Core Insights - Qingci Games (06633) reported a revenue of RMB 628 million for the year ending December 31, 2024, with a gross profit of RMB 363 million, achieving a profit of RMB 51.12 million, reversing a loss of RMB 37.37 million from the previous year [1] - The overseas revenue share increased from 28.47% to 43.93% year-on-year, indicating strong international market growth [1] - The total registered players reached 98.28 million, an 11.24% increase year-on-year, with an average monthly active user count of approximately 2.36 million and an average revenue per paying user (ARPPU) of RMB 265 [1] Game Performance - The flagship game "The Strong Snail" has generated cumulative revenue of approximately RMB 3.629 billion since its launch in June 2020, with a total of 29.05 million registered players [2] - The game celebrated its fourth anniversary in mainland China and has expanded its presence in overseas markets, including Japan, North America, and Australia, with significant collaborations and new language versions launched [2] - Other games like "Lighting and Dungeon" and "New Legend of Sword and Fairy" have also shown strong performance, contributing revenues of RMB 13.59 million and RMB 97.6 million respectively [3] Product Expansion - Qingci Games continues to expand its product matrix with several new releases in 2024, including "Fat Goose Gym" and "Aris Virus 2," which have received positive player feedback and generated revenues of RMB 59.74 million and RMB 23.18 million respectively [5] - The company has successfully launched a free version of "Incredible Maze" on Steam, achieving significant popularity and recognition [5] - The ongoing development and release of various games demonstrate the company's commitment to long-term IP management and market expansion [5]

Group 1 - The company reported a revenue of approximately 628 million yuan and a gross profit of about 363 million yuan for the year 2024, achieving a profit attributable to equity holders of 51.12 million yuan, marking a turnaround from loss to profit year-on-year [1] - As of December 31, 2024, the company had a total of 98.28 million registered players, an increase of 11.24% year-on-year, with monthly active users averaging around 2.36 million and monthly paying users approximately 227,800; the ARPPU reached 265 yuan [1] Group 2 - The company continues to iterate on its self-developed games, with its flagship game "The Strongest Snail" achieving high rankings in free and best-selling game charts in multiple overseas markets, generating cumulative revenue of approximately 3.629 billion yuan from both domestic and international markets as of December 31, 2024 [2] - The company is actively developing its self-researched game "Project E," which is an innovative SLG game expected to enhance content and gameplay in 2025 [2] - The company has improved its long-term operational capabilities in game publishing, with overseas revenue growing from 28.47% to 43.93% year-on-year, indicating a significant enhancement in global publishing strength [2] - The company is steadily strengthening its core competitiveness in research and operations, promoting the globalization of its game products and further expanding its overseas market presence [2]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of RMB 627.96 million, a decrease of 31% compared to RMB 905.74 million in 2023[3] - Gross profit for the same period was RMB 363.12 million, reflecting a decline of 35% from RMB 557.88 million in the previous year[3] - The company achieved a net profit attributable to equity holders of RMB 51.12 million, reversing a loss of RMB 37.37 million in 2023, marking a significant improvement of 237%[3] - The company's revenue for the year ending December 31, 2024, is approximately RMB 628.0 million, a decrease of 30.7% compared to RMB 905.7 million for the year ending December 31, 2023[21] - Total revenue for the year ended December 31, 2024, was RMB 3,627.962 million, compared to RMB 905.737 million for the year ended December 31, 2023, representing a significant increase[51] - The net profit for the year ended December 31, 2024, was RMB 47.128 million, a turnaround from a loss of RMB 37.600 million in the previous year[53] - Total comprehensive income for the year ended December 31, 2024, was RMB 63.961 million, compared to a loss of RMB 16.277 million in the previous year[53] User Metrics - The average monthly active users (MAU) decreased by 5% to 2.36 million from 2.48 million in the previous year[4] - The average monthly paying users (MPU) saw a significant drop of 43% to 228,000 from 401,000 in 2023[4] - The cumulative registered players