Financial Data and Key Metrics Changes - The company reported significant financial performance in the first half of 2023, with a focus on revenue growth and profitability metrics [1] Business Line Data and Key Metrics Changes - Specific business lines showed varied performance, with some segments outperforming expectations while others faced challenges [1] Market Data and Key Metrics Changes - The company highlighted its market position and competitive landscape, indicating shifts in market share and customer demand across different regions [1] Company Strategy and Development Direction - The management outlined strategic initiatives aimed at enhancing operational efficiency and expanding market reach, emphasizing innovation and customer-centric approaches [1] Management Comments on Operating Environment and Future Outlook - Management provided insights into the current operating environment, discussing macroeconomic factors and their potential impact on future performance [1] Other Important Information - Additional information included updates on regulatory changes and their implications for the business, as well as ongoing investments in technology and infrastructure [1] Q&A Session Summary Question: What are the key drivers of growth for the company in the upcoming quarters? - Management indicated that product innovation and market expansion are primary growth drivers, alongside strategic partnerships [1] Question: How does the company plan to address competitive pressures? - The response highlighted a focus on enhancing customer value propositions and leveraging technology to differentiate from competitors [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何 損失承擔任何責任。 Qingci Games Inc. 青瓷遊戲有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6633） 截 至 2023 年 6 月 3 0 日止六個月之 中期業績公告 青瓷遊戲有限公司 董事會欣然宣佈本集團截至2023年6月30日止六個月的未經審核 綜合財務業績，連同截至2022年6月30日止六個月的比較數字，呈列如下。 本集團截至2023年6月30日止六個月的中期業績已由審核委員會及本公司獨立核數 師 羅 兵 咸 永 道 會 計 師 事 務 所 根 據 國 際 審 計 及 保 證 準 則 委 員 會 刊 發 的《國 際 審 閱 準 則 第2410號》「實 體 的 獨 立 核 數 師 對 中 期 財 務 資 料 的 審 閱」審 閱。 財務摘要 | --- | --- | --- | --- | |-----------------------------------------------|-- ...

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 630.37 million, a decrease of 43% compared to RMB 1,105.82 million in 2021[11] - Gross profit for the same period was RMB 422.09 million, down 48% from RMB 812.60 million in the previous year[11] - The company reported a net profit of RMB 45.66 million, a significant recovery from a net loss of RMB 368.64 million in 2021, marking a 112% improvement[11] - The adjusted net profit for the year was RMB 46.18 million, down 89% from RMB 422.15 million in 2021[11] - The adjusted profit attributable to equity holders of the company was RMB 50.70 million, a decrease of 88% compared to RMB 423.55 million in the previous year[11] - Total revenue for 2022 reached approximately RMB 630 million, with adjusted profit for the second half of the year at RMB 126 million, reversing the loss from the first half[15] - The adjusted profit for the full year was approximately RMB 50.7 million, despite a decrease in revenue compared to the previous year[19] User Engagement and Metrics - Average Monthly Active Users (MAU) decreased by 37% to 1.60 million from 2.54 million in 2021[12] - Average Monthly Paying Users (MPU) fell by 51% to 214,000 from 440,000 in the previous year[12] - The cumulative registered players increased by 10% to 79.01 million from 71.96 million in 2021[12] - The Average Revenue Per Paying User (ARPPU) rose by 17% to RMB 262 from RMB 224 in 2021[12] - The player community, "Qingci Iron Fans," has grown to 10.6264 million members, reflecting a 0.91% increase from the previous year[22] - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[141] Game Development and Launches - The company plans to launch multiple premium games in 2023, including "New Legend of the Swordsman" and "Time Travel Agency," while continuing to expand its overseas market presence[17] - The game "Magic Card Girl Sakura: Memory Key" will be launched in collaboration with Zhong Shou You, further enriching the game portfolio[16] - The self-developed game "Magic Plan" generated approximately RMB 2.55 million in revenue within the first two months of its launch[26] - The game "Time Travel Agency" is expected to officially launch in 2023, combining elements of Rogue-like RPG, card games, and auto chess[26] - The company plans to continue expanding its game portfolio, including launching 12 mobile games across various genres by the end of 2025[24] Revenue Sources and Trends - Revenue from self-developed games fell by 29.5% to approximately RMB 557.6 million, primarily due to the maturity of "The Strongest Snail" in the Chinese market[30] - Revenue from licensed games decreased by 86.8% to approximately RMB 34.4 million, mainly due to the maturity of "Lantern and Underground