2. Disclaimer
1
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4. Overview of China mobile game value chain
3
Developers
Publishers
Distribution
Platform
Self-developed games
Pre-installation
and game center
Published games
Design and develop mobile games
Publish games through distribution platforms or
license to publishers
License games created by third party
developers
Value added services such as game
optimization, marketing and user data
analysis
Distribution channels for
developers and publishers
Includes mobile game portals
and pre-installation on mobile
devices
Users
Payment
Channels
Facilitate the
collection and
transfer of payment
Include telco
operators and third-
party payment
channels
A leading mobile game
developer
Multiple awards for self-
developed game "War
Valley"
Largest mobile game publisher
in 2014Q1 and 2013
Publisher of multiple top
games in various game genres
Extensive Game Center pre-
installation
Strong relationship with
leading distribution platforms
Provide players with
access to all major
payment channels
Source: Company data, Analysis, Sootoo.com
CMGE Competitive Strengths
5. 17.9%
Chu Kong
16.2%
FL Mobile
13.2%
iDreamSky
13.0%
Kun Lun
11.0%
Game
Comb
9.1%
Others
19.6%
18.9%
Chu Kong
16.4%
FL Mobile
13.8%
iDreamSky
13.4%
Kun Lun
11.0%
Game
Comb
10.1%
Others
16.4%
Company overview
4
A portfolio of 847 games with 110 social games and 737
single player games
8.2 million paying users in 2014Q1
Social games contribute approximately ~70% of our game
revenue as of 2014Q1
Large and extensive mobile game sales and distribution
network in China
Over 1,200 employees with ~500 game developers
Offices and R&D centers in Guangzhou, Shenzhen, Beijing,
Chengdu, Shanghai and HK
Business model
Developer
23self-developed
social games
Publisher
87licensed social
games as of 2014Q1
Platform
CMGE Game Center
Largest publisher and a leading developer of mobile games in China with integrated capabilities across the
mobile game value chain
29social games
are exclusively
licensed as of 2014Q1
187self-
developed single
player games
Extensive Game
Center pre-installation
#1mobile game
publishers’ market
share in 2014Q1 and
2013
Source: Company data, Analysis, Sootoo.com
Mobile game publishers’ market share by in China
2013
2014
Q1
6. -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Jan'13
Feb'13
Mar'13
Apr'13
May'13
Jun'13
Jul'13
Aug'13
Sep'13
Oct'13
Nov'13
Dec'13
Jan'14
Feb'14
Mar'14
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Cumulative Paying Users
Cumulative Registered Users
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Jan'13
Feb'13
Mar'13
Apr'13
May'13
June'13
Jul'13
Aug'13
Sep'13
Oct'13
Nov'13
Dec'13
Jan'14
Feb'14
Mar'14
Cumulative Gross Billings
A large portfolio of popular and profitable
mobile games
Self-developed games
5
Wen Ming II
2009 Top 10 Most Popular
Original Mobile Games
Xiao’ao Jianghu
Top grossing game in
Maopao app store from
Jan-Apr 2011
Kangri Yingxiong Zhuang
Most downloaded single-
player game on China
Mobile during Jan 2012
Cut Cut Boom
Top grossing iPad game
in China during Nov-Dec
2010
远洋Online
2008 “Best Social Game”
2008 “Best Strategy
Game”
2007 “Best Mobile
Social Game”
Creation Song
2010 Top 10 Most
Popular
Original Mobile Games
Thumb Monopoly
2009 Top 10 Most
Popular
Original Mobile Games
YY Three Kingdom
2008 Top 10 Most
Popular
Original Mobile Games
G+ Smartphone game
bundle
Top grossing game
bundle on China Mobile
during Jan-Jul 2012
Paopao Xiyou
Golden Plume Award as
Best Mobile Platform
Online game in China
2011
Home Aquarium
Top 6 on Apple’s China
Region iTunes paid games
list and 2nd on
Apple’s China Region
iPad paid game list
Joyful Da Ying Jia
Golden Apple Award as best
mobile game in 2013
War Valley
Golden Finger Award (Best Mobile
game)
Jin Ling Award (Most Fav mobile
game),
Top 10 Most innovative mobile
games in GGS, Social Game
excellence award in GMGC
Fist award (Best social game)
RMB ‘000
Paying users ‘000Registered users ‘000
2008 2009 2010 2011 2012 2013
Consistently develop popular and top-ranked mobile games
7. 6
Top 5 mobile
single-player
games
Top 5 mobile
RPG games
Top 5 mobile
card games
Top 5 mobile
education
games
I Am MT Dream One Piece Wu Xia Q Zhuan San Guo Zhi I am Huo Ying
Plants vs. Zombies 2 Temple Run 2 Carrot Fantasy Fishing Joy 2 Minion Rush
Space Hunter Master Sword Shen Mo The Eternal Warrior 3 Nuzhan Xuanyuan
