Incidents:
The company signed a strategic cooperation agreement with Shanghai Film, and the two sides plan to cooperate in various fields such as IP cooperation, joint investment, film and television, digital assets, and games.
Comment:
Multi-party strategic cooperation with Shanghai Film will help Kaiying enhance market competitiveness. Specific cooperation includes: 1) IP co-creation and development. Based on the IP resources of Shanghai films, to promote commercial cooperation between the two parties in various fields through licensing and joint name, Kaiying will develop, distribute and operate Shanghai film IP games; 2) joint investment; 3) establish joint ventures and cooperation in various fields. The two sides will cooperate in games, film, television, culture and creativity, and jointly build the Yangtze River Delta Film and Television Center, metaverse application scenarios, jointly develop high-quality film and television projects, jointly explore and develop high-quality film and television projects, and jointly explore and develop cooperation such as short dramas, interactive dramas, VR games, and screenplay killing. Combining cinema and games, innovative collaboration on IP content and game methods is carried out through local cultural tourism projects. The cooperation period is 3 years. If there are no objections after the cooperation expires, the two parties should sign a new strategic cooperation agreement.
Actively lay out applet games and overseas games to seize the industry's dividend period. The company's applet game business layout was relatively early. After “Battle of Angels” and “The New Legend of the Dragon” went live in 2022, they all launched applet versions. After the launch of the “Legend of Sword and Fairy: A New Beginning” applet version in the second half of 2023, it remained stable in the top ten WeChat Mini Program Game Bestsellers and Popularity Lists; it won the 10th Game Industry Gold Award for Outstanding Product of 2023. “Monster League”, which was newly released in 2024, entered the top ten best-selling applet games.
We have plenty of products in stock. Self-developed products in the reserve include, but are not limited to: “The Continent of Doulo: The Legend of Fighting Evil”, “Code Name: Tomb Raider”, “Nazarek: Rise”, and “About My Reincarnation as a Slime:
“New World”, “Three Kingdoms: The Return of the World”, “Code Name: Nobunaga”, “Code Name: DR”, “Baigong Ling”, “BLEACH: Thousand Year Blood Battle”, and “Altman” are officially licensed 3D action games in development for the global market. In addition, there are many game products in stock, such as “Legend of Dragon Dragon”, “Legend of Liangshan Mountain”, “Eternity: A Teenager Chasing Dreams”, “Journey to a Hidden Mountain Residence”, and “Mountain and Sea Floating Dreams”. In terms of agency products, the company expects to release “Taishang Titian Volume”, “Wacky Chicken”, “Awakening of Heroes”, and “Code Name: MYX” in the future.
Risk warning: New game launches fall short of expectations, rising purchase costs, R&D progress falling short of expected risks, etc.