increased by 11% to 98.28 million, up from 88.34 million in the previous year[8] - The player community, 青瓷铁粉, grew by 18.59% year-on-year, reaching 15.84 million members[17] Game Performance - The flagship self-developed game "The Strongest Snail" generated cumulative revenue of approximately RMB 3.63 billion as of December 31, 2024[7] - The game "T灯与地下城" generated approximately RMB 13.59 million in revenue during the reporting period[11] - "新仙剑奇侠传之挥剑问情" achieved revenue of about RMB 97.60 million and ranked first in the iOS free game chart after its launch[11] - "魔卡少女樱：回忆钥匙" recorded revenue of approximately RMB 22.99 million and topped the iOS free game chart in multiple regions[12] - "肥鹅健身房" launched in Japan and earned around RMB 59.74 million, reaching the top of both iOS and Google Play free game charts[13] - "迷途之光" generated revenue of about RMB 8.51 million during its reporting period[13] - Cumulative registered players for "不思议迷宫" exceeded 25 million as of December 31, 2024, with revenue of approximately RMB 7.44 million[14] - The group’s games generated a total revenue of approximately RMB 26.02 million from several titles during the reporting period[15] - The group’s mini-program games, including "最强蜗牛," recorded revenue of about RMB 21.52 million[16] Revenue Breakdown - Revenue from self-developed games decreased by 28.1% to approximately RMB 365.2 million, primarily due to declines in revenue from "The Strong Snail" and "Magic Plan" in various regions[26] - Revenue from licensed games decreased by 37.6% to approximately RMB 228.3 million, mainly due to declines from "New Sword and Fairy" and "Cardcaptor Sakura"[26] - Information services revenue increased by 66.8% to approximately RMB 16.3 million, driven by increased ad views or clicks within games[25] - Other services and sales revenue increased by 99.9% to approximately RMB 7.2 million, primarily due to increased sales of peripheral products and marketing through third-party platforms[27] - The proportion of revenue from mainland China decreased to 56.1% in 2024 from 71.5% in 2023, while revenue from other regions increased to 43.9% from 28.5%[21] Expenses and Costs - The cost of revenue decreased by 23.9% to approximately RMB 264.8 million, down from RMB 347.9 million in the previous year[28] - Sales and marketing expenses decreased by 49.7% from approximately RMB 429.2 million for the year ended December 31, 2023, to approximately RMB 216.0 million for the year ended December 31, 2024[34] - Research and development expenses increased by 0.6% from approximately RMB 105.5 million for the year ended December 31, 2023, to approximately RMB 106.1 million for the year ended December 31, 2024[35] - General and administrative expenses rose by 24.6% from approximately RMB 49.0 million for the year ended December 31, 2023, to approximately RMB 61.0 million for the year ended December 31, 2024[36] Financial Position - Total cash and cash equivalents decreased by 16.4% from approximately RMB 538.0 million as of December 31, 2023, to approximately RMB 450.0 million as of December 31, 2024[43] - The company had borrowings of RMB 20.0 million as of December 31, 2024, with an unused bank credit facility of RMB 70 million[43] - As of December 31, 2024, the group's current assets were approximately RMB 1,686.9 million, while current liabilities were approximately RMB 165.5 million, resulting in a current ratio of 1,019%[44] - The asset-liability ratio as of December 31, 2024, was 9%, down from 13% as of December 31, 2023, indicating improved financial stability[44] - Total liabilities as of December 31, 2024, amounted to RMB 174,232 thousand, a decrease from RMB 255,968 thousand in 2023[68] Future Plans and Developments - The company is focusing on enhancing product quality and operational efficiency to adapt to the evolving gaming industry landscape[5] - The upcoming game "Project E" is expected to undergo expanded testing in 2025, aiming to establish a new milestone for the company's self-developed game portfolio[7] - The company plans to continue launching new games and global releases to mitigate revenue declines from mature titles[24] - The company plans to enhance its game development capabilities and expand its overseas market presence by utilizing the proceeds from its global offering[85] - The group plans to launch multiple mobile games across various genres, with several titles expected to be released between 2025 and 2026[19] Governance and Compliance - The company has adopted the corporate governance code as its own and has complied with all provisions during the reporting period[86] - The audit committee, consisting of three independent