The goodwill of the three invested companies is impaired, and Ourpalm Co.Ltd(300315) (300315. SZ) has an advance loss of at least 1 billion yuan in 2021.
On January 27, Ourpalm Co.Ltd(300315) received a letter of concern from the Shenzhen Stock Exchange, asking to explain the specific content and amount range of the provision for goodwill impairment this time, whether the provision for goodwill impairment in previous years was sufficient, and whether there were a series of problems such as adjusting profits through large provision for goodwill impairment.
On January 26, Ourpalm Co.Ltd(300315) released the performance forecast for 2021. Due to the obvious decline in the performance of the three invested companies, in this performance forecast calculation, it is estimated that the goodwill impairment provision related to the invested company is RMB 1.2 billion-1.45 billion, and the company’s expected loss is RMB 1 billion-1.4 billion, from profit to loss.
Ourpalm Co.Ltd(300315) the relevant person said in an interview with the reporter of Huaxia times on January 27, “these three companies are mainly engaged in the research and development of games, and Tianma space-time incidental distribution. The research and development of games has been delayed, and the test results are not very ideal, resulting in the delay of listing and affecting the current profits.”
letter of concern for large loss of goodwill impairment
Ourpalm Co.Ltd(300315) in 2021, the net profit attributable to shareholders of listed companies is expected to be – 1 billion yuan – – 1.4 billion yuan, compared with 317 million yuan in the same period of last year, from profit to loss.
According to the explanation of Ourpalm Co.Ltd(300315) in the announcement, in 2021, the performance of some invested companies decreased significantly, and there were many adverse situations, such as far lower expectations of test data of game products, large investment in new product exploration, slow return and delayed product launch time. It is predicted that the valuation of these invested companies will decline greatly. In this performance forecast calculation, It is estimated that the provision for goodwill impairment related to the invested company is RMB 1.200 billion to RMB 1.45 billion, resulting in the company’s performance loss in the current year.
The three invested companies mentioned in Ourpalm Co.Ltd(300315) are Beijing Tianma spacetime Network Technology Co., Ltd. (hereinafter referred to as “Tianma spacetime”), Beijing playing crab Technology Co., Ltd. (hereinafter referred to as “playing crab technology”) and upstream information technology (Shanghai) Co., Ltd. (hereinafter referred to as “upstream information”).
The above Ourpalm Co.Ltd(300315) people told our reporter that Tianma spacetime, playing crab technology and upstream information are important subsidiaries of Ourpalm Co.Ltd(300315) technology and the main source of the company’s performance. In the future, the company will integrate resources and strive to upgrade some product categories. It will mainly focus on the breakthrough of SLG products, and will certainly launch more game products in the future.
According to the reporter, Ourpalm Co.Ltd(300315) formed a goodwill of 5.595 billion yuan due to the acquisition of dynamic network pioneer, upstream information, crab playing technology and Tianma spacetime. In 2020, only 330 million yuan of goodwill impairment provision was made for Tianma spacetime.
In this regard, Shenzhen stock exchange sent a letter of concern to Ourpalm Co.Ltd(300315) , asking it to explain the specific content and amount range of the provision for goodwill impairment, and supplement the specific time point of relevant goodwill impairment signs in combination with the production, operation and performance of relevant subsidiaries in the last three years, so as to determine whether the provision for goodwill impairment in the previous year is sufficient, Whether there is a case of adjusting profits by making large provision for goodwill impairment.
Shenzhen Stock Exchange also requires Ourpalm Co.Ltd(300315) to supplement the key assumptions, selected main parameters and calculation process of this goodwill impairment test, and the reasons and rationality of significant changes in relevant assumptions and parameter selection compared with the previous year.
“Because the impairment of goodwill will be tested at the end of each year, this year is the issuance of game products and the failure to mention expectations in the test, which will affect the performance this year.” The above Ourpalm Co.Ltd(300315) person also said that at the beginning of this year, it is expected that each company will launch 1-2 games this year. Perhaps by the end of this year, the game will be constantly tested, and the test results are somewhat lower than expected. The subsequent issuance may be delayed, which will certainly have an impact on the current profit contribution.
