Core Viewpoint - The concept of "evergreen games" has emerged as a strategic focus for major Chinese gaming companies Tencent and NetEase, aiming to maintain long-term revenue and player engagement in a mature market where creating new hits is increasingly challenging [1][2][15]. Group 1: Definition and Importance of Evergreen Games - "Evergreen games" refer to titles that sustain high revenue, popularity, and a stable player base over time, serving as cash cows for gaming companies [2][3]. - The strategy of focusing on evergreen games allows companies to leverage existing successful titles while minimizing the risks associated with new game launches [15][29]. Group 2: Market Share and Competition - Tencent and NetEase dominate the evergreen game market, with 20 out of 30 titles listed in the "2024 China Evergreen Game List," accounting for over 70% of the market share and an estimated revenue of $4.85 billion [3][4]. - The competition between Tencent and NetEase is characterized by their different game genres, with Tencent focusing on MOBA and shooting games, while NetEase emphasizes MMORPGs [6][7]. Group 3: Strategic Differences - Tencent has a larger portfolio of evergreen games, with 13 titles listed compared to NetEase's 7, indicating a significant lead in both current and potential evergreen games [8][10]. - The revenue structure also differs, with Tencent generating income from both domestic and international markets, while NetEase primarily relies on domestic revenue [11][14]. Group 4: Industry Context and Challenges - The rise of evergreen games is seen as a response to the industry's "hit-driven anxiety," where companies seek stability in a market that has matured and where user growth is limited [15][16]. - Both companies are adapting to a changing landscape by focusing on cross-platform games and GaaS (Games as a Service) models, which allow for ongoing content updates and player engagement [17][18]. Group 5: Future Outlook and Strategic Focus - The ongoing competition between Tencent and NetEase in the evergreen game sector is expected to intensify, with both companies aiming to secure dominance in their respective genres while exploring international markets [19][24]. - The strategic emphasis on evergreen games is not just a defensive measure but also a proactive approach to ensure long-term growth and sustainability in a highly competitive environment [27][29].

Macroeconomic Group - In April, M2 growth was 8% year-on-year, exceeding the expected 7.5% and the previous month's 7% [2] - The total social financing (TSF) year-on-year growth was 8.7%, slightly below the expected 8.8% and previous month's 8.4% [2] - The incremental TSF in April was 1.16 trillion yuan, lower than the expected 1.26 trillion yuan and significantly down from 5.89 trillion yuan in the previous month [2] Strategy and Advanced Manufacturing Group - Jilin Chemical Fiber announced a price increase of 10,000 yuan per ton for its wet-process carbon fiber products due to rising demand from low-altitude economy and drones [5] - The current market price for carbon fiber is around 200-220 yuan per kilogram, reflecting a 5% increase, the largest since previous price adjustments [5] - The carbon fiber industry is expected to improve as wind power installations grow and military orders resume, indicating a recovery from the worst phase [5] Consumer Group - Marubi Bio achieved a revenue of 2.97 billion yuan in 2024, a year-on-year increase of 33.4%, with a net profit of 330 million yuan, up 73.9% [8] - In Q1 2025, the company reported revenue of 850 million yuan, a 28% increase year-on-year, and a net profit of 130 million yuan, up 28.57% [8] - The eye care product segment saw a revenue of 690 million yuan in 2024, growing 60.8% year-on-year, with Q1 2025 showing an impressive 89.1% growth [9]