CENTURY HUATONG(002602)2024-05-14 10:52Game Development and IP - The company has a strong portfolio of game IPs, including "Dragon Nest International Edition" and "Hunger Wilderness," with the latter having over 10 million pre-registrations globally [2] - The "Hunger Wilderness" game has achieved high rankings in Japan and South Korea, and received a 9.0 score on TapTap in its domestic beta test [2] - The company is accelerating the development and market launch of multiple games, including "Project Code: 7" and "Project Code: R&R" [2] - The company's long-term operation capabilities are demonstrated by the strong performance of games like "MapleStory" and "Aion" in 2023 [3] Financial and Legal Issues - The company is under investigation by the China Securities Regulatory Commission (CSRC) for financial misrepresentation and has not yet received a final penalty decision [4][5] - The company has accumulated a goodwill impairment of 1.6 billion yuan over the past two years (2022-2023) [5] - The company is addressing financial management and internal control issues following the investigation, aiming to improve compliance and governance [7][8] - The company has not yet received a notice of being labeled as "ST" (Special Treatment) but is closely monitoring the situation [4][5] Investor Relations and Stock Performance - Investors have expressed dissatisfaction with the company's stock performance, which has been declining for several years [4][5][7] - The company attributes stock price fluctuations to multiple factors and emphasizes the importance of strong operational performance to drive long-term value [7][8] - The company is currently executing a share buyback plan, with progress to be disclosed in future announcements [5][7] - The company has not paid dividends in recent years, citing market conditions and operational needs as reasons [7][8] Data Center and AI Business - The company's data center projects, including the Tencent Yangtze River Delta AI Supercomputing Center, are still in the construction phase and have not yet generated significant revenue [10][11] - The progress of data center projects is influenced by customer demand for server racks, and the company is actively monitoring potential asset impairments [11] - The company has a small-scale deployment of AI GPUs, but this has not yet significantly impacted revenue or profit [9][10] Corporate Governance and ESG - The company is committed to improving its ESG (Environmental, Social, and Governance) performance and has published related reports [6] - The company acknowledges the importance of corporate social responsibility and is working to align its development strategy with ESG principles [6] - The company has faced criticism for its low ESG rating (C-) and is taking steps to enhance its governance and sustainability practices [6] Brain Science and Other Ventures - The company has made minimal investments in brain science research, which are not expected to contribute significantly to profits in the short term [6][12] - The company's automotive parts business contributes stable but limited profits, with orders from well-known automakers [12]