Financial Performance - The total revenue for the reporting period was approximately RMB 646.1 million, a decrease of about 22.4% compared to the previous year[5] - Revenue for the reporting period was approximately RMB 646.1 million, a decrease of about 22.4% compared to RMB 832.5 million in the same period last year[29] - The revenue from self-published games was approximately RMB 328.1 million, accounting for about 50.8% of total revenue[14] - The revenue from co-published games was approximately RMB 318.0 million, accounting for about 49.2% of total revenue[14] - The actual sales revenue of the Chinese gaming market reached RMB 302.96 billion, a year-on-year increase of 13.95%[3] - The mobile gaming market in China generated revenue of RMB 226.86 billion, a year-on-year increase of 17.5%[4] - The overseas revenue from self-developed games was approximately USD 16.37 billion, a year-on-year decrease of about 5.7%[4] User Metrics - The number of monthly active users (MAUs) reached 3.4 million, an increase of 32.3% year-on-year[7] - The total registered user base grew by 13.5% year-on-year, reaching 231.8 million users[7] Expenses and Profitability - Cost of revenue was approximately RMB 274.2 million, down about 9.4% or RMB 28.5 million year-on-year[15] - Gross profit was approximately RMB 371.9 million, with a gross margin decline from approximately 63.6% to 57.6% due to a smaller reduction in costs compared to revenue[16] - Sales and marketing expenses were approximately RMB 305.7 million, a decrease of about 25.2% or RMB 102.9 million year-on-year, accounting for about 47.3% of total revenue[17] - Administrative expenses were approximately RMB 51.6 million, down about 29.7% or RMB 21.9 million year-on-year, primarily due to reduced employee benefits and bad debt losses[18] - Research and development expenses were approximately RMB 70.9 million, a decrease of about 9.5% or RMB 7.5 million year-on-year[19] - Net profit for the period was approximately RMB 6.8 million, a significant improvement from a loss of RMB 139.4 million in the same period last year[24] Assets and Liabilities - Current assets as of December 31, 2023, were approximately RMB 825.1 million, including cash and cash equivalents of approximately RMB 534.5 million, a decrease of about 21.7% from RMB 682.8 million a year earlier[26] - Total assets decreased from RMB 1,056,259 thousand in 2022 to RMB 1,011,901 thousand in 2023, a decline of approximately 4.2%[30] - Non-current assets increased significantly from RMB 149,112 thousand in 2022 to RMB 186,821 thousand in 2023, an increase of about 25.4%[30] - Total liabilities decreased from RMB 278,449 thousand in 2022 to RMB 226,167 thousand in 2023, a reduction of about 18.8%[31] - Current liabilities decreased from RMB 259,369 thousand in 2022 to RMB 212,385 thousand in 2023, a decline of approximately 18.1%[31] - Trade receivables increased from RMB 67,238 thousand in 2022 to RMB 80,684 thousand in 2023, an increase of about 19.9%[30] Equity and Shareholder Information - Total equity increased slightly from RMB 777,810 thousand in 2022 to RMB 785,734 thousand in 2023, an increase of about 1.2%[30] - The company did not declare or recommend any dividends for the year ended December 31, 2023, consistent with 2022[52] - The weighted average number of ordinary shares for calculating basic and diluted loss per share remained unchanged at 1,899,956 thousand shares[53] Corporate Governance and Compliance - The board has confirmed compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[85] - The audit committee has been established in accordance with the listing rules and corporate governance code, consisting of three independent non-executive directors[89] - The company has engaged a professional firm to conduct an independent review of internal control procedures related to investment and loan processes[79] - The company is committed to improving its internal control systems based on the findings from the independent review[79] Future Plans and Investments - The company plans to continue expanding its game portfolio and strengthen procurement capabilities in 2024[10] - The company plans to fully utilize the remaining proceeds from its IPO by 2024, subject to market conditions[65] - The company has made investments in financial products totaling RMB 90 million, with expected annualized returns ranging from 2.80% to 3.50%[76] - The company has subscribed to a financial product with an investment of RMB 30,000,000, expecting an annualized return of 2.70% to 3.56% over a 90-day period[78] Employee and Operational Metrics - The total employee cost for the reporting period was approximately RMB 103.0 million, down from RMB 117.9 million in 2022, indicating a decrease of around 12.3%[69] - The number of employees decreased from 361 in 2022 to 301 in 2023, a reduction of approximately 16.6%[69] Miscellaneous - The company has no bank borrowings or other debt financing obligations as of December 31, 2023, with a debt-to-equity ratio of zero[26] - The company has no pledged assets or significant contingent liabilities as of December 31, 2023[73][74] - The company has not engaged in any significant acquisitions or disposals of subsidiaries or joint ventures during the reporting period[71] - The company will make further announcements regarding significant developments related to the recovery of outstanding amounts[83] - The annual performance announcement for the year 2023 will be published on the Hong Kong Stock Exchange website and the company's website[90] - The company expresses gratitude to all employees and business partners for their support during the reporting period, aiming for modernization and advancement in operations[92]

