Core Viewpoint - ST Huatuo (002602.SZ) has announced the launch of its new game "Benben Kingdom" on both iOS and Android platforms, indicating a potential growth opportunity for the company in the gaming sector [1] Company Summary - The new game "Benben Kingdom" has officially launched on iOS and Android [1] - The company's operational situation and internal and external business environment have not undergone significant changes [1]

Core Viewpoint - ST Huaton (002602.SZ) reported significant growth in its financial performance for the first half of 2025, indicating strong operational momentum and profitability [1] Financial Performance - The company achieved operating revenue of 17.207 billion yuan, representing a year-on-year increase of 85.50% [1] - The net profit attributable to shareholders of the listed company was 2.656 billion yuan, reflecting a year-on-year growth of 129.33% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 2.586 billion yuan, with a year-on-year increase of 124.43% [1] - Basic earnings per share were reported at 0.37 yuan [1]

Core Viewpoint - ST Huatuo (002602.SZ) has announced an investment in the Wuxi Cangqiong No.1 Private Investment Fund, aiming to expand its presence in the commercial aerospace and satellite communication sectors [1] Group 1: Investment Details - Wuxi Qiku Investment Co., Ltd., a wholly-owned subsidiary of ST Huatuo, has signed a partnership agreement to invest in the Wuxi Cangqiong No.1 Private Investment Fund [1] - The subsidiary will contribute 14 million RMB, representing 45.16% of the total investment in the fund [1] Group 2: Strategic Implications - The partnership is expected to leverage the fund's industry insights and financial advantages, broadening the company's investment scope [1] - The focus on commercial aerospace and next-generation satellite communication technology aligns with the company's goals for sustainable development and stable growth [1]

Group 1 - ST Huaton (002602) closed at 13.52 yuan on August 4, 2025, with an increase of 4.89% and a turnover rate of 2.54% [1] - The trading volume was 1.7497 million hands, with a transaction amount of 2.334 billion yuan [1] - The net inflow of main funds today was 301 million yuan, accounting for 13.0% of the transaction amount [1] Group 2 - The latest performance report for ST Huaton shows total operating revenue of 8.145 billion yuan, a year-on-year increase of 91.12% [1] - The net profit attributable to shareholders was 1.350 billion yuan, with a year-on-year growth of 107.20% [1] - The company's current ratio is 1.268, quick ratio is 1.189, and debt-to-asset ratio is 32.31% [1] Group 3 - Zhejiang Century Huaton Group Co., Ltd. was established in 2005 and is located in Shaoxing City, primarily engaged in software and information technology services [2] - The company has a registered capital of 74.52556968 billion yuan and a paid-in capital of 74.52556968 billion yuan [1] - The company has made investments in 17 enterprises and participated in 5 bidding projects [2]

Core Viewpoint - Wei Wei, a well-known capital "hunter," successfully acquired approximately 22.62 million shares of ST Huatuo (002602) for 279 million yuan through judicial auction, indicating a strategic investment approach in the current market environment [1][6][9]. Group 1: Auction Details - The auction for ST Huatuo shares involved 31 rounds of bidding, with a starting price of 249 million yuan and a final price of 279 million yuan, reflecting a premium of 12.04% over the starting price [6][7]. - The auction attracted nine participants, with Wei Wei showing a clear intent to win by placing the first bid at the starting price [6][7]. - The final price per share was approximately 12.35 yuan, slightly below the closing price of 12.75 yuan on the auction day [1][9]. Group 2: Company Performance - ST Huatuo has shown significant stock performance, with a price increase of over 300% in the past year and a cumulative increase of nearly 150% this year, positioning it among the top performers in the A-share market [9]. - The company aims to become a leading global digital technology firm, focusing on internet gaming, AI cloud data, and automotive parts manufacturing [11]. - For the first half of 2025, ST Huatuo expects a net profit of 2.4 billion to 3 billion yuan, representing a year-on-year growth of 107.20% to 159.00% [12]. Group 3: Recent Acquisitions by Wei Wei - A month prior to the ST Huatuo acquisition, Wei Wei purchased 13 million shares of Shanshan Co. at 8.42 yuan per share for a total of 109 million yuan, currently showing a profit of approximately 20% [4][15]. - Wei Wei is recognized for his strategic investments in various companies through judicial auctions and private placements, with a notable presence in the market [15][16]. - As of the first quarter of 2025, Wei Wei's publicly held shares are valued at around 2 billion yuan, involving 20 A-share listed companies [17].

