Core Viewpoint - Century Huatong (002602) acknowledges investor concerns regarding stock price fluctuations and emphasizes its commitment to market value management and maintaining shareholder confidence [1] Group 1 - The company will continue to optimize investor relations management [1] - It aims to communicate its intrinsic value to the market through multiple channels and dimensions [1] - The company seeks to eliminate market misunderstandings and improve its image [1] Group 2 - Century Huatong is focused on achieving long-term alignment between company value and shareholder returns [1]

Core Insights - Century Huatong was awarded the "2025 Outstanding 'Going Global' Game Company" at the annual "Top Ten Games" awards, recognizing its strong performance in overseas expansion and product innovation [3][9] - The company's game "Endless Winter" was recognized as the "2025 Outstanding Mobile Game," highlighting its popularity and strong market presence [7][9] Group 1: Awards and Recognition - The "Top Ten Games" awards are considered a prestigious honor in the Chinese gaming industry, focusing on global operational capabilities and international brand influence [3] - Century Huatong's overseas revenue reached 11.368 billion yuan in 2024, surpassing domestic market revenue, with further growth to 8.958 billion yuan in the first half of 2025 [3][4] Group 2: Global Strategy and Market Performance - Century Huatong has established a distribution network covering over 200 countries and regions, with a continuous increase in overseas revenue share [3][4] - The company prioritizes globally appealing game themes, focusing on SLG and casual game genres, while also tailoring products to regional user preferences [4][5] - The success of "Whiteout Survival" and "Kingshot" has positioned Century Games as a strong player in the overseas market, dominating the revenue rankings [4] Group 3: Product Development and Market Adaptation - New products are launched in overseas markets first to validate their effectiveness through real market data, which helps in localizing and adapting for the domestic market [5] - "Endless Winter," launched in April last year, has consistently ranked in the top three of the iOS bestseller list, showcasing its strong market performance and innovative marketing strategies [7]

Core Viewpoint - The 2025 Annual Game Awards revealed significant achievements in the Chinese gaming industry, highlighting innovation, cultural contributions, and operational excellence among various companies [1] Group 1: Awards and Recognitions - NetEase Games was awarded the title of "Outstanding Game Technology Innovation Enterprise" for its contributions to gaming technology [1] - Century Huatong received the "Outstanding 'Going Global' Game Enterprise" award, recognizing its efforts in expanding internationally [1] - Tencent's TiMi Studio Group J3 won the "Outstanding Game Development Team" award, showcasing its excellence in game development [1] Group 2: Game Awards - Century Huatong's "Endless Winter" was recognized as the "Outstanding Mobile Game" [1] - Tencent's "Delta Action" received the "Outstanding Client Game" award, indicating its success in the client gaming sector [1] - NetEase's "Yanyun Sixteen Sounds" was awarded the "Outstanding Traditional Chinese Culture Game," reflecting its cultural significance [1] Group 3: Special Awards - Xindong Network's "Xindong Town" was honored with the "Outstanding Social Value Game" award, emphasizing its positive societal impact [1] - Mihayou's "Honkai: Star Rail" won the "Outstanding Game Music Design" award, highlighting its achievements in music integration [1] - Paper Games' "Infinite Warmth" received the "Outstanding Game Art Design" award, showcasing its artistic contributions to gaming [1]

Core Viewpoint - Century Huatong has been recognized for its outstanding performance in global expansion and product innovation, winning the "2025 Excellent 'Going Global' Game Enterprise" award and having its game "Endless Winter" named "2025 Excellent Mobile Game" at the annual Game Top Ten Awards ceremony in Shanghai [1][3]. Group 1: Awards and Recognition - Century Huatong received the "2025 Excellent 'Going Global' Game Enterprise" award, highlighting its global operational capabilities and contributions to overseas markets [3]. - The game "Endless Winter" was awarded "2025 Excellent Mobile Game," showcasing its popularity and strong market performance [6]. - Shengqu Games was nominated for the "2025 Excellent Game Operation Enterprise," further emphasizing the recognition of Century Huatong's strategic development [8]. Group 2: Global Expansion Strategy - Century Huatong has established a distribution network covering over 200 countries and regions, with overseas revenue accounting for a significant portion of its income, projected to reach 11.368 billion yuan in 2024, surpassing domestic revenue [3]. - The company focuses on globally appealing themes and differentiates its products based on regional user preferences, ensuring deep market alignment [4]. - The success of games like "Whiteout Survival" and "Kingshot," which dominated the overseas revenue rankings, reflects the effectiveness of Century Huatong's global strategy [4]. Group 3: Product Performance - The mobile game "Endless Winter" has consistently ranked in the top three of the iOS bestseller list, establishing itself as a benchmark in the SLG genre [6]. - Century Huatong's casual merge game "Tasty Travels: Merge Game" achieved a 10% revenue growth in November, ranking fourth in the global casual merge game revenue list, indicating a new growth engine for the company [4]. - The company prioritizes launching new products in overseas markets to validate product models with real market data, enhancing localization and domestic distribution efficiency [4].