Financial Performance - The company recorded revenue of approximately RMB 312.6 million, a decrease of about 20.4% compared to the same period last year[15]. - The loss attributable to owners of the company was approximately RMB 21.0 million, down from RMB 63.7 million in the same period last year, indicating a reduction in losses[15]. - The decline in revenue was attributed to several factors, including the maturity of classic games, strategic adjustments in new product launches, and a lack of consumer spending recovery during the early stages of economic recovery[15]. - Revenue for the six months ended June 30, 2023, was RMB 312.6 million, a decrease of 20.4% compared to RMB 392.8 million for the same period in 2022[45]. - Gross profit for the same period was RMB 174.8 million, down from RMB 248.0 million, reflecting a gross margin decline[45]. - Operating loss for the six months ended June 30, 2023, was RMB 23.7 million, an improvement from a loss of RMB 73.3 million in the prior year[45]. - The company reported a total comprehensive income loss of RMB 11,686,000 for the six months ended June 30, 2023, compared to a loss of RMB 49,437,000 for the same period in 2022[51]. - The company reported a loss of RMB 21,047,000 for the six months ended June 30, 2023, compared to a loss of RMB 63,695,000 for the same period in 2022, indicating a significant improvement in performance[86]. Market Trends - The mobile gaming market in China generated actual sales revenue of RMB 1,067.05 billion in the first half of 2023, a decrease of 3.41% year-on-year[12]. - The gaming industry in China is experiencing intensified competition as the growth of the user base slows down due to the diminishing population dividend[12]. - The number of online game licenses issued by the National Press and Publication Administration reached 549 in the first half of 2023, surpassing the total of 512 for the entire year of 2022[13]. - The overseas market revenue for self-developed games from China was USD 8.206 billion in the first half of 2023, a decrease of 8.72% year-on-year[12]. - The user base for online games in China reached 668 million in the first half of 2023, reflecting a year-on-year growth of 0.35%[13]. Cost Management - The company faced challenges in advertising and promotional costs, which have been increasing annually, impacting marketing effectiveness[13]. - Sales and marketing expenses decreased by approximately 43.3% to RMB 144.7 million, accounting for about 46.3% of total revenue[29]. - Research and development expenses increased by approximately 13.3% to RMB 40.0 million, primarily due to increased employee benefits[32]. - The company is adjusting its strategies in response to rising advertising costs and uncertain promotional effectiveness[21]. Strategic Initiatives - The company plans to launch new games in the second half of 2023, focusing on optimizing product strategies and leveraging big data analytics[19]. - The company aims to enhance user engagement and extend the product lifecycle through continuous innovation and optimization[18]. - The company plans to continue investing in new technologies and market expansion strategies to enhance growth prospects[58]. - The company has established a new board committed to recovering the outstanding secured note, with legal actions initiated to expedite the settlement process[109]. Assets and Liabilities - As of June 30, 2023, the group's current assets amounted to approximately RMB 810.2 million, with cash and bank balances of about RMB 512.5 million[35]. - The current liabilities were approximately RMB 216.1 million, resulting in a current ratio of 3.8, up from 3.5 as of December 31, 2022[35]. - The group reported investments at fair value through profit or loss of approximately RMB 250.2 million as of June 30, 2023, with a significant increase in the value of certain financial products[37]. - Total liabilities decreased to RMB 232,116,000, a reduction of 16.6% from RMB 278,449,000[49]. - Cash and cash equivalents at the end of the period were RMB 512,474,000, down 25% from RMB 682,799,000[54]. Shareholder Information - As of June 30, 2023, Liu Jie holds 1,007,837,500 shares, representing approximately 52.18% of the company's equity[114]. - Major shareholders include LJ Technology Holding Limited with 52.18%, ZYB Holding Limited with 7.68%, and ACERY Holding LIMITED with 5.36% of the equity[118]. - The company has not declared or recommended any dividends for the six months ended June 30, 2023, consistent with the previous year[85]. Corporate Governance - The company has complied with all provisions of the corporate governance code, except for the separation of roles between the chairman and CEO, which are held by the same individual[129]. - The audit committee, consisting of independent non-executive directors, has reviewed the unaudited consolidated results for the reporting period and confirmed compliance with applicable accounting principles[132]. - The company has made significant changes in its board composition, including the resignation of several directors and the appointment of new independent non-executive directors[125]. - The company has adopted a standard code for securities trading by directors, ensuring compliance throughout the reporting period[128].

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。 截至二零二三年六月三十日止六個月的 中期業績公告 指尖悅動控股有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附 屬公司（統稱「本集團」或「我們」）截至二零二三年六月三十日止六個月期間（「報 告期間」）的未經審核簡明綜合中期業績。中期業績乃根據國際會計準則理事 會（「國際會計準則理事會」）頒佈的國際會計準則（「國際會計準則」）第34號「中 期財務報告」編製，並已獲本公司審核委員會審閱。 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 變動 人民幣百萬元 人民幣百萬元 百分比 （未經審核） （未經審核） 收益 312.6 392.8 (20.4%) ...

