Entering 2024, the gaming industry's trend of shifting from quantity competition to quality competition becomes even more apparent. It provides great long-term imagination space for companies that truly possess strong self-research capabilities, can continuously promote the launch of high-quality new games, and conduct long-term operations. How to obtain a deeper understanding of listed companies and accurately capture investment opportunities in the future gaming industry?

On June 27, 2024, the "GLH Mid-term Strategy Summit 2024" hosted by GLH was held in Shenzhen. Many high-quality executives of listed companies came to communicate offline with investors. On the day of the event, Wang Yilan, the investor relations manager of Green Porcelain Games (06633.HK), a high-quality content game company with integrated research and development and global layout, attended the event and had in-depth exchanges with investors. GLH also organized the speeches of this roadshow of listed companies to share with you.

In the past year, the business development momentum of Green Porcelain Games has been strong and its growth potential has been fully reflected. What is the value of Green Porcelain Games? Investors may find the answer in the article.

Looking back: the launch of multiple new games and global layout drives high-quality growth.

Since its establishment, Green Porcelain Games has been committed to providing excellent mobile game experiences to global players. Currently, the company's multiple game launches have achieved significant results and won extensive market acclaim.

Specifically, in terms of games, in addition to the long-term operation of flagship game "The Strongest Snail", the company has also launched multiple new games such as "Sword Asking About Love" and "Cardcaptor Sakura: Memory Keys", successfully attracting wide market attention and player interest. These new game launches not only enrich the company's product line, but also bring significant promotion to the company's revenue.

In addition, through the deep implementation of globalization strategy and diversified market layout, Green Porcelain Games has further improved its brand influence and competitiveness. Recently, the company has successfully launched and promoted iconic games such as "The Strongest Snail" and "Cardcaptor Sakura: Memory Keys" in regions such as Hong Kong, Macau, Taiwan, Japan, Southeast Asia, North America, and Australia. These games have not only topped the iOS free game rankings and bestsellers lists in multiple markets, but also achieved long-term operations and sustained profitability, significantly enhancing the company's international influence and diversifying its sources of income, demonstrating its strong competitiveness and brand appeal in overseas markets.

Image source: corporate roadshow materials

Driven by its strong creative and global distribution capabilities, Green Porcelain Games' financial data has many highlights. The 2023 financial report shows that the monthly active users and revenue of Green Porcelain Games maintain steady growth. The company's average monthly active users (MAU) reached 2.48 million, a year-on-year increase of 55%, and the average monthly revenue per paying user (ARPPU) reached RMB 302, reflecting the company's significant achievements in improving user stickiness and profitability. Correspondingly, the company's overall performance also shows high-quality growth. In 2023, its revenue reached RMB 906 million, a year-on-year increase of 43.7%, and its gross profit reached RMB 558 million.

Image source: corporate roadshow materials

Overall, on the basis of stable fundamentals, Green Porcelain Games has sufficient endogenous growth momentum, and the gains brought by overseas expansion are driving the company into the fast lane of growth.

Looking to the future: abundant game reserves and promising development potential.

Looking to the future, Green Porcelain Games is experiencing accelerated growth in both short-term and long-term dimensions.

At the current development stage, Green Porcelain Games still has abundant game reserves, and as the commercial value of these game reserves continues to be realized, it will also provide a continuous driving force for the company's growth. For example, the key product "Project E" will further expand its testing scale in 2024; multiple authorized projects introduced will be successively launched overseas, such as the release of "Pig Gym" in Japan and the release of "Project L" in South Korea; multiple games have also obtained version numbers and will be launched successively in the future.

From RPG to SLG to idle games and so on, the richness of Green Porcelain Games' game reserves in various types of games reflects the company's deep exploration and expansion in different game fields. In addition, Green Porcelain Games plans to launch multiple new games in the next few years. The diversity and innovation of these games will further enrich the company's products and services and meet the needs of different players.

From this perspective, thanks to its continuous innovation, Green Porcelain Games' development potential is promising. With the continued development of the gaming industry and the deep implementation of the company's strategy, Green Porcelain Games is expected to achieve greater market breakthroughs and business growth in the future.

Q&ALink

Q1:Seeing the financial data, the company's overall performance in 2023 is still under pressure. What measures are in place to ensure continuous and stable business development?

A1:Several block orders​ of the company's main games, such as 'The Strongest Snail', were released in North America in August of last year, and 'Cardcaptor Sakura: Memory Key' was only released in Mainland China, Hong Kong, and Taiwan in Q4 of last year. During the early stages of these games' launch, the company needed to concentrate on marketing and publicity, resulting in some marketing expenditure in the second half of last year, which put pressure on the company's initial performance. Looking ahead, these games have now entered their recycling period, and the company has several new games that are ready to be released domestically and abroad, which are expected to boost performance this year.

Q2:AI is also widely used in games. I would like to ask which aspects the company will apply AI to?

A3:The company's application of AI is reflected in multiple aspects. One aspect is in the field of art. AI can improve the efficiency of sketching, thereby accelerating the iteration speed of art. In addition, the company will also apply AI in the planning aspect. For example, game planning will use AI for brainstorming, which can improve the overall output efficiency of the game. AI also has considerable advantages in localization translation and customer service. The most important thing in the game industry is to produce good content. AI, as an effective tool, can help us produce good content more efficiently.

Q4:Considering the 'Management Measures for Online Games (Draft for Soliciting Comments)' that was issued in December last year, I would like to know how the company views this policy. If this policy is actually implemented, how much impact will it have on the company's revenue in terms of the chaos of user acquisition, excessive promotions, and irrational user recharging during game publicity?

A4:This draft is helpful for the standardization and healthy development of the game industry. If this policy is actually implemented, it will not have a significant impact on the company's business. After all, the quality of the game itself is the guarantee of the company's game revenue, rather than relying on methods such as monthly or annual cards to promote recharging. Qingci Games mainly focuses on high-quality content, and gains player recognition through high-quality games. The company supports national policies to promote the healthy development of the industry, and will continue to work hard to create more high-quality games.