Asiasoft Corporation Public Company Limited (the "Company" or "AS") was formerly called B.M. Media (Thailand) Co., Ltd. The Company was incorporated on 20 September 2001, with the registered capital of Baht 5.0 million as a distributor of PC games by co-founders of the Company, Mr. Pramoth Sudjitporn, Mr. Sherman Tan and Mr. Lertchai Kanpai, have long experience in the entertainment software business.
In 2003, the Company began online game service business in Thailand by launching "Ragnarok Online" licensed from Gravity Corporation, South Korea. It was localized into Thai language to serve Thai gamers. This game was an immense success, with the highest Peak Concurrent Users of over 110,600. This was a major step forward, which made the Company widely known as one of the leading online game operators in Thailand. In 2004-2005, the company restructured its shareholding within the Group through the purchase of shares from its major shareholders to clarify the Group's operating structure, save costs, and enhance the efficiency of the Group's management. At the currently, the Asiasoft Group (the "Group") comprises of 17 companies, as follows.
The Group’s main business is in online entertainment, as detailed below.
|1. Asiasoft Corporation Plc. ("AS")||
|Online game services business and distribution of games in Thailand|
|2. Asiasoft International Co., Ltd. ("ASI")||
|Investment arm in overseas|
|3. PlayPark Co., Ltd. ("PlayPark")||
|Online game services business in Thailand|
|4. A Capital Co., Ltd. ("A Capital")||
|Investment arm in Thailand|
|5. FunBox Co.,Ltd. ("FunBox")||
|Web portals for online games and web advertisement services|
|6. Thaiware Communication Co., Ltd. ("Thaiware")||
|Exchange of information and distribution of software and IT service including software download on the website "www.thaiware.com"|
|7. Asiasoft Online PTE. LTD. ("ASO")||
|Online game services and providing in Singapore in online game service as well as distributing prepaid cards in Singapore|
|8. AS Online SDN. BHD. ("ASM")||
|Online game services and providing in Malaysia in online game service as well as distributing of prepaid cards in Malaysia|
|9. PT Asiasoft ("ASID")||
Online game services in Indonesia
|10. CIB Development SDN BHD ("CIB")||
Online game services in Malaysia
|11. Playcybergames Co., Ltd. ("PCG")||
Online game services in Thailand
|12. Trilight Cove Enterprises Ltd. ("TLC")||
|Online game services on Indochina including Vietnam, Myanmar and Cambodia|
|13. Thinkplus Digital Co., Ltd||
|Providing the service of digital marketing agency and media selling house|
|14. Level Up! Inc||
|Online game services in Philippine|
|15. Miryn Innovation., Ltd||
|To Develop the games application on mobile phone|
|16. Pomelo Network Pte.Ltd||
|To Develop the mobile application and Mobile Messenger|
For the online game service in Vietnam, the Company has sub-licensed the right to CONG TY TNHH CHAU A MEM ("CTCM"), a Vietnamese Company to provide online game services in Vietnamese market under "AsiaSoft" since 2004. Recently, Company invest 60% of Trilight Cove Enterprises with Vietnamese partner through ASM, our subsidiary of the company to support the service of online games in Indochina region including Vietnam, Myanmar and Cambodia.
Nature of the Group’s Business
The Group is a leading provider of online entertainment service in Southeast Asia focusing in online games,
The Group’s launch of “Ragnarok Online” in Thailand in 2007 was an immense success, with a record number of over 110,600 concurrent users. In 2008, Asiasoft published and operated "MapleStorySEA", which is one of the most played Massively Multiplayer Online Role-playing games in Singapore. This was a major milestone, which made the company’s reputation as one of the leading online game operators in Southeast Asia.
As of 31st December 2015, The Group operates 27 online game titles in 6 countries: Thailand (17 games), Singapore (12 games), Malaysia (11 games), Indonesia (6 games) Philippines (13 games) and Indochina (Vietnam, 9 games). During the past 3 years, the provision of online game services was a major contributor of the Group’s revenue, accounting for 80-85 % of the Group’s overall profits.
The online services were operated through subsidiaries companies in each country. Each subsidiary provides its respective game servers to support services for the gamers in each country.
