FINGERTANGO (06860) issued a profit warning, expecting a mid-term loss attributable to shareholders of approximately 30.4 million yuan, compared to a profit in the same period last year.

FINGERTANGO (06860) announced that, compared to the approximately RMB 4.4 million profit attributable to the owners of the company for the six months ended June 30, 2025 (the same period), the Group expects to incur a loss of approximately RMB 30.4 million attributable to the owners of the company for the six months ending June 30, 2026 (the reporting period). The expected turnaround from profit to loss during the reporting period is mainly due to the following factors: (i) Revenue during the reporting period is expected to decrease by approximately RMB 43.6 million or 20.6% compared to the same period, primarily due to the natural decline in revenue from classic games that have been operating for many years and have entered a mature phase; (ii) The decrease in the cost of revenue is proportionally lower than the decrease in revenue. Although variable expenses such as platform sharing fees and commissions charged by game developers have reduced with the decline in revenue, certain fixed and semi-fixed components (including amortization of licenses) in the cost of revenue have not decreased proportionately, thereby exerting pressure on the gross profit margin; and (iii) Other income, gains, and losses are expected to decrease sharply from approximately RMB 7.6 million in the same period to about RMB 900,000 in the reporting period, mainly due to a shift from a net foreign exchange gain in the reporting period to a net foreign exchange loss of approximately RMB 5.8 million.