China Party Culture (01532-HK), a maker of sexy lingerie and anime role-playing clothing, issued a clarification announcement following up on the issue of convertible bonds on April 22 after the market closed at noon. The two-page announcement, one is to explain how much money has been used so far, and the second is to simply mention convertible bonds.

▲ Chinese Party Culture website

▲ Chinese party cultural products

A completely inconspicuous announcement, most of the media did not mention! And most people are confused and can't understand anything. However, the reporter happened to have the spirit of tracking down to the end, opened the stock app in the mobile phone, and was surprised to find that this stock was unexpectedly on the list of 20 gains in Hong Kong stocks today.

Since this announcement refers to the announcement of April 22, the reporter immediately looked up the announcement of that day. The 14-page notice states that a convertible bond of $20 million will be issued with IDS 13 Holdings (hereinafter referred to as IDS 13) for a period of two years with an interest rate of 4% per annum. Assuming that the convertible bonds are fully converted at the conversion price of 0.529 yuan, the convertible bonds will be convertible into about 37.8072 million shares, equivalent to about 4.76% of the issued share capital of the company after the conversion shares are issued.

What is the origin of IDS 13?

Originally an indirect wholly-owned subsidiary of iDream Sky Technology Limited (iDream Sky), iDream Sky American depositary shares are listed on the Nasdaq Global Select Market under the stock code "DSKY". The main business of IDS13's parent company, iDream Sky and its subsidiaries, is the distribution of mobile games.

If you are not a fan of the scientific and online community, you may not be familiar with iDreamSky, but it has a deep background and is a first-hand travel company in China. You may not have an idea yet, so you must have played its games, such as Fruit Ninja, which is popular all over the world, and some time ago the editor was obsessed with another beautifully crafted space unlocking game Monument Valley.

As long as you visit the iDreamSky platform, you will know that his Chinese surname is Dream World, a fast-growing mobile game company, and the only mobile game publisher that Tencent has invested in China.

From its establishment in 2011 to its successful landing in the United States on August 7, 2014, it took only three years and six months to create a dream. In just three years, from 19.37 million yuan in 2012 to 984 million yuan in 2014, the revenue of Dream World has increased 50 times, and Deloitte has been rated as the fastest growing high-tech company in Shenzhen. In the first half of 2015, the revenue of Dream World was close to 800 million yuan.

According to the information obtained from the website, the Letiao game under Dream World is the largest mobile game distribution platform in China, and it has partnered with international famous manufacturers such as Halfbrick, Imangi, Devsisters, Miniclip, Ubisoft, Kikoo, Smilegate, Wemade and Disney to introduce the popular "Temple Run" series, "Fruit Ninja", "Metro Parkour", "Monument Valley" and "brain Secret Service" into China.

Fruit Ninja, Temple Run and Metro Parkour are all national-level mobile games in China. In Analysys International's 2015 TOP100 ranking of mobile games, Metro Parkour, Temple Run 2 and Fruit Ninja won the top three with 21.49 million, 13.87 million and 10.23 million monthly active users respectively, and far ahead of other mobile games. In the leisure mobile games market, amusement games rank among the best in China, especially in parkour games, which almost occupy a monopoly position.

At the same time, Le Tuan is also actively laying out medium and heavy online games, and has successfully released the world's first 3D martial arts masterpiece, "Sanjianhao", which exclusively represents the mobile travel version of EA classic "Dragon Teng Century". In 2015, the amusement game invited the online literature god Bombyx mori Tudou as the producer to launch the online game "Sky change", which became one of the most popular online games in China in the first month.

In China's mobile game market, the number of users and active users of entertainment games has been ranked first. In the first quarter of 2015, the average number of monthly active users (MAUs) reached 119 million. According to Analysys, Leteo accounts for 28.1% of the total number of users in China's mobile game distribution market, far ahead of other manufacturers. Reprinting so much data in one breath explains the reason why Chinese party culture gives people a lot of room to imagine.

Having said so much, is it possible that Dream World will one day become the speaker of Chinese party culture? Yes, this bold assumption can be made, and there are other clues that can be delayed.

We have learned from the data that Dream World is also a member of the army of returning A shares. In the second quarter of last year, Qihoo 360, middle-hand games, Renren were in the army.Easy to live in ChinaMore than 20 Chinese-listed enterprises received an invitation to privatize.

Some members of Chinese-listed stocks preparing to return to A-shares are "passing through" Hong Kong and "shopping" by the way. Qihoo 360 is one of them. Last year, Qihoo 360, together with people's Insurance (01339-HK) and property Insurance (02328-HK), acquired Vision Holdings (00862-HK). However, he was backed down by the Hong Kong Stock Exchange (00388-HK) at the beginning of this year. Therefore, the Chinese party culture this rights issue of IDS 13, does not rule out the following.

It is also mentioned in the announcement issued by Chinese Party Culture this afternoon that the Board of Directors has been considering and identifying opportunities to expand the Group's business and revenue sources, as well as any future development opportunities of the Group. What is interesting about the announcement is that the Chinese party culture mentioned that they learned about the dream world on a certain occasion at the beginning of this year. Chinese party culture took the initiative to mention that after that understanding, after learning that Dream World's knowledge and business activities in mobile game distribution, experience in China's mobile game market and major business activities. The directors of the company believe that they can explore the further development of their own business with mobile game elements, and the most important thing is that Dream World can bring value to the long-term development of the Group. In fact, to put it bluntly, the so-called "value" means business opportunities.

For the Chinese party culture, I believe it is a good opportunity. The company just announced a net profit of 66.716 million yuan (RMB) for the year ended December 2015 before the end of March. (the same below), up 13.89% year-on-year; earnings per share 11.06 points; no final interest. During the period, the income was 570 million yuan, up 43.14% year on year, and the gross profit was 165 million yuan, up 49.34% year on year. The gross profit margin increased from 27.8% to 29%.

The main figures are good, but some data might as well take a look. For example, the net interest rate fell from 14.7% in 2014 to 11.7% in 2015, while trade and other receivables increased from 24.256 million yuan in 2014 to 61.83 million in 2015. The age analysis of trade receivables (after deducting impairment) according to the invoice date is as follows: in four categories, those with 0-30 days decreased from 12.834 million in 2014 to 43.784 million yuan in 2015; those with 31-60 days decreased from 25.51 million in 2014 to 15.82 million yuan in 2015. There is no payment for 61 to 91 days and 91 to 365 days in 2014. there was 90,000 yuan in 2015.

Chairman Chen Shengbi has made a brief speech on the future of the company in his already report, that is, in the long run, the Group will enhance its added value and look forward to bringing comprehensive solution services to its customers. a role-playing solution supplier that adds value to the product sales business model to products + services, and strives to become the first brand and preferred channel for role-playing and party products and services.

For shareholders who bought in the listing of Chinese party culture, it would be better to see the stock price at home, which rose more than 12 per cent to 0.9 yuan today, waiting for the dream to come true.

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