HONG KONG, Apr 13, 2022 - (ACN Newswire) - Despite regulation and a suspension of new game licenses in China, CMGE (0302.HK) grossed RMB3,957 million in 2021, representing a year-on-year increase of 3.6%, according to its 2021 annual earnings report. The company's gross profit margin increased to 37.2% in 2021 from 32.0% in 2020, while gross profit totaled RMB1,473 million, a year-on-year increase of 20.5%.
Jian Xiao, Executive Director, Chairman and CEO of CMGE, stated at the Performance Meeting that several games to be released in 2021 had been delayed due to the failure of achieving the game license as scheduled, as well as greater contributions to development and research, caused 2021 adjusted net margin to decline by 21.9%
With strong performance in 2020, CMGE's performance in 2021 is virtually superior to that of most peer companies.
01. The company's games have achieved international success with a year-on-year international game publishing revenue increasing by 7,260%, and another growth engine emerges.
CMGE's financial statements show that its profits are essentially sourced from developing and operating IP-based games, RMB905 million of which is sourced from the profits of its game development, representing a year-on-year increase of 23.9% and accounting for 22.9% of its annual business revenues, and RMB232 million of which is sourced from the profits of its IP licensing, doubled over the last year, representing a year-on-year increase of 106.9%, showing the abundant IP reserves and outstanding performance of its self-development strategy.
It's noteworthy that CMGE gained revenue of RMB459 million overseas, a year-on-year increase of 72 times. With this growth, its international revenue increased to 11.6% in 2021 from 0.2% in 2020, sharply representing the great progress from its overseas strategy of games.
According to an insider, it's inevitable for domestic game developers to make a breakthrough by surviving on international markets under the more serious regulation. Also, to survive on international markets, the company is facing challenges in all aspects such as the research and development of products, operation, marketing and organization. To survive on international markets has become a key indicator to measure whether a game developer is of competence.
At the Performance Meeting, Jian Xiao stated that CMGE, having committed to international game markets, has provided multiple games products in Hong Kong, Macao and Taiwan, Southeastern Asia, Europe and America and has created professional localization teams in products operation, marketing, user service and advertising. With the success of several products in practice, the international markets will be further developed, the revenue of which will also be increasing.
02. The company has laid a strong foundation for challenges with a year-on-year contribution increase of 48.9% in R&D for core competence of excellent self-developed products.
The research and development is a must for excellent products, and CMGE's financial statements shows that it has been committed to the research and development. As indicated by a set of data, CMGE has a R&D team of 624 professionals by the end of the period, representing a year-on-year increase of 30.0%; its contributions to the R&D are increased from RMB208.6 million in 2020 to RMB310.7 million in 2021, representing a year-on-year increase of 48.9% and accounting for 7.9% of the corporate revenue.
CMGE has also invested in great game developers to develop game business. According to the financial statements, CMGE has invested in over 20 game developers directly or by convertible bonds in recent years.
With its investment, merger and self-development, CMGE's R&D has become mature gradually with five major game types - numerical games, platform games, strategy games, E-sports games and card games, and several new R&D studios and subsidiaries have also been established.
In the long run, the enhanced R&D will lay a strong foundation for the continuous development of products for a game company.
Jiao Xiao believes that as the game industry has been more and more limited and regulated, the game companies must pay more attention to high-quality, multi-platform and long-cycle products and gain profits of one game from multiple platforms. Also, the companies need to attract more loyal customers and enhance user stickiness by the worldview and IP of games, social function and other factors.
Driven by technologies, the game developers should develop more quality products to meet new demands of gamers. The game "Sword and Fairy: World" self-developed by CMGE to be released is a model one.
"Sword and Fairy: World", based on the worldview and IP of "Sword and Fairy", is an immersive open-world RPG where gamers are provided with great freedom to make choices. The game is available on multiple devices including PC, console, mobile phone and VR. The game art meets the VR standard to offer the best immersive experience for gamers. CMGE expects that "Sword and Fairy: World" will be developed into a bestselling strategy game with an annual revenue of over RMB3,000 billion, a high profit ratio and a long life cycle.
03. The company expects a promising future as the returns of self-developed products in international markets will begin after significant games are released.
Next, CMGE is going to release a series of self-developed products and further promote its international markets strategy to earn more reputation among international gamers.
CMGE is scheduled to release several new games with license in the first half of 2022, including "A New Record of a Mortal's Journey to Immortality", "Ultraman: Assembly" and "All Star Fight" that were released this January.