Financial Performance - In 2022, FingerTango Inc. reported total revenue of RMB 832.5 million, a decrease of 18.5% compared to RMB 1,021.1 million in 2021[13]. - The company experienced a net loss of RMB 139.4 million in 2022, compared to a net loss of RMB 517.4 million in 2021, indicating an improvement in financial performance[13]. - The adjusted net loss for 2022 was RMB 139.4 million, which is a significant reduction from the adjusted net loss of RMB 515.6 million in 2021[13]. - The company recorded total revenue of RMB 832.5 million, an increase of 35.8% year-on-year, driven by effective marketing of new games[23]. - The company's attributable loss was RMB 139.4 million, down from RMB 517.4 million in the previous year, mainly due to increased gross profit and reduced other losses[23]. - Total revenue for the reporting period was RMB 832.5 million, an increase of 35.8% compared to RMB 613.0 million in the previous year[34]. Market Environment - The total number of game licenses issued in China decreased by 32.2% in 2022, with only 512 licenses granted compared to 755 in 2021, reflecting a challenging regulatory environment[16]. - In 2022, the actual sales revenue of the Chinese gaming market was RMB 265.88 billion, a year-on-year decrease of 10.3% or RMB 30.63 billion[20]. - The overseas revenue from self-developed games was USD 17.35 billion, a year-on-year decline of 3.7%, primarily due to the global gaming market downturn and increased competition[21]. - The total number of game licenses issued in 2022 was 512, a decrease of 32.2% compared to 755 licenses in 2021, marking a continuous decline for five years[21]. User Engagement - Monthly active users (MAUs) reached 2.57 million, a 100.7% increase year-on-year, while monthly paying users (MPUs) reached 183.5 thousand, up 34.9%[27]. - The cumulative registered user base grew by 10.4% year-on-year, reaching 204.3 million as of December 31, 2022[27]. Strategic Initiatives - The company aims to strengthen its operational capabilities and market insights to navigate the evolving gaming landscape and pursue sustainable growth[16]. - FingerTango Inc. is committed to enhancing product quality and user experience to achieve better market performance in the future[17]. - The company has strategically adjusted its product release plans in response to market conditions and changing player preferences, focusing on game character upgrades and in-game events[17]. - The company plans to launch new games in 2023, focusing on optimizing product strategies and leveraging big data analytics for better market performance[29]. - The company aims to enhance game lifecycle management and user experience to improve monetization capabilities and ensure stable revenue generation[28]. - The company will continue to expand its game portfolio while focusing on SLG games and promoting the concept of "game quality" to develop higher-quality games[29]. Financial Position - Non-current assets as of December 31, 2022, were RMB 149.1 million, unchanged from 2021, while current assets decreased to RMB 907.1 million from RMB 973.8 million in 2021[14]. - Total equity decreased to RMB 777.8 million in 2022 from RMB 894.3 million in 2021, indicating a decline in the company's financial position[14]. - As of December 31, 2022, the company's current assets were RMB 907.1 million, including cash and cash equivalents of RMB 682.8 million, a 12.3% increase from RMB 608.0 million the previous year[47]. - The company had no bank borrowings or other debt financing obligations, resulting in a debt-to-equity ratio of zero[48]. Expenses and Profitability - Cost of revenue increased by 20.0% to RMB 302.7 million, up RMB 50.4 million from the previous year[35]. - Gross profit was RMB 529.8 million, with a gross margin increase from 58.8% to 63.6%[36]. - Sales and marketing expenses surged by 119.2% to RMB 408.6 million, accounting for 49.1% of total revenue[37]. - Administrative expenses decreased by 30.5% to RMB 73.5 million, primarily due to reduced bad debt losses[39]. - Research and development expenses rose by 2.6% to RMB 78.4 million, mainly due to increased employee costs[40]. - Other losses decreased significantly to RMB 106.0 million from RMB 524.2 million in the previous year[41]. Corporate Governance - The board of directors will continue to review and monitor the company's conduct to maintain a high standard of corporate governance[182]. - The company has adopted the corporate governance code as set out in Appendix 14 of the Listing Rules to regulate its corporate governance practices[178]. - The company has complied with the relevant provisions of the corporate governance code during the reporting period, except for a deviation from provision C.2.1[181]. - The company has purchased appropriate directors' liability insurance for its directors during the review year[176]. - The board consists of experienced members, including Liu Jie as Chairman and CEO, and Zhu Yanbin as COO, both of whom have extensive experience in the mobile internet industry[190][194]. Legal and Compliance - The company is involved in a legal dispute claiming HKD 250 million related to a subscription agreement from July 2018[115]. - The company has taken legal actions to recover overdue debts from certain borrowers, which may impact the audit qualifications related to receivables[59]. - The company’s management believes that the audit qualifications will be removed once sufficient evidence regarding the financial condition of the borrowers is obtained[59]. - The auditor issued an unqualified opinion regarding the group's continuing connected transactions as disclosed under the Hong Kong Listing Rules[173]. Investments and Financial Products - The company has made several investments in financial products, including a RMB 45 million investment with an expected annualized return of 3.76% to 3.96%[89]. - The company subscribed to various financial products totaling RMB 210,000,000, with expected annualized returns ranging from 2.60% to 4.00%[1]. - The expected annualized return for the "Wealth Class 3" financial product is 3.00% for a 30-day investment period[1]. - The company has a total of six financial product subscriptions, with varying investment periods and expected returns[1]. Employee and Shareholder Information - The company had a total of 361 employees as of December 31, 2022, an increase from 334 employees the previous year[139]. - The company provides competitive compensation and benefits to employees, with regular reviews based on individual performance[139]. - The company has adopted a dividend policy that allows for the declaration and distribution of dividends, subject to the group recording post-tax profits[142]. - The company’s major shareholders include LJ Technology Holding Limited, holding 1,007,837,500 shares (52.18%), and ZYB Holding Limited, holding 148,488,000 shares (7.69%)[128].

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。 截至二零二二年十二月三十一日止年度的 年度業績公告 指尖悅動控股有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附 屬公司（統稱「本集團」或「我們」）截至二零二二年十二月三十一日止年度（「報 告期間」）的經審核綜合業績（「年度業績」）。年度業績已根據國際財務報告準 則（「國際財務報告準則」）編製及由本公司獨立核數師中匯安達會計師事務所 有限公司（「中匯安達」）審計，並經本公司審核委員會及本公司管理層審閱及 批准。 管理層分析與討論 市場概覽 二零二二年，受疫情等多種因素影響，中國遊戲產業遇到多重困難，生產、消 費和投融資等各方面明顯受壓。中國遊戲市場實際銷售收益及用戶規模等同 比均有下降，整體規模縮減。二零二二年，中國遊戲市場實際銷售收入為人民 ...