non-executive directors, has reviewed the group's performance for the year ending December 31, 2024[89] - The new auditor, Hong Kong Lixin Dehao CPA Limited, will take effect from November 29, 2024, following the resignation of PwC[90] - The company maintains the minimum public float as required by the listing rules[88] Shareholder Information - The company will not recommend any final dividend for the year ending December 31, 2024[93] - The annual general meeting is scheduled for June 6, 2025, with a notice to be published in April 2025[92] - The company will suspend share transfer registration from June 3 to June 6, 2025, to determine shareholder attendance at the AGM[94] - The annual report for the year ending December 31, 2024, will be published in April 2025[95] - The company expresses sincere gratitude to shareholders, business partners, and employees for their continued support and efforts[100]

董事會會議通告 青瓷游 戲 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）謹 此 宣 佈，董 事 會 會 議 將 於2025年3月27日（星 期 四）舉 行，藉 以（其 中 包 括）考 慮 及 批 准 本 公 司 及 其 附 屬 公 司 截 至2024年12月31日 止 年 度 業 績 及 其 發 佈，並 考 慮 建 議 派 發 末 期 股 息（如 有）。 承董事會命 青瓷游 戲有限公司 執行董事 劉斯銘 香港，2025年3月14日 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之內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不對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. 青瓷游戲有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6633） 於本公告日期，董事會包括執行董事楊煦先生、黃智強先生、劉斯銘先生及曾祥碩先生；及獨立非執行董事 林誠光教授、袁淵先生及方煒瑾女士 。 ...

Investment Rating - The report maintains a "Positive" investment rating for the media internet industry [4] Core Insights - The report emphasizes the potential of domestic open-source models to overcome computational and chip limitations, accelerating technological catch-up. Major internet companies are expected to undergo value reassessment in AI development, with a focus on companies like Tencent, Alibaba, Kuaishou, and Bilibili [4] - Tencent's AI products are rapidly iterating, with the launch of "Hunyuan Turbo S," which has doubled the articulation speed and reduced initial latency by 44%. This indicates a proactive shift in Tencent's AI business strategy [4] - The report highlights the importance of companies that embrace new technologies and possess data, user, and application advantages, suggesting a focus on companies like Kunlun Wanwei, Meitu, and others [5] Summary by Sections Industry Performance - The media sector ranked fifth among all industries with a 5.16% increase from March 3 to March 7, 2025 [10][14] AI Developments - The report discusses the launch of the AI Agent product Manus by the Monica.im team, which has achieved state-of-the-art performance in GAIA benchmark tests, surpassing similar models from OpenAI. Manus features autonomous planning and learning capabilities, indicating significant advancements in AI applications [6][23] Gaming Sector - The report suggests exploring the potential of AI in gaming, particularly in mobile internet games that have weaker commercialization. Companies like Tencent, NetEase, and others are recommended for their innovative approaches [7] Film and Television - The report notes that quality content like "Nezha: The Devil's Child" is expected to drive box office demand and suggests monitoring key film producers and cinema companies [7][39] - In the television sector, the report highlights the performance of popular series, with "Nan Hong" leading in viewership [44] Internet Companies - The report indicates that major internet companies like Tencent and Alibaba are showing resilience in their financial performance, with a focus on strategic adjustments in their organizational structures [8] Publishing and Media - The report advises monitoring state-owned publishing companies as they explore new business models and continue to push for industry consolidation [9] AI Investment Events - The report details ten AI investment events, with significant funding rounds, including a $2 billion investment in SSI, indicating strong market interest in AI and frontier technology [29][30]

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之內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不對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. 青瓷游戲有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6633） 本公告乃由青瓷游 戲 有 限 公 司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」）根 據 香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則（「上市規則」）第13.09(2)條及香港法例第571章《證 券 及 期 貨 條 例》第XIVA部 內 幕 消 息 條 文（定 義 見 上 市 規 則）而 作 出。 根據對本集團截至2024年12月31日 止 年 度（「報告期間」）未 經 審 核 管 理 賬 目 的 初 步 審 閱 及 本 公 司 董 事 會（「董事會」）目 前 可 得 資 料，董 事 會 謹 此 告 知 本 公 司 股 東（「股 東」）、投 資 者 及 有 意 投 資 者，本 集 團 預 期 轉 虧 為 盈，於 報 告 期 間 錄 得 利 潤 淨 額 介 乎 ...

