Incidents:
“Let's Go Muffin” National Service performed brilliantly: On May 15, 2024, the company developed its own casual theme and placed the “Let's Go Muffin” national service beta. According to Qimai data, “Let's Go Muffin” has been steadily rising in the iOS bestseller list, ranking in the top 10 best sellers as of June 11.
Investment highlights:
On May 15, the “Let's Go Muffin” national service was launched. Continuing its excellent performance in Hong Kong, Macao and Taiwan, it is expected to drive the company's performance growth in 2024.
(1) The national costume for the company's self-developed casual game “Let's Go Muffin” was officially launched on May 15. According to Qimai data, “Let's Go Muffin” ranked 1st in the iOS free list (overall list) and free list (game) during the pre-download stage on May 14; after its launch on May 15, “Let's Go Muffin” continued to rise from the top 13 to the top 4 on the iOS bestseller list, and remained stable at the top 10 as of June 11. As of June 11, the number of downloads on TAPTAP reached 1.38 million, and the rating reached 7.2 points.
“Let's Go Muffin” was launched on January 23, with excellent performance in Hong Kong, Macau, and Taiwan. According to SensorTower, “Let's Go Muffin” topped the Apple Store mobile game bestseller list in the local market several times in February. In February, it was ranked 3rd in the overseas mobile game revenue growth list and ranked 21st in the revenue list.
(2) “Let's Go Muffin” is produced by the “Play Polly Every Day” team. It focuses on players' demands for a decompression and unburdened game experience through games, choosing “healing” as the core theme, and a Japanese Western fantasy art style that is not common on the market. It is equipped with high-quality 3D art modeling and a soothing soundtrack style, providing players with a good sense of relaxation and adventure. At the same time, the core gameplay maintains the core fun of hanging up — easy development and growth. While incorporating the core fun of MMO's multi-career and social networking, the MMO's “liver level”, “krypton level”, and complicated mission/system/daily settings have been simplified, and it has been successful among a wide range of players.
On May 13, “Heartbeat Town” ended a new round of paid file deletion tests and opened App Store reservations.
(1) “Heartwarming Town” is a high-freedom life simulation game developed by the company. It completed a new round of paid file deletion tests from April 28 to May 13. The test was heavily optimized for test feedback in December 2023. At the same time, props that make it easy for strangers to socialize were added, branch farming gameplay was added to gardening, and more recipes and ingredients were added.
At the same time, the first paid card pool “Rose Time” was also launched in this test.
(2) On May 13, “Heartbeat Town” opened App Store reservations. According to the App Store, the game is expected to launch on July 17, 2024. As of June 11, the number of reservations for “Heartbeat Town” reached 2.3 million on TAPTAP, with an expected value of 9.0.
Major new games will continue to be launched in 2024, and it is expected that TAPTAP's activity will continue to increase.
In 2024, many games on the TAPTAP platform performed brilliantly. As of May 22, pre-downloads of “Song Tide” reached 1.83 million, and “Happy Fishing Master” was downloaded 12.64 million, effectively boosting the number of downloads and activity on the TAPTAP platform. According to Qimai data, TAPTAP ranked 23rd in the iOS free list in May, which is significantly higher than the same period last year; as new blockbusters such as “Desperate Zone Zero” and “16 Voices of Yan Yun” continue to be launched in the second half of the year, TAPTAP's activity is expected to continue to benefit.
In terms of the game business, the “Let's Go Muffin” national service and the Hong Kong and Macau Taiwan service performed well, and is expected to further contribute to the increase in subsequent releases in overseas countries and regions such as Japan, South Korea, and the US; on the TAPTAP platform, platform user activity has returned to a growth trajectory since Q4 2023, the company continues to optimize the homepage recommendation algorithm and distribution efficiency, and the platform operation data is expected to further improve.
Risk warning: Increased market competition, new product launch progress and performance falling short of expectations, rising traffic costs, falling short of expectations in the life cycle of old products, technology development falling short of expectations, exchange rate fluctuations, stricter policy supervision, loss of core talent, changes in player preferences, corporate governance/asset depreciation/lifting and holdings reduction, market style changes, declining industry valuation center, overseas market-related risks, etc.