1. IPO subscription proposal: The company is an online board game developer and operator, and its main operating markets are concentrated in China, Hong Kong, Taiwan and Thailand. The business model is to provide players with free games and a certain amount of free virtual tokens. Players need to use virtual tokens to enter the game; the company's main revenue comes from selling game virtual tokens and other virtual items to paying players. The company currently has over 350 million registered players, including 249 million registered players for web games and 101 million registered players for mobile games. Based on IP addresses, the company's registered players are distributed in more than 100 countries and regions. According to iResearch's calculation of the overall size of the online board game market in China in 2012, in terms of revenue, the company has a market share of 23.3% in the Chinese online board game market, ranking first. Currently, the company operates a total of 16 online games, of which 13 are board games, such as “Texas Hold'em,” “Land Hoe,” “Chess,” and various mahjong games; in addition, the company also provides other types of online games, such as the shooting game “Bugs Attack” and the pet-breeding game “Happy Baby.” All of the company's game products are developed in-house, and 12 of these games provide both web and mobile portals. According to the preliminary prospectus, the company's revenue from web games accounted for 69.9% of total revenue, a decline; revenue from mobile games accounted for 30.1% of total revenue, which further increased. According to language version classification, simplified Chinese, traditional Chinese, and Thai accounted for 30.8%, 23.9%, and 27.3% of total revenue respectively. The company's revenue mainly comes from the “Texas Hold'em” series, which accounts for about 90% of revenue; in addition, the “Landlord” series also accounts for 7% of revenue. The number of corporate paying players increased from 316,000 in 2010 to 517,000 in 2011 and 611,000 in 2012. As of mid-2013, the number of corporate paying players was 689,000, an increase of 74% over the previous year. The value of ARPU in mid-2013 was RMB 74.7, down 27% from the previous year. As of the first half of 2013, the company had achieved total revenue of RMB 309 million, up 27% year on year; gross margin was 62%; and realized net profit of RMB 70.16 million, up 3.1% year on year. Measured according to non-international financial reporting standards, adjusted net profit was 104 million yuan, up 33% year on year. The company's tender price is HK$4.55 to HK$5.60 per share, but the PE corresponding to net profit for the first half of 2013 multiplied by 2 is 12.3 times to 15.2 times, which is lower than that of peers. However, the company's revenue source mainly comes from the “Texas Hold'em” series, and the revenue structure and method are relatively uniform. Furthermore, in the future, the company's products will face competition from Tencent QQ and WeChat games. Recently, WeChat has launched “landlord” on its game promotion platform, so there are certain competitive risks in the company's future operations, so investors are advised to be careful when purchasing.