2. High market concentration. In terms of mobile games revenue by company in China, Tencent and NetEase combined accounted for nearly 70% of the domestic mobile game market revenue, while none of the other remaining firms have more than 5% market share. In the first half of 2016, 102 National Equities Exchange and Quotations (NEEQ) listed game company net profit came to a combined 1.126 Bn RMB, which was less than one-tenth of Tencent's net profit over the same period. In addition, in the above mentioned 102 companies, 38% of these had a loss. (Note: NEEQ is basically a stock exchange with lower requirements that allow medium sized companies to acquire financing from the public market) 3.High Channel Distribution Costs.