The Group generates income from the online game business through the sales of @Cash, 1-2 Call, and Truemoney including credit card and debit card that activated by Visa or Master card to gamers who use these products to increase air time, exchange for in-game points or virtual money to buy premium in-game items. While 1-2 Call and Truemoney are available via both prepaid cards and electronic. For prepaid cards, they are distributed through Internet cafes and convenient stores such as 7-Eleven, BIG C, Tesco Lotus and True Shop/True Move. Payments may be made by cash, money transfer or credit cards. For Electric Systems, @Cash are distributed through 7-Eleven, while 1-2 Call and True Money are distributed through 7-Eleven, Big C, Tesco Lotus, Lotus Express, True shop and Telewiz or by debit and credit card that activated by Visa or Master card. The @Cash, 1-2 Call, and Truemoney as well as debit and credit card can be used for all online games in each company within the Group’s business alliances.
In year 2015, The company has new online game service through Paymall (“Playmall”). Paymall is the new all in one wallet system of Playpark (“Playpark”). Topping up for favorite Playpark game is easy with Paymall which can top up to all of company’s games using any method of payment such as credit card, debit card as well as mobile phone operator where gamer make payment too.
The Group has established customer service function, consisting of a 24-hour call centre and an email service to answer any technical questions relating to the game play or payment procedures regarding the company’s products.
As of 31st December 2015, the Group was granted the rights to service 27 online games in 6 different countries; they are:
|Online game||Type of Game a||Type of revenue model b|
|1.||Ragnarok Online||MMORPG||Hybrid Sale|
|2.||Maple Story||MMORPG||Item Sale|
|4.||3 Kingdoms||MMORPG||Item Sale|
|5.||Perfect World||MMORPG||Item Sale|
|6.||Granado Espada||MMORPG||Item Sale|
|9.||Dragon Nest||MMORPG||Item Sale|
|12.||Phantasy Star Online 2||MMORPG||Item Sale|
|14.||GetAmped 2||Casual||Item Sale|
|15.||Super Dance Online||Casual||Item Sale|
|16.||World In Audition||Casual||Item Sale|
|17.||Special Force II||FPS||Item Sale|
|18.||Mission Against Terror Online||FPS||Item Sale|
|19.||Assualt Fire||FPS||Item Sale|
|20.||Line of Sight||MOBA||Item Sale|
|22.||Heroes of The Storm||MOBA||Item Sale|
|23.||Onimusha Soul||Web||Item Sale|
|24.||Advance Dino||Mobile||Item Sale|
|25.||Heart Castle||Mobile||Item Sale|
|26.||Dragonica Mobile||Mobile||Item Sale|
|27.||Dragon Encounter||Mobile||Item Sale|
|Total 27 Games|
|a||MMORPG refers to Massively Multiplayer Online Role-playing Game, a game genre which supports a large number of gamers playing and interacting with one another on the same server simultaneously. Casual Game is a game which players do not need to commit much time to and it does not require high skills, a game which is mainly associated with simple artstyle and characters.|
|b||Air Time Sale is a revenue model which charges gamers according to playing time; Item sale is a revenue model which profits through the sale of in-game items and hybrid sale is a combination of the aforementioned revenue models|
A1 Massively Multiplayer Online Role Playing Game (“MMORPG”)
MMORPG are role-playing games where a very large number of players interact with one another within a virtual game world online. The storyline in MMORPGs is mostly about action adventures where one has to defend oneself or be part of a battle between warring countries, alongwith the following general characteristics:
- Gamers can take up to one or more roles in the game, using the Multi Character Control System: MCC). Each character varies in their strengths and weaknesses
- Gamers can train to level up their game character and collect various items such as weapons or points to increase the statistics of their character and differentiate their game characters from other players’ characters by customizing, exchanging and selling their in-game items.
- There is no end-game in an MMORPG and there is no definite win or lose in the game
- Most gamers are loyal to the game, partly due to the nature of the game which requires a considerable amount of commitment (both psychologically and financially) to improve the game character and to level up.
