Core Viewpoint - Century Huatong held its first investor communication meeting after "removing the hat" on November 25, discussing key issues such as product lifecycle, team equity incentives, and rising user acquisition costs [2][3]. Group 1: Company Performance and Growth - Century Huatong expects to exceed 10 billion in revenue by Q3 2025, positioning itself as the sixth largest gaming company globally, close to Electronic Arts (EA) [2]. - The company reported that approximately two-thirds of its profits currently come from its subsidiary, Diandian Interactive, with significant growth in R&D expenses attributed to expanding its overseas operations [5]. Group 2: Key Products - The flagship products, "Whiteout Survival" and "Kingshot," are crucial growth drivers, with "Whiteout Survival" breaking multiple records since its overseas launch this year [3]. - The overlap in users between "Whiteout Survival" and "Kingshot" is about 20% in overseas markets, indicating that the market does not perceive these products as overly similar [3]. Group 3: Future Strategies - The company prioritizes the casual gaming sector for future product development, with plans to test multiple products within the same category using a fast and low-cost approach [4]. - Century Huatong aims to optimize its incentive mechanisms for the Diandian team, combining cash and equity incentives to ensure team stability [5]. Group 4: Market Dynamics - The recent changes in Apple's payment policies for mini-programs are expected to enhance user payment rates, as the previous system negatively impacted user experience [6]. - Rising user acquisition costs are a concern, with increased competition leading to higher expenses in both domestic and international markets [6]. Group 5: Industry Outlook - The "14th Five-Year Plan" has explicitly recognized the cultural and industrial value of online gaming, suggesting a favorable policy environment for the industry [7].

Core Insights - Century Huatong's stock price has increased by 244.75% year-to-date, with a recent drop of 2.05% to 17.72 CNY per share [1] - The company reported a significant revenue growth of 75.31% year-on-year, reaching 27.22 billion CNY for the first nine months of 2025 [2] - The net profit attributable to shareholders surged by 141.65% year-on-year, amounting to 4.36 billion CNY [2] Financial Performance - As of September 30, 2025, Century Huatong's total market capitalization is approximately 131.63 billion CNY [1] - The company has seen a net outflow of 66.49 million CNY in principal funds recently, with large orders showing mixed buying and selling activity [1] - The company has not distributed any dividends in the last three years, with a total payout of 710 million CNY since its A-share listing [3] Shareholder Information - The number of shareholders increased by 48.40% to 159,100 as of September 30, 2025, while the average number of circulating shares per person decreased by 32.85% to 43,073 shares [2] - Hong Kong Central Clearing Limited is the seventh-largest circulating shareholder, holding 111 million shares, a decrease of 3.31 million shares from the previous period [3] Business Overview - Century Huatong's main business segments include mobile games (84.70% of revenue), PC games (9.85%), and automotive parts (4.11%) [1] - The company operates in the media and gaming industry, with involvement in e-sports, cloud gaming, and mobile gaming concepts [2]

Core Viewpoint - Century Huatong has experienced explosive growth driven by its strong overseas gaming performance, achieving significant revenue and profit increases in recent quarters [4][5]. Financial Performance - In Q3 2023, Century Huatong reported revenue of 10.016 billion yuan, a year-on-year increase of 60.19%, and a net profit of 1.701 billion yuan, up 163.78% [4]. - The company has achieved ten consecutive quarters of revenue growth and has surpassed a market capitalization of 100 billion yuan, positioning itself as a leader in the gaming sector [4]. Business Strategy and Growth Drivers - The rapid growth is primarily attributed to its subsidiary, Diandian Interactive, which contributes two-thirds of the company's profits [5]. - Century Huatong emphasizes the importance of classic long-term products, which continue to perform well and exceed industry averages in user engagement and revenue per user [5]. Game Development Pipeline - The company is developing new games across multiple genres, including casual, SLG, ARPG, MMO, and card games, with a focus on a "blooming period" for SLG and casual games in the coming year [6]. - The impact of changes in Apple's mini-program game revenue share is estimated to affect Century Huatong's income by around 2%, but is expected to improve user retention and payment rates [6]. AI Integration in Gaming - The chairman of Century Huatong, Wang Ji, highlighted the significant role of AI in the gaming industry, viewing it as a key driver for technological advancement and industry upgrades [8][9]. - The company has implemented AI tools in its game production processes, resulting in a 60% to 80% increase in content production efficiency [10]. Market Trends and Future Outlook - The global gaming market is projected to reach 3.58 to 3.6 billion players by 2025, with mobile gaming being the primary growth engine [9]. - AI technology is expected to revolutionize production efficiency and innovate user experiences, leading to personalized gaming experiences [9].

