2026-01-07 03:05Summary of China Online Gaming Industry Journal (Dec 2025 Edition) Industry Overview - The report focuses on the China Online Gaming Industry, highlighting key insights from various companies and market trends in the sector [1][2]. Key Companies Mentioned - Century Huatong - 37 Interactive Entertainment - Perfect World - Kingnet - G-Bits - Giant Network Core Insights and Arguments 1. Market Performance: The A-share gaming sector experienced a rally in early January, indicating a positive sentiment towards the industry. The focus is on the monetization potential of the upcoming game cycle and performance during the Chinese New Year promotion [1]. 2. Earnings Visibility: There is an emphasis on strengthening shareholder returns to boost market confidence in earnings visibility as the sector approaches 2026 [1]. 3. Constructive Outlook: The report maintains a positive outlook on the China online gaming sector, citing quality earnings growth, accelerating overseas expansion, and increased exposure to AI gaming [1]. 4. Company Rankings: The new A-share gaming pecking order is established as follows: Century Huatong > Kingnet > Giant Network > 37 > G-Bits > Perfect World [1]. Financial Highlights - Global Mobile Game Revenues: According to AppMagic, global mobile game grossing remained stable with a 0.5% year-over-year increase, while downloads rose by 4.6% year-over-year. Notably, 12 of the top 30 most profitable mobile games globally were developed by Chinese studios [2]. - Top Performers: Among the top 30 mobile games, Whiteout Survival from Century Games was highlighted as the fastest-growing mobile game globally, achieving 50% year-over-year grossing growth [2]. Company-Specific Updates 1. Century Huatong: Released the domestic version of High Seas Hero on WeChat mini game and is testing multiple new strategy games in domestic and overseas markets [3]. 2. 37 Interactive Entertainment: The mini game Survival in 33 Days achieved significant traction, reaching the 2 position in WeChat mini game grossing in December 2025 [4]. 3. Perfect World: Announced the third round of closed beta testing for Neverness to Everness, available on multiple platforms [5]. 4. Kingnet: Launched a new MMORPG titled Divine in South Korea, featuring unique gameplay mechanics [6]. Additional Insights - The report suggests that the recent performance of 37 Interactive Entertainment supports its potential for re-rating as a sector laggard following the removal of regulatory overhang [4]. - The focus on AI gaming exposure indicates a trend towards integrating advanced technologies in game development, which could enhance user engagement and monetization strategies [1]. Conclusion The China Online Gaming Industry is poised for growth, driven by strong earnings potential, innovative game releases, and a favorable market environment as it heads into 2026. The emphasis on shareholder returns and AI integration reflects a strategic approach to enhance competitiveness in the global gaming landscape [1][2].