HONG KONG--(BUSINESS WIRE)--Xingye Copper International Group Limited (“Xingye Copper” or the “Company” and its subsidiaries, collectively the “Group”, HKEx: 505), one of the leading high precision producers of copper plates and strips in the PRC, announced that, the Group has completed the acquisition of the entire issued share capital in Funnytime Limited, which controls Hefei Zhangyue Network Technology Co., Ltd. (“Hefei Zhangyue”), an internet and mobile gaming products development company in the PRC, through a series of contractual arrangements, at the consideration of approximately HK$186 million. There are performance targets attached to the acquisition agreement, in which Funnytime Limited shall achieve the performance target in terms of consolidated net income, which are approximately RMB 18 million in 2016, RMB 22 million in 2017 and RMB 30 million in 2018 respectively.
According to a research conducted by Analysys Mason, the total revenue of China’s web gaming market has reached RMB 237.6 million in 2015, representing an year-on-year increase of 6.8%, accounting for 17% of the online gaming market in China. Following its rapid growth phase, the web gaming industry in the PRC has entered into a mature stage with stable growth, with the games gravitating towards higher quality.
Despite the decelerating economic growth in the PRC, the buying power of the general public has been growing. Supported by the “Internet Plus” strategy proposed by the Chinese government, Xingye Copper expects that there are still opportunities in the related aspects. In order to grasp the potential growing spaces in the online gaming industry, Xingye Copper intends to diversify from its existing core business into the internet and mobile gaming industry with vast growth potentials. The acquisition of Hefei Zhangyue is one step closer to achieving this business goal.
Hefei Zhangyue and its subsidiary are principally engaged in the development, distribution and operation of internet and mobile gaming products. The founders and key employees are experienced game producers, which have developed and operated many popular internet web games, including《逍遙三國志》、《絕地戰爭》、《海神》and《熱血江湖傳》(“Scions of Fate”) etc. Scions of Fate has experienced promising growth in many key indicators of the game since its initial launch on the Tencent online web game platform in October 2015. As of the end of April 2016, the aggregated total registered players of Scions of Fate was over 13 million. The maximum number of players online simultaneously has reached 50,000. The recharge value of the game for the first quarter of 2016 was approximately RMB52.2 million. Hefei Zhangyue is expected to launch a self-developed game《眾神大陸》(“the Gods”) in 2016 Q3. It is a SRPG web game with the theme of Western mythology and is targeted to launch globally. It has won reputation in the PRC market during its initial game test. The mobile version will also be launched simultaneously.
The board believes that the extensive experience and technique from Hefei Zhangyue would be the foundation for Xingye Copper to enter the internet and mobile gaming industry. Comparing with other industries, the initial investment of the internet and mobile gaming industry is relatively large. As a listed company in Hong Kong, our diversified financing channels in the capital market will favour in investing new gaming products.
Mr. Ren Hao, the key founder and the chief executive officer of Hefei Zhangyue has over 10 years experiences in the industry. He was a former senior management officer at Shen Zhen ZQ Game Company Limited, an A share listed internet gaming company (SZ.300052). The key employees of the Hefei Zhangyue were formed by experienced game producers at ZQ Game and core R&D technicians at ShenZhen Seventh Road Technology Company Limited. Mr. Ren and the key employees have successfully developed many popular internet web games. They would be retained for an initial term of 5 years.
About Xingye Copper International Group Limited
Xingye Copper International Group Limited (HKEx: 0505) is one of the leading high precision producers of copper plates and strips in the PRC. The Group mainly engaged in manufacturing and sales of high precision copper plates and strips, trading of raw materials, provision of processing services. It has been proactively looking for potential acquisition opportunities in the internet and mobile gaming industry.