Core Insights - In October 2025, the National Press and Publication Administration approved a total of 159 domestic online games [1] Group 1: Approved Games - Notable approved games include Tencent's "Ba Huang Qi Lu," 37 Interactive Entertainment's "Survival for 33 Days," Zulong Entertainment's "Cloud Dream Westward," and Friendship Time's "Firefly Expedition" [1]

Core Insights - In October 2025, the National Press and Publication Administration approved a total of 159 domestic online games [1] Company Highlights - Tencent's game "Ba Huang Qi Lu" was among the approved titles [1] - 37 Interactive Entertainment's game "Survival for 33 Days" received approval [1] - Zulong Entertainment's "Cloud Dream West Journey" was also approved [1] - Friendship Time's game "Firefly Expedition" gained approval [1]

Core Insights - The Chinese gaming industry is experiencing a high prosperity cycle, with 159 domestic games approved in October, indicating strong demand and supply dynamics [1][2] - The A-share gaming sector has shown significant growth, with the Shenwan secondary gaming index up approximately 66% year-to-date, ranking eighth among all Shenwan secondary industries [2] - The approval of new game titles, including major releases from Tencent and other listed companies, suggests ongoing innovation and market expansion [1][4][5] Domestic Game Approvals - In October, 159 domestic games received approval, with 73 categorized as mobile-casual and 70 as mobile games [1] - Notable titles include Tencent's "八荒奇旅," 37 Interactive's "生存33天," and others from companies like ST中青宝 and 祖龙娱乐 [1][4] Import Game Approvals - Seven new imported games received approval in October, including "蜡笔小新" from 游族网络 [2] - The total number of game approvals for the year has reached 1,441, maintaining a steady monthly issuance rate [2] Market Performance - The gaming sector has seen substantial stock price increases, with companies like 巨人网络 and 吉比特 experiencing over 210% and 110% growth, respectively [2] - The current valuation of the gaming sector remains attractive, prompting recommendations for increased investment [2] Future Growth Projections - Omdia forecasts that the total revenue from gaming subscriptions in the Asia-Pacific region will grow from $6.5 billion in 2025 to $9.4 billion by 2029, outpacing global averages [3] - The domestic self-developed online gaming market saw a 19% year-on-year growth in the first half of the year, indicating a robust recovery and innovation cycle [3] Company Performance Highlights - Tencent reported a revenue of 364.53 billion yuan in the first half of the year, with a 13.7% year-on-year increase, driven by its gaming and social services segment [4] - 祖龙娱乐 achieved a revenue of 634 million yuan in the first half of 2025, a 44.4% increase compared to the previous year, attributed to new game launches [4] - 友谊时光's revenue reached 623 million yuan, marking an 18.5% increase, with a significant turnaround in profitability [5] - 网易 reported a net income of 56.72 billion yuan, with gaming-related services showing a 13.7% year-on-year growth [6]

截至月份: 2025年9月30日 狀態: 新提交 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 致：香港交易及結算所有限公司 公司名稱: 友誼時光股份有限公司 (於開曼群島註冊成立之有限公司) 呈交日期: 2025年10月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06820 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | USD | | 0.00001 USD | | 50,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 5,000,000,000 | USD | | 0.00001 USD | | 50,000 | 本月底法定/ ...

Core Viewpoint - The company, Friendship Time (06820), has announced that the trustee has cumulatively purchased shares exceeding 0.03% of the total share capital under the share award plan during the third quarter of 2025, indicating confidence in the company's business outlook and prospects [1] Group 1 - The trustee has cumulatively purchased approximately 3.7% of the company's total share capital from August 28, 2023, to September 30, 2025, under the share award plan [1] - The board believes that the share purchases under the share award plan demonstrate confidence in the company's business outlook and can attract talent while aligning the interests of key employees with those of the company [1] - This strategy is part of the company's long-term sustainable growth initiatives [1]

Core Viewpoint - The company, Friendship Time (06820.HK), announced that the trustee has cumulatively purchased shares exceeding 0.03% of the total share capital under the share award plan by the third quarter of 2025, indicating confidence in the business outlook and future prospects [1] Summary by Relevant Sections - **Share Purchase Details** - From August 28, 2023, to September 30, 2025, the trustee is expected to purchase approximately 3.7% of the company's total share capital under the share award plan [1] - **Strategic Implications** - The board believes that the share purchases under the award plan demonstrate the company's confidence in its business outlook and serve as a strategy to attract talent, aligning the interests of key employees with those of the company, thereby promoting long-term sustainable growth [1]

Core Viewpoint - The company, Friendship Time (06820), has announced that the trustee has cumulatively purchased shares exceeding 0.03% of the total share capital under the share award plan by the third quarter of 2025, indicating confidence in the company's business outlook and future prospects [1] Summary by Relevant Sections - **Share Purchase Details** - From August 28, 2023, to September 30, 2025, the trustee is expected to purchase approximately 3.7% of the company's total share capital under the share award plan [1] - **Board's Perspective** - The board believes that the share purchases under the share award plan demonstrate the company's confidence in its business outlook and can serve as a strategy to attract talent, aligning the interests of key employees with those of the company, thereby promoting long-term sustainable growth [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，概不對因本公告全部 或任何部份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。 FriendTimes Inc. （於開曼群島註冊成立的有限公司） 友 誼 時 光 股 份 有 限 公 司 （股份代號：6820） 自願性公告 就股份獎勵計劃購買股份 本公告為友誼時光股份有限公司（「本公司」）刊發之自願性公告，讓公眾人士知悉 本公司最新資料。 茲 提 述本 公 司 日期 為 2020 年 9 月 14 日 的 公 告（「該 公告」）， 內 容 有關 採 納 股 份獎 勵 計劃（「股份獎勵計劃」）。除另有所述者外，本公告所用詞彙與該公告所界定者具 有相同涵義。 根據股份獎勵計劃及本公司與信託機構（「受託人」）訂立的信託安排，本公司可指 示受託人直接或間接於市場購買本公司股份（「股份」）。 承董事會命 友誼時光股份有限公司 主席兼執行董事 蔣孝黃 香港，二零二五年九月三十日 於本公告日期，本公司的執行董事為蔣孝黃先生、徐林先 ...

