Premium of 87%! "Esports tycoon" Zhu Yihang spent HKD 168 million to complete a 1 billion shares private placement for CMGE, increasing his stake to 9.68%

According to the Wise Finance APP, on July 22, CMGE (00302) announced that Yuanfu Investment had subscribed for 100 million shares of the company at HKD 1.68 per share, with Mr. Zhu Yihang ultimately owning the entire Yuanfu Investment. The subscribed shares account for 3.51% of the issued shares after completion. Following this private placement, Zhu Yihang's holdings in CMGE have increased to 276 million shares, raising his ownership stake to 9.68%.

Yuanfu Investment serves as Zhu Yihang's investment platform in the gaming industry, as early as April 2021, he participated in the investment in CMGE as a strategic investor alongside Bilibili and Shengtian Network. In April this year, Zhu Yihang further increased his investment in the company, appointing Jiang Yukai as the Director of Investment Management at Zhujiang Investment Management to join the company's board of directors, becoming a key member in operations and major decision-making, with Zhujiang Investment Management being controlled by Zhu Yihang. The Hong Kong Stock Exchange data shows that Zhu Yihang continued to increase his holdings in June, demonstrating his high recognition of the company's value.

It is reported that Zhu Yihang is a true e-sports tycoon, founding the EDG e-sports club in September 2013 due to his passion for e-sports. In 2016, he established the Super Competitive Group, expanding his investment footprint in e-sports and venturing into e-sports education, e-sports-themed industrial parks, MCN agencies, and anime IP entertainment sectors, aiming to create a comprehensive enterprise in e-sports gaming and entertainment.

In recent years, AI has penetrated various industries in software and hardware, with gaming being the most scalable application scenario. AI games are in the early stages, with a future full of imaginative possibilities.

Relying on its strong IP resources, CMGE continues to exert efforts in IP game development and global distribution, self-owned IP operations, and the Guofeng Metaverse platform. With steady performance growth, the company has shown resilience even during the game license issuance suspension period. Expectations for the growth of authorized and self-owned IPs in 2023, as well as industry and company prospects in 2024, are optimistic.

Several heavyweight new games under CMGE have recently been launched or tested. Among them, "Battle Through the Heavens: Peak Showdown" achieved outstanding results on the day of its release on June 7, ranking in the top two of the App Store's free list and receiving excellent recommendations from the Hardcore Alliance. In addition, in December last year, "New Chinese Paladin: Sword of Love" developed by CMGE was launched in the Greater China region, with media speculating that overseas revenue for New Chinese Paladin in the first quarter of this year could reach $20.46 million.

It is worth noting that AI games are rapidly penetrating the market. According to Gamma Data, among the top 50 gaming companies in China by revenue, 48% have established professional AI teams or laboratories to explore and advance AI technology development. However, there are not many games in the market that integrate AI applications. Leveraging its rich IP advantages, CMGE is building an AI content intelligence engine, such as the extensive use of AIGC technology in the development of "Chinese Paladin World". Guotou Securities previously pointed out that the launch of new games will help boost the company's performance steadily, while the company continues to deepen its global layout to maximize the IP's commercial value