Chinese Mobile Gamer to List in Hong Kong This Month
Zhang Yushuo
DATE:  Apr 08 2019
/ SOURCE:  yicai
Chinese Mobile Gamer to List in Hong Kong This Month Chinese Mobile Gamer to List in Hong Kong This Month

(Yicai  Global) April 8 -- Zengame Technology, the firm behind popular Chinese  mobile card game Fight the Landlord, will go public in Hong Kong on  April 15 and aims to raise between CNY201.6 million (USD30 million) and  CNY377.6 million.

Zengame  will use the proceeds to bolster research and development, fund  promotional and marketing activities and acquire other gaming firms,  according to the Shenzhen-based company's prospectus. It will also use  them to fund expansion in overseas markets as well as for working  capital and general corporate purposes.

Founded  in 2010, Zengame ranked fifth in China's card and board mobile game  market in terms of revenue in 2017 with a market share of about 4  percent. The firm's core team is mostly ex-employees from Tencent  Holdings. Chief Executive Ye Sheng served as product director for QQ  game products at Tencent while Yang Min, the company's vice chairman and  chief technology officer, was once gaming R&D director at the tech  giant. 

Zengame's  revenue rose by more than one-fifth to CNY555 million last year while  profit surged by almost two-thirds to CNY108.8 million. Gaming accounted  for 86 percent of earnings at CNY481 million while advertising made up  13 percent. 

Revenues  from card and board games made up 84.4 percent, 93.1 percent and 75.8  percent of the total, in the last three years, respectively. Daily  active users of its flagship game rose by one-quarter to 5.1 million in  2018. 

Decent Capital, headed by Tencent co-founder Jason Zeng, participated in the company's previous angel and A rounds.

Editor: William Clegg

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Keywords:   Zen Game,video game,card play,IPO