On April 29, 2022, Hero Interactive Entertainment released its 2021 financial report, and the operating income of Hero Interactive Entertainment in 2021 was 1.606 billion yuan, an increase of 6.35% year-on-year.
In 2021, affected by the market environment and other factors, the overall growth rate of game companies slowed down, according to the "2021 China Game Industry Report" released by the China Music and Data Association, the actual sales revenue of China's game market in 2021 was 296.513 billion yuan, an increase of 17.826 billion yuan over 2020, an increase of 6.4% year-on-year. From this point of view, the overall revenue growth rate performance of Hero Interactive Entertainment in 2021 is in line with expectations.
In addition to operating income, in 2021, Hero Interactive Entertainment deducted a non-net profit loss of 1.53 billion yuan, for the reason for this loss, Hero Interactive Entertainment said in the financial report that the main reason was the increase in the impairment of goodwill, while the increase in labor costs.
Specifically, the impairment of goodwill of about 1.22 billion yuan in 2021 was the main reason for the loss. In addition, due to the increase in R&D expenses and other factors, in 2021, the R&D expenses of Hero Interactive Entertainment reached 436 million yuan, an increase of 89.17% over 2020. Cai Yue, CFO of Hero Interactive Entertainment, said that at present, the company has transformed into a research and development company during the reporting period, and it is researching a number of different types of high-quality games.
At present, Hero Interactive Entertainment has ten self-developed studios, among which the self-developed products that have been published are "Wind And Color Fantasy: Legend of Destiny" and "Create It!" Our Planet" "AfterBreach" and a high-quality content game exposed by its Panshen Studio on Weibo this year, etc., "Wind Fantasy: Legend of Destiny" has received a version number in July 2021, and is expected to be launched in Q3 this year. "Our Planet" also landed on Tencent Games' annual conference during the reporting period and announced that it will be released by Tencent Games Agency.
Wind Fantasy: Legend of Destiny
Create! Our Planet
A high-quality content game developed by PanShen Studios
From the TapTap platform, "Wind Color Fantasy: Legend of Destiny" currently has a rating of 8.6 points and 328,000 reservations; "Create It!" "Our Planet" currently has a rating of 8.4 points, the number of reservations is 317,000, and both products are relatively high-quality from the perspective of picture performance and user evaluation. With the successive launch of future reserve products, Hero Interactive Entertainment will be steadily released in performance.
In addition to the above two self-developed products, the "Extreme Matchless 2" developed by hero mutual entertainment investment company Titanium Core Interactive has been launched in Southeast Asia in March this year, and the "Ming tide" developed by Kulo Games has also registered a social platform recently, and it seems that it is already preparing for the exposure plan, based on the production level of Kulo's previous game "Battle Double Pamish", "Ming tide" is also worth looking forward to.
Analysys Interactive Entertainment analyst Dong Zhen said that the impairment of goodwill is an important reason for the loss of Hero Interactive Entertainment in 2021, putting aside the goodwill impairment factor, Hero Interactive Entertainment in 2021 in terms of revenue growth rate in line with expectations, and with the company's transformation of research and development, research and development expenses further increased to a new high, the fundamentals are good, and the goodwill impairment will also promote the overall assets of Hero Interactive Entertainment to develop in the direction of quality, for the future company's operation, sweeping away potential risks.