China News Service, October 29. On the evening of the 29th, Beijing Kunlun Wanwei Technology Co., Ltd. (hereinafter referred to as "Kunlun Wanwei") disclosed the 2020 third quarter report.

In the first three quarters of this year, Kunlun Wanwei achieved operating income of 2.27 billion yuan, realized net profit of 4.175 billion yuan attributable to shareholders of listed companies, a year-on-year increase of 341.62%; realized net profit of 1.222 billion yuan attributable to shareholders of listed companies after deducting non-recurring gains and losses Yuan, a year-on-year increase of 32.34%.

  The financial report shows that Kunlun Wanwei's various businesses have maintained stable and orderly development and maintained strong profitability.

In the third quarter, the company achieved a net profit of 501 million yuan attributable to owners of the parent company, an increase of 40.11% year-on-year, and a non-net profit of 503 million yuan, a year-on-year increase of 45.34%.

  In recent years, after Kunlun Wanwei has transformed into an Internet platform, its gross profit margin has been maintained at around 80%, which is a relatively high level in the industry.

The company said that in the future, it will still focus on the segmented Internet industry with higher gross profit margins to achieve a breakthrough from quantitative change to qualitative change.

  In addition, Kunlun Wanwei disclosed a major asset restructuring on October 26, and plans to acquire 8.47% equity in Opera, a Nasdaq listed company.

After the transaction is completed, Kunlun Wanwei will include Opera in the scope of the consolidated statement, and the scale of assets will be expanded.

At the same time, through Opera's global traffic portal, the two parties have achieved synergy in Internet platform products, technology and market experience, further enriching the product and business matrix, giving full play to network effects, and enhancing core competitiveness.

Business develops steadily, with bright products coming out frequently

  During the reporting period, GameArk continued to expand its self-developed game business, and its revenue structure tilted toward self-developed games with higher profit margins, enabling the business segment to maintain a relatively stable profitability.

  Among them, "The Legend of Sword and Fairy" was released in mainland China at the end of March, and was launched in Hong Kong, Macao and Taiwan in the third quarter.

"BLEACH Realm-Soul Awakening: Grim Reaper", jointly developed by Kunlun Wanwei's game platform GameArk and Japan's KLabGames, was officially launched in Japan, and won the first place in the Japanese App Store free game list.

  After landing on the Japanese market in mid-September, "BLEACH Realm-Soul Awakening: Grim Reaper" was open for pre-download on the 16th and topped the Japanese App Store download list for 8 hours, and topped the Japanese Google Play download list on the 18th.

  At the same time, GameArk's other veteran games continue to maintain stable operations, and new game projects are also in the development and incubation stage, and are expected to be launched in the first quarter of 2021.

  After the domestic epidemic has stabilized, the income of leisure and mutual entertainment has returned to normal. At the same time, it actively implements platform-based development ideas, expands the advertising business horizontally, further explores the commercial value of users, and increases users' online time and desire to pay, making the revenue model of leisure and mutual entertainment more Multiple.

  By continuing to maintain rapid development and continuous innovation on the road of an integrated entertainment platform, Xianlai Mutual Entertainment’s main business board games and commercial services have made great progress.

Acquire Opera, continue to push forward the strategy

  It is worth noting that Kunlun Wanwei announced a major asset reorganization on October 26, intending to acquire 8.47% of the Nasdaq listed company Opera for US$80.14 million.

After the completion of the transaction, the company will maintain a 53.88% stake in Opera through its wholly-owned subsidiary Hong Kong Wanwei, and Opera will be included in the consolidated financial statements by Kunlun Wanwei.

  Jin Tian, ​​chairman of Kunlun Wanwei, said in an investor exchange that Opera is still in a stage of rapid growth.

The Opera team's R&D and innovation capabilities are very strong. Their integration can effectively enhance the overseas synergy of the company's various business sectors, focus on the future, and open up a new development space for the company to achieve sustainable and healthy development.

  Opera is the world's number one Internet product, and it has a certain influence in the field of AI-driven information flow content.

The inclusion of Opera means that Kunlun Wanwei has further clarified and strengthened its positioning as a global integrated Internet platform company.

  In the past five years, Kunlun Wanwei has been steadily engaged in the field of Internet platforms, and its business matrix has been advancing simultaneously.

The company's main business layout has gradually expanded from a game platform to an Internet platform for leisure, entertainment, social networking and information applications.

With the inclusion of Opera this time, Kunlun Wanwei will rise to become the world's leading Internet platform company and achieve "5 years and 3 advancements".

  Since its listing, Kunlun Wanwei has steadily promoted its Internet business matrix step by step.

Bringing Opera into the scope of control this time will help to enhance Kunlun Wanwei’s ability to continue operating and increase the company’s asset scale, enabling the company to form a multi-business matrix of “gaming platform + social platform + content distribution platform”, and leverage the synergies of each sector to further Improve the company's industry status and operating performance.

  Based on the mature operation model of the domestic Internet and years of experience overseas, Kunlun Wanwei's move can better empower its own experience in the global Internet emerging market, seize development opportunities, and achieve another advancement in the company's development.