In addition, CMGE is also looking forward to the license of several major new games including "Sword and Fairy: Wen Qing", "Rakshasa Street: Chosen One", "Cultivation Fantasy" and "Daily Life of Group Chat".
As for the expected time when the license will be granted, Jian Xiao holds the view that the reason why the authority has stopped granting game licenses is essentially related to the improvement and review of the game protection system for the minors. In the long run, the government will still support the healthy development of game industry.
In addition, the key product "Sword and Fairy: World" is about to undergo the first test in August 2022 and to be released around the middle of 2023. And the E-sports game "Code: Basketball 3V3" developed by Shanghai Zhoujing will be tested by the end of 2022 and released around the middle of 2023.
At the Performance Meeting, Jian Xiao stated that considering the status quo, the company's R&D will truly pay off in 2023 with a target that the revenue of independent R&D business accounts for 40% or even more of the total revenue in 2023.
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Copyright 2022 ACN Newswire. All rights reserved. www.acnnewswire.comDespite regulation and a suspension of new game licenses in China, CMGE (0302.HK) grossed RMB3,957 billion in 2021, representing a year-on-year increase of 3.6%, according to its 2021 annual earnings report.
HONG KONG, Apr 12, 2022 - (ACN Newswire) - Hong Kong Investor Relations Association (HKIRA) is pleased to announce that public nomination is now open for the HKIRA 8th IR Awards 2022 (the 'Awards'). This will be the eighth consecutive year of the Awards at which remarkable practices of good IR and corporate governance are recognized among Hong Kong listed companies.
Professor Louis Cheng, Dr. S H Ho Professor of Banking and Finance and the Director of Research Centre for ESG, The Hang Seng University of Hong Kong, Chairman of the Judging Panel (left) and Dr Eva Chan, Founding Chairman of HKIRA (right).
Dr Eva Chan, Founding Chairman of HKIRA, said, "It has been another challenging year for business operators in most industries. IR professionals' role is increasingly important in keeping investors and the public abreast of the latest update of listed companies and their industries. Under the new normal, new forms of communication channels are supported by advanced technologies, to facilitate instant and transparent exchange of information. We are glad that the IR community was able to turn challenges into opportunities and we look forward to recognizing more listed companies with best practices at this year's Awards."
Last year, 167 award entries were received from listed companies, over 890 eligible voters and over 360 voting institutions participated in the voting, casting a total of more than 7,900 votes. 47 winners from various categories were recognized at the Awards. Among the winners, China Resources Beer (Holdings) Company Limited (stock code: 00291), Fortune Real Estate Investment Trust (stock code: 00778), and Xtep International Holdings Limited (stock code: 01368) were awarded Overall Best IR Company by company size - Large Cap, Mid Cap, and Small Cap - respectively.
The HKIRA 8th IR Awards 2022 is once again honoured to have Professor Louis Cheng, Dr. S H Ho Professor of Banking and Finance and the Director of Research Centre for ESG at, The Hang Seng University of Hong Kong, as the Chairman of the Judging Panel. Being an advocate of IR best practice among Hong Kong listed companies, Professor Cheng has in recent years been researching on how ESG impacts investors' decisions. Observing its increasing importance, ESG-related awards have been added to the HKIRA IR Award categories since 2020. With ESG investing becoming increasingly mainstream in the professional investment community and ESG ratings often being used by investors, Professor Cheng has also been looking into the topic of score divergence (i.e. disagreement) among commercial ESG raters, and how such divergence affects or benefits investors.
Public nomination for the HKIRA 8th IR Awards 2022 is now open to Hong Kong-listed companies. Nominated individuals and companies will be placed on the online voting list upon confirmation of their participation. The investment community, including buy-side and sell-side analysts, and fund managers, are eligible to vote. Nominees with the highest votes (weighted) in each award category become the award winners. They then undergo a final assessment by the judging panel for the Most Progress in IR, the Overall Best IR Company Awards and the Grand ESG Award. Facilitating a fair and balanced evaluation, the judging panel comprises academics, representatives from professional associations and the investment community.
The HKIRA 8th IR Awards 2022 scheme has a total of 15 award categories honouring best IR practices of individuals and companies. Among these awards, 12 categories are open for nomination and voting, while the other 3 awards are selected by the judging panel. The award winners are to be announced at a ceremony to be held in Hong Kong in September 2022. For more information, please visit www.hkira.com/awards.
Strategic Public Relations Group is once again proud to be the Official Public Relations Partner and the Diamond Sponsor for the HKIRA IR Awards this year. Please find key dates relating to the Awards with its categories and criteria for selection listed in the Appendix.
