Core Viewpoint - The company emphasizes the importance of the gaming industry in driving AI development and positions itself as a key player in the digital world, focusing on technology-driven content and a robust product matrix [2][3][5]. Company Strategy and Industry Outlook - The chairman believes that gaming is crucial for AI infrastructure, as it drives advancements in CPU/GPU technology, which are foundational for AI [2]. - The company aims to leverage gaming as a gateway to the digital world and enhance human-AI interaction [2]. Business Performance and Product Development - The company has a strong portfolio of classic long-term products, with several top IPs maintaining high ARPU and user retention, exceeding industry averages [3]. - The product matrix is diverse, with multiple genres being developed, particularly focusing on SLG and casual games, which are expected to see significant releases in the coming year [3]. - The company is recognized as the leading Chinese game company in overseas revenue, with a growing market share [3][5]. Competitive Advantage - The company's core competitive advantage lies in its integrated system capabilities that combine research, publishing, and operations, all driven by data [4][5]. - This data-driven approach minimizes subjective decision-making and enhances operational efficiency through extensive A/B testing [4]. Financial Performance - The company reported over 10 billion in revenue for Q3, ranking sixth among global gaming companies and achieving a doubling in growth rate [5]. - The company is noted for its ability to maintain growth despite its large scale, which is a rare combination in the industry [5]. Market Dynamics and Challenges - The company faces rising user acquisition costs both domestically and internationally, with increased competition in the domestic market [8]. - The company is adapting to changes in revenue models, such as the impact of platform fee adjustments, which are expected to have a minor effect on overall income but could improve user retention and payment rates [9]. Future Directions - The company plans to continue expanding its presence in the casual gaming sector, aiming for breakthroughs that could significantly impact its growth trajectory [6]. - The company is committed to optimizing its incentive mechanisms to ensure team stability and performance, particularly in its high-contribution segments [7].

Flash | 13 Nov 2025 16:28:56 ET │ 11 pages Century Huatong (002602.SZ) What's New from Citi 2025 China Conference: A Rising China Online Gaming Giant CITI'S TAKE Century Huatong attended Day 3 of Citi's 2025 China Conference (Nov 13), right after recent ST restriction lift on Nov 12. Key takeaways: 1) resilient performance on expanding Century Games portfolio; 2) key success factors of Century Games; 3) incremental profit from Chuanqi IP licensing; 4) +ve flow after restriction lift; 5) possibility on cloud ...

Core Insights - Sensor Tower's latest data shows that Diandian Interactive's three products dominate the October overseas mobile game revenue chart, with "Whiteout Survival" and "Kingshot" consistently taking the top two spots, while "Tasty Travels: Merge Game" saw a 15% revenue increase, rising to 17th place [1][4] - The games have launched Halloween-themed events to boost player engagement and spending, contributing to Diandian Interactive's position as the second-highest global mobile game publisher by revenue [1][4] Revenue Rankings - "Whiteout Survival" and "Kingshot" are ranked 1st and 2nd respectively, while "Tasty Travels: Merge Game" is ranked 17th [2] - Other notable entries include "Gossip Harbor: Merge & Story" at 3rd, "Last Z: Survival Shooter" at 4th, and "Seaside Escape: Merge & Story" at 10th [4][11] Growth Highlights - "Gossip Harbor" achieved a 9% month-over-month revenue growth, while "Flambé: Merge & Cook" saw a significant 37% increase, entering the revenue chart at 26th place [4] - "Trickcal: Chibi Go" launched in early October and experienced a 320% surge in overseas revenue, making it to the revenue chart at 27th place [5] - "Top Tycoon: Coin Theme Empire" also debuted on the revenue chart, with revenues exceeding 85 times that of June, ranking 5th in the coin-piracy genre [5] Download Rankings - "Block Blast!" topped the download chart with a 41% increase in downloads, marking its highest value since launch [10][12] - "X-Clash" saw a remarkable 466% increase in downloads, securing the second position in the download rankings [12] - "Mobile Legends: Bang Bang" maintained its popularity with a 7% increase in downloads, ranking 3rd [12]

