Core Viewpoint - Century Huatong is experiencing rapid business growth and is expanding its game offerings while maintaining a cautious approach to business expansion [1] Group 1: Business Development - The company is expanding its personnel in both research and development as well as user acquisition areas to support its diverse game types [1] - Despite the expansion, the company emphasizes a balance between restraint and efficiency in its team growth [1]

Core Viewpoint - The impact of plagiarized products on Dd Interactive is objectively acknowledged by Century Huatong, but significant product barriers and user differences exist between Dd Interactive's works and the plagiarized products [1] Group 1 - Dd Interactive has experienced rapid development over the years, establishing a strong market presence [1] - There are substantial product barriers and deep user differences between Dd Interactive's offerings and those of the plagiarized products [1] - Dd Interactive's user acquisition and operational capabilities are unique in the industry, emphasizing the importance of focusing on its own products [1]

Core Viewpoint - The company, Century Huatong, expresses confidence in the gaming industry's future, highlighting multiple favorable developments and opportunities in the sector [4][7]. Group 1: Product Operations and New Product Incubation - The company's main SLG products, "Whiteout Survival" and "Endless Winter," are performing steadily, while another product, "Kingshot," is in a rapid growth phase. The company has sufficient resource reserves and does not face concerns regarding resource allocation [3][6]. - The subsidiary, Diandian Interactive, employs a "horse racing" mechanism for new product incubation, leveraging mature R&D capabilities and extensive user acquisition experience to enhance its new product development capacity [3][6]. - The company aims to create a second growth track beyond SLG by diversifying into casual subcategories, utilizing differentiated designs to avoid direct competition with market hits [3][6]. Group 2: Business Layout and Competitive Barriers - The core competitiveness of Diandian Interactive lies in its integrated R&D and publishing model, which helps the company break revenue records in the SLG category [3][6]. - The company has established a strong risk resistance framework against the impacts of product imitation, focusing on refining its own products [3][6]. Group 3: Financial Management - The company plans to continue optimizing its financial structure and strengthening financial management in 2026 [3][6]. Group 4: Industry Outlook - The gaming industry is experiencing a convergence of favorable factors, including increased governmental support for the dual promotion of technology and culture, heightened focus among industry players, and the efficiency improvements brought by AI technology [4][7]. - The gaming sector is characterized as a supply-driven demand market, where high-quality products remain the core growth engine [4][7].

Core Viewpoint - The company has integrated AI tools across its entire gaming business operations, enhancing efficiency and quality in various key areas [1] Group 1: AI Integration in Business Operations - AI tools have penetrated critical aspects of business operations including digital asset creation, product quality testing, customer service, marketing, and operations [1] - The internal AI tool platform developed by the subsidiary Shengqu Games includes seven core functions, such as intelligent translation, AI voice synthesis, AI character generation, AI sound effect generation, AICG dubbing, data analysis agents, and AI image enhancement [1] Group 2: Impact on Production Efficiency - The AI tool platform significantly compresses traditional production cycles, allowing for rapid project iteration and saving valuable time [1]

Group 1 - The core viewpoint of the article highlights Century Huatong's stable growth in game product layout and development strategy, with key products like "Whiteout Survival" and "Endless Winter" performing steadily, while "Kingshot" is in a rapid growth phase [1][2] - Century Huatong's stock price increased by 2.20% to 20.44 yuan, with a total market capitalization of 150.657 billion yuan, and its rolling P/E ratio of 39.99 ranks 8th in the gaming industry, which has an average P/E ratio of 44.24 [1][2] - The company maintains a cautious approach to business expansion and financial management, optimizing its financial structure and reducing financial costs by clearing past debts [2] Group 2 - Century Huatong expresses confidence in the future development of the gaming industry, citing favorable policy environments and the emphasis on technology and culture, as well as the empowering effect of AI on industry efficiency [2] - The company employs a "horse racing" mechanism in its new product incubation process to ensure high recovery efficiency and success rates, leveraging its R&D capabilities and past successes [1][2] - As of September 30, 2025, Century Huatong had 159,127 shareholders, an increase of 51,896, with an average holding value of 946,800 yuan and an average holding quantity of 46,300 shares [2]

Group 1 - The company held an investor communication meeting on January 19, 2026, attended by 25 institutions, including major securities and investment firms [1] - Key topics discussed included the performance of core gaming products, new product incubation mechanisms, resource allocation strategies, cost control, and industry development prospects [2] Group 2 - Core products such as "Whiteout Survival" and "Endless Winter" are performing steadily, while "Kingshot" is in a rapid growth phase; the company has sufficient resource reserves [3] - The company employs a "horse racing mechanism" for new product incubation, ensuring efficient recovery of R&D pipelines and deepening its presence in the casual gaming sector [3][4] - The company has accumulated substantial R&D and user acquisition experience in casual and SLG games, with a focus on integrating these strengths to enhance competitive advantages [3][4] Group 3 - The company maintains a cautious approach to team expansion while optimizing financial expenses, having reduced financial costs through debt repayment [4] - The company plans to continue optimizing its financial structure and strengthening financial management in 2026 [4] Group 4 - The gaming industry is experiencing multiple favorable conditions, including improved policy environments, increased focus among game developers, and significant enhancements from AI technology [5] - The company emphasizes that the gaming industry operates on a supply-driven demand model, expressing confidence in its future prospects [5] - Despite competition from product and user acquisition material plagiarism, the company has established significant product barriers and user differentiation, prioritizing the quality of its own products [5][6] Group 5 - The company showcased clear strategies regarding product layout, operational capabilities, and industry insights during the investor communication, indicating potential opportunities in high-quality development within the gaming industry [7]