Core Insights - ST Huayuan (002602) closed at 12.42 yuan on July 29, 2025, with a 1.72% increase and a turnover rate of 1.47% [1] - The company reported a total revenue of 8.145 billion yuan for Q1 2025, representing a year-on-year growth of 91.12% [1] - Net profit attributable to shareholders reached 1.35 billion yuan, up 107.20% year-on-year [1] Financial Performance - The company's Q1 2025 operating revenue was 8.145 billion yuan, with a year-on-year increase of 91.12% [1] - Net profit attributable to shareholders was 1.35 billion yuan, reflecting a growth of 107.20% year-on-year [1] - The company's current ratio is 1.268, quick ratio is 1.189, and debt-to-asset ratio is 32.31% [1] Investment and Business Activities - Zhejiang Century Huayuan Group has invested in 17 companies and participated in 5 bidding projects [2] - The company holds 99 trademark registrations and 30 patents, along with 5 administrative licenses [2]

Group 1 - The company has implemented regulatory measures on a specific customer group due to exceeding trading volume limits on the EC 2508 futures contract [1] - The restriction will last for 5 trading days, limiting the customer's ability to open new positions in the relevant contract [1] - This action marks the first instance of exceeding the trading volume limit for the specified account group [1]

Financial Performance - The group's consolidated revenue decreased by approximately 97.8% to HKD 3,400,000 in 2023, down from HKD 153,100,000 in 2022[10] - The net loss for the year was approximately HKD 48,600,000, a slight increase from the previous year's loss of HKD 47,200,000[10] - Revenue from the financing leasing and loan services decreased to approximately HKD 2,900,000, a decline of about 6% compared to HKD 3,100,000 in 2022[12] - The natural gas and oil products business recorded no revenue in 2023, down from HKD 150,000,000 in 2022 due to significant reductions in this segment[16] - A new subsidiary was established to operate LED product supply and installation services, generating HKD 530,000 in revenue by year-end[17] Debt and Cash Position - As of December 31, 2023, the total debt of the group was approximately HKD 1,346,700,000, an increase from HKD 1,316,600,000 in 2022[18] - Cash and bank balances were approximately HKD 20,700,000, down from HKD 27,700,000 in 2022[18] - The net debt amounted to approximately HKD 1,326,000,000, compared to HKD 1,288,900,000 in 2022[18] - The capital-to-debt ratio was 197.1%, up from 186.4% in 2022[18] Corporate Governance - The board believes that good corporate governance practices are essential for enhancing corporate value and protecting shareholder interests[77] - The company has adhered to the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual since February 2022[78] - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced composition for strong independence[85] - The board is responsible for overall strategic planning, policy formulation, and risk management, ensuring effective governance practices[89] - The company emphasizes the importance of corporate governance and compliance with established codes to ensure transparency and accountability[106] Legal and Regulatory Challenges - The group continues to face challenges from legal disputes in both mainland China and Hong Kong, impacting overall business operations[9] - The company is committed to pursuing litigation against unfair treatment from business partners as part of its strategy to protect shareholder interests[4] - The company received an adverse opinion from auditors regarding its financial statements, indicating issues that need to be addressed[28] Employee and Workforce Management - Employee costs for the year were approximately HKD 4,100,000, down from HKD 7,800,000 in the previous year[21] - The total number of employees as of December 31, 2023, was 22, a decrease from 24 in 2022, with 10 males and 12 females[183] - The average monthly employee turnover rate for males decreased from 3.97% in 2022 to 2.22% in 2023, while for females it decreased from 2.67% to 0.70%[183] - The company promotes a "green office" policy, encouraging employees to save paper and utilize electronic documents to reduce printing[172] - The company emphasizes employee health and work-life balance, adhering to local labor laws regarding working hours and vacation rights[187] Environmental, Social, and Governance (ESG) Initiatives - The company’s environmental, social, and governance (ESG) report is aligned with the guidelines adopted by the stock exchange[42] - The board of directors is responsible for overseeing ESG matters and integrating them into the company's management policies and strategies[150] - The company has established a sustainable development framework focusing on environmental protection, resource management, and employee welfare[151] - The company aims to create long-term value for stakeholders through a robust ESG strategy and governance framework[154] - The company has implemented various energy-saving measures to reduce pollution and environmental risks, including compliance