Happy Fish:
Dream Aquarium Monster Island Business Life Monst X Monster Tiantian Xuanwu
A large portfolio of popular and profitable
mobile games
Publisher of choice by top mobile game developers
Denotes games published by CMGE
Source: Company data
(1) Exclusive on Android
(2) Exclusive on all Android platforms except Qihoo 360
(3) Exclusive on all Android platforms except Baidu 91
(1)
(2)
(2) (3)
8. 7
Strong and differentiated distribution channel
Extensive Game Center pre-
installation
Strong partnership with top third-
party app store and SNS platform
in China
Close collaboration with major
third-party app stores and SNS
platforms
Multiple top 20 ranked games in
major distribution platforms such
as Qihoo 360 and 91.com
Strategic relationship with major
app stores including 91.com,
HiMarket and Qihoo 360
“Grade A” strategic partner with
mobile operators
Close collaboration with over 400
handset manufacturers
Strategic co-operation with
Mediatek to pre-install
games/game center on Mediatek
chipsets
“Grade A” strategic partner of
China Mobile
Master Application Partner (“MAP”)
of China Mobile
China Telecom and China Unicom:
strategic cooperation to market
CMGE’s mobile social games.
9. Strong self-development capabilities and game
pipeline
8
2013-2014Q2 self-developed new games pipeline:
2013Q1 2013Q3 2013Q42013Q2 2014H1
Eagle 1945
Zhumo
Zhizhan
Immortal WindWar Valley
Social games: 23 self-developed social games as of 2014Q1
Single player games: 187 self-developed single player games as of 2014Q1
Tank Eagle 2
10. Demonstrated sourcing capabilities and strong
publishing pipeline
9
Number of publishing titles
of social games
Exclusively licensed social games launch timeline (for game titles which were
already acquired up to Mar 2014)
3
8
16
21
29 3328
28
28
30
58
68
Q12013
Q22013
Q32013
Q42013
Q12014
Q22014(E)
Non-exclusive licensed games
Exclusive licensed games
87
101
2013Q1 2014H12013Q3 2013Q4
2013Q2
51
31
36
44
11. Experienced management team
10
VODone’s Chairman and CEO
Chairman of China APEC Development Council
Vice Chairman of the China Internet Association
28+ years of Chinese Government administration and
executive management experience
Doctorate degree from Nankai University
17 years of experience in corporate finance and capital
markets
Acted as VODone’s Executive Director and CFO from
2009 to 2012. Previously worked at HSBC
Master’s degree in engineering economic systems and
operations research from Stanford University
Founder of 3GUU
Over 15 years of experience in mobile industry in China
Bachelor’s degree from Jinan University
Dr. Lijun Zhang
Chairman of the Board
Mr. Hendrick Sin
Vice-chairman of the Board
Mr. Yongchao Wang
Vice-chairman of the Board
Founder of KKFun
Co-founder of Infomobile and Hong Kong listed A8
Digital Music
Over 10 years of mobile games experience in China
Master’s degree from South China Normal University
Mr. Ken Jian Xiao
Chief Executive Officer
Over 17 years of experience in corporate finance,
research and asset management
Previously worked at Barclays Capital and Merrill Lynch
Master’s degree in engineering economic systems from
Stanford University
Mr. Ken Fei Fu Chang
Chief Financial Officer
PVG Venture
Capital Partners
Zennon Capital
Partners
Strong, supportive and well-known shareholders
Mr. Shuling Ying
President
Extensive experience in selection, publishing, operation
and marketing
Previously worked in Standard Chartered Bank in
Shanghai
Mr. Zhenyu Hu
Chief Operating Officer
Over 10 years of experience in commercial operations
and team management
Assistant general manager of 3GUU
Bachelor’s degree in marketing from Jiangxi Academy
for Specialized Economic Management
12. Strong corporate governance
11
Former CFO of Country Garden Holdings (2007.hk)
Previous senior positions in Hong Kong Stock
Exchange and Deloitte
Member of American Institute of CPA and Hong Kong
Institute of CPA
Best CFO, all-Asia (Property)*
Expert in
finance and
accounting and
corporate
governance
General partner and member of the investment
committee at Pacific Venture partners
Over 15 years in academic research. Professor at
National Taiwan University of Science and
Technology
Chairman of Taiwan Internet Association 2006 - 2009
Expert in
finance and
mobile internet
CFO of Mediatek Inc. (2454.tw)
Former investment banker at JPMorgan
Best CFO, all-Asia (Tech/Semi-conductor)*
