Core Viewpoint - In the new fiscal year, Century Huatong has shown significant growth in both revenue and net profit, securing the top position in revenue among A-share gaming companies, although its profit remains lower than that of Sanqi Interactive [1][3]. Revenue Summary - For the fiscal year 2024, Century Huatong's total revenue reached 22.62 billion yuan, a year-on-year increase of 70.27% from 13.28 billion yuan, marking the highest revenue growth in five years and making it the only gaming company in A-shares to surpass 20 billion yuan in revenue [3]. - The revenue competition between Century Huatong and Sanqi Interactive has fluctuated over the years, with Century Huatong outperforming Sanqi Interactive from 2018 to 2020, while the latter led from 2021 to 2023 [3]. Profit Summary - Despite Century Huatong's revenue exceeding that of Sanqi Interactive by over 5 billion yuan, its net profit remains less than half of Sanqi Interactive's. Century Huatong's net profit for the reporting period grew by 131.51% to 1.213 billion yuan, while Sanqi Interactive's net profit was 2.673 billion yuan, more than double that of Century Huatong [3]. - In the first quarter of this year, Century Huatong outperformed Sanqi Interactive in both revenue and net profit, achieving a revenue of 8.145 billion yuan (up 91.12% year-on-year) and a net profit of 1.35 billion yuan (up 107.2% year-on-year), while Sanqi Interactive experienced declines in both revenue and net profit [3]. Executive Compensation - In the fiscal year 2024, Century Huatong's CEO, Xie Fei, received a salary of 5.2772 million yuan, which is significantly lower than that of Sanqi Interactive's general manager, Xu Zhigao, who earned 9.2438 million yuan, a difference of 3.96 million yuan [3].

Core Viewpoint - ST Huatuo (Century Huatuo, 002602.SZ) has a market value of 88.7 billion yuan, ranking 155th in A-share total market value, and has seen its stock price increase nearly 300% over the past year, significantly outperforming its competitor Giant Network by 40 billion yuan in market value [1][2]. Group 1: Stock Performance - On July 4, ST Huatuo's stock rose by 3.75% to 11.90 yuan per share, reaching its highest level since August 2020 [2]. - Following a period of risk warning due to false financial disclosures, the stock experienced a four-day limit down, dropping to around 4 yuan, before entering a significant upward trend after a month of adjustment [2]. Group 2: Game Development and Market Success - Century Huatuo's success is attributed to its game development, particularly in overseas markets, with its self-developed games achieving major breakthroughs [4]. - The games "Whiteout Survival" and "Endless Winter" have set records in the SLG genre, consistently ranking high in global game release charts, with "Whiteout Survival" surpassing 100 million downloads globally [4][5]. - The company has adopted a "dual-hit" strategy, focusing on revitalizing classic IPs and breaking into niche markets, which has led to sustained performance from multiple successful titles [5]. Group 3: Shareholder Dynamics - Hainan Qibing Network Technology Co., Ltd. emerged as a significant beneficiary of ST Huatuo's stock surge, holding 100 million shares, which accounted for 1.35% of the total shares, and realizing over 500 million yuan in profits during the stock's rise [7]. - The Huaxia Zhongzheng Animation Game ETF, which initially held 168 million shares, had to sell off its holdings due to the stock being classified as ST, missing out on the subsequent price increase [8].

Core Viewpoint - The article discusses the evolution and success of the gaming company 点点互动 (DianDian Interactive) under the leadership of CEO 陈琦 (Chen Qi), highlighting its significant achievements, particularly with the game 《无尽冬日》 (Endless Winter), and its impact on the gaming industry and the parent company 世纪华通 (Century Huatong) [3][6][32]. Group 1: Company Background and Leadership - 点点互动 faced significant challenges in 2020, including a cash flow crisis and lack of hit games, yet maintained the trust of its chairman, 王佶 (Wang Ji) [3][6]. - 陈琦, with nearly a decade of experience in the gaming industry, has been pivotal in shaping the company's strategy and product development, focusing on overseas markets and self-developed games [5][20]. - The acquisition of 点点互动 by 世纪华通 in 2014 is noted as a significant event in Chinese gaming history, positioning the company for future growth despite initial skepticism [10][12][13]. Group 2: Financial Performance and Market Impact - By 2025, 世纪华通's stock price had increased nearly fivefold from its lowest point, driven by the success of 点点互动's products, particularly 《无尽冬日》 [7][32]. - The market valuation of 点点互动 approached 100 billion yuan, reflecting its substantial contribution to 世纪华通's overall financial health [7][32]. - The projected net profit for 世纪华通 is around 50 billion yuan, with 35-40 billion yuan expected from 点点互动, indicating its critical role in the parent company's financial performance [31]. Group 3: Product Development and Market Strategy - 点点互动's strategy involved a dual approach of overseas game publishing and self-development, with a focus on creating innovative gameplay that appeals to a broader audience [23][27]. - The game 《无尽冬日》 successfully combined casual gameplay with SLG mechanics, attracting a diverse player base and achieving significant revenue [34][37]. - The company adopted a flexible and data-driven approach to product development, allowing for rapid iteration and adaptation to market demands [26][42]. Group 4: Industry Trends and Competitive Landscape - The success of 《无尽冬日》 has led to increased competition in the ice and snow survival genre, with many companies attempting to replicate its model [34][36]. - The article emphasizes the importance of innovation in gameplay and marketing strategies to maintain a competitive edge in a rapidly evolving market [38][47]. - The shift towards lighter, more accessible gaming experiences is highlighted as a potential growth area for the industry, allowing smaller developers to compete with larger firms [47][48].

