Middle-hand games: the net loss is expected to be no more than 60 million yuan in the first half of the year.

CTOnews.com8, March 15 (Xinhua)-- Mobile game developer and publisher CMGE issued a profit warning on the Hong Kong Stock Exchange today, saying that China Mobile Games Group is expected to record a net loss of no more than 60 million yuan in the first half of 2022, compared with a net profit of 378.3 million yuan in the same period last year.

The announcement shows that the main factors contributing to the decline in the performance of the Chinese mobile game group are the following two points:

Revenue in the first half of 2022 decreased by about 42% to 45% compared with the first half of 2021, mainly due to reduced revenue from a number of games scheduled to be launched in the first half of 2022 later than expected and a number of games that have entered the later stages of their life cycle.

The R & D expenditure in the first half of 2022 increased by about 60% to 80% compared with the first half of 2021, mainly due to the increase in the Group's R & D expenditure on new game projects.

China Mobile Games Group said that although its operating performance declined in the first half of 2022, it will improve its operating performance in the second half of the year through continuous resource integration, cost reduction, efficiency improvement and the recent release of new games by China Mobile Games Group.

CTOnews.com learned that Mid-Mobile Games said on August 5 that it had reached an IP-authorized adaptation of mobile games with Universal Pictures and DreamWorks Animation to develop and launch DreamWorks Animation's first IP all-star mobile game "DreamWorks Alliance" worldwide.

In addition, the self-developed fighting game "all-Star fierce fight" will be launched in China in late October, and the game has been licensed by SNK.