Zhejiang Century Huatong Group (002602) H1 2025 earnings summary

Executive summary

• Achieved revenue of ¥17.21 billion in H1 2025, up 85.5% year-over-year, with net profit attributable to shareholders at ¥2.66 billion, up 129.33%.

• Core growth driven by robust performance in internet gaming, especially overseas, and continued expansion in AI cloud data and stable automotive parts business.

• Adjusted net profit (excluding non-recurring items) reached ¥2.59 billion, up 124.43% year-over-year.

• Operating cash flow increased 107.40% to ¥3.92 billion.

Financial highlights

• Internet gaming revenue reached ¥16.43 billion, up 93.06% year-over-year, with mobile games accounting for 88.69%.

• Automotive parts revenue was ¥760.87 million, up 1.41% year-over-year.

• AI cloud data revenue was ¥12.78 million, down 3.26% year-over-year.

• Gross margin for software services was 72.25%, and for mobile games 72.70%.

• Basic and diluted EPS were both ¥0.37, up 131.25% year-over-year.

• Net assets attributable to shareholders increased 11.05% to ¥27.55 billion.

Outlook and guidance

• Management expects continued strong growth in gaming, leveraging global expansion and AI integration.

• AI cloud data business to deepen partnerships with major cloud providers and expand value-added services.

• Automotive parts to focus on new energy vehicle supply chain and cost optimization.