Archosaur Games FY2025 Earnings Release

2025
ANNUAL REPORT
年報
(Incorporated in the Cayman Islands with limited liability)( 於開曼群島註冊成立的有限公司 )
Stock Code
股份代號 : 9990
祖龍娛樂有限公司
Archosaur Games Inc.

Page
Definitions 2
Corporate Information 8
Financial Summary 10
Chairman ’
s Statement 11
Financial Performance Highlights 14
Management Discussion and Analysis 15
Directors ’
Report 32
Biographical Details of Directors and Senior Management 65
Corporate Governance Report 71
Independent Auditor ’
s Report 84
Consolidated Statement of Profit or Loss 90
Consolidated Statement of Comprehensive Income 91
Consolidated Balance Sheet 92
Consolidated Statement of Changes in Equity 94
Consolidated Statement of Cash Flows 96
Notes to the Consolidated Financial Statements 98
Contents

02
In this annual report, unless the context otherwise requires, the follow\
ing expressions shall have the following
meanings:
“ Amendment Date ”
22 December 2022, being the date on which the amendments to the Share
Option Scheme was approved by the Shareholders at the extraordinary
general meeting of the Company held on 22 December 2022
“ Articles of Association ”
the amended and restated memorandum and articles of association of the
Company (as amended from time to time)
“ Audit Committee ”
the audit committee of the Company
“ Beijing Fantasy Mermaid ”
Beijing Fantasy Mermaid Technology Limited* ( /ÌÕ[áŦޔ®
! ), a company established under the laws of the PRC with limited liability
on 9 September 2014, which is wholly-owned by Famous Game Company
Limited, our subsidiary and a WFOE
“ Beijing Loong ”
Beijing Loong Game Technology Limited* ( / Y²7Ŧޔ®!), a
company established under the laws of the PRC with limited liability on \
9
September 2014 and one of the Registered Shareholders
“ Board ”
the board of Directors
“ BVI ”
the British Virgin Islands
“ Company ”
or “
Archosaur Games ”
Archosaur Games Inc. 祖龍娛樂有限公司 , an exempted company
incorporated under the laws of the Cayman Islands with limited liability,
whose Shares are listed and traded on the Main Board of the Stock
Exchange (stock code: 9990)
“ Consolidated Affiliated Entities ”
the entities we control through the contractual arrangements, namely
Tianjin Loong and its subsidiaries established from time to time
“ Cooperative Game ”
an online game developed by Chengdu Fantasy Mermaid Technology
Limited based on (i) the adaptation from the Dragon Raja Original Work\
;
and (ii) use of content from the Dragon Raja Animation, both granted t\
o
Chengdu Fantasy Mermaid Technology Limited by Tencent Penguin in
accordance with the Licensing Agreement, that can be run on mobile
operating systems on mobile terminal devices (including mobile phones, \
pad-like mobile devices other than mobile phones, and other mobile
devices and simulators) and the relevant updates, upgrades and fixes
“ Corporate Governance Code ”
the Corporate Governance Code as set out in Appendix C1 to the Listing
Rules
ARCHOSAUR GAMES INC. ANNUAL REPORT 2025
Definitions

03
“Cresc Chorus ”
Cresc Chorus Limited, a business company incorporated under the laws of \
the BVI with limited liability and one of the controlling Shareholders o\
f the
Company
“ Director(s) ”
the director(s) of the Company
“ Dragon Raja Animation ”
the animated series of the literary work Dragon Raja ( ²
Ä) series
“ Dragon Raja Original Work ”
the literary work Dragon Raja ( ²
Ä) series in the form of novel
“ Eligible Employee ”
any full-time employee (excluding any director) of the Company and any
subsidiary in accordance with the terms of the Share Option Scheme
“ Eligible Participant(s) ”
any Eligible Employee who may be invited by the Board to take up the
Options in accordance with the terms of the Share Option Scheme
“ Equity Pledge Agreement ”
the equity pledge agreement dated 10 March 2020 entered into among
Tianjin Loong, Beijing Fantasy Mermaid and the Registered Shareholders
“ Exclusive Agency and Operation
Agreement ” the exclusive agency and operation agreement dated 26 August 2022
entered into between the Group, Tencent Shanghai and Shenzhen Tencent
Tianyou with respect to the grant of an exclusive and non-transferable r\
ight
to advertise, promote and operate the Licensed Game in the Republic of
Korea to the Group by Tencent Shanghai and Shenzhen Tencent Tianyou
“ Exclusive Option Agreement ”
the exclusive option agreement dated 10 March 2020 entered into among
Tianjin Loong, Beijing Fantasy Mermaid and the Registered Shareholders
“ Exercise Price ”
the price per Share at which a Grantee may subscribe for the Shares on
the exercise of an Option in accordance with the terms of the Share Opti\
on
Scheme
“ Global Offering ”
the initial public offering of the Shares for subscription by the public\
and
the institutional, professional, corporate and other investors
“ Grantee ”
any Eligible Participant who accepts an Offer in accordance with the ter\
ms
of the Share Option Scheme or (where the context so permits) his perso\
nal
representative(s) who is/are entitled to any Option in consequence of \
the
death of the original Grantee
“ Group ”
, “
we ”
or “
us ”
the Company and all of its subsidiaries and companies whose financial
results have been consolidated and accounted as the subsidiaries of our \
Company by virtue of certain contractual arrangements, or, where the
context so requires, in respect of the period before our Company became \
the holding company of our current subsidiaries, the business operated b\
y
such subsidiaries or their predecessors (as the case may be)
“ HK$ ”
Hong Kong dollars, the lawful currency of Hong Kong
ANNUAL REPORT 2025 ARCHOSAUR GAMES INC.
Definitions

