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    9911   KYG6464H1011

NEWBORN TOWN INC.

(9911)
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Delayed Hong Kong Stock Exchange  -  05/24 04:08:14 am EDT
2.610 HKD   -2.61%
05/20Chairman Ups Stake in Newborn Town
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05/19Chairman Boosts Stake in Newborn Town
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05/18Newborn Town Chairman Raises Stake to Over 26%
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EQS-News : Snap, Newborn Town, Reworld, Match Group - Who Will Be the Next 'Roblox'?

07/20/2021 | 02:25am EDT
EQS-News / 20/07/2021 / 14:24 UTC+8 
Snap, Newborn Town, Reworld, Match Group - Who Will Be the Next "Roblox"? 
 
HONG KONG / July 20, 2021 / In this March, Roblox (RBLX.NYSE) went public on NYSE and was hailed "the first Metaverse 
stock". On the first day of trading, Roblox topped a market cap of USDUSD45 billion, outpacing the combined market cap of 
two established game developers - Ubisoft (UBI.PA) and Take-Two Interactive (TTWO.NASDAQ). It is not surprising that 
Metaverse has become a hot spot for capital markets in 2021. 
 
Metaverse is a concept that developed from the rise of the internet, virtual worlds, and technology such as augmented 
reality. It refers to a perceived and iterated collective virtual shared space. Metaverse related business blends 
reality with virtuality, such as immersive experience brought by AR/VR, along with social media business with high 
degree of interaction and freedom. 
 
Bloomberg recently estimated the metaverse's market size at USDUSD800 billion. More and more big names are also focusing 
on metaverse-related investment. For instance, Roundhill Investment and Matthew Ball, a famous investor, have recently 
joint-hands to set up Metaverse ETF. These are just some examples to indicate that metaverse has moved from science 
fiction to reality. It is now a new form of internet economy, and its market potential is being tapped. 
 
In the wave of Metaverse, internet giants continue to be the usual players and already have active planning, while 
other companies such as Snap (SNAP.NYSE), Newborn Town, Reworld (a Chinese developer with investors such as 
ByteDance) and Match Group (MTCH.NASDAQ) are attracting more attentions from public, thanks to their metaverse elements 
and interacting scenarios already built in their products. 
 
What is Roblox's success logic? 
 
Roblox launched a game to realize the metaverse. Manuel Bronstein, Chief Product Officer of Roblox, positioned the 
Company as an "immersive creation engine" that incorporates games, creation, and social network. In this sense, Roblox 
is not just a game but a whole new world full of possibilities. In the metaverse built by Roblox, users are not only 
game players but also creators. They can also meet new friends or invite friends from real-life to join their game. 
Roblox also upgraded the social networking aspects of its metaverse by introducing private spaces. Players can now 
throw parties and have fun like they'd do off the internet. 
 
The metaverse is a collective virtual shared space, enhanced by physical reality and always online. The boundary 
between virtual and reality is blurred, and this allowed deeper links between online and offline through social 
networking and user generated content (UGC). In terms of its growth pace, Roblox is now the world's largest gaming UGC 
platform with DAU (Daily Active User) of 42.1 million, a year-on-year growth rate of 79%. Among the users, 70% of them 
are Gen-Z aged from 5 to 24. They spent 153 minutes daily on average, a year-on-year growth of 11%, and sent about 61 
messages per day, compared to 50 on WhatsApp. 
 
Obviously, Roblox's capability to realize the flywheel effect made possible by its immersive social attributes and the 
Gen-Z-dominated UGC ecology has been its key to success. 
 
Who will be the next "Roblox"? 
 
Following Roblox's path of success, it is believed that the following four unicorns are most likely to be the next 
metaverse center. 
 
 1. Snap Inc. (SNAP.NYSE) 
 
Snap Inc. (SNAP.NYSE) has a unique position in the social networking arena, most notably in finding its way to a mass 
of young users by creating a brand-new social networking experience through the "burn after reading" function with the 
camera as its entry point. The youth compose the core users of Snap. 36% of the total users of Snapchat, the featured 
social networking APP of Snap, are aged 18 to 24. 
Data released by Snap Inc. in May shows that Snapchat's monthly active users (MAU) have reached 500 million. Without 
any doubt, its huge traffic has added weight to its access to the field of metaverse. Meanwhile, the UGC capability of 
Snapchat cannot be underestimated, considering that more than 60% of its users are creating new contents on Snapchat 
every day. Building up on their stable, young users and the strong, open UGC platform, Snapchat keeps innovating and is 
currently striving to combine social networking and their efforts to break the line between virtual and reality through 
functions such as Snap Map and AR filters. 
 
 
 
 
 2. Newborn Town 
 
Newborn Town Inc. (9911. HK) is an internet company targeting the global market and now has accumulated billions of 
users around the world. Benefiting from its development of different video and audio social APPs, Newborn Town has 
already built a scalable social networking ecosystem. By dissecting users' preferences under virtual scenarios, the 
company has been creating a variety of efficient user scenarios combining games, e-commerce and other applications 
based on users' needs. In terms of its business planning, Newborn Town has the ability to provide users with more 
high-frequency interactions, higher sense of participation, and more immersive metaverse experiences. 
 
According to the company's newly released data, as of June 30, 2021, Newborn Town has accumulated 254 million downloads 
for their social networking applications and 209 million downloads for games. With its global market coverage, 
popularity among young user groups, strong social-networking features, UGC attributes in products and layout in 
mid-core to hard-core games, Newborn Town has gained the admission to metaverse. 
 
