Lock in mobile game development Fuchun shares plan to raise an additional capital of 700 million yuan

Electric Eel Express Article/Gao Wei

Fuchun Shares (300299) announced at noon on October 19 that the company received a notice from the Shenzhen Stock Exchange, which checked the application materials submitted by the company for the issuance of shares to specific targets, and decided to accept the application documents.

According to the observation of "Electric Eel Express", Fuchun shares intend to issue no more than 207368845 shares (that is, not more than 30% of the total share capital before the issuance), and the total amount of funds raised will exceed 700 million yuan.

It is planned to raise an additional capital of 700 million yuan

According to the disclosure, the number of shares issued by Fuchun Shares to a specific target is determined by dividing the total amount of funds raised by the issue price, and the number of shares issued in this issue does not exceed 207368845 shares (that is, not more than 30% of the total share capital before the issuance). The issuer of shares to a specific target is not more than 35 specific investors who meet the conditions stipulated by the CSRC, including securities investment fund management companies, securities companies, trust companies, financial companies, insurance institutional investors, qualified foreign institutional investors, and other legal persons, natural persons or other qualified investors who meet the requirements of the CSRC.

Fuchun shares said that the shares subscribed by the issuer shall not be transferred within six months from the date of the end of the issuance.

It is observed that the total amount of funds raised by Fuchun Shares' issuance to specific targets shall not exceed RMB702.6006 million (including issuance expenses), and the net proceeds after deducting the issuance expenses will be used for the following projects: First, the game development project, the total investment of the project is 663.585 million yuan, and the amount of the raised funds to be used is 372.3255 million yuan; The second is the game IP operation project, which has a total investment of 330.2752 million yuan and intends to use the raised funds to invest 330.2752 million yuan. That is, the total investment amount of the above two projects reached 993.8602 million yuan, and the total amount of funds raised was 702.6006 million yuan.

The company said that before the funds raised from the issuance to specific targets are in place, Fuchun shares will be invested in advance with self-raised funds according to the actual situation of the progress of the investment projects of the raised funds, and will be replaced in accordance with the relevant procedures after the raised funds are in place. If the actual amount of funds raised (after deducting the issuance fee) is less than the amount of funds to be invested in the above projects, within the scope of the final determination of the investment projects of the raised funds, the company will adjust and finally decide on the specific investment projects, priorities and specific investment amounts of each project according to the actual amount of funds raised, according to the priority of the project, and the insufficient part of the funds raised will be solved by the company.

Mobile games are highly competitive

According to the "Electric Eel Express" observation, on September 23, some investors asked Fuchun shares on the investor interactive platform: Recently, the meta-universe game has swept the world, and domestic multi-game companies have planned the layout, and the company's wholly-owned subsidiary Shanghai Mengjun, as the leader of IP games, has a plan to lay out the meta-universe? Fuchun shares said that the metacosm is a huge concept, covering information technology, internet, artificial intelligence and VR, AR, MR and other virtual reality technologies, is still in the initial stage of industry development. The company does not have related game products.

It is understood that in recent years, with the continuous expansion of the scale of mobile netizen users in China and the continuous improvement of the richness of mobile game products, China's mobile game industry has developed rapidly. In the mobile game industry, IP users have become an important driver of the development of the mobile IP game market. Fuchun's 700 million yuan fundraising focuses on game development and game IP operation, of which, in terms of game development, including the company's proposed purchase of office properties, equipment and related game IP authorization, and carries out the development and operation of four games, including "Wonderland Ro: The Birth of a New Generation" (regional version), "MMO mobile game", "sandbox mobile game" and "card mobile game". The main body and location of the project implementation are Shanghai Junmeng, a wholly-owned subsidiary of the issuer.

The company has hinted at ten major risks, including the risk of intensifying competition in the industry and the risk of changes in the policy of the game industry. In recent years, with the continuous complexity of the external macro environment and the competitive environment of the industry, the challenges faced by Fuchun Co., Ltd. have become increasingly severe. In the communications industry, although the official launch of large-scale commercial use of 5G has led to a new wave of development in the information technology industry, at the same time, operators continue to carry out speed-up and fee reduction work, which reduces the cost of network construction, forcing industrial chain companies to face operating pressures such as declining revenue growth and declining gross profit margins; China's game market concentration is relatively high, Tencent Games, NetEase Games, 37 Interactive Entertainment, Century Huatong and other companies basically have strong R & D and operational capabilities, game product types are relatively rich, occupy the main market share of the domestic game market, and the funds are relatively sufficient, in the first echelon of the industry, domestic competition is increasingly fierce.

Fuchun shares said that the implementation of the issuance of fundraising projects to specific targets will not change the company's existing main business, will improve, upgrade and optimize the company's existing products, and expand the company's product line, which will help consolidate, upgrade and improve the existing business and enhance the company's overall competitiveness. The impact of this issuance on the company's financial situation After the funds raised from this issuance of shares are in place, the company's total assets and net assets will increase, the capital strength and capital structure will be optimized, and the asset-liability ratio and financial risks will be reduced accordingly. With the gradual implementation of the investment project of the raised funds, the company's profitability and competitiveness will be comprehensively improved.

This article is from Electric Eel Express