The revenue of palm fun technology in the first half of 2017 is 827 million yuan and the profit is 267 million yuan.

as of June 30, the operating income of palm fun technology was 827 million yuan, and the net profit belonging to shareholders of listed companies was 267 million yuan, down 13.35% and 36.17% compared with the same period last year.

on August 25, Palm fun Technology released its results for the first half of 2017. According to the report, as of June 30, the operating income of palm fun technology was 827 million yuan, and the net profit attributed to shareholders of listed companies was 267 million yuan, down 13.35% and 36.17% from the same period last year. The report points out that the company has added online self-research and agency products such as "Street Basketball", "Myth Eternity", "Heroes of Magic: war era", "Dragon World", "War of Royal Power", and other games such as "OL, the Ultimate Battle of Boxing 98" and "Great Navigation Road" have been released in new overseas markets one after another. The decline in the pipeline of the company's online products and the launch time of some key new game products have been delayed than planned, resulting in a decline in business revenue compared to the same period last year. For example, "Myth Eternity" and "Heroes of Magic: war era" were officially launched in May and June 2017, respectively, and product revenue was not mainly reflected in the reporting period. At the same time, the company introduced an important strategic partner Tencent at the capital level, creating good conditions for further deepening business cooperation.

< strong > New products take over to establish performance inflection point < / strong >

the release of palm fun technology production capacity is mainly affected by the delay of product rhythm, the most intuitive manifestation is the launch of the new popular style "Heroes of Magic: war era" on June 21, with only 10 days of revenue contribution in the first half of the year. Since its launch, the product has been stable in the forefront of the IOS bestseller list, the market performance is stable, and it is expected to become one of the main cash bulls of Palm fun Technology.

at the same time, the rise in R & D investment has pushed up the comprehensive operating costs of palm technology, but also offset some of the profits in disguise. The announcement shows that during the reporting period, the company's R & D investment increased by 27.47% compared with the same period last year, which is reflected in the fact that the product line for the self-developed 3D MMO mobile game "Dragon World" was launched in late July; the strategy card mobile game "Dragon King Legend-Douro mainland 3" officially opened the billing test; "Miracle Awakening", the sequel of "Miracle Awakening", and the leisure music game "early Voice Future: fantasy Goji" signed a contract for Tencent agent operation. "one punch Superman", "BLEACH" and other top IP mobile development and so on.

industry insiders believe that the increase in R & D cost is based on the multi-line launch of palm interest science and technology projects, although it will affect their short-term financial performance, but in the long run, it is a necessary accumulation to rise abruptly based on accumulated strength and enhance core competitiveness, representing the new market competition situation. The adjustment and deviation of the company's strategic focus. At present, the company is in a critical period of inflection point upward. On the one hand, it is necessary to do a good job in the long-term operation of on-line products and maintain stock; on the other hand, it is necessary to accelerate the launch rhythm of follow-up new products to expand the increment, and the overall market is expected to pick up in the third quarter.

in addition, it is worth noting that the gross profit margin of Palm fun Technology's main business: mobile terminal games and Internet page games has increased. This is a good performance of the company's profitability and business coordination, integration and efficiency at a time when the user acquisition cost is rising, the operation promotion threshold is raised and the market share is further concentrated.

< strong > strengthen the coordinated integration of superior resources < / strong >

the other end of the product momentum is that palm technology further improves the upstream and downstream penetration of the industrial chain, laying a solid foundation for the high-performance realization of follow-up boutique games. Through the successful introduction of 2% strategic stake of giant Tencent during the reporting period, Palm fun Technology was able to strengthen mobile game user acquisition, promotion channels and long-term precision operations. as a result, the simple cooperation model that used to rely solely on agent operation has become a deep synergy of all-resource docking. "Heroes of Magic: the era of War" is the first case of this model. Two months after its launch, Heroes of Magic: the Age of War still rushes into the top five of the IOS bestseller list, showing strong explosive power and profitability.

the announcement points out that the company has introduced an important strategic partner Tencent at the capital level, which is a win-win model of deep cooperation between R & D advantage companies and leading platform companies. it has created good conditions for the company to further deepen business cooperation with Tencent. After the Hero of Magic: the era of War, there are still powerful IP masterpieces such as "Miracle Awakening" and "early Voice Future: fantasy Song Ji", which is also a favorable guarantee for the continuous release of value and production capacity.

strengthen the construction of the industrial value chain. At the same time, palm technology also implemented the employee stock ownership plan during the reporting period to strengthen its own R & D advantages by deeply binding the R & D team to practice" internal skills ". Generally speaking, the performance of palm fun technology products has entered a U-shaped track of bottoming out and rebound, and the momentum of growth is constantly increasing. In the future, with the gradual release of R & D capacity and the continuous strengthening of business coordination between partners, the realization of energy efficiency will be further improved, which will constitute a new competitive barrier for the company.

Edit: mary