Korea Stock Market Insights

Tag: WeMade

  • WeMade Faces Double Whammy: Poor Earnings and Lost Lawsuit. What Should Investors Do?

    WeMade Faces Double Whammy: Poor Earnings and Lost Lawsuit. What Should Investors Do? 대표 차트 이미지

    1. What Happened to WeMade?

    WeMade reported dismal H1 2025 earnings, with revenue of ₩258.6B and a net loss of ₩48.9B. The slump in the mobile game sector and slow growth in the blockchain business are cited as the main reasons. Furthermore, the company recently lost a lawsuit filed by former and current employees, requiring it to pay approximately ₩9.9B.

    2. Why Did This Happen?

    Struggling Game Business: Increased competition in the mobile game market, lack of new titles, and aging of existing IPs are contributing factors. While the ‘Legend of Mir’ IP licensing business generates stable revenue, its contribution to overall sales is minimal.
    Uncertainty in Blockchain Business: WeMade is expanding its blockchain business centered around the ‘WEMIX’ platform, but volatility in the cryptocurrency market and regulatory issues hinder significant achievements. The success of ‘Night Crow Global’ will be a crucial factor in the future of this business.
    Lost Lawsuit: The lost lawsuit against former and current employees damages the company’s image and adds financial burden.

    3. What’s Next for WeMade?

    WeMade needs to leverage its ‘Legend of Mir’ IP, expand its licensing business, and focus on developing blockchain games to secure long-term growth engines. It must also strengthen its financial health by managing debt and reducing debt ratios.

    4. What Should Investors Do?

    • In the short term, be wary of increased stock volatility. Carefully monitor WeMade’s performance improvement and the outcome of its blockchain business, adjusting investment strategies accordingly.
    • In the long term, pay attention to the growth potential of WeMade’s IP power and blockchain business. Consider the success of ‘Night Crow Global,’ new game releases, and improvements in financial health when formulating long-term investment strategies.

    Frequently Asked Questions

    What are WeMade’s main businesses?

    WeMade’s main businesses are game development and publishing, IP licensing, and blockchain.

    Why are WeMade’s recent earnings so poor?

    Several factors contributed, including increased competition in the mobile game market, lack of new titles, aging of existing IPs, and uncertainty in the blockchain business.

    What is the outlook for WeMade?

    WeMade is aiming for growth through the expansion of its ‘Legend of Mir’ IP-based business and blockchain game development. The success of ‘Night Crow Global’ will be a critical factor.

    WeMade Faces Double Whammy: Poor Earnings and Lost Lawsuit. What Should Investors Do? 관련 이미지
    WeMade Faces Double Whammy: Poor Earnings and Lost Lawsuit. What Should Investors Do? 관련 이미지

  • Wemade Max Stock Forecast: Analyzing Wemade’s Stake Change and Investment Strategy

    1. What happened? Wemade slightly reduces its stake in Wemade Max.

    On August 19, 2025, Wemade disposed of 0.04% of its stake in Wemade Max through a related-party transaction. Wemade’s stake in Wemade Max decreased slightly from 74.09% to 74.05%.

    2. Why? Background and implications of the stake change

    This stake change was executed through an after-hours trade from Wemade’s related company, WEMIX PTE. LTD., to Wemade. The purpose of influencing management control remains, and this can be interpreted as a measure for short-term funding or portfolio adjustment. The stake change itself is minimal and is not expected to affect management control.

    3. So what? Analyzing Wemade Max’s financials and market environment

    • Financial Status

      Wemade Max’s main revenue source is license sales based on the IPs ‘MIR4’ and ‘Night Crow’. It maintains a solid total equity and healthy liquidity. However, operating profit recorded a deficit due to increased investment in new game development and marketing expenses.

    • Market Environment

      The global gaming market is expected to slow down, but the blockchain gaming market has high growth potential. Macroeconomic factors such as exchange rate fluctuations, interest rates, and oil prices can affect Wemade Max’s performance.

    4. What should investors do? Investment strategy and future outlook

    This stake change is not expected to significantly impact Wemade Max’s stock price in the short term. Maintaining a ‘hold’ perspective is appropriate. However, it is necessary to closely monitor the company’s future performance improvements, the success of new game launches, and the sustainability of the blockchain business model. Furthermore, attention should be paid to external factors such as intensifying competition and regulatory changes.

    Frequently Asked Questions

    Will Wemade’s stake change negatively impact Wemade Max’s stock price?

    The impact on the short-term stock price is expected to be limited as the change in stake is minimal and doesn’t affect management control.

    What is the future outlook for Wemade Max?

    It has high growth potential based on strong IPs and blockchain technology, but earnings improvement and new business performance are crucial variables.

    What should investors pay attention to?

    Investment decisions should be made considering a comprehensive view of the company’s performance, new game launches, blockchain business models, the competitive landscape, and regulatory changes.

  • WeMade Q1 2025 Earnings Shock: What Should Investors Do?

    1. What Happened? : WeMade’s Q1 2025 Earnings Analysis

    WeMade recorded KRW 116.8 billion in revenue, KRW -28.5 billion in operating profit, and KRW -28.3 billion in net income for Q1 2025. These figures fell short of market expectations by 8%, 94%, and 386%, respectively. In particular, operating profit and net income turned to losses, recording significant deficits.

    2. Why These Results? : Reasons for the Sluggish Performance

    The main reasons for this poor performance are analyzed as the sluggish blockchain business and the slowdown in the game market growth. Issues related to the WEMIX platform and uncertainties in the blockchain market led to a sharp decline in related revenue. Increased competition and new game launch costs also contributed to the decline in profitability.

    3. What’s Next? : Future Outlook

    In the short term, the aftermath of the sluggish performance is expected to continue. However, the solid performance of major games such as ‘Legend of Ymir’ and ‘Night Crow’, and the release of new games based on the ‘Legend of Ymir’ IP are positive factors. Also, the company’s financial soundness remains at a good level, lowering the possibility of a short-term financial crisis. The recovery of the blockchain market and the success of new games will be key variables for future earnings improvement.

    4. What Should Investors Do? : Investment Strategy

    The current investment opinion on WeMade is ‘Sell’ or ‘Hold’. A cautious approach is required rather than aggressive investment. It is advisable to make investment decisions while closely monitoring future earnings trends, new business performance, and the possibility of recovery of the blockchain business.

    Frequently Asked Questions

    Q. What are the main reasons for WeMade’s sluggish performance in Q1 2025?

    A. The sluggish blockchain business and the slowdown in the game market growth are the main reasons. Issues related to the WEMIX platform and uncertainties in the blockchain market led to a sharp decline in related revenue, and increased competition and new game launch costs also contributed to the decline in profitability.

    Q. What is the future outlook for WeMade?

    A. The sluggish performance is expected to continue in the short term, but the solid performance of major games and the release of new games are positive factors. The recovery of the blockchain market and the success of new games will be key variables for future earnings improvement.

    Q. Should I invest in WeMade?

    A. The current investment opinion is ‘Sell’ or ‘Hold’. A cautious approach is required rather than aggressive investment, and it is advisable to make investment decisions while closely monitoring future earnings trends and new business performance.