FriendTimes Inc. provided earnings guidance for the year ending ended 31, 2021. The board of directors informed the shareholders of the Company and potential investors that, based on the preliminary assessment of the unaudited consolidated management accounts of the Company and its subsidiaries for the year ended 31 December 2021 and the information currently available, it is expected that, for Year 2021, the profit for the year, which has the same meaning as stated in the 2020 Annual Report, of the Group will experience a decrease ranging from approximately 40% to 50%, as compared to that for the year ended 31 December 2020. The above-mentioned expected decrease of profit for the year for Year 2021 by the Group is mainly due to: a decrease in revenue from games for Year 2021 given the facts that no major new games were launched for the year as a result of product scheduling and the revenue from existing games has a little and usual decline as a result of life cycle; an increase in research and development expenses for Year 2021 due to an increase in investment for research and development arising from expansion of game product portfolio, improvement in development ability for self-developed games and advancement in terms of technology level and for users' experience, together with further effort in the reinforcement of system established for talent training and the enhancement of office environment and regular benefits; and an increase in share-based remuneration expenses recorded for Year 2021 as a result of the share award scheme.

In the opinion of the Board, the profit for the year of the Group will decrease for Year 2021 in view of the above-mentioned reasons, as compared to that for Year 2020. Meanwhile, plentiful resources on proprietary games and licensed games and integrated long-term investment strategy on research and development, distribution and operation will be beneficial to the sustainability of the Group. Therefore, the Board is confident of the long-term development and prospects of the Group.