Forgame Announces 2016 Interim Results
Contribution from Mobile Games Increases to 63.2% of Total Revenue Business Transformation Strategy is well demonstrated
Contribution from Mobile Games Increases to 63.2% of Total Revenue Business Transformation Strategy is well demonstrated
Publish Date:2016-08-24 source:Forgame
(Hong Kong, 23 August 2016) – Forgame Holdings Limited (“Forgame” or the “Group”) (stock code: 00484), a leading developer and publisher of mobile games and webgames in China, today announced its interim results for the six months ended 30 June 2016 (“1H2016” or the “Review Period”). The Group is pleased to announce that Forgame has continued to make progress in the Group’s transformation plan to become a mobile game developer and publisher, with an emphasis in casual games. In 1H2016, the Group recorded revenue of RMB193.7 million, out of which RMB122.4 million was from mobile games, representing 63.2% of total revenue. Of the 13 mobile games launched in 1H2016, 11 of which were casual games. The improved revenue contribution from mobile games was primarily from “Sword Immortal (劍仙缘)”, the “Boonie Bears (熊出没)” series and the “Ultraman (奥特曼)” series. Forgame’s flagship casual game, “Beauty Box (美美小店)”,has also achieved initial satisfactory results. The game topped the iOS App Store free-download game list where more than 80% of the reviews were five-star ratings on the first day of public testing. Also, the Group has identified the HTML5 market as a potential growth avenue and has deployed resources to bring back one of the Group’s most popular games, “Charmed Westward Journey” in HTML5 format (醉西游HTML5版本).
Apart from the implementation of its PRC game development strategy, the Group also intends to bring its games to the wider global market. The overseas R&D and publishing team of the Group launched their first self-developed game, namely “Liberators”, which is a World War II themed strategy game tailored for overseas markets, in the first quarter of 2016. Up to the end of July 2016, this game served players from more than 100 countries and regions around the world. The initial results of this game have been satisfactory.
On the investment side, Forgame has entered into an investment agreement with Yinker Inc. in August 2016 and conditionally agreed to subscribe for convertible bonds in the principal amount of RMB300 million with 3.3% coupon. Yinker Inc. is a top 5 PRC internet finance company in terms of transaction volume, and this investment could potentially increase and diversify Forgame’s potential net income sources in the future.
Mr. Dongfeng Wang, Chairman and Chief Executive Officer of Forgame, said, “While the market continues to be challenging, we believe our strategy in avoiding head-on competitions with our peers in hard-core games segment is showing signs of progress. Both our female casual game, ‘Beauty Box (美美小店)’, and our international game ‘Liberators’, have shown promising results. Moreover, we believe the HTML5 market also provides us with an exciting market that could be fast growing and rewarding to participate in. At the same time, we actively seek out investments such as Yinker Inc. that could help Forgame to improve its profitability and overall competitiveness. Overall, our management team will continue to work diligently and prudently to enhance the Group’s growth potential and ultimately maximize shareholders’ value.
About Forgame Holdings Limited (stock code: 484)
Established in 2009 and listed on the Hong Kong Stock Exchange on 3 October 2013, Forgame Holdings Limited is a leading company of mobile games and webgames in China. As at 30 June 2016, Forgame had over 40 mobile games and over 30 self-developed webgames in operation. Its game publishing platform 91wan has distributed over 40 self-developed and licensed webgames and attracted over 226 million registered players.
Safe Harbor Statements
This press release contains forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, Forgame's limited operating history, its ability to develop and operate new games that are commercially successful, the growth of the online/mobile game market and the continuing market acceptance of its games and in-game items in China and elsewhere, its ability to protect intellectual property rights, its ability to respond to competitive pressure, its ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Forgame does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Apart from the implementation of its PRC game development strategy, the Group also intends to bring its games to the wider global market. The overseas R&D and publishing team of the Group launched their first self-developed game, namely “Liberators”, which is a World War II themed strategy game tailored for overseas markets, in the first quarter of 2016. Up to the end of July 2016, this game served players from more than 100 countries and regions around the world. The initial results of this game have been satisfactory.
On the investment side, Forgame has entered into an investment agreement with Yinker Inc. in August 2016 and conditionally agreed to subscribe for convertible bonds in the principal amount of RMB300 million with 3.3% coupon. Yinker Inc. is a top 5 PRC internet finance company in terms of transaction volume, and this investment could potentially increase and diversify Forgame’s potential net income sources in the future.
Mr. Dongfeng Wang, Chairman and Chief Executive Officer of Forgame, said, “While the market continues to be challenging, we believe our strategy in avoiding head-on competitions with our peers in hard-core games segment is showing signs of progress. Both our female casual game, ‘Beauty Box (美美小店)’, and our international game ‘Liberators’, have shown promising results. Moreover, we believe the HTML5 market also provides us with an exciting market that could be fast growing and rewarding to participate in. At the same time, we actively seek out investments such as Yinker Inc. that could help Forgame to improve its profitability and overall competitiveness. Overall, our management team will continue to work diligently and prudently to enhance the Group’s growth potential and ultimately maximize shareholders’ value.
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About Forgame Holdings Limited (stock code: 484)
Established in 2009 and listed on the Hong Kong Stock Exchange on 3 October 2013, Forgame Holdings Limited is a leading company of mobile games and webgames in China. As at 30 June 2016, Forgame had over 40 mobile games and over 30 self-developed webgames in operation. Its game publishing platform 91wan has distributed over 40 self-developed and licensed webgames and attracted over 226 million registered players.
Safe Harbor Statements
This press release contains forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, Forgame's limited operating history, its ability to develop and operate new games that are commercially successful, the growth of the online/mobile game market and the continuing market acceptance of its games and in-game items in China and elsewhere, its ability to protect intellectual property rights, its ability to respond to competitive pressure, its ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Forgame does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.