The firm witnessed surging revenues from self-developed mobile games, distribution and overseas businesses.
Chinese game developer CMGE (0302:HK) (Chinese: 中手游) recorded revenue of CNY 3.957 billion (USD 580 million) in 2021, with overseas sales surging 72 times, according to its annual audited report filed on May 15.
The company also reported an adjusted net profit of CNY 630 million, down 20.8% due to the failure of certain products to obtain licenses as scheduled and increased R&D investment.
The firm's revenue mainly comes from self-developed mobile games, distribution and overseas businesses. Specifically, the overseas businesses achieved revenue of CNY 459 million, accounting for 11.6% of the company's total income last year.
In terms of self-developed mobile games, its revenue increased by 23.9% to CNY 905 million. The firm continued to doubled down on R&D efforts and spent CNY 310.7 million investing in over 20 game development companies in 2021.
Nonetheless, game distribution, which accounts for a large proportion of the company's total revenue, fell by 5.3% to CNY 2.817 billion. The decrease may be attributed to the suspension of license issuance in the second half of last year.
Despite excellent performance in multiple business areas, the firm still faces threats from competitors such as Tencent (0700:HK), NetEase (9999:HK) and miHoYo (Chinese: 米哈游). Moreover, the Chinese mobile gaming industry experienced stagnant growth last year. The number of mobile game players only edged up by 0.23% in 2021 compared to 4.84% in 2020. Simultaneously, the growth rate of sales revenue dropped from 32.61% in 2020 to 7.57% in 2021.
CMGE shares closed 0.51% lower to HKD 1.94 (USD 0.25) apiece today, with a market cap of HKD 5.37 billion.