Core Insights - The core viewpoint of the article highlights the financial performance and challenges faced by Mihayou, particularly focusing on the wealth growth of its founder, Cai Haoyu, and the company's position in the gaming industry [1][2][3]. Company Performance and Wealth Growth - Cai Haoyu's wealth increased by 8 billion RMB, reaching 81 billion RMB, marking an 11% growth year-on-year [1][4]. - The growth is attributed to the stable performance of Mihayou's core games, especially the flagship title "Genshin Impact" and the new game "Honkai: Star Rail," which have been significant revenue drivers despite a decline from peak income levels [2]. - Mihayou has implemented aggressive cost-cutting measures since late 2024, including reducing marketing expenditures and optimizing cloud service costs, which have contributed to improved profit margins [2]. Challenges and Future Potential - Mihayou faces challenges due to a lack of new product releases, with "Genshin Impact" experiencing player attrition and the anticipated new title "Honkai: Star Rail" underperforming in the market [3]. - The gaming industry is witnessing intensified competition, particularly in the anime game sector, which poses additional pressure on Mihayou [3]. - Future potential lies in Mihayou's commitment to technological innovation and global expansion, with efforts to reduce development costs through AI and the introduction of new gameplay features [3]. - The company is in a transitional phase, with Cai Haoyu's wealth growth reflecting profitability, while the decline in ranking signals growth challenges that need to be addressed for future success [3].

Group 1 - President Xi Jinping announced China's new round of Nationally Determined Contributions at the UN Climate Change Summit, aiming for a 7%-10% reduction in greenhouse gas emissions by 2035, with non-fossil energy consumption exceeding 30% of total energy consumption [3] - The total installed capacity of wind and solar power is targeted to reach over 360 million kilowatts, six times that of 2020, and forest stock is expected to exceed 24 billion cubic meters [3] - The national carbon emissions trading market will cover major high-emission industries, and a climate-adaptive society is to be fundamentally established [3] Group 2 - Premier Li Qiang emphasized China's commitment to maintaining an open trade and investment market during a meeting with the President of the European Commission, urging fair competition and adherence to WTO rules [5] - The Chinese government will not seek new special and differential treatment in current and future WTO negotiations, reinforcing its role as a responsible developing country [5] - The People's Bank of China announced a 600 billion yuan MLF operation on September 25, marking a net injection of 300 billion yuan for the month, continuing a trend of high liquidity [5][6] Group 3 - Alibaba announced a collaboration with NVIDIA on Physical AI, with plans to invest 380 billion yuan in AI infrastructure and the launch of seven large model products, including Qwen3-Max, the largest and most capable model to date [4] - The Chinese Ministry of Commerce introduced 14 measures to promote digital consumption, including trials for smart connected vehicles and drone delivery services [6] Group 4 - The A-share market saw significant gains, with the Shanghai Composite Index rising 0.83% to 3853.64 points, and the ChiNext Index increasing by 2.28% [8] - The Hong Kong Hang Seng Index rose 1.37%, with notable gains in tech stocks like Alibaba and SMIC, while medical stocks faced declines [8] - Chery Automobile announced its H-share final offering price at 30.75 HKD per share, set to officially list on September 25 [8] Group 5 - The State Administration for Market Regulation is seeking public opinion on new standards for food delivery platforms, addressing issues like competition and delivery personnel rights [11] - The National Press and Publication Administration approved 145 domestic games and 11 imported games in September, indicating a positive trend in the gaming industry [12] Group 6 - The global crude steel production in August was 145.3 million tons, a year-on-year increase of 0.3%, while the cumulative production from January to August saw a decline of 1.7% [23] - The UK government faced challenges in issuing new bonds, with the latest five-year bond auction seeing the lowest oversubscription rate in nearly two years [20]

Core Points - In September, 145 domestic online games and 11 imported online games received approval from the National Press and Publication Administration [1] - A total of 1,275 games have been approved in 2025, including 1,195 domestic and 80 imported games [1] - Major companies like NetEase and miHoYo have multiple key games approved, including "Starry Friends" and "Honkai: Origin Spirits" [1][2] Industry Summary - The new batch of approved domestic games includes 135 mobile and mobile-casual games, 2 client games, and 1 mobile + web game [1] - The continuous issuance of game approvals has positively impacted the gaming industry, with the Shenwan gaming industry index rising 85% this year, ranking third among all Shenwan secondary industries [2] - On September 24, the Shenwan gaming industry index surged by 3.63%, with several A-share gaming companies, including ST Huayuan and Giant Network, seeing over 100% increase in stock prices [2] Company Summary - A-share companies like Giant Network and 37 Interactive Entertainment have games approved, including "Hot Blood Dynasty: Basketball" and "Endless Night" [1] - Hong Kong-listed companies Tencent and NetEase have also seen significant stock price increases this year, with gains of 56.87% and 76.42% respectively [3]

