CITIC Construction Investment Securities: Game platform communities are expected to fully benefit from the high boom in the gaming industry.

The CITIC Securities Research Report stated that the supply and demand in the gaming industry have been strong so far this year. On the demand side, the domestic mobile game market has grown by 20% year-on-year from January to May. On the supply side, the number of domestic game licenses increased by 21% year-on-year from January to June, reaching a new high since 2022 in June. Gaming platform communities are expected to benefit greatly from the high prosperity of the gaming industry. On one hand, the user activity in gaming communities is expected to increase, allowing platforms to increase their advertising revenue without increasing ad loads. On the other hand, the stable operation of evergreen games and the launch of new medium and small-scale games may increase the game download volume and revenue scale of gaming platform communities, thereby driving overall platform performance growth.