[Definitions](index=3&type=section&id=%E9%87%8B%20%E7%BE%A9) This chapter defines key terms across company operations, governance, finance, and legal aspects for clear report understanding - This section provides definitions of key terms used in the report, covering specialized terminology related to company operations, governance, finance, and legal aspects, such as **AI**, **Share Award Scheme**, and **Stock Exchange**, to ensure clear understanding of the report content[4](index=4&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) [Company Information](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Board and Committee Members](index=6&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%A7%94%E5%93%A1%E6%9C%83%E6%88%90%E5%93%A1) The Board of Directors includes executive and independent non-executive members, with specific individuals appointed to the Audit, Remuneration, and Nomination Committees - Executive Directors include Mr. Jiang Xiaohuang (Chairman of the Board and Chief Executive Officer), Mr. Xu Lin, and Mr. Sun Bo[7](index=7&type=chunk) - Independent Non-Executive Directors include Mr. Zhu Wei, Mr. Zhang Jinsong, and Ms. Tang Haiyan[7](index=7&type=chunk) - The Audit Committee Chairman is Mr. Zhu Wei, the Remuneration Committee Chairman is Mr. Zhang Jinsong, and the Nomination Committee Chairman is Mr. Jiang Xiaohuang[7](index=7&type=chunk) [Company Contact and Professional Advisors](index=6&type=section&id=%E5%85%AC%E5%8F%B8%E8%81%AF%E7%B5%A1%E5%8F%8A%E5%B0%88%E6%A5%AD%E9%A1%A7%E5%95%8F) The company's registered office is in the Cayman Islands, with principal operations in Suzhou and Hong Kong, and detailed contact information is provided - The Company's website is www.friendtimes.net, and its stock code is **6820**[7](index=7&type=chunk) - The auditor is KPMG, and principal bankers include China Construction Bank Suzhou Branch and The Hongkong and Shanghai Banking Corporation Limited[9](index=9&type=chunk) [Financial Highlights](index=8&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Performance Overview](index=8&type=section&id=%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A6%BD) For the six months ended June 30, 2025, revenue grew by **18.5%** to **RMB 623,463 thousand**, achieving a profit of **RMB 40,713 thousand** Performance Summary for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 623,463 | 526,072 | | Gross Profit | 459,113 | 360,287 | | Profit/(Loss) for the Period | 40,713 | (72,328) | [Assets, Liabilities, and Equity Overview](index=8&type=section&id=%E8%B3%87%E7%94%A2%E3%80%81%E8%B2%A0%E5%82%B5%E5%8F%8A%E6%AC%8A%E7%9B%8A%E6%A6%82%E8%A6%BD) As of June 30, 2025, total assets increased to **RMB 1,415,713 thousand**, liabilities decreased, and equity rose to **RMB 1,190,760 thousand** Assets, Liabilities, and Equity Summary | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Assets | 1,415,713 | 1,402,476 | | Total Liabilities | 224,953 | 252,400 | | Total Equity | 1,190,760 | 1,150,076 | [Management Discussion and Analysis](index=9&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Overview](index=9&type=section&id=%E6%A6%82%E8%A6%BD) The Group, a leading integrated R&D and operations mobile game developer, focuses on high-quality cultural products and global market expansion - The Group adheres to a content-first, quality-first approach, aiming to become a globally outstanding cultural and creative enterprise[13](index=13&type=chunk) - Since its establishment in 2010, the Group has successfully launched several core products, including *Legend of Concubine*, *A Story of Floating Life*, and *Fleeting Life: Linglong*[13](index=13&type=chunk) - The Group actively explores general user, mini-game, and overseas markets, committed to disseminating traditional Chinese culture globally[13](index=13&type=chunk) [Performance Review](index=9&type=section&id=%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7) For the six months ended June 30, 2025, total revenue reached **RMB 623.5 million** (up **18.5%**), with profit of **RMB 40.7 million** (up **156.3%**), driven by new games and improved margins - Total revenue was approximately **RMB 623.5 million**, an increase of approximately **18.5%** compared to the same period in 2024[14](index=14&type=chunk) - Profit for the period was approximately **RMB 40.7 million**, turning a loss into profit, an increase of approximately **156.3%** compared to the same period in 2024[14](index=14&type=chunk) - Profit growth was primarily attributable to increased revenue from new games (especially mini-games *Du Lala's Promotion* and *Ling Yun Nuo*), a higher proportion of high-margin channel income leading to a gross margin increase of approximately **5 percentage points**, and a decrease in both R&D expense ratio and selling expense ratio[14](index=14&type=chunk) [Business Review](index=10&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group pursues 'premiumization, diversification, globalization' and 'AI+Gaming' strategies, enhancing player experience and achieving strong market performance through long-term operations [Product Strategy and Cultural Dissemination](index=10&type=section&id=%E7%94%A2%E5%93%81%E7%AD%96%E7%95%A5%E8%88%87%E6%96%87%E5%8C%96%E5%82%B3%E6%92%AD) The Group's