Inkeverse Group Limited provided earnings guidance for the six months ended 30 June 2022. For the year, the company informed the shareholders of the Company and potential investors that it is expected that there will be a provision for impairment of goodwill approximately RMB 0.5 billion in relation to Social Network Technology Co. Ltd. caused by the reasons set out below.

The management of the Company conducted a comprehensive review of the various operation of Blueberry, amid the continued economic downturn and higher operating costs in 2022. The management resolved to adjust the monetization strategy and to enhance the user experiences, resulting in an overall slowdown in future revenue and cashflow forecast of Blueberry compared with previous expectations. The Blueberry Impairment is a non-cash item and has no impact on the Group's cash flow, operations or liquidity position.

Please refer to the section 18. Intangible assets (continued) (ii) Impairment test for goodwill of Blueberry on page 133 of the Company's annual report published on 25 April 2022 for further background information. Based on the preliminary assessment and analysis of the Group's unaudited consolidated management accounts for the six months ended 30 June 2022 and the information currently available to the Board, the Group is expected to record a net loss ranging from RMB 100.5 million to RMB 122.8 million for the Reporting Period, as compared to a net profit of approximately RMB 142.3 million recorded for the corresponding period in 2021.

The Board emphasized that except for the Blueberry Impairment, the overall business performance of the Group remains stable. Without taking into account the impact of the Blueberry Impairment, the Group's net profit would have been in the range of approximately RMB 355.6 million to RMB 393.0 million, representing an increase of approximately 149.9% to 176.2% as compared to RMB 142.3 million recorded for the corresponding period in 2021.