Core Insights - The Chinese gaming market's actual sales revenue for Q3 2025 reached 880.26 billion yuan, marking a quarter-on-quarter growth of 6.96% but a year-on-year decline of 4.08% [1] - The revenue from self-developed games in overseas markets was 49.94 billion USD, with a quarter-on-quarter increase of 6.34% and a year-on-year decrease of 3.39% [1] Market Performance - The client game market in China generated 202.9 billion yuan in Q3 2025, with a quarter-on-quarter growth of 16.05% and a year-on-year growth of 19.88% [1] - The mobile game market's revenue was 643.89 billion yuan, showing a quarter-on-quarter increase of 4.39% but a year-on-year decline of 1.93% [1] - The web game market saw a revenue of 10.75 billion yuan, with a quarter-on-quarter decrease of 1.41% [1] Company Performance - In the first three quarters of 2025, 23 A-share gaming companies reported a total revenue of 772.45 billion yuan, a year-on-year increase of 23.30%, and a net profit of 141.67 billion yuan, up 73.95% [2][3] - Century Huatong achieved significant growth with a revenue of 272.23 billion yuan and a net profit of 43.57 billion yuan, marking a year-on-year increase of 141.65% [3] - 13 out of 23 gaming companies reported revenue growth, while 17 companies were profitable, indicating a positive trend in the industry [3] Notable Companies - Perfect World and Giant Network improved their rankings to 3rd and 7th respectively, while Jiubite also saw a ranking increase [6] - Jiubite's revenue for the first three quarters was 44.86 billion yuan, with a year-on-year growth of 59.17% and a net profit of 12.14 billion yuan, up 84.66% [7] - Ice Age Network turned a profit with a revenue of 18.76 billion yuan, despite a year-on-year decline of 5.39%, and a net profit of 5.02 billion yuan, a significant increase from a loss in the previous year [8]

Core Insights - The Chinese gaming market's actual sales revenue for Q3 2025 reached 880.26 billion yuan, marking a quarter-on-quarter growth of 6.96% but a year-on-year decline of 4.08% [1] - The revenue from self-developed games in overseas markets was 4.994 billion USD, with a quarter-on-quarter increase of 6.34% and a year-on-year decrease of 3.39% [1] - A total of 23 A-share gaming companies reported a combined revenue of 772.45 billion yuan for the first three quarters of 2025, reflecting a year-on-year growth of 23.30% [2][3] Market Performance - The client game market in China generated 202.9 billion yuan in Q3 2025, with a quarter-on-quarter increase of 16.05% and a year-on-year increase of 19.88% [1] - The mobile game market's revenue was 643.89 billion yuan, showing a quarter-on-quarter growth of 4.39% but a year-on-year decline of 1.93% [1] - The web game market saw a revenue of 10.75 billion yuan, with a quarter-on-quarter decrease of 1.41% [1] Company Performance - Century Huatong reported a revenue of 27.223 billion yuan for the first three quarters, a year-on-year increase of 75.31%, and a net profit of 4.357 billion yuan, up 141.65% [2][3] - Perfect World achieved a revenue of 5.417 billion yuan, a year-on-year increase of 33.00%, and a net profit of 0.666 billion yuan, up 271.17% [2] - G-bits reported a revenue of 4.486 billion yuan, a year-on-year increase of 59.17%, and a net profit of 1.214 billion yuan, up 84.66% [2][7] New Product Impact - G-bits launched successful new games, contributing to a revenue of 19.68 billion yuan in Q3, a year-on-year increase of 129.19% [7] - Ice Age Network turned a profit with a revenue of 1.876 billion yuan, despite a year-on-year decline of 5.39% [8] - Century Games' titles, including "Kingshot," significantly boosted revenue, with the game surpassing 100 million USD in monthly revenue [5][4]

