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Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

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<ul><li>Autos / In Depth: Controversial Li Auto video levels spotlight on ‘customized’ crash testing</li><li>AI /Exclusive: NetEase executive explains how AI agents could build a future of virtual teachers</li><li>E-commerce /: Pinduoduo’s growth slows as competition, tariffs hit Temu expansion</li></ul>

Autos / In Depth: Controversial Li Auto video levels spotlight on ‘customized’ crash testingAI /Exclusive: NetEase executive explains how AI agents could build a future of virtual teachersE-commerce /: Pinduoduo’s growth slows as competition, tariffs hit Temu expansion

CX Daily: Controversial Li Auto Video Levels Spotlight on ‘Customized’ Crash Testing 

Thematic (Sector/Industry)

<ul><li>China’s gaming industry surged in the first half of 2025, posting its fastest growth in five years, fueled by hit mobile titles, rising e-sports revenues and the continued boom in mini-games.</li><li>According to an report released Thursday by the China Audio-Video and Digital Publishing Association at the ChinaJoy Digital Entertainment Conference in Shanghai, the domestic gaming market generated 168 billion yuan ($23 billion) in revenue from January to June, up 14.1% year-on-year.</li><li>The country counted 679 million gamers, a modest 0.7% rise, marking the fourth straight year of user growth below 1%.</li></ul>

China’s gaming industry surged in the first half of 2025, posting its fastest growth in five years, fueled by hit mobile titles, rising e-sports revenues and the continued boom in mini-games.According to an report released Thursday by the China Audio-Video and Digital Publishing Association at the ChinaJoy Digital Entertainment Conference in Shanghai, the domestic gaming market generated 168 billion yuan ($23 billion) in revenue from January to June, up 14.1% year-on-year.The country counted 679 million gamers, a modest 0.7% rise, marking the fourth straight year of user growth below 1%.

China Proves a Winner in the Gaming Market as Growth Hits a Five-Year High 

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>NetEase announced 3Q23 financial results on 16 Nov: total revenue increased by 12% YoY to RMB27.3bn, largely in line with our/consensus estimate of RMB28.2/27.3bn; operating income grew by 59% YoY to RMB7.6bn, beating our/consensus estimate by 9/4%, mainly due to enhanced games GPM (+4.0ppt YoY) on optimized channel costs and favourable revenue mix shift.</li><li>Looking ahead, we expect total revenue growth to further accelerate in 4Q23, underpinned by the strong performance of new game titles.</li><li>NetEase’s quality game pipeline, with several highly-anticipated titles to be launched by 2Q24E, will also support its healthy revenue growth in 2024E, in our view. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase announced 3Q23 financial results on 16 Nov: total revenue increased by 12% YoY to RMB27.3bn, largely in line with our/consensus estimate of RMB28.2/27.3bn; operating income grew by 59% YoY to RMB7.6bn, beating our/consensus estimate by 9/4%, mainly due to enhanced games GPM (+4.0ppt YoY) on optimized channel costs and favourable revenue mix shift.Looking ahead, we expect total revenue growth to further accelerate in 4Q23, underpinned by the strong performance of new game titles.NetEase’s quality game pipeline, with several highly-anticipated titles to be launched by 2Q24E, will also support its healthy revenue growth in 2024E, in our view. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase (NTES US) – Games Revenue Growth Accelerated with Solid Margin Expansion

<ul><li>China’s online game market revenue grew by 37.5% YoY to RMB28.6bn in Jul 2023, with growth further accelerating (May/Jun: +16.0/23.6% YoY), according to CNG.</li><li>The strong YoY growth was mainly due to the launch of new games and low-base effect.</li><li>Overseas revenue from China’s self-developed games also returned to positive growth track in July (+7.6% YoY), thanks to the solid performance of Tencent’s and NetEase’s overseas mobile games. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China’s online game market revenue grew by 37.5% YoY to RMB28.6bn in Jul 2023, with growth further accelerating (May/Jun: +16.0/23.6% YoY), according to CNG.The strong YoY growth was mainly due to the launch of new games and low-base effect.Overseas revenue from China’s self-developed games also returned to positive growth track in July (+7.6% YoY), thanks to the solid performance of Tencent’s and NetEase’s overseas mobile games. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Internet – July online game market recap

<ul><li>NetEase announced 2Q23 financial results on 24 Aug: total revenue grew by 3.7% YoY to RMB24.0bn, below our/consensus estimate by 3.4/3.1%, mainly due to softer-than-expected PC game performance.</li><li>But operating income was up 23% YoY to RMB6.1bn, ahead of our/consensus estimate by 7.8/6.5%, supported by the strong GPM improvement (+4.0pct YoY and beat consensus by 2.7pct).</li><li>We raise FY23-25E operating income forecast by 6-8% to reflect the more positive GPM outlook, mainly due to the favourable revenue mix shift to self-developed games and optimized channel costs. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase announced 2Q23 financial results on 24 Aug: total revenue grew by 3.7% YoY to RMB24.0bn, below our/consensus estimate by 3.4/3.1%, mainly due to softer-than-expected PC game performance.But operating income was up 23% YoY to RMB6.1bn, ahead of our/consensus estimate by 7.8/6.5%, supported by the strong GPM improvement (+4.0pct YoY and beat consensus by 2.7pct).We raise FY23-25E operating income forecast by 6-8% to reflect the more positive GPM outlook, mainly due to the favourable revenue mix shift to self-developed games and optimized channel costs. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase (NTES US) – Upbeat on games revenue growth and margin expansion in 2H23E

China

NetEase, Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company's core businesses consist of email service, web portal and online entertainment, including online gaming services. NetEase also offers online advertising, search, mobile applications and e-commerce.

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NetEase Inc (NTES US)

CX Daily: Controversial Li Auto Video Levels Spotlight on ‘Customized’ Crash Testing

TOP STORIES Autos / In Depth: Controversial Li Auto video levels spotlight on ‘customized’ crash testing In the video, a sleek SUV and an 8-ton...

Caixin Global

China Proves a Winner in the Gaming Market as Growth Hits a Five-Year High

China’s gaming industry surged in the first half of 2025, posting its fastest growth in five years, fueled by hit mobile titles, rising e-sports...

Caixin Global

NetEase (NTES US) – Games Revenue Growth Accelerated with Solid Margin Expansion

NetEase’s quality game pipeline, with several highly-anticipated titles to be launched by 2Q24E, will also support its healthy revenue growth in...

CMB International

China Internet – July online game market recap

China’s online game market revenue grew by 37.5% YoY to RMB28.6bn in Jul 2023, with growth further accelerating (May/Jun: +16.0/23.6% YoY),...

CMB International

NetEase (NTES US) – Upbeat on games revenue growth and margin expansion in 2H23E

NetEase announced 2Q23 financial results on 24 Aug: total revenue grew by 3.7% YoY to RMB24.0bn, below our/consensus estimate by 3.4/3.1%

CMB International

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