Zhejiang Century Huatong Group (002602) H2 2024 earnings summary

Executive summary

• Achieved revenue of ¥22.62 billion in 2024, up 70.27% year-over-year; net profit attributable to shareholders was ¥1.21 billion, up 131.51% year-over-year; adjusted net profit (excluding non-recurring items) was ¥1.64 billion, up 290.20% year-over-year.

• Operating cash flow increased 62.67% year-over-year to ¥5.05 billion; basic and diluted EPS were both ¥0.17, up 142.86% year-over-year.

• Internet gaming business led growth, with overseas and mobile games as key drivers; AI cloud data and auto parts segments maintained stable performance.

Financial highlights

• Software services (mainly gaming) contributed 92.69% of revenue, up 85.94% year-over-year; mobile games revenue grew 121.54% year-over-year.

• Gross margin for software services was 69.99%; overall gross margin for online sales was 70.07%.

• Top five customers accounted for 68.28% of annual sales; top five suppliers accounted for 55.26% of annual procurement.

• R&D investment was ¥1.68 billion, 7.43% of revenue.

Outlook and guidance

• Strategic focus on digital culture, digital infrastructure, and technology empowerment, with continued investment in AI, cloud, and global gaming IP.

• Plans to accelerate AI+IDC transformation, expand overseas gaming, and deepen AI integration in products and operations.

• Aims to maintain high growth in gaming, achieve financial balance in cloud data, and drive innovation in new business lines.