Haitong: Continues to be optimistic about investment opportunities in AI applications.

Haitong released a research report stating that recently, Volcano Engine has released the Dou Package Visual Understanding Model, which has performed well in content recognition, understanding inference, visual description, and other aspects. By the end of December 2024, the Dou Package Large Model family has released and upgraded 14 models, with a daily call volume exceeding 40 trillion tokens, widely used in over 50 internal business scenarios and over 30 external industries. Internet giants represented by ByteDance in China are still increasing capital investment steadily, and are expected to accelerate the development of China's AI ecosystem in the future. Currently, the application level is still in the breakthrough stage from 0 to 1, and with the continuous realization of user data, it is expected to experience explosive growth. The outlook for AI application investment opportunities remains positive. In terms of gaming, in December 2024, the National Press and Publication Administration issued 122 domestic and 13 imported network game licenses, continuing the healthy trend of normalized license issuance. According to GameLook's WeChat public account statistics, in the whole year of 2024, the National Press and Publication Administration issued a total of 1416 new game licenses, including 1306 domestic game licenses and 110 imported game licenses. The total number of licenses issued increased by 32% year-on-year, which is 2.75 times the low point in 2022 and has returned to the level of license issuance in 2020. In addition, with the approaching of the Spring Festival holiday in 2025, several key films such as "Detective Tang 1900," "Ne Zha: The Enchanted Little Myth," and "Fengshen Part II: Fire of West Qi" have been scheduled. Haitong believes that with multiple favorable factors such as high-quality film supply and cinema ticket subsidies, the overall box office for the 2025 Spring Festival holiday is expected to reach a new high. They recommend paying attention to the direction of film and television, short dramas, and other content.