NetQin plans to sell Feiliu. A good ending is the best beginning.

Recently, the news that NetQin released on its official website about the sale of Feiliu Games has attracted the attention of netizens. NetQin said that it is considering a proposed transaction with Beijing Jinxinrongda Investment Management Co., Ltd. (a subsidiary of Tsinghua Holdings) and Shanghai Houfeng Investment Co., Ltd. (the controlling shareholder of Gansu Huangtai Wine Co., Ltd.). Gansu Huangtai Wine Co., Ltd. plans to acquire 100% of the equity of Feiliu Jiutian Technology Co., Ltd., a subsidiary of NetQin, and Feiliu Games is expected to be listed through a backdoor listing. However, the parties have not yet reached any final agreement on the proposed transaction.

Feiliu, a pragmatic person in mobile game publishing

The key to whether this transaction can be successfully completed is the recognition of Feiliu's business by the industry and the public. Judging from the current data, Feiliu has delivered excellent results in terms of market share and contribution to the financial revenue of NetQin Group.

According to the data from the "2015 Q4 China Mobile Game Market Quarterly Monitoring Report" released by Analysys, Feiliu Games has obtained a 6.3% market share in the mobile game publishers' full-platform market, ranking 6th, one place higher than Q3. In the Android market, Feiliu has a 3.5% share, ranking 7th. On the iOS platform, Feiliu Games continues to maintain its advantage, rising from 4th in Q3 to 3rd. Such achievements are a concentrated reflection of Feiliu Games' rich IP resource reserves, diverse distribution channels, and superb market operation capabilities.

Feiliu Games also created high revenue for NetQin. According to NetQin's third quarter financial report for 2015, Feiliu Games' revenue increased by 40.0% year-on-year, which was one of the main drivers of NetQin's mobile value-added service revenue growth.

If the transaction can be successfully completed, Feiliu Games will be able to obtain funds to further expand in domestic and overseas markets.

Let go in order to move forward better

The sale of Feiliu not only reflects the public's capital recognition of Feiliu's games and platform business itself, but is also of great significance to the entire NetQin Group.

First of all, the ability to sell its assets proves the value of NetQin. After experiencing the March 15 incident, short selling by Muddy Waters, malicious suppression by rivals and other "disasters", NetQin has been undervalued by the capital market despite its successful performance in recent years. If the sale is completed, it will bring greater benefits to shareholders.

Secondly, the sale of Feiliu is an important part of NetQin's transformation process. Focusing on one thing will lead to excellence, while splitting up will lead to failure. In May 2015, NetQin released the "N+Q Blueberry" strategy, launched the "Xiuse Entertainment" independent sub-brand, and announced that it would shift its business focus to mobile entertainment in the future.

Just five months after launching the new strategy, we have seen the results of NetQin's transformation. According to NetQin's unaudited financial report for the third quarter of 2015, mobile entertainment revenue has increased significantly, with the revenue of the Showse live broadcast business increasing by more than 6 times year-on-year. After selling Feiliu, NetQin will be able to obtain more funds and better focus on the development of mobile entertainment business.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.