Core Viewpoint - The stock of Zhejiang Century Huatong Group Co., Ltd. (ST Huatong) has seen significant gains, with a year-to-date increase of 176.46% and a monthly increase of 11.80%, benefiting notable investor Wei Wei who has realized substantial profits from his recent acquisition of shares through judicial auction [1][3]. Company Overview - ST Huatong was established in 2005 and successfully listed on the Shenzhen Stock Exchange in July 2011. The company initially focused on automotive parts but transitioned to the internet gaming industry in 2014, completing a major acquisition of Shengqu Games for 29.8 billion yuan in 2019, positioning itself as a leading player in the cultural media sector in A-shares [7]. - The company currently operates in three main business areas: internet gaming, automotive parts manufacturing, and artificial intelligence cloud data, while also engaging in brain science research and investment [7]. Recent Financial Performance - ST Huatong's financial forecast for the first half of 2025 indicates a net profit attributable to shareholders ranging from 2.4 billion to 3 billion yuan, representing a year-on-year growth of 107.20% to 159.00%. The expected consolidated revenue is approximately 17 billion yuan, reflecting an 83.27% increase compared to the previous year [8][9]. - The strong performance is attributed to the excellent results of its subsidiary, Diandian Interactive, which has shown robust growth in both domestic and international markets. Notable products include "Whiteout Survival" and "Kingshot," which have achieved significant revenue milestones [8][9].

Core Viewpoint - The auction of ST Huatuo shares concluded with notable interest, reflecting market expectations for the company's future despite its past challenges [2][4]. Group 1: Auction Details - The auction for approximately 22.62 million shares of ST Huatuo was won by investor Wei Wei for 279 million yuan, representing a 12.04% premium over the starting price of 249 million yuan [2]. - The shares were previously held by Shao Heng, a co-founder of ST Huatuo, whose shares were judicially frozen due to a loan dispute [2][4]. - The auction attracted three investors, but initial bidding was slow, with 31 bids and 24 extensions before Wei Wei emerged as the winner [2]. Group 2: Investor Profile - Wei Wei is known for his bold investment strategies and has a reputation for acquiring small-cap and ST stocks through judicial auctions [4]. - His public stock holdings exceeded 3 billion yuan across 27 listed companies as of the first quarter of 2025 [4]. - The shares acquired in this auction represent approximately 0.3% of ST Huatuo's total share capital, and Wei Wei will not be among the top ten shareholders post-transaction [4]. Group 3: Company Performance - ST Huatuo transitioned from automotive parts to a gaming giant, with a peak market value exceeding 100 billion yuan, but faced significant penalties for financial misconduct [5]. - In 2024, the company reported a total revenue of 22.62 billion yuan, a year-on-year increase of 70.27%, and a net profit of 1.213 billion yuan, up 131.51% [5]. - For the first half of 2025, ST Huatuo anticipates revenue between 17 billion and 30 billion yuan, reflecting a growth of 107.2% to 159% year-on-year [5]. Group 4: Subsidiary Performance - The strong performance of the subsidiary Diandian Interactive contributed significantly to ST Huatuo's revenue growth, with its flagship games performing well in both domestic and international markets [6]. - Diandian Interactive's game "Whiteout Survival" became a top revenue generator among Chinese mobile games overseas, while another title, "Kingshot," saw a 56% revenue increase in June [6]. Group 5: Data Center Business - ST Huatuo's data center business is progressing, with the Shanghai data center achieving profitability and the Shenzhen data center still under construction [7]. Group 6: Stock Performance - As of July 30, ST Huatuo's stock price increased by 3.38% to 12.84 yuan per share, resulting in an estimated profit of approximately 11.08 million yuan for Wei Wei from the auction [8].