Qingci Games (06633) issued a positive profit alert, estimating net profit for the six months ended 30 June 2026 at RMB305 million–RMB335 million, a 320%–361% leap from RMB72.70 million in the prior-year period.

Management attributes the sharp earnings expansion primarily to substantial fair value gains on short-term investments. These gains more than compensated for two headwinds:

1. Gross profit is projected at RMB85 million–RMB115 million, reflecting a 25%–45% year-on-year decline as key titles mature and gross billings taper. 2. Research and development spending increased as the company intensified investment in its game pipeline and accelerated the integration of AI across product development and operations.

Operational highlights during the reporting period include: • June launch of “Cardcaptor Sakura: Memory Key” in Japan, which ranked first on the local iOS free games chart. • Sixth-anniversary update of “The Marvelous Snail/SuperSnail,” delivering double-digit growth in both ARPU and ARPPU during the event.

In the second half of 2026, Qingci Games plans to progress publication of the Korean release of “The Marvelous Snail/SuperSnail” and the global launch of “Lost Light,” while continuing tests for “Disney: Book Realm Legends” and “Project E.” Management reaffirmed its commitment to a strategy of “Premiumization, Globalization, Long-term Development.”

The interim results, scheduled for release by end-August 2026, remain subject to review by the audit committee and independent auditors. Investors are advised to exercise caution when dealing in the company’s securities until the finalized figures are published.