Core Viewpoint - MiHoYo has taken significant legal action against game content leaks, reflecting its challenges in maintaining growth despite the success of its flagship games, Genshin Impact and Honkai: Star Rail [1][8]. Group 1: Legal Actions and Industry Impact - MiHoYo's "Special Action Against Game Leaks" has resulted in criminal measures against leakers and court orders to cease infringement activities [1][3]. - The leaked content includes unreleased game characters and software testing packages, with over 260 leakers held accountable [3][5]. - Industry experts warn that leaks can lead to competitors mimicking content, potentially damaging MiHoYo's reputation as an original creator [5][6]. Group 2: Financial Performance and Challenges - Genshin Impact has been a major revenue source, contributing over 70% of MiHoYo's income since its launch in 2020 [3][8]. - MiHoYo has faced declining rankings among mobile game publishers, often falling out of the top three in revenue [8][11]. - The player base for Genshin Impact is showing signs of fatigue, with some long-term players considering quitting due to repetitive gameplay and high costs associated with character acquisition [11][12]. Group 3: New Game Releases and Market Reception - MiHoYo's new title, Honkai: Star Rail, has become the second-largest revenue contributor since its release in 2023 [3][8]. - The new IP, Zenless Zone Zero, has underperformed, generating only one-third of Honkai: Star Rail's first-month revenue and dropping out of the iOS top 100 within 41 days [12]. - MiHoYo is attempting to diversify its game offerings, as seen with the upcoming release of Honkai: Star Rail's new game, Honkai: Inheritance Spirits, to compete in various genres [12][13].

Core Viewpoint - MiHoYo's recent "rights protection storm" reflects its growth bottleneck after rapid development, despite still relying on "Genshin Impact" and "Honkai: Star Rail" for revenue [3][12]. Group 1: Leak Management and Impact - MiHoYo has taken criminal measures against leakers of unreleased content from "Genshin Impact" and "Honkai: Star Rail," with over 260 leakers held accountable [4][6]. - Leaked content can lead to competitors mimicking features, potentially damaging MiHoYo's reputation as an original creator [6][7]. - The leaks disrupt the marketing strategy, causing user traffic to shift to unofficial channels, increasing revenue-sharing costs [7][9]. Group 2: Revenue and Market Position - MiHoYo has faced challenges in maintaining its position among the top mobile game publishers in China, frequently dropping out of the top three in revenue rankings [3][9]. - "Genshin Impact" has been a significant revenue source, contributing over 70% of MiHoYo's income since its launch in 2020, but is now facing player fatigue as it enters its fifth year [4][10]. - "Honkai: Star Rail," launched in 2023, has become the second major revenue pillar, but its performance has not met expectations [12]. Group 3: Player Engagement and Retention - Players are expressing dissatisfaction with the game's monetization mechanics, particularly the high costs associated with obtaining rare characters [11]. - The rapid consumption of game content by players outpaces MiHoYo's update schedule, leading to a decline in player engagement [10][11]. - New IP "Zhongli" has underperformed, with its first-month revenue only one-third of "Honkai: Star Rail," indicating challenges in replicating past successes [12]. Group 4: Internal Management and Future Strategies - The leaks highlight potential weaknesses in MiHoYo's internal confidentiality management and the need for better training and restrictions on employees and partners [7][8]. - MiHoYo is exploring new game genres, as seen with the upcoming "Honkai: Inheritance Spirits," to diversify its offerings and compete with other major players like Tencent [12].