About HKIRA Hong Kong Investor Relations Association (HKIRA) is a non-profit professional association comprising investor relations practitioners and corporate officers responsible for communication between corporate management and the investment community. HKIRA advocates the setting of international standards in IR education, advances the best IR practices and meets the professional development needs of those interested in pursuing the investor relations profession.
HKIRA is dedicated to advancing the practice of IR as well as the professional competency and status of its members. To date, HKIRA has over 1000 members most of whom are working for companies primarily listed on the Stock Exchange of Hong Kong. About 68% of the Hang Seng Index Constituent Stock companies are currently members of HKIRA. HKIRA's members are from a wide spectrum of professions including IR, finance, accounting, company secretarial to corporate investment and hold positions at different corporate levels, including top executives responsible for IR and management of listed companies. For more information about HKIRA details, please visit our website http://www.hkira.com.
About the IR Awards The HKIRA Investor Relations Awards (the "IR Awards") is an annual campaign that aims to encourage, recognize and reward the excellence in investor relations practices by individuals and companies listed in Hong Kong Stock Exchange. Since the launch in 2015, each year the Awards seeks out and highlights the incredible achievements of individuals and companies with high standards in investor relations through their role modelling to the investment community.
The Awards ceremony, consisting of a conference in the morning and presentation in the afternoon, is a spectacular gathering of IR specialists and industry professionals that applauds and publicizes the year's achievements in investor relations. For details of the Awards and online nominations, please visit http://www.hkira.com/awards.
Appendix Key Dates Nomination period: 12 April to 17 May Online voting period: 23 May to 29 June Judging Panel Meeting: July 2022 Award Presentation: September 2022
Award Categories Award Categories / Recognition / Selection Method Best IR Company / Company's Achievements / Open for nomination and online voting Best IR Team / Company's Achievements / Open for nomination and online voting Best ESG (E) / Company's Achievements / Open for nomination and online voting Best ESG (S) / Company's Achievements / Open for nomination and online voting Best ESG (G) / Company's Achievements / Open for nomination and online voting Best Investor Meeting / Company's Achievements / Open for nomination and online voting Best Investor Presentation Material / Company's Achievements / Open for nomination and online voting Best Annual Report / Company's Achievements / Open for nomination and online voting Best IR Company for an IPO* / Company's Achievements / Open for nomination and online voting Best IR by Chairman/CEO / Individual's Achievements / Open for nomination and online voting Best IR by CFO / Individual's Achievements / Open for nomination and online voting Best IRO (Investor Relations Officer) / Individual's Achievements / Open for nomination and online voting Most Progress in IR / Demonstration of the most progress in IR in the above areas during 2021 / Selected by Judging Panel Overall Best IR Company Awards / Outstanding and all-round excellence in the above areas / Selected by Judging Panel Grand ESG Award / Overall excellence in all the three areas across ESG / Selected by Judging Panel
* Companies which were listed on the Stock Exchange of Hong Kong in 2020 and 2021 are eligible to be nominated for this award. Remarks: All awards will be further categorised by company market capitalisation into Large Cap, Mid Cap, and Small Cap, except Best IR Company for an IPO and Most Progress in IR Awards.
Judging Panel (Arranged in alphabetical order of last name) Name Title Firms / Organizations Professor Louis Cheng (Chairman of Judging Panel) / Dr. S H Ho Professor of Banking and Finance, Director of the Research Centre for ESG, Director of the Research Institute for Business / The Hang Seng University of Hong Kong Mrs Amy Donati / Executive Director and Chief Executive Officer / EDICO Holdings Limited Ms Ashley Khoo, CFA, CPA / Past President and Board Director / CFA Society Hong Kong Mr Andrew Look / Independent Non-Executive Director / CITIC Resources Holdings Limited Ms Victoria Mio, CFA, FRM / Head of Equity Research, Asia Pacific / Fidelity International Dr Maurice Ngai / General Committee and the Chairman of Membership Services of the Sub-Committees / Chamber of Hong Kong Listed Companies Mr Wilfred Yiu / Managing Director and Co-Head of Markets / Hong Kong Exchanges and Clearing Limited
Copyright 2022 ACN Newswire. All rights reserved. www.acnnewswire.comHong Kong Investor Relations Association (HKIRA) is pleased to announce that public nomination is now open for the HKIRA 8th IR Awards 2022 (the 'Awards').