City"[30] - Information service revenue dropped by 50.1% to approximately RMB 9.6 million, attributed to a decrease in ad views or clicks within games[33] - The total revenue from all games during the reporting period amounted to approximately RMB 575 million[21] Cost and Expense Management - The company's total income cost decreased by 29.0% from approximately RMB 293.2 million to RMB 208.3 million[34] - Commissions paid to distribution and payment channels decreased by 29.3% to approximately RMB 146.3 million, reflecting a decline in game operation revenue[36] - Employee benefit expenses increased by 97.2% to approximately RMB 18.1 million due to an increase in employee numbers and average salaries[36] - Sales and marketing expenses decreased by 31.2% from approximately RMB 304.2 million for the year ended December 31, 2021, to approximately RMB 209.3 million for the year ended December 31, 2022[39] - Research and development expenses increased by 24.2% from approximately RMB 91.2 million for the year ended December 31, 2021, to approximately RMB 113.3 million for the year ended December 31, 2022[40] Corporate Governance and Compliance - The company is committed to promoting a sustainable and environmentally friendly environment[65] - The company has complied with all relevant laws and regulations affecting its business operations in China during the reporting period[67] - The company manages foreign exchange risk primarily through foreign currency forward contracts[58] - The company is committed to maintaining a robust corporate governance structure with independent directors providing oversight[137] Intellectual Property and Awards - The company has established a knowledge property management system to protect its intellectual property rights, adhering to relevant laws and regulations[175] - The company has received multiple awards, including the "2022 Annual Outstanding Overseas Brand" at the Global Products and Growth Conference[181] - The company has been recognized as a "High-tech Enterprise" by the Xiamen Science and Technology Bureau and other authorities[179] Employee and Workplace Policies - The company emphasizes strict compliance with the Labor Law and Labor Contract Law of the People's Republic of China, ensuring employee rights are protected[187] - The company has established clear dismissal standards and processes to safeguard employee rights, ensuring no arbitrary dismissals occur[188] - The company is committed to creating an equal and diverse workplace, actively promoting the recruitment and development of female talent[190] ESG Initiatives - The company plans to enhance its ESG initiatives, with specific goals set for reducing carbon emissions by 20% over the next three years[148] - The board of directors has approved the ESG report, which highlights the company's commitment to sustainable practices[146] - The company has established an ESG oversight committee to manage and report on ESG matters regularly[148] Market Expansion and Future Plans - The company has set a target to expand its market presence in Southeast Asia, aiming for a 30% increase in market share by 2025[141] - New product launches are expected to contribute an additional RMB 100 million in revenue in the next fiscal year[144] - The company anticipates diversifying its revenue base by providing marketing services to third-party game developers, including Gibit Group, as it continues to develop and operate more games[105]

Financial Performance - Total revenue for the year ended December 31, 2022, was approximately RMB 630.4 million, a decrease of 43% compared to RMB 1,105.8 million in 2021[2] - Gross profit for the same period was RMB 422.1 million, down 48% from RMB 812.6 million in the previous year[2] - The net profit attributable to equity holders was RMB 50.3 million, a significant turnaround from a loss of RMB 367.2 million in 2021[2] - Revenue decreased by 43.0% from approximately RMB 1,105.8 million in 2021 to RMB 630.4 million in 2022[14] - Revenue from self-developed games decreased by 29.5% to approximately RMB 557.6 million, primarily due to the maturity of "The Strongest Snail" in mainland China[16] - Revenue from licensed games decreased by 86.8% to approximately RMB 34.4 million, mainly due to the maturity of "Lantern and Dungeon"[16] - Information services revenue decreased by 50.1% to approximately RMB 9.6 million, attributed to a decline in ad views and clicks within games[18] - Gross profit decreased by 48.1% to approximately RMB 422.1 million, with a gross margin decline from 73% in 2021 to 67% in 2022[22] - Operating profit for the year ended December 31, 2022, was RMB 86.6 million, down from RMB 337.2 million in 2021[41] - Adjusted net profit decreased by 89.1% from approximately RMB 4,221 million for the year ended December 31, 2021, to approximately RMB 462 million for the year ended December 31, 