A2 Casual Game
Casual Game is an online game wwhich has simple gameplay and visual, and it is often associated with cute, colourful cartoon characters. A Casual Game is relatively easy to play as compared to most of the other game genres. Gamers do not need a large amount of time or skills to play and can usually finish each session of the game within a short period of time
A3 First Person Shooter
First Person Shooter is an action-oriented online game where players are pitted against each other to achieve certain objectives (e.g.: Death Match, Capture Point and Capture The Flag). The genre's name derives from the game presentation where the game simulates a scenario from a first person’s perspective.
A4 Web-based Game
Web-based game is an online game where player can enjoy on their web browsers without downloading any program and/or software
A5 MOBA Game
MOBA game is sub-genre of games under the Real-Time Strategy category. The gameplay is characterized by strategic combat between two small teams of players, each trying to destroy the opponent’s base.
The Group engages in online entertainment services, primarily online game services and game distribution.
Online Game services
Online games are hosted on the Internet where gamers can play with, compete and interact with other gamers simultaneously through the game’s servers system whereby the main game’s programme and gamers’ information are stored. Online game operators provide services to gamers whose computers are installed with the online game client and have registered their details under a game operator’s database or game portal. Online games do not include games which operate on LAN system.
The online game business is the main source of the Group’s income, accounting for 82-88% of the Group’s total income in 2013. The Group operates its business on a comprehensive basis to enable the best and most efficient way in operating online game services to gamers in each country, from acquiring game licenses, marketing and establishing game information centres to payment channels. Another important task is to prepare the technology and system for the provision of services, including the server system, computer equipment and software, client program as well as creating websites for online games. Each company in each country has its own separate server system. As of 31st December 2015, the Group provides online game services in total of 27 games in 6 countries, as follows:
|Service countries||Number (games)||Online games for which services are provided as of 31 December 2015|
|Thailand||17||Ragnarok, Yulgang, Granado Espada, Cabal, Dragon Nest, Elsword, Phantasy Star Online 2, Audition, World in Auditon, Strife, Hero of the Strom, Line of Sight, Advance Dino, Heart Castle, Onimusha, Dragonica Mobile and Dragon Encounter|
|Singapore||12||Maple Story, Cabal, Phantasy Star Online 2, Audition, World In Audition, Strife, Hero of the Strom, Special Force 2, Advance Dino, Heart Castle, Dragonica Mobile and Dragon Encounter|
|Malaysia||11||TLBB, Phantasy Star Online 2, Super Dance Online, World In Audition, Mission Against Terror, Strife, Hero of the Strom, Advance Dino, Heart Castle, Dragonica Mobile and Dragon Encounter|
|Vietnam||9||Yulgang, Cabal, Nine Dragon, Phantasy Star Online 2,Strife, Advance Dino, Heart Castle, Dragonica Mobile, and Dragon Encounter|
|Philippine||13||Perfect World, Cabal, Phantasy Online Star 2, Assault Fire, World In Audition, Special Force 2, Strife, Hero of the Strom , Advance Dino, Heart Castle, Dragonica Mobile , and Dragon Encounter|
|Indonesia||6||Phantasy Star Online 2, Strife, Advance Dino, Heart Castle, Dragonica Mobile, and Dragon Encounter|
Note: Some games were served in more than one country
The Group also operates related businesses to support the online game services. For instance, www.playpark.com, a game portal web site which allows gamers to connect to other games, including online and PC games. Moreover, it is a venue for gamers to browse and download (Game Download) for any of the Groups’ published games while serving as a virtual community centre for gamers to interact (Gamer Community) with one another, read about game related news and updates as well as sharing opinion.
The Group also invested in related business called “Thaiware” for source of Technology regarding about IT . Thaiware also a centre for downloading software both Domestic and Overseas including Freeware as well as Community sharing related news for IT sector.
The Group also established a new company called “PlayCybergame Ltd” for online game service in Thailand with paid-up capital of 20 Million Baht. The company holds about 100% of the registered capital.PlayCybergame Ltd. Will providing the service of MOBA genre which get good response from gamers in internet Café’
In 2013, the Company invested in ordinary shares of Thinkplus Diglital Company Limited in proportion of 60% of Thinkplus’s registered and paid-up capital of 5 Million Baht. Thinkplus Ltd. provides the service of digital marketing agency and media selling house to the Group’s business in Thailand. Company considered that Thinkplus has the potential to carry on the providing the service of digital marketing agency via internet and media selling. The company believes that investment in Thinkplus will support the core business of the company in the future.