HONG KONG, Apr 7, 2022 - (ACN Newswire) - On 31 March 2022, Legend Capital's portfolio company Jiangsu Recbio Technology Co., Ltd. ("Recbio", stock code: 2179.HK), a leading novel vaccines company, went public on the Hong Kong Stock Exchange. The listing makes Recbio "the first HPV vaccine stock in Hong Kong" and "the first novel adjuvant vaccine stock in Hong Kong". Recbio is expected to inject new vitality into the capital market in Hong Kong.
Recbio is a novel vaccine company driven by independent novel adjuvant technology. It has built a comprehensive and high-valued vaccine portfolio consisting of 12 candidates, covering cervical cancer, COVID-19, adult tuberculosis, shingles, HFMD, influenza, etc. Recbio is primarily focused on the R&D of HPV vaccine candidates. Its core product REC603, a recombinant HPV 9-valent vaccine, is currently under phase III clinical trial, and is expected to become the first approved domestic HPV 9-valent vaccine in China. In addition, Recbio has also begun to deploy in the mRNA vaccine field and is currently developing the COVID-19 mRNA vaccine.
Recbio has constructed the three core technology platforms consisting of independent novel adjuvants, protein engineering and immunological evaluation. It is one of the few companies capable of independent development of novel adjuvants and the novel adjuvants it developed have been successfully applied in various innovative vaccines such as COVID-19 vaccines, HPV vaccines and shingles vaccines.
Legend Capital led Recbio's Series B financing in 2020, through a coordinated investment of the comprehensive growth fund and the healthcare fund and re-upped on its Series C financing in 2021, marking Recbio another successful case towards Legend Capital's multi-fund coordinated investment. As the major institutional investor to Recbio, Legend Capital provides Recbio with multi-faceted support involving corporate governance, business strategy, technical route, R&D resources, management improvement and financial support.
Dr. Liu Yong, the Founder, Chairman of the Board, and General Manager of Recbi, said, "We are much appreciated Legend Capital's long-term and firm support to Recbio. As the institutional investor with the largest shareholding in the company, Legend Capital's investment philosophy of 'Business First, People Crucial' is highly compatible with our corporate culture. Legend Capital has always supported our management team in major decision-making and continued to assist in the development, becoming one of the most trusted and respected investors of Recbio. The listing is just a new chapter of Recbio, and the management team hopes to work closely with all the investors represented by Legend Capital to write a new legend!"
Hank Zhou, the Co-Chief Investment Officer of Legend Capital, said: "Congratulations to Recbio and its team led by founder Dr. Liu Yong. Liu has been engaged in vaccine research and development for over two decades, with high academic status and extensive experience in the industry. Liu's team has been deeply involved in the field of vaccine research and development for many years. Its vaccine portfolio strategically aimed at major disease and the team is actively deploying large-scale production. We admire Liu's great enthusiasm for the vaccine industry and his strong sense of responsibility and commitment. Recbio is now the leading vaccine company in China. After the successful listing, we believe that Recbio will continue to make breakthroughs in its core field of new adjuvant and vaccines to benefit more patients."
Frank Hong, the Managing Director of Legend Capital, said: "After the outbreak of the pandemic, the vaccine industry has stepped into a high-speed development stage after years of accumulation on technology and talent pool. Recbio is one of the few vaccine companies with high-quality technology platforms, which can continuously produce high-quality vaccine products to meet unmet clinical needs. We are optimistic about Recbio's future of its core pipelines, including the HPV vaccine, recombinant shingles vaccine REC610 and COVID-19 vaccine. Advanced with its disruptive technology in the field of recombinant protein vaccines, Recbio is expected to be a company with strong competitiveness in the global market."
Legend Capital has long paid close attention to investments in the field of life sciences. In addition to Recbio, there are other portfolio companies listed on A shares or H shares, including Pharmaron Inc. (300759.SZ; 03759.HK), KingMed Diagnostics (603882.SH), WuXi AppTec(603259.SH; 02359.HK), WuXi Biologics (02269.HK), Innovent Biologics (01801.HK), Berry Genomics (000710.SZ), Harbour BioMed (02142.HK), New Horizon Health (06606.HK), Chemclin Diagnostics (688468.SH), etc.
Copyright 2022 ACN Newswire. All rights reserved. www.acnnewswire.comOn 31 March 2022, Legend Capital's portfolio company Jiangsu Recbio Technology Co., Ltd. ("Recbio", stock code: 2179.HK), a leading novel vaccines company, went public on the Hong Kong Stock Exchange.
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