Fingertip Yuedong (06860) issued a profit warning. It is expected that shareholders should account for a loss of about 30.4 million yuan in the medium term and change from profit to loss over the same period

According to the Zhitong Finance App, Fingertip Yuedong (06860) issued an announcement. Compared with the profit attributable to the Company's owners of approximately RMB 4.4 million for the six months ended June 30, 2025 (same period), the Group is expected to obtain losses attributable to the owners of the Company of approximately RMB 30.4 million for the six months ending June 30, 2026 (reporting period).

The Group is expected to turn profit and loss during the reporting period, mainly due to the following factors: (i) revenue decreased by approximately RMB 43.6 million or 20.6% over the same period during the reporting period, mainly due to a natural decline in revenue from classic games that have been in operation for many years and have reached maturity; (ii) the reduction in revenue costs is lower than the decline in revenue. Although variable expenses such as platform sharing fees and commissions collected by game developers declined as revenue declined, several fixed and semi-fixed components of revenue costs (including license amortization) did not decrease proportionately, putting pressure on gross margin; and (iii) other revenue, revenue and loss were drastically reduced from approximately RMB 7.6 million during the same period to approximately RMB 900,000 during the reporting period, mainly due to the shift from net foreign exchange earnings to net foreign exchange losses of about RMB 5.8 million during the reporting period.