The company is a leading Internet research and development company in China, and at the same time, the company's mobile phone service is also booming. According to the statistics of iResearch, an independent research institute, according to the net revenue of the network research and development industry in 2012, the company ranks first among China's web research and developers, accounting for 24% of the market share. As of June 30, 2013, the company has successfully developed and launched more than 30 models that are easy to use, attractive and popular. As of June 30, 2013, the company's development platform 91wan has launched 79 independent development and proxy networks, with more than 179 million subscriptions.
We advise investors to invest in the market.
The company is in charge of
(1) the leaders of the Internet industry in China have the special service model of joint research and development; (2) they have the practical ability to develop and develop; (2) they have launched a number of successful products in the past and will continue to launch new ones in the future; (3) a leading development platform; and (4) a large combination of marketing and multi-purpose development networks. (5) to establish a culture of mutual assistance and cooperation.
Overview of the industry
Internet access is one of the most popular forms of password communication in China. According to CNNIC, as of June 30, 2013, 345 million or 58.5% of China's Internet users played Internet games. The usage size of the Internet is larger than that of Weibo Corp and social networking sites. According to CNNIC, the usage patterns of Weibo Corp and social networking sites are 331 million and 288 million respectively. In 2012, the net net income of people in China was 58.3 billion yuan, which is expected to increase to 105 billion yuan in 2016, with a compound annual growth rate of 15.8 percent, according to Ai Rui. China's Internet industry has customer clients and Internet Internet market segments. According to Arizona, the local market accounted for about 96% of the total market share in 2012.
Customer accounts were introduced to China in 2000 and have recently become the largest retail market for customers, accounting for about 83% of the total Internet revenue in 2012. The customer terminal is required to take the initiative to install a specific device on the computer that plays the game. According to Ai Rui, the size of the customer terminal usually ranges from 2GB to 4GB, which requires about two to six hours of downloading time for China's interoperability. The sub-cities of customer terminals are becoming more and more mature and are expected to grow at a compound annual growth rate of 13.4% from 2012 to 2016, which is lower than the average industry growth rate of 15.8% for the same period.
Internet marketing began in 2007 and is now the second largest market segment, accounting for about 13% of the total Internet market in 2012. The web server can be played directly through the server and requires the active installation of the customer terminal device. Therefore, compared with customer-side customers, customer service allows players to be faster and more convenient. Internet sub-cities grew at a compound annual growth rate of 85.2% from 2008 to 2012, and are expected to further grow at a compound annual growth rate of 21.8% between 2012 and 2016.
There are several revenue models on the Internet in China to collect revenue. In the early days, Chinese web users used the time revenue model, in which players paid for top-up cards according to the purchase time. In 2005, the prop revenue model came into being, and players can exempt the Internet from the Internet, and they can also further strengthen the prop system through the purchase of props. According to iRui, the prop revenue model has now become the mainstream revenue model of the entertainment industry, accounting for most of the entire market.
In China, more and more users are using a variety of devices, especially mobile devices, which have become more and more popular. The usage patterns of smart phones are still relatively small compared with personal computers and non-smart phones. However, mobile devices (such as mobile phones and flat-panel computers based on iOS and Android systems) have similar functions like personal computers, and it is expected that the usage of these devices will increase dramatically. As of December 31, 2012, the penetration rate of smart phones in China (that is, the proportion of smart phones in use in all mobile phones) was 32.6%, according to iRui. According to Ai Rui, the penetration rate of smart phones in China is expected to reach 46.2 percent in 2016, indicating that smart phone users have a great capacity for sustained growth. According to iRui, the proliferation of smart phones has further increased the market for mobile interaction, thus providing a huge opportunity for participants to further expand their content beyond personal computers. Because players can instantly upload via smart phones, mobile developers can increase the popularity of their mobile phones and increase their participation by making use of their time other than personal computers. The estimated income generated by the mobile market in 2012 is 1.9 billion yuan.
It is expected to further increase to 17.8 billion yuan in 2016, with a compound annual growth rate of 75.5 percent. According to Arizona, from 2009 to 2012, the mobile market has become the fastest growing sub-market in China. The participants in the mobile phone market in China are mainly mobile phone entry enterprises, because there are existing customer clients and web-based companies that are entering the market.
Profit ability and duty number
In the six months ended June 30, 2013, the income of the people was 573.7 million yuan, while the people's income of 347.1 million yuan in the six months ended June 30, 2012 increased by 65.3%. The cost was 6.41 million yuan, and the cost of 3.10 million yuan for the six months ended June 30, 2012 increased by 107.0%. The expenditure during the period was 243.3 million yuan for the people and 122.2 million yuan for the profit-making people in the six months ended June 30, 2012.
Collection purpose
About 20% of the proceeds from this collection of HK $904.5 million (based on a median of HK $49.25 per share) will be used to further develop the company's network networking and mobile services, including, but not limited to, the construction of related network infrastructure facilities, recruitment of talent and investment in R & D and financial analysis systems. About 60% is used for (I) receiving Chinese license and intellectual property rights or other relevant property located in China or through overseas affiliated companies of the company or Philippine investment or receiving Chinese license and mobile research and development developers, (ii) through contractual arrangements to purchase or receive Chinese license and transfer developers. Or (iii) through the company's overseas affiliate company to collect the overseas network subscription and transfer the equity rights or assets of the company. About 10% will be used for the expansion of international affairs (including the development of overseas affiliated companies and the establishment of overseas offices), and about 10% will be used for financing funds and other general business purposes.
Valuation
According to the IPO price / earnings ratio of HK$43.50 to 55.00, the price-to-earnings ratio for 2012 is 19.95-25.22 times, and the price-to-price ratio is 4.0-4.4 times. Despite the recent growth and strengthening of the company, it is still in the period of investment, and the business is becoming increasingly fierce, while the company is still in the phase of investment. In order to increase the number of shares, the company is characterized by rapid growth, but the Probability of Failure of failure at the same time is also too high, and there is still not enough support at the time, so it is speculative.
Negative factor
(1) Research and development of network networking and mobile communications have a short history, based on estimated prospects and future transactions; (2) if the company fails to successfully manage the company's current and future growth or maintain or improve the company's realizability (which involves transforming the company's portfolio, building a company, and balancing the company's growth), the company's responsibilities may be affected. (3) if the company's network network fails to maintain its popularity during its expected life cycle, or if the company fails to develop and develop a new welcome network network, or if the company fails to launch a new network network in a favorable market opportunity, the company will attract or retain players and improve its ability to recognize customers, and will adversely affect the company's performance. (4) the company may not be able to successfully operate the company's self-development platform and the company may be limited by some of the inherent limitations of developing services; (5) if the company fails to develop compatible new mobile devices and technologies, the company may not be able to successfully attract and retain a large number of players who are increasingly connected to mobile devices. (6) if the company fails to properly collect, store or analyze player data, the company's data analysis ability may be affected; (7) the majority of the company's revenue comes from a small number of users, and in order to increase the company's revenue and maintain the company's competitive position, the company must continue to launch and improve the web sites that attract and retain the majority of players; (8) the web networking and mobile networking industry is very fierce. If the company fails to manage effectively, the company's obligations, operating conditions and operating conditions will be seriously affected. (9) the company conducts a large number of network transactions based on third-party platforms, and if such third-party platforms fail to perform their obligations to the company, the company fails to maintain a relationship with a sufficient number of platforms, or such platforms lose people to each other players, the company's operations and transactions may be significantly adversely affected.