According to Zhitong Finance App, Feiyu Technology (01022) issued an announcement. It is anticipated that the Group may record a net loss of about RMB 5 million to RMB 15 million after tax in the six months ending June 30, 2026, while net profit after tax is approximately RMB 56.5 million for the six months ending June 30, 2025.
The expected net loss after tax is mainly due to the following factors: 1) In June 2026, the Group increased operating investment by carrying out two-year operating activities in “one step, two steps”, and increased related investment based on the game's good operating performance and monetization potential. These operating investments were generated and confirmed as expenses during the reporting period, and the revenue brought by the relevant new and returning users is expected to be gradually realized during the subsequent period. The resulting time difference between relevant investment and revenue realization adversely affected the Group's profit performance in the first half of 2026; 2) The “step by step” net revenue (after deducting related channel fees and distribution expenses) decreased, mainly due to the game entering a peak return in the first half of 2025 after early operating investment, forming a high comparative base; at the same time, the game entered the life cycle in 2026 The maturing stage; and 3) The HTML5 game “Reversal Round,” which was launched in March 2026, is still in its early stages and requires significant operational investment. After the game was launched, the Group gradually increased operating investment based on its user acquisition, activity and monetization performance. Since these investments are generated before relevant users contribute revenue during their life cycle, the financial performance brought about by such investment has not been fully reflected in the Group's results for the first half of 2026.
Despite short-term pressure on profitability, the operating performance of related games is encouraging. “Reversal Round” jumped to 27th place in the WeChat Mini Game Bestseller list in July 2026, while “One Step Two Steps” returned to 8th place in June 2026. The above metrics provide initial support for the continued monetization potential of these two games. The company's past “step by step” experience in operation also strongly confirms the strategy of “early strategic investment and subsequent long-term return”. For example, “step by step” generated huge issuance expenses at the end of 2024, but significant returns were achieved in early 2025.
In addition to the HTML5 game launched in the first half of 2026, many other games are currently in the testing phase and are scheduled to be officially launched in the second half of 2026. The product pipeline is expected to gradually drive performance improvements and lay a sustainable foundation for the Group's multi-stage growth. As a result, the Board of Directors expects the Group's operating performance to improve in the second half of 2026.