On the evening of April 29, Century Huatong (002602) released its 2021 annual report, realizing operating revenue of 13.929 billion yuan and net profit of 2.327 billion yuan. During the operating period, the company carried out a larger scale of strategic upfront investment, including R&D investment of nearly 2 billion yuan. Although the performance was under pressure in phases, the businesses still maintained healthy development, among which, the Internet game business continued to maintain a scale of over 10 billion yuan, the automotive parts manufacturing business grew steadily, and the progress of the cloud data business began to bear fruit. The company's strategic remodeling towards digital technology properties is gradually manifested.

At the beginning of 2021, Wang Ji, the major shareholder of Century Huatong, and Linzhi Tencent, a strategic investor, respectively increased their shareholdings in the listed company and became the first and second largest shareholders of the company, and the management team of the company has undergone a significant change. Most of the new executive team have rich experience in digital R&D, operation and management, and they are expected to lead the company further on the road of strategic reshaping.

Mobile game new products self-research proportion of more than 50%

2021, Century Huatong's Internet game business annual revenue of 11.662 billion yuan, of which the mobile game revenue accounted for 72.08%. In the fourth quarter of last year, the company increased its investment in overseas R&D and marketing, and profits declined temporarily, but as the product gradually enters the recovery period, it is expected that the profits in the second quarter of this year will realize a rebound. R&D investment in the reporting period amounted to 1.966 billion yuan, an increase of 31.40% year-on-year, the three-year cumulative investment of more than 4.7 billion yuan.

In 2021, the company launched a number of new handheld games of different types and themes, such as "The Elder Scrolls: Blade" and "Komori Life", with a proportion of self-research of more than 50%. 2021 April, the company's self-researched open-world sandbox game with the concept of meta-universe, "ShineTopia" (LiveTopia), was launched on the Roblox gaming platform and has become a phenomenal product.

LiveTopia, the company's self-developed open-world sandbox game with a meta-universe concept, was launched on Roblox and became a phenomenal product.

"Tower of Eternity", "World of Legends" and other end-game products in stock continue to play a stable role. In terms of new product reserves, the company has accelerated the development of a number of well-known IP handheld game products, including "Qing Yu Nian" (which has been launched in March 2022) and other new products covering a number of categories are expected to be launched one after another.

In addition, the company's "Legend" IP was confirmed by the Supreme Court in December 2021, and after the judgment came into effect, the company is expected to hold and operate the "Legend" IP in the Chinese market in a more solid manner, which will have a positive impact on the development of the company's subsequent business.

Cloud data and other businesses in full speed

In 2021, Century Huatong automotive parts manufacturing business to achieve revenue of 2.319 billion yuan, a year-on-year increase of 15.82%, from the North American new energy benchmark car companies, Xiaopeng, azurite, Volkswagen, General Motors, Geely, BYD, and other companies in the new energy supporting project orders year on year Increase.

At the same time, the company continued to increase investment in the Internet data center industry chain, y involved in the Tencent Yangtze River Delta Artificial Intelligence Advanced Computing Center project, the first batch of its delivery area in the second half of 2021 successfully passed the Tencent's third-party test verification. In September of the same year, the company signed a purchase agreement for the "Yifeng Technology Guangming 5G Big Data Center Project" located in Guangming District, Shenzhen, China, which plans to operate a number of cabinets of about 12,000, and completed the delivery of the subject assets in February 2022, and has been put into construction.

Around the "East Counts West Counts" national strategy, the company has signed strategic cooperation agreements with Tencent Cloud, Weishitong, Huawei, ZTE and other industry leaders, accelerating the pace of business in a number of areas, including data security, government cloud development, a new generation of data centers, intelligent energy, and green low-carbon.

In addition, in the expansion of the virtual reality interactive business, the company participated in the first public welfare digital red cultural experience space "revival - Song" of the preliminary construction, and is responsible for the day-to-day operation of the venue, the company plans to expand to other provinces and cities across the country. Century Huatong believes that, at present, the company has formed a relatively complete set of "virtual reality *** life business puzzle" through the preliminary investment and layout, the future is expected to obtain greater growth space.

(Edited by Zhang Mingfu)