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之內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不對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。 茲提述(i)青瓷游 戲 有 限 公 司（「本公司」）日 期 為2021年12月6日 的 招 股 章 程，內 容 有 關委任朱承印先生（「朱先生」）為聯席公司秘書之一以及香港聯合交易所有限公司（「聯 交所」）向本公司授出豁免，以豁免嚴格遵守聯交所證券上市規則（「上市規則」）第3.28 條及第8.17條有關朱先生出任聯席公司秘書的資格之規定，相關豁免期自本公司上 市日期2021年12月16日起至2024年12月15日 止 為 期 三 年（「豁免期間」）；及(ii)本公司 日期為2023年6月6日 的 公 告，內 容 有 關（其 中 包 括）更 換 本 公 司 另 一 名 聯 席 公 司 秘 書以及聯交所向本公司授出有關朱先生出任聯席公司秘書的資格之新豁免。 本公司欣然宣佈，本公司已於近期獲得聯交所確認，朱先生於2024年12月15日豁免 期間屆滿後已符合上市規則第3.28條及第8.17條所規定擔任本公司公司秘 ...

更換核數師 本公告乃由青瓷游 戲 有 限 公 司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」）根 據 香 港 聯 合 交 易 所 有 限 公 司（「聯交所」）證 券 上 市 規 則（「上市規則」）第13.51(4)條作出。 核數師辭任 於2024年6月6日 舉 行 的 本 公 司 股 東 週 年 大 會 上，羅 兵 咸 永 道 會 計 師 事 務 所（「羅 兵 咸永道」）獲 續 聘 為 本 公 司 核 數 師（「核數師」），任 期 直 至 本 公 司 下 屆 股 東 週 年 大 會 結 束 為 止，並 授 權 本 公 司 董 事 會（「董事會」）釐 定 其 薪 酬。 董 事 會 謹 此 宣 佈，鑑 於 近 期 市 場 訊 息 並 考 慮 到 本 公 司 現 時 業 務 狀 況 及 未 來 審 計 服 務 需 要，經 本 公 司 與 羅 兵 咸 永 道 就 建 議 更 換 核 數 師 進 行 溝 通 後，羅 兵 咸 永 道 已 同 意辭任核數師，自2024年11月29日起生效。 本 公 司 乃 根 據 開 曼 群 島 法 例 註 冊 成 立，據 董 事 會 所 知，開 曼 群 島 法 例 並 無 ...

[Company Information](index=2&type=section&id=Company%20Information) [Company Profile](index=3&type=section&id=Company%20Profile) This section outlines Qincai Games Co., Ltd.'s fundamental information, including its board, committees, key personnel, and auditor, PricewaterhouseCoopers - Executive Directors include Mr. Yang Xu (Chairman), Mr. Huang Zhiqiang, Mr. Liu Siming, and Mr. Zeng Xiangshuo[3](index=3&type=chunk) - The company's auditor is PricewaterhouseCoopers[6](index=6&type=chunk) [Financial and Operational Highlights](index=5&type=section&id=Financial%20Highlights) [Key Financial and Operational Data](index=5&type=section&id=Key%20Financial%20and%20Operational%20Data) In H1 2024, revenue grew 3% to RMB 343 million, while gross profit and net profit declined, and MAU increased 21% despite a 7% drop in ARPPU H1 2024 Financial Summary | Indicator | For the Six Months Ended June 30, 2024 (RMB Thousand) | For the Six Months Ended June 30, 2023 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 342,622 | 333,937 | 3% | | Gross Profit | 211,787 | 225,413 | (6%) | | Net Profit | 38,203 | 41,717 | (8%) | | Profit Attributable to Equity Holders of the Company | 45,059 | 41,482 | 9% | H1 2024 Key Operational Data | Indicator | For the Six Months Ended June 30, 2024 | For the Six Months Ended June 30, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Average MAU (Thousand People) | 2,179 | 1,798 | 21% | | Average MPU (Thousand People) | 253 | 258 | (2%) | | ARPPU (RMB) | 275 | 296 | (7%) | | Cumulative Registered Players (Thousand People) | 93,389 | 82,365 | 13% | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Business Overview](index=6&type=section&id=Business%20Overview) The Group strengthened its integrated R&D and operations, achieving stable business growth driven by significant overseas expansion, robust performance of core games, and a continuously enriched product pipeline - Overseas game business achieved significant growth, with H1 2024 overseas revenue reaching **RMB 143 million**, a year-on-year increase of approximately **120%**, and its revenue contribution rising from 19.4% to **41.7%**[14](index=14&type=chunk) - The flagship self-developed game 'The Strongest Snail' performed steadily, with its cumulative gross billings both domestically and internationally reaching approximately **RMB 3.46 billion** as of June 30, 2024[14](index=14&type=chunk) - The Group continues to enrich its game pipeline, including refining the self-developed SLG game 'Project E' and introducing quality games like 'Project W' and 'Project HA'[14](index=14&type=chunk) [Our Games](index=7&type=section&id=Our%20Games) As of June 30, 2024, the Group's portfolio includes 13 mobile and several mini-program games, with 'The Strongest Snail' and 'Sword and