Buy Or Sell Opportunity • 15h
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 21% to €0.24. The fair value is estimated to be €0.31, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has grown by 7.2%. Revenue is forecast to grow by 149% in 2 years. Earnings are forecast to grow by 91% in the next 2 years. Buy Or Sell Opportunity • Jun 01
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.2% to €0.24. The fair value is estimated to be €0.30, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has grown by 7.2%. Revenue is forecast to grow by 149% in 2 years. Earnings are forecast to grow by 91% in the next 2 years. Board Change • May 20
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Yuan Yuan was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Annonce • Mar 26
Qingci Games Inc., Annual General Meeting, Jun 09, 2026 Qingci Games Inc., Annual General Meeting, Jun 09, 2026. Annonce • Mar 16
Qingci Games Inc. to Report Fiscal Year 2025 Results on Mar 26, 2026 Qingci Games Inc. announced that they will report fiscal year 2025 results on Mar 26, 2026 Annonce • Aug 15
Qingci Games Inc. to Report First Half, 2025 Results on Aug 27, 2025 Qingci Games Inc. announced that they will report first half, 2025 results on Aug 27, 2025 Annonce • Mar 27
Qingci Games Inc., Annual General Meeting, Jun 06, 2025 Qingci Games Inc., Annual General Meeting, Jun 06, 2025. Annonce • Mar 14
Qingci Games Inc. to Report Fiscal Year 2024 Results on Mar 27, 2025 Qingci Games Inc. announced that they will report fiscal year 2024 results on Mar 27, 2025 Reported Earnings • Sep 25
First half 2024 earnings released: EPS: CN¥0.065 (vs CN¥0.06 in 1H 2023) First half 2024 results: EPS: CN¥0.065 (up from CN¥0.06 in 1H 2023). Revenue: CN¥342.6m (up 2.6% from 1H 2023). Net income: CN¥45.1m (up 8.6% from 1H 2023). Profit margin: 13% (in line with 1H 2023). Revenue is forecast to grow 55% p.a. on average during the next 2 years, compared to a 5.2% growth forecast for the Entertainment industry in Germany. Annonce • Aug 09
Qingci Games Inc. to Report Q2, 2024 Results on Aug 22, 2024 Qingci Games Inc. announced that they will report Q2, 2024 results on Aug 22, 2024 Annonce • Mar 27
Qingci Games Inc., Annual General Meeting, Jun 06, 2024 Qingci Games Inc., Annual General Meeting, Jun 06, 2024. Reported Earnings • Mar 26
Full year 2023 earnings released: CN¥0.05 loss per share (vs CN¥0.073 profit in FY 2022) Full year 2023 results: CN¥0.05 loss per share (down from CN¥0.073 profit in FY 2022). Revenue: CN¥905.7m (up 44% from FY 2022). Net loss: CN¥37.4m (down 174% from profit in FY 2022). Revenue is forecast to grow 49% p.a. on average during the next 2 years, compared to a 8.6% growth forecast for the Entertainment industry in Europe. Annonce • Mar 15
Qingci Games Inc. to Report Fiscal Year 2023 Results on Mar 26, 2024 Qingci Games Inc. announced that they will report fiscal year 2023 results on Mar 26, 2024 Board Change • Dec 27
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. No experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). CEO & Executive Director Zhiqiang Huang is the most experienced director on the board, commencing their role in 2021. Independent Non-Executive Director Yuan Yuan was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. New Risk • Nov 14
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 7.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (73% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (7.6% average weekly change). Annonce • Oct 18
Qingci Games Inc. Announces Board and Committee Changes Qingci Games Inc. announced that with effect from October 17, 2023, Mr. Zhang Longgen has resigned as an independent non-executive Director in order to devote more time to other personal commitments. Accordingly, Mr. Zhang has ceased to be the chairman of the audit committee under the Board and a member of the remuneration committee under the Board. With effect from October 17, 2023, Mr. Yuan Yuan ("Mr. Yuan") has been appointed as an independent non-executive Director, the chairman of the Audit Committee and a member of the Remuneration Committee. The biographical details of Mr. Yuan are set out below. Mr. Yuan Yuan, aged 40, has about 13 years of experience in the finance and securities industry. Mr. Yuan worked at the China Securities Regulatory Commission as a postdoctoral researcher from May 2012 to March 2016. From March 2016 to July 2017, he worked at Soochow Securities Co. Ltd., serving simultaneously as the chief strategist, the executive deputy director of the research department, and a member of the internal verification committee. Subsequently, he worked at Huafu Securities Co. Ltd., serving simultaneously as the managing director, the deputy head of the investment banking business committee, and the general manager of the equities investment banking division from July 2017 to May 2020. Mr. Yuan has served as the managing director of Zhong De Securities Company Limited since May 2020. Mr. Yuan obtained a doctorate degree in accountancy from the Shanghai University of Finance and Economics in 2012 and engaged in postdoctoral research in applied economics in Tsinghua University, he possesses the relevant expertise required under Rule 3.10(2) of the Rules Governing the Listing of Securities on the Stock Exchange. Mr. Yuan is currently an independent non-executive director of China New City Commercial Development Limited and an independent director of Leo Group Co. Ltd., Xinjiang Daqo New Energy Co. Ltd. and Jiangsu Suzhou Rural Commercial Bank Co. Ltd. As a result of the resignation and appointment of Directors as disclosed above, the composition of the Audit Committee and the Remuneration Committee will be changed as follows, with effect from October 17, 2023: Audit Committee Mr. Zhang has ceased to be the chairman (and a member) of the Audit Committee and Mr. Yuan has been appointed as the chairman (and a member) of the Audit Committee. Remuneration Committee Mr. Zhang has ceased to be a member of the Remuneration Committee and Mr. Yuan has been appointed as a member of the Remuneration Committee. New Risk • Sep 24