product strategy emphasizes premiumization, diversification, and globalization, integrating oriental aesthetics to disseminate traditional Chinese culture globally - The Group adheres to a 'premiumization, diversification, globalization' strategy, expanding into multiple product categories such as ancient-style female protagonists, Xianxia, classic Wuxia, new national style, modern workplace, casual competitive, and mini-games[15](index=15&type=chunk) - Upholding the philosophy of 'digital empowerment of culture, innovation-driven heritage', the Group deeply embeds the essence of oriental aesthetics in games and disseminates excellent traditional Chinese culture through cross-industry integration and global deployment[15](index=15&type=chunk) [AI+Gaming Strategy](index=10&type=section&id=AI%2B%E9%81%8A%E6%88%B2%E6%88%B0%E7%95%A5) The 'AI+Gaming' strategy drives industrial upgrades and player experience innovation through a full-chain AI application system and platform collaborations - Adopting 'AI+Gaming' as a strategic direction, driving game industrialization upgrades and player experience innovation through technological advancements[16](index=16&type=chunk) - Building a full-chain AI application system covering R&D, publishing, operations, and enterprise management, focusing on four key areas: platform tool development, data asset accumulation, intelligent agent innovation, and AI-native gameplay experimentation[16](index=16&type=chunk) - Several of its games have completed native application development for Huawei HarmonyOS, exploring more technical application scenarios for cooperation[16](index=16&type=chunk) [Long-term Operation Strategy](index=10&type=section&id=%E9%95%B7%E7%B7%9A%E9%81%8B%E7%87%9F%E7%AD%96%E7%95%A5) The long-term operation strategy focuses on extending product lifecycles through frequent updates, activities, and localized approaches for global market success - Adhering to a long-term operation strategy, extending product lifecycles through frequent version iterations, content updates, operational activities, and IP collaborations[16](index=16&type=chunk) - Implementing differentiated and localized game content and promotional materials tailored to the characteristics of overseas users in different regions[16](index=16&type=chunk) - Products launched years ago, such as *Legend of Concubine*, *A Story of Floating Life*, and *Ling Yun Nuo*, maintain strong revenue performance[16](index=16&type=chunk) [Baochao Mengchu](index=11&type=section&id=%E3%80%8A%E6%9A%B4%E5%91%B5%E8%90%8C%E5%BB%9A%E3%80%8B) *Baochao Mengchu*, a multiplayer kitchen party mobile game, launched on May 28, 2025, quickly topped charts and expanded content through collaborations - *Baochao Mengchu*, a multiplayer cooperative real-time competitive kitchen party mobile game, officially launched on May 28, 2025[18](index=18&type=chunk) - After its launch, the game quickly topped charts on various platforms including Apple App Store, Huawei, Xiaomi, VIVO, and Tap Tap[18](index=18&type=chunk) - Cross-industry collaborations with over **30** food, snack, and beverage brands, along with multiple seasonal updates, enriched game content and gameplay[18](index=18&type=chunk)[19](index=19&type=chunk) [Du Lala's Promotion](index=12&type=section&id=%E3%80%8A%E6%9D%9C%E6%8B%89%E6%8B%89%E5%8D%87%E8%81%8C%E8%A8%98%E3%80%8B) *Du Lala's Promotion* mini-game achieved strong performance in China and Korea, reaching top charts and engaging in cross-game collaborations - The female-oriented workplace mobile game *Du Lala's Promotion*, integrating gameplay such as promotion, dress-up, and casual elements, saw its mini-game version perform exceptionally well, reaching the top **50** on WeChat Mini-Game best-selling list and top **30** on Douyin Mini-Game popularity list[21](index=21&type=chunk) - In overseas markets, it successfully attracted a large number of Korean players, reaching the top **30** on the Korean iOS game best-selling list[21](index=21&type=chunk) - On June 11, 2025, a collaboration event with *Legend of Concubine* was launched, unlocking exclusive gameplay, skins, and items[21](index=21&type=chunk) [Fleeting Life: Linglong](index=12&type=section&id=%E3%80%8A%E6%B5%AE%E7%94%9F%E6%86%B6%E7%8E%B2%E7%93%9A%E3%80%8B) *Fleeting Life: Linglong*, launched January 2, 2024, is a key cultural export project maintaining stable revenue through frequent updates and global presence - The ancient-style sweet romance detective mobile game *Fleeting Life: Linglong*, launched on January 2, 2024, is the Group's flagship female-oriented ancient-style product[22](index=22&type=chunk) - It has been launched in multiple regions including Hong Kong, Macau, Taiwan, South Korea, Japan, North America, and Southeast Asia, and was selected as a key national cultural export project[22](index=22&type=chunk) - Through high-frequency version updates at least **twice a month** and long-term user acquisition campaigns, the product's revenue remains stable[22](index=22&type=chunk) [Other Mini-Games](index=12&type=section&id=%E5%85%B6%E4%BB%96%E5%B0%8F%E9%81%8A%E6%88%B2) Mini-games, offering convenient and lightweight experiences, help the Group attract new users, with *Ling Yun Nuo* and *Legend of Concubine* showing strong