2022, primarily due to the maturity of flagship games and increased R&D investment[34] User Metrics - Average Monthly Active Users (MAU) decreased by 37% to 1.6 million from 2.5 million in 2021[4] - Average Monthly Paying Users (MPU) fell by 51% to 214,000 from 440,000 in the previous year[4] - The cumulative registered players increased by 10% to 79.0 million from 72.0 million in 2021[4] - As of December 31, 2022, the company has accumulated 10.6264 million active players through various social media platforms, representing a growth of 0.91% compared to the end of the previous year[8] Game Development and Releases - The game "The Strongest Snail" generated cumulative revenue of approximately RMB 2.75 billion, with over 23.5 million registered players[6] - The game "The Strongest Snail" achieved revenue of approximately RMB 136 million in Japan within the first week of its launch[6] - The flagship game "The Strongest Snail" was released in Thailand on January 29, 2023, reaching the top of the free game rankings and peaking at fifth place in the sales rankings[11] - The self-developed game "The Magic Plan" generated approximately RMB 25.5 million in revenue within two months of its launch from January 4 to March 4, 2023[12] - The company is preparing to launch the self-developed game "Time Travel Agency" within the year, which combines elements of Rogue-like RPG, card games, and auto chess[12] - The company plans to release the licensed game "New Legend of the Swordsman" in the first half of 2023, featuring high-fidelity recreations of classic single-player storylines[13] - Two new licensed games, "Project 36Z" and "Project V," were added to the game reserve as of March 10, 2023, focusing on simulation and idle gameplay respectively[10] - The company has a game reserve of 12 mobile games, covering various genres including RPG, SLG, and ACT RPG, with plans to expand into overseas markets and develop new original IP games[9] Financial Position and Investments - Total assets increased to RMB 1,916,402 thousand in 2022 from RMB 1,868,903 thousand in 2021, representing a growth of 2.5%[43] - Non-current assets rose to RMB 302,793 thousand in 2022, up from RMB 253,020 thousand in 2021, marking an increase of 19.6%[43] - Total liabilities decreased to RMB 157,502 thousand in 2022 from RMB 222,568 thousand in 2021, a reduction of 29.3%[44] - The company's equity attributable to owners increased to RMB 1,763,427 thousand in 2022 from RMB 1,646,142 thousand in 2021, an increase of 7.1%[43] - The company completed a public offering, raising approximately RMB 744 million after expenses, with 85,000,000 new ordinary shares issued at HKD 11.20 each[69] - The net proceeds from the global offering amounted to approximately HKD 925.8 million after deducting underwriting fees and other estimated expenses[73] - HKD 324.0 million is allocated for expanding the game product portfolio and investing in game R&D capabilities, with HKD 95.2 million already utilized[74] - HKD 231.4 million is designated for expanding overseas business, with HKD 178.8 million already utilized[74] - HKD 138.9 million is allocated to strengthen game publishing and operation capabilities in the Chinese mobile game market, with HKD 61.9 million already utilized[74] - The company plans to make strategic investments and acquisitions in upstream and downstream companies in the mobile gaming industry, with HKD 138.9 million allocated and HKD 93.2 million already utilized[74] Expenses and Cost Management - Sales and marketing expenses decreased by 31.2% from approximately RMB 304.2 million in 2021 to RMB 209.3 million in 2022, mainly due to reduced marketing expenses for mature games[23] - Cost of revenue decreased by 29.0% to approximately RMB 208.3 million, with significant reductions in commissions paid to distribution channels[19] - Employee benefit expenses increased by 97.2% to approximately RMB 18.1 million, driven by an increase in employee numbers and average salaries[21] - R&D expenses increased by 24.2% from approximately RMB 912 million for the year ended December 31, 2021, to approximately RMB 1,133 million for the year ended December 31, 2022, primarily due to increased investment in game development and a rise in the number of R&D personnel[25] - General and administrative expenses decreased by 17.4% from approximately RMB 869 million for the year ended December 31, 2021, to approximately RMB 718 million for the year ended December 31, 2022, mainly due to the elimination of one-time listing expenses of approximately RMB 458 million in 2021[26] Taxation and Income - Income tax expense increased to approximately RMB 329 million for the year ended December 31, 2022, from an income tax benefit of approximately RMB 326 million for the year ended December 31, 2021, mainly due to an increase in the applicable tax rate for a profitable subsidiary[30] - The