Core Insights - The Chinese gaming market's actual sales revenue for Q3 2025 reached 880.26 billion yuan, marking a quarter-on-quarter growth of 6.96% but a year-on-year decline of 4.08% [1] - The revenue from self-developed games in overseas markets was 4.994 billion USD, with a quarter-on-quarter increase of 6.34% and a year-on-year decrease of 3.39% [1] - A total of 23 A-share gaming companies reported a combined revenue of 772.45 billion yuan for the first three quarters of 2025, reflecting a year-on-year growth of 23.30% [2] Market Performance - The client game market in China generated 202.9 billion yuan in Q3 2025, with a quarter-on-quarter increase of 16.05% and a year-on-year increase of 19.88% [1] - The mobile game market's revenue was 643.89 billion yuan, showing a quarter-on-quarter growth of 4.39% but a year-on-year decline of 1.93% [1] - The web game market saw a revenue of 10.75 billion yuan, with a quarter-on-quarter decrease of 1.41% [1] Company Performance - Century Huatong reported a revenue of 272.23 billion yuan for the first three quarters, surpassing last year's total, with a net profit of 43.57 billion yuan, up 141.65% [3] - 13 out of 23 gaming companies achieved revenue growth, while 17 companies reported profitability [3] - Perfect World and Giant Network improved their rankings to 3rd and 7th respectively, while Jiubite also moved up two places [6] Notable Companies - Century Games, a subsidiary of Century Huatong, significantly contributed to revenue growth, with its games topping the overseas revenue charts [4] - 37 Interactive Entertainment maintained its position as the second-largest A-share gaming company, with a revenue of 124.61 billion yuan, despite a year-on-year decline of 6.59% [5] - Jiubite's revenue for the first three quarters was 44.86 billion yuan, reflecting a year-on-year increase of 59.17% [7] Strategic Adjustments - Ice Glacier Network shifted its focus from quantity to quality in marketing, resulting in a significant reduction in sales expenses by 52.31% [8] - The company reported a net profit of 5.02 billion yuan for the first three quarters, compared to a loss in the previous year, indicating a successful turnaround [8]

Core Insights - The A-share gaming industry is experiencing significant growth, with many companies reporting increased revenues and profits in the third quarter of 2025, driven by a focus on high-quality game development and international expansion [5][7][9]. Revenue and Profit Performance - In the third quarter, 13 out of 23 A-share gaming companies reported year-on-year revenue growth, with total revenue reaching 299.99 billion yuan, a 29.29% increase from 232.03 billion yuan in the same period last year [7]. - The net profit for these companies collectively reached 58.15 billion yuan, doubling from 29.05 billion yuan year-on-year [7]. - For the first three quarters of 2025, total revenue was 838.40 billion yuan, up 25.03% from 670.56 billion yuan, while net profit increased by 80.64% to 138.42 billion yuan [7]. Key Company Performances - Century Huatong achieved a third-quarter revenue of 100.16 billion yuan, a 60.19% increase, and a net profit of 17.01 billion yuan, up 163.78% [11]. - Jiubang Network reported a revenue of 19.68 billion yuan in the third quarter, a 129.19% increase, with a net profit of 5.69 billion yuan, up 307.7% [13]. - Giant Network's third-quarter revenue was 17.06 billion yuan, a 115.63% increase, with a net profit of 6.40 billion yuan, up 81.19% [14]. - Perfect World reported a revenue of 17.26 billion yuan, a 31.45% increase, and a net profit of 1.62 billion yuan, up 176.59% [15]. Market Trends and Future Outlook - The gaming industry is entering a "golden decade," supported by favorable policies and a shift towards high-quality game development rather than reliance on imitation [5][9]. - The number of game licenses issued in 2025 has already surpassed the total for 2024, indicating a robust pipeline for new game releases [9]. - Companies like Century Huatong are gaining global recognition, with successful titles like "Whiteout Survival" achieving over 200 million downloads [12]. Challenges and Competitive Landscape - Some companies, such as 37 Interactive Entertainment, are facing challenges with revenue declines, attributed to product lifecycle issues and regulatory scrutiny [17][18]. - The competitive landscape is shifting, with traditional companies needing to innovate to keep pace with emerging trends and consumer preferences [19].

Core Points - Century Huatong, the largest gaming company by market capitalization in A-shares, has received approval from the Shenzhen Stock Exchange to withdraw its other risk warnings, allowing its stock to resume trading under its original name [1] - The company's stock will see an increase in daily trading limit from 5% to 10% following the removal of risk warnings [1] - As of November 10, the stock closed at 17.61 yuan per share, with a year-to-date increase of over 200%, and a total market capitalization of 130.8 billion yuan [1] Financial Performance - In Q3 2025, the company reported revenue of 10.016 billion yuan, a year-on-year increase of 60.19%, and a net profit of 1.701 billion yuan, up 163.78% [2] - The company achieved its first quarterly revenue exceeding 10 billion yuan, marking ten consecutive quarters of revenue growth [2] Game Performance - The company's strong performance is supported by its popular games, with its subsidiary, Diandian Interactive, ranking second in global revenue among Chinese mobile game publishers, only behind Tencent [4] - The game "Whiteout Survival" has topped the Chinese mobile game overseas revenue chart for 15 consecutive months, with global revenue exceeding 3.5 billion USD (approximately 24.9 billion yuan) as of September [4] - Another game, "Kingshot," has generated over 400 million USD (approximately 2.8 billion yuan) in global revenue since its launch in February, ranking second in the overseas revenue chart for September [4]

