Inkeverse Group Limited provided preliminary consolidated earnings guidance for the year ended 31 December 2022. Based on a preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2022 (the "Reporting Period") and information currently available, it is expected that the Group will record a net loss of approximately RMB 160 million during the Reporting Period as a result of the provision for impairment of goodwill of approximately RMB 510 million in relation to Social Network Technology Co. Ltd. If the effect of Blueberry Impairment and the relevant matters are not taken into account, the Group expects the adjusted net profit will be approximately RMB 400 million.

The aforementioned changes in the operating results are mainly due to the intensifying industry competition resulting from the increasing number of interactive entertainment industry practitioners in China's lower tiers cities. Meanwhile, the Group has made more cautious operational adjustments to its products under certain new industry regulations introduced in 2022, leading to short-term impacts on revenue. However, such measures have increased the long-term operating capability and profitability of the Group's products, further consolidating the Group's sustainable development strategy.

In addition, the Group has increased its investments in research and development and operation of overseas market products and other innovative products. Currently, it has launched a number of products in overseas markets and achieved commercial verification in some regions.