Giants network U.S. gold-plated trip failed

7-year market capitalization may be transferred to the board Hong Kong Gold Securities reporter Hu Weiwei July 18, the giant network closed at 11.92 U.S. dollars, 2.87 billion U.S. dollars in market capitalisation than seven years ago the initial loss of nearly half. The news said the company will be planning to list on HKEx next year after it has retreated from the market. Industry insiders believe that the A-share market game shares at a very frequent price-earnings ratio, can be a A-share is the best. But the giant network landing a A-share of difficulties, Hong Kong is the real choice. 7-year market value loss semi-privatization retirement to save face July 21, giant Network CEO Liu Wei and president Guixe issued an internal mail that the giant network privatization project in Friday (July 18) ended. Giant Investment Limited bought a giant network of about 3 billion dollars in cash. November 1, 2007, the giant network officially landed on the New York Stock Exchange, became the United States listed in the largest Chinese private enterprises. On the first day of the IPO, giant network closed at 18.23 U.S. dollars, up 17.6% from the IPO price, the market value of nearly 5 billion U.S. dollars. Only 7 years later, the market value was nearly halved. Giant Network explained that the choice of the city on the one hand is to give employees more space for development and entrepreneurial opportunities, on the other hand, the U.S. capital market for Chinese online games recognition is not high, the two countries and other aspects of cultural differences. CIC Consultant Culture industry researcher Zailing told the Gold Securities reporter that the goal of the giant network privatization is to replace the financing environment. If the results do not change significantly, even if the giant network itself does not voluntarily privatize, the SEC will let it out of the market. It would be wise for Giants to do so now and to get relatively high valuations in other capital markets while the game concept is not down. It is understood that the giant network in addition to the "Journey", there is no strong follow-up products, rely on the existing end to support performance, growth significantly slowed, and the current game market is the new outbreak point is the page and hand tour. "Gold securities" reporter noted that the giant network May 22, 2014, the last release of the financial report, in the first quarter of the 2014 fiscal year ended March 31, the company net revenue of 575.1 million yuan (about 92.5 million U.S. dollars), the chain fell 4.9%, year-on-year growth of 0.4%. Shillon, senior analyst at Analysys International, said that the giant network should not immediately choose a new site to return to the market, the urgent matter is the adjustment and transformation of the business. "The Giant network is a big company, and it was 2013 years before you realized that you were making money, but the layout has slowed," he said in an interview with the Gold Securities reporter. After the return of the city must be focused on the mobile end of the business to pull up. "He believes that the giant network also has the opportunity to live in the future, compared to entrepreneurial companies operating experience, can mobilize more resources; If the catch up, even if no way to get to the first echelon, but take the position of the upstream is still possible. What will be the layout of the giant network after the New York City is retired? "Gold Securities" reporters on this matter to call the company's investor Relations department phone, has not been answered, as of press, the Investor Relations department did not reply to the interview email. Reporters repeatedly call their PRThe person in charge of the handset, also has been in the shutdown state. Hong Kong stocks into a "chicken" a-share admission is difficult to get back to the giant network last November when the privatization of the transaction, that is, rumors that the company or the mainland a-share or Hong Kong stock market. In mid-June this year, there is news that the giant network chairman Shi Yuzhu has reached a preliminary agreement with a number of fund shareholders, the reorganization of assets and choose Hong Kong as a new starting point, but the most likely to be completed next year. Industry insiders believe that the giant network to choose Hong Kong to go back to market is not surprising. A former fund analyst said that if the giant network were to be listed in Hong Kong, it would expect to get a higher valuation, up from about 8 times multiples to 12-18 multiples. Zailing to the "Gold securities" reporter analysis said, giant network if the choice of listing in Hong Kong is more advantageous, "the U.S. capital market is more rational, the game concept of the pursuit of a low degree of enthusiasm, mainly based on corporate performance and development prospects of investment, but the growth of the giant network decline, it is difficult to foothold in the NYSE." And a-share market, the relevant system needs to be improved, and the threshold is higher, queuing enterprises too. Prior to the industry compared to the U.S. stock and a-share game companies, "Palm technology (300315, shares bar) (300315) 2013 annual revenue of 387 million yuan, only for the giant network one-sixth, its net interest rate of 40%, also inferior to giants network." However, with a 167 times-fold premium, the market capitalisation of 22 billion yuan is much higher than the giant's $2.78 billion trillion (about 17.3 billion RMB). "Gold securities" reporter noted that the backdoor umbrella of the tourism network (002174, shares bar) (002174), the current market value of 12.4 billion yuan, the first quarter of this year's revenue of 60.11 million yuan, and the giant network quarter net revenue of 575.1 million yuan. A game industry personage to "Gold securities" reporter said, giant network to be in a A shares of the time cost is too high, and a A-share listing audit threshold is also higher, this is a lot of internet companies choose overseas market listing reasons. Shillon said that the A-share market is gradually open, giant network want to land a-share market problem should not be small. But the A-share market stability is not good, the demon shares frequency, the game stock bubble already very obvious, and the H-share market is relatively rational, to positioning for the long-term management of the game enterprises, is a good choice. The Blue Harbor online, The Lego game company and so on has also been spread this year will go to Hong Kong listing. However, the "gold securities" reporter noted that, in addition to the break of the joint public, the other game stocks in Hong Kong is also quite bleak. Roaming Holdings, which had an initial price of HK $51 per share, hit a maximum of HK $73.95 in the early days of the IPO, then plunged, with shares hovering around 20 Hong Kong dollars and evaporating more than 70% of their market capitalisation at the highest point. And the family interaction has fallen from HK $2.15 to the IPO price, to a low of HK $1.2.