q1 2025, a year-on-year increase of 91.12%, with a net profit of 1.346 billion yuan, up 107.95%, significantly outperforming the industry average [4] Group 2: Industry Trends - The gaming industry is experiencing a recovery growth trend, with the issuance of game licenses and the launch of new products contributing to this resurgence [3] - The Chinese gaming market generated a revenue of 85.704 billion yuan in Q1 2025, a year-on-year increase of 17.99%, with overseas sales of self-developed games reaching 4.805 billion USD, up 17.92% [4] - The mobile gaming market accounted for nearly 74% of the overall market, with mobile game revenue reaching 63.626 billion yuan, a year-on-year increase of 20.29%, while client games also showed growth with a revenue of 17.919 billion yuan, up 6.85% [5] Group 3: Game Development and Innovation - Companies are focusing on long-term operation of existing games, with innovative gameplay and continuous content updates maintaining user engagement, as seen with titles like "Sausage Party" and "Aobi Island" [5] - The first domestic AAA single-player game "Black Myth: Wukong" has increased interest in console games, prompting companies like Light Media to invest in AAA game development [6] - AI technology is being integrated into game design and development, with companies like Zhongyou Mobile deploying AI models to enhance gameplay and user interaction [7] Group 4: Future Outlook - The gaming industry is expected to see accelerated growth due to the introduction of key products and the adoption of new technologies such as 5G-A and XR devices, which may enhance performance and valuation [9] - The trend of "going global" for Chinese games is gaining momentum, with companies actively expanding their overseas markets and achieving significant revenue growth [4][8]