Expert in
finance, and
multi-national
company
management
skills
Founder & managing partner of AID Partners
Former senior positions at Investec Asia, China
Everbright Capital and BNP Paribas Peregrine
Member of Australian Society of Public Accountants
and Hong Kong Institute of CPA
Expert in
finance and
investment and
corporate
governance
Ms. Estella
Yi Kum Ng
(Age: 56)
Mr. Chen-
Wen Tarn
(Age: 53)
Mr. David Ku
(Age: 44)
Mr. Joel
Chang
(Age: 45)
Strong focus on corporate governance with highly reputable independent directors
Audit
committee
Remuneration
committee
Corporate
governance
and
nominating
committee
Board
3 Independent
directors
2 Independent
directors &
a Director
2 Independent
directors &
a Director
5 Executive Directors
4 Independent Directors
* - By Institutional Investor
14. Income statement (2009 – 2013)
13
Successfully transformed from feature phone games to smart phone games as evidenced in the
financial performance in 2013
Note:
Exchange rate USD/RMB: 6.0537
Revenue Gross profit Net profit
(US$ in thousands) (US$ in thousands) (US$ in thousands)
14,002
20,716
40,221
30,988
58,313
2009 2010 2011 2012 2013
7,885
13,628
22,324
15,835
32,544
56%
66%
56%
51%
56%
2009 2010 2011 2012 2013
Gross Profit Margin
5,137 6,725
26,982
(2,391)
4,421
37%
32%
67%
(8%)
8%
2009 2010 2011 2012 2013
Net profit Margin
15. Quarterly income statement (2012 – 2014Q1)
14
Revenue Gross profit
Adjusted EBITDA(1) Net profit/(loss)
Note:
Exchange rate USD/RMB: 6.0537 except 6.2164 used for 2014Q1 financials and 2014Q2 revenue estimate
(1) Adjusted EBITDA defined as income / (loss) from operations excluding depreciation and amortization, share-based compensation expense, impairment of goodwill and intangible assets, and listing expenses
(2) Net income for 2013Q3 of US$4.2 million including other non-operating income of US$4.4 million
(3) Net income for 2013Q4 of US$5.8 million including other non-operating income of US$4.6 million
(4) Net income for 2014Q1 of US$5.6 million including other non-operating income of US$0.5 million
(US$ in thousands) (US$ in thousands)
(US$ in thousands) (US$ in thousands)
8,975 10,032
7,204
4,777 6,037
11,888
16,198
24,190
34,538
2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1
4,955
6,062
3,490
1,328
2,412 5,436
9,434
15,262
21,725
55%
60%
48%
28%
40%
46%
58%
63% 63%
2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1
Gross Profit Margin
4,105
5,221
1,259
(1,551)
(133)
1,146
3,581
5,099
9,273
2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1
3,108
3,869
267
(9,635)
(3,566)
(2,078)
(186)
1,240
5,0844,421
4,590
489
2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1
Revenue estimate for 2014Q2: US$41.8 million to US$45.0 million
4,235(2)
5,830(3)
5,573(4)
16. R&D expenses (2009 – 2014Q1)
15
Yearly research & development expenses
(2009 – 2013)
Quarterly research & development expenses
(2012 Q1 – 2014 Q1)
(US$ in thousands) (US$ in thousands)
770
1,384
4,058
5,793
8,969
6%
7%
10%
19%
15%
2009 2010 2011 2012 2013
Yearly R&D expenses As percentage of revenue
1,421 1,216
1,531
1,625
1,450
1,882
2,348
3,289
2,803
12%
21%
34%
24%
16%
14% 14% 14%
8%
2012
Q1
2012
Q2
2012
Q3
2012
Q4
2013
Q1
2013
Q2
2013
Q3
2013
Q4
2014
Q1
Quarterly R&D expenses As percentage of revenue
Note:
Exchange rate USD/RMB: 6.0537 except 6.2164 used for 2014 Q1 financials
17. Balance sheet summary & operating data
16
Note:
Exchange rate USD/RMB: 6.2164
2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1
Social Games Paying Users 308,039 1,421,301 2,792,223 3,164,935 3,649,599
ARPU (RMB) 23.8 20.8 24.9 36.6 39.8
Single Player Games Paying Users 4,297,296 3,887,271 2,572,160 2,774,508 3,525,911
ARPU (RMB) 3.4 3.3 4.3 7.4 13.6
Game Bundles Paying Users 1,516,974 1,968,606 1,595,621 1,060,667 1,083,766
ARPU (RMB) 4.7 5.2 5.5 4.9 3.6
Summary balance sheet
Operating data
(US$ in thousands)
As of Mar 31,
2014
Cash and cash equivalents (including restricted cash and short term investments) 110,988
Total Assets (excluding Goodwill and Intangible Assets, net) 181,030
Total Assets 293,845
Total Liabilities 33,446
Total Shareholders’ Equity: 260,399
18. Clear and visible growth strategies
17
Continue to expand and enhance our
game portfolio1
Further grow our player base and
monetization capabilities2
Expand our international presence to
enhance reach and profitability3
