Mobile phone gaming is becoming a hot growth area in China, and China Techfaith Wireless Communication Technology Ltd. (CNTF) may be well-positioned to benefit from this nascent market.
Most recently, the company signed deals to provide game content services to Chinese mobile phone branding companies aigo, Doov, AMT, QiGi and Flyfot through its wholly-owned gaming subsidiary 798 Entertainment Ltd, formerly known as One Net Entertainment Ltd.
The game content provided by 798 Entertainment will be built into the mobile phones of these companies, in exchange for a service fee to China Techfaith.
In addition to the built-in games, mobile phone users can also download and play other 798 mobile phone games free of charge. However, the users will be charged additional fees for purchase of accessories for the games.
TechFaith is targeting the mobile gaming market through its website www.798uu.com, and the online PC gaming market through www.798game.com. The company is planning a launch of 16 multiplayer online role-playing games or MMORPGs for mobile gamers on www.798uu.com.
Essentially, the company is engaged in the development and production of mid to high-end handsets and tailor made handsets, but began to add handsets with interactive online gaming to its portfolio, after expanding into the mobile and PC online gaming market in January 2008.
The mobile gaming market is evolving rapidly due to wider mobile adoption, benefiting from expanded mobile access to the Internet and reduced data access costs.
The number of mobile gamers has increased from about 55 million in 2005 to about 183 million in 2008, mainly due to new mobile gamers in China and India, according to market research firm Research and Markets.
An August report from Research and Markets estimates the global mobile gaming market to grow at a 16.6% CAGR or Compound Annual Growth Rate to $18 billion in 2014 from $6.9 billion in 2008.
In a vote of confidence, One Net Entertainment, the company's gaming subsidiary, received a $20 million investment in May this year, from venture capital firm IDGVC Partners and Hong Kong-based Infiniti Capital Ltd. The investment is in the form of convertible debt and common equity.
China Techfaith has grown its revenues from $80.8 million in 2006 to $208.9 million in 2008 and turned to a profit last year. For the most recent second quarter, the company posted cash of $2.58, which represents 78% of the stock's Friday closing price of $3.3.
Insiders are bullish about the stock, owning 50.11% of the company's outstanding float. High insider ownership generally denotes confidence in the stock.
During the third quarter, China Techfaith announced the launch of G6, the mobile phone for sports lovers. The G6 will double as a mobile gaming platform as well as a remote control for PC gaming with advanced motion sensors. The phone will let users play table tennis, tennis, bowling, golf, and car racing.
China Techfaith reports third quarter results on Nov 23, after the market close. In the year-ago period, the company reported net income of $0.45 million or $0.01 per American Depositary Share or ADS on revenues of $50.8 million.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.