HONG KONG, Jan. 7, 2020 /PRNewswire/ -- According to the Q3 2019 report of Boyaa Interactive, as at 30 September 2019, the balance of its cash and cash equivalents amounted to as much as RMB813 million, and the net proceeds from its IPO have been used up.

At the liabilities end, for the nine months ended 30 September 2019, Boyaa Interactive had no short-term or long-term bank loans, or outstanding, spent or unspent bank financings. In addition, it did not have any liability or guarantee that had not been accounted for.

As at 30 September 2019, Boyaa Interactive's current assets stood at approximately RMB1,720 million, including RMB666 million of financial assets at fair value through profit or loss, RMB183 million of term deposits and RMB813 million of cash and cash equivalents.

So far, the judgment sum that Boyaa Interactive may be ordered to pay in an employees' case as mentioned in its announcements is only used for the purpose of idle fund management, which only accounts for a portion of the total idle cash reserves. And the company has sufficient cash reserves available in the other bank accounts for its day-to-day operations.

As shown in its 2018 annual report, Boyaa Interactive recorded revenue of RMB453 million and a net profit of approximately RMB205 million in 2018. These, together with the revenue of RMB246 million achieved during the nine months ended 30 September 2019, are sufficient to support the long-term growth of the company.

"E-sports Games+Going Overseas" Is Believed to Be a Strong Earnings Driver for Boyaa Interactive, as well as a Silver lining for the Gaming Industry

According to its Q3 2019 report, Boyaa Interactive recorded revenue of approximately RMB85 million during the third quarter of 2019, up by around 6.0% from the previous quarter and about 0.4% as compared to the same quarter of last year.

According to Boyaa Interactive's interim results, its revenue in Q2 2019 grew by approximately 0.1% compared to Q1 2019. This shows that the earnings of the company are stabilizing and the impact of the policy risk factor on its revenue is under control.

From an industry perspective, e-sports games are now in the spotlight. As shown in the Gaming Industry Report for H1 2019 released by GPC, China's e-sports market recorded sales revenue of RMB46.5 billion during H1 2019, up 11.3% year-on-year, with fast, stable growth over the past three years.

Since 2015, Boyaa Poker Tournament ("BPT") events have been held in European and Asian cities such as Dublin, Macau, Sanya, Taipei and Ho Chi Minh City, attracting as many as 20 million players from more than 30 countries and regions.

As shown in its Q3 2019 report, Boyaa Interactive is seeing fast growth in overseas revenue, which is far higher than domestic revenue. For the nine months ended 30 September 2019, revenue from the simplified Chinese version of Boyaa games stood at around RMB34.88 million, while revenue from other language versions amounted to approximately RMB211 million, accounting for about 86% of the company's total operating revenue.

The stabilizing revenue means Boyaa Interactive's transformation efforts over the past year have started to produce results. Meanwhile, the increasing overseas revenue and a higher proportion of revenue from mobile games send a message to investors that the company has overcome the three major obstacles in its way.

Where will the Card and Board Game Industry Be Headed after the Wild Growth?

Affected by the policy risk factor, Boyaa Interactive witnessed declines in earnings starting from 2017.

In 2018, the card and board game industry said goodbye to a period of wild growth. Gambling, the problem hidden amid the wild growth, loomed over the industry like the Sword of Damocles. After 2018, due to the enhanced supervision of the government, card and board games have been improving in quality and compliance with regulations.

The number of active users of card and board games has been marginally affected over the years. Despite being elderly, they are loyal and have more money to spend. Therefore, there is huge potential on the card and board game market, waiting to be unlocked properly.

It is believed that in the future, more card and board game firms will follow Boyaa Interactive on the path towards games of higher quality and compliance, as well as mind sports games as a way to improve players' experience and add more fun and diversity to the games.