company reported a total tax expense of RMB 32,879 thousand for the year ended December 31, 2022, compared to a tax benefit of RMB 32,627 thousand in 2021[61] - Other income decreased by 45.8% from approximately RMB 111 million for the year ended December 31, 2021, to approximately RMB 60 million for the year ended December 31, 2022, mainly due to a reduction in R&D subsidies and government grants[28] Corporate Governance and Future Outlook - The company has complied with all corporate governance codes during the reporting period[75] - The company expresses gratitude to shareholders and business partners for their continued support and acknowledges the efforts of its employees[86] - The annual general meeting is scheduled for June 6, 2023, with the notice to be published in April 2023[80] - The company is actively seeking quality game projects to diversify its game portfolio and expand its entertainment content offerings[13] - The "Qingyu" platform is being developed to enhance player engagement and brand recognition, featuring customer service, live streaming, and social interaction capabilities[8]

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 268.1 million, a decrease of 64.9% compared to RMB 762.9 million for the same period in 2021[9]. - Gross profit for the same period was RMB 166.0 million, down 71.1% from RMB 574.5 million in 2021[9]. - The loss attributable to equity holders of the company was RMB 75.7 million, a 19.3% improvement from a loss of RMB 93.8 million in the previous year[9]. - The adjusted net loss for the period was RMB 86.9 million, a significant decline from a profit of RMB 313.7 million in the same period of 2021, representing a 127.7% change[9]. - The net loss for the reporting period decreased by 7.4% from RMB 93.8 million for the six months ended June 30, 2021, to RMB 86.9 million for the six months ended June 30, 2022, attributed to several factors including the maturity of flagship games and increased marketing expenses for new game launches[36]. - The total comprehensive loss for the period was RMB 30,072 thousand, compared to a total comprehensive loss of RMB 86,872 thousand in the previous period, showing an improvement in overall performance[78]. User Engagement - Average Monthly Active Users (MAU) decreased by 23.4% to 2.35 million from 3.06 million in the prior year[10]. - Average Monthly Paying Users (MPU) fell by 50.6% to 284,000 compared to 575,000 in the same period last year[10]. - Cumulative registered players increased by 12.0% to 76.16 million from 67.98 million in the previous year[10]. - The average monthly active users (MAU) for the first half of 2022 was approximately 2.35 million, with an ARPPU of RMB 209[11]. - The player retention rate for "The Strongest Snail" exceeded 26.1% since its launch, while "Lantern and Underground City" had a retention rate of 32.68%[12][13]. Game Development and Strategy - The company is focusing on new product development and market expansion strategies to improve future performance[9]. - The company aims to continue expanding its game offerings and enhance its competitive edge through a robust research and development model[15]. - The company has 13 mobile game projects in development, including RPG, SLG, and ACT RPG genres, with expected launch dates ranging from 2022 to 2024[16]. - The company has made significant progress in its game pipeline, including the introduction of new games such as "New Sword and Fairy: The Sword Questioning Love" and "Code: Key"[15]. - The company is preparing to launch "The Strong Snail" in Thailand and North America, along with an H5 version for broader access[17]. Revenue Breakdown - Revenue from game operations decreased by 66.0% to RMB 248.3 million for the six months ended June 30, 2022, primarily due to the maturity of "The Strong Snail" in the Chinese market[21]. - Revenue from self-developed games fell by 54.6% to RMB 225.2 million during the same period, attributed to the same maturity issue[21]. - Revenue from licensed games dropped by 90.1% to RMB 23.1 million, mainly due to the maturity of "Lantern and Underground City"[22]. - Revenue from service transferred over time was RMB 119,905 thousand, down from RMB 389,478 thousand, indicating a decrease of 69.1%[105]. - Revenue from mainland China was RMB 233,522 thousand, a decrease of 68.5% from RMB 742,945 thousand in 2021[106]. Expenses and Costs - Research and development expenses increased by 208.4% from RMB 18.0 million to RMB 55.6 million, mainly due to an increase in the number of employees and average salaries[30]. - Sales and marketing expenses decreased by 38.1% from RMB 245.1 million to RMB 151.7 million, attributed to the maturity of certain games[29]. - Employee benefits expenses increased significantly to RMB 113,966 thousand from RMB 36,074 thousand, reflecting a rise of 215.5%[107]. - Commission from