with relevant laws and regulations[164] Shareholder Communication and Dividends - The board did not recommend a final dividend for the year, consistent with 2022[20] - The company emphasizes the importance of maintaining good communication with shareholders through various formal channels, including interim reports and annual reports[133] - The company has established a shareholder communication policy, which is reviewed at least annually[139] Risk Management - The board is responsible for overseeing the effectiveness of the risk management and internal control systems, which are reviewed at least annually[123] - The company has a risk management policy in place to identify, assess, and manage significant risks that may impact its operational goals[120] - An independent professional advisor has been engaged to assist in evaluating the effectiveness of the risk management and internal control systems[121] Training and Development - The percentage of trained employees in 2023 was 15.38% for males and 30.77% for females, compared to 11.76% and 50.00% in 2022 respectively[191] - Average training hours for male employees decreased from 7.76 hours in 2022 to 1.77 hours in 2023, while female employees saw a decrease from 50.63 hours to 14.62 hours[191] - The company emphasizes the importance of employee education on environmental protection and sustainable development[174] Sustainability and Resource Management - The company has focused on improving service quality and customer satisfaction as part of its stakeholder engagement strategy[160] - The company has identified key environmental and social issues through stakeholder assessments to align business goals with stakeholder expectations[162] - The company emphasizes the importance of resource conservation and has implemented policies to ensure efficient resource use[167]

Financial Performance - The group's consolidated revenue increased from approximately HKD 3,200,000 in the previous year to approximately HKD 153,100,000, representing a growth of about 46.8 times[5]. - The net loss attributable to the company's owners for the year was approximately HKD 43,600,000, compared to a loss of approximately HKD 39,900,000 in the previous year[5]. - The natural gas and oil products business contributed approximately HKD 150,000,000 in revenue for the year, which was a new revenue stream[11]. - The financing lease business revenue decreased to approximately HKD 3,100,000, a decline of about 3% from HKD 3,200,000 in the previous year[14]. - The loss from the PPP primary land development business decreased to approximately HKD 6,700,000, down from HKD 18,600,000 in the previous year, primarily due to reduced bank loan interest[15]. - The net loss for the year was approximately HKD 47,200,000, a decrease of about HKD 2,300,000 from the previous year's loss of HKD 49,500,000[11]. - Total debt as of December 31, 2022, was approximately HKD 1,316,600,000, compared to HKD 1,307,500,000 in 2021, reflecting a slight increase[17]. - Cash and bank balances were approximately HKD 27,700,000, down from HKD 28,800,000 in 2021[17]. - The net debt amounted to approximately HKD 1,288,900,000, compared to HKD 1,278,700,000 in the previous year[17]. - The capital-to-debt ratio increased to 186.4% in 2022 from 171.9% in 2021[17]. Business Operations - The company plans to continue focusing on the financing lease market while managing operational and financial resources prudently[6]. - The company has restarted its natural gas and oil products sales business, which has positively impacted revenue[5]. - The LED business is still in its initial stage and has not recorded any revenue to date[13]. - The company is actively exploring new business opportunities and aims to improve its financial performance amid ongoing uncertainties due to COVID-19[31]. - The company reported that the top five customers accounted for 98.8% of total sales, with the largest customer contributing 68.7% of sales[57]. - The company reported its core business in financing leasing and loan services, which remains its primary revenue source[158]. - The company began engaging in oil trading business before the end of 2022, expanding its operational scope[158]. Corporate Governance - The company has maintained compliance with relevant laws and regulations without any significant breaches reported during the year[45]. - The company emphasizes the importance of good corporate governance practices to enhance corporate value and protect shareholder interests[86]. - The board consists of six members, including three executive directors and three independent non-executive directors[96]. - The independent non-executive directors have confirmed their independence as per the listing rules[64]. - The board has established mechanisms to ensure independent opinions and relevant information are provided to the board, which is reviewed annually[104]. - The board is responsible for reviewing and monitoring the training and continuous professional development of directors and senior management[103]. - The company has a structured process for addressing