The approval pace for domestic game licenses has significantly accelerated this year. According to Guotai Haitong research, 1,195 domestic game licenses were approved in the first three quarters of 2025, far exceeding the 959 licenses issued in the same period last year. Meanwhile, imported game licenses maintained a stable monthly issuance rhythm.
Driven by faster approvals, a wave of new game releases has boosted earnings across listed gaming companies.
As of October 31, all 35 listed companies under Wind’s online gaming concept index have disclosed their Q3 2025 reports. Among them, 19 reported year-on-year growth in net profit attributable to shareholders, with 8 seeing increases exceeding 100%. Three companies turned losses into profits, while four narrowed losses. Notably, Youzu Interactive (002174.SZ) and Shengtian Network (300494.SZ) recorded net profit growth of over 10 times.
In terms of revenue ranking, ST Huatong (002602.SZ), 37 Interactive Entertainment (002555.SZ), and Kunlun Tech (300418.SZ) topped the list for Q1-Q3 2025. ST Huatong led with revenue of RMB 27.22 billion, up 75.31% YoY. By net profit, ST Huatong, 37 Interactive Entertainment, and Kingnet Network (002517.SZ) secured the top three spots.
Meanwhile, Wind’s online gaming concept index (884080.WI) surged 40.37% year-to-date as of October 31. Three companies—ST Huatong, Giant Network (002558.SZ), and G-bits (603444.SH)—saw their share prices more than double, while ST Kevin (002425.SZ) and Glacier Network (300533.SZ) gained over 90%.
**Five Firms Net Over RMB 1 Billion** ST Huatong’s revenue hit RMB 27.22 billion, followed by 37 Interactive Entertainment at RMB 12.46 billion (down 6.59% YoY) and Kunlun Tech at RMB 5.81 billion (up 51.63% YoY). ST Huatong’s Q3 revenue surpassed RMB 10 billion for the first time, setting a quarterly record. Its hit title *Whiteout Survival*, launched in 2023, continues to dominate overseas markets, ranking first in China’s overseas mobile game revenue chart and surpassing 200 million global downloads. Another new release, *Kingshot*, entered the top three within three months of its February launch and contributed significantly to Q3 growth.
37 Interactive Entertainment attributed its performance to refined operations of existing titles and strong contributions from new games like *Time Explosion*, *Heroes Don’t Dodge*, and *Soul Land: Hunting World*.
Kunlun Tech highlighted AI-driven revenue growth and overseas expansion, with international sales rising 58% YoY to RMB 5.41 billion, accounting for 93.3% of total revenue.
ST Huatong, 37 Interactive Entertainment, and Kingnet Network reported net profits of RMB 4.36 billion, RMB 2.35 billion, and RMB 1.58 billion, respectively. Giant Network and G-bits also exceeded RMB 1 billion in net profit, posting RMB 1.42 billion (up 32.31%) and RMB 1.21 billion (up 84.66%).
Giant Network’s casual game *Supernatural Squad* gained traction with its unique horror-cooperative gameplay, surpassing 1 million concurrent players in July. G-bits noted declining revenue from legacy titles like *Ask Tao* but saw strong contributions from new releases such as *Staff & Sword Legends* and *Digging Treasures*, which generated RMB 1.96 billion in gross billing.
**Eight Firms Double Net Profit** Among the 19 companies with profit growth, eight achieved over 100% increases. Youzu Interactive and Shengtian Network led with 1,374.6% and 1,155.49% growth, respectively, though their surges were partly due to low bases in 2024.
Tatwah InfoTech (002261.SZ) ranked third with 852.03% net profit growth to RMB 105 million, though its non-recurring gains accounted for most of the increase. Perfect World (002624.SZ), Glacier Network, and Rastar Group (300043.SZ) swung to profits of RMB 666 million, RMB 502 million, and RMB 268 million, respectively.
Perfect World’s *Jade Dynasty World* PC game and *Jade Dynasty 2* drove MMORPG growth, while *Persona: Phantom of the Night* expanded its overseas footprint. Glacier Network cut sales expenses by 52.31% to RMB 911 million by optimizing ad spending efficiency. Rastar Group’s turnaround was fueled by its divestment of Spanish football club Espanyol, which had previously weighed on earnings.
**Sector-Wide Rally** The gaming sector’s recovery lifted share prices, with 20 companies under Wind’s index gaining over 20% YTD. ST Huatong soared 241.83%, followed by Giant Network (180.26%) and G-bits (121.97%). ST Kevin and Glacier Network rose over 90%, while Perfect World and Rastar Group climbed 68.51% and 71.81%.
Analysts attribute the rally to broader market trends and the sector’s alignment with AI themes, benefiting from tech-driven growth opportunities.
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