06860.HK announced that for the six months ended June 30, 2022, the group recorded a total income of about 392.8 million yuan, an increase of about 39.3% compared with the same period last year. The increase in revenue is mainly due to the combined impact of the following factors: (I) effective marketing and promotion activities for a number of new games, with a significant increase in revenue from these new games during the reporting period, accounting for more than 50% of the total revenue during the reporting period; (ii) the classic games that have been online for many years have entered a mature period and their revenues have shown a natural decline, partially offsetting the total revenue during the reporting period. And (iii) made strategic adjustments and deployments to the new game release plan, resulting in the launch of games that should have been launched during the reporting period.

During the reporting period, the company recorded a loss of RMB 63.7 million attributable to the owner, compared with a profit attributable to the owner of the company of about RMB 45 million in the same period last year. The change was mainly due to the development of the COVID-19 epidemic in China during the reporting period and the Group's wider marketing and promotion activities for some new games, which led to a surge in sales and marketing expenses. in addition, the growth momentum of the previously pressured game industry has not recovered due to the long-term suspension of approval for the release of online games.

In response to the situation in the market, the company has made strategic adjustments and arrangements for the release of new games, conducted comprehensive tests on new games launched during the reporting period, and deeply optimized the products according to the changing preferences of players. with a view to achieving a brighter performance in the market after the game is officially launched. On the other hand, the new games launched by the company during the reporting period are still in the promotion period and the gestation period of building a player base, and it is expected that the growth momentum of the new games and their contribution to the group's revenue will be released in the second half of 2022 and beyond.