HONG KONG--(BUSINESS WIRE)--Xingye Copper International Group Limited (“Xingye Copper” or the “Company” and its subsidiaries, collectively the “Group”, HKEx: 505), one of the leading high precision producers of copper plates and strips in the PRC, announced that, the Group conditionally agreed to acquire the entire issued share capital of Hefei Zhangyue Network Technology Co., Ltd. (“Hefei Zhangyue”), an internet and mobile gaming products development company in the PRC, at the consideration of approximately HK$186 million, which shall be satisfied as to HKD116 million in cash; and as to approximately HK$70 million by issuance of consideration shares at an issue price of HK$0.9 per consideration share, that is approximately 8.75% of the issued share capital of the Company as enlarged by the allotment and issue of the Consideration Shares.
Hefei Zhangyue and its subsidiary are principally engaged in the development, distribution and operation of internet and mobile gaming products. The founders and key employees are experienced game producers, which have developed and operated many popular internet web games, including《逍遙三國志》、《絕地戰爭》、《海神》and etc. Of which 《熱血江湖傳》(“Scions of Fate”), has experienced promising growth in many key indicators of the game since its initial launch on the Tencent online web game platform in October 2015. As of the end of April 2016, the aggregated total registered players of Scions of Fate was over 13 million. The maximum number of players online simultaneously has reached 50,000. The recharge value of the game for the first quarter of 2016 was approximately RMB52.2 million.
Meanwhile, Hefei Zhangyue and its subsidiary have been cooperating with various domestic and overseas online game platforms in developing its gaming products. Their first self-developed web games product 《王者之路》(“Lords Road”), was introduced to the oversea market in August 2015. As of the end of April 2016, the total registered players of the Lords Road has reached 1.3 million. It is expected that Hefei Zhangyue will continue to expand its oversea deployment by launching another self-developed game 《眾神大陸》 (“the Gods”) in 2016.
The founders and key employees of the Hefei Zhangyue would be retained after the Completion for an initial term of 5 years. There are performance targets attached to the agreement, in which Hefei Zhangyue shall achieve the performance target in terms of Net Income, which are RMB 18 million in Year 2016, RMB 22 million in Year 2017 and RMB 30 million in Year 2018 respectively.
Mr. Hu Minglie, CEO of the Group said that, “There exists a promising growth potential of internet and mobile gaming products in the PRC driven by the prevalence of the use of smartphones and tablet computers. Hefei Zhangyue has an established business with good track record in developing internet and mobile gaming products and an experienced team in the internet and mobile gaming industry. We believe that it will continue to grow in market penetration. The proposed acquisition will definitely help to diversify the Group’s existing business portfolio into new line of business with growth potential, reduce overall risk profile, and broaden our source of income and eventually to enhance the value of shareholders and investors.”
About Xingye Copper International Group Limited
Xingye Copper International Group Limited (HKEx: 0505) is one of the leading high precision producers of copper plates and strips in the PRC. The Group mainly engaged in manufacturing and sales of high precision copper plates and strips, trading of raw materials, provision of processing services. It has been proactively looking for potential acquisition opportunities in the internet and mobile gaming industry.