"Hao Dazha, I'm Zhazhui, I'm a new version of the ship that I haven't picked up in Sili..." Even if you don't play games, you probably have heard of this Hong Kong Mandarin game advertisement. It comes from the game "Greedy Blue Moon", which gave actor Nick Cheung an unforgettable popularity.
htmlOn November 25, Zhongxu, the operator behind "Greedy Blue Moon", will sprint to , Hong Kong stock , to go public. The success of "Greedy Blue Moon" and the name of "Zhazhahui" are inseparable from Zhongxu's future operations.marketing expenses account for the majority of the
Zhongxu Future mainly operates its interactive entertainment business under the "电影中文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文文
Since its establishment, Zhongxu Future has marketed and operated 259 interactive entertainment products, including 225 game products and 34 online literature products. Among them, nine interactive entertainment products have been in-depth operation for more than five years and 27 interactive entertainment products for more than three years.
In fact, investing heavily in marketing is the main means for Zhongxu to expand rapidly in recent years.
As we all know, the current competition in the domestic game market is intensifying, and brand awareness is crucial to a game developer and operator. In order to increase platform exposure and attract traffic, Zhongxu Future has invested huge amounts of money to carry out marketing, and even invited more than 30 well-known stars to be endorsed.
In 2021, Zhongxu Future's sales and distribution expenses reached 3.851 billion yuan, accounting for 67.1% of revenue. Among them, marketing and promotion expenses are the main expenditure items, mainly online traffic acquisition fees, offline marketing expenses and celebrity endorsement fees paid to cooperative online media platforms.
, supported by sky-high marketing expenses, Zhongxu Future Platform is very popular.
In addition to the impact of the epidemic in 2020, the cumulative registered terminal users, average monthly active users and paid users of Zhongxu Future Platform have achieved impressive growth. In the first half of 2022, the average monthly active users of the platform was 9.3522 million, the average monthly paid users was 1.7678 million, and the payment rate reached a high level of 18.9%. The rapid growth of paid users of
has also driven the improvement of Zhongxu's future operating performance. From 2019 to 2021 and the first half of 2022, Zhongxu Future achieved revenue of 3.008 billion yuan, 2.872 billion yuan, 5.736 billion yuan and 4.536 billion yuan respectively.
Multi-field blooms After the rapid expansion of the traffic pool of
platform, Zhongxu's future ambitions are also expanding, no longer limited to marketing and operators of game manufacturers, but aiming at other areas.
With the advantage of the platform's Z-generation traffic, in 2020, Zhongxu Future incubated and launched the fast food brand "Za Zha Ash", which mainly uses omni-channel marketing strategies to sell the company's own brands, local flavors, rice noodles products and other fast-consumption foods.
Thanks to the effect brought by high investment, slag ash has developed rapidly. Based on the total commodity transaction volume, slag ash has become one of the fastest growing brands in the fast food industry.
The two innovative businesses, such as fast food business and trendy toy brands, have a relatively low proportion of the company's revenue, but the development prospects should not be underestimated. In the first half of 2022, the revenue of innovative business reached 66.8 million yuan, an increase of 120.2% compared with the second half of 2021.
In addition, because it is linked to games and has entered the trendy toy market, Zhongxu Future has also taken advantage of the hot spots of the metaverse.
At the beginning of this year, Zhongxu Future entered the Meta Universe with a high profile, saying that it will build a Meta Universe community, allowing IP, trendy toys, brands, products and fans to connect in new ways in the community to create new experiences and new economy.
Zhongxu Future stated in its prospectus that it plans to selectively seek strategic alliances, acquisitions and investments in the entire life cycle value chain. For example, popular and promising IPs related to the concept of the metaverse to diversify the company’s services.
core game has risks
In recent years, the main interactive entertainment products that are driving Zhongxu's future revenue growth are "Original Legend", "Ancient Cloud Legend", "Hot Blood Strike", "National War Legend" and "A Blade of Angry", of which only "Ancient Cloud Legend" is owned, and the other four games are all licensed.
From July 2017 to October 2019, Yumeide Co., Ltd. and Legend IP Co., Ltd. filed lawsuits in courts in Beijing, Shanghai, Hangzhou and Chengdu respectively, accusing Zhongxu Future of marketing and operation of the web game Legend World Web Edition, Guyun Legend, Blue Moon Legend and mobile game Longteng Chuanshi infringed on the plaintiff's copyright of the Hot Blood Legend, and some games that were misleading.
In the lawsuit, Yumei De Co., Ltd. and Legend IP of Co., Ltd., on the one hand, demanded that Zhongxu Future stop infringement and unfair competition for , and on the other hand, it required Zhongxu Future and other co-defendants to compensate approximately RMB 51.5 million. The judgment that the court has made now shows that it is more inclined to the plaintiff, requiring Zhongxu to stop infringement in the future and to pay a total of approximately 9.15 million yuan.
As of the date of signing the prospectus book, Zhongxu has filed a new appeal in the future, but the second instance court has not yet made a judgment. During each period of the reporting period, the company's game revenue in connection with litigation related to intellectual property rights accounted for about 63.8%, 61.6%, 27.2% and 15.2% respectively.
Content reference: Hong Kong stock decoding
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