04
“Hong Kong ”
the Hong Kong Special Administrative Region of the PRC
“ Huai ’
an Loong ”
Huai’
an Loong Technology Co., Ltd.* (
Ä Y²Å¦Þ”®!), a company
established under the laws of the PRC with limited liability on 19 Augus\
t
2016, and by virtue of certain contractual arrangements, accounted for as
our subsidiary
“ IFRS ”
IFRS Accounting Standards
“ Licensed Game ”
the Korean version of a mobile game named
¾ðîk
“ Licensing Agreement ”
the licensing agreement dated 18 June 2022 entered into between the
Group and Tencent Penguin with respect to the grant of an exclusive and \
non-transferable right to (i) adapt and develop the Cooperative Game based
on the Dragon Raja Original Work; (ii) publish and operate the Cooperative
Game; and (iii) use the related content of the Dragon Raja Animation i\
n the
Cooperative Game
“ Linzhi Lichuang ”
Linzhi Lichuang Information Technology Co., Ltd.* (
z;ô¦¹¦”Þ
“®! ), a company established under the laws of the PRC with limited
liability on 26 October 2015 and one of the Registered Shareholders
“ Listing ”
listing of the Shares on the Main Board of the Stock Exchange
“ Listing Date ”
the date on which the Shares initially commenced their dealings on the
Stock Exchange, i.e. 15 July 2020
“ Listing Rules ”
the Rules Governing the Listing of Securities on the Stock Exchange (as\

amended from time to time)
“ LuckQ ”
LuckQ Technology Limited, a business company incorporated under the
laws of the BVI with limited liability and one of the controlling Shareh\
olders
of the Company
“ MMORPG ”
massively multiplayer online role-playing game, a genre of games that
combine role-playing games and massively multiplayer online games in
which a large number of players interact with one another within a virtu\
al
world
“ Model Code ”
the Model Code for Securities Transactions by Directors of Listed Issuer\
s
as set out in Appendix C3 to the Listing Rules
“ Ningbo Longren ”
Ningbo Long Ren Enterprise Management Partnership (Limited
Partnership)* ( ¹*² †8M#¥«†8 (Þ”¥« )), a limited partnership
enterprise established under the laws of the PRC on 14 December 2015
and one of the Registered Shareholders
ARCHOSAUR GAMES INC. ANNUAL REPORT 2025
Definitions

05
“Ningbo Qiance ”
Ningbo Meishan Bonded Port Qian Ce Enterprise Management Partnership
(Limited Partnership)* ( ¹*
à†­ü¥
w
†8M#¥«†8 (Þ”¥« )),
a limited partnership enterprise established under the laws of the PRC o\
n
28 November 2019 and one of the Registered Shareholders
“ Nomination Committee ”
the nomination committee of the Company
“ Offer ”
an offer for the grant of an Option in accordance with the terms of the
Share Option Scheme
“ Offer Date ”
the date, which must be a business day, on which an Offer is made to
an Eligible Participant in accordance with the terms of the Share Option\

Scheme
“ Option ”
an option to subscribe for the Shares granted in accordance with the terms
of the Share Option Scheme
“ Option Period ”
in respect of any particular Option, a period (which may not be later t\
han
ten (10) years from the Offer Date of that Option) to be determined a\
nd
notified by the Directors to the Grantee thereof and, in the absence of
such determination, from the Offer Date of such Option to the earlier of\

(i) the date on which such Option lapses; and (ii) ten (10) years \
from the
Offer Date of that Option in accordance with the terms of the Share Opti\
on
Scheme
“ Participant ”
a Selected Person who accepts the offer of the grant of RSUs in
accordance with the terms of the RSU Scheme
“ Perfect World ”
Perfect World Co., Ltd.* (Õð¢p…Þ”®!), a company established in
the PRC, the shares of which are listed on the Shenzhen Stock Exchange
(stock code: 002624)
“ Perfect World Games ”
Perfect World Games Co., Ltd.* ( Õð¢7ÕÞ”ª‚®!), a company
established under the laws of the PRC with limited liability on 14 Novem\
ber
2008
“ Perfect World Group ”
Perfect World and/or its respective affiliate(s) and/or subsidiaries
“ Perfect World Holding ”
Perfect World Holding Group Co., Ltd.* ( Õð¢
›p
« Þ”®!), a
company established under the laws of the PRC with limited liability on \
14
August 2013
“ Perfect World Holding Group ”
Perfect World Holding and/or its respective affiliate(s)
“ Perfect World Interactive ”
Perfect World Interactive Entertainment Co., Ltd., an exempted company
incorporated under the laws of the Cayman Islands with limited liability\
and
holds 16.55% of the Shares as at 31 December 2025
ANNUAL REPORT 2025 ARCHOSAUR GAMES INC.
Definitions

06
“Player Relationship Period(s) ”
expected playing period(s) of paying players in the Group ’
s self-operated
online game
“ Powers of Attorney ”
the powers of attorney entered into among Beijing Fantasy Mermaid and
each of the Registered Shareholders dated 10 March 2020
“ PRC ”
the People’
s Republic of China
“ Pre-IPO RSU(s) ”
restricted share units granted in accordance with the terms of the Pre-I\
PO
RSU Scheme
“ Pre-IPO RSU Scheme ”
the restricted share unit scheme of the Company approved and adopted
by the Board on 1 April 2020, in its present form or as may be amended
from time to time
“ Prospectus ”
the prospectus of the Company dated 30 June 2020
“ Registered Shareholder(s) ”
Beijing Loong, Ningbo Longren, Ningbo Qiance, Perfect World Games and
Linzhi Lichuang, as the registered shareholders of Tianjin Loong
“ Remuneration Committee ”
the remuneration committee of the Company
“ Reporting Period ”
the year ended 31 December 2025
“ Risk Management Committee ”
the risk management committee of the Company
“ RMB ”
Renminbi, the lawful currency of the PRC
“ RSU Scheme ”
the restricted share unit scheme of the Company approved and adopted
by the Shareholders on 22 December 2022, in its present form or as may
be amended from time to time
“ RSU(s) ”
restricted share units granted pursuant to the RSU Scheme
“ Selected Person(s) ”
person(s) eligible to receive RSUs under the RSU Scheme, who are existing
employees, directors (whether executive or non-executive, but excluding\

independent non-executive directors) or officers of the Company or any \
member of the Group selected by the Board to be granted the RSUs under
the RSU Scheme at its discretion
“ SFO ”
the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong
Kong) (as amended from time to time)
“ Share Option Scheme ”
the share option scheme of the Company approved and adopted by the
Shareholders on 5 February 2021 and 22 December 2022, in its present
form or as may be amended from time to time
“ Share(s) ”
ordinary share(s) of US$0.00001 each in the issued share capital of th\
e
Company
“ Shareholder(s) ”
holder(s) of Shares
ARCHOSAUR GAMES INC. ANNUAL REPORT 2025
Definitions

