Listed companies that once frantically cross-border mergers and acquisitions are also frantically selling game assets.
Editor’s note: This article is from the WeChat public account “Mobile games that matter” (ID: sykong_com), author: Rust.
As the year approaches, a lot of A-share game listed companies that are losing money or even on the verge of delisting have begun to “become demon”: From Yuanli shares, Fukong Interactive, Chinese Online to Dadongnan, some listed companies are accelerating to escape the game The industry, relying on the sale of game business assets to adjust profits and even save their lives are not a few.
For a while, the game industry seemed to be a “scourge” that everyone couldn’t avoid. However, four years ago, the popularity of the “online game concept” was not inferior to today’s new energy vehicles / blockchain / cloud games.
Under the 2015 A-share “Crazy Bull” environment, the valuation of online game concept companies once climbed 131.06 times, while the GEM valuation was only 81.28 times. The premium level is staggering; coupled with off-market allocation The sizzling of investment funds (a large influx of incremental funds) and the encouragement of mergers and acquisitions and reorganization by the regulatory authorities (supported by national policies), the valuation of game companies naturally skyrocketed.
According to statistics, among the 74 listed A-share game companies, there were 16 companies with the highest price-earnings ratio (TTM) of more than a thousand times in 2015, and a total of 42 companies between 100 times and 1,000 times. Among them, the highest price-earnings ratio of Sanqi Mutual Entertainment once exceeded 4000 times, and the price-earnings ratio of Aegras was as high as 1,635 times. Century Huatong, Perfect World and Zhongqingbao also had price-earnings ratios of 120 times.
However, with the end of the three-year performance period and the suspension of the 2018 edition, those demon monsters wearing high-valued coats have revealed prototypes and exploded into fireworks along with goodwill mines. Listed companies that once frantically cross-border mergers and acquisitions are also frantically selling game assets.
One, Chinese online discounted 1.4 billion yuan in blood loss to sell Chenke, only contributed 3.53 million yuan net profit during the year
The strong desire for survival of listed companies has prompted Chinese online to cry “cut meat”.
On December 11th, an online announcement in Chinese stated that it intends to sell 100% of Shanghai Chenzhike’s shares to Ganggang at a price of 324 million yuan. However, two years ago, Chinese Online spent more than 1.7 billion yuan to capture 100% of Chenzhike’s equity.
If you observe the operating status of Chenzhike in the past two years, you will find that the company’s 2018 annual revenue and net loss were 194 million yuan and 83 million yuan respectively; as of October 31, 2019, Chenzhike It plummeted to 12.395 million yuan, the loss margin narrowed to 63 million yuan, and a total loss of 146 million yuan in the past two years. In the face of Chen Zhike’s unhelpful performance, Chinese Online can only help to accrue asset impairment reserves of 1.443 billion yuan in 2018.
Even if this transaction is carried out as scheduled in 2019, it will only contribute 3.53 million yuan in profits to Chinese Online. Compared with the company’s black hole that lost 192 million yuan in the third quarter of the year, it is a sloppy salary.
Second, the establishment of 5 sales and 4 sales, Yuanli shares sold in bulk by the Shenzhen Stock Exchange inquiry
In contrast, Yuanli shares, which set up and sold game subsidiaries on a large scale, are quite a charm for wholesalers.
It is understood that since the establishment of Guangzhou Force in June 2018, Yuanli has invested in the establishment of Xiamen Huijiesite in August 2018, October 2018, May 2019, and July 2019, respectively. Guangzhou Origin, Xiamen Force, Guangzhou Xinyuan. In less than a year, Yuanli Co., Ltd. established five game subsidiaries in one breath.
Why did you expect that from December 2018 to October 2019, Yuanli Co., Ltd. sold Guangzhou Chuangyu Entertainment, Guangzhou Icebird, Guangzhou Chuangxia, Guangzhou Xinyuan and other companies in order.
Somehow it gives people a feeling of spring sowing and autumn harvesting.
Of course, Yuanli’s famous work is the sale of 100% equity of Guangzhou Yuanli for 45 million yuan. According to the announcement data, as of the end of October 2019, Guangzhou Yuanli’s net assets were 2.5048 million yuan. In the past two years, the company had accumulated losses of 37.862 million yuan and its operating cash flow continued to decline.
Yuanli shares are planned to be sold at a premium of 17 times, that is, 45 million yuan. What’s more, the operation is that Yuanli shares can take the opportunity to escape the pit of goodwill accrual impairment, with a value of 1.1 buried in it. 100 million yuan of goodwill mines.
Such a bizarre asset premium and a clear profit adjustment are simply an insult to the personalities of the bidder and the Shenzhen Stock Exchange.
Fujian Interactive intends to sell Jagex at a price of 3.657 billion yuan, and it is worth more than 8 billion in 60 lawsuits.
There are many companies selling subsidiaries to survive, but Fukong Interactive is probably one of the most distressed.
As of 2018, Fukong Interactive had a huge loss of 5.509 billion yuan. At the end of September 2019, the company’s net assets were -4.2 billion yuan, which was already insolvent. At the same time, as of September 30, 2019, Fukong Interactive involved a total of 60 lawsuits involving an amount of approximately 8.121 billion yuan.
There are serious losses inside and lawsuits outside. In an anxiety, Fukong Interactive announced in June this year that it plans to sell its gaming subsidiary Jagex to repay the debt for 3.657 billion yuan. It is worth noting that Jagex contributed more than 99% of revenue to Fukong Interactive in mid-2018, which is the only hematopoietic machine of the listed company