(Yicai) Nov. 11 -- Chinese gaming company Century Huatong Group will resume trading tomorrow after the removal of a stock risk warning, following a sharp rally fueled by the success of its 4X survival strategy game Whiteout Survival.

The Shenzhen Stock Exchange has approved the removal of the Special Treatment label, and Century Huatong will suspend trading for one day today and resume tomorrow without the tag, the Shanghai-based company said in a statement yesterday. The move means that the daily price movement limit will widen from 5 percent to 10 percent.

Century Huatong’s shares closed at CNY17.61 (USD2.50) yesterday, more than tripling in value year-to-date, driven by strong overseas performance from its hit game Whiteout Survival.

The ST label is a stock risk warning issued by China’s Shanghai and Shenzhen exchanges for firms with consecutive losses or major financial issues. Companies under ST face stricter disclosure requirements and a narrower daily price limit of 5 percent.

Founded in 2005, Century Huatong started as an auto parts manufacturer before shifting to gaming in 2014. It acquired Shanda Interactive Entertainment -- once China’s largest online game developer, now known as Shengqu Games -- in 2019. Shengqu is known for games such as Aion, MapleStory, and Ragnarok Online.

In May 2023, Century Huatong made a large goodwill impairment on its gaming assets, including Shengqu Games, in its 2022 annual report, prompting scrutiny from the Shenzhen Stock Exchange and the China Securities Regulatory Commission.

Investigations found that Century Huatong’s 2018–2022 annual reports contained false records on goodwill and fabricated revenue from software copyright transactions, constituting financial fraud. The CSRC imposed administrative penalties on the firm and its executives, and the stock was placed under ST on Nov. 8 last year.

Despite the penalty, the company’s shares have soared this year, driven by Whiteout Survival, a survival strategy mobile game that has dominated overseas markets. As of September, it ranked first in overseas revenue among Chinese mobile games for 15 consecutive months, with total global earnings of USD3.5 billion, according to Sensor Tower.

Powered by the success of Whiteout Survival, Century Huatong reported record performance in the first three quarters of this year. Net profit surged 142 percent year on year to CNY4.4 billion (USD617.9 million), while revenue jumped 75 percent to CNY27.2 billion (USD3.8 billion), the latest financial report showed.

Editors: Dou Shicong, Emmi Laine