07
“Shenzhen Tencent Tianyou ”
Shenzhen Tencent Tianyou Technology Company Limited* ( ­9\ ÃÂ7
Ŧޔ®! ), a company established in the PRC with limited liability
“ SLG ”
simulation games, a genre of games that attempt to emulate various
activities from real life in the game format
“ Stock Exchange ”
The Stock Exchange of Hong Kong Limited
“ subsidiary(ies) ”
for the purpose of this annual report, has the meaning ascribed to it
in the Companies Ordinance (Chapter 622 of the Laws of Hong Kong)
and includes companies whose financial results have been consolidated
and accounted as the subsidiaries of our Company by virtue of certain
contractual arrangements
“ substantial shareholder(s) ”
has the meaning ascribed to it in the Listing Rules
“ Tencent ”
Tencent Holdings Limited, an exempted company incorporated under the
laws of the Cayman Islands with limited liability, the shares of which a\
re
listed on the Main Board of the Stock Exchange (stock code: 700), and/or
its subsidiaries (as the case may be), and holds 17.19% of the Shares \
as
at 31 December 2025
“ Tencent Cloud ”
Tencent Cloud Computing (Beijing) Company Limited* ( \ Ã
®Q(/ )
Þ”ª‚®! ), a company established in the PRC and a wholly-owned
subsidiary of Tencent
“ Tencent Penguin ”
Shanghai Tencent Penguin Film Culture Communication Co., Ltd.* ( j \
ÆpB
VÖ·
ÂgÞ”®! ), a company established in the PRC and an
entity controlled by Tencent
“ Tencent Shanghai ”
Tencent Technology (Shanghai) Company Limited* ( \ ÃŦ(j )Þ”®
! ), a company established in the PRC with limited liability
“ Termination Date ”
close of business of the Company on the date which falls ten (10) year\
s
after the adoption date of the Share Option Scheme
“ Tianjin Loong ”
Tianjin Loong Technology Co., Ltd.* ( Y²(Âu )Ŧp…Þ”®! ), a
company established under the laws of the PRC with limited liability on \
15
April 2015, and by virtue of certain contractual arrangements, accounted\

for as our subsidiary
“ Unreal Engine 4 ”
and
“
Unreal Engine 5 ” game engines developed by Epic Games
“ US$ ”
United States dollars, the lawful currency of the United States
“ % ”
per cent
* For identification purpose only in this annual report
ANNUAL REPORT 2025 ARCHOSAUR GAMES INC.
Definitions

08
BOARD OF DIRECTORS
Executive Directors
Mr. Li Qing (Chairman and chief executive officer)
Mr. Bai Wei
Non-executive Directors
Mr. Li Nachuan
Mr. Lu Xiaoyin
Independent Non-executive Directors
Ms. Wang Jing
Mr. Zhu Lin
Mr. Ding Zhiping
AUDIT COMMITTEE
Mr. Zhu Lin (Chairman)
Ms. Wang Jing
Mr. Ding Zhiping
REMUNERATION COMMITTEE
Ms. Wang Jing (Chairperson)
Mr. Ding Zhiping
Mr. Li Qing
NOMINATION COMMITTEE
Mr. Li Qing (Chairman)
Ms. Wang Jing
Mr. Ding Zhiping
RISK MANAGEMENT COMMITTEE
Mr. Ding Zhiping (Chairman)
Mr. Li Qing
Mr. Zhu Lin
JOINT COMPANY SECRETARIES
Ms. Hao Lili
Ms. Zhang Xiao
AUTHORIZED REPRESENTATIVES
Mr. Li Qing
Ms. Zhang Xiao
AUDITOR
PricewaterhouseCoopers
Certified Public Accountants
and Registered Public Interest Entity Auditor
22/F, Prince ’
s Building
Central, Hong Kong
LEGAL ADVISER
As to Hong Kong laws
Eric Chow & Co. in Association with
Commerce & Finance Law Offices
3401, Alexandra House
18 Chater Road
Central, Hong Kong
REGISTERED OFFICE IN CAYMAN ISLANDS
Harneys Fiduciary (Cayman) Limited
4/F, Harbour Place
103 South Church Street, P.O. Box 10240
Grand Cayman KY1-1002
Cayman Islands
ARCHOSAUR GAMES INC. ANNUAL REPORT 2025
Corporate Information

09
HEADQUARTERS
4/F, No. 8 Hangxing Science Park
No. 11 HePingLi East Street
Dongcheng District, Beijing
PRC
PRINCIPAL PLACE OF BUSINESS IN
HONG KONG
40/F, Dah Sing Financial Centre
248 Queen ’
s Road East
Wanchai, Hong Kong
PRINCIPAL SHARE REGISTRAR AND
TRANSFER OFFICE
Harneys Fiduciary (Cayman) Limited
4/F, Harbour Place
103 South Church Street, P.O.Box 10240
Grand Cayman KY1-1002
Cayman Islands
HONG KONG SHARE REGISTRAR
Tricor Investor Services Limited
17/F, Far East Finance Centre
16 Harcourt Road
Hong Kong
PRINCIPAL BANKS
China Merchants Bank Co., Ltd.
Tianjin Wuqing Branch
Basement Shop No. 695, Jiafeng Building
Yongyang West Road
Yangcun Town
Wuqing District, Tianjin
PRC
China Everbright Bank Co., Ltd.
Beijing Deshengmen Branch
11th Floor, Beiguang Plaza
23 Huangsi Street
Xicheng District, Beijing
PRC
Industrial Bank Co., Ltd.
Beijing Haidian Branch
1st Floor, Beijing Aerospace CPMIEC Building
Haidian District, Beijing
PRC
Standard Chartered Bank (Hong Kong) Limited
3/F Standard Chartered Bank Building
4-4A Des Voeux Road Central
Hong Kong
COMPANY WEBSITE
www.zulong.com
STOCK CODE
9990
ANNUAL REPORT 2025 ARCHOSAUR GAMES INC.
Corporate Information