3. Reworld (Completed Series-B Funding) 
 
In this April, Chinese mobile game company Reworld got nearly RMB  100 million of strategic investment from Bytedance. 
The move was regarded as one of ByteDance's core steps towards metaverse. According to the official website of Reworld, 
the company was founded in 2018, and its main product is the game of the same name. Reworld the game is described as a 
youth UGC platform that recreates a realistic virtual reality experience through a physical engine. 
 
It may be said that the paths of Reworld and Roblox coincide as both aim to create user immersive experiences in 
virtual space through games. However, one should beware of the fact that currently most of Reworld's players are from 
China, where the game market is highly competitive. It means that the market share for Reworld may be limited. Whether 
the company can win players over gaming giants like Tencent and NetEase becomes the key of the company's future 
development. 
 
 
 
 
 3. Match Group (MTCH.NASDAQ) 
 
Match Group (MTCH.NASDAQ) is the world's largest online dating group with multiple online dating products like Tinder, 
Hinge, and Match.com. Its users are located in more than 190 countries and regions. 
 
Match Group expands its product portfolio through both self-development and acquisition. In February, Match Group made 
its largest acquisition by buying South Korean video social company, Hyperconnect. The acquisition aimed to increase 
Match Group's capability of enabling more diversified UGC, thereby creating the necessary conditions for immersive 
social networking. 
 
Match Group is now in the leading position in the global open social networking arena. Backed by its huge user volume, 
Match Group is one of the companies with the most potential in social metaverse. However, so far we haven't seen any 
more moves on games or virtual scenarios building from the company. Whether Match Group will expand its layout in 
metaverse remains to be observed. 
 
The success of Roblox unveils the metaverse era, and gaming is but one of many ways of presenting and experiencing 
metaverse. With the deepening of metaverse exploration, continuous technological breakthroughs and greater involvement 
and participation of capital, the promising potential of metaverse economy is worth looking forward to. We expect to 
see more metaverse-focused companies bringing new life experiences to the mass in the near future. 
 
 
 
 
 
 
 
 
 
About Nanjing Sunglow Culture Development Co., Ltd. 
 
Nanjing Sunglow Culture Development Co., Ltd. is a new media platform established by a number of professional financial 
media experts. It is committed to serving the global Internet economy participants, observing the wave of booming 
economy from the perspective of globalization, and providing valuable industry analysis, corporate interpretation and 
character stories. 
 
Investor and Media Enquiries: 
Ada Zhang 
Tel: +86 18612634096 
Email: zhangada890@126.com 
 
SOURCE: Nanjing Sunglow Culture Development Co., Ltd. 
20/07/2021 Dissemination of a Marketing Press Release, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
Media archive at www.todayir.com
 
Image link: 
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1220152&application_name=news 
 

(END) Dow Jones Newswires

July 20, 2021 02:24 ET (06:24 GMT)

Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL 0.15% 31928.62 Real-time Quote.-12.27%
NASDAQ COMP. -2.35% 11264.45 Real-time Quote.-26.27%
NETEASE, INC. -1.68% 95.41 Delayed Quote.-6.26%
NEWBORN TOWN INC. -2.61% 2.61 Delayed Quote.-27.57%
ROBLOX CORPORATION -9.95% 27.07 Delayed Quote.-70.86%
SNAP INC. -43.08% 12.79 Delayed Quote.-72.80%
TENCENT HOLDINGS LIMITED -0.95% 334.8 Delayed Quote.-24.08%
All news about NEWBORN TOWN INC.
05/20Chairman Ups Stake in Newborn Town
MT
05/19Chairman Boosts Stake in Newborn Town
MT
05/18Newborn Town Chairman Raises Stake to Over 26%
MT
05/11Newborn Town Chairman Lifts Stake in Firm; Shares Rise 3%
MT
03/31Newborn Town Inc. Reports Earnings Results for the Full Year Ended December 31, 2021
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03/08Newborn Town Inc. Provides Earnings Guidance for the Full Year 2021
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03/07Newborn Town Forecasts up to Nearly $63 Million in 2021 Loss; Shares Plunge 8%
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02/06Newborn Town Nets $44.5 Million From Top-Up Placement; Shares Slide 3%
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01/24Newborn Town Raising $45 Million for Platform Upgrades, Business Expansion
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01/18Newborn Town Inc. Provides Earnings Guidance for the Year 2021
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More news
Financials
Sales 2022 3 200 M 481 M 481 M
Net income 2022 304 M 45,7 M 45,7 M
Net Debt 2022 - - -
P/E ratio 2022 8,51x
Yield 2022 -
Capitalization 2 635 M 396 M 396 M
Capi. / Sales 2022 0,82x
Capi. / Sales 2023 0,58x
Nbr of Employees 554
Free-Float 48,9%
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Mean consensus BUY
Number of Analysts 2
Last Close Price 2,21 CNY
Average target price 3,64 CNY
Spread / Average Target 64,4%
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Managers and Directors
Ping Li Chief Executive Officer & Executive Director
Chun He Liu Chairman
Shujin Chi Independent Non-Executive Director
Sichen Huang Independent Non-Executive Director
Ming Gao Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
NEWBORN TOWN INC.-27.57%407
SNAP INC.-52.22%36 768
KAKAO GAMES CORP.-36.59%3 606
ANGI INC.-45.71%2 512
DENA CO., LTD.12.76%1 853
MODERN TIMES GROUP MTG AB (PUBL)21.86%1 261