performance - The mini-game segment, with its convenient access, fragmented gameplay, and lightweight experience, helps the Group tap into new user demographics[23](index=23&type=chunk) - Multiple mini-game products were launched during the reporting period, with *Ling Yun Nuo* and *Legend of Concubine* performing exceptionally well[23](index=23&type=chunk) [Shareholder Returns](index=12&type=section&id=%E8%82%A1%E6%9D%B1%E5%9B%9E%E9%A5%8B) The Group has distributed over **RMB 750 million** in cash dividends, increased shareholdings via a share award scheme, and the CEO pledged no share reduction for **12 months** - The cumulative total cash dividends distributed to shareholders exceeded **RMB 750 million**, significantly surpassing the net proceeds from listing of **RMB 434 million**[24](index=24&type=chunk) - Through the trustee's increased shareholding under the Share Award Scheme, the cumulative total accounts for approximately **3.7%** of the Company's total issued share capital[24](index=24&type=chunk) - Mr. Jiang Xiaohuang, Executive Director, Chairman of the Board, Chief Executive Officer, and controlling shareholder, pledged not to sell any Company shares directly or indirectly held by him through the open market of the Stock Exchange for the next **12 months** from July 17, 2025[25](index=25&type=chunk) [Outlook](index=13&type=section&id=%E5%B1%95%E6%9C%9B) The Group plans to deepen integrated R&D and operations, accelerate AI adoption, expand globally with a 'regional deep cultivation + category breakthrough' strategy, and build a premium game matrix - Reserved games, including *Code: Lover*, *Code: Flower*, *Code: Relic*, and *Code: MX*, are currently under R&D and testing[26](index=26&type=chunk) - In the future, the Group will continuously deepen its integrated R&D and operations, strengthening core technological R&D capabilities and refined operational systems[26](index=26&type=chunk) - Accelerating the implementation of AI technology applications and innovative experiments, driving full-scenario process innovation, and firmly pursuing a global development path to create a matrix of premium games with both cultural characteristics and global aesthetic appeal[26](index=26&type=chunk) [Social Responsibility](index=13&type=section&id=%E7%A4%BE%E6%9C%83%E8%B2%AC%E4%BB%BB) The Group actively integrates ESG into its management, engages in philanthropy, and strictly adheres to national policies for minor protection, including anti-addiction systems [Environmental, Social, and Governance](index=13&type=section&id=%E7%92%B0%E5%A2%83%E3%80%81%E7%A4%BE%E6%9C%83%E5%8F%8A%E7%AE%A1%E6%B2%BB) The Group integrates ESG into management, participates in various charitable activities, and establishes robust network and data security systems - The Group actively fulfills its corporate social responsibility, integrating Environmental, Social, and Governance issues into its entire corporate management framework and conducting charitable activities[27](index=27&type=chunk) - Long-term commitment to social responsibility in various areas such as educational assistance, animal rescue, red education, environmental protection, and epidemic prevention and control, and supported the 'Pomegranate Seed Project' charity donation event for Sanhe Primary School in Ergun City, Inner Mongolia[27](index=27&type=chunk) - Establishing systems for network content security, data security, and account management, strictly complying with relevant laws and regulations in all operating locations worldwide to ensure data security[27](index=27&type=chunk) [Minor Protection](index=13&type=section&id=%E6%9C%AA%E6%88%90%E5%B9%B4%E4%BF%9D%E8%AD%B7) The Group strictly adheres to national policies for minor protection, implementing real-name authentication, anti-addiction systems, and parental supervision, with strict game time limits - Strictly adhering to relevant national policies, all games are fully integrated with real-name authentication, anti-addiction systems, and age-appropriate game reminders[28](index=28&type=chunk) - Implementing regulations restricting low-age consumption, promoting parental supervision projects, and dedicated complaint channels for minors[28](index=28&type=chunk) - Strictly enforcing the National Press and Publication Administration's new anti-addiction restrictions for minors, providing only **1 hour** of online game service to minors between 8 PM and 9 PM on Fridays, Saturdays, Sundays, and statutory holidays[28](index=28&type=chunk) [Financial Review](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group achieved significant revenue growth and improved gross margin, turning a loss into profit, driven by mini-game performance and cost control [Revenue](index=14&type=section&id=%E6%94%B6%E7%9B%8A) For the six months ended June 30, 2025, revenue grew by **18.5%** to **RMB 623.5 million**, primarily driven by mini-game performance - For the six months ended June 30, 2025, the Group's revenue was approximately **RMB 623.5 million**, an increase of approximately **RMB 97.4 million** or **18.5%** compared to the same period in 2024[29](index=29&type=chunk) - Revenue growth was primarily driven by the outstanding performance of mini-games such as *Du Lala's Promotion* and *Ling Yun