spinfreecoinmaster| Sanqi Mutual Entertainment's share price fell more than 15% during the year, and the decline in profits since 2023 has attracted attention

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Sanqi Mutual Entertainment (Rights Protection), its share price has fallen by more than 15% since 2024, corresponding to thisspinfreecoinmasterWhat is the dilemma of the company's parent net profit declining since 2023. Regarding the current operating and stock price situation, the company responded that its stock price fluctuations are affected by multiple market factors, but the company has always been committed to achieving high-quality and stable development, with high-quality content as the core, and striving to enhance the market's recognition of the company's intrinsic value.

At present, Sanqi Mutual Entertainment has reserved a wealth of high-quality products in multiple game categories such as MMORPG, SLG, card, simulation management, placement RPG and leisure puzzles, etc., and is actively promoting the launch of products, aiming to provide players with more Diversified gaming experience.

Judging from the financial report of Sanqi Mutual Entertainment, the company faces the challenge of "increasing income but not increasing profits". In 2023, the company achieved revenue of 16.55 billion yuan, a slight increase of 0.86% year-on-year, but net profit attributable to the parent company fell 10.01% year-on-year to 2.659 billion yuan. The situation in the first quarter was also not optimistic, with net profit attributable to the parent company falling 20.45% year-on-year to 616 million yuan.

Sanqi Mutual Entertainment's buying traffic model is its development strategy. In 2023, the company's sales expenses will reach 9.091 billion yuan, of which Internet traffic expenses will account for 93.13%, or 8.466 billion yuan.

According to historical data, the company spent a total of 40.998 billion yuan purchasing Internet traffic from 2019 to 2023. Although the buying traffic model has brought an increase in operating income to the company in the short term, high traffic costs have also swallowed up some profits, resulting in a decline in net profit.

In response to this phenomenon, industry insiders pointed out that excessive reliance on buying traffic may lead to low customer stickiness, reduced activity, and the buying traffic model is difficult to sustain. Companies should pay more attention to game quality and player experience, and optimize game content and marketing strategies to increase user stickiness and activity, thereby achieving sustainable development.