Financial Performance - In the first half of 2022, FingerTango Inc. recorded total revenue of approximately RMB 392.8 million, representing a year-on-year increase of about 39.3%[21] - The company reported a loss attributable to owners of RMB 63.7 million, compared to a profit of RMB 45.0 million in the same period last year[21] - Revenue for the six months ended June 30, 2022, was RMB 392.8 million, an increase from RMB 282.0 million in the same period last year, while gross profit rose to RMB 248.0 million from RMB 163.5 million[59] - The group reported a net loss of RMB 63,695,000 for the six months ended June 30, 2022, compared to a profit of RMB 45,015,000 in the same period of 2021[140] - The company incurred a total comprehensive loss of RMB 49,437 thousand for the six months ended June 30, 2022, compared to a total comprehensive income of RMB 36,709 thousand in the same period last year[68] Revenue Sources - The revenue from new games significantly increased, accounting for over 50% of total revenue during the reporting period[21] - Revenue from game developers accounted for over 10% of total revenue, with Developer A contributing 49.8%, Developer B 21.1%, Developer C 10.8%, and Developer D 10.7%[120] - The overseas market revenue from self-developed games grew by 6.2% year-on-year, reaching USD 8.99 billion[18] User Metrics - Monthly active users (MAUs) increased by 173.4% year-on-year to 2,433.0 thousand, while monthly paying users (MPUs) rose by 147.4% to 204.3 thousand[25] - The total number of registered users as of June 30, 2022, grew by 9.1% year-on-year to 194.2 million[25] Expenses and Costs - Sales and marketing expenses surged by approximately 342.0% to RMB 255.1 million, accounting for about 64.9% of total revenue[41] - Research and development expenses decreased by approximately 8.1% to RMB 35.3 million, primarily due to reduced employee benefits[43] - The company reported a tax credit of approximately RMB 5.8 million for the reporting period, compared to a tax expense of RMB 9.7 million in the previous year, due to increased revenue leading to higher contract liabilities[48] Assets and Liabilities - The company's current assets as of June 30, 2022, were approximately RMB 995.5 million, with cash and cash equivalents of about RMB 600.8 million, resulting in a current ratio of 2.8, down from 3.6 as of December 31, 2021[48] - Current liabilities rose to RMB 356,663 thousand, up from RMB 268,866 thousand, representing a significant increase of about 32.5%[65] - Total equity decreased to RMB 844,862 thousand as of June 30, 2022, down from RMB 894,299 thousand, a decline of approximately 5.5%[68] Game Development and Strategy - The company is focusing on optimizing new games based on player preferences to enhance market performance post-launch[22] - The company plans to launch new games in the second half of 2022, focusing on optimizing product strategies and leveraging big data analytics[27] - The company will continue to expand its game portfolio while focusing on high-quality game development[27] Market Conditions - The Chinese gaming market's actual sales revenue was RMB 147.79 billion in the first half of 2022, a year-on-year decline of 1.8%[18] - The mobile gaming market in China saw actual sales revenue of RMB 110.48 billion, down 3.7% year-on-year[18] - The number of game licenses issued by the National Press and Publication Administration dropped to 105 in the first half of 2022, a decrease of 82.0% compared to 582 licenses in the same period of 2021[19] Shareholder Information - Mr. Liu Jie holds 1,007,837,500 shares, representing a 52.18% ownership interest in the company[200] - The weighted average number of ordinary shares used for calculating basic loss per share was 1,899,956,000 for the six months ended June 30, 2022, compared to 1,896,103,000 in 2021[144] IPO and Proceeds Utilization - The company raised approximately HKD 967.1 million in net proceeds during its IPO on July 12, 2018[195] - As of June 30, 2022, the company has utilized HKD 578.8 million of the net proceeds, with HKD 498.7 million remaining[195] - 35% of the net proceeds, amounting to HKD 338.5 million, is allocated for developing gaming capabilities and acquiring quality game content[195] - 25% of the net proceeds, totaling HKD 241.8 million, is designated for establishing an internal game development team[195] - The expected timeline for utilizing the remaining net proceeds is before 2024, subject to market conditions[195]

Financial Performance - In 2021, FingerTango Inc. reported total revenue of RMB 613.0 million, a decrease of 18.1% compared to RMB 748.2 million in 2020[12] - The company's gross profit for 2021 was RMB 360.8 million, down 22.2% from RMB 464.0 million in the previous year[12] - The net loss for the year was RMB 517.4 million, compared to a profit of RMB 127.6 million in 2020, indicating a significant decline in performance[12] - The total equity of FingerTango Inc. at the end of 2021 was RMB 894.3 million, down from RMB 1,430.7 million in 2020[13] - The company recorded total revenue of RMB 613.0 million, a decline of approximately 18.1% year-on-year, primarily due to the maturity of classic games and a decrease in new game approvals[26] - The company reported a loss attributable to shareholders of RMB 517.4 million, compared to a profit of RMB 127.6 million in the same period last year, largely due to significant provisions for receivables[27] - The adjusted loss for the year ended December 31, 2021, was RMB 515.6 million, compared to an adjusted profit of RMB 135.8 million in 2020[52] Market Overview - The number of game users in China reached 666.0 million in 2021, with mobile game users accounting for 656.0 million, reflecting a growth of only 0.23% year-on-year[17] - The overseas market revenue for Chinese independently developed games grew by 16.6% to USD 18.01 billion, although this growth rate