CENTURY HUATONG(SZ:002602) 经济观察报·2025-11-15 10:12Core Viewpoint - Century Huatong has transformed from a financially troubled company to a market-favored "game king" due to its successful mobile game "Whiteout Survival," which has generated over 20 billion yuan in revenue by September 2023 [1][12]. Financial Performance - As of November 13, 2025, Century Huatong's stock price reached 19.17 yuan per share, with a total market capitalization of 142.4 billion yuan, making it the highest valued game company in A-shares [2]. - The company's stock price has increased by 272.96% year-to-date as of November 13, 2025, with a total market value increase of 104.1 billion yuan [3]. - For the first three quarters of 2025, Century Huatong reported revenue of 27.22 billion yuan, surpassing the total revenue of the previous year, and a net profit of 4.36 billion yuan, reflecting a year-on-year growth of 141.65% [11]. Business Transformation - Century Huatong transitioned from an automotive parts manufacturer to a gaming company starting in 2014, acquiring several game companies and significantly increasing its goodwill [5][6]. - The company faced financial risks due to its rapid acquisitions, leading to a significant increase in goodwill from 2 billion yuan in 2017 to 22.05 billion yuan in 2020 [7]. Game Success - "Whiteout Survival," developed by Century Huatong's subsidiary, has become a top performer in both domestic and international markets, achieving over 200 million downloads and generating over 3.5 billion USD (approximately 24.8 billion yuan) in global revenue by September 2023 [12][13]. - The game has maintained a leading position in the Chinese mobile game export revenue rankings for 15 consecutive months and topped the global mobile game revenue chart in March 2023 [12]. Regulatory Issues - Century Huatong was previously penalized for financial misconduct, including false reporting of goodwill and revenue recognition, leading to a significant decline in stock price [4][9]. - The company has since corrected its financial statements for 2018 to 2022 and has faced investor lawsuits totaling approximately 73.16 million yuan [9]. Market Position - Century Huatong has positioned itself as a key player in the gaming industry, leveraging its strong IP portfolio and backing from Tencent to enhance its market presence [13].