Qingci Games (06633) effectively controls costs, net profit significantly increases in the first half of the year, long-term operation + globalization + solid research and development reserves build a strong foundation for growth.

QINGCI GAMES (06633) announced its mid-year performance for 2025, achieving approximately 247 million yuan in revenue, approximately 154 million yuan in gross profit, and a net profit of 72.67 million yuan, representing a 90.2% increase from the same period last year, showing a continuous improvement in profitability. As of June 30, 2025, the group has multiple APP mobile games, including placement games, Rogue-like RPGs, other RPGs, and mini-games. The announcement states that the growth in net profit is mainly due to the group's efficient management and cost control, as well as significant reductions in marketing expenses compared to the same period last year; positive exchange rate fluctuations and the group's strong foreign exchange management measures have led to a significant increase in exchange gains compared to the same period last year. In terms of game operation data: as of June 30, 2025, the group has accumulated over 100 million registered players, a 7.56% increase from the same period last year; the monthly average active users are approximately 1.144 million, the monthly average paying users are approximately 140,600, and the ARPPU is 289.79 yuan, a 5.26% increase from the same period last year. The changes in the above game operation data are mainly due to some games entering maturity, resulting in a decline in active users and paying users; the group has attracted new players to register and some old players to return by launching new game versions and optimizing game content, thus increasing user willingness to pay. During the reporting period, the group achieved significant results in the following areas: (1) Long-term operation with outstanding results, core games demonstrating new vitality: In June 2025, the flagship self-developed game "Strongest Snail" celebrated its fifth anniversary online in mainland China, Hong Kong, and Taiwan. By launching a new anniversary version and optimizing game content, the game successfully attracted a large number of old players to return, significantly increasing user willingness to pay. During the anniversary celebration, the game's ARPPU increased from around 200 yuan to nearly 300 yuan, an increase of about 50%, showcasing the group's outstanding capabilities in game content innovation and long-term operation. (2) Steady progress in global layout, expanding into overseas markets further: Following the success in multiple overseas markets, the group is actively preparing for the launch of the Korean version of "Strongest Snail," expected to be officially released in the second half of 2025, further enhancing the group's influence in core markets. The overseas release of "Cardcaptor Sakura: Memory Key" in Vietnam and Japan is also in preparation. The continued expansion of overseas business will provide more diverse and stable growth momentum for the group's revenue. (3) Focused breakthroughs in R&D pipeline, laying a solid foundation for future growth: The group's strategic self-developed game "Project E" is progressing smoothly, and recently started the "Planck test" for core players, accelerating game development versions through player interaction. This game combines innovative gameplay such as map exploration, inventory management, and resource collection, and is expected to become the group's next milestone product, accumulating strong potential for the group's future breakthrough development. At the same time, the group continues to optimize the R&D process, fully embracing emerging technologies such as AI to further enhance development efficiency and product quality.