The company has seen its revenue grow through in-house developed mobile games, distribution and overseas operations.
Chinese game developer CMGE (0302:HK) (Chinese: 中手游) reported revenue of 3.957 billion CNY (580 million USD) in 2021, with overseas sales increasing 72 times, according to its audited annual report filed on May 15.
The company also reported an adjusted net profit of CNY 630 million, down 20.8% due to the failure of some products to obtain licenses as expected and increased R&D investment.
The company’s revenue comes mainly from self-developed mobile games, distribution and overseas business. Specifically, the overseas business achieved revenue of CNY 459 million, accounting for 11.6% of the company’s total revenue last year.
In terms of internally developed mobile games, its revenue increased by 23.9% to CNY 905 million. The company continued to double its R&D efforts and spent CNY 310.7 million to invest in over 20 game development companies in 2021.
Nevertheless, game distribution, which accounts for a large portion of the company’s total revenue, fell 5.3% to CNY 2.817 billion. The decrease can be attributed to the suspension of licensing in the second half of last year.
Despite excellent performance in several business areas, the company still faces threats from competitors such as Tencent (0700:HK), NetEase (9999:HK), and miHoYo (Chinese: 米哈游). Moreover, China’s mobile game industry has seen stagnant growth over the past year. The number of mobile game players only increased by 0.23% in 2021 compared to 4.84% in 2020. At the same time, the revenue growth rate increased from 32.61% in 2020 to 7, 57% in 2021.
CMGE stock closed down 0.51% at 1.94 HKD ($0.25) apiece today, with a market capitalization of 5.37 billion HKD.