4399 to gem game concept of global cooling

Recently, 4399 casual game platforms in their domestic gem IPO Prospectus. Prospectus note 4399 the proposed IPO of no more than 33.3334 million shares, 4399 Chairman Luo Haijian, Vice Chairman Li xingping respective holdings of 2 million shares, guangfa Securities Act as lead underwriters.

As a veteran of game company, 4399 Yu 2002 established, from early of do Flash small game platform, now has development became offering book in the mentioned of “set page game, and mobile network game development and issued and game platform operations Yu one of integrated type Internet game company”. from 2011 up to 2013, 4399 of performance has been in rose State, three years of net profit respectively reached 116 million Yuan, and 233 million Yuan, and 249 million Yuan.

In fact, the recent capital markets, cooling to game concept, but its a-share listing of the game company is still relatively high valuations, but in Hong Kong and us stock markets both domestic Internet listing more concentrated areas, games, undervalued stocks.

Insiders believe that because games limited games product, contingency, and other factors, it is difficult for investor approval. La gang interaction after domestic tour company announced that delays due to possible shrinking of the global offering. While many gaming companies have listed had originally planned to hold off listing plans.

4399 Sprint gem

4399 total owns 7 subsidiaries, swam home in Beijing and Guangzhou respectively 4399, Beijing tours, 4399 Korea, 4399, 4399 Hong Kong Japan and Xiamen pure tour.

In addition, the prospectus showed that first half of 2014 revenue 4399 786 million dollars, and net profit of 158 million dollars. Shareholders include: Luo Hai 38.38%, Yee Chen investment 18.52%, and Li xingping, CAI Wen sheng 1.07%.

Seen from the revenue structure, 4399 sources of income are mainly: the game’s own platforms operating revenues, gaming platform for third-party transportation revenue and advertising revenue three modules, 2014 1 June to total revenue, respectively, and 78.04% and 2.95%.

Company’s profit model for virtual games using props to charging mode, and according to its own incurred in the industrial chain of game developers, game publishers, platform operators to get game proceeds into different roles. Advertising revenue from the platform display and game advertising business. Former is relying on 4399.com game Web site and information platform to provide advertising and promotional services.

In fact, 4399 belongs to the forefront in the swimming area of the page. Pages in the second quarter of this year released according to the Analysys swim platform competition, apart from Tencent and qihoo 360, 4399 in the gaming company after 37 games, accounted for more than 7.1%.

However, market growth has slowed in recent years. Market monitoring data published according to the Analysys International think-tank first half of 2014, China Web games market size 10.572 billion yuan, an increase of 39.8%. This figure relative to the same period last year, 65.98% has slowed down a lot.

And on the other hand, the tour started but is still growing rapidly. 2014 China game industry report showed that 2014 game market revenue in China reached 114.48 billion yuan, an increase of 37.7%, in which the market revenue of $ 20.27 billion yuan, accounted for more than 17.706%, and tour revenues surpassed swim 27.49 billion, accounted for more than 24.014%.

Facing page swam slower, 4399 also began attempts to hand, but the current prospectus disclosure of the dark God, hands the tour landed in App Store’s first week became toll-free download games for 2nd place, highest monthly recharge water of more than 30 million Yuan. This tour was not prominent in the field of company.

AI media consulting CEO Chang told reporters, with past games to go public or be acquired by listed companies, like 4399, are also the main page tour as the main business support, concept set out to swim to enter the capital market and raise funds for hand acquisition, implementing hand business growth.

Cooling concept

In fact, the current tour started on the a-share market has relatively cold. “The secondary market enthusiasm for the game concept was beginning to get cold. “A brokerage analyst told the 21st century business Herald said the game, last year if there is a game company executives are willing to come forward to cooperate with broker research, brokerage analysts rush now for game companies to the research, very few securities analysts.

“Because everyone knows the Games expect hard to achieve, most companies are unable to maintain high growth, capital markets were not buying it, we are serving the market and interest dropped. “The analysts told reporters.

In fact, many gaming companies being bought by listed companies signed the VAM, but statistics show that listed companies reported in the previous semi-annual period, half of the promised performance before most companies has not yet been completed.

Zhang believes that in the a-share market, game cooling concept mainly lies in the capital markets, a wave of mergers and acquisitions on the value of the companies most tour companies have implemented a takeover, but hand there are many companies in the area is growing rapidly, the whole market is only about 20%, doesn’t like to be merged.

However, relative to Hong Kong stocks or stocks that even though there are many game companies in the a-share valuations are relatively high. At present, Bao Qing, Zhang interest in science and technology and the travel zone 152.01, 75.7 and network earnings 38.77. and before looking back at the Hong Kong-listed shares, according to last year’s earnings per share calculation, monk holding, IGG-interact with Burson-Marsteller’s earnings 69.84, 8.45 and 14.48;

Recently, domestic tour company interactive announcements blue Hong Kong, citing possible shrinking of the global offering and need to supplement prospectus, originally scheduled for the 19th of this month was postponed until December 30. Insiders told reporters, in addition to Blue’s own performance in the fourth quarter, many of the funds and fund managers to enter the secondary market a one-year settlement, much of the money had been evacuated, and the Hong Kong stock market’s poor performance in the near future, subscription not forceful enough, companies or reduce the scale of financing due to avoid to break.

While the United States travel market was equally bearish market rivals, after giant interactive, Shanda games, veteran in the game shares the perfect world, the Nineth city continued privatization rumors.

A tour company executives told reporters China planned for this year of the tour company, also began to hold off listing plans, seeking other opportunities listing again.

The brokerage analyst said, gaming at the moment the master hatchet man swim concept of small companies are also facing a giant awakening in the market, hand huge firms and the emergence of new areas is difficult, let alone listing. “Probably in the field of video games, beginning next year will have a fighting chance. ”

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