Industry Overview - In November 2025, the National Press and Publication Administration approved a total of 178 domestic online games, including titles from Baidu Duoku and Qunyou Technology [1] - The approval of 6 imported online games was also announced, indicating a continued interest in both domestic and international gaming content [1] - The gaming industry is currently experiencing high market sentiment, with an increase in user ARPU (Average Revenue Per User) contributing to steady market growth [1] Policy Impact - Recent policies such as "Several Policy Measures to Expand Service Consumption" and "Guiding Opinions on Vigorously Developing Digital Consumption" are favorable for industry development [1] - The integration of AI multimodal functions is significantly contributing to cost reduction and efficiency improvements for gaming companies [1] Company Insights - Giant Network focuses on high-quality game development and player-centric approaches, successfully launching multiple titles in both PC and mobile gaming markets, particularly excelling in MMORPG and multiplayer casual competitive genres [1] - Century Huatong has established a complete ecosystem for its gaming business, encompassing research and development, global distribution, and operations, with subsidiaries like Diandian Interactive and Shengqu Games [1]

Core Viewpoint - Century Huatong has made an indirect investment in Moore Threads, holding approximately 0.35806% of the company through its wholly-owned subsidiary, Shanghai Shengqu Shuming Enterprise Management Co., Ltd [1] Group 1 - Century Huatong disclosed its investment in Moore Threads on an interactive platform [1] - The investment was made through an industry fund managed by its subsidiary [1] - The effective shareholding percentage in Moore Threads is approximately 0.35806% after penetration [1]

Core Insights - The company has reported that its Shanghai Songjiang data center has achieved profitability, while the Shenzhen data center has not yet reached profitability [2] - The impact of the computing power business on the company's revenue and profits remains minimal, indicating a cautious outlook for investors [2] - The Shenzhen data center is in collaboration with Huawei, but its business scale is currently small [2]

Core Viewpoint - The company, Century Huatong, is positioned as a leading player in the gaming industry, leveraging technology to drive content and connect with a broader digital world, emphasizing the importance of gaming in the development of AI infrastructure [3][4][7]. Company Strategy - The gaming industry is seen as a crucial driver for advancements in AI, with gaming pushing the development of CPU/GPU capabilities, which are foundational for AI [4][6]. - The company aims to diversify its product offerings across various gaming genres, including SLG, ARPG, MMO, and card games, with a focus on launching new products in the upcoming year [4][6]. Business Performance - Century Huatong reported over 10 billion in revenue for the third quarter, ranking sixth globally among gaming companies, with a notable acceleration in growth [7][8]. - The company has a strong portfolio of classic long-term products that continue to perform well, maintaining user engagement and revenue per user (ARPU) above industry averages [4][5]. Competitive Advantage - The company's core competitive advantage lies in its integrated system capabilities, combining research, publishing, and operations, supported by data-driven decision-making [5][6]. - The company has established a significant presence in overseas markets, differentiating itself from competitors like Tencent and NetEase, which dominate the domestic market [4][6]. Future Outlook - The company is optimistic about the growth potential in overseas markets, which are four times larger than the domestic market, and is currently leading in the game export sector [6][8]. - The company is focused on maintaining a robust pipeline of new products, with a commitment to data-driven development to identify successful game concepts [5][6]. Financial Insights - The company’s profit structure indicates that approximately two-thirds of profits come from its flagship product, with ongoing efforts to optimize team incentives through a combination of cash and equity rewards [10][11]. - The company is aware of rising competition and costs in user acquisition, particularly in the domestic market, and is adapting its strategies accordingly [16][18].