Nuo*[29](index=29&type=chunk) [Game Revenue by Activity](index=14&type=section&id=%E6%8C%89%E6%B4%BB%E5%8B%95%E5%8A%83%E5%88%86%E9%81%8A%E6%88%B2%E6%94%B6%E7%9B%8A) Game revenue, primarily from self-developed game publishing, constitutes **99.98%** of total revenue, indicating high core business concentration Revenue Breakdown by Activity | | 2025 (RMB thousands) | Percentage | 2024 (RMB thousands) | Percentage | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue from the Group's publishing of self-developed games | 623,309 | 99.98% | 525,607 | 99.91% | 18.6% | | Revenue from publishing self-developed games through intellectual property licensing arrangements and other | 154 | 0.02% | 465 | 0.09% | –66.8% | | Total Revenue | 623,463 | 100.00% | 526,072 | 100.00% | 18.5% | [Game Revenue by Geographical Market](index=14&type=section&id=%E6%8C%89%E5%9C%B0%E5%8D%80%E5%B8%82%E5%A0%B4%E5%8A%83%E5%88%86%E9%81%8A%E6%88%B2%E6%94%B6%E7%9B%8A) Domestic market game revenue increased to **80.1%** (up **26.0%**), while overseas revenue slightly declined, making the domestic market the primary growth driver Game Revenue Breakdown by Geographical Market | | 2025 (RMB thousands) | Percentage | 2024 (RMB thousands) | Percentage | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Market | 499,181 | 80.1% | 396,209 | 75.4% | 26.0% | | Overseas Market | 124,128 | 19.9% | 129,398 | 24.6% | -4.1% | | Total Game Revenue | 623,309 | 100.0% | 525,607 | 100.0% | 18.6% | [Cost of Sales](index=15&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales decreased by **0.9%** to **RMB 164.4 million**, primarily due to lower revenue sharing cost rates from mini-games - Cost of sales decreased by approximately **0.9%** from approximately **RMB 165.8 million** in the same period of 2024 to approximately **RMB 164.4 million** in the same period of 2025[34](index=34&type=chunk) - Primarily due to a decrease in revenue sharing cost rates after mini-game launches[34](index=34&type=chunk) [Gross Profit and Gross Margin](index=15&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased by **27.4%** to **RMB 459.1 million**, with gross margin rising to **73.6%**, driven by higher-margin channel income - Gross profit increased by approximately **27.4%** from approximately **RMB 360.3 million** in the same period of 2024 to approximately **RMB 459.1 million** in the same period of 2025[35](index=35&type=chunk) - Gross margin increased from approximately **68.5%** in the same period of 2024 to approximately **73.6%** in the same period of 2025, primarily benefiting from an increased proportion of high-margin channel income[35](index=35&type=chunk) [Selling and Marketing Expenses](index=15&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%87%9F%E9%8Š%B7%E9%96%8B%E6%94%AF) Selling and marketing expenses increased by **1.7%** to **RMB 292.1 million**, indicating sustained investment in market promotion - Selling and marketing expenses were approximately **RMB 292.1 million**, an increase of approximately **1.7%** compared to the same period in 2024[36](index=36&type=chunk) [Research and Development Expenses](index=15&type=section&id=%E7%A0%94%E7%99%BC%E8%B2%BB%E7%94%A8) R&D expenses decreased by **13.7%** to **RMB 131.8 million**, mainly due to reduced personnel and audio-visual animation costs - Research and development expenses were approximately **RMB 131.8 million**, a decrease of approximately **13.7%** compared to the same period in 2024[37](index=37&type=chunk) - Primarily due to reduced expenses related to R&D personnel and audio-visual animation[37](index=37&type=chunk) [General and Administrative Expenses](index=15&type=section&id=%E4%B8%80%E8%88%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses decreased by **1.5%** to **RMB 17.8 million**, reflecting effective control over management costs - Administrative expenses were approximately **RMB 17.8 million**, a decrease of approximately **1.5%** compared to the same period in 2024[38](index=38&type=chunk) [Finance Costs](index=15&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs decreased by **RMB 0.3 million** to **RMB 1.4 million**, mainly due to lower financing cost rates - Finance costs were approximately **RMB 1.4 million**, a decrease of approximately **RMB 0.3 million** compared to the same period in 2024, primarily due to a reduction in financing cost rates[39](index=39&type=chunk) [Income Tax Expense](index=15&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense significantly increased to **RMB 9.9 million** from **RMB 3.071 million**, due to prior year under-provision and current period's positive profit - Income tax expense was approximately **RMB 9.9 million**, an increase of approximately **RMB 6.8 million** compared to the same period in 2024[40](index=40&type=chunk) - Primarily due to the positive profit for the reporting period, increasing current income tax expense[40](index=40&type=chunk) [Profit for the Period](index=15&type=section&id=%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) Profit for the period was **RMB 40.7 million**, a **156.3%** increase from a **RMB 72.3 million** loss in 2024, successfully turning profitable - Profit for the period was approximately **RMB 40.7 million**, an increase of approximately **RMB 