CENTURY HUATONG(SZ:002602) Xin Lang Zheng Quan·2025-09-04 09:43Core Insights - ST Huatuo reported significant growth in its 2025 semi-annual results, with revenue reaching 17.207 billion yuan, an increase of 85.5% year-on-year, and net profit attributable to shareholders at 2.656 billion yuan, up 129.33% year-on-year [1] Game Business: Domestic and Overseas Growth - The overseas market continues to lead, with Century Games' two main products, "Whiteout Survival" and "Kingshot," performing exceptionally well. "Whiteout Survival" has generated over $2.8 billion globally and topped the global mobile game revenue chart in March 2025 [2] - The domestic market shows steady growth, with "Whiteout Survival" maintaining a position in the iOS top 10 revenue charts, and new releases from Shengqu Games performing well, including "Dragon Valley World," which debuted in the iOS top 10 on launch day [2] "X+SLG" Strategy and Localization - The company's success is attributed to its "X+SLG" product strategy, combining light gameplay elements with traditional SLG gameplay, which lowers entry barriers and attracts a broader user base. Localization efforts are tailored to different markets, such as incorporating local cultural elements in Japan [3] AI Technology Empowerment - The company has actively integrated AI technology, resulting in a 60%-80% increase in efficiency in art production and improved content generation processes. The establishment of AI computing centers has also contributed to revenue and profit growth [4] Potential Risks and Challenges - Sales expenses surged to 6.564 billion yuan, a 121.72% increase, while R&D expenses rose by 24.73% to 1.024 billion yuan, putting pressure on profit margins. Financial expenses increased significantly due to exchange rate losses, highlighting risks associated with overseas revenue [5] - The company's revenue heavily relies on a few hit products, raising concerns about sustainability in a competitive market with rapidly changing consumer preferences [5] - Historical issues, including past accounting errors, have led to ongoing legal challenges, which remain a potential risk despite current strong performance [6] Summary - ST Huatuo achieved remarkable revenue and profit growth in the first half of 2025, driven by its effective "X+SLG" strategy, successful overseas localization, and AI technology enhancements. Key titles like "Whiteout Survival" and "Kingshot" are significant contributors to its performance [7]