Master Lu (03601) Fa Ying Guang expects a loss of about 13 million to 15 million yuan in the first half of the year

Zhitong Finance App News, Master Lu (03601) announced that the group expects to lose about 13 million to 15 million yuan in the first half of 2026, while profit of about 11.9 million yuan in the same period in 2025.

According to the announcement, the main reasons for the net loss were as follows: The Group's exclusively licensed online gaming business was a source of profit contribution, and its performance during the relevant period fell short of expectations: 1) The business mainly relied on three exclusively licensed online game products developed based on well-known intellectual property rights. These online games have entered the third to fifth year of operation since their launch, and the product life cycle has reached a mature or late stage, so user activity and user willingness to pay have declined further, leading to a drastic reduction in the profit contribution of operating an exclusively licensed online game business; and 2) The Group has been actively searching for new online game products with market influence to make up for the revenue gap caused by the decline in the life cycle of existing online game products. The Group officially launched the “Kung Fu Panda: Dragon Warrior” game in the mainland China market at the end of 2025. However, due to the depth of game content and rich gameplay that did not fully meet user needs, players' willingness to pay was low, and overall sales performance after launch fell short of expectations. Furthermore, prepaid copyright fees and intellectual property license fees related to the online game were amortized during the relevant period, and related costs were included in current profit and loss, causing the game to suffer significant losses during the relevant period; and during the relevant period, the RMB exchange rate continued to appreciate against the US dollar. As a result, the Group's monetary assets denominated in US dollars caused large exchange losses, which further affected the net profit performance during the relevant period.