In early 2014, Company invests in ordinary shares of Level Up! Inc., acquiring full shares of Level Up! Registered and paid-up capital of 103 Million Baht. Level Up! publishing online games in Philippines. The Company considered that Level Up! has the potential to expand the the Group’s online games business in Philippines as it has good foothold in the local games industry. Level Up! will support the online gaming service that is core business of the company in the future and will become an additional overseas source of income to the Company.
In terms of revenue, the Group currently charges gamers in the following manners:
- Air Time Sale : Gamers pay fee for the online game service according to playing time in the game, mainly used for MMORPG. Currently, only Ragnarok Online is under this business model which contributes very small amount of the total revenue in 2015.
- Item Sale :
This method usually allows gamers to play the game for free in order to sell in-game items such as weapons, clothes and accessories to gamers who will decide whether or not to buy the items using real cash. The sales of these in-game items are vital to the Group’s income. However, the price of these virtual items will vary depending on each country in which services are provided, the latest marketing strategies, and the type and number of in-game items available of sale. Such virtual items are often charged at a lower price when offered in packages.
At present, revenue model of online game services around the world has gradually changed from Air Time sale to Item Sale. The reason is that once gamers play games for free first, there is higher possibility that they will be drawn into the game and be more inclined to make in-game purchases, and thus increase the opportunity of earning greater income for the Group.
Distribution and distribution channelsMarketing activities
The Group has been operating under the trade name “Asiasoft” from the beginning of its operation in 2001. The name has become widely known among gamers throughout the region as the leader in the online game market, signifying a good level of quality in the games the company publishes and the Group’s ability to retain its customer base as well as the trust in the company’s server system for the game services.
Marketing activities are an important strategy for effective communication with customers regarding the services and online games offered by the Group. The objective of these efforts means to create awareness among potential customers of online games, bringing the promoted game across as an inexpensive and convenient means of daily entertainment. In addition to the launch of new games, the Group’s marketing activities also aim at strengthening the Group’s market position, organizational image and social responsibility. The Group also regularly conducts market surveys in order to understand needs and behaviours of gamers, which are the basis for effective marketing strategies. In addition, the Group conducts marketing activities in conjunction with distributors and Internet cafés to give gamers’ the best understanding about online games, services, and pricing strategies of the Group.
In providing online game services, the Group also distributes @Cash prepaid cards for the payment of online game service fee, and also cooperate with AIS, TescoLotus and True to distribute 1-2 call, and Truemoney as alternative payment channels. The Group believes that effective distribution channels assist the company to reach out to the Group’s target customers effectively.
@Cash, 1-2 Call and Truemoney Through electronic
The Group distribute @Cash cards for the payment service. Gamers will received the code and Serial number as well as password number for register in games, or redeem point. The virtual cash item will be able to pay game online services in each game in our group including game in partner company.
- Through Credit Card and Debit Card that issue in Thailand and allow to purchases online item.
- Distribution of 1-2 Call, and True Money Cash Card through convenient store.
- PlayMall System
Gamers can purchased @Cash, 1-2 Call, Truemoney and Playmall for playing games through electronic as following;
- 1-2-Call Cash Card: This is another distribution channel that the company joint with AIS, the leader in mobile phone operator. Gamers can buy 1-2-Call prepaid card which “@” symbol at the Conner. The card can be used the same as @ Cash card. The group started this service in September 2010.
- TrueMoney Cash Card: This is a new distribution channel that company joint with True Corp. Gamers can buy TrueMoney card at Trueshop/Truemove and 7-11 Eleven. This new service has started in September 2012.
- Playmall : is the new all in one wallet system that lets gamers top up favourite using any method of payment in each region quickly and easily through credit card and debit card.
- Online Credit Card: This is the sale of electronic @Cash cards through https://passport.asiasoftsea.com/general/ap_landing.aspx or www.paypal.com where payment is made through credit cards.
- MOL e-Pin: gamers can purchase electronic @Cash prepaid cards through MOL e-Points at the authorized shops or makes an online payment at www.offgamers.com or through authorized shops with E-Pay symbol.
