Zhejiang Century Huatong Group Co Ltd

Century Huatong announced that its largest shareholder Wang Ji and his concert party Ji Yunsheng have decided to terminate their share reduction plan early. It was previously disclosed that Wang Ji and Ji Yunsheng planned to reduce their combined holdings by no more than 220 million shares between May 30 and August 29. As of the announcement date, Ji Yunsheng had sold 52.5961 million shares, or 0.71% of total share capital, through centralized bidding from June 16 to June 29, at an average price of 13.56 yuan per share. The remaining shares that were not sold will no longer be reduced within the original reduction plan period.

Deng Qi, Executive Director of Shengqu Capital under Century Huatong, said at the 2026 China Digital Industry Ecosystem Conference that the current wave of AI technology has moved from early experimentation into a phase of deep integration across all segments of the game industry, covering the entire chain from development and publishing to refined user operations, and is beginning to penetrate gameplay itself. She revealed that the company now largely uses AI to generate promotional demos and 15-second interactive gameplay videos from end to end. Previously, developing a testable product demo took about six months; that cycle has now been shortened to around three months. In publishing, AI can mass-produce diverse user acquisition assets and speed up localization and translation, supporting overseas expansion. On the user operations side, AI data analysis capabilities can digitize and tabulate user feedback, helping to accurately gauge user preferences. Deng Qi summed up AI's impact on the game industry as moving from cost reduction to efficiency gains, ultimately aimed at creating more value for users. She expressed hope for future breakthroughs on the creative front, leading to the development of original gameplay not yet seen in the market. Addressing the discussion around an AI bubble, she said bubbles can attract capital and talent, but acknowledged that there is currently some overvaluation. Investors should discern substantive assets with long-term value within the bubble and calmly consider the pace of hardware and software deployment.

The latest weekly large model call rankings from global multi-model aggregation platform OpenRouter show that the top five products are all developed by Chinese companies. Xiaomi's MiMo-V2.5 topped the list with 10.5 trillion tokens called in a single week, up 12 percent week-on-week. Two DeepSeek models ranked second and fifth, forming a high-low mix. Tencent's Hunyuan 3, online for just one month, saw a weekly surge of over 999 percent, making it the fastest-growing model. At the industry level, Guolian Minsheng Securities believes that accelerating AI application development is key to generating positive industrial capital returns from current AI capital expenditure. The leap in open-source model capabilities is greatly boosting application development. ByteDance's Doubao, Tencent's WorkBuddy, and Alibaba's Qwen are rapidly accumulating traffic, and the commercialisation of AI applications is about to begin. In the secondary market, the AI application index has fallen more than 30 percent from its high on 13 January, but rebounded violently by nearly 10 percent in the past week, with a single-day gain of over 5 percent on 31 July. The trio of Yidian Tianxia, Chinese Online, and Tianlong Group, dubbed the Yi Zhong Tian combination, has drawn attention. On the funding side, 28 AI application concept stocks saw net inflows of over 100 million yuan from major funds. BlueFocus topped the list with 2.419 billion yuan and hit the daily limit up, while Kunlun Tech saw net inflows exceeding 1 billion yuan and also hit the daily limit up. As of 2 August, among brokerages' August golden stock picks, Kunlun Tech received two recommendations, while Fengzhushou, Century Huatong, and Zhipu each received one. Century Huatong expects first-half net profit of 4.3 billion to 4.77 billion yuan, a year-on-year increase of 61.87 percent to 79.57 percent.

Shengqu Games, a subsidiary of Century Huatong, has entered into a partnership with South Korean online gaming giant NC to jointly bring the large-scale next-generation fantasy MMORPG Aion 2 to mainland China. The two companies officially announced the news at a new product launch event in Shanghai on July 30. In 2009, the original Aion was introduced to the Chinese market by Shengqu Games and became one of the landmark titles in the domestic MMORPG sector. Going forward, the two sides will leverage their respective strengths to jointly drive the development of Aion 2 in the Chinese market.

On July 15, the gaming sector strengthened during the session, with several companies forecasting significant first-half profit growth. Century Huatong announced it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 4.30 billion and 4.77 billion yuan, a year-on-year increase of 61.87% to 79.57%. Yoozoo Games expects net profit for the same period of 200 million to 300 million yuan, up 298.76% to 498.14%. G-bits expects net profit of 1.01 billion to 1.10 billion yuan, up 57% to 71%. A research note from GF Securities pointed out that in the first five months of 2026, China's actual game market sales revenue reached 158.416 billion yuan, up 12.3% year-on-year, while overseas revenue from self-developed games hit 10.402 billion US dollars, up 31.1%, with industry prosperity continuing. A China Merchants Securities research note believes the core driver of global mobile game growth has shifted to rising purchasing power, AI technology is becoming a key tool in game development, going overseas is a clear trend, and the overseas market is about 2.7 times the size of China's domestic market.

Century Huatong issued an earnings forecast, expecting net profit attributable to shareholders of the listed company in the first half of 2026 to be between 4.30 billion yuan and 4.77 billion yuan, representing a year-on-year increase of 61.87% to 79.57%. The company said the profit growth was mainly driven by strong performance of its subsidiaries, with the core gaming business segment standing out. Diandian Interactive and Century Games continued to see revenue growth, and multiple games performed well.

Century Huatong and the Macao Commerce and Investment Promotion Institute co-hosted the second Digiloong Cup Global AI Innovation Competition’s Macao Investment Summit and AI Ecosystem Forum, drawing more than 100 officials, investors, and tech founders. IPIM President Alex Che Weng Keong said Macao is accelerating its AI shift, backed by a 20 billion-pataca guidance fund and a new technology park. Century Huatong Chairman Wang Ji announced a strategic cooperation memorandum with IPIM to build the AI value chain and take digital-entertainment content overseas, making Macao a pillar of the company’s global strategy. The summit featured keynotes on video-native world models and AI-era investment paradigms, two roundtables on AI deployment and embodied intelligence, and pitches from six standout startups from the competition, which drew over 200 registrations and nearly 100 project submissions.

Several A-share listed companies whose main business is not computing power, including Huace Film & TV, Century Huatong, and Anoky, are entering the computing power sector through different paths, and how to achieve synergy with their main business has become a focus of attention. Huace Film & TV established a wholly-owned subsidiary, Hangzhou Core Computing Metaverse Technology Co., Ltd., to carry out intelligent computing services. As of May 2026, it has formed a computing power scale of 37,000 petaflops, and its computing power business achieved revenue of 126 million yuan in 2025, a year-on-year increase of 602.65 percent, with a gross margin of 36.02 percent. Century Huatong is leveraging its existing data centers to transform into a full industry chain of computing power leasing, computing power operation and maintenance, and cabinet rental, and has invested in building multiple large-scale data centers in the Yangtze River Delta and Pearl River Delta. Anoky entered the computing power market by acquiring Shanghai Gengcong Information Technology Co., Ltd., building a business ecosystem including GPU elastic computing power services, hardware supply, and scheduling platform deployment. All three companies are exploring the integration of computing power with their main businesses. For example, Huace Film & TV uses AI for film and television rendering, Century Huatong provides computing power for game development, and Anoky is building an AI plus physical intelligent manufacturing platform, but the synergy effects still need quantitative data support.