distribution and payment channels decreased by 48.4% to RMB 67.995 million, primarily due to a decline in gaming operation revenue[27]. - Revenue cost decreased by 45.8% from RMB 188.4 million for the six months ended June 30, 2021, to RMB 102.1 million for the six months ended June 30, 2022[25]. Financial Position - The total cash and cash equivalents decreased by 31.3% from RMB 1,168.1 million as of December 31, 2021, to RMB 802.6 million as of June 30, 2022, primarily due to the use of funds raised from global offerings and short-term investments[40]. - The current ratio as of June 30, 2022, was 527.7%, compared to 438.5% as of June 30, 2021, indicating improved liquidity[40]. - The debt-to-asset ratio as of June 30, 2022, was 17.5%, down from 192.6% as of June 30, 2021, reflecting a significant reduction in liabilities[40]. - The company held investment funds and financial products with a fair value of approximately RMB 355.3 million as of December 31, 2021, with specific investments representing over 5% of total assets[41]. - The total liabilities increased to RMB 335,753 thousand from RMB 222,568 thousand, marking a rise of approximately 50.8%[75]. Shareholder Information - The total number of issued shares as of June 30, 2022, was 691,330,500[49]. - The ownership structure shows that Mr. Yang holds 29.81% of the shares through Keiskei Holding Ltd.[49]. - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2022[48]. - The company declared a dividend distribution of RMB 89,320 thousand for the period ending June 30, 2022, compared to RMB 180,000 thousand for the year ending December 31, 2021[196]. - The company raised approximately HKD 71 million (equivalent to RMB 58 million) by issuing 6,330,500 new ordinary shares at HKD 11.20 per share on January 12, 2022[171]. Taxation and Compliance - The income tax expense increased by 240.4% from RMB 9.5 million for the six months ended June 30, 2021, to RMB 13.4 million for the six months ended June 30, 2022, primarily due to an increase in the applicable tax rate for a profitable subsidiary[35]. - The total tax expense for the six months ended June 30, 2022, was RMB 13,373,000, compared to a tax benefit of RMB 9,528,000 for the same period in 2021[116]. - The company has complied with all corporate governance codes during the reporting period[64]. - The company has not recognized deferred tax assets for tax losses, resulting in a tax expense of RMB 13,373,000 for the reporting period[118]. - The group has claimed an excess deduction of 175% on R&D expenses, impacting the taxable profit calculation[114].

Financial Performance - Total revenue for the year ended December 31, 2021, was RMB 1,105,816, a decrease of 10% from RMB 1,226,920 in 2020[9] - Gross profit for the same period was RMB 812,599, down 14% from RMB 942,355 in 2020[9] - The company reported a loss attributable to equity holders of RMB 367,231, compared to a profit of RMB 103,739 in 2020, representing a 454% decline[9] - Adjusted net profit for the year was RMB 422,147, an increase of 154% from RMB 166,156 in 2020[9] - Game operation revenue decreased by 3.9% year-on-year to RMB 1,050.7 million for the year ended December 31, 2021[41] - Game licensing revenue fell by 38.9% year-on-year to RMB 35.8 million, primarily due to decreased licensing income from "Unexpected Maze" and "The Strong Snail" in Hong Kong, Macau, and Taiwan[41] - Information service revenue decreased by 74.5% year-on-year to RMB 19.3 million, mainly due to a reduction in ad views or clicks within games[42] - The revenue from self-developed games decreased by 26.9% to RMB 790.9 million, mainly due to reduced income from "The Strongest Snail"[44] - The fair value gain of investments measured at fair value through profit or loss increased from RMB 0.6 million in the year ended December 31, 2020, to RMB 5.0 million in the year ended December 31, 2021, representing a growth of 746.8%[53] - Other losses decreased by 65.4% from RMB 27.1 million in the year ended December 31, 2020, to RMB 9.4 million in the year ended December 31, 2021[56] - Income tax benefit increased significantly from an expense of RMB 9.6 million in the year ended December 31, 2020, to a benefit of RMB 32.6 million in the year ended December 31, 2021, a change of 440.7%[57] User Engagement - Average Monthly Active Users (MAU) decreased by 26.3% to 2,542,000 from 3,448,000 in 2020[10] - Average Monthly Paying Users (MPU) decreased by 11.2% to 440,000 from 495,000 in 2020[10] - The Average Revenue Per Paying User (ARPPU) increased by 8.4% to RMB 224 from RMB 206 in 2020[10] - Cumulative registered players reached 71,960,000, a growth of 20.8% from 59,585,000 in 2020[10] - The company has built a loyal community of 10.53 million active players, contributing to its growth and engagement[12] - The total registered users reached 72 million, representing a