Hubei Century Network Technology (SZ:300494)2025-01-24 11:16Financial Performance - The company expects a net loss of between 190 million and 280 million yuan for the fiscal year 2024, compared to a profit of 169.35 million yuan in the same period last year [3]. - The net profit after deducting non-recurring gains and losses is projected to be a loss of between 201.65 million and 291.65 million yuan, down from a profit of 160.62 million yuan in the previous year [3]. - The decline in performance is primarily due to significant changes in the operations of its wholly-owned subsidiary, Shanghai Tianxi Interactive Network Technology Co., Ltd., including a drop in revenue from launched products and the termination of a joint development project for the IP game "Age of Sail: Sea Overlord" due to market conditions [5]. Impairment and Provisions - The company plans to recognize an impairment provision for goodwill amounting to 203.84 million yuan based on actual operating conditions and relevant accounting standards [6]. - The company conducted impairment tests on pre-paid revenue shares for four games, including "Sword and Knight Regiment," and recognized impairment provisions, contributing to a significant decline in profits [6]. Game Performance and Market Response - The newly launched fighting game "Star Wings" and the independent game "Heroic Legend" received positive feedback from domestic and overseas players, but some anticipated new games like "Sword and Knight Regiment" underperformed, leading to increased marketing costs and a situation where revenue could not cover costs [6]. Investor Guidance - The company will provide detailed financial data in the 2024 annual report, and investors are advised to exercise caution based on preliminary estimates [7].