The main sports game, the annual revenue exceeds 400 million yuan, Wangchen Technology plans to go to Hong Kong for IPO


Following Celadon Digital, another game company on the Hong Kong Stock Exchange submitted an application for listing.

On June 30, Wangchen Technology Holdings Co., Ltd. (hereinafter referred to as: Wangchen Technology) submitted a listing application to the main board of the Hong Kong Stock Exchange, and UOB Kayxian was the sole sponsor.

Wangchen Technology was established in December 2013. It is a domestic mobile game developer and operator whose business focuses on football sports games. In terms of revenue, Wangchen Technology ranks second in the Chinese mobile sports simulation game market with a market share of approximately 16.2%, and ranks third in the Chinese online sports game market with a market share of approximately 5.6%.

The prospectus shows that Wangchen Technology has developed and operated a variety of sports mobile game products, among which “Football Master”, “Championship Super League OL”, “NBA Basketball Master”, “Best 11 Players-Champions Club” contributed most income.

In 2020, the product revenue of “NBA Basketball Master” is 216 million yuan, accounting for 53.5% of the total revenue, and the product revenue of “Football Master” is 145 million yuan, accounting for 35.9%. In addition, Wangchen Technology launched a new product “Best Eleven-Champions Club” in the fourth quarter of 2020, with revenue of 41.36 million yuan, accounting for 10%. Due to the deferred nature of revenue from new games, this game may become the main force in its future revenue.

From the perspective of product release time, Wangchen Technology’s mobile game products generally have a longer life cycle. “Football Master” was released in 2014, and “NBA Basketball Master” was launched on the market in 2017. The current game operation is still very good.

Among them, the main product “NBA Basketball Master” has a total of 12.765 million registered users in 2020, and a monthly income of 403 yuan. The new product “Best 11 Players-Champions Club” has a total of 889,000 registered users in 2020, with an average revenue of 259 yuan per paying user.

In addition to the existing products, Wangchen Technology also revealed in the prospectus that it has 4 new product reserves, of which “MLB Baseball Master” and “Operation Football” will be launched in the first quarter of 2020, and another “NBA Operational Basketball” Launched in the second half of 2023, the remaining NFL Football Masters will be launched in the second quarter of 2024.

In terms of finance, Wangchen Technology’s revenue is also quite stable. The prospectus shows that the company’s revenue in 2018, 2019 and 2020 will be 341 million yuan, 378.6 million yuan and 404.7 million yuan (RMB, the same below) , The compound annual growth rate from 2018 to 2020 is 8.9%. In the same year, net profits were respectively 35.1 million yuan, 45.7 million yuan and 40.7 million yuan, and the compound annual growth rate from 2018 to 2020 was 7.7%.

In the subdivision of the game industry, sports games are not an easy field to break. It can be seen that Wangchen Technology, which has been working in this field for a long time, has also established its own barriers to competition and has rich experience in product development and operation. . Judging from the overall development situation, the prospects are promising, waiting for its application status and listing performance.

Source: Game Top

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