IRui read the financial report: in 2017, the revenue of mutual entertainment games was 5.63 billion yuan, and three major layouts boosted business development

Sanqi Mutual Entertainment officially released its 2017 annual financial report recently. The data shows that Sanqi Mutual achieved a revenue of 6.19 billion yuan and a net profit of 1.62 billion yuan in 2017, up 17.9% and 51.4% year on year respectively. In terms of game business, the company's total game revenue in 2017 was 5.63 billion yuan, includingmobile gameThe revenue was 3.28 billion yuan, with a year-on-year growth of 100.3%. It can be seen that the growth of the game business of Sanqi Mutual Entertainment in 2017 mainly comes fromMobile GamesHigh speed growth of business.

According toIResearch ConsultingStatistics: Sanqi Mutual Entertainment accounted for 2.4% of the game revenue of domestic listed enterprises in 2017, becoming one of the leading enterprises in the second echelon of Chinese listed game enterprises.

As the development focus of Sanqi Mutual Entertainment in 2017, mobile games have been greatly improved in terms of the number of new products, product quality and revenue scale. According to the data disclosed in the financial report of Sanqi Mutual Entertainment, the highest monthly active users (MAU) of its mobile game products exceeded 13 million in 2017, and the highest monthly flow exceeded 500 million yuan. Several head games such as Sword of the Archangel H5 and Eternal Era have achieved good results. According to the financial report data of March 7th Mutual Entertainment, the daily flow of Eternal Era reached 70 million yuan in 2017. According to the statistics of iResearch, Sanqi Mutual Entertainment has become the third largest game manufacturer in terms of mobile game revenue in China.

Analysing the development trend of Sanqi Mutual Entertainment in 2017, iResearch believes that the overall good business performance of Sanqi Mutual Entertainment in 2017 is mainly attributed to the three strategic layouts of the enterprise: innovation and success in H5 game technology, and going abroad for domestic gamesmarketThe expansion of the company and the construction of the overall pan entertainment ecology.

1、 Based on its IP accumulation and technical advantages, Sanqi Mutual Entertainment realizes the innovation and success of H5 games.

According to the statistics of iResearch, the size of China's H5 game market in 2017 will exceed 3 billion yuan, with an annual growth rate of 279%.

By virtue of its rich accumulation in the page and hand games, Sanqi Mutual Entertainment also began to expand into the H5 game field, and launched the heavyweight IP product "Sword of the Archangel H5" at the end of September 2017. According to the ranking data published by the Appstore, after the launch of the Archangel Sword H5 app on the iOS platform, it has been stable in the top 50 of the iPhone best-selling list in the App Store in China, and has repeatedly entered the top 10 list, reaching the third place. IResearch believes that the success of Sanqi Mutual in H5 games is mainly due to its advantages in IP and technology.

First of all, Sanqi Mutual Entertainment is one of the leading enterprises in the domestic page game market, with long-term experience in operating and developing web games. Its representative products, such as the Sword of the Archangel, have accumulated fans for more than ten years, which has accumulated high IP value. The login of related games on the mobile platform has created a more convenient and rich game scene for users. Secondly, through the combination of H5 technology and App technology innovation, Sanqi Mutual Entertainment has also successfully solved the core pain point of traditional H5 games that have no fixed content entry on the mobile terminal. The mobile game product "Sword of the Archangels H5" launched by Sanqi Mutual Entertainment based on HTML5 technology, while solving the problem of lack of stable content entry, still retains the technical expertise of H5 games, such as lightweight, easy to update, which is a worthy innovation, and also provides a good model for the migration of web games to mobile platforms.

To sum up, supported by the two advantages of IP and technology, H5 games have become an important breakthrough for the differentiated development of Sanqi Mutual Entertainment in the mobile market and attracting users.

2、 Based on the localization and differentiation strategy, Sanqi Mutual Entertainment actively promoted the launch of domestic games.

By virtue of its profound experience in R&D, distribution and operation, Sanqi Mutual has actively promoted the launch of self-developed games and helped many excellent domestic games enter the global market. In 2017, the flow of overseas mobile game issuance business of March 7th mutual entertainment exceeded 1 billion yuan. The self-developed mobile game Eternal Era entered the Asian market, reached the top of the best-selling list of multi country games, and also successfully ranked among the best-selling lists of iOS in the European market. In addition, mobile game products such as "Demon Subduing Song", "Feng Xian" and "Zhu Xian", which are also distributed by Sanqi Mutual Entertainment, have achieved good results in Taiwan, Singapore, Malaysia, Thailand and other markets. As a result, Sanqi Mutual Entertainment was also included in the "2017 Top 52 Global APP Publishers" list released by App Annie, an internationally renowned data agency.

The core strategy of Sanqi Mutual Entertainment in the overseas market is the product differentiation and marketing localization strategy of the target market. Taking the product "Eternal Era" as an example, in the process of launching the customized mobile game "Rings of Anarchy" in Europe and the United States, the game adjusted the product from the research and development level, and carried out three-dimensional marketing promotion, finally successfully entering the target market. In 2018, Sanqi Mutual Entertainment may take more customized games to the sea to stabilize the diversified and global strategic layout.

3、 Sanqi mutual entertainment layout pan entertainment ecology, further enhance their own high-quality IP value.

Since Sanqi Mutual Entertainment put forward the pan entertainment strategy, it has started to layout in various sub sectors. By the end of 2017, Sanqi Mutual Entertainment had invested in 5 film and television companies, 2 animation production companies, 1 music company and 2 VR/AR companies. The original animation content production enterprise Yihua Tiankai, invested by Sanqi Mutual Entertainment, is regarded as the future "unicorn" of Chinese animation companies, while the animation "The Fate of the King" produced by another animation production company, Jueli Culture, has successfully gone to sea and won market recognition. In addition, Sanqi Mutual also successively invested in Fenghua Qiushi, a music company, and Tianshe Media and Archiact, a VR game company, to build a pan entertainment ecosystem. At present, through a series of capital operations, Sanqi Mutual Entertainment has achieved a deep and broad pan entertainment layout, and effectively enhanced its attention and influence in the pan entertainment industry. In the future, Sanqi Mutual Entertainment will focus on its own high-quality IP, develop diversified entertainment content, and create a pan entertainment ecology in collaboration with its multi field content platform.

To sum up, in 2017, Sanqi Mutual Entertainment achieved good results in the issuance of H5 games and overseas game markets, laying a solid foundation for Sanqi Mutual to stand firmly in the third place among domestic listed game companies. In the future, the extensive layout of Sanqi Mutual Entertainment in the pan entertainment market will have greater market space and synergy, providing a strong guarantee for the further breakthrough of the overall business of Sanqi Mutual Entertainment and the company's development to pan entertainment companies.