Monster stock Jibit was questioned by the Shanghai Stock Exchange for unreasonable revenue structure, relying on fist game products

people in the industry believe that from the perspective of product management, gigabit does have its advantages and competitiveness in the Internet game industry, but there are also risks such as concentrated revenue and relying on a few blockbuster products.

original title: gigabit rose a lot when asked by the Shanghai Stock Exchange that revenue focused on fist game products

on March 15, gigabit shares adjusted slightly and finally closed at 354.26 yuan, down 3.08%. In spite of this, Gibbit's share price on March 14 once surpassed Guizhou Moutai's record of winning the A-share market as the "highest-priced stock" in the A-share market.

as a secondary IPO, Gibbit landed on the Shanghai Stock Exchange on January 4 this year, but within a short time it became one of the most profitable IPOs in the capital market this year. It went all the way from 54 yuan to a record high of 375.18 yuan on March 14. As a result of the large increase, the Shanghai Stock Exchange sent an inquiry letter to gigabit on March 14, asking for instructions on the sustainability of high profitability and to reveal the related risks.

people in the industry believe that from the perspective of product management, Gigabit does have its advantages and competitiveness in the Internet game industry, but there are also risks such as concentrated revenue and relying on a few blockbuster products.

strong > dare to challenge the secondary IPO of Guizhou Moutai / strong >

on March 14, a gigabit, which has only been listed for 3 months and 10 days, challenged Moutai in intraday trading. On the same day, its intraday performance was quite eye-catching, rising 4.64% at one point, with the highest share price of 375.18 yuan, surpassing the highest price of Guizhou Moutai and becoming the highest-priced stock in the two cities. However, by the end of the day, gigabit closed at 365.52 yuan, up 1.95%. Guizhou Moutai fell 0.55% to close at 369.5 yuan, regaining the position of the highest-priced stock.

the following day, gigabit failed to continue the rising momentum of the previous day, showing a small adjustment, and finally closed down 3.08% at 354.26 yuan. By contrast, Guizhou Moutai rose 1.40% to close at 374.68 yuan. The gap between the two shares opened 20.42 yuan on the same day.

the "war" with Guizhou Moutai has made more investors pay attention to gigabit. Who on earth is this company?

publicly shows that Gigabit, whose full name is Xiamen Gibbit Network Technology Co., Ltd., is a company specializing in online games. Since its establishment, it has successively developed more than a dozen games, such as "Wendao", "Wengdao Weizhuan" and "Douxian". Among them, "ask" is its best-known veteran product, according to its prospectus, the game since its commercial operation in 2006, the cumulative number of registered users exceeded 380 million, the cumulative recharge amount of more than 7 billion yuan.

however, due to the large increase and the concentration of media reports, Gibbit disclosed on March 15 that the company received an inquiry letter from the Shanghai Stock Exchange on March 14.

the net profit attributed to the parent company was 175 million yuan in 2015. January 2017 predicted that the company's 2016 net profit attributable to the parent company increased by 195% to 23.5% compared with the same period last year. In this regard, the SSE requires it to combine the characteristics of the major industries faced by the company, as well as the company's products and business models, to explain the sustainability of high profitability and fully reveal the relevant risks.

at the same time, the SSE requires gigabit to indicate whether there are matters that should be disclosed that have a significant impact on the stock price, and whether the disclosed announcements require supplementary announcements. And combined with the company's main products and their life cycle, charging model, operation model, industry and industry status, fully reveal the company's business stability may face related industries and business risks.

on the morning of March 15, the reporter came to Gibbit's office at 4 Wanghai Road, Phase II of Xiamen Software Park, and the office building next door was Meitu, who was listed not long ago. However, gigabit staff told reporters that it was not possible to arrange an interview because it was in the window before the release of the company's 2016 annual report.

strong > most of the revenue depends on a small number of games / strong >

according to previous prospectuses, during the reporting period, gigabit's income mainly came from "ask", "ask Mobile Games" and "Douxian" online games. From 2013 to January to June 2016, the revenue of the three games accounted for 95.25%, 93.15%, 88.63% and 96.48% of the current operating income, respectively. among them, the income of "ask questions" accounted for 87.86%, 67.55%, 72.8% and 21.77% of the business income of the same period, respectively, and 71.39% of the current business income from January to June 2016. These games will continue to contribute most of the revenue to the company in the short term.

however, QQ, which has been in operation for 10 years, has seen an aging phenomenon, and paying users are also showing a downward trend. Gibbit also said in his prospectus that with the rapid development of the game market, the game population dividend has gradually disappeared, the payment conversion rate of traditional games has shown a downward trend, and the number of paying users has also shown a downward trend. As a 2D round-based game that has been in operation for 10 years, due to the limitations of 2D technology and the increase of alternative games, it is hard to avoid the loss of certain paying players. The data show that the "ask" PCU (the maximum number of simultaneous online users) was once close to one million, while the current PCU remains at around 300000-600000.

in 2016, Gibbit transferred the representative work "ask" to the mobile game, which was regarded as a success by the organization. QQ Mobile Games was officially launched in April 2016. by the end of September 2016, the total number of registered users had exceeded 12 million, with a cumulative recharge of more than 1.2 billion yuan.

however, for gigabit, it still faces the risk of revenue dependence on a small number of products. Gigabit also said publicly that if the number of players in these games drops, the company fails to improve, upgrade or improve these games in time, the server is interrupted for a long time due to network failure or other reasons, or any poor performance of the game, it will have a significant adverse impact on the company's operating performance.

Zhang Yi, chairman of Ai Media Consulting, told reporters on March 15 that in the past year or two, the capital market is generally optimistic about game consumption and other related industries. Gibbit is a relatively good game company, due to the small total share capital of the company. based on the average valuation of the industry, the current stock price is relatively high, but combined with the development of the industry, the company is optimistic about its operating prospects. But the company needs to gradually crack problems such as revenue concentration and a small number of games.

Edit: nancy