Core Viewpoint - The ST sector has shown strong performance recently, with the Wind ST Index recording a "seven consecutive days of gains" and significant year-to-date increases in several ST stocks, indicating a structural market trend despite inherent risks in investing in ST stocks [1][3][10]. Group 1: Recent Performance - The Wind ST Index has achieved a cumulative increase of 4.74% since June 23, outperforming both the Shanghai Composite Index and the Shenzhen Component Index during the same period [3]. - Over 80% of the 172 constituent stocks in the ST Index have risen since June 23, with 41 stocks increasing by more than 10% [5]. - Year-to-date, some ST stocks have seen remarkable gains, with *ST Yushun and *ST Xintong rising over 370% and 280% respectively [1][9]. Group 2: Notable Stocks - Specific ST stocks have shown exceptional performance, with *ST Yushun and *ST Xintong both exceeding 400% in gains from their lowest prices this year [8]. - A list of notable ST stocks with significant year-to-date increases includes *ST Yushun (372.19%), *ST Xintong (284.36%), and ST Dihui (107.46%) [9]. Group 3: Market Dynamics - The recent strong performance of the ST sector is attributed to the overall robust trend in the A-share market and expectations of restructuring or "delisting" for some ST stocks [10]. - The adjustment of the price fluctuation limit for risk-warning stocks from 5% to 10% is expected to enhance pricing efficiency and market order [10]. Group 4: Structural Risks - Despite the recent gains, the ST sector remains structurally risky, with nearly 30 ST stocks experiencing declines in the last seven trading days, and 82 out of 172 ST stocks down year-to-date [12]. - Companies within the ST sector, even those with rising stock prices, frequently issue risk warnings, indicating ongoing concerns about potential delisting and regulatory scrutiny [12].

Core Insights - Century Games' subsidiary, Didi Interactive, has achieved significant success in the global mobile gaming market with two titles, "Whiteout Survival" and "Kingshot," both making strong appearances in revenue rankings [1][3]. Revenue Rankings - "Whiteout Survival" has climbed to the second position in the global mobile game revenue rankings for May 2025, showcasing its strong market performance [2][3]. - "Kingshot" has also shown impressive growth, moving up 36 places to rank 29th in global revenue, indicating its increasing popularity [7][9]. Game Performance - "Whiteout Survival," a strategy game with dynamic activities, has maintained a strong user engagement and has been a top performer in the Chinese mobile game market since its launch [6]. - "Kingshot," a 4X strategy game, has demonstrated robust market potential, particularly in the United States, United Kingdom, and Germany, with significant in-app purchase revenue from the U.S., South Korea, and Japan [9]. Market Impact - The success of these two titles reflects Century Games' deep expertise in the SLG (Simulation and Strategy Game) sector and suggests an expanding influence in overseas markets [9]. - The continued commercial success of these games is expected to provide strong and stable growth for Century Games, enhancing its position in the global mobile gaming market [9].

Group 1 - The game "Dragon City" by Century Huatong has risen to the 4th position in the sales ranking, while "Treasure Hunter" by Thunder Game has reached the 7th position [1][4][9] - "Dragon City" is currently the highest-ranked legendary game on the WeChat mini-game sales list, indicating a potential collaboration between leading mini-game manufacturers and legendary game developers to create a top-tier product [7][9] - The mini-game market has seen a slight increase in new entries, with 1 new product entering the top 50 and 11 new products entering the bottom 50 compared to the previous week [5][6] Group 2 - "Treasure Hunter" incorporates various mini-game elements and has been steadily rising in the rankings since its debut, suggesting a strategy to recapture users from previous titles [9][4] - The top ten mini-games include "Dragon City," "Treasure Hunter," and others, reflecting a competitive landscape in the mini-game sector [2][3] - The collaboration between Century Huatong and other game developers may signal a trend towards creating blockbuster legendary games on mini-game platforms [7][9]

