Lantian is winning at economics of games

Tong Wangyue
Lantian Economic City in Nanxiang Town has introduced 20,000 enterprises including over 1,200 game enterprises with an annual tax income of 1.2 billion yuan (US$170 million).
Tong Wangyue

Lantian Economic City in Nanxiang Town has introduced 20,000 enterprises including over 1,200 game enterprises with an annual tax income of 1.2 billion yuan (US$170 million).

Last year, the output value of the country’s game industry reached 230 billion yuan. Lantian Economic City contributes a 10th of that.

Lantian, near the Nanxiang exit of the Hujia Expressway, is an economic district established in 1994. It currently focuses on games, precision marketing, Internet of Things and blockchain industries.

In 2009, a staff member got to know a 28-year-old man who ran a mobile game company registered elsewhere.

“We tried attracting him to Lantian. He requested that he register the company in Nanxiang as soon as possible,” said Zhu Gang, Lantian’s deputy general manager.

“The mobile game industry was not popular at that time. However, we tried our best to help every company. We then achieved his requirements through various channels.”

Zhu and colleagues were surprised when the company generated 2 million yuan in tax income the next year, and within a few years, that became tens of millions of yuan. The young man was Lin Qi, now chairman and CEO of Yoozoo Games.

Player complaints are a problem for game companies. How to help enterprises deal with them is a challenge for Lantian. Many players complain to the market supervision department and tax department so Lantian builds a bridge between enterprises and government departments.

Once, a game company was suspected of tax evasion. With the help of Lantian, the tax department finally proved that the company was innocent.

Lilith CFO Hu Rui said that when Lilith was still a small company, Lantian arranged special personnel to follow up on tax rate verification, industrial and commercial registration and offered them various services.

In 2014, when Lilith’s “Allstar Heroes” game was launched, it ranked first in domestic games for several months. The company’s monthly turnover suddenly reached 2.3 billion yuan.

“Lantian also helped us upgrade invoices and improve the efficiency of the company’s billing. Over the years, we have also introduced some entrepreneurial teams in the game field to Lantian,” said Hu.

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