Forgame Announces FY2015 Annual Results

Forgame  a leading developer and publisher of mobile games and webgames in China, announced its annual results for the year ended 31 December 2015. The Group continues to gain traction in expanding its mobile gaming operation as the Company almost doubled its mobile games launch from 12 last year to 20 in 2015. Moreover, 75% of its mobile games fall under the casual game category, which is in-line with our goal to be a leader in the casual mobile gaming space. Overall, the Group’s mobile gaming revenue increased by 106% year-over-year.

During the year, the Group recorded total revenue of RMB511.5 million and net loss of RMB129.6 million. The majority of the losses were generated from impairment and investment losses of approximately RMB79.8 million. Also, delays of a few key games also prevented us from delivering stronger operating results. However, the Group had made efforts to effectively improve the cost and operating efficiency by (i) improving the investment return on advertising expenses, (ii) optimising its research and development capability; and (iii) managing administration costs. Specifically, selling and marketing expenses and R&D expenses decreased by
approximately 72.8% and 43.1% YoY respectively.

Apart from the implementation of its game development strategy of launching more casual games, the Group also intends to bring its games to the wider global market.
Forgame’s overseas R&D and publishing team, who had enjoyed success in bringing local made games to the U.S. and Europe market prior to joining Forgame, has launched their first game developed in-house at Forgame, namely “Liberators”, a World War II-themed game, in the first quarter of the year 2016. The team is planning to introduce more games internationally in 2016 and beyond.

Mr. Dongfeng Wang, Chairman and Chief Executive Officer of Forgame, said, “For the year 2015, the Group has made tremendous effort in expanding Forgame’s mobile games operation with the goal to be the leader in casual mobile games. The games including the “Boonie Bear” series and the sequel of our legacy hit game “Soul Guardian,” “Sword Immortal”, have achieved satisfactory market results and contributed to the increase of our mobile games revenue in 2015. Meanwhile, the Group has achieved good progress in improving operating efficiency through modifying the cost structure and streamlining the overheads. This enables the Group to optimize our business operation and allow us to be nimble in this competitive market.”

Mr. Wang concluded, “Going forward, the Group will continue to work hard and be prudent with our decision making to generate higher shareholders value. We want to thank our shareholders for their continual support.

Source: Forgame