Event: celadon Game (6 633.HK) released its 2021 results report on March 24, 2022 (Beijing time).
Comments:
The company changed from profit to loss in 2021. In 2021, the company's income was 1.106 billion yuan, the cost of yoy-10%, was 293 million yuan, the gross profit of yoy+3.38%, was 813 million yuan, the loss of yoy-14%, attributable to shareholders was 367 million yuan, and the adjusted profit of yoy-454%, was 422 million yuan, yoy+154%.
The total number of registered players in 2021 reached 72 million, an increase of 20.8% over the same period last year. The average number of monthly active users reached 2.54 million, down 26.3% from the same period last year. The average MPU44 is 10,000, down 11.2% from the same period last year. As of December 31, 2021, Tencent QQ, Wechat, TapTap, Bilibili Inc. and other social media platforms have accumulated a total of 10.53 million celadon players.
"the strongest Snail" is the signature game of the celadon game, which continues to perform strongly in 2021, with better performance in the newly launched game "Lantern and Dungeons". The strongest snail generated a total income of 821 million yuan in 2021. Lantern and Dungeons was launched in March 2021 and generated a total income of 250 million yuan in 2021.
The company currently has 11 mobile game reserves, covering RPG, SLG, ACT RPG and other types. The games that already have version numbers and are expected to launch in 2022 are "time Travel Agency", "Magic Plan" and "Knight charge". The games expected to be launched in 2023 are Ares virus 2 and Blade Heart 2, as well as six other SLG, STG and other mobile games under production and testing.
The company continues to promote the stock game out to sea. The iconic game "the strongest Snail" will be released locally in Japan in 2022 and is also preparing for release in Europe, the United States and Southeast Asia.
In terms of self-developed games, time Travel Service has completed the first round of tests in Hong Kong, Macao and Taiwan, strengthening its social attributes in addition to inheriting the original innovative design, category advantages and personality expression.
Revenue from game operations decreased by 3.9% compared with 2021, and revenue from self-developed games decreased by 26.9% compared with 2021, mainly due to the decrease in income from the strongest snails. Revenue from licensed game operations increased by 2230% year-on-year, mainly due to an increase in revenue from the release of Lantern and Dungeons in March 2021. Game licensing revenue decreased by 38.9% year-on-year, mainly due to the reduction of licensing income in Hong Kong, Macao and Taiwan, "not thinking about the maze" and "the strongest snail". Revenue from information services decreased by 74.5% year-on-year, mainly due to the reduction in viewing and clicking of advertisements in the game.
Costs rose 3.0% from 284.6 million yuan in 2020, mainly from commissions charged by third-party game developers. The cost in 2021 is 293.2 million yuan. The increase in costs is mainly due to a year-on-year increase in the cost of commission collected by third-party game developers by 1584% to 40 million yuan, mainly due to the increase in third-party developers' commissions brought about by the successful release of Lantern and Dungeons in March 2021.
Investment suggestion: the company landed on the main board of the Hong Kong Stock Exchange on December 16, 21, and became the only game company listed in 21 years. Affected by the version number and the research and development of new games, the launch time of some products was delayed. The stock games such as "the strongest snail" and "do not think about the maze" are stable, and the new online games have the potential. 22 years of attention has been paid to the game going out to sea, "time Travel Service" and "Magic Plan".
Wait for the head game with version number to go online, and look forward to the landing of products such as "Project E" 23 years later. The company currently has a sufficient number of game project reserves and covers RPG, SLG and other categories, R & D team is stable, it is recommended to pay attention to.
Risk factors: tighter regulatory policies on games and minors; the downturn in the macro environment led to lower-than-expected advertising; the release of game version numbers was not as expected.
