Forgame Holdings Limited (FORGAME, 00484.HK) released its unaudited results for the six months ended 30 June 2026.

Revenue and Profitability • Revenue declined 34.9 % year on year to RMB 50.75 million (H1 2025: RMB 78.00 million), largely due to softer sales in the electronic device & semiconductor unit. • Gross profit rose 151.6 % to RMB 4.86 million, reflecting a sharper 39.7 % drop in cost of revenue than top-line contraction. • Loss for the period narrowed 21.2 % to RMB 16.49 million (H1 2025 loss: RMB 20.92 million). • EBITDA stood at a negative RMB 12.24 million versus a negative RMB 5.26 million a year earlier, while adjusted EBITDA widened to a negative RMB 22.44 million (H1 2025: negative RMB 9.89 million) after investment-related adjustments.

Segment Performance • Electronic device & semiconductor revenue fell 38.1 % to RMB 44.88 million, accounting for 88.5 % of group turnover, impacted by weaker demand for high-performance memories and hard-disk drives. • Game business revenue slipped 7.9 % to RMB 5.09 million as legacy titles “凡人修真2” and “醉西遊” matured. • Newly launched fund management operations contributed RMB 0.77 million, representing 1.5 % of total sales.

Cost & Expense Dynamics • Selling and marketing costs were trimmed 22.3 % to RMB 3.04 million, mirroring lower game-related promotion spend. • Administrative expenses increased 40.8 % to RMB 19.64 million, driven by higher inventory allowances. • R&D expenses contracted 36.2 % to RMB 7.57 million following tighter cost control in game development. • Other gains – net more than doubled to RMB 9.28 million, mainly from higher investment gains.

Balance Sheet & Liquidity • Total equity declined to RMB 398.68 million (31 Dec 2025: RMB 421.52 million) due to the interim loss and FX translation effects. • Net current assets stood at RMB 298.32 million (31 Dec 2025: RMB 317.56 million). • Cash and cash equivalents were largely stable at RMB 95.60 million. The group had no bank borrowings, leaving its gearing ratio at 0 %. • Capital expenditure was modest at RMB 0.08 million, mainly for office equipment.

Capital Allocation & Shareholder Returns • No interim dividend was declared. • Of the HKD 14.90 million net proceeds from the April 2025 share placing, HKD 5.50 million (37 %) remained unutilised as of 30 June 2026.

Operational Risks & Outlook Management cites continued headwinds from geopolitical tensions, soft consumer demand, and rapid AI-driven industry shifts. Priorities for H2 2026 include stabilising the legacy game portfolio, sustaining cash flow from the electronic device & semiconductor unit, controlling costs, and selectively exploring new opportunities within a diversified development framework.