Fairy' being top revenue contributors H1 2024 Revenue Contribution by Major Games | Game Title | Revenue for the Period (Approx. RMB Million) | | :--- | :--- | | 'The Strongest Snail' | 189 | | 'Sword and Fairy: Together Forever' | 66.7 | | 'Fat Goose Fitness' | 27.1 | | 'Cardcaptor Sakura: Memory Key' | 17.4 | | 'Lantern and Dungeon' | 11.7 | | 'Light of the Lost' | 3.2 | | Mini-Program Games | 3.4 | - 'The Strongest Snail' maintains vitality through collaborations with renowned IPs like 'Kairosoft Games,' 'Calabash Brothers,' and 'Sanrio,' alongside expansion into Vietnamese and multi-language European markets[16](index=16&type=chunk) - The new game 'Fat Goose Fitness' launched in Japan in February 2024, immediately topping both iOS and Google Play free game charts, demonstrating strong publishing capabilities[18](index=18&type=chunk) [Player Community](index=9&type=section&id=Player%20Community) The 'Qingci Iron Fan Community' actively engages players via social media, growing its fan base by 25.24% to 14.97 million by June 30, 2024, enhancing game development and player acquisition - As of June 30, 2024, the 'Qingci Iron Fan' community has accumulated **14.9728 million** followers, representing a **25.24%** year-on-year increase[20](index=20&type=chunk) [Future Outlook](index=9&type=section&id=Future%20Outlook) The Group plans to expand its product portfolio and accelerate domestic and international launches of diverse reserved games, with 'Project E' and 'Project W' as key focuses, alongside continued overseas market expansion Mobile Game Pipeline | Name | Game Type | Source | Expected Launch Time | | :--- | :--- | :--- | :--- | | Project: Totem | Tower Defense | Licensed | 2024 | | Project V | Idle Game | Licensed | 2025 | | Project W | Card RPG | Licensed | 2025 | | Project HA | Card RPG | Licensed | 2025 | | Project E | SLG | Self-developed | 2025 | | Project 36Z | Idle Game | Licensed | 2025 | | Project T | SLG | Licensed | 2026 | | Project F | Survival Social | Licensed | 2026 | - The newly introduced 'Project W' is a 2D semi-turn-based card game adapted from the renowned novel 'The Great Ruler,' highly anticipated by the market[22](index=22&type=chunk) - Overseas market expansion continues, with the idle RPG card game 'BloodAge' launched in South Korea in September 2024, topping both app store charts[22](index=22&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) H1 2024 total revenue grew 2.6% to RMB 343 million, driven by licensed games, but increased commission costs reduced gross margin from 68% to 62%, resulting in an 8.4% profit decline to RMB 38.2 million [Revenue Analysis](index=11&type=section&id=Revenue%20Analysis) Total revenue increased 2.6% to RMB 343 million, primarily driven by a 1.5% rise in game operation revenue and a 57.2% surge in licensed game revenue, offsetting a decline in self-developed game revenue Revenue Composition (For the Six Months Ended June 30) | Business Category | 2024 (RMB Thousand) | 2023 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Game Operation Revenue** | | | | | - Self-developed | 196,738 | 237,930 | (17.3) | | - Licensed | 126,434 | 80,433 | 57.2 | | **Subtotal** | **323,172** | **318,363** | **1.5** | | Game Licensing Revenue | 6,323 | 11,317 | (44.1) | | Information Service Revenue | 9,290 | 2,528 | 267.5 | | Other Services and Sales | 3,837 | 1,729 | 121.9 | | **Total Revenue** | **342,622** | **333,937** | **2.6** | - The growth in licensed game revenue was primarily driven by the launch of new games like 'Fat Goose Fitness' and 'Light of the Lost,' as well as the continued contribution from 'Cardcaptor Sakura: Memory Key'[25](index=25&type=chunk) [Cost of Revenue Analysis](index=12&type=section&id=Cost%20of%20Revenue%20Analysis) Cost of revenue rose 20.6% to RMB 131 million, primarily due to a 221.0% increase in commissions paid to third-party developers and IP holders, driven by