"Frozen King" has fallen from the sky underground

Jiali by every reporter

Cloud Travel Holdings (00484, HK) is no longer "Wandering," This once-famed "Frozen King" has fallen from the sky underground.

Last week, Wan You Holdings issued a profit warning announcement that it expects to record a net loss of 15 million yuan to 25 million yuan in the first half of this year. "Daily Economic News" reporter noted that the issue of this bad news from the company's shares listed on the HKEx only just more than 9 months time.

Market value has evaporated 6.5 billion Hong Kong dollars /

In October last year, Wan You Holdings was listed on the Hong Kong Stock Exchange. During the IPO period, it attracted 27,500 people, 313 times over-purchased and frozen 54.4 billion Hong Kong dollars. It became the "frozen capital king" in the Hong Kong stock market at that time. The performance of the first day of listing, but also make this game company to become a new stock star.

Wandering Holdings sought after in the IPO stage, so that the original investors have unexpected. In 2012, Yunyou Holdings introduced three private equity fund companies TAAssociates, Qiming Venture Capital and other three investors, a total shareholding of 28%. Tanhai Man, TAAssociate China Director, admitted frankly that he did not expect Yunyu Holding to be so popular in the Hong Kong public offering and continue to be optimistic about the company's future development.

Cloud Travel Holdings will be issued at a price of 51 Hong Kong dollars per share, in fact, such a high offer price in the Hong Kong stock market is very rare, when the closing price of more than 50 Hong Kong stocks only 30 only. However, Cloud Travel Holdings listed on the first day of last October 3 last year, closing price rose 16.5 Hong Kong dollars more than the offer price, or up 32.4%; the next two days, wandering Holdings continued to hit a new high, the stock hit a 73.95 Hong Kong dollar on October 7.

However, this has become a wandering holding history. Since then, its share price has started a long bearish path. As of last Friday (July 18) closing, Wannyong Holdings reported at HK $ 22.4, down 13.18% from the previous day. Compared with the issue price of more than 9 months ago, More than waist cut, the highest price more than 73.95 Hong Kong dollars is dropped Qi Cheng. "Daily Economic News" reporter noted that Yunyou latest closing market cap was only 2.84 billion Hong Kong dollars, compared with the market value of the highest share price has evaporated 65.52 billion Hong Kong dollars.

Game companies once became a big hit in the Hong Kong stock market. After Wanyu Holdings, IGG (08002, HK), Boyaa Interactive (00434, HK), etc., also landed on the HKEx one after the other with good performance in the previous period. But up to now, the original aura has been under-performing. Last Friday, affected by the fall of cloud games Holdings, the two gaming stocks both fell about 3%.

Listed 9 months performance change face /

Wan You Holdings shares plunged 13.18% last Friday, due to a profit warning issued by the company. The company said it expects to record a net loss of 15 million yuan to 25 million yuan for the first six months ended June 30, The main factors contributing to the expected net loss are: the existing web games have matured and led to a decline in revenue. In the first half of the year, the Company did not launch any new key web games. In the meantime, despite the decline in revenue, employees involved in R & D, distribution and operations The cost has not dropped.

The other hand, when listed last year, Wanderingou Holdings prospectus data really "beautiful." From 2010 to 2012, the company's revenue increased from 95.08 million yuan to 777 million yuan, with a CAGR of 185.8%. Its profit soared from a loss of 40.38 million yuan in 2010 to a profit of 218 million yuan in 2012. According to the company's net revenue in the web game development industry in 2012, the company ranked first among Chinese web game developers with a market share of up to 24%. In addition, Yunwan own game platform owned 91wan also issued 79 self-development and agency web games, and has more than 179 million registered users. At that time, Morgan Stanley estimated that the company's annual profit growth will reach 36% in the next three years and 9.5-12x 2014 PE.

The rapid growth of cloud travel holding situation in 2013 has indeed been verified. Annual Report shows that the company's revenue in 2013 was 1.183 billion yuan, an increase of 52% over the 777 million yuan in 2012; adjusted profit of 325 million yuan, an increase of 35%.

However, the situation in 2014 is not optimistic. Compared with the profit of 154 million yuan in the first half of 2013, Wan You Holdings suffered a dismal annual performance in the first half of 2014 under pressure.

The future of the acquisition is uncertain /

Public information shows that the predecessor of Yunyou Holdings Forgame online games company group, founded in 2009 and headquartered in Guangzhou, a total of three wholly-owned subsidiary.

At present Yun You Holdings has the "Ming Dynasty", "mortal self-cultivation" and other representative works, while mobile phone games are being developed, there is a hand-travel product, "the world OL." Zheng Huafeng, a veteran game industry analyst, also called Cloud Travel Holdings "Little Tencent" in the world of page games.

However, it seems the industry, Wandering Holdings flagship tour, its market space will be squeezed by hand travel.

The cloud swim holding nor did not see this point in the prospectus, said the average life cycle of web games for 12 to 24 months, and its ability to achieve peak will gradually decline, even if the successful extension of the life cycle, but also Unable to maintain or improve profitability. Therefore, in addition to maintaining the existing online games, we must develop new online games to attract players, but this may not be achieved.

Wangyun Holdings IPO in the market, they will be the future development of mobile games as one of the important directions, and ready to focus on foreign acquisitions. Company sales data show that raised 939 million Hong Kong dollars, of which 188 million Hong Kong dollars will be used to further develop online games and mobile games business, and 563 million Hong Kong dollars will be used for foreign acquisitions.

In March this year, the company's acquisition has been identified. At the time of the announcement shows that the company will spend 70 million US dollars (about 543 million Hong Kong dollars) to buy hand tour "magic tower" developer 21% stake in MagicFeature. The game in Hong Kong, China and Taiwan, China performed well, with a large number of users and huge downloads.

However, the transaction has not yet completed. The company announced on May 18 that one of the sellers had recently been informed of briefings and e-mails from the relevant departmental minutes banning mainland investors from conducting online and mobile game operations in Taiwan and the company is currently verifying the information.