Sanqi Mutual Entertainment (002555) The largest shareholder changes the rationalization of equity structure

Sanqi Mutual Entertainment (002555) The largest shareholder changes the rationalization of equity structure

Company News Company News Company announcement, controlling shareholder, one of the actual controller Wu Xushun participated in the offline subscription of Yinhua MSCI China ETF fund through targeted share exchange.

After the completion of the share exchange, Wu Xushun’s shareholding ratio was changed from 6.

12% dropped to 5.

12%, so the former largest shareholder Wu Xushun and his concerted parties Wu Weihong and Wu Weidong (hereinafter 四川耍耍网 referred to as the “Wu Family”) have a total shareholding ratio of 19.

27% dropped to 18.

27%, causing the company’s largest shareholder to change, from the Wu family to Li Weiwei, the founder of Sanqi Mutual Entertainment.

  Comment on the improvement of the company’s equity structure and start a new era of development.

Wu Xushun, one of the company’s former largest shareholders, has directly exchanged 21.2 million shares it held for Yinhua MSCI China ETF shares.

  After the redemption, the controlling shareholder of the Wu family in the traditional business has a shareholding ratio of 19.

27% is going to 18.

27%, Mr. Li Weiwei, founder of Sanqi Mutual Entertainment, and chairman / general manager of the company, still holds 19%.

This share change has no significant impact on the company’s specific operating activities. 杭州夜生活网 After this change, the Wu family was changed to the company’s second largest shareholder, but remained the company’s controlling shareholder and actual controller.

Li Weiwei changed to become the company’s largest shareholder.

The change of the largest shareholder will not cause the company’s control to change.

In view of the changes in the company’s equity structure, in order to improve the corporate governance structure and ensure the company’s effective decision-making and steady development, the company proposes that the board of directors be elected in advance. If the board of directors is completed in advance, the company’s controlling shareholder, the actual controller mayChanges have occurred to further improve the governance structure.

  A number of mobile games in the company performed well.

In addition to the top ten mobile games “One Blade Passed on” that continued to rank on the iOS bestseller list, the company’s new tour “Douro Continent”, which was launched in January, performed well. It was ranked first in the app Baoxinyou download in the first month, and ranked first in the revenue double list.In February, “Douro Continent” quickly rose to the second place in the total monthly revenue of the app game.

The mobile game “Elf Contract: Tribal Warfare” that the company cooperated with Perfect World ranked fourth in the revenue of the new tour in January; the new tour “Zhanyue Tulong”, which was launched on February 21st, was selected as one of the three new highlights of the month by AppBao.Swim one.

The company’s new tour has a beautiful performance, which directly boosted the company’s revenue.

The official company predicts that the operating revenue of the domestic mobile game business in 1Q19 will increase by more than 37% from the previous quarter. We expect that the company will achieve US $ 11 billion in domestic mobile games in 2019 and its market share will steadily increase.

  Estimates suggest that we keep our 2018-2020 earnings forecasts unchanged.

The company’s current consensus corresponds to 18 in 2019.

1x price-earnings ratio.

We maintain our recommendation rating and target price of 17.

7 yuan, corresponding to 20 times the price-earnings ratio in 2019, which is 11 more than the current one.

0% upside.

  Risks Existing game flows exceeded expectations, and the new game online progress was less than expected.