Group 1 - The gaming industry is receiving systematic policy support since 2025, enhancing its healthy development with initiatives like the "Special Action Plan to Boost Consumption" released in March, which promotes gaming and esports consumption [1] - Various regions including Beijing, Shanghai, Guangdong, Zhejiang, Hainan, and Sichuan have introduced policies to support the gaming industry, providing strong backing for innovation and development [1] - Long-standing games and classic IPs remain crucial for gaming companies, serving as a stabilizing force while new gameplay trends emerge [1] Group 2 - Major companies are enhancing their long-term operational capabilities and increasing new product supply as dual engines for growth, with leading firms leveraging classic IPs and continuous content updates to build a solid performance foundation [1] - Tencent's products like "Honor of Kings" and "Peacekeeper Elite" continue to evolve, boosting user engagement and supporting revenue growth [1] - New game releases are being accelerated, with companies like NetEase expanding into single-player games and notable titles such as "Return to Tang" generating market interest [1][2]

Investment Rating - The report maintains a "Recommendation" rating for the media industry, expecting the industry index to rise more than 5% over the next 3-6 months compared to the benchmark index [45]. Core Insights - The media sector is currently experiencing a significant shift towards AI applications, with a focus on content output enhancing cultural confidence. The report anticipates 2025 to be a pivotal year for the explosion of open-source large models and the reshaping of application landscapes, particularly in public cloud value reconstruction and industry growth recovery [6][27]. - The report highlights the impressive performance of Alibaba Cloud, which achieved revenue of 33.4 billion yuan in Q2 2025, marking a year-on-year increase of 26% [6][31]. - The gaming sector is expected to see a high growth inflection point in Q3, with several companies showing promising mid-year results and new product expectations [6][28]. - Google's recent launch of the AI image model "Nano Banana" is noted for its superior image editing capabilities, which are expected to accelerate applications in e-commerce, advertising, design, film, and gaming [28][29]. Market Performance - The media sector index rose by 1.05% last week, underperforming the CSI 300 index, which increased by 2.71%, resulting in a relative underperformance of 1.66% [7][8]. - The total market capitalization of the media sector is approximately 189.15 billion yuan, with 140 listed companies [3]. Gaming Market - The report indicates that Tencent's products dominate the iOS gaming sales rankings, with "Honor of Kings" and "Peacekeeper Elite" holding the top two positions [14]. - The gaming sector is expected to benefit from the recent approval of 166 domestic game licenses, indicating a positive trend in the market [30]. Film Market - As of August 29, 2025, the film box office has reached 35.086 billion yuan, recovering approximately 85% of the box office compared to the same period in 2019 [18][21]. - The report notes that the summer box office for 2025 has surpassed 11 billion yuan, with significant contributions from films like "Nanjing Photo Studio" [30]. AI Developments - The report emphasizes the importance of AI integration across various sectors, with the Chinese government promoting the "Artificial Intelligence +" initiative to enhance productivity and economic growth [27]. - The launch of Google's "Nano Banana" model is highlighted for its ability to generate high-quality images quickly and cost-effectively, which is expected to lower barriers for users in various industries [28][29].

Core Insights - Genshin Impact is undergoing significant changes in its commercialization strategy, including the development of a new UGC gameplay mode called "Qianxing Qiyu" [1][4][19] - The game has reached a critical point in its lifecycle, having been active for nearly five years, and is facing challenges related to long-term player engagement and monetization [1][19] - Recent updates and new gameplay features have sparked mixed reactions from players, highlighting a growing tension between monetization efforts and player experience [10][19] Group 1: Commercialization and Gameplay Changes - The upcoming "Kongyue Zhi Ge" version is a signal of Genshin Impact's shift in gameplay planning, featuring a complex narrative involving multiple factions [5][19] - The new UGC mode "Qianxing Qiyu" is being developed by miHoYo's Singapore team and is expected to introduce independent gameplay mechanics and monetization opportunities [7][9] - The introduction of new gameplay features, such as the card battle mode "Qisheng Zhaohuan," has received a lukewarm response, indicating potential misalignment with player expectations [10][11] Group 2: Player Reactions and Challenges - Players have expressed dissatisfaction with the high requirements for character diversity in new gameplay modes, which they feel pressures them to spend more money [12][14] - The ongoing tension between monetization strategies and player enjoyment has led to a decline in player engagement and trust [17][19] - The company faces the challenge of balancing commercial goals with maintaining a positive player experience, as evidenced by the backlash against certain gameplay mechanics [19] Group 3: Future Developments and New Projects - miHoYo is diversifying its portfolio by developing new games, including "Xingbugudi" and "Honkai: Twine Anima," to explore new growth opportunities [18][19] - The return of "Genshin's father," Cai Haoyu, to miHoYo has generated interest in the potential for innovative game development [18][19] - The company is at a crossroads, needing to find a new balance between its established IP and new ventures to ensure sustainable growth [19]