conflicts of interest among directors during board meetings[109]. - The board has implemented measures to ensure compliance with corporate governance standards and regulations[109]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with clearly defined responsibilities to assist the board in fulfilling its duties[118]. - The Audit Committee consists of three independent non-executive directors and held four meetings during the year, ensuring compliance with the relevant listing rules[119]. Employee and Workforce Management - Employee costs for the year were approximately HKD 7,800,000, down from HKD 8,600,000 in 2021, with a total of 24 employees[21]. - The company has confirmed that at least 25% of its issued shares are held by the public[78]. - The company has a total of 5,943,745,741 shares issued as of December 31, 2022[79]. - The average monthly turnover rate for full-time employees was 5.96% in 2022, significantly higher than 1.05% in 2021[197]. - The company emphasizes equal opportunity and diversity in hiring practices, ensuring a non-discriminatory work environment[194]. - The gender distribution of employees as of December 31, 2022, was 12 males and 12 females, compared to 14 males and 15 females in 2021[197]. - The company provides social insurance benefits for all employees, including pension, medical, unemployment, work injury, and maternity insurance[199]. - Employees are entitled to various types of leave, including annual leave, sick leave, and maternity leave, promoting work-life balance[200]. Environmental, Social, and Governance (ESG) - The company’s environmental, social, and governance (ESG) report is aligned with the guidelines adopted by the Stock Exchange[44]. - The company has set multiple environmental and social key performance indicators (KPIs) to drive changes such as reducing greenhouse gas emissions and improving employee welfare[165]. - The company emphasizes corporate social responsibility and aims to balance business expansion with stakeholder interests through sustainable development practices[164]. - The company has established a governance framework to effectively manage ESG risks and opportunities[168]. - The company has adopted an anti-corruption policy effective January 1, 2023, outlining guidelines and responsibilities for employees to report any suspected fraud or corruption[138]. - The company has implemented measures to mitigate environmental impact and promote responsible environmental practices within its operations[164]. - The company recognizes the potential impact of climate change on its operations and is preparing to adapt to changing regulations and policies[189]. - The company has established a stakeholder communication policy, reviewed annually, to address shareholder inquiries effectively[152]. Shareholder and Financial Policies - The company did not recommend a final dividend for the year, consistent with the previous year[19]. - The company has no available reserves for distribution as of December 31, 2022, according to the Companies Ordinance[56]. - The company has adopted a dividend policy to allow shareholders to share in profits while retaining sufficient reserves for future growth, with special dividends declared as needed[126]. - The company has not made any changes to its articles of association during the year[155]. - The company has not purchased, sold, or redeemed any of its listed securities during the year[53].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 153,068,000, a decrease from HKD 156,466,000 in 2022, representing a decline of approximately 2.5%[3] - Gross profit for the year was HKD 2,956,000, down from HKD 3,924,000 in the previous year, indicating a decrease of about 24.7%[3] - The company reported a net loss of HKD 47,164,000 for 2023, compared to a net loss of HKD 48,590,000 in 2022, reflecting a slight improvement of 2.9%[3] - Basic and diluted loss per share for 2023 was HKD 0.83, compared to HKD 0.73 in 2022, indicating a worsening of approximately 13.7%[3] - The company reported a total comprehensive loss of HKD 54,536,000 for the year, compared to HKD 64,763,000 in 2022, indicating an improvement of approximately 15.8%[4] - The group reported a net loss of approximately HKD 48.6 million for the year ending December 31, 2023[10] - The group reported a basic loss per share of approximately HKD 49,386,000 for 2023, compared to HKD 43,588,000 in 2022, indicating an increase in losses[37] - The company experienced an annual loss of HKD 48,590,000 for the fiscal year ending December 31, 2023[23] - The net loss for the year was approximately HKD 48,600,000, an increase of about HKD 1,400,000 from the previous year's net loss of HKD 47,200,000[54] Revenue Breakdown - Revenue from gas and oil product trading was HKD 0, down from HKD 149.955 million in 2022, while LED product supply and installation services generated HKD 0.530 million in 2023[16] - Total revenue for the group decreased to HKD 3.398 million in 2023 from HKD 153.068 million in 2022, representing a decline of approximately 97.8%[16] - Revenue from external customers