higher licensed game revenue Cost of Revenue Composition (For the Six Months Ended June 30) | Cost Nature | 2024 (RMB Thousand) | 2023 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Distribution and Payment Channel Commissions | 69,168 | 70,589 | (2.0) | | Third-Party Game Developer and IP Holder Commissions | 38,173 | 11,892 | 221.0 | | Bandwidth and Server Hosting Fees | 8,953 | 10,287 | (13.0) | | Employee Benefit Expenses | 6,051 | 6,595 | (8.2) | | Others | 8,490 | 9,161 | (7.3) | | **Total** | **130,835** | **108,524** | **20.6** | [Gross Profit and Margin Analysis](index=14&type=section&id=Gross%20Profit%20and%20Margin%20Analysis) Gross profit decreased 6.0% to RMB 212 million, with gross margin falling from 68% to 62%, primarily due to the increased proportion of lower-margin licensed game revenue - Gross profit decreased from **RMB 225 million** to **RMB 212 million**, and gross margin declined from **68%** to **62%**[33](index=33&type=chunk) - The decline in gross margin is attributed to the increased proportion of licensed game revenue, which incurs higher commissions to third-party developers and IP holders, thereby lowering the overall gross margin[33](index=33&type=chunk) [Operating Expenses Analysis](index=14&type=section&id=Operating%20Expenses%20Analysis) Operating expenses increased across the board, with sales and marketing up 7.2% to RMB 132 million, R&D up 5.4% to RMB 47.1 million, and G&A up 29.4% to RMB 27.4 million Operating Expenses Overview (For the Six Months Ended June 30) | Expense Item | 2024 (RMB Million) | 2023 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Sales and Marketing Expenses | 131.9 | 123.1 | 7.2% | | Research and Development Expenses | 47.1 | 44.7 | 5.4% | | General and Administrative Expenses | 27.4 | 21.2 | 29.4% | [Other Financial Items Analysis](index=15&type=section&id=Other%20Financial%20Items%20Analysis) Fair value gains on investments surged 536.8% to RMB 42.1 million, while other income plummeted 91.8% due to reduced subsidies, and net other losses expanded to RMB 11.6 million from adverse currency movements - Investment gains measured at fair value increased from **RMB 6.6 million** to **RMB 42.1 million**, primarily due to higher returns from wealth management products[37](index=37&type=chunk) - Net other losses expanded from **RMB 0.1 million** to **RMB 11.6 million**, mainly due to exchange losses incurred by JPY-denominated subsidiaries as the USD appreciated against the JPY[39](index=39&type=chunk) [Income Tax Expense and Profit for the Period](index=16&type=section&id=Income%20Tax%20Expense%20and%20Profit%20for%20the%20Period) Profit for the period decreased 8.4% to RMB 38.2 million due to lower gross profit and higher expenses, while income tax expense significantly dropped 95.5% to RMB 0.8 million - Net profit for the period was **RMB 38.2 million**, an **8.4%** decrease from **RMB 41.7 million** in the prior year[41](index=41&type=chunk)[42](index=42&type=chunk) - Income tax expense significantly decreased by **95.5%** from **RMB 16.7 million** to **RMB 0.8 million**, primarily due to changes in profit structure and recognition of deferred tax assets[40](index=40&type=chunk) [Liquidity, Capital Resources, and Capital Structure](index=17&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Capital%20Structure) As of June 30, 2024, the Group maintained a robust financial position with RMB 422 million in cash, a 1013.9% current ratio, and a healthy 9.8% gearing ratio Key Capital Structure Indicators (As of June 30, 2024) | Indicator | Amount (RMB Million) | | :--- | :--- | | Cash and Cash Equivalents | 421.8 | | Borrowings | 20.0 | | Current Assets | 1,638.5 | | Current Liabilities | 161.6 | | Current Ratio | 1,013.9% | | Gearing Ratio | 9.8% | [Other Financial Information](index=17&type=section&id=Other%20Financial%20Information) The Group increased short-term investments to RMB 