- Mobile Phone: @Cash on Mobile is the sale of electronic @Cash through mobile phone in Malaysia where gamer makes a payment through Maxis Network systems.
- S.A.M Kiosk e-Pin: gamers can purchase electronic @Cash prepaid cards through the automatic S.A.M. machines and through AXS Auto machine.
- Mobile Phone:@Cash on Mobile is the sale of electronic @ Cash through mobile phone in Singapore where gamer makes a payment through SingTel, Star Hub and GX.
- MOL e-Pin: this is a payment system in Singapore, which electronic @ Cash prepaid cards can be purchased through MOL- e-Points, Enets and PayPal at the authorized shops.
- Global Game Concept: @Global Games allows players in South East Asia to play in the same server, encouraging cross-countries friendships and competition among gamers by holding SEA Online Games Tournaments. Players are also able to purchase @Cash in South East Asia through all of Asiasoft's wide range payment systems.
- Uni-Pin: gamers can purchase Uni-Pin prepaid cards through authorized shops, “Indomaret” a convenient store whose branches locating throughout the country.
- @Cash Prepaid Card is distributed through our authorized shops.
- MOL e-Pin: gamers can purchase electronic @Cash prepaid cards through MOL e-Points at the authorized shops or makes an online payment at www.offgamers.com or through authorized shops with E-Pay symbol @Cash Prepaid Card which is distributed through our authorized shops.
- Online Credit Card: This is the sale of electronic @Cash cards through https://passport.asiasoftsea.com/general/ap_landing.aspx or www.paypal.com where payment is made through credit cards.
Diagram exhibits the distribution of @Cash prepaid cards
Gamers can pay for the online game service fees by purchasing @Cash in electronic form from the various electronic systems as shown in the diagram below.
Diagram demonstrates the distribution of 1-2-Call, and TrueMoney
In 2010, the company added more payment channels to allow more convenience for paying gamers:
- Diversification of investment to countries with high growth potential
At present, the Group diversifies its investment in the online game business in 6 Southeast Asian countries, Thailand, Singapore, Malaysia, Indonesia, Philippine and Indochina (Vietnam, Myanmar, Cambodia) to reduce risks from operating only in Thailand or one particular country. The Group deploys regional management strategies which help to reduce operating costs from purchasing licenses fees of games in packages, computers and related equipment. The Group also shares resources, i.e. human resource, knowledge, technology, and work experiences which are key of success for the group to penetrate each market.
- Increasing the number of online games and continuously updating version for existing games
As of 31st December 2015, the Group provides online game services in total of 27 games in 6 countries, The Group cooperates with game developers and game publishers to improve the features and contents of the Group’s online games to be consistently updated. In addition, the Group plans to provide services for new games in each country to satisfy customers’ needs in terms of design, graphics, and technology, for example, providing localized in-game contents.
- Strengthening its market position
The Group uses 3 main strategies to strengthen its market position, and to gain a competitive edge over its competitors:
- Offering top online games which are well-known and popular in foreign markets
The Group believes that online games that are well-known and popular in foreign markets have outstanding features both in terms of design and contents, which would increase the chance for the Group’s success in marketing such games to customers in each target country.
- Marketing activities towards target customers
The Group has a strong database of gamers and it uses marketing efforts to attract its current user base to its new games, as well as continually expanding the company’s customer base. Such marketing activities include the promotion during the launch of new games, creating noise for the game via in-game competition and special seasonal activities as well as out-of-game activities such as meetings and parties among gamers etc.
- Increasing the number of distribution channels
The Group plans to increase the number of distributors of @Cash prepaid cards and online products, by providing guide books and deals to cover a wideer –range of distribution channels. The company also added new distribution channel such as the aforementioned and this would increase the Group’s advantages over its competitors in maintaining the Group’s existing customer base and increasing new customer base. In addition, the Group also improved the electronic distribution channels in order to reduce the Group’s operating cost in the future. Moreover, the expanded distribution network can extend the reach of company’s marketing activities, for instance, the distribution of posters that will be directed to the end customers of these distribution channels.