Group 1 - The 22nd China International Digital Interactive Entertainment Expo (ChinaJoy) will be held from August 1 to August 4, 2025, at the Shanghai New International Expo Center [1] - A total of 743 companies have registered for the event, with 237 foreign companies from 37 countries and regions, accounting for 31.8% of the total [3] - The BTOC Interactive Entertainment Pavilion will feature over 283 companies with a total exhibition area of 110,000 square meters, focusing on consumer interactive entertainment experiences [3] Group 2 - The BTOB Business Negotiation Pavilion will have over 460 companies participating, covering an area of 25,000 square meters, with nearly 208 foreign companies, making up 45.2% of the exhibitors [3] - Notable game products from companies like NetEase, Century Huatong, and Perfect World will be showcased, including popular titles and new games available for on-site testing [3] - In 2025, ChinaJoy will explore new online and offline interactive experiences in collaboration with Alipay's Blue Flower Fire community, utilizing "Alipay Touch" technology for enhanced engagement [4]

Event Overview - The first Shanghai International Animation Month will commence on July 4, featuring a collaboration of three major events: CCG EXPO (July 4-6), Bilibili World (July 11-13), and ChinaJoy (August 1-4) [1] - The event will host over a hundred themed activities and more than a thousand limited-edition merchandise, along with a series of cross-dimensional activities and the issuance of "dimension digital consumption vouchers" [1] - Major animation IPs such as Disney, LEGO, and Bandai Namco will participate, alongside domestic productions like "The Little Monster of Langlang Mountain" and "Linglong" [1] ChinaJoy Highlights - ChinaJoy, scheduled for August 1-4, is recognized as a premier event in the digital entertainment industry, covering games, animation, esports, smart hardware, and trendy toys [2] - The event will include several high-profile forums and unique activities such as a digital live shopping festival and the debut of the "China Audio-Visual Game Museum" [2] - A new theme area focusing on smart entertainment robots has opened for exhibitors, presenting significant opportunities for companies in the robotics and gaming sectors [2] CCG EXPO and Bilibili World - CCG EXPO is one of the largest comprehensive animation and gaming exhibitions in China, expecting over 500,000 attendees in 2024 and achieving an online transaction value of 284 million yuan [3] - Bilibili World, a major offline event hosted by the popular video platform Bilibili, anticipates 300,000 attendees and has doubled its exhibitor count, making it the largest anime convention in East Asia [3] Market Potential - The Chinese animation industry is undergoing significant structural changes driven by digital technology and cultural consumption upgrades, leading to a new development phase [4] - The industry has gained international recognition, with projections estimating the total output value of the Chinese animation industry to reach 423 billion yuan by 2025, representing a 457% increase from 2019 [5] Company Involvement - Companies such as 37 Interactive Entertainment, Perfect World, Giant Network, and others have participated in multiple editions of ChinaJoy and CCG EXPO [9] - Shunwang Technology has acquired the organizer of ChinaJoy, Hanwei Xinheng, indicating consolidation within the industry [9]

Group 1 - The brain-computer interface sector experienced a decline of 3.34%, ranking among the top losers in the concept sector as of the market close on June 20 [1][2] - Within the brain-computer interface sector, major companies such as Hanwei Technology, Nanjing Panda, and Aipeng Medical saw significant declines, while only two stocks, Haige Communication and ST Huatuo, recorded gains of 1.46% and 1.05% respectively [1][2] - The sector faced a net outflow of 546 million yuan from main funds, with 23 stocks experiencing net outflows, and seven stocks seeing outflows exceeding 30 million yuan [2] Group 2 - Hanwei Technology led the outflow with a net withdrawal of 133 million yuan, followed by Innovative Medical and Tom Cat with outflows of 129 million yuan and 116 million yuan respectively [2][3] - The stocks with the highest net inflows included ST Huatuo, Haige Communication, and Lepu Medical, with inflows of 58.93 million yuan, 35.06 million yuan, and 23.44 million yuan respectively [2][3] - The trading volume for Hanwei Technology was 12.95%, indicating a high turnover rate despite the decline of 6.59% in its stock price [2][3]

Core Points - Zhejiang Century Huatong Group Co., Ltd. has announced a plan for a directed buyback and cancellation of performance compensation shares, which was approved in meetings held on May 30, 2025, and June 19, 2025 [1][2] - The company will repurchase a total of 126,627,700 shares at a total price of RMB 1.00, which represents a significant portion of the company's total share capital prior to the buyback [2] - The buyback will lead to a reduction in the company's registered capital, and creditors have a 30-day period from notification to claim their debts or request guarantees [2][3] Company Information - The company will apply to the China Securities Depository and Clearing Co., Ltd. for the cancellation of the performance compensation shares and will fulfill its information disclosure obligations after the implementation is completed [4] - Creditors must provide valid documentation to assert their claims, and the submission period for claims is from June 20, 2025, to August 3, 2025 [3][4]