Core Viewpoint - Century Huatong, the largest gaming company by market capitalization in A-shares, has received approval from the Shenzhen Stock Exchange to withdraw its other risk warnings, allowing its stock to resume trading under its original name and increase the daily price fluctuation limit from 5% to 10% [2][4]. Group 1: Company Actions and Financial Adjustments - The company was previously under risk warnings due to false financial reporting, including improper goodwill impairment testing and fictitious software copyright transaction revenues [5]. - To achieve the removal of risk warnings, Century Huatong has restated its financial reports for the relevant years and received an audit report from Da Xin Accounting Firm regarding prior accounting errors [5]. - As of November 10, the company has received 80 investor claims totaling approximately 73.16 million yuan, with all cases filed in the Shaoxing Intermediate People's Court [5]. Group 2: Stock Performance and Market Position - Despite being labeled "ST" last year, Century Huatong's stock price has increased significantly, with a year-to-date rise of over 200%, reaching 17.61 yuan per share and a total market capitalization of 130.8 billion yuan [6]. - The company's third-quarter revenue surpassed 10 billion yuan for the first time, reaching 10.02 billion yuan, a year-on-year increase of 60.2%, with a net profit of 1.7 billion yuan, up 163.8% [6]. - For the first three quarters of the year, Century Huatong's total revenue reached 27.22 billion yuan, exceeding the total revenue of the previous year [6]. Group 3: Game Performance and Industry Standing - The company's game "Whiteout Survival" has been a major success, leading the revenue charts for Chinese mobile games overseas for 15 consecutive months, with global revenue exceeding 3.5 billion USD (approximately 24.9 billion yuan) [7]. - Another game, "Kingshot," has also performed well, generating over 400 million USD (approximately 2.8 billion yuan) since its launch in February [7]. - According to SensorTower, Century Huatong's subsidiary, Diandian Interactive, ranks second in global revenue among Chinese mobile game publishers, only behind Tencent [7].

Core Viewpoint - Century Huatong, the largest gaming company by market capitalization in A-shares, has received approval from the Shenzhen Stock Exchange to revoke its other risk warnings, transitioning from "ST Huatong" back to "Century Huatong" [3][6]. Group 1: Company Developments - Century Huatong will be suspended for one day on November 11 and will resume trading on November 12, with the stock's daily price fluctuation limit increasing from 5% to 10% after the revocation of risk warnings [6]. - The company faced administrative penalties from the China Securities Regulatory Commission last year due to false financial reporting, which included improper goodwill impairment testing and fictitious software copyright transaction revenues [6]. - To achieve the revocation of risk warnings, Century Huatong has restated its financial reports for the relevant years and received an audit report from Da Xin Accounting Firm regarding prior accounting errors from 2018 to 2023 [6]. Group 2: Financial Performance - As of November 10, Century Huatong has received 80 investor claims totaling approximately 73.16 million yuan, with all cases filed in the Intermediate People's Court of Shaoxing City, Zhejiang Province [7]. - Despite being labeled "ST" last year, Century Huatong's stock price has increased significantly, with a year-to-date rise of over 200%. The stock price rose from 5.13 yuan per share at the time of the administrative penalty to 17.61 yuan per share at the time of the revocation announcement, resulting in a market capitalization increase from 38.23 billion yuan to 130.8 billion yuan [8]. - The company's third-quarter financial report shows a record revenue of 10.02 billion yuan, a year-on-year increase of 60.2%, and a net profit of 1.7 billion yuan, up 163.8% [8]. - For the first three quarters of the year, Century Huatong's total revenue reached 27.22 billion yuan, surpassing the total revenue of the previous year [8]. Group 3: Game Performance - Century Huatong's subsidiary, Diandian Interactive, has seen significant success with the game "Whiteout Survival," which has topped the revenue charts for Chinese mobile games overseas for 15 consecutive months, with global revenue exceeding 3.5 billion USD (approximately 24.9 billion yuan) as of September [9]. - Another successful title, "Kingshot," has generated over 400 million USD (approximately 2.8 billion yuan) since its launch in February, ranking second in the overseas revenue charts for September [9]. - According to SensorTower's report, Diandian Interactive ranks second in global revenue among Chinese mobile game publishers, surpassing NetEase and only behind Tencent [9].