Why co-publishing might be your best option for entering the Chinese market

Now let's welcome our first keynote speech. Why co-publishing might be your best option for entering the Chinese market. Let's welcome Mr. Mika Lenon on the stage one more time.
Thank you and good morning again and I promise this will be the last time I'm on the stage today. My presentation will be targeted uh at overseas developers who are looking into uh publishing their games in a Chinese market. Why this is important topic is that China is probably the biggest growth opportunity for most of the global game developers who have successful games. China accounts around 30% of the global gaming revenues and yet the market is

largely untapped by overseas developers. Uh there are many reasons for that. Um but it's largely been quite difficult to enter the Chinese market successfully. uh but things are getting gradually better and we see a growing trend of interest towards coming to China and as you can see from the bill character of Hill Glam Racing a game from Finland trend is going fast upwards. This game um has been in the Chinese market since uh 2014, published by us. And as of today, Hill Climb Racing 1 and Hill Climb Racing 2 have accumulated already over 700 million downloads in China Android market alone. So that should give you a pretty good understanding of the scale of opportunity here.

Um, my games uh does not develop any games of our own. We are 100% just focus on bringing overseas games to the market and trying to offer a seamless gaming experiences of global games to the Chinese audiences. We are very proud to work with some of the leading uh western developers like plays, singa, fingersoft, nexers and many others um to bring their experiences to market. So what is co-publishing and why it might be a good good way uh for some of the developers uh to come to the market? There are many different ways uh to get your games to the market. You can for

example sell your game to a Chinese publisher. You can sell your company to a Chinese publisher. You can also uh just hand over the full operations uh of your game uh by licensing agreement uh to a Chinese publishing partner. Uh but the bottom line is that there must be a Chinese publishing partner. Uh that's by by the regulation. We call our service our publishing model co-publishing uh because we involve uh the developer uh heavily in the China operation. So our belief is that modern free-to-play mobile games are very complex devices, complex operations. U and handing over such operation to a completely new team in a

different country is very difficult to do successfully. And that's why uh we believe that the uh original developer of the games who have built the built the game built a team around it and scale it globally are always the best teams to operate the game. So we've built a model where we enable you to be part of operating your game in China. Handing over source code is risky because of uh there's very small chances of truly succeeding in big scale if somebody else just takes over your game and tries to operate it. But it's also of course risky from IP protection point of view. And our model is focused on you keeping your game, operating it, and us bringing

in the local expertise, the local operations that are needed uh to make it successful. We also uh emphasize in our business model high returns for the developers. So coming to China always requires investment. There are um no easy wins here. If you want to be successful in the market, you have to put in effort. You have to put in time and some money. And that's why we offer um the best revenue share model in the industry for developers. uh to build a model where we are perfectly aligned when you know that when you are investing in your success in China market then you will be the one who is also reaping the returns.

There are no easy wins available in China at least not in mobile. If you want your globally successful game to be competitive in the Chinese market, you have to put in effort. That's why we are emphasizing long-term partnerships. We are talking about partnerships of 5 years, 10 years, 20 years uh of scale. There's no point in our opinion to come to China with one year or two years in mind. Um, our co-oping model has been built as a modular package of services where our partners uh can trust that they will always get the same services, same business models for multiple games for years to come. Meaning our partners don't need to go around negotiating new

publishing deal for every single game that they publish, but they can keep investing in the market and build a long-term China entry strategy uh based on our services. We put a lot of emphasize on trust and transparency in the partnership because we know that for any overseas company uh to make significant investments into China market entry and committing to the market for decades there has to be a solid trust as a foundation and that's I with our publishing model uh you will all the time be in full control of what happens to your IP in China, how the game is operated in China. You will see all the real time revenues and and all

the metrics uh and have the final say on what happens uh to your game in the market. I had prepared some slides uh to cover on China market entry ABC um but uh I think we are a little bit short of time so I would like to uh finish it here and uh please feel free to engage with us uh there's our website uh my games team will be here the whole day and in Shanghai our China headquarters is in Shanghai so welcome to visit us uh outside of China Joy Week as well. Thank you very much.