Core Viewpoint - The company, Century Huatong, is focusing on sustainable high-quality business development and has made progress in debt repayment, which has effectively reduced financial expenses [1] Financial Management - The company has cleared some past debts, leading to a reduction in financial costs [1] - In 2026, the company plans to continue optimizing its financial structure and strengthen financial management to enhance overall financial health [1]

Group 1: Product Development and Strategy - Both "Whiteout Survival" and "Endless Winter" are performing steadily, with "Kingshot" in a rapid growth phase. The company has sufficient resources, ensuring no single product faces resource allocation issues [1] - The company employs a "horse racing" mechanism for new product incubation, enhancing recovery efficiency and success rates [1] - The company has accumulated substantial R&D and user acquisition experience in the casual gaming and SLG sectors, with successful integration of SLG+X products reinforcing its competitive edge [1] Group 2: Financial Management and Personnel Expansion - The company has expanded its personnel in response to rapid business growth, maintaining a balance between cautious expansion and efficiency [2] - Financial expenses are expected to improve as the company continues to optimize its financial structure and manage past debts effectively [2] Group 3: Market Insights and Competitive Landscape - There is little difference in overseas user acquisition channels for casual and SLG games, although content and frequency may vary based on target demographics. Casual games are projected to have longer lifecycles and more stable customer bases [2] - The impact of product imitation exists, but the company has established significant product barriers and user depth differences, alongside strong user acquisition and operational capabilities [2] - The gaming industry is experiencing multiple favorable factors, including supportive policies, focused industry professionals, and AI enhancements, indicating a supply-driven demand model [2]

Core Insights - The article highlights the impressive performance of "Whiteout Survival," developed by Century Huatong, which has risen from eighth to fourth place in the global mobile game revenue rankings for 2025, with a revenue nearing $1 billion in 2024 and a projected annual growth rate of approximately 50% for 2025 [1][4]. Group 1: Game Performance - "Whiteout Survival" is recognized as the world's first ice and snow survival-themed SLG game, achieving significant revenue growth and becoming the champion of growth within the $1 billion revenue tier [1][4]. - The game has a broad market presence, with the United States, Japan, South Korea, and Taiwan being the top four revenue-generating markets, showcasing a doubling of revenue in Japan and a 70% increase in South Korea [1][4]. Group 2: Market Trends - The success of "Whiteout Survival" aligns with the explosive growth of the strategy game genre, which is projected to generate $13 billion in in-app purchase revenue in 2025, making it the highest-grossing game type globally [2][5]. - The game contributes significantly to the SLG segment and utilizes a "SLG+X" fusion gameplay approach, breaking user barriers and driving market growth [2][5]. Group 3: Company Strategy - Century Huatong's systematic capabilities support the game's success, leveraging a data-driven "research, operation, and development" collaborative system to create a competitive and differentiated product matrix [3][6]. - The company employs deep localization strategies to tailor activities and marketing content to regional player needs, enhancing user engagement in key overseas markets [3][6]. - The rise of "Whiteout Survival" reflects Century Huatong's leading position in the global mobile gaming sector, with a dual strategy of "strong leadership and multi-category collaboration" [3][6].

Core Viewpoint - The 9th World Zhejiang Business Forum and the 2025 Shanghai Zhejiang Chamber of Commerce Annual Meeting highlighted the theme of "running forward," exploring new development paths amid global economic changes and technological revolutions. Century Huatong was awarded the "Flowing Global Award" for its outstanding performance in globalization, industrial innovation, and high-quality development [1][6]. Group 1: Award Significance - The "Golden Name Card" award aims to recognize member enterprises that excel in innovation, craftsmanship, quality leadership, and globalization, reflecting the spirit and responsibility of Zhejiang merchants [2][8]. - Century Huatong's focus on the core gaming industry and its active expansion into international markets have established a global distribution system, contributing to global industrial upgrades [2][8]. Group 2: Financial Performance - Century Huatong reported a revenue of 27.223 billion yuan and a net profit of 4.357 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 141.65% [2][8]. - The company's net profit after deducting non-recurring items reached 4.294 billion yuan, also reflecting a year-on-year growth of 140.98%, with operating cash flow increasing by 81.33% to 6.278 billion yuan [2][8]. Group 3: Market Position - In the competitive global gaming market, Century Huatong's overseas gaming business has become a key growth driver, ranking second among Chinese mobile game publishers globally [5][10]. - The company's game "Whiteout Survival" topped the overseas mobile game revenue list, while "Kingshot" and "Tasty Travels: Merge Game" also achieved significant rankings [5][10]. - The "Flowing Global Award" acknowledges Century Huatong's commitment to global market development and its embodiment of the Zhejiang merchant spirit [5][10].