The strategy of "four horizontal and one vertical"

Zhongqingbao (300052), founded in 2003, has strong technical accumulation and clear understanding of mobile Internet and games. In the second half of 12 years, the company reformulated its strategic plan-"four horizontal and one vertical" strategy: PC games, page games, mobile games, mobile Internet "four horizontal" and overseas "one vertical".

In the field of PC-end games, the company focuses on the long life cycle, game quality problems and fixed user habits brought about by the product form. PC-end games can bring sustained and stable revenue and performance growth for the company. In the field of page games, the company pays attention to high flow. China News will see that the page game data is good. These two pieces are the basis of the company's current performance and are expected to maintain an annual growth rate of about 30%. In the field of mobile games, the company pays more attention to its upward explosive power. From the characteristics of mobile games on the market at present, the periodicity of mobile games is not clear. In the field of mobile Internet, to establish a social circle, do not pay attention to profitability in the short term, but to retain users to support the building of mobile Internet services. In overseas markets, the company will fully distribute PC games, page games and mobile games, and bring good overseas products to China at the same time. At present, overseas countries are located in North America, Brazil, Colombia, Russia, Taiwan, Thailand, Vietnam, United Arab Emirates, Singapore, Malaysia, Japan and South Korea.

Perfect the industrial chain and create the game ecological circle

In the layout of the mobile Internet industry chain, the company considers three dimensions: (1) the composition of the user ecosystem (Tencent and non-Tencent); (2) the type of game products (heavy and mild) (3) Distribution platform and channel attributes, in which channel attributes mainly include: 1) Mobile Internet attributes, compared with PC games and page games channels in the past, the current mobile game channels can contact users at the first time, and can timely and accurately understand the customer situation and demand 2} operator attributes, the three major communication operators play an important role in mobile games channels; 3} hardware attributes, bind users through hardware and content. 4} system properties, Android, IOS.

The company strives to improve the CP system, improve product categories, increase quantity, improve the probability of boutique games, and strive to reduce the adverse impact of strong channels on the company in the future. The company has made two mergers and acquisitions before, involving four companies, all of which are part of the game ecosystem.

Tencent is one of the shareholders in the acquisition of a 51 per cent stake in Shenzhen Sumo, which has only provided game products for the Tencent platform. I have a deep understanding of Tencent platform. This acquisition is mainly aimed at Tencent biosphere, creating light games. The acquisition of Shanghai Meifeng focuses on non-Tencent biosphere, emphasizing heavy RPG game products. Beijing Zhongkeao is the first CP with a monthly flow of more than 10 million in the three major operator systems. By the end of 2012, Zhongkeao has reached three major operator users. The three major operators and 360 are its main channels, focusing on light leisure games and positioning third-and fourth-tier markets. Jiangsu Mingtong is a page game development company. Through page game intermodal transportation, the company has developed a complete set of user algorithms, which will be applied to the mobile Internet. Through accurate marketing, build a voice account system and distribution system for hardware manufacturers to help hardware manufacturers increase traffic revenue. In the future, in the process of improving the industrial chain, it is unlikely that the domestic market will acquire CP, while the issuance and operation platform will become the focus. In foreign countries, we focus on regional main distribution channels, or global large-scale CP.

Performance expectations:

Over the past 13 years, the company achieved an operating income of 324 million yuan, an increase of 75% over the same period last year, and a net profit of 51 million yuan belonging to the parent company, an increase of 205.7% over the same period last year. In the first quarter of 14 years, the operating income exceeded 100 million yuan, an increase of 132.4 percent over the same period last year, and the net profit attributed to the parent company was 7.5 million, an increase of 94.8 percent over the same period last year.

Last year, 38 million of profits came from PC games, and this year is expected to increase by 30% to 50 million yuan. The profit of preparing for the exam this year is 220 million yuan. In the second half of the year, 19 mobile games will be launched, with a running target of 650 million yuan, with a net profit of 130 million yuan at a net interest rate of 20%. Page games are expected to contribute by the end of the year. According to an optimistic estimate, the profit of preparing for the examination for the whole year is about 400 million yuan. We believe that the timing of the newly acquired companies is still uncertain, and the flow of mobile game products usually requires a period of climb, so it is difficult to cash in the exam preparation profits during the year. But it can effectively ensure that the company will continue to grow rapidly in the next few years. The company's share price rose sharply last year, partly reflecting the market's optimistic expectations of its rapid growth. The market needs some time to digest the increase and wait for the performance to be clear.