Established in March 2004, Xiamen-based G-bits is one of the leading online game developers in China. The company, which is into the research and development of the Internet and animation game works, has launched games such as Asktao , Asktao Legend, Immortal War, Carefree Online, and Asktao-Oversea. A rally in the shares of G-bits Network Technology (Xiamen) has turned chairman Lu Hongyan into China’s latest online game billionaire according to a report at Forbes.
G-bits’ Shanghai-traded shares rose 2.3% to 324.94 yuan on Friday and have gained more than 500% since the company went public on Jan. 4. Lu, 39, owns 30.4% of the company, a stake worth $1 billion on Friday. G-bits’ games are inspired by traditional Chinese stories.
G-bits has predicted net profit last year gained as much as 235%, compared with 2015’s 175 million yuan, or $26 million. G-bits issued 17.8 million new shares in January at 54 yuan each, raising 960 million yuan, or $139 million, to support the upgrading of existing games and development of new ones.
China’s online games revenue increased 18% in 2016 to 165.6 billion yuan, or $24 billion, with mobile games accounting for nearly 50% of the total, according to an industry report. G-bits is among the second tier of online game companies in China, compared with bigger rivals Tencent, led by billionaire Ma Huateng, and Netease, led by fellow billionaire William Ding.
Lu and co-founder Su Huazhou invested 500,000 yuan each to set up the predecessor business of G-bits in 2004. Su sold his stake in 2012. Lu is a graduate of Tianjin University with a major in computing. He worked for smartphone maker ZTE as a software engineer and at Salira Optical Network Systems of the U.S. as an engineer before he cofounded G-bits. China is second only to the U.S. as home to the world’s second-largest number of billionaires.
Xiamen Gigabit Network Technology Co., Ltd. is a professional network game creative planning, research and development production and commercial operation of state-level key software enterprises. In July 2011, the company set up Thunder game operating platform.