Entering 2024, the trend of the game industry is becoming more and more obvious towards quality competition from quantity competition, which brings greater long-term imagination space for companies that truly have strong self-research capabilities, can continue to promote high-quality new games online, and perform long-term operations. How to further understand listed companies accurately and capture investment opportunities in the future game industry?

On June 27, 2024, the "GLH Mid-term Strategy Summit 2024" hosted by GLH was held in Shenzhen. Many high-quality listed company executives came to communicate with investors offline. On the day of the event, Wang Yilan, the investor relations responsible person of Qingci Games (06633.HK), an excellent content game company with research and operation, and global layout, attended the event and had in-depth exchanges with investors. GLH also sorted out the speeches of this IPO roadshow for everyone to enjoy.

In the past year, Qingci Games' business development has been strong, and its growth has been fully demonstrated. What is the value of Qingci games? Investors may find answers in the article.

Looking back: Many new games are launched to cooperate with global layout, and high-quality growth.

Since its establishment, Qingci Games has been committed to providing excellent mobile gaming experiences to global players. At present, many games launched by the company have achieved significant results and won extensive market acclaim.

Specifically in terms of games, in addition to doing a good job in the long-term operation of the flagship game "The Strongest Snail", the company has also completed the launch of multiple new games such as "Swords of Legends: Hua Jianqi Xia Biography" and "Cardcaptor Sakura: Memory Key", etc., which have successfully attracted extensive market attention and player interest. The launch of these new games not only enriches the company's product line but also brings significant promotion to the company's revenue.

In addition, Qingci Games has further enhanced its brand influence and competitiveness through the deep implementation of its global strategy and diversified market layout. Recently, the company has successfully launched and promoted flagship games such as "The Strongest Snail" and "Cardcaptor Sakura: Memory Key" in regions such as Hong Kong, Macao, Taiwan, Japan, Southeast Asia, North America, and Australia, and has not only topped the iOS free game and bestseller lists in multiple markets but also achieved long-term operations and sustained profits for the games, significantly enhancing the company's international influence and diversification of revenue sources, demonstrating its strong competitiveness and brand appeal in overseas markets.

Image source: Company roadshow materials

Driven by the powerful creation and global distribution capabilities, Qingci Games' financial data has many highlights. The 2023 financial report shows that Qingci Games' monthly active users (MAU) and operating income have maintained steady growth. The company's average MAU reached 2.48 million, a year-on-year increase of 55%, and the average monthly revenue per paying user (ARPPU) reached RMB 302, reflecting the significant effects the company has had in enhancing user stickiness and profitability. Correspondingly, the company's overall performance has also shown a high-quality growth trend, with revenue reaching RMB 906 million in 2023, a year-on-year increase of 43.7%, and gross profit reaching RMB 558 million.

Image source: Company roadshow materials

Overall, based on a steady fundamental situation, Qingci Games has sufficient internal growth momentum, and the benefits brought by overseas expansion are catalyzing its growth.

Looking to the future: a rich reserve of games, with development potential.

Looking to the future, Qingci Games is accelerating its growth both in the short and long term.

At the current stage of development, Qingci Games still has a rich reserve of games, and as the commercial value of these reserves is continuously realized, it will provide a continuous source of power for the company's growth. For example, the key product "Project E" will further expand the scale of testing in 2024; many authorized projects have been launched overseas, such as the release of "Fragrant Goose Fitness Room" in Japan and the release of "Project L" in South Korea; and many games have also obtained the game version number and will be launched in the future.

From RPG to SLG, and then to placement games and so on, the richness of Qingci Games' reserve games reflects the company's in-depth exploration and extension in different gaming areas. In addition, Qingci Games also plans to launch multiple new games in the next few years. The diversity and innovation of these games will further enrich the company's products and services, meeting the needs of different players.

From this perspective, thanks to its sustained innovation, Qingci Games' development potential is promising. With the continuous development of the game industry and the deep implementation of the company's strategy, Qingci Games is expected to achieve greater market breakthroughs and business growth in the future.

Q&ALink

Q1:Seeing the financial data, the overall performance of the company in 2023 is still under pressure. What measures are there to ensure the sustained and stable development of the business?

A1:Several block order games of the company, such as 'The Strongest Snail', were released in North America in August last year, while 'Cardcaptor Sakura: Memory Key' was only released in Mainland China and Hong Kong and Macau regions in Q4 last year. In the initial stage of the online games, the company needs focused marketing promotion, so there were certain marketing expenses in the second half of last year, which led to pressure on the company's performance in the early stages of the game release. Taking a longer-term view, several of the above games have now entered the recycling period, and the company is preparing to launch new games online at home and abroad, which is expected to boost performance this year.

Q2:AI is also widely used in the game industry. I would like to ask which aspects the company will apply AI in?

A3:The company's application of AI is reflected in many aspects. One is art, where AI can improve the efficiency of sketching, thus speeding up the iteration speed of art. In addition, the company will also apply AI to planning aspects, such as brainstorming for game planning, which can improve the overall output efficiency of the game. AI is also helpful in localization translation and customer service. The most important thing in the game industry is to produce good content. AI, as an effective tool, can help us produce good content more efficiently.

Q4:Considering the release of the 'Online Game Management Measures (Draft for Solicitation of Comments)' in December last year, I would like to know how the company views this policy and what impact it will have on the company's revenue if the policy is truly implemented in the future, regarding the chaos in the marketing of new users and the excess promotion of irrational user recharging.

A4:This draft can help regulate and promote the healthy development of the game industry. If this policy is truly implemented, it will not have too much impact on the company's business. After all, compared to relying on monthly cards, annual cards and other means to promote recharging to gain short-term revenue, the quality of the game itself is the guarantee of the company's game revenue. Qingci's games are mainly based on quality content, and the company supports national policies to promote the healthy development of the industry and will continue to work hard to create more quality games.