was significantly lower than in previous years[17] - Mobile games accounted for over 75% of the gaming market share in China, generating revenue of RMB 225.54 billion, which was a 7.6% increase year-on-year[16] - In 2021, the total revenue of the Chinese gaming market was approximately RMB 296.51 billion, representing a year-on-year growth of 6.4%[22] - The number of game licenses issued in 2021 was 755, a decrease of 46.3% compared to 1,405 licenses in 2020, marking a continuous decline for four years since 2018[23] Strategic Initiatives - The company plans to optimize its game business and explore innovative promotion channels in response to increasing advertising costs and changing market conditions[17] - The company is focusing on refined management and optimization of its gaming operations to adapt to the evolving regulatory environment in China[17] - The company plans to expand its existing game portfolio while focusing on the SLG game segment and broadening game categories[32] - The company aims to enhance user experience and monetization capabilities through continuous product optimization and innovation[32] - The company is leveraging big data analytics to optimize game strategies and improve cross-promotion effectiveness[32] Operational Metrics - The cumulative registered user base reached 185.0 million by December 31, 2021, an increase of 5.4% year-on-year, surpassing industry growth rates[30] - The average monthly revenue for classic games such as "My Mission" and "Tank Frontline" reached RMB 21.1 million and RMB 11.5 million respectively, indicating sustained popularity despite their maturity[28] - The cost of revenue was approximately RMB 252.3 million, down about 11.3% from RMB 284.2 million in the previous year[39] - Sales and marketing expenses were approximately RMB 186.4 million, representing 30.4% of total revenue, up from 25.9% in the previous year[41] - Research and development expenses increased by approximately 30.6% to RMB 76.3 million, reflecting the company's strategy to enhance game development capabilities[45] Investment and Financing - The company plans to use internal resources for expansion, investment, and business operations[53] - The company is actively monitoring the status of its investment in China Gas Industry Investment Holdings Co. Limited, which has been suspended from trading since March 25, 2021[62] - The company has recognized a default event regarding HKD 250,000,000 secured notes issued by a third party, with accumulated interest of HKD 8,750,000 as of the default date[125] - The board is assessing the financial impact of the default event and is taking actions to recover the principal and accrued interest from the issuer[126] Corporate Governance - The company has adopted a Restricted Share Unit Plan to formalize the process of granting share rewards to eligible management and employees[128] - The company has a Stock Option Plan effective for ten years from June 19, 2018, aimed at incentivizing eligible participants and retaining talent[132] - Major shareholders include Liu Jie with 1,007,837,500 shares (52.18%) and Zhu Yanbin with 148,488,000 shares (7.69%) [138] - The group had a total of 334 employees as of December 31, 2021, down from 372 employees the previous year [146] Regulatory and Legal Risks - The company is subject to regulatory risks regarding foreign investment in the Chinese telecommunications sector, which may impact its operations[169] - The contractual arrangements are designed to mitigate risks associated with changes in Chinese laws and regulations affecting the company's business operations[168] - The company faces risks related to its contractual arrangements, particularly concerning its Chinese operating entity, which may declare bankruptcy or face liquidation, potentially impacting asset utilization[191] - Shareholders of the Chinese operating entity have committed not to engage in competitive businesses during the validity of the contractual arrangements, mitigating potential conflicts of interest[197]

[Company Information](index=4&type=section&id=Company%20Information) Provides fundamental details and background information about the company [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) Analyzes the company's operational performance, financial condition, and future outlook within the market context [Market Overview](index=6&type=section&id=Market%20Overview) In H1 2021, China's gaming industry growth slowed, with mobile games dominating the market, while the 'games going global' trend was prominent, especially for SLG titles, amidst rising advertising costs Key Data of China's Gaming Industry in H1 2021 | Metric | Value | | :--- | :--- | | Total gaming industry revenue | Approximately RMB 150.5 billion | | Total revenue year-on-year growth | 7.9% | | Mobile game sales revenue | RMB 114.7 billion | | Mobile game year-on-year growth | 9.7% | | China's game user base | 666.6 million people | | Mobile game user base | 656.3 million people | | Overseas sales revenue of self-developed games | USD 8.5 billion | | Overseas sales revenue year-on-year growth | 11.6% | - Strategy games (SLG) accounted for the **highest share of overseas revenue** from China's self-developed games, approximately **41.5%**, demonstrating strong international market competitiveness[42](index=42&type=chunk) - The year-on-year increase in game advertising and promotion unit costs is an industry consensus, making improved marketing efficiency a key challenge for game publishers[42](index=42&type=chunk) [Business Review](index=6&type=section&id=Business%20Review) During the reporting period, total revenue decreased by 34.3% year-on-year to RMB 282 million, primarily due to classic game decline, fewer new game approvals, strategic product launch adjustments, and ineffective marketing, despite user growth and stable performance from core SLG titles H1 2021 Performance Overview | Metric | Value | | :--- | :--- | | Total revenue | RMB 282 million | | Year-on-year change | Decrease of approximately 34.3% | | Cumulative registered users | 178 million | | Registered users year-on-year growth | 3.3% | - Four primary reasons for revenue decline include: (i) classic games reaching maturity; (ii) a significant reduction in new game approvals; (iii) strategic adjustments to new product launch plans; and (iv) uncertain effectiveness of industry marketing and promotion activities[43](index=43&type=chunk) - Classic games 'My Mission', 'Tank Front', and 'Starry Fantasy' remain popular years after launch, with peak monthly gross billings during the reporting period reaching **RMB 20.1 million**, **RMB 11.5 million**, and **RMB 12.2 million**, respectively[46](index=46&type=chunk) [Outlook for H2 2021](index=8&type=section&id=Outlook%20for%20H2%202021) The company plans to focus on long-lifecycle, high-quality games, especially SLG titles, within an increasingly regulated environment, leveraging extensive user data and multi-dimensional analytics to optimize new game launches, enhance player experience, and improve monetization for sustainable future growth - The company's core strategy is to develop **long-lifecycle products**, extending their lifespan through continuous introduction of new gameplay features to generate stable revenue[49](index=49&type=chunk) - The company will continue to leverage big data analytics, using its proprietary multi-dimensional data analysis engine to optimize game parameters based on player preferences, playtime, and spending, enhancing cross-promotion effectiveness and market performance[50](index=50&type=chunk) - Future plans include expanding the game portfolio, diversifying game categories while maintaining a focus on SLG titles, and adhering to the 'boutique game' philosophy[50](index=50&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) The Group's financial performance declined across the board in H1 2021, with total revenue down 34.3%, gross profit down 40%, operating profit down 56.9%, and profit attributable to owners down 48.4%, primarily due to reduced revenue, lower gross margin, and significantly increased R&D expenses H1 2021 Financial Summary (RMB in thousands) | Metric | H1 2021 (Unaudited) | H1 2020 (Unaudited) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 281,997 | 429,451 | -34.3% | | Gross profit | 163,512 | 271,850 | -39.9% | | Operating profit | 33,611 | 77,935 | -56.9% | | Profit before income tax | 54,669 | 99,455 | -45.0% | | Profit for the period attributable to owners of the Company | 45,015 | 87,212 | -48.4% | | Adjusted profit for the period attributable to owners | 46,393 | 94,293 | -50.8% | [Revenue](index=10&type=section&id=Revenue) Revenue decreased by 34.3% year-on-year to RMB 282 million, mainly due to the natural decline of older games, fewer new game approvals, and delayed launches, with co-publishing revenue increasing from 44.8% to 53.0% and becoming the primary source Revenue by Publishing Method (RMB in millions) | Publishing Method | H1 2021 | % of Total Revenue | H1 2020 % | | :--- | :--- | :--- | :--- | | Self-published | 132.6 | 47.0% | 55.2% | | Co-published | 149.4 | 53.0% | 44.8% | [Cost of Revenue](index=10&type=section&id=Cost%20of%20Revenue) Cost of revenue decreased by 24.8% year-on-year to RMB 118.5 million, primarily due to reduced revenue leading to a corresponding decrease in platform sharing fees and commissions paid to game developers Changes in Cost of Revenue | Metric | H1 2021 (RMB in millions) | H1 2020 (RMB in millions) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Cost of revenue | 118.5 | 157.6 | -24.8% | [Gross Profit and Gross Margin](index=10&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit was approximately RMB 163.5 million, a year-on-year decrease, with gross margin falling from 63.3% to 58.0%, primarily because the decline in costs was less than the decline in revenue Changes in Gross Profit and Gross Margin | Metric | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Gross profit | RMB 163.5 million | RMB 271.9 million | | Gross margin | 58.0% | 63.3% | [Selling and Marketing Expenses](index=11&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses significantly decreased by 47.0% year-on-year to RMB 57.7 million, falling from 25.4% to 20.5% of total revenue, mainly due to adjusted product launch plans and reduced advertising for mature games Changes in Selling and Marketing Expenses | Metric | H1 2021 (RMB in millions) | H1 2020 (RMB in millions) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Selling and marketing expenses | 57.7 | 108.9 | -47.0% | [Administrative Expenses](index=11&type=section&id=Administrative%20Expenses) Administrative expenses decreased from RMB 58.0 million in the prior period to RMB 34.3 million, primarily due to a reduction in impairment losses on assets Changes in Administrative Expenses | Metric | H1 2021 (RMB in millions) | H1 2020 (RMB in millions) | | :--- | :--- | :--- | | Administrative expenses | 34.3 | 58.0 | [Research and Development Expenses](index=11&type=section&id=Research%20and%20Development%20Expenses) R&D expenses increased by 44.0% year-on-year to RMB 38.4 million, primarily due to strategic investments in building an in-house R&D team to enhance game development capabilities Changes in Research and Development Expenses | Metric | H1 2021 (RMB in millions) | H1 2020 (RMB in millions) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | R&D expenses | 38.4 | 26.7 | +44.0% | [Profit for the Period](index=11&type=section&id=Profit%20for%20the%20Period) Profit attributable to owners decreased by 48.4% year-on-year to RMB 45.0 million, primarily due to a decline in gross margin (driven by increased co-publishing game contribution) and a significant rise in R&D expenses - Two main reasons for the profit decline are: 1) increased revenue