Game stocks start the mid-year reporting season, Kaiying's network revenue increased by 10.37% year-on-year, ranking first

The reporter compiled the semi-annual reports of 15 game companies in the two cities and found that more than 80% of game companies had good performance in the first half of 2016, and there were many companies with high performance growth. Many game companies with abundant cash flow have already launched a pan-entertainment layout. Behind the gorgeous concepts such as IP, VR, and live broadcast, how should we view the value of game stocks?

Original title: The mid-year reporting season for game stocks begins, and Kaiying Network takes the lead.

Reporters compiled the semi-annual reports of 15 game companies in the two cities and found that in the first half of 2016, more than 80% of game companies had good performance, and there were many companies with high growth performance. Many game companies with abundant cash flow have already launched a pan-entertainment layout. Behind the gorgeous concepts such as IP, VR, and live broadcast, how should we view the value of game stocks?

Tonight, Kaiying Network released the first semi-annual report of a listed game company in the two cities as scheduled.

The semi-annual report released by Kaiying Network on the evening of the 18th showed that the company achieved operating income of 1.29 billion yuan in the first half of 2016, a year-on-year increase of 10.37%; and achieved net profit after deducting non-profit of 220 million yuan, a year-on-year decrease of 41.77%.

In fact, due to the launch and operation of Kaiying's blockbuster mobile game "National Miracle" in many countries and regions around the world from April to June, as well as the relay of multiple page games, Kaiying's performance was revised once in June. We have seen the company's efforts to extend the life cycle of blockbuster games. This situation is actually a bit like the "big and small" fluctuations of film and television companies. We have also seen that in order to stabilize the fluctuations in the flow of such popular products, listed companies are seeking to enrich their products and diversify their businesses.

The reporter took stock of the performance of 15 listed game companies that have issued pre-disclosure announcements for semi-annual reports. It can be seen that more than 80% of the game companies have achieved pre-performance increases, and only 20% of the game companies (Kaiying Network, Tianzhou Culture, and Zhongqingbao) The performance has declined. Among them, Century Cruises, which is about to be renamed Giant Network, appropriately released a performance update announcement on July 15, making it expected to win the top performance leader of game stocks in the first half of the year.

Kaiying Network becomes the first game company in the two cities to release semi-annual reports.

This evening, Kaiying Network became the first game company in the two cities to release semi-annual reports. Judging from the appointment disclosure time, it is also the only game company to release semi-annual reports before ChinaJoy., although its performance has declined.

This clue actually had a warning. On June 20 this year, the company issued an announcement to revise the original forecast from 173.214 million yuan to 230.9519 million yuan to 20,700 - 25,500 yuan. The reason was that "National Miracle" was launched in many countries and regions around the world from April to June 2016. The overall recharge flow remained stable, exceeding the company's expectations. At the same time, the web game product "Legend of the World", The monthly recharge flow of "Legend of the Blue Moon" has increased significantly compared with the previous period, resulting in a higher net profit attributable to shareholders of listed companies from April to June 2016 than previously expected.

This just confirms that "Miracle of the People" has passed its peak period. Semi-annual report data shows that since its launch to the end of the reporting period, various operating data of the large-scale high-quality mobile game "National Miracle" jointly developed by Kaiying and Tianma Time and Space have remained excellent. The cumulative number of registered users has exceeded 130 million, and the cumulative revenue has exceeded 5 billion RMB.

With the successful development and operation of "National Miracle", Kaiying Network already has experience in operating large IP games. The company's next goal is legendary IP. According to previous announcements, Kaiying has signed a licensing contract with South Korea's Wmade Company to adapt web games and mobile games based on "Legendary IP", and will strive to create a variety of legendary classic web games and mobile games; the company has also obtained the authorization of well-known Japanese IP "Hot Blood Series" and the popular Japanese IP "Legend of Demon Heroes" will carry out mobile game adaptations and related distribution and operations.

As early as in the 2015 annual report, Kaiying Network put forward three strategies of "platform + content +VR\AR". Among them, the distinctive feature is to accelerate the enrichment of pan-entertainment content, make efforts in cultural entertainment fields such as variety film and television, and realize the mutual promotion of diversified content and VR industry; and in VR strategy, the company will be built into an all-round Internet comprehensive service provider through the layout of the whole industry chain in VR software and hardware, virtual reality content, virtual reality scenes, etc. These have all advanced to varying degrees in the first half of 2016.

