On January 12, Kingnet announced that its wholly-owned subsidiary Shanghai Kingnet Network Technology Co. Ltd. (Shanghai Kingnet) and Shengqu Information Technology (Shanghai) Co., Ltd. (Shengqu Games) signed the agreement on furthering strategic cooperation. On the basis of strong mutual trust between the two entities and their market advantages, and under the principle of "reciprocity, mutual benefit, stability and high efficiency", the two companies will establish profound collaboration in multiple fields, particularly IP resources, including but not limited to the exclusive collaboration in mobile games and PC games under some of the IPs.
Shengqu Games is a world-leading online games developer, operator and publisher that has released and operated many famous quality games. Positioning itself in the new cultural industry defined by "technology empowered culture", Shengqu Games executes the three strategies including "high quality", "globalization" and "new culture", develops the cultural industry by using the power of high technology, and strives to become a technological and cultural enterprise that offers the ultimate interactive experience.
Kingnet always persists in "focus on the main business of game" as its core strategy for corporate development, follows the principle of creating quality games that meet the market demand, operates three business systems including R&D, publishing and investment + IP, continuously provides users with quality contents and services and fulfilling gaming experience, and strives to be an outstanding listed online game company. Shanghai Kingnet is a core wholly-owned subsidiary of Kingnet, and its main business covers R&D, operation and publishing of the quality entertainment contents including mobile game, webgame and PC game.
The two entities started their strategic partnership in IP games from 2018. The agreement on furthering strategic cooperation will allow both parties to adequately tap their advantages in the market and provide the counterparties and their customers with high-quality, efficient and customized services. By furthering their strategic cooperation, optimizing their cooperation strategy and strengthening the strategic mutual trust, both parties will enhance their efficiency in games R&D and operation, reinforce the good reputation of their enterprises and brands, and create greater commercial value for both.