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More Than Half of Top 20 Listed Chinese Game Companies Saw Net Profits Drop Last Year

By Weilin Li
May. 12, 2022 updated 07:18

A report released by Yicai news recently indicated that a group of 11 companies on the list of top 20 stock-listed Chinese game companies by revenue has seen their net profits decline last year.

In this challenging situation, the overseas markets have become a driving force for growth.

Besides the net profit drops, seven companies out of the top 20 also saw their general revenue decrease, according to their financial reports.

The 11 companies with net profit declines include the notable names Perfect Word and IGG. Perfect World’s net profit decline was 76.2%, and IGG, the developer behind Lords Mobile, saw its yearly net profit drop heavily by 82.3%.

A detailed net profit growth report for the top 20 game companies.A detailed net profit growth report for the top 20 game companies.

These declines were mainly due to the hiatus between old titles and new games, fiercer competition, and some companies’ being in a transition period, according to their financial reports.

In the meantime, the overseas markets have become a driving force for these developers and publishers. The most notable company is Tencent, which saw its game revenue for this section increase by 31% to 45.5 billion CNY(~7.1 billion USD).

The growth rates of 37 Interactive Entertainment, Ultrapower Software (Camel Games), and CMGE for this section were also remarkable.

Source: Yicai