contribution from co-published games with lower gross margins, leading to an overall gross margin decrease; and 2) a significant increase in R&D expenses incurred to establish an in-house R&D team and enhance development capabilities[68](index=68&type=chunk)[70](index=70&type=chunk) [Non-IFRS Measures — Adjusted Profit](index=12&type=section&id=Non-IFRS%20Measures%20%E2%80%94%20Adjusted%20Profit) Excluding share-based compensation, adjusted profit for the period was RMB 46.4 million, a 50.8% decrease from RMB 94.3 million in the prior period Reconciliation of Adjusted Profit (RMB in millions) | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Profit for the period | 45.0 | 87.2 | | Add: Share-based compensation | 1.4 | 7.1 | | **Adjusted profit** | **46.4** | **94.3** | [Liquidity, Funding and Borrowing Sources](index=12&type=section&id=Liquidity%2C%20Funding%20and%20Borrowing%20Sources) As of June 30, 2021, the Group's financial position was robust, with a current ratio of 7.9, up from 7.1 at the end of 2020, no bank borrowings, a zero debt-to-asset ratio, and plans to fund operations with internal resources Liquidity Metrics (as of June 30, 2021) | Metric | Value (RMB in millions) | | :--- | :--- | | Current assets | 1,521.4 | | Current liabilities | 192.0 | | Current ratio | 7.9 | | Bank and cash balances | 520.5 | | Debt-to-asset ratio | Zero | [Investments at Fair Value Through Profit or Loss](index=13&type=section&id=Investments%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2021, the Group's total investments at fair value through profit or loss significantly increased to RMB 273.5 million from RMB 147.8 million at year-end 2020, comprising Hong Kong-listed equity securities, wealth management products, and private company investments Investments at Fair Value Through Profit or Loss Portfolio (as of June 30, 2021) | Investment Category | Fair Value (RMB in millions) | | :--- | :--- | | Hong Kong-listed equity securities | 79.6 | | Wealth management products (Zhongzhou Longteng) | 57.2 | | Investments in private companies | 11.0 | | Wealth management products from major commercial banks | 125.7 | | **Total** | **273.5** | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Presents the Group's financial performance, including revenue, expenses, and profit, for the reporting period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Item (RMB in thousands) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Revenue | 281,997 | 429,451 | | Cost of revenue | (118,485) | (157,601) | | **Gross profit** | **163,512** | **271,850** | | Selling and marketing expenses | (57,704) | (108,901) | | Administrative expenses | (34,280) | (58,025) | | Research and development expenses | (38,408) | (26,666) | | Other income | 4,460 | 5,115 | | Other losses, net | (3,969) | (5,438) | | **Operating profit** | **33,611** | **77,935** | | Interest income | 21,366 | 21,666 | | Finance costs | (308) | (146) | | **Profit before income tax** | **54,669** | **99,455** | | Income tax expense | (9,654) | (12,243) | | **Profit for the period attributable to owners of the Company** | **45,015** | **87,212** | | **Basic earnings per share (RMB)** | **0.0237** | **0.0463** | [Condensed Consolidated Statement of Financial Position](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Outlines the Group's assets, liabilities, and equity at the end of the reporting period, reflecting its financial health Condensed Consolidated Statement of Financial Position Summary (RMB in thousands) | Item | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Total non-current assets | 167,147 | 149,095 | | Total current assets | 1,521,409 | 1,491,488 | | **Total assets** | **1,688,556** | **1,640,583** | | **Equity and Liabilities** | | | | Total equity | 1,468,786 | 1,430,700 | | Total current liabilities | 191,967 | 209,552 | | Non-current liabilities | 27,803 | 331 | | **Total liabilities** | **219,770** | **209,883** | | **Total equity and liabilities** | **1,688,556** | **1,640,583** | [Condensed Consolidated Statement of Changes in Equity](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Details the changes in the Group's equity components over the reporting period, including profit, other comprehensive income, and transactions with owners - As of June 30, 2021, total equity attributable to owners increased to **RMB 1.469 billion** from **RMB 1.431 billion** at the beginning of 2021, primarily driven by profit for the period of **RMB 45.0 million**, partially offset by a decrease in reserves due to exchange differences[89](index=89&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=18&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Summarizes the cash inflows and outflows from operating, investing, and financing activities for the reporting period Condensed Consolidated Statement of Cash Flows Summary (for the six months ended June 30) | Item (RMB in thousands) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Net cash generated from operating activities | 47,576 | 67,892 | | Net cash used in investing activities | (38,941) | (53,376) | | Net cash used in financing activities | (4,860) | (4,161) | | Net increase in cash and cash equivalents | 3,775 | 10,355 | | Cash and cash equivalents at beginning of period | 521,549 | 777,962 | | **Cash and cash equivalents at end of period** | **520,496** | **799,094** | [Notes to the Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and additional information supporting the condensed consolidated financial statements [Revenue and Segment Information](index=24&type=section&id=5.%20Revenue%20and%20Segment%20Information) The Group operates in a single reportable segment, with most revenue derived from China; co-published games generated RMB 149 million, surpassing self-published games at RMB 133 million, and revenue from the top three game developers exceeded 50% of total revenue, indicating concentration risk Revenue Contribution from Major Game Developers | Developer | H1 2021 Revenue Contribution | | :--- | :--- | | Game Developer A | 26.1% | | Game Developer B | 12.1% | | Game Developer C | 11.2% | [Bills Receivable](index=31&type=section&id=16.