Shanda Games doubled its net profit in 2016 and is splitting its VIE structure to prepare for A-share listing

On April 11, Shanda Games CEO Xie Fei revealed at a media communication meeting held in Shanghai that Shanda Games was already preparing for an A-share listing, including splitting the VIE structure.

The original title Shanda Games is rushing for A-share listing: It is splitting the VIE structure and its net profit doubled last year

."In fact, after Shanda Games is privatized, it is destined to gradually re-enter China's listing system." On April 11, Shanda Games CEO Xie Fei revealed at a media communication meeting held in Shanghai that Shanda Games was already preparing for an A-share listing, including splitting the VIE structure.

Regarding whether to go public on a backdoor basis or independently, Xie Fei said that discussions are still under way. Tan Yanfeng, vice president of Shanda Games, told reporters: "We will make all preparations."

According to Xie Fei, 2016 was the year with the highest revenue and net profit for Shanda's games business.

According to information provided by Shanda Games 'public relations department, Shanda Games' unaudited revenue last year was 3.86 billion yuan, with a net revenue growth rate of 17.6%; net profit was 1.62 billion yuan, a significant increase of 113% from last year.

"Judging from the current net profit scale of the (game company), Tencent (games) should rank first, Netease Games second, and Shanda Games third." Tan Yanfeng introduced.

Although this is Shanda Games 'best performance data, it is still far from the top two in China's game market, Tencent and Netease. According to the recently disclosed financial reports of the two companies, Netease Games' revenue last year was 27.98 billion yuan, while Tencent's online game revenue last year reached 70.844 billion yuan.

Shanda Group began to represent the "Legend" online game in 2001 and became very popular. In 2009, Shanda Games was listed on NASDAQ. At that time, Shanda Games was always regarded as the "cash cow" of Shanda Group, and Chen Tianqiao, founder of Shanda Group, once became the richest man in mainland China.

In 2014, Chen Tianqiao's Shanda Group cleared all shares in Shanda Games and transformed it into an investment group. Shanda Games delisted from the United States in 2015. Its privatization process was full of twists and turns. Shanda Games's performance declined during those two years, and management continued to change.

In January this year, Century Huatong announced that its controlling shareholder Zhejiang Huatong Holding Group planned to acquire 47.92% of Shanda Games. After the acquisition was completed, Century Huatong's controlling shareholder Zhejiang Huatong Holding Group Co., Ltd. and its second largest shareholder Shao Heng, the third largest shareholder Wang Ji holds a total of 90.92% of Shanda Games. In March, Zhang Xiangdong, former CEO of Shanda Games, was appointed chief operating officer of Century Huatong.

Tan Yanfeng, vice president of Shanda Games, said that Shanda Games will continue to develop high-quality games in the future. The second-dimensional mobile game "God Without Moon" will be tested online in April. In addition, Shanda will also expand pan-entertainment based on game products.

Shanda Games launched the "Dragon Valley" mobile game jointly developed with Joy Entertainment in February, which once ranked first on the Apple App Store rankings. However, this game was released by Tencent Game Agents. In this regard, Tan Yanfeng said that Shanda will also focus on game publishing business in the future.

"In the past, Shanda Games was indeed giving blood to Shanda Group. Now Shanda Games is a relatively independent company." Tan Yanfeng, vice president of Shanda Games, said that after the revenue does not need to be "transfused" to Shanda Group, Shanda Games will conduct investment and mergers to make up for the company's shortcomings through investment.

Editor: Nancy