A few days ago, the Game Working Committee of the China Music and Digital Association released the "2021 China Game Industry Report", which shows that in 2021, the scale of China's game users will reach 666 million, and the actual sales revenue of the game market will reach 296.513 billion yuan.
In this 100 billion market size, in addition to the big and comprehensive game industry overlord like Tencent, there are also mobile games (0302. HK) is a game ecosystem company with strong IP operation capabilities.
According to Dataanalysys (Analysys think tank), as of December 31, 2020, CMG is a Chinese game group company with the largest number of IP reserves (a company with games as its main business) and a Chinese game company with the most mobile IP games. The nomination list of the 2021 Top Ten Games Annual List recently released by the Game Working Committee of the China Music and Digital Association won the blockbuster awards for "The Legend of the Paladin Sword Seven" and "Douluo Continent - The Return of the Fighting God" developed by Cmengga.
From the perspective of business performance, the performance of CMG is not timid. Since its successful listing in Hong Kong at the end of October 2019, cmotcom's performance has been stable and improving, and its profitability has gradually strengthened. According to the company's 2021 interim results report, as of June 30, 2021, the company's total H1 revenue in 2021 reached RMB2.18 billion, an increase of 27.2% year-on-year, and the net profit attributable to the owners of the parent company was 393.5 million, an increase of 36.8% year-on-year.
Although the performance is impressive, Hong Kong stocks are a liquid market with concentrated liquidity. By the end of 2021, there were 2,585 Hong Kong listed companies, of which the top 5% of the companies with market capitalization accounted for 67% of the total market turnover, while the top 10% of the market capitalization companies accounted for 82% of the total market share*.
In a market with extremely concentrated liquidity, how to effectively convey their performance highlights to the capital market and obtain the continuous attention of investors is the focus of listed companies.
And this is inseparable from good investor relations management.
On January 13, futu held the "Second Inventory of Listed Companies in the Bull Circle", and CMG was ranked in the list of "Best Investor Relations Listed Companies" with its positive actions and good effects in IR, which can be described as a bright spot in terms of INVESTOR Relations management.
By the end of 2021, CME Enterprise has more than 70,000 fans on the Futu platform, actively published hundreds of pieces of content, and more than 50,000 niu friends have added CMG to the self-selected list, and the individual stock comment area is actively interactive. The attention of investors received by CMG is at the leading level in the game industry.
Recently, Cao Junjie, Assistant General Manager of CMG Brand Center, visited Futu's "IR Face-to-Face" to discuss cmedge's best practices in investor relations management.
Individual investors are beginning to play an increasingly important role
In the view of Cao Junjie, assistant general manager of cmedge brand center, in order to make investors recognize the value of the company, it is necessary to actively carry out communication and exchange activities with investors, establish a communication mechanism with investors on major issues on an equal and sincere basis, improve the understanding and recognition of investors and potential investors for the company, and then realize the improvement of the company's market value.
In the past, the object of investor relations management of listed companies was generally institutional investors, but in the past two years, individual investors are playing an increasingly important role in the capital market. The platform where individual investors gathered, represented by Futu, often ranked in the top 1 of net stock purchases. The potential of individual investors in the capital markets should not be underestimated.
However, it will be more difficult for individual investors to communicate with institutional investors.
Cao Junjie said that professional investors or institutional investors who are familiar with the industry business will have a special investment research team to more accurately find the company's positioning and business development direction, and even predict the future development trend of the company through the data model established by themselves. However, the number of small and medium-sized investors is large, and different people have different understandings of the company and the industry, and their investment preferences are also different, and they may judge more based on the disclosure of the company's financial information and the influence of others. At this time, how to accurately and effectively pass the company to these investors is the focus of IR.
In view of this, china mobile games have mainly made breakthroughs in two aspects.
The first is to quickly adapt to the online investor communication method and generate in-depth cooperation with Futu.
The cooperation between CME and Futu began with the IPO, and Futu, as a member of the underwriting group, helped CME to successfully raise shares. During the IPO period, CME has achieved very good results, with the public offering part being oversubscribed by 544 times, and more than 16% of individual investors have purchased shares in CME on the Futu platform, which is also a benchmark achievement of Futu in that year.
Sin Handi, vice chairman of the company, said in the relevant information of Futu's 2020 Q1 financial report: "Futu is a very effective partner during the IPO of China Mobile Games, the whole team showed professionalism, intention, efficiency and rapid response to demand, timely and accurate transmission of the investment value of China Mobile Games to investors, and obtained more than 2 billion Hong Kong dollars of subscription performance on the Futu platform, exceeding the company's expectations." After the listing, the traders on the Futu platform are very active, and CMG has been transferred to the Hang Seng Index and included in the Hong Kong Stock Connect as a biddable mainland fund. ”
"The successful cooperation between the two sides has brought a very sufficient trust to each other and laid a good foundation for the follow-up long-term cooperation." With the continuous expansion of Futu's business, the two sides have made a lot of run-ins and attempts in investor relationship management. Cao Junjie said.
