CENTURY HUATONG(SZ:002602) Jing Ji Guan Cha Wang·2025-11-15 05:52Core Viewpoint - Century Huatong Group has successfully removed its risk warning status, leading to a significant increase in its stock price and market capitalization, positioning it as the leading gaming company in the A-share market [2][3]. Group 1: Stock Performance and Market Position - After the removal of the risk warning, Century Huatong's stock price rose for two consecutive days, closing at 19.17 yuan per share on November 13, 2025, with a total market value of 142.4 billion yuan [2]. - The stock has seen a remarkable increase of 272.96% year-to-date as of November 13, 2025, with a total market value increase of 104.1 billion yuan [2][8]. - Century Huatong has become the largest gaming company by market capitalization among 23 gaming companies listed in A-shares [2]. Group 2: Financial and Regulatory Background - The company faced financial scrutiny due to false financial reporting from 2018 to 2022, leading to its designation as "ST Huatong" on November 8, 2024 [3][7]. - The company was penalized by the China Securities Regulatory Commission (CSRC) for failing to conduct proper goodwill impairment tests and for other financial misreporting, resulting in a fine of 8 million yuan [7][6]. - As of September 30, 2025, Century Huatong's goodwill stood at 11.981 billion yuan, accounting for 27.71% of total assets, a slight decrease from 30.88% at the end of 2024 [11]. Group 3: Business Transformation and Growth - Century Huatong transitioned from an automotive parts manufacturer to a gaming company starting in 2014, acquiring several gaming firms, including a significant acquisition of Shengqu Games for 29.8 billion yuan in 2019 [3][4]. - The company reported a revenue of 92.76 billion yuan for the first half of 2024, a 53.33% increase year-on-year, and a net profit of 11.58 billion yuan, up 33.41% [8]. - For the first three quarters of 2025, Century Huatong's revenue reached 272.23 billion yuan, surpassing the total revenue for the previous year, with a net profit of 43.57 billion yuan, reflecting a year-on-year growth of 141.65% [9]. Group 4: Key Products and Market Strategy - The success of the game "Whiteout Survival" has been a significant driver of Century Huatong's revenue growth, achieving over 200 million downloads globally and ranking first in overseas mobile game revenue [9][10]. - The company has also launched new mobile games and holds several classic IPs, enhancing its market presence and competitiveness [10]. - To maintain growth, Century Huatong's sales expenses surged to 10.568 billion yuan in the first three quarters of 2025, a 103.40% increase year-on-year [11].