in China was HKD 3.398 million in 2023, compared to HKD 3.113 million in 2022[19] - For the fiscal year ending December 31, 2023, the total revenue from the LED product supply and installation services was HKD 3,398,000, with a segment profit of HKD (2,409,000)[23] - The financing lease and loan services generated revenue of HKD 2,868,000, contributing to a segment profit of HKD (3,325,000)[23] - The financing leasing business recorded revenue of approximately HKD 2,900,000, a decrease of about 6% from HKD 3,100,000 in 2022[55] - The natural gas and oil products business recorded no revenue this year, down from HKD 150,000,000 in 2022[60] - The new subsidiary for LED product supply and installation services generated revenue of HKD 530,000 by year-end[61] Assets and Liabilities - Total assets decreased to HKD 1,348,996,000 in 2023 from HKD 1,317,270,000 in 2022, showing an increase of about 2.4%[6] - Current liabilities increased to HKD 1,348,996,000 in 2023 from HKD 1,317,270,000 in 2022, reflecting a rise of approximately 2.4%[6] - Total liabilities exceeded total assets by approximately HKD 730.6 million as of December 31, 2023[10] - The group's total borrowings amounted to approximately HKD 1,038.3 million, including loans from related companies and non-controlling shareholders[10] - The total assets of the company amounted to HKD 618,737,000, with total liabilities of HKD 1,349,331,000[25] - Total liabilities as of December 31, 2023, were approximately HKD 1,346,700,000, compared to HKD 1,316,600,000 in 2022[62] - The net debt was approximately HKD 1,326,000,000, with a capital debt ratio of 197.1%, up from 186.4% in 2022[62] Financial Expenses - The company’s financial expenses increased to HKD 43,877,000 in 2023 from HKD 39,108,000 in 2022, representing an increase of about 10.5%[3] - Other income decreased from HKD 4,003,000 in 2022 to HKD 2,190,000 in 2023, a decline of approximately 45.4%[31] - Interest expenses on bank and other borrowings significantly reduced from HKD 6,202,000 in 2022 to HKD 1,303,000 in 2023, a decrease of about 79.0%[32] - The group’s total financial expenses decreased from HKD 43,877,000 in 2022 to HKD 39,108,000 in 2023, a decline of about 11.0%[32] Employee and Operational Costs - The group’s employee benefit expenses, excluding directors and CEO remuneration, decreased from HKD 7,778,000 in 2022 to HKD 4,088,000 in 2023, a reduction of approximately 47.5%[35] - The group had a total of 22 employees as of December 31, 2023, down from 24 in 2022, with employee costs around HKD 4,100,000[65] Legal and Compliance Issues - The group continues to face challenges due to legal issues in China and Hong Kong, impacting overall performance[51] - The independent auditor refused to express an opinion on the consolidated financial statements for the year ended December 31, 2023, due to insufficient audit evidence[77] - The group submitted a lawsuit to the Putian Intermediate People's Court in May 2018 regarding the enforcement of a land development contract[81] - The group received a ruling from the Putian Court on June 10, 2020, rejecting the group's lawsuit[81] - The group filed an appeal to the Fujian High People's Court in June 2020, which was accepted in August 2020[81] - The appeal was dismissed by the Fujian High People's Court on May 30, 2022, and the group is currently seeking legal advice on the administrative decision[81] - The company has initiated legal proceedings to obtain the accounting records from China Aviation Fuzhou Construction, with a court ruling requiring compliance within 20 days of the judgment date[92] - The company is currently executing the court's decision to acquire the necessary accounting records[92] - The company has faced challenges in auditing due to insufficient supporting documents from China Aviation Fuzhou Construction and its subsidiaries[93] - The company has been unable to obtain the accounting records from Jia Lian Group for the years ended December 31, 2023, and December 31, 2022, due to ongoing legal disputes[97] Governance and Future Outlook - The group is actively seeking additional funding sources to support its business development[11] - Major shareholder, Xin Jing International Limited, has committed to providing financial support through guarantees or loans within one year[12] - The group is in discussions with counterparties to renew existing loans[13] - The group will continue to explore new business opportunities and focus on sustainable development of existing operations to enhance financial performance and create value for shareholders[71] - The company has adhered to the corporate governance code, although there are exceptions regarding the separation of the roles of Chairman and CEO[74] - The audit committee has reviewed the group's annual performance for the year[101] - The consolidated financial statements have been acknowledged by the auditors as consistent with the audited financial amounts for the year[102] - Trading of the company's shares has been suspended since November 29, 2022, and will continue until further notice[104]