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, 2022, was HKD 153,068,000, compared to HKD 3,189,000 in 2021, indicating significant growth[3] - Gross profit for the year was HKD 3,924,000, up from HKD 3,189,000 in the previous year, reflecting an increase in profitability[3] - The company reported a net loss of HKD 47,164,000 for 2022, slightly improved from a loss of HKD 49,454,000 in 2021[3] - The adjusted pre-tax loss for the year was HKD 47,162,000, with a total annual loss of HKD 47,164,000[24] - 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 net loss of HKD 49,500,000, mainly due to an increase in other income and gains of approximately HKD 3,200,000[45] Revenue Breakdown - Revenue from natural gas and petroleum product trading was HKD 149.955 million for the year ended December 31, 2022, compared to HKD 0 in the previous year[16] - For the year ended December 31, 2022, total revenue was HKD 153,068,000, with natural gas and oil trading contributing HKD 149,955,000 and financing lease and loan services contributing HKD 3,113,000[24] - Revenue from external customers in Hong Kong was HKD 149.955 million, while revenue from China was HKD 3.113 million[18] - Major customer A contributed HKD 105.16 million and customer B contributed HKD 44.795 million to the natural gas and petroleum product trading segment[19] Expenses and Liabilities - Administrative expenses increased to HKD 18,810,000 from HKD 16,772,000, indicating rising operational costs[3] - Current liabilities increased to HKD 1,317,270,000 in 2022 from HKD 1,309,198,000 in 2021, reflecting higher short-term obligations[6] - The company’s financial expenses decreased to HKD (43,877,000) in 2022 from HKD (55,629,000) in 2021, suggesting improved financial management[3] - Total liabilities exceeded total assets by approximately HKD 676.1 million as of December 31, 2022[10] Asset Management - The company's total assets decreased to HKD 534,421,000 in 2022 from HKD 599,896,000 in 2021, showing a decline in asset base[6] - The company's equity attributable to owners decreased to HKD (597,470,000) in 2022 from HKD (534,756,000) in 2021, indicating a deterioration in shareholder equity[7] - The company’s cash and cash equivalents stood at HKD 27,652,000 in 2022, down from HKD 28,845,000 in 2021, indicating a slight reduction in liquidity[6] Legal and Compliance Issues - The independent auditor issued a disclaimer of opinion on the consolidated financial statements for the year ended December 31, 2022, due to insufficient and appropriate audit evidence[69] - The group filed a lawsuit in May 2018 to enforce a land development contract, which was rejected by the Putian Court in June 2020[72] - The group is currently seeking legal advice regarding the administrative decision and will take appropriate actions based on that advice[72] Future Outlook and Strategies - The company is actively seeking other funding sources to support its business development[12] - The company has received a commitment from its major shareholder to provide financial support through guarantees or loans within one year[12] - The group is actively exploring various options and future opportunities to develop a feasible resumption plan to address the issues leading to the suspension of trading[60] - The company is closely monitoring and addressing issues related to Listing Rule 13.24, while continuing to explore new business opportunities and develop sustainable existing operations to enhance financial performance and create value for shareholders[63] Shareholder Information - The group reported a basic loss per share of approximately HKD 43,588,000 for the year 2022, compared to HKD 39,859,000 for 2021, with the weighted average number of ordinary shares issued remaining at 5,943,745,741 for both years[33] - The group did not recommend any dividend payment for the year ended December 31, 2022, consistent with the previous year[34] Joint Ventures and Investments - The investment in joint ventures as of December 31, 2022, is approximately HKD 94,718,000[91] - The share of profits from joint ventures reported in the consolidated income statement is approximately HKD 7,598,000[91] - The total receivables from joint ventures reported is approximately HKD 104,702,000[91] Miscellaneous - The group received government grants amounting to HKD 1,676,000, aimed at incentivizing research and development activities[28] - Trading of the company's shares has been suspended since November 29, 2022, until further notice[97] - The announcement of the audited annual results is available on the stock exchange and the company's website[96]