CENTURY HUATONG(002602)2024-11-13 13:16Group 1: Company Overview and Recent Developments - The company faced significant losses due to goodwill impairment in 2022 and was investigated in 2023, receiving a pre-penalty notice in April 2024, leading to formal penalties [1] - Following the penalties, the company's stock was placed under risk warning, reducing trading limits to 5%, impacting short-term stock price but not operational performance [1] Group 2: Financial Performance - In the first three quarters of 2024, the company achieved revenue of 15.529 billion yuan, a year-on-year increase of 58.66% [2] - Net profit reached 2.617 billion yuan, with a year-on-year growth of 26.17%, while the non-recurring net profit was 1.782 billion yuan, up 47.98% [2] - Operating cash flow amounted to 3.462 billion yuan, reflecting a year-on-year increase of 38.72% [2] Group 3: Future Plans and Strategies - The company plans to apply for the removal of risk warnings after completing rectifications as per the administrative penalty decision within 12 months [2] - The company is focusing on integrating its "Legend" IP through authorization, distribution, and development, aiming for significant growth in the next three years [3] - There are currently no plans for dividends or share buybacks due to substantial losses on the parent company's balance sheet, but the company is exploring options to reward investors [3] Group 4: Product Development and Market Position - The company has three domestic products with licenses and is prioritizing marketing for its star products "Endless Winter" and "Whiteout Survival," which are showing strong performance [3] - According to Appmagic data, the company ranks fourth among global mobile game publishers and its product "Endless Winter" ranks third in estimated revenue, following "Honor of Kings" and "Royal Match" [2]