- Marketing activities to promote the sale of in-game items
Most of online games service operated by the Group take on the business model of free-to-play games, and thus the Group focuses on efforts to encourage gamers to purchase in-game items regularly. For example, through monthly in-game promotions, Item Shops and Item Mall on web sites, sending newsletters and SMS to gamers regarding new arrivals in the cash shops, as well as to promote these purchases via common social media such as Facebook and Twitter.
- Efficient online game information centre
Online game information centre provides an important service which enables gamers to play games smoothly and continuously, enhancing game loyalty and increased game sessions and opportunities to attract in-game purchases. Currently, the Group provides game information through its 24-hour call centre, e-mail and Live Chat as well as through the Counter Service @Club for customers who contact the information centre in person. The Group aims to improve the quality of the information service and obtain adequate personnel and equipment to meet the needs of customers which expect to increase in the future.
- Development of the server system for the online game service
TThe Group believes that a good server system enables gamers to interact with one another smoothly, continuously and rapidly, which is very important for online game service. Therefore, it is the Group’s goal to always improve and maintain the server systems in top-notch conditions and capabilities, like increasing the size of its communication circuit to accommodate more gamers. As a result, the Group is able to provide efficient services in terms of consistent and adequate speed of the network connection, with minimal errors and information losses, which consequently reduces the chance of service disruption. In addition, the Group has constantly improved the information security system to prevent gamers’ information and privacy being breached. The Group obtained ISO/IEC 27001:2005 (Information Security Management System: ISMS).
ISO/IEC 27001:2005 is a standard defined by the renowned and reliable international ISO (The International Organization for Standardization) and IEC (The International Electro technical Commission).
The benefit from ISO/IEC 27001:2005:
- Customer data and systems that provide secured information to be accurate and always available, which guarantees customer satisfaction.
- Ensuring that the company can conduct the service and business smoothly and continuously for both customer and business partners.
- Appropriate and competitive online game service fee
It is the Group’s policy to set up the online game service fees at the rates that appropriate for customers in each country. For most of its services, the Group allows customers to play games for free and charges for its service through the sale of in-game items to increase the competitiveness of the Group with other operators in the same industry and in other entertainment industries. At the same time, such rates must produce a good return for the Group. However, the Group does not have a price war policy.
The Group’s main income by type of business can be divided into 3 main types, as follows.
|Type of Revenue||2013||2014||2015|
|Baht Million||%||Baht Million||%||Baht Million||%|
|1. Revenue from online game service||1,530||89||1,003||79||729||81|
|2. Revenue from distribution business||115||7||114||9||76||8|
|3. Other income||68||4||153||12||94||11|
The Group’s revenues can be classified by geographical area into 2 types as follows.
|Type of Revenue by geographical areas||2013||2014||2015|
|Baht Million||%||Baht Million||%||Baht Million||%|
|1. Revenue from operation in Thailand||926||54||660||52||532||59|
|2. Revenue from overseas operation||787||46||610||48||367||41|
|9 U.M. Tower, Room 9/283-5, 28th Floor,Ramkhamhaeng Road, Suanluang, Bangkok 10250, Thailand
Tel: +66 (0) 2769 - 8888
Fax: +66 (0) 2717 - 4290
|5 Tampines Central 1 , #04-01 Tampines Plaza, Singapore 529541
Tel. +65 6825 8500
Fax: +65 6781 3532
Business inquiry contact: email@example.com
|Suite 6.05-6.07 6th Floor Menara Summit Persiaran Kewajipan USJ 1 47600 UEP Subang Jaya Selangor D.E Malaysia
Tel. +603 8023 8315
Fax. +603 8023 7830
Business inquiry contact: firstname.lastname@example.org
|F5.04 Lu Gia Plaza, 70 Lu Gia Street, Ward 15, District 11, Ho Chi Minh City
Tel: 848 6264 4988
Fax: 848 6264 4985
Business inquiry contact: email@example.com
|Belleza Office Tower 17th floor Jl. Letjen Soepeno No. 34 Jakarta Selatan 12210 Indonesia
Tel: +62 21 300 27855
Fax: +62 21 300 27866
|6th Floor, OPL Building, 100 Carlos Palanca corner Dela Rosa Streets, Legaspi Village, Makati City
Office Number: +63 2 7519600
Fax Number: +63 2 8136199