Core Viewpoint - Century Huatong, the largest gaming company by market capitalization in A-shares, announced that its indirect investment in Moer Thread is expected to contribute a net profit of 640 million yuan in Q4 of this year, accounting for approximately 53% of the company's audited net profit for 2024 [1][4]. Investment Impact - The successful cross-industry investment is projected to contribute significantly to Century Huatong's profits, with the investment expected to account for less than 20% of the company's net profit for the first three quarters of 2025, estimated at 4.36 billion yuan [3][9]. - Century Huatong's wholly-owned subsidiary, Shengqu Shumeng, holds about 7.3% of the shares in Guosheng Capital, which in turn holds approximately 19.589 million shares of Moer Thread, representing about 4.9% of the total share capital before the IPO and about 4.2% after the IPO [3][9]. Moer Thread IPO Performance - Moer Thread, known as the "first domestic GPU stock," was listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board on December 5, with an initial price of 114.28 yuan per share. On its first trading day, the stock opened at 650 yuan, more than quadrupling its issue price [3][9]. - As of December 10, Moer Thread's stock closed at 735 yuan, with a total market capitalization of 345.5 billion yuan, reflecting a significant increase of 16.98% on that day [4][10]. Century Huatong's Financial Performance - Century Huatong's stock price has seen substantial growth, rising from around 5 yuan at the beginning of the year to a peak of 22.49 yuan in September, with an overall increase of over 250% year-to-date [4][10]. - The company reported a record quarterly revenue of 10.02 billion yuan in Q3, marking a year-on-year growth of 60.2%, and a net profit of 1.7 billion yuan, up 163.8% year-on-year. For the first three quarters, total revenue reached 27.22 billion yuan, surpassing the previous year's total, with a net profit of 4.36 billion yuan, a year-on-year increase of 141.6% [4][10]. Game Performance - Century Huatong's subsidiary, Diandian Interactive, has achieved significant success with its game "Whiteout Survival," which has topped the overseas revenue charts for Chinese mobile games for 15 consecutive months, with global revenue exceeding 3.8 billion USD (approximately 26.8 billion yuan) as of November [5][11]. - Another successful title, "Kingshot," has also performed well, ranking second in overseas revenue for September and October, with total global revenue exceeding 640 million USD (approximately 4.5 billion yuan) since its launch in February [5][11].