10
A summary of the results and of the assets and liabilities of the Company and its subsidiaries for the last five
financial years, is set out below.
For the year ended 31 December
2025
(RMB million) 2024
(RMB million) 2023
(RMB million) 2022
(RMB million) 2021
(RMB million)

Revenue 1,304.41,141.1 908.5584.1920.8
Cost of revenue (380.7)(315.1)(258.1)(160.5)(207.3)
Gross profit 923.7826.0650.4423.6713.5
Research and development expenses (533.4)(532.1)(582.2)(746.3)(705.6)
Selling and marketing expenses (457.7)(565.0)(274.5)(280.6)(247.2)
Administrative expenses (93.0)(100.1) (105.1)(108.2) (97.9)
Net impairment reversal/(losses) on financial assets 2.9(0.8)(15.3) (0.2)2.9
Other income 7.68.17.63.96.7
Other gains/(losses), net 58.822.5(37.9) (63.6) 38.2
Operating loss (91.1)(341.4) (357.0)(771.4)(289.4)
Finance income 45.053.151.623.522.1
Finance costs (3.0)(2.4)(4.3)(6.4)(10.5)
Finance income, net 42.050.747.317.111.6
Share of results of investments accounted for using the equity
method 1.63.6(18.1) (13.5)(10.0)
Loss before income tax (47.5)(287.1) (327.8)(767.8)(287.8)
Income tax credit/(expense) 10.8(0.1)12.2 (0.7)(15.5)
Loss for the year (36.7)(287.2) (315.6)(768.5)(303.3)
Non-IFRS measure:
Adjusted net loss (1) (31.9) (270.0) (282.9)(731.9)(237.7)
Note:
(1) We define adjusted net loss as loss for the year adjusted by the add bac\
k of share-based compensation expenses. We eliminate the impact
of the item that our management does not consider to be indicative of ou\
r operating performance as it is non-cash in nature.
As at 31 December
2025
(RMB million) 2024
(RMB million) 2023
(RMB million) 2022
(RMB million) 2021
(RMB million)

Assets, Liabilities and Equity
Total assets 2,667.12,598.42,743.62,953.33,518.1
Total liabilities 654.9493.1409.7363.1351.7
Total equity 2,012.22,105.32,333.92,590.23,166.4
ARCHOSAUR GAMES INC. ANNUAL REPORT 2025
Financial Summary

11
Dear Shareholders,
On behalf of the Board, I am pleased to present the annual report of the Group for the year ended 31 December
2025.
WHOLE-YEAR REVIEW AND OUTLOOK
Archosaur Games is a leading mobile gaming company in China with more th\
an twenty years of research and
development experience. We hold the vision of being a top-class gaming c\
ompany in the world, serving global
game players by continuously creating industry-leading games of various \
genres with excellent online entertainment
experience. As at 31 December 2025, we have launched 24 mobile games wit\
h multiple regional versions available
in more than 170 regional markets in 14 languages. Our product matrix in\
cludes MMORPGs, female-oriented,
strategy card games, idle RPG, SLGs and other genres.
In 2025, Archosaur Games refined its products through sustained dedicati\
on, earning players ’
enduring recognition
and long-term support through consistently high-quality updates. Guided by a pioneering spirit, the Company
achieved outstanding results in the female-oriented and strategy card game segments. Over the preceding
period, the Company steadily improved its business performance through o\
ptimised product strategies, refined
team structures and the continuous enhancement of its publishing capabil\
ities, thereby accumulating substantial
momentum. Looking ahead, the Company will deepen its business footprint,\
further consolidate its leading industry
position, and strive to establish a higher industry benchmark. This comm\
itment aims to achieve comprehensive
business breakthroughs and propel the Company towards a new phase of lea\
pfrog growth.
IMPLEMENTING THE STRATEGY OF QUALITY PRODUCTS AND ENHANCING GLOBAL
PUBLISHING
Archosaur Games adheres to the strategy of high-quality products, dedicated to building a product system with
long-term operational value. From Life Makeover ( ø ꥘¤) and Dragon Raja: Cassell Gate ( ²
Ä:
æ’˜˜ )
launched in recent years, to Dragon Raja ( ²
ÄÌ) and Fantasy Zhuxian ( ¬Ì) that have entered a stable
operational phase, all of these games have demonstrated the Company ’
s solid achievements in long-term operation
with their sound development performance and sustained user stickiness. We consistently launch high-quality
version updates on a regular basis, continuously delivering fresh gamepl\
ay and exciting experiences to players. In
addition, the Company ’
s products deepen cross-industry integration and achieved cultural break\
throughs, elevating
its IP influence to new heights through diverse collaborations: in 2025,\
Life Makeover ( ø ꥘¤) partnered with
Gugong Gongyuan ( B——ù), Happy Valley, Empresses in the Palace ( 1+
‘), Cardcaptor Sakura ( ­Ç~
v‘ ) and others, and Dragon Raja: Cassell Gate ( ²
Ä:
æ’˜˜ ) collaborated with Want Want, Dunhuang, Xi ’
an
Drum Tower ( Ä|}), Lawson and others to carry out a variety of co-branded activities. W\
hile strengthening the
value of the games ’
own IPs, the Company has established a well-structured, diversified cro\
ss-industry cooperation
matrix, further expanding the reach of its game IPs to a broader audienc\
e. In our pursuit of a high-quality route,
we also leverage games to promote Chinese culture globally. Relying on L\
ife Makeover ( ø ꥘¤), we advance
the digital expression of traditional culture and ICH (intangible cultu\
ral heritage), iterating through high-precision
artwork and engine technology to deepen the quality presentation of cult\
ural elements in game content. In 2025,
the three collaborations with Gugong Gongyuan ( B——ù) brought traditional culture from the display cases in
museums to the fingertips of global players through various content form\
s such as costumes, props and home
spaces. Additionally, we partnered with female inheritors of ICH from va\
rious ethnic groups to delve into the cultural
connotations and humanistic stories of ICH, winning the “
Outstanding Contribution Award for Game ×
Intangible
Cultural Heritage Cross-Border Collaboration ”
at the World Intangible Cultural Heritage Inheritors Conference,
promoting the shift of traditional culture from static display to engaging experience. In terms of game IP and art
ANNUAL REPORT 2025 ARCHOSAUR GAMES INC.
Chairman’s Statement

