Giant network shell seems to have stopped returning to A shares will force hand games

Century Cruises, which has been suspended for nearly a year and has repeatedly tried to restructure without success. Due to major accidents, its net profit has dropped significantly, has become the focus of the capital market in the past two weeks. After Giant Network resumed trading on a backdoor basis, its stock price surged 213.81% for 13 consecutive trading days.

Century Cruises, which has been suspended for nearly a year and has tried to restructure many times without success. Due to major accidents, its net profit has dropped seriously. It has become the focus of the capital market in the past two weeks. Not only because of the backdoor of the star company Giant Network, but also because of the backdoor of Giant Network, since the company resumed trading on November 11 this year, its stock price has surged by 213.81%.

After the resumption of trading after the resumption of trading of Century Cruises, Shi Yuzhu, the future actual controller, experienced a surge in floating profits in the past 13 trading days.

Shi Yuzhu had a floating profit of 11.4 billion yuan

. In October this year, Century Cruises issued an announcement to suspend its asset reorganization, saying that it had reached a "Material Asset Restructuring Intention Framework Agreement" with Giant Network, and planned to purchase 100% equity of Giant Network from non-public offering of shares to all shareholders of Giant Network. Supporting fundraising funds. As a result, Giant Network's "secondary listing" road officially opened.

As early as November 2007, Giant Network was listed on the New York Stock Exchange. However, due to dissatisfaction with the valuation of game companies in the U.S. market, in November 2013, Giant Network announced that it had received a privatization offer from a consortium led by Chairman Shi Yuzhu. In July 2014, Giant Network completed its privatization and delisting at a price of US$2.868 billion.

If Century Cruises completes the above transaction, the company's main business will change from inland water-related luxury cruise ship operations and travel agencies to a comprehensive Internet company mainly focusing on online games, and Giant Network's controlling shareholder Lan Lin Investment will become Century Cruises Controlling shareholder, Shi Yuzhu will become the actual controller of Century Cruises.

On the evening of November 10 this year, Century Cruises issued an announcement on the "Plan for the Sale of Major Assets and the Issuance of Shares to Purchase Assets and the Raising of Supporting Funds and Related Transactions (Revised Draft)". The company plans to issue shares to all shareholders of Giant Network and acquire all of Giant Network. Equity, transaction consideration is tentatively set at 13.09 billion yuan. After the transaction is completed, Shi Yuzhu will become the actual controller of the company. In addition, the total amount of supporting funds to be raised by the company will not exceed 5 billion yuan. Giant Network will use a backdoor to achieve A-share listing.

According to the plan, Century Cruises plans to issue 443 million shares to the counterparty at 29.58 yuan/share. After the transaction is completed, regardless of the impact of the issuance of shares with supporting funds, Lanlin Investment and its concerted action person Tengpeng Investment will hold 210 million shares of the company, accounting for 41.44% of the company's total share capital. Among them, Lanlin Investment holds Century Cruises The number of shares is 156 million shares, with a ratio of 30.77%. Lanlin Investment will be the new controlling shareholder of Century Cruises, and Shi Yuzhu will become the actual controller of Century Cruises.

At the same time, Giant Network shareholders promised that the non-net profit deduction in 2016, 2017 and 2018 will be no less than 1 billion yuan, 1.2 billion yuan and 1.5 billion yuan. Among the matching funds raised, the company plans to issue no more than 169 million shares to no more than 10 qualified specific objects at 29.58 yuan/share. The fundraising will be used for the research and development, agency and operational distribution of online games, online entertainment and e-sports communities, etc.

According to the above announcement, Giant Investment Co., Ltd. holds 100% equity of Lanlin Investment and is the controlling shareholder of Lanlin Investment. The equity relationship shows that Shi Yuzhu holds 97.86% equity of Giant Investment Co., Ltd., which means that Shi Yuzhu indirectly holds about 153 million shares of Century Cruises.

If the transaction is completed, based on the above-mentioned equity relationship and the number of shares held, the floating profit of the actual controller Shi Yuzhu will be approximately 11.391 billion yuan after the 13 daily limit after the resumption of trading of Century Cruises.

Returning to A-shares will launch mobile games

as the first national war online game independently developed by Giant Network in 2005. The success of "Journey" once made Giant famous. It combines multiple gameplays such as MMORPG and competitive PK, and creates a free online game model and a series of new gameplay methods, which are praised by the industry as the "encyclopedia of online games" of China. In April 2008, the number of simultaneous online games reached 2.1 million, establishing Giant Network's position in the industry. Now after returning to A shares, the company has other plans.

It is understood that Giant Network will accelerate overseas investment and mergers and acquisitions. At that time, it was negotiating the acquisition with a top 5 overseas mobile game developer in the world. The acquisition is still in progress, but it is not convenient to disclose the name of the other party.

At present, although works such as "Journey Pocket Edition" and "The Big Master" have been launched, in the face of competition from game companies such as Tencent, Netease, Sohu Changyou, and Perfect World, Giant Network has no room for mistakes in its layout in the direction of mobile games. On November 1, it was reported that Shi Yuzhu had recently "stepped out" and helped the company make structural adjustments, and mobile games had been identified as the company's current strategic focus.

Specifically, the first step is to reorganize the previous "central department system" into a "studio system". Each studio is directly led by a core producer. The goal of flattening the organization is to create high-quality mobile games. The second step is to establish a highly agile innovation development team in the form of a small team to incubate innovative mobile game projects. The third step is to build a company-level mobile game collaborative development platform next year to lower the innovation threshold for young producers.

In terms of product reserves, Giant Network currently owns "The Legend of the New Ancient Dragons and Heroes","Journey Mobile Games","Wuji World","The Chronicles of the Three Kingdoms","Arcade Three Kingdoms","Street Basketball","Vanity", etc. A variety of fine products. Relying on the prospects of these businesses, Giant Internet Orient has made a net profit for the next three years (net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses) of no less than 1 billion yuan, 1.2 billion yuan and 1.5 billion yuan respectively. Promise. The company's net profit from January to September in 2012, 2013, 2014, and 2015 was 1.237 billion yuan, 1.312 billion yuan, 1.159 billion yuan and 218 million yuan respectively.

Another industry analyst told reporters that looking at the comprehensive market situation, the current valuation of Giant Network, which is listed as a game company, is basically reasonable. The PE value of mobile games is no longer as crazy as last year, and is more than ten times more common. At present, mobile games have entered the stage of striving for quality and operation, and the accumulation of large companies will give full play to their advantages. Giant Network's R & D capabilities and layout in the entertainment field will leave a lot of room for its future market value growth.

Editor: yvonne