Feiyu Technology Announces 2015 Annual Results

" />

English

简体中文

繁體中文

한국어

日本語

Thursday, 24 March 2016, 19:52 HKT/SGT

Licensing Income Increased by Approximately 91.2%;
Six Games Will be Launched in 2016

HONG KONG, Mar 24, 2016 - (ACN Newswire) - Feiyu Technology International Company Ltd. ("Feiyu Technology" or the "Company"; together with its subsidiaries, the "Group", stock code: 1022), a reputable developer and operator of mobile games and web games, today announced its consolidated annual results for the year ended 31 December 2015 (the "year under review").

During the year under review, the Group's total revenue decreased by approximately 5.0% to approximately RMB322.1 million. Revenue generated from game operation decreased slightly by approximately 4.6% to approximately RMB302.3 million. The decrease was primarily due to Shen Xian Dao and Jiong Xi You reaching late stage of their life cycle during the year under review. Licensing income increased by approximately 91.2% to approximately RMB5.2 million, primarily due to the new contract of Quan Min Kuai Da with licensing fee clauses entered in the first quarter of 2015 and the revenue derived from the sale of Carrot Fantasy book series, which were published in late January 2015. The contribution to total revenue of the Group from mobile games increased from approximately 77.9% for 2014 to approximately 82.7% for 2015, as a result of continuous focus on mobile games in 2015.Gross profit margin for 2015 was 83.1%, as compared with 87.5% for 2014. The Board proposes a final dividend of HK3.0 cents per ordinary Share for the year ended 31 December 2015 (the year ended 31 December 2014: Nil).

Mr. Yao Jianjun, Founder, Chairman and Chief Executive Officer of Feiyu Technology said, "In 2015, we continued to have a stable growth in our mobile game business, which contributed 88.1% of total game operation revenue, compared with 83.4% in 2014. Meanwhile, to further enhance our Research and Development ("R&D") capability, we have successfully launched our Chengdu R&D center in 2015 following the abundant supply of online game R&D talents and sound online game environment in Chengdu. In addition, we have set up a merchandise licensing operation team focusing on managing the Company's intellectual properties ("IPs") through licensing them to top tier companies worldwide for their use on non-game products and an overseas game publishing and operating team dedicated to exporting Chinese games to global market, in an effort to increase our exposure to international audience and drive the growth of our international business."

In 2015, the Group successfully released the traditional Chinese version of San Guo Zhi Ren in Taiwan in the first half of 2015 and its Korean version in late December 2015 respectively. Meanwhile, the Group also launched three new mobile casual games titled Divas Hit the Road, Plump Fish and Battery Run and an associated company of the Group launched a new mobile RPG game named Beauty Warriors. In 2015, the Group received broad industry recognition, including the "China's Top 10 Game Companies", "China's Top 10 Game Developers" and "China's Top 10 New Game Enterprises". One of the hit games, San Guo Zhi Ren received the award of "Top 10 Most Popular Mobile Games for 2015", and the newly launched mobile casual game titled Plump Fish was awarded the "Top 10 Most Popular Single Player Mobile Games for 2015".

Taking full advantage of the great popularity and unique design of the Group's games, Feiyu Technology began to roll out cross-boundary activities based on its IPs in 2015 in an effort to seize the trend of cross-boundary integration in the pan-entertainment era. The Group licensed China Children's Publishing House for publishing Carrot Fantasy books based on the cute cartoon characters, interesting tower-defense scenarios and lovely background graphics of the Carrot Fantasy game series. Thanks to the solid brand awareness of the games, the books received great popularity since publication and were on the Jinghua Times bestseller list and ranked No.1 in the children's list. In 2015, the Group also worked with NICI, the Germany-based globally-active producer of high-quality brand name goods, to design, produce and sell the plush toy of Carrot Fantasy. In addition, Feiyu Technology licensed the IP of Carrot Fantasy to Maped, a world leader in school and office supplies based in France, for its application on stationery. The Group is pioneering a way in China to originate IP from games and cultivate an IP ecosystem exporting its IP to third parties and extending its application from online games to consumer products, which is building a non-linear growth model for the Group.