12
design selection, we are more focused on an international direction, aim\
ing to align with the preferences and needs
of global players, making the projects more suitable for global release. Based on the mature self-publishment
layout already implemented in most overseas regions, we will focus on re\
fining the efficiency of self-publishment,
continuously optimising the cost structure of distribution, and further enhancing the overall cost-effectiveness of
publishing.
KEEPING PACE WITH CUTTING-EDGE TECHNOLOGY AND ENHANCING THE VITALITY
OF GAMES
We take technological innovation as the core engine driving the Company ’
s growth. As a pioneer in the gaming
industry, we have explored numerous cutting-edge attempts in mobile game\
development using Unreal Engine
5 technology and forged in-depth technical partnerships with renowned tech companies. In terms of product
compatibility, responding to the trend of user hardware ecosystem diversification and the goal of covering a
broader user base, we have achieved breakthrough compatibility with the \
HarmonyOS system: Life Makeover ( ø
꥘¤ ) became the first large-scale female-oriented mobile game powered by U\
nreal Engine to launch on the
HarmonyOS platform, and Dragon Raja: Cassell Gate ( ²
Ä:
æ’˜˜ ) was also developed with Unreal Engine and
fully adapted to the HarmonyOS system. In ongoing projects using Unreal \
Engine 5, building upon our expertise in
applying new technologies such as Metahuman and MassAI to product develo\
pment, we have further implemented
deep customization and rendering enhancements. In the AI (Artificial In\
telligence) era, we leverage AI tools to assist
development, further enhancing R&D efficiency. At the same time, we have\
implemented intelligent NPCs (Non-
Player Characters) and the integrated creation of AIGC (Artificial Int\
elligence Generated Content) with UGC (User
Generated Content) in our games: players can interact and converse in t\
he game with smarter NPCs with the ability
for coherent interaction such as Litchi Kitten ( Ÿ Í), and can also use AI drawing features for assisted creation
in the Image Box (
®¡­e), experiencing the fun of zero-base drawing brought by AI feature upgr\
ades. Through
the clever use of new technologies and tools in game development, we hav\
e not only improved game development
productivity, but also made the game world more dynamic.
EMPOWERING THE INTEGRATION OF R&D AND OPERATION THROUGH
ORGANIZATIONAL REVITALIZATION, AND EARNESTLY PRACTICING AND FULFILLING
SOCIAL RESPONSIBILITY
The integration of R&D and operation is the core strategy steadfastly pu\
rsued by Archosaur Games. In recent
years, the Company has predominantly launched its products through self-\
development and self-publishment. To
further advance such integration, the Company completed a systematic opt\
imization and strategic upgrade of its
organizational structure, strengthening a project-centered integrated co\
ordination mechanism to achieve in-depth
integration and synchronized collaboration between R&D and publishing fu\
nctions. This structural transformation
aimed to ensure efficient coordination and rapid response for key projec\
ts throughout their long-term operation:
R&D iterated precisely based on market feedback, while publishing closel\
y aligned with the creative core of the
products, delivering more complete value proposition to players. VVANNA \
Studio, which developed Life Makeover
( ø ꥘¤ ), the phenomenal female-oriented hit game, has recently been upgraded \
to an independent division and
evolved into a larger Business Unit (BU), thereby ensuring game production in the female-oriented segment through
clearer business authority and responsibility as well as a more comprehe\
nsive resource support system. At the same
time, the Company decided to establish a dedicated engine technology sup\
port department to strengthen technical
support capabilities for game development, concentrating superior resour\
ces to safeguard its products. In addition
to continuously enhancing internal structural optimization and consolida\
ting its operational strength, the Company
also continued to fulfill its corporate social responsibility externally\
in 2025. In April 2025, Archosaur Games once
again visited Chaoyang Primary School in the Honghe Hani and Yi Autonomo\
us Prefecture of Yunnan Province,
donating sports equipment to the school and holding creative art and int\
ernet classes. In September, we went to
ARCHOSAUR GAMES INC. ANNUAL REPORT 2025
Chairman’s Statement

13
Xingfu Primary School in Beichuan Qiang Autonomous County, donating char\
itable supplies and providing project
support, including the “
Honghu Dream Program ”
( ¿q¬ ) Scholarship, construction of a technology corridor, air
conditioners for multiple classrooms and various sports goods. Since 202\
1, Archosaur Games ’
“
Honghu Dream
Program ”
( ¿q¬ ) public welfare program has spanned five years. We have always been co\
mmitted to improving
the learning and living conditions of students in remote rural areas and\
continuously injecting energy into rural
education. Using the “
Dragon Walk for the Community ”
( ²® B ) as a link, we precisely match the actual needs of
rural schools every year, constantly expanding the public welfare landsc\
ape, allowing the ideals of “
Honghu Dream
Program ”
( ¿q¬ ) to gradually become a reality, and contributing to the development of\
rural education. Through
our continuous efforts in the field of public welfare, we were selected \
as an ESG Excellence Practice Case by
Economic Weekly (  ̾Âh‘) in 2025.
PROSPECTS
Looking ahead to 2026, the Company will focus on its advantageous sector\
s, concentrating resources on products
that it is proficient in and that have a favorable research-to-investmen\
t ratio, while improving self-publishment
efficiency alongside maintaining leading technological advantages. In the entire product development process,
we will continue to use cutting-edge technology as the foundation for R&\
D, deepen cross-platform technological
breakthroughs, consolidate our leading technical advantage in the indust\
ry. We will simultaneously establish more
intensive and scientific assessment points, set strict and clear control\
standards for project initiation, R&D and
launch, and resolutely implement corresponding strategies. With a pruden\
t and scientific project initiation strategy
and a disciplined, selective team expansion pace, we aim to strengthen t\
he foundation of long-term and stable
development amid a market characterized by uncertainties. We believe tha\
t by continuing to adhere to our core
strategy of quality-focused, multi-category, integration of R&D and oper\
ation and globalization, Archosaur Games is
poised to achieve a new surge following market stabilization and recover\
y.
APPRECIATION
The Board would like to take this opportunity to express our heartfelt gratitude to all the management and
employees for their dedicated efforts in 2025. We would also like to exp\
ress our gratitude to investors and people
from all sectors for their long-term trust and support. We will continue\
to focus on improving the Company ’
s intrinsic
value and the efficiency of the resources utilization, thereby creating \
value steadily and efficiently for users, investors
and the overall gaming industry.
Li Qing
Chairman of the Board
Archosaur Games Inc.
ANNUAL REPORT 2025 ARCHOSAUR GAMES INC.
Chairman’s Statement

