Financial Services Association, September 12 (Reporter Cui Ming) The “Double Sword” IP, which has affected generations of gamers, is about to change hands, and China Mobile Games (00302.HK) will take over the copyright of “Legend of Sword and Fairy” other than mainland China, which means that the company has completed the acquisition of the IP's global copyright.

A CIFA reporter learned from China Mobile Games that “World of Fairy Sword” will soon enter the fourth test on October 10, which is also the ultimate test, and will make every effort to promote the official launch within this year. Currently, the number of game reservations is close to 5 million, and efforts will be made to exceed 10 million before it goes live. “World of Fairy Sword” is a cross-platform game, and the gross margin on the PC side will have a chance of reaching nearly 70%.”

“Fairy Sword World” can be described as the game that has received the most attention among the mobile game reserve products in China. This game was developed by Gentian Star Studio, a subsidiary of China Mobile Games. It has been polished for more than 3 years, and obtained both PC and mobile versions in June of last year. Agency sources believe that the launch of “Fairy Sword World” will verify the company's commercialization model for IP series products, and blockbuster IP games are expected to boost performance.

Daewoo Information's “Double Sword” IP refers to “Xuanyuanjian”, which was launched in 1990, and “Legend of Sword and Fairy” released in 1995. These two games have been hugely successful and adapted into movies and TV dramas, and their influence continues to expand.

The origin of China Mobile Games and “Legend of Sword and Fairy” can be traced back to 2018. At that time, China Mobile Games acquired 51% of the shares of Beijing SoftStar, a subsidiary of Daewoo Information, for RMB 0.213 billion, and also acquired the remaining shares of Beijing SoftStar for HK$0.642 billion in 2021, thus owning all the interests of the “Legend of Sword and Fairy” IP in mainland China.

Daewoo News announced last night that the “Legend of Sword and Fairy” IP transaction targets 100% owned subsidiaries of China Mobile Games outside of mainland China. The transaction amount is RMB 18.3 million and China Mobile Games newly issued 38 million shares of common stock shares. The total price is nearly NT$0.2 billion.

The decision to sell was already showing signs before. On May 14 this year, Daewoo Information issued an announcement stating that the board of directors of the company has decided to sell its “Legend of Sword and Fairy” and “Xuanyuanjian” IPs, and that the company will authorize the chairman to carry out related planning and negotiation work. Subsequently, Daewoo Information Chairman Lu Junguang posted a post on social media to respond to questions, stating that he took charge of Daewoo Information on January 14, 2014. At that time, “Xuanyuan Sword 3,” “Sword of Heaven,” and “Fairy Sword 4” were all 20 years ago, so he did not experience the so-called “Double Sword Glory Scene”, nor did he experience the buzz and praise when “Double Swords” was released.

China Mobile Games stated in the announcement that the full acquisition of the global intellectual property rights and interests of “Legend of Sword and Fairy” will consolidate the ecological competitiveness of the company's IP games and ensure the long-term stable implementation of the company's IP gaming strategy. China Mobile Games will increase investment in all areas to create more high-quality content and interactive experiences by combining forms of entertainment preferred by young users.

Also affected by the above news, mobile game stock prices have risen by more than 6% as of press release.

According to financial reports, in the first half of this year, China Mobile Gaming achieved revenue of 1.233 billion yuan, a year-on-year decrease of 19.68%; adjusted net loss was 0.208 billion yuan.