As at 31 December 2015, the Group's RPG mobile games and web games, had approximately 205.5 million cumulative registered users, with approximately 165.6 million users for web games and approximately 39.9 million users for mobile games; and the Group's casual games had approximately 300.4 million cumulative activated downloads. For the month of December 2015, the Group's RPG mobile games and web games had 1.5 million monthly active users (MAUs) in aggregate, with approximately 0.9 million MAUs for mobile games and approximately 0.6 million MAUs for web games; and the Group's casual games had approximately 10.6 million MAUs. Notably, the Group's average monthly paying users for mobile RPG games has increased from approximately 176,000 in 2014 to approximately 208,000 in 2015. This was mainly driven by the launch of San Guo Zhi Ren on Tencent platforms in the second half of 2014, which continued to be a smash hit in 2015 and the launch of the traditional Chinese version of San Guo Zhi Ren titled Quan Min Kuai Da in Taiwan in the first half of 2015.

On 25 June 2015, Feiyu Technology Hong Kong Limited ("Feiyu Hong Kong"), a direct wholly-owned subsidiary of the Company, and Fine Point Development Limited ("Fine Point") entered into a share transfer agreement pursuant to which Feiyu Hong Kong has conditionally agreed to purchase, and Fine Point has conditionally agreed to sell, 100% equity interest in Jiaxi Global Limited which indirectly held 25% of the registered capital of each of Xiamen Yidou and Xiamen Zhangxin (the "Acquisition"). The consideration of the Acquisition shall be satisfied by allotting and issuing a maximum of 118,000,000 consideration shares to Fine Point (or its nominee). Upon completion of the Acquisition on 26 August 2015, the Group indirectly holds 100% equity interests in both Xiamen Yidou and Xiamen Zhangxin.

In 2016, the Group will continue to make great efforts to extend the existing games' life cycle and improve customer life time value through enhancing user experience and introducing more value-added features. At the same time, Feiyu Technology will continue to penetrate into new overseas markets through its overseas game publishing team and top tier local game distribution platforms. The Group is planning to release more language versions for each of San Guo Zhi Ren and Beauty Warriors in selected Asian countries, as well as different language versions for Carrot Fantasy III globally. In order to further optimize its games and cooperate more closely with the publishers, the Group has rescheduled the release of its three key games, namely Carrot Fantasy III from late 2015 to the first half of 2016, and Shen Xian Dao II and Jiong Xi You II to the second half of 2016, respectively. The Group believes that the rescheduling would be worth for the Group as time invested in optimizing the new games would bring better game performance in the future. In the first quarter of 2016, the Group entered into an exclusive license agreement with Tencent for distributing and publishing Plump Fish in Mainland China on Tencent platforms for single-player games, including but not limited to Weixin and mobile QQ. In March 2016, the Group established the cooperation with Qihoo 360 to distribute and publish Shen Xian Dao II in Mainland China. In addition, the Group successfully launched the Vietnamese version of San Guo Zhi Ren in Vietnam on the same month. The Group will also continue to broaden its product portfolio by introducing new mobile games. Including the aforementioned three key games, the Group plans to launch six new games in 2016, which comprise five mobile RPG games and one mobile casual game.

Looking ahead, Mr. Yao said, "As a game development company, the Group will continue to focus on developing, marketing and operating mobile and web games globally. In order to reduce the investment risk in design, production and distribution of visual products such as cartoons, films, TV dramas and online dramas etc., the Group will roll out cross-boundary activities in the pan-entertainment era based on its IPs effectively through licensing arrangements. The licensing arrangements will not only bring royalties as a new source of revenue for the Group, but also assist in promoting and enhancing the value of the Group's IPs.. The Board and management of the Company are confident about its development in 2016 and will endeavor to increase its market share to achieve sustainable growth and maximize returns for the shareholders."

Topic: Press release summary Sectors: Daily Finance, IT Individual, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network