113.0 million** or **156.3%** compared to a loss of approximately **RMB 72.3 million** in the same period of 2024, successfully turning a loss into profit[41](index=41&type=chunk) [Liquidity and Capital Resources](index=16&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E4%BE%86%E6%BA%90) As of June 30, 2025, the Group's net current liabilities/assets ratio was **0.18**, with **RMB 137.8 million** in cash, positive operating cash flow, and increased investing outflows [Cash Flow Summary for the Six Months Ended June 30](index=16&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E6%91%98%E8%A6%81) Operating cash flow turned positive, investing outflows increased, and financing outflows were for loan repayments, leading to a net decrease in cash and equivalents Cash Flow Summary for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Generated From/(Used In) Operating Activities | 32,855 | (116,276) | | Net Cash (Used In)/Generated From Investing Activities | (188,195) | 163,936 | | Net Cash (Used In)/Generated From Financing Activities | (40,621) | 8,660 | | Net Change in Cash and Cash Equivalents | (195,961) | 56,320 | | Cash and Cash Equivalents at End of Period | 137,846 | 452,704 | [Operating Activities](index=16&type=section&id=%E7%B6%93%E7%87%9F%E6%B4%BB%E5%8B%95) Net cash generated from operating activities was **RMB 32.9 million**, a significant improvement from a **RMB 116.3 million** net outflow in 2024 - For the six months ended June 30, 2025, net cash generated from operating activities was **RMB 32.9 million**, a significant improvement from a net outflow of **RMB 116.3 million** in the same period of 2024[45](index=45&type=chunk) [Investing Activities](index=16&type=section&id=%E6%8A%95%E8%B3%87%E6%B4%BB%E5%8B%95) Net cash used in investing activities was **RMB 188.2 million**, mainly for investments measured at fair value through profit or loss and fixed deposits - For the six months ended June 30, 2025, net cash used in investing activities was **RMB 188.2 million**[46](index=46&type=chunk) - Primarily included payments of **RMB 760.3 million** for the purchase of investments measured at fair value through profit or loss, and payments of **RMB 209.3 million** for the purchase of fixed deposit investments[46](index=46&type=chunk) [Financing Activities](index=16&type=section&id=%E8%9E%8D%E8%B3%87%E6%B4%BB%E5%8B%95) Net cash used in financing activities was **RMB 40.6 million**, primarily for repaying unsecured bank borrowings, partially offset by new borrowings - For the six months ended June 30, 2025, net cash used in financing activities was **RMB 40.6 million**[47](index=47&type=chunk) - Primarily included repayments of unsecured bank borrowings of **RMB 79.3 million**, and proceeds from unsecured bank borrowings of **RMB 38.9 million**[47](index=47&type=chunk) [Capital Expenditure](index=17&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure for the six months ended June 30, 2025, increased, primarily for equipment, intangible assets, and new right-of-use assets Capital Expenditure for the Six Months Ended June 30 | | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Equipment | 320 | 178 | | Intangible Assets | 1,253 | 1,526 | | Right-of-use Assets | 1,370 | – | [Gearing Ratio and Capital Structure](index=17&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) As of June 30, 2025, the gearing ratio improved to **9.3%**, bank loans decreased to **RMB 110.4 million**, and share capital remained stable - As of June 30, 2025, the gearing ratio was **9.3%**, a decrease from **13.0%** as of December 31, 2024[49](index=49&type=chunk) - The bank loan balance was **RMB 110.4 million** (December 31, 2024: **RMB 149.4 million**)[49](index=49&type=chunk) - The Company's share capital remained unchanged at **2,180,850,000 shares**[49](index=49&type=chunk) [Contingent Liabilities](index=17&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no unrecorded material contingent liabilities or guarantees - As of June 30, 2025, the Group had no unrecorded material contingent liabilities or any guarantees[50](index=50&type=chunk) [Employees and Remuneration Policy](index=17&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had **895** employees in China, with remuneration based on performance and market rates, and no major labor disputes - As of June 30, 2025, the Group had **895** employees (December 31, 2024: **887** employees), all based in China[51](index=51&type=chunk) - Remuneration policy is determined based on employee performance, work experience, and current market salary levels[51](index=51&type=chunk) - For the six months ended June 30, 2025, no significant labor disputes occurred[51](index=51&type=chunk) [Reorganization and Material Investments](index=17&type=section&id=%E9%87%8D%E7%B5%84%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) For the six months ended June 30, 2025, and up to the report date, the Group had no reorganization or material investments - For the six months ended June 30, 2025, the Group had no reorganization or material investments[52](index=52&type=chunk) [Financial Assets](index=18&type=section&id=%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group held structured deposits and limited partnership investments, with