Core Insights - The "Top 10 Games of 2025" awards were announced on December 18, recognizing leading companies and games in the Chinese gaming industry [1][2]. Group 1: Award Winners - Tencent Games won two awards, with its game "Delta Action" recognized as the "Best Client Game" and its development team, Tencent Tianmei J3 Studio, awarded "Outstanding Game Development Team" [1]. - NetEase Games was awarded "Outstanding Game Technology Innovation Enterprise" and its game "Yanyun Sixteen Sounds" received the "Outstanding Traditional Chinese Culture Game" award [1]. - Century Huatong, referred to as the "A-share gaming king," won "Outstanding 'Going Global' Game Enterprise" and its game "Endless Winter" was recognized as the "Outstanding Mobile Game" [1]. - Other notable winners included Mutong Technology for "Outstanding Game Operation Enterprise," Xindong Network's "Xindong Town" for "Outstanding Social Value Game," Mihayou's "Honkai: Star Rail" for "Outstanding Game Music Design," and Paper Games' "Infinite Warmth" for "Outstanding Game Art Design" [1]. Group 2: Award Categories - The "Top 10 Games" awards maintained the same structure as the previous year, featuring 10 award categories that evaluate both products and enterprises in the gaming industry [2].

Core Viewpoint - Century Huatong (002602) indicated that shareholders' information should be monitored through the company's regular report disclosures [1] Group 1 - The company responded to investor inquiries on its interactive platform [1] - The company emphasized the importance of regular report disclosures for shareholder information [1]

Investment Rating - The report maintains a "Recommended" rating for the media and internet industry [1] Core Viewpoints - The media and internet industry is driven by performance and AI empowerment, with a focus on core assets in the Hong Kong internet sector and AI applications [3][4] - The report highlights the stable supply in the film industry and the recovery of the box office, with significant growth in ticket sales [16][20] - The gaming sector shows strong performance with an increase in both client and mobile game revenues, driven by dual-end interaction [57][58] - The advertising market is showing steady growth, with a notable increase in spending across various sectors [3][4] Market Review - In November 2025, the media industry index rose by 1.69%, outperforming the Shanghai and Shenzhen 300 index, which fell by 2.46% [5][6] - The media sector's performance varied, with advertising marketing up by 9.68% and the gaming sector down by 0.94% [10][12] Sub-industry Data Tracking Film Industry - The national box office for November 2025 reached 3.553 billion yuan, a year-on-year increase of 89.29% and a month-on-month increase of 36.03% [16][20] - The top film, "Zootopia 2," generated a box office of 1.731 billion yuan, accounting for 54.2% of the monthly total [23] Gaming Industry - The domestic gaming market's actual sales revenue in October 2025 was 31.359 billion yuan, a year-on-year increase of 7.83% [57] - Client games showed a strong performance with revenues of 7.227 billion yuan, up 29.4% year-on-year [58] Advertising Industry - The overall advertising market expenditure increased by 4.3% year-on-year in the first ten months of 2025, with a significant rise of 10.6% in October [3][4]

Core Insights - The AI wave is transitioning from laboratories to industry, with 2025 being positioned as the "year of AI application explosion" [1][4] - Century Huatong has deeply integrated AI into its operations, achieving a 60%-80% increase in production efficiency in art production through AI tools [1][4] - Despite the enthusiasm, there are three major obstacles to the large-scale implementation of AI: the noticeable traces of technology, misaligned industry perceptions, and the dual pressures of cost and compliance [1][5] Industry Trends - AI-native games are still in the early exploration stage, with most applications of AI limited to art, music, and gameplay design, while truly personalized gaming experiences remain rare [2][5] - Users prioritize product quality and intellectual property (IP) over the use of AI, indicating that AI is merely a creative tool that must enhance user experience [2][5] - The next 3-5 years are expected to see a dramatic decrease in creative barriers due to AI, leading to an explosion of user-generated content (UGC) [2][6] Future Outlook - As the UGC ecosystem matures, managing IP will become a significant challenge for the industry, requiring core competencies from practitioners [2][6] - The AI industry's path to breakthrough will ultimately focus on user-centric and value-driven approaches, with Century Huatong committed to long-term engagement in AI application practices [3][6]

