Mobile Entertainment, Inc. (OTCPK: MBEI) is a China-based leading developer of multi-person-networked cell phone games and other wireless entertainment products that are distributed through the largest 2.5G cell phone network in the world.
Strategically located in Guangzhou City of the People's Republic of China, Mobile Entertainment develops and markets the cell phone games to China Mobile Communications Corporation (NYSE: CHL) (“China Mobile”) and China United Telecommunications Corporation (NYSE: CHU) (“China Unicom”); and hence constitutes part of the digital premium content services of the largest 2.5G cell phone network in the globe.
Our game library includes primarily Massive Multiplayer Online Role-Playing Games (“MMORPG”) in one or all of the following versions: (a) WAP 2.0 games; (b) kJava games; and (c) SMS games. Different versions of our games vary in the game interactivity, speed of data transmission and navigation capacities.
We are already off to a strong start in 2008 by negotiating for a larger cut in revenue sharing with China Mobile, launching new games and migrating existing games to kJava version, which are relatively more advanced, powerful, capable, and user-friendly. The Company will also enhance its distribution capacity by building our own game portal site on the mobile Internet of China.
Why Invest in Mobile Entertainment, Inc.?
Mobile Entertainment’s strong growth outlook is supported by the following points:
- Leading Cell Phone Game Developer in China
Our WAP game has generated game players expenses amounted to around US 1.1 million (or RMB 9 million yuan) in 2007, representing approximately 8% share of the overall US 13.8 million (or RMB 110 million yuan) WAP game market in China of that year. We have captured over 4.5 million registered user accounts from one of our major distribution channel QQ. The user base of one of our most popular cell phone games has maintained an average growth rate of 400,000 new subscribers per month in 2007. This momentum is anticipated to continue in 2008 as we launch our new games in kJava and WAP versions.
- Distributing Games by China Mobile with Revenue Sharing Model
It is always the strategy of Mobile Entertainment, Inc to secure contractual relations with the largest cell phone network operators to gain access to the largest user groups. China Mobile (NYSE: CHL), which has the largest cell phone subscriber base in the world, and China Unicom both allow revenue sharing model in distributing our cell phone games. We also anticipate negotiating with China Mobile for a larger cut in revenue sharing in 2008.
- Partnership with QQ
Mobile Entertainment’s games are also distributed through QQ, a popular instant messaging system in China similar to MSN with a user base close to 300 million (as of Aug 2007). We have successfully captured about 2% of this nationwide online community to become our game subscribers. The distribution is further enhanced by a virtual store known as “QQ Shop”. This online shop offers the revenue stream to the company as the game players enhance their role-playing characters by purchasing in-game gadgets from the store.
- Experienced Management Team; Strong Commitment to R&D
Mobile Entertainment’s management includes a good mix of experienced media and Internet executives who are in charge of game concept development as well as the distribution and marketing strategies. We are also committed to continuous upgrading the game content, developing leading games with the latest technologies and proactively promoting the games by organizing various activities to maintain the users stickiness.
- China’s Growing Interests in Cell Phone Games
With a population of 1.3 billion, China represents the world’s largest cell phone subscriber base in the world. Cell phone games have proven to be the Killer Apps of the digital premium content services. The cell phone game type in China has evolved from simple pre-installed games, downloadable games to the color-screen Java games, large scale network games and massive multi-players networked games, which is now developed by Mobile Entertainment, Inc.