some exceeding **5%** of total assets, managed by robust policies Financial Assets Exceeding 5% of Total Assets as of June 30, 2025 | Product Type | Bank Name | Subscribed Principal (RMB millions) | Expected Return Rate | Fair Value (RMB millions) | Proportion of Total Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | Structured deposits | Shanghai Pudong Development Bank | 30 | 0.85%~2.2% | 30.13 | - | | Structured deposits | Shanghai Pudong Development Bank | 20 | 0.85%~2.2% | 20.06 | 6.37% | | Structured deposits | Shanghai Pudong Development Bank | 40 | 0.7%~2.05% | 40.05 | - | | Limited partnership investments | Suzhou Yongxin Ronghui Venture Capital Partnership | 30 | - | 34.5 | - | | Limited partnership investments | Suzhou Yongxin Kaituo Venture Capital Partnership | 30 | - | 32.6 | - | | Limited partnership investments | Suzhou Yongxin Rongchang Venture Capital Partnership | 5 | - | 20.5 | - | | Limited partnership investments | Suzhou Yongxin Rongyao Venture Capital Partnership | 5 | - | 4.9 | 7.24% | | Limited partnership investments | Suzhou Yongxin Rongke Venture Capital Partnership | 5 | - | 5.0 | - | | Limited partnership investments | Suzhou Yongxin Ronglun Equity Investment Partnership | 5 | - | 5.0 | - | - The Company has established standardized capital and investment management policies, regularly reviewing investment portfolios and policies to monitor and control potential risks related to investment activities[63](index=63&type=chunk) [Material Acquisitions and Disposals of Assets](index=20&type=section&id=%E8%B3%87%E7%94%A2%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) For the six months ended June 30, 2025, and up to the report date, the Group had no material acquisitions or disposals of assets - For the six months ended June 30, 2025, and up to the date of this report, there were no material acquisitions or disposals of assets[58](index=58&type=chunk) [Off-Balance Sheet Arrangements](index=20&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%80%B5%E8%A1%A8%E5%A4%96%E5%AE%89%E6%8E%92) The Group has no off-balance sheet arrangements, financial guarantees, or commitments to guarantee third-party payment obligations - The Group has no and does not intend to enter into any off-balance sheet arrangements[59](index=59&type=chunk) - The Group has not entered into any financial guarantees or other commitments to guarantee third-party payment obligations[59](index=59&type=chunk) [Pledge of the Group's Assets](index=20&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC) As of June 30, 2025, **RMB 60.0 million** of subsidiary borrowings were pledged by other subsidiaries' fixed deposits - As of June 30, 2025, some borrowings of the Group's subsidiaries were pledged by fixed deposits of other subsidiaries, with a pledged amount of **RMB 60.0 million**[60](index=60&type=chunk) [Foreign Exchange Risk](index=20&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) Most non-RMB transactions are in USD and HKD; management closely monitors foreign exchange risk, incurring no significant losses - Most of the Group's transactions other than RMB for the six months ended June 30, 2025, were denominated in USD and HKD[61](index=61&type=chunk) - The management team closely monitors foreign exchange risk, ensuring appropriate measures are implemented in a timely and effective manner, and has not incurred any significant foreign currency exchange losses in the past[61](index=61&type=chunk) [Events After Reporting Period](index=20&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant events occurred for the Group from June 30, 2025, up to the report date - From June 30, 2025, up to the date of this report, no significant events have occurred for the Group[62](index=62&type=chunk) [Other Information](index=21&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Compliance with Corporate Governance Code](index=21&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Company complies with the Corporate Governance Code, with the Chairman and CEO roles combined, which the Board believes ensures policy continuity and operational efficiency - The Company has complied with the code provisions set out in the Corporate Governance Code, except for code provision C.2.1 (roles of Chairman and Chief Executive Officer should be separate)[64](index=64&type=chunk) - Mr. Jiang Xiaohuang currently serves as both Chairman of the Board and Chief Executive Officer of the Company, an arrangement the Board believes helps maintain the Company's policy continuity, operational efficiency, and stability[65](index=65&type=chunk) - The Board believes that adequate checks and balances and appropriate safeguards are in place, and will continue to regularly monitor and review the current structure[65](index=65&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=21&type=section&id=%E9%81%B5%E5%AE%88%E8%91%A3%E4%BA%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) All Directors confirmed compliance with the Model Code for securities transactions, and the Company's employee trading rules for price-sensitive information also showed no breaches - Following specific enquiries made to all Directors, each Director confirmed compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[66](index=66&type=chunk) - The