TIANGE (01980) announced that the company expects to achieve revenue of approximately RMB 32.4 million for the first half of 2025, compared to revenue of approximately RMB 5.3 million for the six months ended June 30, 2024. The company also expects to record a net loss attributable to shareholders of approximately RMB 22.4 million for the period, compared to a net profit attributable to shareholders of approximately RMB 44.1 million for the six months ended June 30, 2024.

The Board of Directors believes that the main reasons for the year-over-year shift from net profit to net loss are: increased product incubation costs - the Group's strategy of focusing on simultaneously investing in and incubating multiple online interactive entertainment platforms across various regions has resulted in substantial resource allocation to product incubation, thereby increasing costs; and fair value losses - macroeconomic factors, including the imposition of reciprocal tariffs, have caused fair value losses on the Group's financial investments.

Despite the aforementioned adverse developments, the Group's operations and cash flow remained stable during the period.