CENTURY HUATONG(SZ:002602)2022-12-03 10:04Group 1: Company Performance and Financials - The 2018 annual audit report was announced on May 13, 2019, indicating timely financial disclosures [2] - The first quarter of 2019 showed a decline in net profit compared to the same period in 2018, primarily due to non-recurring profits of 120 million in Q1 2018 [6] - The company aims to maintain a high level of profitability through business integration and acquisitions, enhancing sustainable profitability [7] Group 2: Mergers and Acquisitions - The acquisition of Shengyue Network is expected to enhance the company's main business profitability and improve goodwill against impairment risks [5] - The company is considering a name change following the successful restructuring of Shengqu Games [2] - The approval process for the acquisition is ongoing, with expectations of receiving formal approval soon [3] Group 3: Strategic Direction - The company focuses on mobile and H5 game development while also emphasizing the importance of project management and budget control for cash flow [4] - There is a strategic intent to deepen the game industry chain, with plans to invest in related sectors such as novels and animations based on game IP [4] - The company is not currently considering acquiring Zhongshouyou, as its stake is minimal and based on strategic cooperation [6] Group 4: Market and Regulatory Environment - The company has not faced any game approval rejections to date and is committed to implementing mechanisms for protecting minors and preventing addiction [5] - The recent easing of game approvals is seen as beneficial for all game companies, particularly industry leaders [5] - The automotive parts business has seen a decline in profits, but there are no current plans to divest this segment [7]