China Gaming Equities: Company visit takeaways

During 1-15 Sep 2026, we visited leading companies in the gaming industry. Most gaming companies are constructive on overseas markets, especially SLG and casual games, where Chinese companies have advantages over overseas players, including faster content iteration, higher traffic-purchase, and more meticulous customer service. Century Huatong had several successful SLG launches in 2025 and plans new SLG games in 2H26, including 'Lordrush', which entered the top 80 of the US iOS top grossing chart; Sanqi has stepped up marketing for SLG games since the start of 3Q26, with revenue from 'Last Asylum' rising rapidly in July-August. In the domestic market, attracting younger players is key, with Giant Network's 'Supernatural Action Squad' reaching record-high DAU of 12 million in the summer holidays. AI adoption is deepening in game development: for Sanqi, AI-assisted 2D art assets accounted for over 80%, 3D over 30%, and AI-generated advertising videos over 70%;