Company also established employee share dealing rules equivalent to the Model Code for employees who may possess unpublished price-sensitive information, with no breaches identified[66](index=66&type=chunk) [Interim Dividend](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[67](index=67&type=chunk) [Audit Committee](index=22&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, chaired by Mr. Zhu Wei, reviewed the interim financial statements, discussing accounting principles, risk management, internal controls, and financial reporting - Audit Committee members include Mr. Zhu Wei (Chairman), Mr. Zhang Jinsong, and Ms. Tang Haiyan, all of whom are independent non-executive directors[68](index=68&type=chunk) - The Committee reviewed and discussed the Group's unaudited consolidated interim financial statements and this interim report for the six months ended June 30, 2025, and met with the auditor[68](index=68&type=chunk) - The Audit Committee also reviewed the accounting principles and practices adopted by the Group, and discussed audit, risk management, internal control, and financial reporting matters[68](index=68&type=chunk) [Changes in Directors' Information](index=22&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E4%B9%8B%E8%AE%8A%E5%8B%95) Ms. Tang Haiyan ceased an independent directorship and joined the Nomination Committee from August 28, 2025, while Mr. Zhu Wei resigned from the Nomination Committee - Ms. Tang Haiyan ceased to be an independent director of Suzhou Weichuang Electric Technology Co., Ltd. and was appointed as a member of the Company's Nomination Committee, effective from August 28, 2025[72](index=72&type=chunk) - Mr. Zhu Wei ceased to be a member of the Nomination Committee, effective from August 28, 2025[72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, holding no treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[70](index=70&type=chunk) - As of June 30, 2025, the Company held no treasury shares[70](index=70&type=chunk) [Sufficiency of Public Float](index=22&type=section&id=%E5%85%85%E8%B6%B3%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) At all times since listing, at least **25%** of the Company's issued shares have been publicly held, meeting public float requirements - As of the date of this report, at all times since the listing date, at least **25%** of the Company's total issued shares have been held by the public[71](index=71&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=23&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, Mr. Jiang Xiaohuang held **57.10%** equity, Mr. Xu Lin **0.41%**, and Mr. Sun Bo **0.24%** equity and **0.02%** short position Directors' and Chief Executive's Interests in the Company's Shares or Underlying Shares as of June 30, 2025 | Name | Capacity/Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Jiang Xiaohuang | Interest in controlled corporation/Founder of discretionary trust | 1,245,176,157 (L) | 57.10% | | Mr. Xu Lin | Interest in controlled corporation | 7,141,974 (L) | 0.33% | | | Beneficial owner | 1,776,000 (L) | 0.08% | | Mr. Sun Bo | Interest in controlled corporation | 3,570,987 (L) | 0.16% | | | Beneficial owner | 1,650,000 (L) | 0.08% | | | Person entitled to call for underlying shares | 502,000 (S) | 0.02% | [Arrangements to Acquire Shares or Debentures by Directors](index=24&type=section&id=%E8%91%A3%E4%BA%8B%E6%94%B6%E8%B3%BC%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E6%AC%8A%E8%AD%89%E7%9A%84%E5%AE%89%E6%8E%92) For the six months ended June 30, 2025, no arrangements existed for Directors to acquire benefits through the acquisition of Company shares or debentures - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries had any arrangements enabling Directors to acquire benefits through the acquisition of shares or debentures of the Company or any other body corporate[75](index=75&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=25&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, Mr. Jiang Xiaohuang and Ms. Mao Yuyan each held **57.10%** equity, while TMF (Cayman) Ltd. and Gorgeous Sunshine Holding Limited each held **47.33%** Substantial Shareholders' and Other Persons' Interests in the Company's Shares or Underlying Shares as of June 30, 2025 | Name | Capacity/Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Jiang Xiaohuang | Interest in controlled corporation/Founder of discretionary trust | 1,245,176,157 (L) | 57.10% | | Ms. Mao Yuyan | Interest of spouse | 1,245,176,157 (L) | 57.10% | | TMF (Cayman) Ltd. | Trustee of trust | 1,032,274,116 (L) | 47.33% | | Gorgeous Sunshine Holding Limited | Interest in controlled corporation | 1,032,274,116 (L) | 47.33% | | Eternal Heart Holdings Limited | Beneficial owner | 941,774,116 (L) | 43.18% | | Ling Long Holdings Limited | Beneficial owner | 90,500,000 (L) | 4.15% | | Future Wisdom

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 友誼時光股份有限公司 (於開曼群島註冊成立之有限公司) | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06820 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 2,180,850,000 | | 0 | | 2,180,850,000 | | 增加 / 減少 (-) | | | | | | | | | 本月底結存 | | | 2,180,850,000 | | 0 | | 2,180,850,000 | 第 2 頁 共 10 頁 v 1.1.1 FF301 呈交日期: 2025年9月3日 I. 法定/註冊股本變動 | 1. ...