Core Viewpoint - Century Huatong, a leading player in the gaming industry, is focusing on overseas expansion and leveraging AI technology to drive growth and innovation in its product offerings [2][3][5]. Financial Performance - In Q3 2023, Century Huatong achieved revenue exceeding 10 billion yuan, marking a year-on-year growth of 60.19%, positioning the company as the sixth largest gaming company globally [2]. - The company's market capitalization reached 137.048 billion yuan, reflecting its successful recovery after "removing the hat" on November 12 [2]. Strategic Focus - The company is committed to expanding its overseas market presence, which is seen as a key growth avenue given the larger population and market size compared to domestic markets [3]. - Century Huatong's product strategy includes a diverse portfolio with multiple game genres, including casual, SLG, ARPG, MMO, and card games, with a focus on launching new titles in 2024 [3][6]. Market Challenges - Rising user acquisition costs are a concern, with both domestic and international costs increasing due to intense competition [4]. - The casual gaming segment is highly competitive, with major players like ByteDance and Tencent dominating the market [6]. Technological Integration - The company views AI as a critical component of its strategy, emphasizing the importance of technological advancements in gaming for driving performance upgrades in hardware [5]. - Century Huatong employs a data-driven approach in its operations, utilizing extensive A/B testing and ROI modeling to inform decision-making [7]. Product Development - The company has launched over 20 casual games for market testing in 2023, adopting a "low-cost, fast-iteration" model to identify successful products [3][6]. - The upcoming title "Tasty Travels: Merge Game" is expected to be a significant release following continuous adjustments [3]. Operational Efficiency - Century Huatong has developed a comprehensive "R&D-Distribution-Operation" integrated system that supports its global expansion and local market adaptation [6][7]. - The company emphasizes the importance of user behavior data analysis in optimizing game design and enhancing customer acquisition efficiency [7].

Group 1: Galaxy Fund Research on Listed Companies - Galaxy Fund recently conducted research on two listed companies: Luxshare Precision and Century Huatong [1][2] Group 2: Luxshare Precision Highlights - Luxshare Precision has developed core capabilities across the entire supply chain in the humanoid robot sector, capable of independently processing key components such as harmonic gears, except for batteries and some joint modules [1] - The company has a rich product matrix in the automotive sector, including high and low voltage wiring harnesses, special wiring harnesses, and fast-charging guns, all of which have shown strong growth globally [1] - The company's office is located at 313 Beihuan Road, Qingxi Town, Dongguan City, Guangdong Province [1] Group 3: Century Huatong Insights - Century Huatong's games launched in 2023 are still reaching new highs, with no observed peak in their lifecycle; the game Kingshot is breaking overseas records [2] - The company has released at least 20 products in 2023, driven by data, with point profits accounting for about two-thirds of total profits [2] - The adjustment in mini-program commission rates is expected to impact company revenue by approximately 2 percentage points but is anticipated to enhance user retention and payment rates [2] Group 4: Galaxy Fund Overview - As of now, Galaxy Fund has an asset management scale of 107.995 billion yuan, ranking 57th out of 211 in total public funds [3] - The fund has 151 public funds under management, ranking 50th out of 211, and employs 24 public fund managers, ranking 59th out of 211 [3] - The best-performing public fund product in the past year is the Galaxy CSI Communication Equipment Theme Index Fund A, with a net value of 1.76 and a growth of 79.53% over the past year [3]

Group 1: Lixun Precision - The company has developed core capabilities across the entire industry chain in the humanoid robot sector, capable of independently completing precision processing of key components such as harmonic gears, except for batteries and some joint modules [1] - Lixun Precision has a rich product matrix in the automotive business, having established its presence for many years, with good development momentum globally in high and low voltage harnesses, high-speed harnesses, special harnesses, and fast-charging guns [1] - The company's office is located at No. 313, Beihuan Road, Qingxi Town, Dongguan City, Guangdong Province [1] Group 2: Century Huatong - The games launched in 2023 are still reaching new highs, with no observed peak in their lifecycle; Kingshot is breaking overseas records previously set by Whiteout Survival, indicating a larger overseas market with more users [2] - The company has released no fewer than 20 products since 2023, driven by data, with hit products contributing approximately two-thirds of total profits; the incentive mechanism combines cash and equity [2] - The adjustment in mini-program commission rates is expected to impact the company's revenue by about 2 percentage points but is beneficial for improving user retention and payment rates [2] Group 3: Jin Ying Fund - Established in 2002, Jin Ying Fund has an asset management scale of 75 billion and ranks 74th out of 211 in total public fund management [2] - The fund's non-monetary public fund management scale is 43.23 billion, ranking 83rd out of 211 [2] - The best-performing public fund product in the past year is Jin Ying Information Industry Stock A, with a latest unit net value of 3.49 and a growth of 42.28% over the past year [2]