Direct attack century century Huatong reply to Shenzhen Stock Exchange: grand game 31 billion reasonable valuation


Direct attack century century Huatong reply to Shenzhen Stock Exchange: grand game 31 billion reasonable valuation

On the evening of November 7, Sina Technological News announced that Century Huatong, which has been suspended for more than four months, officially resumed trading today. In response to the inquiry letter issued by Shenzhen Stock Exchange yesterday, Century Huatong said that there was no circumvention of the recognition criteria of reorganization and listing, the 31 billion valuation of the grand game acquired and the rationality of performance commitments in the next three years.

In its reply to Shenzhen Stock Exchange, Century Huatong listed in detail the evaluation criteria for the value of grand games, and evaluated the operation status of grand games from six aspects and 14 specific indicators.

The announcement shows that Shanda Game currently has net book assets of more than 10 billion yuan, the number of R&D personnel and R&D capabilities are higher than those of general game companies; the cumulative service is more than 2.1 billion registered users, with a perfect business layout of end-to-end, hand-to-page and page-to-page tours, and reserves of top IP resources and human resources.

In view of the fact that the game industry is a light asset industry, and the scale of assets and net assets is lower than that of traditional industrial enterprises, the value-added rate of evaluation is generally higher in the acquisition cases of Listed Companies in the same industry. After comparing the M&A cases of listed companies that have been completed in A-share market horizontally, the value of Shengda Game 31 billion yuan increased by 1960.7 billion yuan compared with the book value of net assets, the value-added rate was 172.10%, and the value-added level was lower than the average level of the industry.

In its reply, Century Huatong disclosed that the combined gross profit rates of Shengda Game in 2016, 2017 and January-April 2018 were 81.38%, 74.08% and 78.01%, respectively. Compared with other game companies, the net profit margin of Sanqi Mutual Entertainment in the first half of 2018 was 23.04%, and that of Perfect World was 21.8%. The net profit margin of Shanda Game was 50.23% from January to April of 2018.

In addition, the announcement also disclosed that up to now, Shanda Game has involved more than 50 million sums or 29 lawsuits and arbitrations related to the operation of the game, of which 19 are the plaintiffs.

Previously, Sina Technologies reported that between February 2017 and April 2018, 3995 games suspected of infringing on Legend of Hot Blood were found in Shengda Game. At present, 933 games have been taken off the shelves.

For the "legendary IP product revenue share decline", the announcement said that this does not mean that legendary IP product revenue decline, but other IP products revenue significantly increased. (Han Dapeng)


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