FriendTimes Inc. provided consolidated earnings guidance for the six months ended 30 June 2022. For the period, the company expecting to record a net loss of approximately RMB 70 million to RMB 80 million for the Period, compared with a net profit of approximately RMB 130 million for the same period in 2021; revenue for the Period was approximately RMB 800 million to RMB 850 million, compared to revenue of approximately RMB 833 million for the same period in 2021; gross profit for the Period was approximately RMB 560 million to RMB 580 million, compared to a gross profit of approximately RMB 560 million for the same period in 2021. The above expected loss for the Period of the Group is mainly attributed to: Increase in the Group's marketing expenses for the Period, which is expected to increase by approximately RMB 180 million to RMB 200 million, mainly due to the focused marketing expenses incurred for the launch of the new product Promise of Lingyun during the Period, as well as the related expenses for the upgrade of the Group's overall brand marketing.

Based on the current favourable performance of Promise of Lingyun, the Board believes that it will gradually recover the upfront expenses during the second half year of 2022; the Group's older games have a normal fall in related revenue during their later stage of life cycle; and the Group has maintained a high level of investment in research and development during the Period, mainly in core talent reserve, turnover of research and development tools and exploration of new technologies.