The gaming industry continues its upward trajectory, with top-tier companies delivering standout performances. In Q3 2025, sector revenue reached RMB30.36 billion, marking a 28.6% year-on-year (YoY) and 9.48% quarter-on-quarter (QoQ) increase, sustaining Q2’s momentum. Industry profits surged 112% YoY to RMB5.78 billion, with margins hitting 19%, reflecting significant YoY and QoQ improvements. Combined with robust top-line growth, aggregate net profit attributable to shareholders jumped 112% YoY.

Key players such as ST Huatong (002602.SZ), 37 Interactive Entertainment (002555.SZ), Giant Network (002558.SZ),愷英網絡 (002517.SZ), and吉比特 (603444.SH) each reported quarterly net profits exceeding RMB500 million, all achieving growth rates above 35%.

**Policy Support and Product Performance** Stable licensing approvals and a thriving client-game market bolstered Q3 results. Domestic game licenses hit a record high, while imported titles maintained steady monthly issuance. By 2025, 1,354 domestic licenses were granted, surpassing 2024’s full-year total of 1,306. China’s gaming market revenue grew 7.11% YoY for January–September 2025, with client-game revenue notably buoyed by premium products. Mobile gaming saw a slight YoY dip due to 2024’s high base effect.

**Spotlight on Leading Companies** 1) **愷英網絡**: Q3 net profit hit a record RMB630 million (+34.5% YoY), with gross margins rising to 84.2%, driven by high-margin segments like *996 Legend Box*. The product leverages the RMB30 billion "Legend" IP ecosystem, offering gaming, community, live streaming, and account trading services. Post-July 2025 IP licensing deals with three industry leaders, the company’s growth outlook remains optimistic.

2) **Giant Network**: Adjusted Q3 revenue doubled QoQ to RMB2.15 billion, fueled by flagship title *Supernatural Action Group*, which maintains biweekly updates and a steady Top 20 position on iOS’s grossing chart.

3) **吉比特**: Net profit skyrocketed 307.7% YoY to RMB569 million, at the upper end of guidance. *Staff & Sword* generated RMB1.17 billion in domestic revenue (Jan–Sep), while *Treasure Hunter* (launched May 2025) contributed RMB316 million by September. Upcoming global releases like *Sword of Immortality* and SLG title *Nine Wilds* are expected to boost 2026 performance.

4) **ST Huatong**: *Whiteout Survival* sustained stable global performance, with new title *Kingshot* validating the "casual + SLG" hybrid model, ranking closely behind *Whiteout Survival* overseas and climbing domestic charts.

**Risks**: Product delays, slower AI adoption, and intensifying competition.