Archosaur Games Inc. provided consolidated earnings guidance for the year ended 31 December 2021. The board of directors of the Company informed the shareholders of the Company and potential investors that, based on its preliminary assessment of the company's unaudited consolidated management accounts for the year ended 31 December 2021 and information currently available, the company is expected to report an adjusted net loss for the Period in the range of approximately RMB 220.0 million to RMB 240.0 million, while it recorded the adjusted net profit of approximately RMB 218.8 million for the year ended 31 December 2020. The loss was primarily attributable to the following factors: the decrease in revenue; a new game published in mainland China did not perform as well as expected; the increase in research and development expenses to satisfy the Group's business expansion needs, which was mainly brought by the increase in the number of research and development personnel and corresponding increase in employee benefit expenses for employees engaging in research and development activities and the increase in outsourced technical services; and the increase in selling and marketing expenses, which was mainly brought by the increase in promotion and advertising expenses and the increase in employee benefit expenses for
employees engaging in publishing activities because the simulation game ("SLG") product, mainly self-published by the Group and launched successively in several countries and regions in mid-2021, was in the main investment and growth stage during 2021.