14
For the year ended 31 December2025
(RMB million) 2024
(RMB million) Change
%
Revenue 1,304.41,141.1 14.3%
Cost of revenue (380.7)(315.1)20.8%
Gross profit 923.7826.011.8%
Research and development expenses (533.4)(532.1) 0.2%
Selling and marketing expenses (457.7)(565.0)(19.0%)
Administrative expenses (93.0)(100.1) (7.1%)
Net impairment reversal/(losses) on financial assets 2.9(0.8)(462.5%)
Other income 7.68.1(6.2%)
Other gains, net 58.822.5161.3%
Operating loss (91.1)(341.4) (73.3%)
Finance income 45.053.1(15.3%)
Finance costs (3.0)(2.4)25.0%
Finance income, net 42.050.7(17.2%)
Share of results of investments accounted for using the equity method 1.63.6(55.6%)
Loss before income tax (47.5)(287.1) (83.5%)
Income tax credit/(expense) 10.8(0.1)(10,900.0%)
Loss for the year (36.7)(287.2) (87.2%)
Non-IFRS measure:
Adjusted net loss
(1) (31.9) (270.0) (88.2%)
Note:
(1) We define adjusted net loss as loss for the year adjusted by the add bac\
k of share-based compensation expenses. We eliminate the impact
of the item that our management does not consider to be indicative of ou\
r operating performance as it is non-cash in nature.
ARCHOSAUR GAMES INC. ANNUAL REPORT 2025
Financial Performance Highlights

15
BUSINESS REVIEW
Our mission is to be a top-class gaming company in the world, serving gl\
obal game players by continuously creating
industry-leading games of various genres with excellent online entertainment experience.
We are a pioneer in China ’
s mobile game industry focusing on developing high-quality mobile MMORPGs,
female-oriented games, strategy card games, idle RPGs, SLGs and other genres, and our strength in research and
development has been proven over and over again. We continue to provide superior game content to players and
have won excellent market reputation.
Refining products with sincerity and opening up the road with innovation\
. Archosaur Games adheres to the strategy
of high-quality products, achieving sustained user retention through hig\
h-quality and stable version iterations that
demonstrate robust long-term operational effectiveness. By extending the\
brand ’
s reach through cross-industry
collaborations, the Company continuously amplifies the influence of its \
game IPs, and uses games as a medium to
promote national culture, actively expanding its global publishing footp\
rint. Concurrently, the Company deepens its
research into Unreal Engine 5 technology, advancing the practical applic\
ation of intelligent NPCs and deepening
the integrated creation of AIGC and UGC to continuously imbue games with\
greater dynamic vitality. Furthermore,
we drive organizational renewal and upgrade internally, strengthening th\
e mechanism of integration of R&D and
operation. Externally, we steadfastly pursue practical action and fulfil\
corporate social responsibilities, translate the
vision of “
Honghu Dream Program ”
( ¿q¬ ) into tangible reality, contribute to rural educational development, a\
nd
steadily stride toward high-quality, deep-rooted long-term growth.
Our Existing Games
As at the date of this annual report, we had launched 24 mobile games wi\
th multiple regional versions in 14
languages available in more than 170 regional markets, among which (i) the global cumulative gross billings
generated by 2 mobile games had exceeded RMB4 billion; (ii) the global\
cumulative gross billings generated by a
mobile game had been between RMB3 billion to RMB4 billion; (iii) the g\
lobal cumulative gross billings generated by
4 mobile games had been between RMB1 billion to RMB3 billion; and (iv)\
the gross billings generated by 9 mobile
games had exceeded RMB100 million in the first month after they were lau\
nched in Chinese mainland.
ANNUAL REPORT 2025 ARCHOSAUR GAMES INC.
Management Discussion and Analysis

16
Since its launch in Chinese mainland in March 2023, Life Makeover (ø ꥘¤) has maintained robust vitality,
ranking among top 30 of the Bestsellers Games Chart for iOS over a hundr\
ed times and ranking among top
10 of the Bestsellers Games Chart for iOS for 15 times. It has also rece\
ived three nominations from the China
Audio-Video and Digital Publishing Association for its 2025 Top Ten Game\
s: Outstanding Game Development Team,
Outstanding Mobile Game and Outstanding Game Art Design. Life Makeover (\
ø ꥘¤), an ultra-free fashionable
female-oriented game which was developed by new generation of female production and planning team of the
Company, focused on the female player perspective as the main storyline,\
continuously adopted new technologies,
expanded new gameplay and upgraded new experiences, gradually evolving into a more comprehensive life
simulation game, providing long-term companionship to players while cons\
tantly delivering freshness. The global
official ambassador of the game, Litchi Kitten ( Ÿ Í), launched intelligent dialogue and fortune-telling features.
Concurrently, the game actively developed derivative products to expand its IP reach, fostering a healthy ecosystem
of virtual and reality interaction. With the launch of the Image Box (
®¡­e) feature, Life Makeover ( ø ꥘¤)
ingeniously integrated AIGC with DIY clothing design gameplay, enabling \
players to more easily create exclusive
clothing. By focusing on UGC and KOC (Key Opinion Consumer) community \
ecosystem development, the game
explored outstanding player creations, fueled creative enthusiasm, and l\
everaged content fission effects to expand
its audience reach. The game delved deeply into the essence of ICH behin\
d traditional crafts such as Sichuan
embroidery ( ó), Qiang embroidery ( i), Miao silver jewelry ( ô
ÄÕt) and white porcelain, establishing a
new mode for ICH preservation that combined technology, culture and emot\
ion, and allowing players to immerse
themselves in the beauty of ICH through virtual creative expression. In \
2025, the average DAU (Daily Active Users) of
the game in Chinese mainland surpassed the average DAU of 2024 and 2023,\
respectively, and the project profit in
2025 was also higher than that in 2024 and 2023. The game was launched in Republic of Korea in September 2025,
reaching the top of both the iOS and Google Play Free Games Charts within 24 hours, and ranking the second place
on the iPad Free Games Chart. Subsequently, the game topped the Free Cha\
rts of iOS and Google Play in Republic
of Korea for several consecutive days and received an Editor ’
s Choice ( Üh
ªe) from Apple.
ARCHOSAUR GAMES INC. ANNUAL REPORT 2025
Management Discussion and Analysis