1.096 billion for capital efficiency, maintained low capital expenditure, managed foreign exchange risks, and employed 600 full-time staff - To enhance the efficiency of its own funds, the Group's short-term investments (measured at fair value) increased from **RMB 989 million** to **RMB 1.096 billion**[44](index=44&type=chunk) - The Group faces foreign exchange risks, including USD and JPY, which are managed through foreign currency forward contracts[47](index=47&type=chunk) - As of June 30, 2024, the Group had **600** full-time employees, with **17** located overseas[48](index=48&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board resolved not to recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year - The Board does not recommend the payment of an interim dividend for 2024[49](index=49&type=chunk) [Directors' and Major Shareholders' Interests](index=19&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) This section details the shareholding interests of directors and major shareholders as of June 30, 2024, including holdings by executive directors via trusts and key corporate shareholders like Keiskei Holding and Hong Kong Kunpan Major Shareholders' Interests Overview (As of June 30, 2024) | Shareholder Name | Approximate Percentage of Shareholding (%) | | :--- | :--- | | Keiskei Holding Ltd. (Mr. Yang Xu) | 29.81% | | Hong Kong Kunpan (G-bits) | 18.55% | | Rapid Yacht Limited (Mr. Ye Jiting) | 7.26% | | Intelligence QC Ltd. (Mr. Huang Zhiqiang) | 5.40% | | Alibaba Kukar (Alibaba) | 5.34% | [Use of Net Proceeds from Listing](index=23&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The company utilized HKD 865 million of its HKD 926 million listing proceeds by June 30, 2024, with the remaining HKD 61.3 million allocated for product expansion and China market distribution, expected to be fully used by June 2025 Use of Listing Proceeds and Utilization (As of June 30, 2024) | Use of Proceeds | Allocated Amount (HKD Million) | Cumulative Utilized (HKD Million) | Unutilized Amount (HKD Million) | Expected Full Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Expand Game Portfolio and R&D | 324.0 | 296.7 | 27.3 | Before June 2025 | | Expand Overseas Markets | 231.4 | 231.4 | 0 | N/A | | Strengthen China Market Distribution and Operations | 138.9 | 111.9 | 27.0 | Before June 2025 | | Strategic Investments and Acquisitions | 138.9 | 131.9 | 7.0 | Before December 2024 | | Working Capital and General Corporate Purposes | 92.6 | 92.6 | 0 | N/A | | **Total** | **925.8** | **864.5** | **61.3** | | [Corporate Governance and Compliance](index=24&type=section&id=Corporate%20Governance%20and%20Compliance) The company complied with all Corporate Governance Code provisions, directors adhered to securities trading standards, and the Audit Committee reviewed interim financial information with management and the auditor - The Board believes the company complied with all code provisions of the Corporate Governance Code during the reporting period[65](index=65&type=chunk) - The Audit Committee, chaired by Mr. Yuan Yuan, comprises three independent non-executive directors and has reviewed the interim financial information[67](index=67&type=chunk) [Interim Financial Statements](index=25&type=section&id=Interim%20Financial%20Statements) [Review Report on Interim Financial Information](index=25&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) PricewaterhouseCoopers reviewed the interim financial information under ISRE 2410, concluding no material issues regarding its preparation in accordance with IAS 34 - Auditor PricewaterhouseCoopers issued a review conclusion, finding no material issues in the interim financial information[72](index=72&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement details revenue, costs, expenses, profit, and other comprehensive income for H1 2024, reporting RMB 343 million revenue, RMB 212 million gross profit, and