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 73% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (73% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (6.1% average weekly change). Reported Earnings • Aug 25
First half 2023 earnings released: EPS: CN¥0.06 (vs CN¥0.11 loss in 1H 2022) First half 2023 results: EPS: CN¥0.06 (up from CN¥0.11 loss in 1H 2022). Revenue: CN¥333.9m (up 25% from 1H 2022). Net income: CN¥41.5m (up CN¥117.2m from 1H 2022). Profit margin: 12% (up from net loss in 1H 2022). The move to profitability was primarily driven by higher revenue. Revenue is forecast to grow 40% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Entertainment industry in Germany. Annonce • Aug 12
Qingci Games Inc. to Report First Half, 2023 Results on Aug 24, 2023 Qingci Games Inc. announced that they will report first half, 2023 results on Aug 24, 2023 New Risk • Jul 19
New major risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 8.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (44% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (8.9% average weekly change). Annonce • Jun 07
Qingci Games Inc. Announces Management Changes Qingci Games Inc. announced that Ms. So Shuk Yi Betty ("Ms. So") has tendered her resignation as a joint company secretary of the Company and has ceased to act as an authorised representative of the Company under Rule 3.05 of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and the process agent of the Company in Hong Kong for the purpose of accepting service of process and notices on its behalf in Hong Kong under Part 16 of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) with effect from June 6, 2023. The Board further announced that Ms. Yung Mei Yee ("Ms. Yung") has been appointed as the Joint Company Secretary, Authorised Representative and Process Agent with effect from June 6, 2023. After the aforesaid changes, Mr. Zhu Chengyin ("Mr. Zhu") will continue to serve as the other Joint Company Secretary. Mr. Zhu Chengyin, aged 32, has served as a Joint Company Secretary and the director of capital markets of the Group since May 2021 and November 2020, respectively. Before joining the Group, Mr. Zhu joined China Securities Co. Ltd. in July 2015. He was a vice president of the investment banking division and he left in November 2020. Mr. Zhu received his bachelor's degree in business administration and master's degree in law from Shanghai Lixin University of Accounting and Finance and Fudan University, in July 2012 and June 2015, respectively. Mr. Zhu obtained the legal professional qualification from the Ministry of Justice of the People's Republic of China in March 2013 and qualification for sponsor representatives from the Securities Association of China in February 2020. In addition, Mr. Zhu received the certificate for passing all the required subjects of The National Uniform CPA Examination of the PRC, awarded by the Certified Public Accountant Examination Committee of the Ministry of Finance, PRC in December 2019. Ms. Yung Mei Yee is a vice president of SWCS Corporate Services Group (Hong Kong) Limited. Ms. Yung has over 20 years of experience in handling company secretarial, corporate governance and compliance affairs of listed companies. Ms. Yung has held various senior company secretarial positions in and acted as the company secretary or joint company secretary of a number of companies listed on the Hong Kong Stock Exchange. She is a fellow of The Hong Kong Chartered Governance Institute and The Chartered Governance Institute in the United Kingdom. She obtained a bachelor's degree of arts in accountancy and a master's degree of arts in language and law from the City University of Hong Kong, and a bachelor's degree of laws from the University of London. Reported Earnings • Mar 29
Full year 2022 earnings released Full year 2022 results: Revenue: CN¥630.4m (down 43% from FY 2021). Net income: CN¥50.3m (up CN¥418.9m from FY 2021). Profit margin: 8.0% (up from net loss in FY 2021). Revenue is forecast to grow 56% p.a. on average during the next 2 years, compared to a 4.7% growth forecast for the Entertainment industry in Germany. Board Change • Nov 22
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. No experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). CEO & Executive Director Zhiqiang Huang is the most experienced director on the board, commencing their role in 2021. Independent Non Executive Director Longgen Zhang was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Board Change • Sep 29
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. No experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). CEO & Executive Director Zhiqiang Huang is the most experienced director on the board, commencing their role in 2021. Independent Non Executive Director Longgen Zhang was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Buying Opportunity • Sep 09
