The Zhitong Finance App learned that Huajin Securities released a research report saying that on the afternoon of December 24, the State Press and Publication Administration released “Domestic Online Game Approval Information for December 2024” and “Approval Information for Imported Online Games in December 2024". A total of 135 games received edition numbers, the highest number in the year. Edition distribution reached a record high, and the trend in the domestic game industry was improving throughout the year; leading manufacturers brought high-quality content IP products through the review, creating positive expectations for the game industry in the coming year. Recommended attention: Tencent Holdings (00700), NetEase - S (09999), Bilibili W (09626), Tom Cat (300459.SZ), 37 Entertainment (002555.SZ), etc.

The main views of Huajin Securities are as follows:

Incident: On the afternoon of December 24, the State Press and Publication Administration released “Domestic Online Game Approval Information for December 2024” and “Approval Information for Imported Online Games in December 2024". A total of 135 games received version numbers, the highest number in the year. The number of Chinese versions is 122, and there are 13 imported game versions. Companies such as Tencent, NetEase, 37 Entertainment, Kaiying Network, and Shell are all on the list. A record number of editions were distributed at the end of the year, driven by high-quality content and strong IP, empowering the healthy development of the game industry.

The distribution of versions is diversified, and multiple platforms at home and abroad help the development of the game industry. The number of domestic editions this time was 122, divided by application categories: 120 “mobile” models; 33 “mobile-leisure and educational” models; 1 “client” model; and 1 “VR game”. 8 models received mobile and client versions at the same time, and 2 models received mobile, client, and game console versions at the same time. In addition to domestic versions, 13 imported game versions were released this afternoon. Eleven are mobile versions. Of these, 2 have received mobile and client versions, and 2 client-only versions. The distribution of versions is diversified, and multi-terminal and multi-platforms inject strong momentum into the game industry, enrich the supply side, and expand the domestic game ecosystem.

The number of editions distributed has broken records, and content and IP drive a boom in high-quality products. A total of 135 games have received edition numbers. The products approved in the “Mobile” category are: Tencent's “Monster Hunter: Traveler”, NetEase's “Infinity”, Erha's “Red Alert: Glory”, “Ancient Book Restorers”, “Pixel City at Your Fingertips”, Kiki's “Seventh Century Survivor”, “Shifting Through the Dark”, Lanfei Entertainment's “Catch the Giant Goose”, “Catch the Giant Goose”, “Dragon Warrior”, “Three Kingdoms: Overlord” and “Rise of the Three Kingdoms” and “Rise of King of the Three Kingdoms” “Soldiers Fight the World”, Gauteng Interactive's “King of the Fat Goose”, Migu Interactive's “Kuroko's Basketball: Street Showdown”, Youxing's “Surviving the Mine”, and Le Niu's “ “Legend of the Hunting Wind”, Zulong's “The Lost Fairy Tale”, 4399 “Journey to the West Dream”, etc.; products approved in the “Client” category include NetEase's “Infinity”, “Number One Chase”, and “Eternal Reincarnation” by Dream World. A number of well-known manufacturers gathered in December to intensively review high-quality content and IP-driven game products to look forward to the positive development of the game industry in the coming year.

Domestic game market revenue and user volume both reached new highs in 2024. According to the “2024 China Game Industry Report” issued by the Game Industry Committee of the China Audio and Digital Association, in 2024, the actual sales revenue of the domestic game market was 325.783 billion yuan, an increase of 7.53% over the previous year, and reached a new high. The number of game users was 0.674 billion, up 0.94% year over year, and is also a record high. Main driving forces: the number of new games has increased and become popular; various Evergreen products are operating smoothly; small games have impressive performance and strong growth momentum; multi-terminal distribution and cloud games have brought convenience to user consumption.

Investment suggestions: Release numbers reached a record high, and the trend in the domestic game industry was improving throughout the year; leading manufacturers brought high-quality content IP products to the review, creating positive expectations for the game industry in the coming year. Recommended attention: Tencent Holdings, NetEase - S, Bilibili - W, Tom Cat, 37 Entertainment, Kaiying Network, Giant Network, Gibbit, Shunwang Technology, Zhangqingbao, Shanghai Film, Kuaishou-W, Yao Ji Technology, etc.

Risk warning: policy volatility, new tourism performance falling short of expectations, risk of macro-environmental fluctuations, etc.