Termination of the contract for the distribution of Fishing Clash in China.

22 Mar 23
Author: Nina Grabos
2 minutes

As notified on March 17, 2023, Fishing Clash will no longer be available to players in China as of May 22, 2023. Shanghai Online Games Co. Ltd is a subsidiary of NetEase (“NetEase”) and a partner of Ten Square Games in China, with whom the Company entered into an agreement for the distribution of Fishing Clash in December 2018. Due to the termination of cooperation with another large publisher for the distribution of games on the Chinese market, NetEase closes a subsidiary providing these services, also for Ten Square Games. As a consequence, the servers where Fishing Clash China is available will be closed. On March 22, 2023, the possibility of making payments by users in the game was already blocked.

NetEase obtained a government license to distribute Fishing Clash in China in June 2021 and, under the previously concluded agreement, Ten Square Games transferred the rights to distribute the game on this market to the partner. The company was responsible for the development of the game, and its partner – NetEase – for marketing activities and user acquisition.

In 2022, the total revenues of Ten Square Games from the distribution of Fishing Clash in China totaled PLN 3.9 million. According to the Company’s estimates, in 2023 this amount would be even lower – below PLN 1.0 million. Therefore the scale of revenues generated by Ten Square Games due to its presence on the Chinese market is not significant from the financial perspective for the Company.

The license to distribute the game has been issued to NetEase, therefore it expires.

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