1. Company performance: the turnover of the company in the first half of the year was 301 million yuan, down 17% from the same period last year; the gross profit was 121 million yuan, down 35.2% from the same period last year, and the gross profit margin decreased by about 11.3% to 40.1%. It recorded a net profit of 9.828 million yuan, compared with a loss of 7.888 million yuan in the same period last year. In the first half of the year, Langang Interactive launched a total of 19 games, including 11 self-developed games and 8 agency games, of which "100, 000 Cold jokes" launched in the second quarter earned 112 million yuan, accounting for 37% of the revenue. At present, the company has 190 million users.
2. Organizational restructuring in the first half of the year: the company divided the R & D team into two. The type of future R & D games will still be based on MMO (multiplayer online games), but one team will prefer ARPG (action) and the other will prefer strategic rounds. In addition, the company has also set up distribution windows in Beijing, Shanghai and Shenzhen. In the future, we are willing to look for long-term cooperation with game R & D companies to help them release and share the IP owned by the company to these R & D teams. The company believes that the quality of the IP determines the success of the game, now it is difficult for small game development companies to succeed, because it is difficult to obtain high-quality IP, and it is impossible to make a good product at a cost of less than millions.
3. The reason for the slowdown in the company's revenue growth: due to the intensification of competition in the game market, and the company has always been self-developed and self-selling model, and later has the ability to release other people's games, so the release of some of the company's self-developed games has been postponed. Although the mobile game industry as a whole has maintained good growth and the overall market trend is relatively optimistic, the company also sees some shortcomings in pure developers or pure publishers.
400,000 cold jokes: in the first week of launch, Apple Inc ranked among the top three on the list, with about 1 million DAU. In the future, the company will maintain the speed of updating data films every month to improve the user retention rate.
5. The situation of the "three swords": now the decline rate of the three swords has been stable. The second generation of Sword of Kings and Sword of Heaven is expected to be launched next year, with a great improvement in play and picture.
6. the launch of new games: in the second half of the year, the company will launch two masterpieces, the Legend of the White-haired Magic Girl and the Legend of Zhen Huan. In addition, this year, I signed the demon company's masterpiece IP "Young Bee", which is similar to Japanese comics and will be made into a beautiful girl mecha fighting game in the future. In addition, the IP company of Legend of Miyue (a TV series jointly produced by Letv and Sun Li) and Zhanji of Shushan (produced by Wu Qilong's team) will be developed in the future. The company will launch a total of 19 games in the second half of 2015 and 2016.
7. Views on IP strategy: in the current mobile game market, players pay more and more attention to IP. With the rapid development and popularity of the Internet, entertainment products become pan-entertainment. Now movies, animation and games are rising one after another and related to each other. The company hopes to grasp the upstream resources, and there will be good synergy at the IP level in the future. Nowadays, the cultural trend of "Internet +" makes games, movies and anime move towards IP as the center. In addition, the company is also actively deploying the Blue Port Film Industry, the company will enter the film market in the future, will focus on the IP strategy to the end.
8. The logic of the company's previous investment: Yongle ticketing is currently the second largest ticketing company for performances and events in China, and the purpose of the investment is to a large extent its Internet ability: users book a large number of tickets through the Internet. the commercial value generated by generating traffic. Xingmei Pictures, which the company invests in, hopes to try to cooperate with film companies. Taobou is a well-known trading platform for game accounts in China. Axe Technology is a hardware product that may make innovations in home digital entertainment.
9, summary and suggestions: we believe that the company's products "100, 000 cold jokes" due to the launch delay led to the first half of the performance did not meet the market expectations, the success of the future IP strategy will continue to follow. If the company enters the field of film and television investment, its performance will be more uncertain, so we suggest that we continue to observe.
