Zhitong Finance APP learned that according to the disclosure of the Hong Kong Stock Exchange on March 21, Wangchen Technology Holdings Co., Ltd. submitted a listing application to the main board of the Hong Kong Stock Exchange, and Dahua Jixian was the sole sponsor. It is worth noting that the company submitted a listing application to the main board of the Hong Kong Stock Exchange on June 30 last year, and the application is now invalid.
The company is a developer, publisher and operator of mobile sports games in China, with a focus on sports simulation games. In 2021, the Company ranked second in China's mobile sports game market by revenue from mobile sports games, with a market share of about 7.9%, and in the same year, the Company also ranked second in China's mobile sports simulation game market by revenue from mobile sports simulation games, with a market share of about 12.4%.
The Company's business model is based on the development, launch, distribution, operation and monetization of games. In terms of development, in addition to "Champion Super League OL" developed with a third-party game publisher and "Love! Idols are developed in a consignment basis with third parties, and all of the company's games are developed in-house.
The company developed and operated three mobile sports games and became the backbone of the business. In July 2014, the company launched its first flagship mobile sports management simulation game "Football Master" and accumulated a user base. With the successful experience of "Football Master", the company developed and launched its second mobile sports management simulation game "NBA Basketball Master" in September 2017. The company's third mobile sports management simulation game, "Best 11 People – Champions Club", was launched in April 2020 and received intellectual property licenses from sports leagues, sports associations and sports clubs, attracting the attention of football fans around the world. The Company expects the remaining life cycles of Soccer Masters, NBA Basketball Masters and Best 11 Players – Champions Club to be 28 months, 66 months and 97 months, respectively.
The company's competitive advantages include: mobile sports game developers and operators in China focusing on sports simulation games; the company has established important strategic partnerships with intellectual property rights holders (including well-known sports alliances, sports associations and sports clubs) to produce engaging game content; and has strong R&D and comprehensive data analysis capabilities to produce attractive mobile sports games and promote users to play games.
Financially, during the past performance period (three years ended 2019-2021), the majority of the Company's revenue came from the launch of its own mobile sports games in China and overseas markets. All of the company's games are launched in the form of free-to-play games, and the revenue comes from monetizing users buying virtual items in the game. For the three years ended December 31, 2019, 2020 and December 31, 2021, the Company recorded steady growth, generating revenues of approximately RMB378.6 million (RMB), RMB404.7 million and RMB460 million, respectively, with a CAGR of approximately 10.2% from 2019 to 2021 and net profit of RMB45.68 million, RMB40.726 million and RMB39.39 million, respectively.