Now 23% undervalued Over the last 90 days, the stock is up 48%. The fair value is estimated to be €0.93, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 68% over the last year. Meanwhile, the company became loss making. Reported Earnings • Aug 24
First half 2022 earnings released: CN¥0.11 loss per share (vs CN¥9.84 loss in 1H 2021) First half 2022 results: CN¥0.11 loss per share (up from CN¥9.84 loss in 1H 2021). Revenue: CN¥268.1m (down 65% from 1H 2021). Net loss: CN¥75.7m (loss narrowed 19% from 1H 2021). Over the next year, revenue is forecast to grow 212%, compared to a 90,133% growth forecast for the Entertainment industry in Germany. Annonce • Aug 12
Qingci Games Inc. to Report First Half, 2022 Results on Aug 23, 2022 Qingci Games Inc. announced that they will report first half, 2022 results on Aug 23, 2022 Annonce • Aug 02
Qingci Games Inc. Provides Earnings Guidance for the Six Months Ended June 30, 2022 Qingci Games Inc. provided earnings guidance for the six months ended June 30, 2022. For the period, the company expects to record a revenue for the Reporting Period ranging from approximately RMB 250 million to RMB 270 million, as compared to the revenue of approximately RMB763 million for the six months ended June 30, 2021. It is expected that an adjusted net loss ranging from approximately RMB 60 million to RMB 90 million will be recorded, as compared to the adjusted net profit of approximately RMB313.7 million for the six months ended June 30, 2021. The expected turnaround from adjusted net profit to adjusted net loss was primarily attributable to the decrease in revenue as the landmark games reached mature stage of their life cycles; marketing expenses incurred from intensive marketing and promotion since the launching of The Marvelous Snail on June 8, 2022 in Japan which is yet to be fully offset by revenue generated during the Reporting Period due to relatively short game duration after launch; and the Group continuing to increase research and development investment for its pipeline games, including the increase in the number of employees engaging in research and development activities and the corresponding increase in employee benefits expenses. Based on the application of International Financial Reporting Standards ("IFRS"), the Companyrecorded net loss ranging from approximately RMB 60 million to RMB 90 million during theReporting Period as compared to a net loss of approximately RMB 93.8 million for the sixmonths ended June 30, 2021. The main reasons for the loss during the Reporting Period werein consistent with the above-mentioned reasons for the adjusted net loss. In addition, the mainfactors that led to the loss in the same period last year including changes in fair value ofconvertible redeemable preference shares; and financial instruments issued to investors,which led to total losses of approximately RMB 392 million for the same period last year werenot applicable during the Reporting Period. Annonce • Jun 07
Qingci Games Inc. Approves Final Dividend for the Year Ended 31 December 2021, Payable on July 29, 2022 Qingci Games Inc. announced that at the AGM held on June 6, 2022 approved to pay to the shareholders of the Company a final dividend of HK 15.2 cents per ordinary share of the Company for the year ended 31 December 2021. It will be paid on July 29, 2022 to the shareholders of the Company whose names appear on the register of members of the Company on June 16, 2022. The register of members of the Company will be closed from June 14, 2022 to June 16, 2022 (both days inclusive), during which no transfer of shares will be registered. Reported Earnings • Apr 28
Full year 2021 earnings released: CN¥0.96 loss per share (vs CN¥10.89 profit in FY 2020) Full year 2021 results: CN¥0.96 loss per share (down from CN¥10.89 profit in FY 2020). Revenue: CN¥1.11b (down 9.9% from FY 2020). Net loss: CN¥368.6m (down 455% from profit in FY 2020). Over the next year, revenue is forecast to grow 48%, compared to a 181% growth forecast for the industry in Germany. Board Change • Apr 28
Less than half of directors are independent There are 7 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 7 new directors. No experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). CEO & Executive Director Zhiqiang Huang is the most experienced director on the board, commencing their role in 2021. Independent Non Executive Director Longgen Zhang was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Annonce • Feb 28
Qingci Games Inc. Provides Earnings Guidance for the Year Ended December 31, 2021 Qingci Games Inc. provided earnings guidance for the year ended December 31, 2021. The expected to record a decrease in net profit of not less than 400%, from net profit of approximately RMB 103.7 million for the year ended December 31, 2020 to a net loss in the range of approximately RMB 350 million to RMB 375 million for the year ended December 31, 2021, which was mainly attributable to changes in fair value of convertible redeemable preference shares; and loss from financial instruments issued to investors. The above items combined amounted to approximately RMB 745 million. Valuation Update With 7 Day Price Move • Jan 14
Investor sentiment deteriorated over the past week After last week's 16% share price decline to €1.04, the stock trades at a trailing P/E ratio of 31.4x. Average trailing P/E is 42x in the Entertainment industry in Germany. Board Change • Dec 29
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non Executive Director Longgen Zhang was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. 