Continue to innovate and expand our
publishing platform4
Promote our brand and name recognition5
Pursue strategic acquisitions and
partnerships6
Tailored solutions
enabling multi players
interacting on different
devices, such as
smartphones, tablet
computers and smart
TVs
Expand into overseas markets
51PK.com real time combat platform
Innovative distribution methods such as hot spots
Partnership with hot spots vendors
addressing captive audience
19. Recent developments
18
Strategic partnership with Beijing Super Flash Software with advanced, stable and mature game engine for converting web-games into
mobile games, as well as a providing a complete 3D mobile game development kit
Ability to accumulate additional outstanding games in pipeline portfolio, to convert successful web-based games into mobile games and
provide additional profit opportunities through the strategic partnership
Strategically accumulated intellectual property in the areas of animation, television, movies, online fiction and well-known PC/mobile games
and to enter into collaborations with providers of intellectual property in those areas starting in 2013H2
Recent developments:
− Television: obtained rights to produce mobile games based on popular television programs including Feng Shen Ying Xiong Bang, Bu Bu
Jing Xin, Bu Bu Jing Qing and a large ancient Chinese TV drama
− Animation: obtained the right to develop mobile games based on Old Master Q, a very popular comic book series in Chinese speaking
areas, and one of the best-selling comic book series in Hong Kong
Investment in Yunva Technology, a company focusing on building a one-stop mobile social network with two major products cutting edge
network communication technology and efficient data consumption
Expect to launch games incorporating these products that provide real time communication and facilitate communication in social games in
June 2014
User
acquisition
Game engine
Intellectual
property
User
community
development
Recent
awards
“Best Mobile Game Publisher Award” in May 2014 by 2014 Global Mobile Internet Conference
“San Guo Zhi Wei Li Jia Qiang Ban”, exclusively license game, awarded the “Best Social Game Marketing Award”
CEO and CFO received the “2013-2014 Greatest Growth Potential of Listed Internet Company, CEO and CFO Award” by iResearch
Traditional and continued advantage in pre-installation, number of pre-installations of game centers to exceed 80 million of handsets for
2014E
Starting from 2013H2, significant efforts in providing services to a number of free Wifi service providers such as offering tailor-made mobile
game center operating services as well as “51 PK” real time combat platform. Recent strategic cooperation with free Wifi service providers
has produced initial positive results from distribution of games through free Wifi networks
Investment in Douwan, to further expand offline distribution channels
21. Qualifications
20
Internet culture operation license PRC internet publishing license
PRC value-added communications
business operation license Surveying & mapping qualification certificate
State-level high-tech
enterprise certificate
22. Date of NASDAQ listing September 25, 2012
NASDAQ Ticker CMGE
Outstanding shares 442 million Class A and Class B
ordinary shares (1ADS: 14 shares)
Market Cap US$613million(1)
Websites www.cmge.com
ir.cmge.com
Ownership structure & general information
21
Group structure (1) General information
MediaTek
/ PVG
(2454.tw)
VODone
Limited
(0082.hk)
42.9% 6.0% 13.6%
100% 100% 90%
CMGE
(Cayman Islands)
3GUU OWX VOGINS
25.6%
Management
and
Employees
China
Sovereign
Wealth funds
Other
Public
Shareholders
6.3% 5.6%
Zennon
Capital
(1) As of May 30, 2014
Guangzhou
Yingzheng
51PKHuiyou
100%
Shenzhen
Lanyue
51%
23. 160
300
480
670
770 800
2011 2012 2013 2014E 2015E 2016E
54
67
89
115
147
184
2011 2012 2013 2014E 2015E 2016E
Rapid growth in China mobile game market
22
Driven by robust mobile internet fundamentals, China mobile game market has significant
potential with fast-growing addressable market
Source:
iResearch, Analysys.
China mobile internet users China gaming market size
China smartphone users China tablet users
(In millions) (In millions)
(In millions) (RMB in billions)
431
565
699
799
866
923
2011 2012 2013 2014E 2015E 2016E
’11 – ’16 CAGR
Mobile: 53%
Web: 38%
PC: 19%
9
29
57
92
143
203
2011 2012 2013 2014E 2015E 2016E