CENTURY HUATONG(SZ:002602) 2 1 Shi Ji Jing Ji Bao Dao·2025-11-28 04:21Core 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].