Century Huatong s pre profit in 2023 will be up to 600 million yuan, and the revenue of mobile games

Mondo Finance Updated on 2024-02-01

A few days ago, Century Huatong released its 2023 performance forecast. According to the announcement, the company is expected to achieve a net profit of 400 million to 600 million yuan attributable to the parent company in 2023, turning losses into profits compared with 2022.

It is reported that the rebound momentum of Century Huatong's various operating businesses is stable, and the performance of the domestic game business has grown steadily in terms of core business. Among them, in the overseas game business, its "Diandian Interactive" self-research revenue has more than doubled.

According to the announcement of Century Huatong, in 2023, the company is expected to achieve a net profit of 400 million yuan to 600 million yuan, the company's consolidated operating income this year will increase by about 20% over the same period of the previous year, and the total income after deducting operating costs, taxes and surcharges, sales expenses, management expenses, R&D expenses and financial expenses will be about 1.5 billion yuan, an increase of about 600% over the same period of the previous year, and the performance is in a rapid growth trend.

Century Huatong said that during the reporting period, the company's domestic game business performance in terms of core business grew steadily.

In terms of domestic games, traditional advantageous products such as "Legend of Blood", "Legend of the World", "Dragon Nest", "Rainbow Island", "Final Fantasy 14" and "Aion" continue to maintain stable operation, and at the same time, with the help of AI tools and long-term operation methods, the old products have achieved cost reduction and quality improvement. Among them, "Adventure Island" performed well in a number of indicators, and its performance reached a new high. The "legendary" IP dispute that has plagued the company for many years has also been basically resolved, bringing new development opportunities for this national-level IP.

The overseas game business is the biggest highlight of Century Huatong's game sector in 2023. It is reported that after 4 years of polishing, Diandian Interaction, a subsidiary of Century Huatong, has achieved breakthroughs in a number of leisure categories and climbed to the top of the industry. According to the latest "2023 Annual Inventory of Chinese Mobile Games Going Overseas" released by Sensor Tower, Century Huatong's new strategic game "Whiteout Survival" has achieved revenue growth in overseas markets such as the United States and South Korea, and Diandian Interactive's overseas revenue in 2023 will reach nearly three times that of 2022, becoming the mobile game publisher with the highest revenue growth in overseas this year. It is worth noting that with the approval of the version number of products such as Diandian Interactive's "Fifeki Travels", its domestic business will also be launched in 2024, which is expected to bring promising increments to the parent company.

According to the data, Century Huatong has also found a breakthrough point in the field of e-sports ecology. In 2023, the number of online and offline viewers covered by the SFSA National Super League of Tianyou Software "Street Basketball" will exceed 1700 million person-times, more than 60 cross-border brand cooperation. At present, "Street Basketball" has established a set of mature e-sports competition systems with "professional league FSPL" as the core, including "National Super League SFSA" and "International Masters". In 2021, the product was also invited by the Shanghai E-sports Association to become the official competition of the "E-sports Shanghai National Championship" together with popular games such as "League of Legends" and "Honor of Kings".

In addition to the game sector, Century Huatong has also laid out the computing power sector, one of the "troikas of artificial intelligence". It is reported that up to now, 40,000 cabinets have been planned for the Century Huatong Shanghai data center project, and thousands of cabinets have been delivered and gradually put into operation. Shenzhen Data Center Project Planning 120,000 cabinets, the first phase of the project has been delivered in the first batch, and the second phase of the project is about to start construction. The main customers in the two places are Tencent Cloud and Huawei Cloud.

As another main business of Century Huatong, the cloud data business has begun to generate substantial revenue last year since its launch in 2020. With the wave of artificial intelligence and the advent of the era of computing power, Century Huatong will take the initiative to upgrade the computing infrastructure to an intelligent computing power cluster and transform to AI+IDC services in 2023 relying on the two major data centers. At the same time, it also integrates business resources related to artificial intelligence and cloud data business, and upgrades the "Cloud Data Division" to the "Artificial Intelligence Cloud Data Division". It is reported that the company's holding subsidiary, Shanghai Century Longteng Data Technology, has also obtained a computing power leasing order of 1.1 billion yuan from Tencent, opened up the GPU chain, combined IDC operation and maintenance services with AI computing power business, and aims to become a comprehensive computing power operation and maintenance platform.

It is worth mentioning that the Century Huatong disclosed the performance forecast at the same time, but also issued an announcement on the company's senior management and core personnel to increase their holdings of the company's shares, the announcement shows that some senior managers and core personnel, including the company's chairman and CEO Wang Ji, plan to increase their holdings of the company's shares within 6 months from the date of disclosure of this announcement with their own funds or self-raised funds through the Shenzhen ** Exchange trading system in centralized bidding, block trading or other transactions permitted by laws and regulations.

Written by: Nandu reporter Lin Wenqi.

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