Buybacks and Increases - Action Education plans to repurchase shares worth between 20 million to 25 million yuan [1] - Century Huatong has completed the cancellation of 5,612.08 million shares that were repurchased [2] - Lishang Guochao's controlling shareholder, Yuanming Holdings, has secured a loan of 100 million yuan for share increase [3] External Investments and Daily Operations - Woer Nuclear Material plans to invest no more than 1.5 billion yuan to expand the Huizhou Huicheng Waterkou Industrial Park project [4] - Huayou Cobalt has signed a memorandum for the supply of 79,600 tons of ternary precursor products with an internationally renowned client [5] - Xiechuang Data intends to spend no more than 9 billion yuan to purchase servers primarily for providing cloud computing services to clients [6] - Jidian Co., Ltd.'s wholly-owned subsidiary, Guangxi Jitou Smart Energy Technology, is investing a total of 564 million yuan in the construction of a 100MW wind power project in Nalu, Yongning, Guangxi [7] - Yian Technology's subsidiary, Yian Yunhai, has secured a significant magnesium alloy project from a domestic automotive parts manufacturer, with an expected total order value of 430 million yuan [8] - China General Nuclear Power has commenced full construction of Unit 6 in Ningde [9] - Shuhua Sports plans to invest in the construction of the Shuhua Health Industry Park project, with a total investment expected to be no more than 500 million yuan [10] - Caixun Co., Ltd. plans to jointly invest in the establishment of an investment fund specifically for a humanoid robot company [11] - Jiuliang Co., Ltd.'s former controlling shareholder has failed to meet the performance commitment for the LED business in 2024, requiring compensation of 6.1835 million yuan [12] - Haiyou New Materials plans to establish a wholly-owned subsidiary to invest in the construction of a polymer special adhesive film production project [13] - Tongfang Co., Ltd. intends to publicly transfer its 100% stake in Shanghai Cuineng [14]

Group 1 - Action Education plans to repurchase shares worth between 20 million to 25 million yuan at a price not exceeding 45 yuan per share for employee stock ownership plans or equity incentives [1] - Fulin Technology's shareholders plan to reduce their holdings by up to 2% of the company's total shares, amounting to a maximum of 24.44 million shares starting from December 22, 2025 [2] - Huashu shares' shareholders intend to reduce their holdings by up to 1% of the company's total shares, which is a maximum of 35.94 million shares [3] Group 2 - Silan Microelectronics has obtained a filing certificate for its 12-inch high-end analog integrated circuit chip manufacturing production line project, with an investment of 10 billion yuan and a monthly production capacity of 20,000 wafers [4] - Aerospace Information confirms that its main business does not involve commercial aerospace and that its operations are normal without significant changes [5] - Qinglong Pipe Industry signed a supply contract worth 294 million yuan for PCCP and pressure steel pipes, accounting for 10.43% of its 2024 revenue [6] Group 3 - Huaxin Precision plans to invest up to 1 billion yuan of idle funds in low-risk financial products [7] - Hainan Rubber received insurance compensation totaling approximately 26.65 million yuan for rubber income and tree insurance [8] - Lianmei Holdings announced the suspension of its subsidiary Fulin Thermal Power due to economic slowdown and reduced customer demand [9] Group 4 - Ruifeng Bank has been approved to issue up to 2.5 billion yuan in secondary capital bonds to enhance its capital and risk resistance [11] - China Pacific Insurance reported a 9.4% year-on-year increase in premium income for its life insurance subsidiary, totaling 250.32 billion yuan [12] - Sunshine Nuohuo signed an agreement with Peking University to establish a joint laboratory for innovative drug development [13] Group 5 - Century Huatong completed the cancellation of 56.12 million repurchased shares, reducing its total share capital from 7.428 billion to 7.372 billion shares [14] - Yaxin Security received a government subsidy of 3 million yuan [15] - Haili Biology's subsidiary received registration certification for a bone repair material in Indonesia [16] Group 6 - Yian Technology's subsidiary secured a major project for magnesium alloy components worth 430 million yuan, expected to start production by the end of March 2026 [17] - Jiangte Electric plans to contest the proposed cancellation of its lithium-containing mining rights [18] - COFCO Technology announced the resignation of its deputy general manager due to work changes [19] Group 7 - Fangsheng Pharmaceutical passed the GMP compliance inspection for its raw material production lines [21] - Bohai Ferry announced the resignation of two deputy general managers for personal and age-related reasons [22] - ST Fuhua appointed a new general manager [23] Group 8 - Huazhong CNC received project funding of 17.7 million yuan, accounting for 31.97% of its audited net profit for 2024 [24] - Oppein Home used 15 million yuan of idle funds to purchase a large time deposit with a 0.9% annual yield [25] - China General Nuclear Power's Ningde Unit 6 has begun full construction, utilizing Hualong One technology with a capacity of 1210 MW [26] Group 9 - Jiayuan Technology's chairman has had the investigation order lifted, and the company is operating normally [27] - Fulaixin Materials' application for a specific stock issuance has been approved by the Shanghai Stock Exchange [28] - Shuhua Sports plans to invest up to 500 million yuan in a health industry park project [29] Group 10 - Rhine Biology's stock will continue to be suspended due to ongoing control change and asset acquisition plans [30] - Haishi Science received approval for clinical trials for four innovative drugs targeting various diseases [31] - Hangcai Co. plans to repurchase shares worth between 50 million to 100 million yuan at a price not exceeding 80 yuan per share [32] Group 11 - Yinxin Technology received a cash dividend of 18 million yuan from its subsidiary [33] - Tianfulong plans to increase its wholly-owned subsidiary's capital by 580 million yuan [34] - Poly United's subsidiary won a bid for a stripping project worth 1.528 billion yuan [35] Group 12 - Minglida's deputy general manager resigned due to health reasons [36] - ST Guohua appointed a new deputy general manager [37] - China Xidian's subsidiaries won contracts totaling 1.005 billion yuan for Southern Power Grid projects [38]