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There is a reason why Gala Technology, listed on the Main Board of the Hong Kong Stock Exchange (HKEX:2458), attracts the attention of wise investors. The young, tech-driven company is focused on a market niche and features a compact and solid product range.
With approximately RMB354.4 million (US$48.6 million) in revenue for the six months ended June 30 or an increase of RMB59.6 million (US$7.35 million) compared to the same period last year, a gross profit increased by approximately RMB50.3 million (US$6.9 million) to reach RMB199.2 million (US$27.32 million). A net profit increased significantly by approximately 93.6 per cent to approximately RMB39.4 million (US$5.4 million) during the period, its recently-released interim report appeases investors.
Shenzhen-based Gala Technology was founded by sports and technology enthusiasts in 2013. They take pride in their pledge to “enhance sports with technology for more fun.” The relatively limited, albeit growing, product range is, therefore, a strategy by design.
The group operates in the mobile sports game, or SPG, market. Its core product range comprised five game products: the Football Master, the NBA Basketball Master, the Football Champion, the Total Football by the end of 2022, and the MLB Clutch Hit Baseball launched in the second half of 2023.
In the pipeline are three major games: an action-based basketball game, an action-based American football game, and a new take on a leisure game that is fishing.
That Gala Technology built a stranglehold in the SPG market yields some excellent market performances. In terms of revenue, in 2021, the group ranked second in China’s SPG and mobile sports simulation game markets, representing a market share of approximately 7.9 per cent and 12.4 per cent, respectively. In the first half of 2023, the group’s market ranking in China still firmly stood at second place.
SPG products have long life cycles and offer the…
Business – South China Morning Post