%20Bills%20Receivable) The issuer of the company's HKD 250 million bills receivable, Obi Global Development Limited, defaulted by failing to repay principal and interest on the extended due date of June 12, 2021, prompting the company to evaluate legal actions for recovery, which may impact its financial position - The issuer of the bills receivable failed to repay principal and interest on the extended due date, constituting a **default event**, and the company is seeking legal advice and evaluating potential enforcement actions[162](index=162&type=chunk) [Share-based Payment Transactions](index=34&type=section&id=20.%20Share-based%20Payment%20Transactions) The company has a restricted share unit scheme, with no new grants during the period; as of period-end, 3.333 million restricted share units remained unvested, and the company recognized related share-based payment expenses of RMB 1.377 million Movement of Restricted Share Units (in thousands of shares) | Item | H1 2021 | | :--- | :--- | | Beginning of period | 4,293 | | Vested | (960) | | **End of period** | **3,333** | [Other Information](index=36&type=section&id=Other%20Information) Presents additional disclosures not covered in the main financial statements, including corporate governance, litigation, and shareholding details [Use of Proceeds from Listing](index=36&type=section&id=Use%20of%20Proceeds%20from%20Listing) As of June 30, 2021, approximately HKD 618 million of net proceeds from the listing remained unutilized, with significant balances for 'developing game acquisition capabilities' (HKD 290 million) and 'establishing an in-house game R&D team' (HKD 201 million) Use of Proceeds from Listing and Remaining Balances (HKD in millions) | Intended Use | Net Amount | Balance as of June 30, 2021 | | :--- | :--- | :--- | | Developing game acquisition capabilities | 338.5 | 289.7 | | Establishing an in-house game R&D team | 241.8 | 200.5 | | Marketing and promotion activities | 193.4 | — | | Developing overseas markets and business | 96.7 | 64.0 | | Working capital and general corporate purposes | 96.7 | 63.9 | | **Total** | **967.1** | **618.1** | [Directors' and Chief Executive's Interests in Shares, Underlying Shares and Debentures](index=37&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2021, Chairman Mr. Liu Jie held 52.18% of the company's shares through controlled corporations, and Executive Director Mr. Zhu Yanbin held 7.69%, indicating a highly concentrated shareholding structure Major Directors' Shareholding | Name | Capacity/Nature of Interest | Number of Shares Held | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Liu Jie | Interest in controlled corporation | 1,007,837,500 | 52.18% | | Mr. Zhu Yanbin | Interest in controlled corporation | 148,488,000 | 7.69% | [Litigation](index=40&type=section&id=Litigation) The company faces two significant legal issues: a lawsuit from Leading Global Fund SPC claiming HKD 250 million, and a default by the issuer of the company's HKD 250 million notes, both potentially having a material adverse impact on its financial and operational status - The company received a writ of summons from Leading Global Fund SPC as plaintiff, claiming **HKD 250 million** related to an alleged subscription agreement[234](index=234&type=chunk) - A **default event** occurred on the **HKD 250 million** principal amount of notes subscribed by the company, as the issuer failed to pay principal and interest on the extended due date[235](index=235&type=chunk) [Update on Directors' Information](index=41&type=section&id=Update%20on%20Directors'%20Information) Post-reporting period, significant changes occurred in the company's board and management, including the resignations of two executive directors and one independent non-executive director, leading to non-compliance with listing rules regarding board independence, audit committee, and remuneration committee composition - Mr. Wang Zaicheng resigned as Executive Director and Joint Company Secretary (effective May 28, 2021)[240](index=240&type=chunk) - Mr. Liu Zhanxi resigned as Executive Director and Chief Financial Officer (effective May 28, 2021)[241](index=241&type=chunk) - Ms. Yao Minru resigned as Independent Non-Executive Director and from multiple committee positions (effective July 13, 2021), resulting in the company's non-compliance with several listing rules regarding board and committee composition[242](index=242&type=chunk)[248](index=248&type=chunk) [Glossary](index=44&type=section&id=Glossary) Provides definitions for key terms and abbreviations used throughout the report for clarity and understanding

2020年 年度報告ANNUAL REPORT 2020年年度報告 FingerTango Inc. 2020 ANNUAL REPORT FingerTango Inc. (Incorporated in the Cayman Islands with limited liability) Stock Code: 6860 FINGER TANGO FingerTango Inc. （於開曼群島註冊成立的有限公司） 股份代號: 6860 目錄 公司資料 五年財務摘要 4 主席報告書 5 管理層討論與分析 6 董事會報告 13 董事及高級管理層 37 企業管治報告 42 環境、社會及管治報告 54 90 獨立核數師報告 綜合損益及其他全面收益表 95 綜合財務狀況表 96 綜合權益變動表 98 綜合現金流量表 99 101 綜合財務報表附註 158 釋義 2 公司資料 董事會 執行董事 劉傑先生（主席兼首席執行官） 朱炎彬先生 王在成先生 劉展喜先生 獨立非執行董事 姚敏茹女士 郭靜鬥先生 柳建華博士 審核委員會 姚敏茹女士（主席） 郭靜鬥先生 柳建華博士 薪酬委員會 郭靜鬥先生（主席） 朱炎彬先生 姚敏茹女 ...

INTERIM REPORT 202 0 年中期報告 FingerTango Inc. 2020年 中期報告 2020 INTERIM REPORT FingerTango Inc. (Incorporated in the Cayman Islands with limited liability) Stock Code: 6860 FingerTango Inc. （於開曼群島註冊成立的有限公司） 股份代號: 6860 目錄 2 公司資料 4 財務摘要 5 管理層分析與討論 14 獨立審閱報告 15 簡明綜合損益及全面收益表 16 簡明綜合財務狀況表 18 簡明綜合權益變動表 19 簡明綜合現金流量表 20 簡明綜合財務報表附註 35 其他資料 42 詞彙 公司資料 審核委員會 薪酬委員會 聯席公司秘書 王在成先生 黃儒傑先生 董事 執行董事 劉傑先生（主席兼首席執行官） 朱炎彬先生 王在成先生 劉展喜先生 法律顧問 關於香港法律： 美邁斯律師事務所 香港 干諾道中1號 友邦金融中心31樓 獨立非執行董事 郭靜鬥先生 姚敏茹女士 柳建華博士（二零二零年一月十三日獲委任） 姚敏茹女士（主席） 郭靜鬥先生 柳 ...