Forgame Announces 2016 Annual Results
Make Forgame Great Again
Make Forgame Great Again
Publish Date:2017-03-28 source:Forgame
(Hong Kong, 29 March 2017) – Forgame Holdings Limited ("Forgame" or the "Group") (stock code: 484), a leading developer and publisher of mobile games and webgames in the PRC, today announced its annual results for the year ended 31 December 2016. Over the past year, the Group conducted a thorough internal review and held high-level discussions with the objective of devising strategies that set a future business direction for the Group to produce a new, stable and scalable income source.
Since early 2016, the Group is evolving from a webgames business to a mobile games business, and is extending its geographical reach in order to expand its revenue sources. Revenue contributions from mobile games increased from 61% in 2015 to 64% in 2016, while overseas revenue contributions rose from 11% to 13%. Among the 21 games launched in 2016, approximately 90% were mobile games. One of the webgames, namely "Liberators", unveiled via Facebook across multiple overseas markets including the US and Europe was recognized as one of "Facebook's 2016 Best Web Games".
During the year, the Group has identified that fintech will be one of the next fastest growing and highly profitable markets and entered into an investment agreement with Yinker Inc.[1] (Or "INK"), one of the top PRC internet financial services providers, in the form of an RMB300 million convertible bonds. INK offered its financial services products via the popular Jianlicai (简理财) app, which is widely recognized as a professional and safe financing solutions platform. INK has also built an effective network to attract quality borrowers to generate real-estate backed collateralized loans. INK was able to grow its transaction volume and revenue to RMB44.7 billion and RMB300 million in 2016 respectively. Specifically, Jianlicai (简理财), contributed RMB29 billion of transaction volume in 2016, which is 6 times of that in 2015.
Mr. Dongfeng Wang, Chairman and Chief Executive Officer of Forgame, said, "The year 2016 was challenging but we actively explored new opportunities that went beyond the gaming space. Leveraging our core competency of understanding the fast changing PRC consumption preference and identifying the next high-growth and high-margin technology industry, we identified the fintech industry as one of the next fastest growing and highly profitable markets in China."
"We will be actively seeking ways to enhance our presence in this burgeoning industry. Towards this objective, The Group is very excited about INK and the management continues to monitor its performance. Besides, we have successfully obtained the highly valued and sought after license from the Jiangxi provincial government that enables Forgame to conduct internet finance business in the PRC. This marks a significant milestone for the Group as the license opens up business and partnership opportunities which will expedite its development in the fintech industry."
About Forgame Holdings Limited (stock code: 484)
Established in 2009 and listed on the Hong Kong Stock Exchange on 3 October 2013, Forgame Holdings Limited is a leading company of mobile games and webgames in China. Since its inception, Forgame has delivered hundreds of games to the China and overseas markets. Its game publishing platform 91wan has attracted over 200 million users cumulatively.
In December 2016, the Group prepared for the commencement of Internet Finance business by obtaining a license from the government to carry out internet micro-lending business in the PRC.
Safe Harbor Statements
This press release contains forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, Forgame's limited operating history, its ability to develop and operate new games that are commercially successful, the growth of the online/mobile game market and the continuing market acceptance of its games and in-game items in China and elsewhere, its ability to protect intellectual property rights, its ability to respond to competitive pressure, its ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Forgame does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Since early 2016, the Group is evolving from a webgames business to a mobile games business, and is extending its geographical reach in order to expand its revenue sources. Revenue contributions from mobile games increased from 61% in 2015 to 64% in 2016, while overseas revenue contributions rose from 11% to 13%. Among the 21 games launched in 2016, approximately 90% were mobile games. One of the webgames, namely "Liberators", unveiled via Facebook across multiple overseas markets including the US and Europe was recognized as one of "Facebook's 2016 Best Web Games".
During the year, the Group has identified that fintech will be one of the next fastest growing and highly profitable markets and entered into an investment agreement with Yinker Inc.[1] (Or "INK"), one of the top PRC internet financial services providers, in the form of an RMB300 million convertible bonds. INK offered its financial services products via the popular Jianlicai (简理财) app, which is widely recognized as a professional and safe financing solutions platform. INK has also built an effective network to attract quality borrowers to generate real-estate backed collateralized loans. INK was able to grow its transaction volume and revenue to RMB44.7 billion and RMB300 million in 2016 respectively. Specifically, Jianlicai (简理财), contributed RMB29 billion of transaction volume in 2016, which is 6 times of that in 2015.
Mr. Dongfeng Wang, Chairman and Chief Executive Officer of Forgame, said, "The year 2016 was challenging but we actively explored new opportunities that went beyond the gaming space. Leveraging our core competency of understanding the fast changing PRC consumption preference and identifying the next high-growth and high-margin technology industry, we identified the fintech industry as one of the next fastest growing and highly profitable markets in China."
"We will be actively seeking ways to enhance our presence in this burgeoning industry. Towards this objective, The Group is very excited about INK and the management continues to monitor its performance. Besides, we have successfully obtained the highly valued and sought after license from the Jiangxi provincial government that enables Forgame to conduct internet finance business in the PRC. This marks a significant milestone for the Group as the license opens up business and partnership opportunities which will expedite its development in the fintech industry."
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About Forgame Holdings Limited (stock code: 484)
Established in 2009 and listed on the Hong Kong Stock Exchange on 3 October 2013, Forgame Holdings Limited is a leading company of mobile games and webgames in China. Since its inception, Forgame has delivered hundreds of games to the China and overseas markets. Its game publishing platform 91wan has attracted over 200 million users cumulatively.
In December 2016, the Group prepared for the commencement of Internet Finance business by obtaining a license from the government to carry out internet micro-lending business in the PRC.
Safe Harbor Statements
This press release contains forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, Forgame's limited operating history, its ability to develop and operate new games that are commercially successful, the growth of the online/mobile game market and the continuing market acceptance of its games and in-game items in China and elsewhere, its ability to protect intellectual property rights, its ability to respond to competitive pressure, its ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Forgame does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
[1] Yinker Inc. (also known as INK Inc.) is based in Beijing and primarily provides an online credit marketplace in the PRC. Yinker Group's platform provides borrowers with various financing solution products, and at the same time provides private lenders with a number of products including housing loans, automobile loans, and consumer loans.