The first company proposed quarterly dividends, and Sanqi Mutual Entertainment plans to pay dividends four times a year

Recently, Sanqi Mutual Entertainment said that it plans to increase the frequency of dividends from the original semi-annual to once a quarter. Sanqi Mutual Entertainment became the first A-share listed company to propose a continuous quarterly dividend plan.

Source: Photo.com

Quarterly dividends are proposed

On April 19, 2024, Sanqi Mutual Entertainment Network Technology Group Co., Ltd. (stock abbreviation: Sanqi Mutual Entertainment; stock code: 002555. SZ) reviewed and approved the "2023 Profit Distribution Plan".

The company's net profit attributable to the parent company in 2023 will be 2.659 billion yuan, of which the parent company will achieve a net profit of 1.706 billion yuan, withdraw 0 yuan from the statutory surplus reserve fund for the current year, and the undistributed profit at the beginning of the period will be 5.128 billion yuan, the actual distribution of the 2022 profit will be 996 million yuan in the reporting period, the actual distribution of the semi-annual profit in 2023 will be 992 million yuan, and the actual profit available for distribution to shareholders this time will be 4.847 billion yuan.

After deliberation, the company plans to distribute a cash dividend of 3.7 yuan (tax included) to all shareholders for every 10 shares in 2023, and the remaining undistributed profits will be carried forward to the next year.

It is worth noting that the company said that in order to further increase the frequency of dividends, it will increase investor returns. The company intends to distribute dividends in the first quarter, half year and third quarter of 2024 based on undistributed profits and current results, with a total cash dividend amount of no more than RMB 500 million (tax included) and a total cash dividend amount of no more than RMB 1.5 billion (tax included).

In addition, the company released a shareholder dividend return plan for the next three years (2024-2026), pointing out that the company's profit distribution shall not exceed the scope of cumulative distributable profits, and the company's cumulative profits distributed in cash in the last three years shall not be less than 30% of the annual average distributable profits realized in the last three years.

It is expected that the operating income of new products will increase

According to the company's first-quarter performance forecast, the company expects that in the first quarter of 2024, the net profit attributable to the parent company will be 600 million yuan to 650 million yuan, a year-on-year decrease of 16.08% to 22.54%, and the net profit will be 590 million yuan to 640 million yuan, a year-on-year decrease of 4.54% to 11.99%.

However, the company's operating income has increased due to a number of new products launched in 2023, and the company expects operating income to increase by more than 25% year-on-year from January to March 2024. As new products have entered a period of stable growth, the net profit attributable to the parent company from January to March 2024 is expected to increase by 30%-40% month-on-month.

In addition, the company currently has more than 40 self-developed or agent high-quality mobile games, including "Codename Douluo MMO", "Time Grocery Store", "Son-in-law", "Mecha Domination" and other high-quality products, covering MMORPG, SLG, cards, simulation management, RPG, casual puzzle and many other types, and the diversified product layout continues to deepen.

At the same time, the company adheres to content breakthroughs and long-term operations, enhances the vitality of many operating products such as "Douluo Continent: Soul Master Showdown", "Puzzles &Survival" and "Call Me the Big Shopkeeper", and improves the growth and stability of the company's business performance.

The company said that it will continue to adhere to the strategy of "high-quality, diversified and globalized", further improve the quality of games, broaden the game category, increase the market share of the company's products by improving the level of R&D and distribution and operation, provide players with more high-quality games, promote the sound and steady development of the business, and create higher value for shareholders.

The company's overseas business continues to develop. In the past five years, the company's overseas operating income has increased from 1.049 billion yuan in 2019 to 5.807 billion yuan in 2023. According to Sensor Tower data, the company has been shortlisted as one of the top three in the 2023 China Mobile Game Publishers' Overseas Revenue List, and has formed a product matrix based on MMORPG, SLG, cards, and simulation management in the global market, and has launched a number of benchmark products for going overseas.

According to the annual report, in 2023, the company will achieve overseas operating income of 5.807 billion yuan, and a number of benchmark products such as "Puzzles &Survival", "Call Me Big Shopkeeper", "Song of Cloud City", "Douluo Continent: Soul Master Showdown" and "Ant Legion" have performed steadily. "Puzzles & Survival" has achieved a breakthrough in the innovative integration of game categories, game themes and regional cultures, and once again set a new record for the peak monthly turnover of products in April 2023, with a cumulative turnover of more than 10 billion yuan from its launch in 2020 to February 2024.