RMB 38.2 million profit [Condensed Consolidated Statement of Financial Position](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement outlines the financial position as of June 30, 2024, with total assets at RMB 1.986 billion, total liabilities at RMB 194 million, and total equity at RMB 1.792 billion [Condensed Consolidated Statement of Changes in Equity](index=30&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement illustrates changes in equity components, including share capital, share premium, and reserves, reflecting the impact of period profit and currency translation differences on shareholders' equity [Condensed Consolidated Statement of Cash Flows](index=32&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement summarizes cash flows, showing net outflows of RMB 23.9 million from operations, RMB 84.1 million from investing, and RMB 5.2 million from financing, leading to a net decrease of RMB 113 million in cash and equivalents [Notes to the Interim Financial Information](index=33&type=section&id=Notes%20to%20the%20Interim%20Financial%20Information) [Note 6: Segment Information and Revenue](index=43&type=section&id=Note%206%3A%20Segment%20Information%20and%20Revenue) The Group operates as a single mobile game segment; Mainland China remains the main revenue source at RMB 199.9 million, while overseas revenue significantly grew to RMB 142.7 million, increasing its proportion of total revenue Revenue Breakdown by Geographical Region (For the Six Months Ended June 30) | Region | 2024 (RMB Thousand) | 2023 (RMB Thousand) | | :--- | :--- | :--- | | Mainland China | 199,907 | 269,043 | | Other Regions | 142,715 | 64,894 | | **Total** | **342,622** | **333,937** | [Note 12: Income Tax](index=49&type=section&id=Note%2012%3A%20Income%20Tax) Total income tax expense was RMB 0.754 million, significantly lower than prior year, influenced by varied jurisdictional tax rates, preferential rates, non-deductible expenses, and R&D super deductions - Some subsidiaries are recognized as 'software enterprises,' enjoying a 'two-year exemption and three-year half-rate' corporate income tax preferential policy[122](index=122&type=chunk) - The Group is entitled to claim a **200%** super deduction for R&D expenses, which positively impacts the effective tax rate[122](index=122&type=chunk) [Note 31: Related Party Transactions](index=76&type=section&id=Note%2031%3A%20Related%20Party%20Transactions) The Group transacts with related parties, including G-bits Group, paying RMB 1.495 million in marketing fees and receiving RMB 6.206 million in licensing revenue, while paying RMB 24.565 million in developer commissions to associated companies Major Related Party Transactions (For the Six Months Ended June 30, 2024) | Transaction Type | Related Party | Amount (RMB Thousand) | | :--- | :--- | :--- | | Game Licensing Revenue | G-bits Group | 6,206 | | Game Developer Commissions | Chengdu Xingqiwan Technology | 21,100 | | | Shenzhen Jishiwu Technology | 2,551 | | | Shenzhen Requ Network Technology | 914 | | Marketing and Promotion Expenses | Guangzhou Zhuodong Information Technology | 2,980 | | | G-bits Group | 1,495 | Period-End Balances with Related Parties (As of June 30, 2024) | Balance Type | Amount (RMB Thousand) | | :--- | :--- | | Trade Receivables from Related Parties | 7,489 | | Trade Payables to Related Parties | 36,392 | | Prepayments to Related Parties | 35,662 |

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之內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不對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. 青瓷游戲有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6633） 截 至 2024 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2024年6月30日止六個月的未經審核 綜合財務業績，連同截至2023年6月30日止六個月的比較數字，呈列如下。 本集團截至2024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 | --- | --- | --- | --- | |--------------------------|-----------------|-- ...