Century cruise ship repair performance, giant is expected to return to the No.1 position

compared with the first half of last year's game stocks, the first half of this year's game stocks further expansion, the biggest change is the giant's return.

At the beginning of April this year, Giant Network quickly completed the equity transfer after being approved by backdoor, which shows that it is "eager to return."

As early as April this year, Century Cruises issued an announcement that the net profit attributable to shareholders of listed companies for the first half of 2016 will be 358 million yuan-375 million yuan, a change of 30,498.29%-31,951.28% compared with the same period last year. The reason for the huge change in performance is that the company's major restructuring plan has been implemented in April 2016. The cruise ship business was transferred from listed companies, and Shanghai Giant Network Technology Co., Ltd. became a wholly-owned subsidiary of the company. Since this performance mainly came from the second quarter, it actually proved the giant's ability to make money.

Century Cruises 'latest performance update announcement released on July 15 shows that it is expected that the net profit attributable to shareholders of listed companies for the first half of 2016 is 417 million yuan to 542 million yuan, a year-on-year increase of 35,541.03%- 46, 224.79%. Judging from the reasons for improving the performance, I am quite happy:

(1) the company reintegrated marketing resources and improved the publicity effect, making the business promotion fee investment lower than expected;

(2) the company received a refund from Caohejing Street in advance.

The reporter's inventory of the performance of listed game companies shows that in the pre-disclosure process, the one closest to this is Sanqi Mutual Entertainment. Sanqi Mutual Entertainment expects its net profit attributable to shareholders of listed companies in the first half of the year to be 420 million yuan to 527 million yuan, which can be said to be comparable. However, considering the consolidation of financial reports, in terms of size, the giant has already taken the lead.

Can IP and VR support the "poetry and distance" of game stocks?

Whether Kaiying Network, which was the first to release its semi-annual report, or Giant Network, which returned, with the support of better game flow, are making diversified deployments in the film and television and VR/AR fields. This is also a diversified choice for most game companies.

As an early game company in the VR field, Kaiying Network has successfully invested in Lexiang Technology, Lebin Culture, Lytro Inc. and Sphericam Inc. in more than half a year since its VR strategy was clarified at the beginning of the year. Coupled with the construction of the company's VR content operation team, the construction of the VR ecosystem from "VR input equipment-VR content production/content platform-VR output equipment" has been initially completed.

Similar to this, we have to deploy large-scale operations in the VR field, as well as Sanqi Mutual Entertainment, Youjia Network, Youjiu Games, etc. Sanqi Mutual Entertainment recently announced that it will invest RMB 10 million in VR game startup Tianshe (Shanghai) Culture Media Co., Ltd.(hereinafter referred to as Tianshe Culture) and obtain a 15% equity after its capital increase is completed.

Coupled with Archiact, the overseas mobile VR game project announced its investment in March this year, after completing the investment in Archiact and Tianshe, Sanqi Mutual Entertainment will have two leading VR game teams in both overseas and domestic markets, heavy core and light core types., the landscape on the VR game side is beginning to emerge.

Another thing that game companies are competing for layout is film, television and animation. During this year's Shanghai Film Festival, Giant Pictures, a wholly-owned subsidiary of Giant Network, took advantage of the opportunity to announce its establishment. At Alibaba Pictures 'release conference, we saw Giant Pictures.

"Warcraft", which has just been rolled off the production line, has rekindled game companies 'enthusiasm for turning well-known IPs into films and films. Now there are already a large number of game IPs on the way to adapt big movies, including the unscheduled "Three-Body"(a company not listed on Youzu Online), Giant's "Journey", Yinhan, which has long been acquired by Huayi, is now about to shoot "Time and Space Hunter", etc. In the history of adapting game IP into movies, what kind of dark horse will emerge and how much valuation will it hold? It will also be particularly exciting. Let's leave it to reporters to decrypt it at the 2016 Pan-Entertainment Industry (Games) Summit Forum during Chinajoy this year.

Editor: yvette