Ourpalm Co.Ltd(300315) the contribution of non recurring profit and loss to net profit in 2021 is expected to be – 30 million yuan – 0, mainly due to the changes in the fair value of financial assets measured at fair value and whose changes are included in the current profit and loss.
In addition, Ourpalm Co.Ltd(300315) said in the announcement that as of the end of the reporting period, the company had monetary capital of 2.4 billion yuan, low asset liability ratio and abundant cash stock, which can effectively support the transformation of existing business and the exploration of new directions in the future.
adjustment and variation
In response to market changes, Ourpalm Co.Ltd(300315) will comprehensively integrate resources and improve business strategies within the group in the future.
Ourpalm Co.Ltd(300315) said that in terms of game business, the company will streamline product types, focus on breaking through SLG game products under research, vigorously expand overseas markets and enhance overseas market share.
For game companies going to sea, some analysts of securities companies who do not want to be named told the Huaxia times in January this year that game going to sea is the choice of most game companies in China. For small game companies, the concentration of China’s game market is too high. Tencent Netease accounts for about 80% of the market share, so it is an inevitable choice to look for an incremental market overseas.
“China’s overall game environment is not very good. In 2021, many game supervision policies were issued, and the national level also encouraged games to go to sea, which is not limited by the version number.” The analysts also said.
According to the reporter of Huaxia times, Ourpalm Co.Ltd(300315) new products will be released successively in 2022. The national Miracle 2, which was released in the mainland in 2021, has been released in Hong Kong, Macao and Taiwan on January 13 this year; On January 20, Ourpalm Co.Ltd(300315) released “the tide of darkness” in the mainland, and new products will be launched one after another in the later stage.
According to the third quarterly report of 2021, Nyingchi Tencent Technology Co., Ltd. is the third largest shareholder of Ourpalm Co.Ltd(300315) with a shareholding ratio of 3.97%. In addition to its shares in Ourpalm Co.Ltd(300315) , Tencent also has business dealings with Ourpalm Co.Ltd(300315) .
The above Ourpalm Co.Ltd(300315) stakeholders told our reporter that the company has cooperation with large manufacturers, and the company will cooperate more with Tencent, because the company is mainly engaged in game research and development, Tencent will undertake the distribution of some of the company’s games, and some of the company’s more popular game products, such as boxing emperor “Heroes and invincibles” and the recent “national Miracle 2” are distributed by Tencent in mainland China.
In addition to focusing on the main business, Ourpalm Co.Ltd(300315) is also actively promoting the strategic investment layout. Ourpalm Co.Ltd(300315) said in the announcement, “The company has paid active attention to new technologies, Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) Development opportunities in the field will explore new business directions outside the game business in combination with the company’s existing resources, so as to find new growth points for the company’s business development. In addition, the company will also obtain information and resources in the field of relevant emerging science and technology industries through the investment fund jointly invested and established with professional institutions, so as to find development opportunities in the direction of emerging industries. “
In December 2021, Ourpalm Co.Ltd(300315) announced that the company and its subsidiaries planned to jointly invest with Shenzhen Venture Capital Xia fund management enterprise (limited partnership) (hereinafter referred to as “venture capital Xia”) to establish Qingdao Zhangming Yuanxi equity investment partnership (limited partnership) (tentative name, subject to the name reviewed by the administrative department for Industry and commerce, hereinafter referred to as “Zhangming Yuanxi”).
According to the reporter, the venture capitalist is the fund manager, general partner and executive partner of Zhang mingyuanxi. Tianjin zhangqu, a wholly-owned subsidiary of Ourpalm Co.Ltd(300315) , as the general partner, subscribed the corresponding capital contribution with its own capital of 1 million yuan; As a limited partner, Ourpalm Co.Ltd(300315) subscribed for the corresponding capital contribution with its own capital of 96 million yuan.
For the joint investment and fund establishment with professional institutions, Ourpalm Co.Ltd(300315) said that the joint investment and fund establishment between the company and professional institutions will help the company obtain information and resources in emerging technology industries such as semiconductor, communication, basic software and industrial chain, screen, reserve and cultivate high-quality target assets for subsequent industrial layout, and grasp market development opportunities, Find new growth points for the company’s business development and strength improvement, and promote the sustainable and healthy development of the company.