In addition, Sanqi Mutual Entertainment proposed the "AI three-step" strategy. The first step is to release the AI application first, and gradually integrate it into each business link. The second step is to realize tooling and modularization based on the accumulation in the early stage, and build a more automated and intelligent game industrialization pipeline. The third step is to explore more possibilities for AI to enrich gameplay.

There have been multiple foreign investments

In September 2023, Anhui Taiyun Investment Management Co., Ltd. (hereinafter referred to as Anhui Taiyun), a wholly-owned subsidiary of the company, plans to increase its capital to Jiaxing Beisheng Hengwo Equity Investment Partnership (Limited Partnership) (hereinafter referred to as Jiaxing Beisheng Hengwo Fund).

Jiaxing Beisheng Hengwo Fund tentatively set a total subscription scale of 34 million yuan, and Anhui Taiyun intends to increase its capital by no more than 12 million yuan with its own funds as a limited partner.

After the capital increase of Jiaxing Beisheng Hengwo Fund, Jiaxing Beisheng Hengwo Fund will directly or indirectly invest in the equity of Beijing Zhipu Huazhang Technology Co., Ltd. (hereinafter referred to as Beijing Zhipu Huazhang), which is an artificial intelligence company committed to creating a new generation of cognitive intelligence general model, the main business includes large model services, knowledge intelligence, etc.

In November 2023, the company's wholly-owned subsidiaries Sanqi Mutual Entertainment Venture Capital Co., Ltd. (hereinafter referred to as Sanqi Mutual Entertainment Venture Capital) and Anhui Taiyun plan to jointly initiate the establishment of Guangzhou Nansha Sanqi Mutual Entertainment Chuangxin Investment Center Partnership (Limited Partnership) (hereinafter referred to as Nansha Sanqi Venture Capital Fund) with Guangzhou Nansha District Science and Industry Venture Capital Fund Co., Ltd. (hereinafter referred to as Nansha Science and Technology Innovation Fund).

The tentative target total subscription scale of Nansha Sanqi Venture Capital Fund is 200 million yuan, and the company's wholly-owned subsidiary, Sanqi Mutual Entertainment Venture Capital, will not contribute more than 2 million yuan, and Anhui Taiyun will contribute no more than 100 million yuan.

According to the company, after the establishment of Nansha Sanqi Venture Capital Fund, it will mainly invest in cutting-edge science and technology fields such as new generation information technology, digital economy, artificial intelligence, new materials, and advanced manufacturing, which will focus on upstream and downstream industries related to entertainment technology and game entertainment.

2024年1月，三七互娱子公司37StarseekCo.,Limited（以下简称：37Starseek）拟参与投资Shixiang Global Flagship Fund L.P.（以下简称：Shixiang Global Flagship）。

The actual total size of Shixiang Global Flagship is expected to be no more than US$80 million, and the company's subsidiary, 37Starseek, intends to contribute no more than US$5 million to subscribe for shares.

After the investment in Shixiang Global Flagship, Shixiang Global Flagship will invest in high-quality enterprises in cutting-edge technology, software-as-a-service (SaaS) and other pan-technology fields, so as to synergize the development of its main business, achieve the company's strategic layout in the field of cutting-edge technology, and achieve capital appreciation. Shixiang Global Advisors Limited, the manager of Shixiang Global Flagship, focuses on the business data and transaction opportunities of leading technology companies, and has investment experience in cutting-edge technology, software-as-a-service (SaaS) and other pan-technology sectors.

In April 2024, Anhui Taiyun plans to invest in Guangdong Qianxing Zhiqing Venture Capital Partnership (Limited Partnership) (hereinafter referred to as Qianxing Zhiqing Fund), and the manager of Qianxing Zhiqing Fund is Qianxing Capital. The tentative target total subscription scale of Qianxing Zhiqing Fund is 31 million yuan, and Anhui Taiyun plans to contribute 30 million yuan.

After this investment in Qianxing Zhiqing Fund, Qianxing Zhiqing Fund will directly or indirectly invest in Guangzhou Lijing Innovation Technology Co., Ltd. (hereinafter referred to as Lijing Innovation). Guangzhou Lijing Innovation Technology Co., Ltd. is a comprehensive company focusing on the R&D and production of cameras.