17
Dragon Raja: Cassell Gate (²
Ä:
æ’˜˜ ) is a strategy card game adapted and developed based on the
Dragon Raja ( ²
Ä) series of novels and animations and powered by Unreal Engine 4. Over \
the past year, the game
completed and launched about forty versions in Chinese mainland. We insi\
sted on operating with two main lines
of numerical value and content to increase the iteration frequency of th\
e content line, and used season-based
gameplay and mini-games to meet players ’
need for freshness and experience. The joint activities with Want Want,\

Dunhuang, Lawson, Hsu Fu Chi ( ±E ¾) effectively boosted user vitality. After the game launched the first \
UR (Ultra
Rare) twin partner “
Chu Zihang ( 9 ˜) & Xia Mi ( €Î)”
in Chinese mainland in July 2025, the UR twin partners “
Lu
Mingfei ( )ü¢) & Lu Mingze ( )üã)”
were launched in February 2026, achieving the highest gross billings re\
cord
of gacha ( ë) in the game ’
s history and deeply loved and recognized by a wide range of players. Th\
e game ’
s
average MAU (Monthly Active Users) and average DAU in Chinese mainland\
in summer and the anniversary (i.e.,
from July to September 2025) saw significant growth compared to the fir\
st half of 2025, and the peak DAU during
the National Day holiday reached a new high. Subsequently, its MAU in Ch\
inese mainland surpassed this record in
February 2026, achieving significant milestones in multiple areas includ\
ing new user acquisition and monthly gross
billings. In April 2025, it was launched in China ’
s Hong Kong, Macao and Taiwan regions, topping the Top Free
Games Chart of the iOS App Store in the pre-download stage, then ranked \
fifth and sixth on the Bestsellers Games
Chart of the iOS App Store in Hong Kong, China and Taiwan, China, and to\
pped the Top Free Games Chart of the
iOS App Store in Taiwan, China for nine consecutive days during its half\
-year anniversary celebration. The game
was launched in Southeast Asia in August 2025. On the first day of its l\
aunch in Thailand, it entered the top three of
Top Free Games Chart of the iOS App Store and remained in the top five f\
or several consecutive days. The game
was launched officially in Republic of Korea on 5 March 2026, ranking th\
e fourth on the Korean Top Free Games
Chart of the iOS App Store for two consecutive days after its launch, an\
d has been in top 3 of Free Games Chart
of Google Play, and will be released in regions including Europe, Americ\
a and Japan in the future. As of the date of
this annual report, the cumulative number of global registered users of \
Dragon Raja: Cassell Gate ( ²
Ä:
æ’˜˜ )
has exceeded 10 million.
Two MMORPG masterpieces of the Company launched in 2016 and 2019 respect\
ively, Fantasy Zhuxian ( ¬Ì)
and Dragon Raja ( ²
ÄÌ), have maintained robust long-term operational performance. In 2025, Fantasy Zhuxian
( ¬Ì ) achieved new peak figures for both gross billings and new user acquis\
ition since 2022. Our development
team delivers game updates and iterations with exceptional efficiency, a\
nd will continue to focus efforts on ensuring
the long-term stability of the gaming experience and gross billings.
Classic games such as Sango Heroes: Under the Firmament ( ¿¡˜h), Love & Sword (

‹Ý), The Hegemony
( g
7Êõ
 : ¿q¡8 ), Loong Craft ( ¬²F¡) and World of Kings ( ¬î˜î 3D) have been relatively stable in
2025 and continue to contribute to the Group ’
s revenue. The Company continued to regularly invest and maintain,
and built a healthy long-term ecosystem of the games through events such\
as anniversary celebrations and version
updates, effectively maintaining the product lifecycle and user experien\
ce.
Our Game Pipeline
To build up a diversified game portfolio across a wide range of genres, \
6 game products are expected to be
launched globally over the period from 2026 to 2028, covering different \
genres of games.
As at the date of this annual report, the table below sets out certain i\
nformation regarding our new games which are
expected to be launched for the periods indicated, including title, genr\
e, IP source, development stage, expected
launch year and major markets.
ANNUAL REPORT 2025 ARCHOSAUR GAMES INC.
Management Discussion and Analysis

