The net profit of joy and mutual entertainment has increased by 1567 times. Palm fun Entertainment, which gives up the acquisition, can only cry secretly.

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The announcement shows that during the suspension period, palm fun technology and relevant intermediaries conducted several rounds of due diligence on our company with the active cooperation of the company. and conducted in-depth discussions and consultations on the valuation of the target of the transaction, acquisition price, acquisition method, future performance commitment and so on. Moreover, from the perspective of Happy Mutual Entertainment, the company's profits were so low that it might be difficult for Happy Mutual to fulfill its performance promises later, even if the valuation given by Palm fun Technology was appropriate.

On August 11, Joy Entertainment released its 2017 semi-annual report. The report shows that Joy Entertainment's net profit doubled in the first half of the year, and its net profit increased by 1567 times. However, in the past 2016, Joy Entertainment's financial statements were still in a loss state.

Original title: The "girlfriend" abandoned by Palm Technology now has a net profit of 1567 times

. There was once a sincere "love" placed in front of me. I didn't cherish it well, and I didn't regret it until I lost it.

It may be appropriate to borrow Xing Ye's classic lines to describe Palm Tech's mood at this time.

In May of this year, the listed company Palm Technology had just terminated its tender offer for Happy Entertainment.

The announcement of the resumption of trading of Joy Entertainment showed that in view of the fact that the two parties could not finally reach an agreement on core terms such as valuation, purchase price, performance commitments, and incentive terms, the management carefully decided to terminate the acquisition negotiations.

It is worth noting that on July 12, Joy Mutual Entertainment issued an announcement stating that the company plans to submit an application for termination of listing to the National Small and Medium-sized Enterprise Share Transfer System.

The "First"

report showed that the company achieved operating income in the first half of the year was 159 million yuan, a year-on-year increase of 348%. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 110 million yuan, a surge of 1567 times compared with the same period last year, turning losses year-on-year.

Seeing such an open report card, it is hard to imagine that this is a company that has been losing money for two consecutive years.

According to the Joy Entertainment Annual Report, the company's revenue from 2014 to 2016 was 98.3015 million yuan, 83.8588 million yuan, and 55.0699 million yuan respectively; net profit was 10.3215 million yuan,-42.2935 million yuan, and-53.9824 million yuan respectively.

Before achieving profit, Joy Entertainment had accumulated losses of nearly 100 million yuan in two years.

The semi-annual report shows that Joy Entertainment's performance in the first half of the year increased significantly, mainly because its "Dragon Valley" mobile game launched in 2017 achieved a revenue of 2 billion yuan, bringing huge benefits to the company.

As of June 30, 2017,"Dragon Valley" has more than 21 million registered users, ranking second only to "Glory of the King" in global downloads.

Public information shows that Joy Entertainment is a typical mobile game company. Since its establishment in 2009, it has been focusing on creating high-quality games. It owns page games such as "Three Kingdoms of Arcade","King of Arcade","Food vs. Rats", as well as mobile game products such as "Fighting Academy" and "Dragon Valley".

It is worth mentioning that the company is also an indirect shareholding company of Giant Network through its wholly-owned subsidiary Beihai Juzhi Investment Co., Ltd., with a shareholding ratio of 10%.

If we want to explain clearly the entanglement between Palm Technology and Joy and Mutual Entertainment, the time will have to go back to half a year ago.

On January 18, 2017, Joy Entertainment announced the suspension of trading on major matters, but the company did not explain the specific content of the reorganization at that time.

It was not until the resumption announcement five months later that Joy Mutual Entertainment made the reorganization and results public.

The announcement shows that during the suspension period, Palm Technology and related intermediaries, with the active cooperation of the company, conducted multiple rounds of due diligence on our company, and conducted in-depth discussions and consultations on the valuation, acquisition price, acquisition method, and future performance commitments of the transaction subject.

Even so, in the end, the two companies failed to get together.

Explanation from the announcement: In view of the fact that the two parties could not finally reach an agreement on core terms such as valuation, purchase price, performance commitment, and incentive terms, the company's management carefully decided to terminate the negotiation matters for this acquisition.

"Second"

In fact, Palm Technology is also a topic that "brings its own traffic".

According to public information, Palm Technology is mainly engaged in game development, agency distribution and operation. It is a comprehensive Mobile device and Internet page game developer, publisher and operator. Linzhi Tencent, a subsidiary of Tencent, became a new shareholder of Palm Technology this year.

At present, the company has independently developed and distributed more than 200 game products. Representative products include mobile games "Fighting Three Kingdoms","SpongeBob Games","Stone Age 2","Legend of the Dragon King", etc.

It is said that Tieda's Palm Technology and Liushui's shareholders and executives. In addition to the company's games, what makes Palm Technology frequently popular is the news that executives frequently cash out.

According to the announcement, Huayi Brothers, the company's shareholder, sold the company's shares for the 21st time on July 25, 2017, cashing in a total of 2.474 billion yuan; the actual controller Yao Wenbo reduced his holdings eight times in two years, cashing in 2.346 billion yuan.

As for the failure of this marriage, the specific reasons are unknown, but rumors are rampant.

Among them, the most mainstream view is that the biggest reason for the failure of this acquisition is that Joy Mutual Entertainment has continued to lose money in recent years, making it difficult to value the company.

The valuation is too high for Palm Technology to accept; the valuation is too low for Joy Entertainment to agree.

Moreover, judging from the perspective of Joy Mutual Entertainment, the company's profits were too low at that time. Even if the valuation given by Palm Technology is appropriate, Joy Mutual Entertainment may have difficulty in fulfilling its performance commitments later.

But the real reason may be that Palm Technology is "riding a donkey to find a horse". Historical announcements show that during the same period of time, Palm Technology also announced the acquisition of Nanjing Distribution Culture Development Co., Ltd. and Beijing Haoteng Jiake Technology Co., Ltd. during the same period of time.

In fact, on the road to mergers and acquisitions, Palm Technology is enjoying it. According to public information, the company has successively acquired industry leaders such as Dongwang Pioneer, Wancrab Technology, Upstream Network, and Tianma Time and Space, and has strategically invested in Unity Software Inc and Huanrui Century.

The semi-annual report of Joy Mutual Entertainment was released, and the skyrocketing performance has also made the market have more expectations for the follow-up of this once-ended merger.

Regardless of the truth and the follow-up, I believe that seeing Joy Entertainment's grabbing 110 million yuan in technology during the year, my heart must have begun to ache at this time, right?

Editor: Mary