Game listed companies 'annual report generally earns more than 50% of corporate net profit exceeding 100 million yuan

Against the background of increasingly fierce industrial competition, competitive products have emerged in end-games thanks to the strong repeatability of games, a large number of active users and long life cycles, maintaining relatively stable growth.

According to the "2016 China Game Industry Report", the actual sales revenue of the e-sports game market in 2016 was 50.46 billion yuan, accounting for 30.5% of the overall sales revenue of the game market. Against the background of increasingly fierce industrial competition, competitive products have emerged in end-games thanks to the strong repeatability of games, a large number of active users and long life cycles, maintaining relatively stable growth.

According to statistics from the reporter through Oriental Fortune Choice data, as of April 9, 52 of the 61 online game concept listed companies have released their 2016 annual reports, of which 47 were profitable and 5 were losing money. Last year, there were a total of 30 game companies, accounting for 57.69%.

Judging from specific company data, Perfect World's performance last year currently leads the game industry. On March 16, Perfect World released its 2016 annual report. Data showed that the company's operating income in 2016 was 6.1 billion yuan, a year-on-year increase of 25.87%, and achieved a net profit of 1.166 billion yuan, a year-on-year increase of 767.54%. Among them, part of the game business revenue was 4.703 billion yuan, a year-on-year increase of 24.97% over the previous year. As a star product under Perfect World, DOTA2 plays an important role in the end-game segment, and the popularity brought by the event has also played a significant role in helping users 'attention.

In addition, data shows that DOTA2's share of Perfect World earnings has also increased year by year. Specific to the product level, the end-game business relies on "Immortal Xian","Perfect World International Edition", and "DOTA2" to continue to maintain stable revenue and player activity. At the same time, Wan Mei obtained the exclusive operating agency rights in the mainland of China for the international e-sports game masterpiece "CS: GO (Counter-Strike: Global Offensive)" last year. In terms of mobile games, many products such as "The Legend of the Condor Heroes","The Story of the Dragon Slaughtering", and "The Immortal Dynasty Mobile Games" have been released. In terms of console games, the Xbox version of "NeverWinter OL" has benefited steadily, and the PS4 version has been launched again. In 2016, the first VR game "Subnautica" was also launched.

Among the listed game companies that currently publish annual reports, Sanqi Mutual Entertainment ranks second only to Perfect World. On the evening of March 14, Sanqi Mutual Entertainment released its 2016 annual report. During the reporting period, the company achieved operating income of 5.248 billion yuan, a year-on-year increase of 13%; net profit attributable to shareholders of listed companies was 1.070 billion yuan, a year-on-year increase of 111%.

Regarding the main reasons for the increase in performance, Sanqi Mutual Entertainment can be attributed to two aspects: in December 2015, the company completed the purchase of the remaining 40% shares of its subsidiary Shanghai Sanqi Mutual Entertainment, and this year's net profit of Shanghai Sanqi Mutual Entertainment is all attributable to listed company shareholders; mobile game business increased significantly year-on-year.

Obviously, mobile games occupy an increasingly important position in Sanqi Mutual Entertainment's main internal business. Take "Eternal Era" as an example. This product, independently developed by Aurora Network, a flagship R & D team of Sanqi Mutual Entertainment, and exclusively distributed by 37 Mobile Games, has recorded a monthly flow of 280 million yuan and a single-day flow of 55 million yuan since its launch in July 2016.

After the reorganization, Century Cruises 'performance has improved rapidly. According to the 2016 performance report released by the company, it achieved operating income of 2.324 billion yuan, a year-on-year increase of 17.6%, and achieved net profit of 1.069 billion yuan, a year-on-year increase of 338.15%.

In addition to the above-mentioned highly profitable companies, there are currently five game concept listed companies that have suffered losses. The five companies are Tianwo Technology, Dadongnan, Zhongqingbao, GQY Video and Jinya Technology.

The reason is that many game companies are still in the transition stage. Due to the rapid rise of my country's mobile game industry, it has occupied the market share that previously belonged to end-games and web-games. However, many companies have not yet completed the process of transforming from end-games and web-games operations to hand-games, resulting in losses.

Editor: Nancy