Updates from Annual General Meeting. -
I attended a meeting where I met the Director and Company Secretary in person. CEO Kin, other directors, and some shareholders joined via Zoom.
Regarding the resolutions, I was surprised by the voting numbers; I expected much higher opposition. Nonetheless, the resolutions passed immediately without any objections or comments.
During the Q&A session, I bombarded them with numerous questions about their poor performance, while surprisingly, no one else asked any questions. It was peculiar that major shareholders like Animoca did not raise any concerns, possibly having separate discussions with the Board.
I repeatedly questioned why there is no communication to shareholders about any contracts or games being signed. They claimed they have tried in the past, but their ASX advisor has treated these announcements as promotional rather than substantial news due to the lack of numbers and other confidential information. They also mentioned that the other party usually needs to agree before they can release such information. Despite giving them many examples of Playside’s communication strategies, they insisted they will continue to provide whatever they can to shareholders. Given their past performance, my expectations remain low.
In summary, they acknowledged the need for improvement and promised to do so, though they have made similar promises before, leaving future outcomes uncertain. Both the Director and Mr. Kin expressed dissatisfaction with the share performance and stated they are trying their best to deliver value to shareholders, but this effort is not being communicated effectively to us.
Key Updates:
Metal Genesis: Still a work in progress, and they might release alpha soon. When questioned why this was never mentioned in updates, the response was that they do not report on every single project and its progress.
Engineers NFT: Development work is complete, and they are ready to release at any time but are waiting for better NFT market conditions. Despite improvements in the crypto market, NFTs have not rebounded, and they do not want to release without benefiting from favorable conditions.
ZKCandy: Focus is on this platform, with both parties, Candy and Zksync, keen on its development. The platform is designed for gamers, with revenue based on usage and gas fees.
WFH: Showing stable and better progress compared to last year, with optimism that this trend will continue.
Revenue from Other Games: I questioned why so many projects have started but are not bringing in revenue. Mr. Kin responded that these projects do bring revenue, including recent work with Animoca on "Snaky Cat," which is also contributing to the revenue.
They acknowledged issues regarding the lack of responses to shareholders on email , phone and promised to improve communication. Concerning late quarterly reports, the Company Secretary mentioned that they have started working on improvements and aim to release them more promptly in the future.
Regarding the IPO for Lemon Sky, they did not deny any plans, indicating openness to any opportunities that would bring value to shareholders.
In summary, the company has potential, and they seemed confident about changing the current sentiment. They also aim to hold quarterly investor sessions but until we see some practical change, its hard to believe...
(20min delay)