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    Development of Xiamen ACG Industry

    I. Steady Increase in Scale and Strength
    The ACG industry in Xiamen has been growing at a rapid pace, with the scale of the industry increasing from RMB 500 million in 2008 to over RMB 10 billion in 2018. 2019 saw the animation and game industry continue to maintain a good momentum, with annual revenue exceeding RMB 17 billion, accounting for nearly 1/10 of the overall scale of the software industry, and it has become an important segment of Xiamen''''''''s software industry.

    At present, Xiamen has gathered many excellent animation enterprises, such as Xtong, 4399, Migu Animation, Feiyu Technology, G-bits, Bluebird Cartoon etc. It also has many famous animation images in China. According to incomplete statistics, a total of 23 animation and game enterprises in the city are publicly listed or listed on the New Third Board, represented mainly by G-bits, which is listed on the main board, and Homeland Interactive and Feiyu Technology, which are listed on the Hong Kong Stock Exchange.

    In 2019, four animation and game enterprises, namely, 4399, Meitu, G-bits and Xtong, were listed in the top 100 Chinese Internet Enterprises; in 2020, four enterprises, namely, 4399, Meitu, Dianchu and G-bits, were listed in the top 100 Chinese Internet Enterprises with Comprehensive Strength. In 2020, a total of 120 animation enterprises passed the municipal-level accreditation, 22 of which passed the national-level accreditation for ACG industry. The Lost Castle, which was publicly tested by G-bits, was awarded the Most Popular Game Award of 2019 by Mobile Game Association. Call Me Wan Sui Ye, operated by Dianchu Technology, won the honor of Best Popular Game of 2019 on Samsung platform. Star Arc produced by Leiting Interactive was awarded the Most Creative Game Award by D-Entertainment. The international standard T.621 for mobile animation, whose development Migu Animation and M-Cartoon have participated, became the first international technical standard in the field of culture in China. Xiamen So-Then Animation participated in the production of special effects, lighting and action for a number of domestic works, including the summer hits Nezha and Mr. Nian in 2019.

    II. Continuous Improvement of Industrial Ecology
    Xiamen''''''''s animation and game industry started early and the strategic layout of some leading enterprises is at the forefront of the industry. For example, in the animation industry, Xiamen has gradually grown into an industrial incubator for the new media animation industry supported by three major operators, namely Mobile (Migu Animation), Telecom (I-Cartoons) and Unicom. The formation of the new industry layout includes, on the one hand, actively promoting the combination of traditional animation and new media and IP development on platforms, and on the other hand, continuously expanding the forms and extensions of new media animation in terms of content. In the game industry, more attention is paid to the development and promotion of products driven by technology and innovative needs, to activate the ecologically optimized operation of Chinese games.

    III. Games Going Overseas Becomes a Trend
    With the increasingly fierce competition in Chinese market, based on the coastal geographical advantages, for Xiamen animation and game enterprises, “going overseas” is clearly becoming a trend. At present, the service trade export of Xiamen game industry mainly involves Canada, Europe, Australia, Japan and other countries as well as regions as Taiwan, Hong Kong, Macao etc. Currently, Hong Kong, Macao, Taiwan and Southeast Asia markets occupy a larger share, accounting for about 60% of Xiamen game exports. The overseas game business has also led to rapid growth of enterprise revenue, with the proportion of overseas business revenue of many enterprises exceeding 50% of the total revenue. Typical game export enterprises include Fengji Network, Mechanist Games, Modo, YouDong, Dianchu and So Funny, and the total export amount of these from January to October, 2020 is about RMB 600 million.

    IV. Continuous Improvement of Supporting Policies
    According to “The Opinions on Accelerating the Development of Software and Information Service Industry” (Xiamen Government [2018] No. 274), targeted policy support is provided to game enterprises for online operation, content production and innovation, and game export. According to “The Regulations on Further Promoting the Development of the Film and Television Industry in Xiamen” (Xiamen Government [2019] No. 240), special funding support is provided to film and television enterprises in Xiamen for industrial development.
    1. Incentives on New Media Operations
    Enterprises that have original animation, digital audio-visual and digital reading works with independent intellectual property rights, and whose main business is new media content, will be awarded 3% of their corresponding business income if their annual corresponding business income exceeds RMB 1 million, up to a maximum of RMB 500,000 per enterprise per year.
    2. Incentives on Game Operation
    Game enterprises, with independent intellectual property rights, that have original game products approved by the relevant state departments to be officially put into operation will be awarded the equivalent of 1% of their corresponding business revenue if their annual corresponding business income exceeds RMB 3 million, up to a maximum of RMB 800,000 per enterprise per year.
    3. Subsidies for Games Overseas Launches
    Xiamen game enterprises are encouraged to export their products, and will be subsidized 5% of channel costs incurred when the games are launched on overseas platforms, up to a maximum of RMB 1 million per enterprise per year.
    4. Incentives for Screening of Animated Works
    A film and animation work will be awarded RMB 3 million if it has a public box office of RMB 300 million or more, RMB 2 million with the box office RMB 200 million to 300 million, and RMB 1 million with the box office RMB 100 million to 200 million.

    If an original film or animation work is broadcasted for the first time in the prime time of CCTV (17:00-22:00, the same below), a one-off award will be given at the rate of RMB 1,500 per minute; if the work is broadcasted for the first time in the prime time of satellite animation channels or provincial integrated satellite channels, a one-off award will be given at the rate of RMB 750 per minute. The cumulative award for the same project of the same enterprise shall not exceed RMB 2 million.

    For animation works produced by Xiamen local animation enterprises and broadcasted in the first round on Youku Tudou, LeTV, IQiyi, Sohu, Tencent, PPTV and other key national network platforms, 3% of award will be given to the producing enterprises based on the broadcast contract transaction amount (excluding tax), up to a maximum of RMB 500,000.

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