year-on-year growth of 20.8%, with an average monthly active user count of 2.5 million[19] Game Development and Releases - The company operates six mobile games and has a strong pipeline of 11 games[12] - The self-developed game "The Strongest Snail" generated cumulative revenue of over RMB 2 billion within 14 months of its launch, with strong ongoing performance[14] - The newly launched game "Lantern and Dungeon" achieved revenue exceeding RMB 180 million in its first month, receiving positive market feedback[14] - The game "The Strongest Snail" recorded cumulative revenue of approximately RMB 820 million for the year, with an average MAU exceeding 1.2 million and a weekly player retention rate of over 26.4%[22] - The game "Unusual Maze" generated total revenue of approximately RMB 50 million in 2021, with an average MAU of over 218,000[24] - The game "Lantern and Dungeon" had approximately 4.7 million registered users by the end of 2021, achieving revenue of RMB 250 million for the year[25] - The company is actively preparing for the release of "The Strongest Snail" in Japan, Europe, and Southeast Asia, indicating plans for market expansion[14] - The company continues to enhance its game development and operational strategies, focusing on building a robust overseas publishing team for future growth[14] Expenses and Cost Management - Research and development expenses decreased by 38% to RMB 91.2 million, primarily due to reduced bonuses from "The Strong Snail" revenue decline[50] - Sales and marketing expenses decreased by 45.6% to RMB 304.2 million, mainly due to reduced promotional spending as "The Strong Snail" reached maturity[49] - General and administrative expenses decreased by 16% to RMB 86.9 million, with a 12.4% decline after excluding one-time listing expenses[51] - Revenue cost increased by 3.0% year-on-year to RMB 293.2 million, with significant increases in third-party game developer commissions[43] Corporate Governance and Compliance - The board of directors includes both executive and independent non-executive members, ensuring governance and oversight[95] - The company has established committees for remuneration, audit, and nomination to enhance corporate governance[94] - The company has complied with all relevant laws and regulations in China regarding game publishing and operations, with no significant violations reported during the reporting period[92] - The independent auditor has reviewed the group's performance for the year ended December 31, 2021, confirming compliance with accounting policies and internal controls[180] Shareholder Information - The board proposed a final dividend of HKD 0.152 per share, totaling HKD 105 million, subject to shareholder approval[86] - The company has no existing equity-linked agreements as of the reporting period[116] - The board of directors and senior management hold significant shares, with Mr. Yang owning 29.81% and Mr. Huang owning 3.62% of the shares[121] - The company has no preferential purchase rights as per its articles of association or Cayman Islands law[109] Employee and Community Engagement - The company has 432 full-time employees as of December 31, 2021, with the majority located in China[75] - The company provides competitive compensation and benefits to attract and retain qualified personnel, including monthly social insurance contributions[104] - The company made charitable donations totaling RMB 2.59 million during the reporting period[114] - The company regularly provides training to employees to enhance their skills and keep them updated with industry developments[105] Future Plans and Investments - The company plans to allocate HKD 231.4 million for expanding its business in overseas markets, with the full amount unutilized until December 2024[176] - The company plans to strengthen its game publishing and operational capabilities in the Chinese mobile gaming market with an allocation of HKD 138.9 million, remaining unutilized until December 2024[178] - Strategic investments and acquisitions in upstream and downstream companies in the mobile gaming industry are planned with an allocation of HKD 138.9 million, remaining unutilized until December 2024[178] Risks and Challenges - The company faces various risks related to its gaming publishing business and the regulatory environment in China, which may impact operations[91] - There are significant risks associated with the contractual arrangements, including potential non-compliance with Chinese laws, which could lead to severe consequences for the company[168] - The company relies on its Chinese subsidiaries for dividend payments to meet cash and financing needs, which could be adversely affected by regulatory restrictions[170] - Tax reviews by Chinese authorities could result in additional tax liabilities, significantly reducing the company's net income and investment value[170]