Summary of G-Bits (603444.SS) FY25 Preliminary Results Conference Call Company Overview - **Company**: G-Bits (603444.SS) - **Industry**: Gaming Key Financial Highlights - **FY25 Preliminary Results**: - Reported earnings guidance: Rmb1.69-1.86 billion, representing a year-over-year increase of 79-97% [2] - Core earnings guidance: Rmb1.65-1.8 billion, reflecting an increase of 88-105% year-over-year [2] - 4Q25 net profit expected: Rmb476-646 million, a year-over-year increase of 66-125% [2] - **Comparison to Estimates**: - Mid-point of reported earnings is in line with the analyst's estimate of Rmb1.77 billion and 8% above the market consensus of Rmb1.64 billion [2] Game Contributions - **Key Titles Driving Growth**: - New game contributions from "Scepter & Sword" and "Wen Jian Chang Sheng" in both domestic and overseas markets [2] - Launch of mini game "Dao You Lai Wa Bao" also contributed to earnings [2] Future Expectations - **Upcoming Releases**: - "Jiu Mu Zhi Ye" Season 2 launching on February 7, featuring new gameplay elements and characters [3] - **4Q25E and 2026E Forecasts**: - 4Q25E revenue forecast: Rmb1.52 billion, a 73% year-over-year increase, but a 23% quarter-over-quarter decrease [4] - 2026E total revenue forecast: Rmb6.18 billion, a 2.6% year-over-year increase [4] Market Position and Strategy - **Investment Recommendation**: - Maintain "Buy" rating with a target price of Rmb550, indicating a potential share price return of 20.9% and a dividend yield of 4.1% [6] - **Market Capitalization**: Rmb32,779 million (approximately US$4,715 million) [6] Risks and Challenges - **Downside Risks**: - Concentrated game portfolio with a mature life cycle [10] - Potential for softer monetization performance of key titles in the remainder of 2025 [10] - Risks associated with slower new game launches and lower profitability due to weaker operating leverage [10] Conclusion - G-Bits is positioned for growth driven by new game releases and strong preliminary earnings. However, investors should be cautious of potential risks related to its game portfolio and market conditions. The company remains a strong buy based on its resilient earnings and growth prospects.

Summary of China Online Gaming Industry Journal (Nov 2025 Edition) Industry Overview - The report focuses on the **China Online Gaming Industry**, highlighting key data and updates from various companies within the sector, including **Century Huatong**, **37 Interactive Entertainment**, **G-Bits**, and **Kingnet** [1][22]. Key Highlights 1. **Industry Growth**: - The China domestic game market reached **Rmb 31.4 billion** in October 2025, reflecting a **7.8% year-over-year (yoy)** and **5.7% month-over-month (mom)** growth, primarily driven by National Day promotions [1][22]. - The **PC gaming segment** grew by **29.4% yoy** and **1.9% mom** to **Rmb 7.23 billion**, with notable contributions from games like **Delta Force** (Tencent) and **Where Winds Meet** (NetEase) [1][22]. - The **mobile gaming segment** saw a **2.4% yoy** and **5.3% mom** increase to **Rmb 22.6 billion**, driven by promotions for **HoK** (Tencent) and **Genshin Impact** (miHoYo) [1][22]. 2. **Company Performance**: - **Century Huatong**'s game **Whiteout Survival** climbed to **3** in mobile grossing rank, adding over **Rmb 100 million** in sequential grossing [1][22]. - **Overseas grossing** from Chinese studios increased by **11.9% yoy** and **11.0% mom** to **US$ 1.80 billion**, with top performers including **Arknights** (Hypergryph) and **Genshin Impact** (miHoYo) [1][22]. 3. **Investment Outlook**: - Despite a soft sentiment in the A-share gaming sector, the report maintains a positive outlook for most A-share gaming companies, citing a rich game pipeline and competitive advantages in overseas markets [1][22]. - The recommended pecking order for A-share gaming companies is: **Century Huatong > Kingnet > Giant Network > G-Bits > 37 > Perfect World** [1][22]. Company Updates - **Century Huatong**: - Announced the first beta for **Uncharted Waters: Origin** and **La Tale Mobile**, indicating ongoing development and expansion in mobile gaming [2]. - **37 Interactive Entertainment**: - Launched a survival RPG **Survival in 33 Days**, which quickly entered the top 30 in WeChat mini game grossing [2]. - **G-Bits**: - Conducted the final beta for **Jiu Mu Zhi Ye**, with an official launch scheduled for December 18 [2]. - **Kingnet**: - Announced a new Android closed paid beta for **Soul Land** [3]. Additional Insights - The report emphasizes the potential for **portfolio diversification** through investments in the online gaming sector, especially in light of current market conditions focused on AI [1][22]. - The performance of mobile games during promotional periods, such as National Day, highlights the importance of marketing strategies in driving revenue growth [1][22]. This summary encapsulates the essential insights and data from the China Online Gaming Industry Journal, providing a comprehensive overview of the current state and future outlook of the sector.