At the same time, due to the impact of the epidemic, it is becoming more and more important for cmYG to judge through online communication and management. According to the tracking, observation and statistics of China Mobile Games, investors' communication needs for online conference calls, roadshows, etc. are constantly increasing. Therefore, it can be said that the epidemic has triggered such a trend - to adopt more effective online means to communicate with investors through online and fast channels.
As a leading Internet brokerage with 17 million registered users, Futu is an excellent partner for CMG. Since then, CMG has begun to cooperate closely with Futu, and activities such as live performance meetings, roadshow conference calls and face-to-face executives have been held online in full swing, so as to efficiently disseminate financial highlights and strengthen the reputation of the capital market.
The second is the chairman's full attention to individual investors.
"Executive Face-to-Face" is a live broadcast column launched by Futu platform, which invites executives of listed companies to carry out live roadshows in Futu live broadcast rooms, communicates face-to-face with various investors and analysts, helps companies enhance exposure and liquidity, provides investors with high-quality investment information, and helps build efficient and smooth communication channels between listed companies and investors.
Xiao Jian, chairman of CMG, learned the importance of this column to promote the two-way information interaction between the company and investors, and has personally participated in Futu's "executive face-to-face" for many times, and he has appeared on camera to interpret the company's financial reports, tell the business layout, and depict future prospects. All live streams have received high views and interactive comments, and have received cattle-friendly reviews. At the same time, Shen Xianzhuo, the company's director of investor relations, has also repeatedly conducted live communication with important investors on the platform on the "Privilege Investor Roadshow Call".
On November 12, 2021, Chairman Xiao Jian once again announced the layout and opportunities of the "XianjianYuan Universe" in the form of live broadcast on the Futu platform. From the aspects of company strategy, business progress, future planning, etc., for the first time, the company's management's detailed understanding of the metacosm and the layout based on it are systematically expounded.
According to the relevant planning, the "Xianjian Meta-Universe" will follow the three-step plan of digital twin, virtual native and virtual reality, until the goal of blurring and blending the boundaries between the virtual world and the real world is achieved. The goal of the mobile game is to build "The Legend of the Paladin Sword: World" into the first National Wind Culture Meta-universe game with open world elements in China, and it will also be the first National Wind Culture Meta-universe game in China to provide VR in-depth experience and allow players to use VR equipment to truly incarnate virtual characters.
The data shows that half a month after the chairman interpreted the layout of the meta-universe, the number of users on the Futu platform increased by 32.5% compared with before the announcement.
The brand competition in the capital market is no less than the competition between products
Cao Junjie once lamented in an interview: "The brand competition in the capital market is no less than the competition between products."
Especially for the Hong Kong stock market, which has a very high liquidity concentration, only by thinking more from the perspective of investors, respecting their core concerns, and maintaining multiple channels and forms of continuous communication can we form a long-term, stable and friendly relationship with investors.
Cao Junjie concluded at the end of the interview: "Investor management is a long-term behavior of enterprises, with the evolution of corporate development strategy, it is necessary to continuously introduce the company's development and operation status and prospects to existing investors and potential investors, obtain wide recognition from investors on schedule, attract more potential investors, and maximize shareholder value."
Futu is an important channel for us to gather investors, which is of great significance for us to effectively communicate with investors or potential investors. ”
*The data in this article is from Wind
Company Introduction
CMG is a leading global IP game ecosystem company. With IP as the core, the company provides high-quality IP games for global players through independent research and development and joint research and development, and creates a highly competitive IP game ecosystem. Deeply cultivate its own IP operations such as "The Legend of Paladin" and "Monopoly", continue to create high-quality content and interactive experiences for fans, and create world-class IP!
China Mobile Games, which landed on the NASDAQ on September 25, 2012, is the first mobile game company in China to land on the U.S. securities market, was privatized in August 2015 and listed on the Main Board of the Hong Kong Stock Exchange on October 31, 2019 (stock code: 0302. HK）。
Column introduction
"IR Face-to-Face" is a content feature planned by Futu Enterprise Service, hoping that through interviews with senior executives such as IRD of well-known companies, excellent investor communication practice experience will be seen, and at the same time, it will also provide a window for the company to let investors better understand the intrinsic value of the company.