Forgame Announces FY2014 Annual Results, Business Restructuring Proceeds Smoothly, Achieved Outstanding Performance from Mobile Games

Publish Date:2015-03-26 source:Forgame

(Hong Kong, 26 March 2015) – Forgame Holdings Limited (“Forgame” or the “Group”) (stock code: 484), a leading developer and publisher of webgames and mobile games in China, today announced its annual results for the year ended 31 December 2014. During the year, the Group has proactively restructured its business and optimized the business development strategy with the aim to lay down a strong foundation for its transformation into a major mobile gaming company. The Group has achieved categorical success by increasing its total revenue contribution provided by mobile games from 5% in the first half of 2013 to 35% in the second half of 2014. Also, the Group’s net loss reported for the second half of 2014 has narrowed from RMB21.8 million in the first half of 2014 to RMB17.0 million.
The year of 2014 was a transitional year for the group transforming into a major mobile gaming company. Throughout the year, the Group has expanded its mobile games operations and enhanced the quality of its webgames by investing additional development time and resources, as well as making strategic adjustments to 91wan.
The Group has launched and operated a total of 12 mobile games in 2014, and as at 31 December 2014, the Group had 13 mobile games in operation. The popularity of “Boonie Bears: Forest Defense (熊出沒之森林保衛戰)” and “Boonie Bears: Homeland Defense (熊出沒之保衛家園),” two casual games developed based on the popular television series “Boonie Bears (熊出沒)” in China, continued to rise and the initial results have been encouraging. Another successful title was “Wu Di Huan Ling (無敵喚靈),” a mobile role-playing game (“RPG”) adapted from a Qidian online literature with Angelababy as the game’s spokesperson, ranked No.1 and No.3 on the iOS top paid app charts and the iOS top free game charts respectively, with monthly gross billings of the game exceeding RMB8 million.
Mr. Dongfeng Wang, Chairman and Chief Executive Officer of Forgame, said, “The year 2014 was a formative and transitional year for Forgame. The Group has launched the mobile games “Boonie Bears (熊出沒)” and “Wu Di Huan Ling (無敵喚靈)” and has generated encouraging results, which has helped to earn the market recognition. The Group has and will continue to closely monitor its cost structure and streamline its overheads to increase overall efficiency and operating leverage and achieve progress towards becoming a leading mobile gaming company in China.”
In the first two months of 2015, the Group has already launched two games and targets to commence beta testing on approximately 20 games during the year. In 2015, the Group will continue to facilitate the development of mobile games by implementing diversified strategies: (i) Intellectual property (“IP”) strategy: Forgame invests and accumulates many popular IPs, such as “Doraemon” and “Ultraman,” for the upcoming gaming pipeline in 2015; (ii) Casual game strategy: In order to capture such opportunities, Forgame has built up capable game development and publishing teams, as well as established strong relationships with major channels and the top three telecommunication operators in China to strengthen casual games development, promotion and fee collection capabilities. The Group will continue to build on the foundation of the “Boonie Bears (熊出沒)” series and offer more casual games in 2015 and beyond to serve the underdeveloped Chinese casual game market; and (iii) Mid/Hard core game strategy: the Group will continue developing and publishing diversified webgames and mobile games with high quality leveraging its previous experience, and work closely with channels partners in order to maximize profitability.
Mr. Wang concluded, “As a leading developer and publisher of webgames with a solid gaming industry foundation, we will leverage our existing business while transforming into a mobile gaming company and strive to capture the exciting development opportunities in the mobile games market, thereby delivering promising returns for our shareholders in the long run.”
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About Forgame Holdings Limited (stock code: 484)
Established in 2009 and listed on the Hong Kong Stock Exchange on 3 October 2013, Forgame Holdings Limited is a leading developer and publisher of webgames in China with a fast-growing mobile games business. As of 31 December 2014, the company had 40 self-developed webgames and 13 mobile games in operation. Its game publishing platform 91wan has distributed over 90 self-developed and licensed webgames and attracted over 222 million registered players.

Safe Harbor Statements
This press release contains forward-looking statements. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, Forgame’s limited operating history, its ability to develop and operate new games that are commercially successful, the growth of the online/mobile game market and the continuing market acceptance of its games and in-game items in China and elsewhere, its ability to protect intellectual property rights, its ability to respond to competitive pressure, its ability to maintain an effective system of internal control over financial reporting, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Forgame does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.