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The game industry is saying goodbye to the era of profiteering. There is no enterprise A share IPO for two years.

via:博客园     time:2018/8/7 14:01:36     readed:484

Source: Daily Economic News

Every reporter, every edited by Yang Yi


Chinese game market actual sales revenue data source: gamma data Zou Li cartography

In this year's China Joy, a game industry group shared the phenomenon that China Joy was held in the past year. The bosses of the game companies met to talk about how the game was doing, what new games were made, and how much money was earned. This year, when you meet, you will ask if the itinerary has been affected by the typhoon. When you go to gather at night, there are very few questions about game production. This reflects the changing industry ecology, and everyone's excitement from the past to the present, “cold”.

During the exhibition, “Daily Economic News” reporter interviewed a number of game company executives, especially the CEOs of non-listed medium-sized game companies, the most heard words were “lack of money”.

In the past two years, no game company has landed A shares through IPO audit, and many companies have switched to Hong Kong stocks. At the same time, many game companies in the past few years have not been able to achieve big results through mergers and acquisitions. Not only that, but the performance of the previously acquired companies is difficult to complete the gambling, or the phenomenon of changing face immediately after completion. In this context, how the game company has a bloody way has become the most concerned topic in the industry.

Industry growth slows down the business & "lack of money”

According to the data provided by the research institute gamma data, in the first half of this year, the growth rate of sales revenue in China's game market was only 5.2%, and in the first half of 2015 to 2017, the sales growth rate of the game market was as high as 21.9% and 30.1% respectively. 26.7%.

Behind the slowdown in growth, on the one hand, the industry dividend period has passed, on the other hand, the game companies have difficulties in financing. The capital boom has caused many companies to fall into capital difficulties, restricting the performance of new games, and even making some games unable to go online as expected. .

For game companies, having capital can take more chips and deal with brutal competition. However, as far as the A-share market is concerned, since the approval of Gigabit's IPO on the Shanghai Stock Exchange on June 15, 2016, no game companies have landed in A-shares so far. This also reflects that the game company's capital operation path in A shares is not good.

In the case that the A-share door is difficult to knock, many game companies choose to go to Hong Kong IPO, except for Fingertips, Seventh Avenue has successively landed in Hong Kong stocks, Duoyi Network, Dreamworld, Huiquan Technology, Play Coffee, Chuangjia Holdings It has also submitted IPO applications, and Hong Kong stocks are expected to become another major battleground for game companies.

The rush of the game company to reflect on the listing is the hunger for funds. Zhang Peng, one of the founders of Agras and CTO, told the reporter of "Daily Economic News" that the most direct reason for a large number of companies seeking listing is the lack of money. Although the game company is not a heavy asset, it also needs more working capital. On the one hand, the most important resource in the industry is talent, there are talents and products, and retaining talents needs to provide sufficient treatment; on the other hand, good game products. Developed, it also requires a lot of money to promote.

Yu Xiaowei, founder of Youge Capital, told reporters that to grow steadily in the highly competitive game industry, it will definitely require a lot of capital investment, and listing is indeed an important financing channel, and the cost is relatively low.

Some game company related people analyzed to reporters that today, the game giant's days are still very good, and some small companies, if not seen by the giants to be acquired, survive the squeeze, very difficult, some companies even start to do some A very basic game that is not seen by the industry, so that Mr. survives.

Premium content is still favored by capital

At the same time, the game companies that were acquired by listed companies in the past few years are now faced with a single income, no new products to support the performance, and face the situation that they can't complete the gambling agreement or the performance soon after the completion of the performance.

For example, in 2013, Huayi Brothers acquired a 52% stake in Yinhan Technology. According to the agreement, Yinhan Technology needs to achieve performance commitments of 110 million yuan, 143 million yuan and 185 million yuan respectively from 2014 to 2016. Although Yinhan Technology successfully fulfilled its performance commitments in 2014 and 2015, by 2016, Yinhan Technology's net profit only reached 60% of the promised amount.

Let's look at Tianjin Shell Wood, which was acquired by Shenzhou Taiyue in 2013. The latter's net profit in 2014 was 89 million yuan, only 81.69% of the promised performance.

In this regard, an industry analyst who did not want to be named said that the game industry mergers and acquisitions have long shifted from the seller's market to the buyer's market, coupled with policy regulation, now large game companies do not like to use the acquisition method to expand, because many The performance of the target belongs to “the fog is watching flowers”, and the big companies are also afraid of stepping on the thunder.

Therefore, for investors, it is not easy to select a good game company to invest now.

Yan Xiaowei told the reporter of "Daily Economic News" that in the domestic game industry, there will be fewer and fewer platform-based and channel-based companies. Most of the small and medium-sized companies that can survive are mainly content providers, because the game industry is a product. Leading industry, the market always needs high-quality products, content providers with continuous innovation ability, will always have a place in the industry, this law runs through the whole process of the development of the game industry.

At the same time, in the first half of 2018, the growth trend of China's game industry is slowing down. Xiao Xiaowei also said, “There are many reasons, not too big a surprise, the product-centered industry, wave-type development is the norm, I was more than ten years ago. As I have said repeatedly, it is necessary to slowly slow down, do some thinking, and make some adjustments. ”

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