QINGCI GAMES' cost control shows results, with net profit significantly increasing in the first half of the year. Long-term operations + globalization + R&D reserves strengthen the foundation for growth

According to the Zhitong Finance APP, QINGCI GAMES (06633) announced its mid-term results for 2025, achieving revenue of approximately RMB 247 million, a gross profit of approximately RMB 154 million, and a net profit of RMB 72.67 million, representing a 90.2% increase compared to RMB 38.2 million in the same period last year, with profitability continuing to improve. As of June 30, 2025, the group has multiple APP mobile games, covering idle games, Rogue-like RPGs, and other RPGs, as well as mini-program games. The announcement stated that the net profit growth was mainly due to the group's efficient management operations and cost control, with significant reductions in marketing expenses compared to the same period last year; and the positive fluctuations in exchange rates and the group's good foreign exchange management measures, which led to a substantial increase in exchange gains compared to the same period last year. In terms of game operation data: as of June 30, 2025, the group had accumulated over 100 million registered players, an increase of 7.56% compared to last year; the average monthly active users were approximately 1.144 million, and the average monthly paying users were approximately 140,600, with ARPPU reaching RMB 289.79, a year-on-year increase of 5.26%. The changes in the above game operation data were mainly due to some games being in the mature stage, resulting in a decline in active users and paying users; and the group attracted new player registrations and some returning old players by launching new game versions and optimizing game content, which also enhanced users' willingness to pay. During the reporting period, the group achieved significant results in the following areas: (1) Long-term operational effectiveness is remarkable, core games rejuvenated: In June 2025, the flagship self-developed game "The Strongest Snail" celebrated its fifth anniversary of launch in mainland China and the Hong Kong, Macau, and Taiwan regions. By launching a brand new anniversary version and optimizing game content, the group successfully attracted a large number of returning old players and significantly increased users' willingness to pay. During the anniversary celebration, the game's ARPPU increased significantly from approximately RMB 200 to nearly RMB 300, an increase of about 50%, fully demonstrating the group's outstanding capabilities in game content innovation and long-term operations; (2) Global layout is steadily advancing, overseas market achieves another success: Following success in multiple overseas markets, the group is actively preparing for the launch of the Korean version of "The Strongest Snail," expected to be officially released in the second half of 2025, further enhancing the group's influence in core markets. The overseas distribution of "Cardcaptor Sakura: Key to Memories" in Vietnam and Japan is also in preparation. The continuous expansion of overseas business will provide more diverse and stable momentum for the group's revenue growth; and (3) R&D pipeline focuses on breakthroughs, solid foundation for future growth: The strategic self-developed major project "Project E" is progressing smoothly, having recently launched a "Planck Test" aimed at core players, accelerating the iteration of game development versions through interaction with players. This game integrates innovative gameplay such as map exploration, backpack management, and resource collection, and is expected to become the group's next milestone product, accumulating strong momentum for the group's future leap-forward development. Meanwhile, the group continues to optimize the R&D process, fully embracing emerging technologies such as AI, further enhancing R&D efficiency and product quality