18
Title (1) Genre (1) IP source (1)
Development
stage as at
the date of this
annual report
(1)
Expected
launch
year
(1) Major
markets (1)(2)
2026
Dragon Raja: Cassell Gate
( ²
Ä :
æ’˜˜ )Strategy Card Game
Licensed IPGame Testing (3) 2026Republic of
Korea,
Japan
and other
parts of the
world
Project G Strategy Card GameLicensed IPGame Production 2026Worldwide
2027
Project K Female-oriented GameOriginal IPGame Production 2027Worldwide
Project Code: One Action Shooting GameOriginal IPGame Production 2027Worldwide
2028
Project J SLGOriginal IPGame Proposal 2028Worldwide
Project L Idle RPGLicensed IPGame Proposal 2028Worldwide
Notes:
(1) The game pipeline is for indicative purpose only as at the date of this annual report. The title, genre, IP source, development stage, expected
launch year, major markets and other information of each game in the pipeline may be subject to further changes according to their
respective development and pre-approval status.
(2) The major markets refer to target publishing markets. The games will be \
launched successively in different regions according to their respective publishing plans.
(3) Dragon Raja: Cassell Gate ( ²
Ä:
æ’˜˜ ) was launched in Republic of Korea on 5 March 2026.
The introduction of several new games in our game pipeline is provided a\
s follows:
Project G is a strategy card game adapted and developed from novel and a\
nimations of Lord of the Mysteries ( d
˜ô ). Lord of the Mysteries ( d˜ô) is set in a Western fantasy setting, with a large number of global au\
diences
and immense appeal. The Company will combine the IP ’
s unique worldview and distinctive character traits to
present players with highly charismatic card designs and rich derivative\
content.
Project K is a female-oriented game powered by Unreal Engine 5, dedicated to delivering an immersive fantasy
experience through advanced 3D visual technology. With the excellent vis\
ual technology of Unreal Engine and a
deep understanding of female players ’
preferences in game content and experience, we will meticulously develo\
p
this multi-platform female-oriented masterpiece.
During the Reporting Period, we recorded revenue of RMB1,304.4 million, \
representing an increase of 14.3% as
compared with RMB1,141.1 million for the same period in 2024, which was \
primarily attributable to the launch of
Dragon Raja: Cassell Gate ( ²
Ä:
æ’˜˜ ) and Immortal Skywalker ( 8,) in Chinese mainland in the second
half of 2024 and the first half of 2025 respectively, and Life Makeover ( ø ꥘¤) continued to deliver stable
performance during the year of 2025. In the future, with the expansion o\
f our product genres from MMORPGs,
female-oriented games, strategy cards games, SLGs to idle RPGs and other\
more diversified games, and with a
variety of styles and the continuous improvement of our organic model of integrating R&D and operation, the lifecycle
of our games is expected to be further extended, which will make a more stable and sustainable contribution to the
Group ’
s revenue.
ARCHOSAUR GAMES INC. ANNUAL REPORT 2025
Management Discussion and Analysis

19
FINANCIAL REVIEW
Revenue
The following table sets forth the breakdown of our revenue by business \
segment for the years indicated:For the year ended 31 December
2025 2024
(RMB
million) % of total
revenue (RMB
million) % of total
revenue
Development and licensing 127.19.7%105.5 9.2%
– Revenue share 93.67.2% 101.9 8.9%
– Non-refundable fixed licensing fees 33.52.5% 3.60.3%
Integrated game publishing and operation 1,176.490.2%1,035.0 90.7%
Others 0.90.1% 0.60.1%

Total 1,304.4100.0% 1,141.1100.0%
For the year ended 31 December 2025, our revenue from development and li\
censing business was RMB127.1
million, representing an increase of 20.5% from RMB105.5 million for the year ended 31 December 2024, and \
our
revenue from integrated game publishing and operation business was RMB1,\
176.4 million, representing an increase
of 13.7% from RMB1,035.0 million for the year ended 31 December 2024.
The following table sets forth the breakdown of our revenue by geography\
for the years indicated: For the year ended 31 December
2025 2024
(RMB
million) % of total
revenue (RMB
million) % of total
revenue
Chinese mainland 1,051.180.6%884.577.5%
Areas outside Chinese mainland 253.319.4% 256.622.5%
Total 1,304.4100.0% 1,141.1100.0%
For the year ended 31 December 2025, our revenue generated from Chinese \
mainland was RMB1,051.1 million,
representing an increase of 18.8%, from RMB884.5 million for the year en\
ded 31 December 2024, and our revenue
generated from areas outside Chinese mainland was RMB253.3 million, repr\
esenting a decrease of 1.3%, from
RMB256.6 million for the year ended 31 December 2024.
The increase in total revenue was mainly attributable to the launch of D\
ragon Raja: Cassell Gate ( ²
Ä:
æ’
˜˜ ) and Immortal Skywalker ( 8,) in Chinese mainland in the second half of 2024 and the first half of \
2025
respectively, and Life Makeover ( ø ꥘¤) continued to deliver stable performance during the year of 2025.
Meanwhile, due to the extension of the Player Relationship Period, more \
revenue compared with the year 2024 has
been deferred and will be recognized in future periods.
ANNUAL REPORT 2025 ARCHOSAUR GAMES INC.
Management Discussion and Analysis

20
COST OF REVENUE
The following table sets out a breakdown of our cost of revenue by natur\
e in absolute amounts and as percentages
of our total cost of revenue for the years indicated:
For the year ended 31 December
2025 2024
(RMB
million) % of total
cost of
revenue (RMB
million) % of total
cost of
revenue
Commissions charged by distribution channels
and payment channels 278.973.3% 239.275.9%
Commissions charged by IP holders 45.712.0% 28.49.0%
Bandwidth and servers custody fee 26.87.0% 26.18.3%
Employee benefit expenses 12.73.3% 12.43.9%
Depreciation and amortization charges 7.32.0% 4.01.3%
Others 9.32.4% 5.01.6%
Total 380.7100.0% 315.1100.0%
Our cost of revenue primarily consisted of (i) commissions charged by \
distribution channels and payment channels;
(ii) commissions charged by IP holders; and (iii) bandwidth and serv\
ers custody fee. Our cost of revenue increased
to RMB380.7 million for the year ended 31 December 2025 as compared with\
RMB315.1 million for the year ended
31 December 2024. The growing trend was basically in line with the increase in the revenue of the integrated game
publishing and operation business. Meanwhile, as Dragon Raja: Cassell Ga\
te ( ²
Ä:
æ’˜˜ ) is a licensed IP
game, commissions charged by IP holders increased significantly.
GROSS PROFIT AND GROSS PROFIT MARGIN
For the year ended 31 December 2025, the gross profit of the Group incre\
ased by 11.8% to RMB923.7 million as
compared with RMB826.0 million for the year ended 31 December 2024, which was primarily attributable to revenue
growth driven by the launch of Dragon Raja: Cassell Gate ( ²
Ä:
æ’˜˜ ) and Immortal Skywalker ( 8,) in
Chinese mainland in the second half of 2024 and the first half of 2025 r\
espectively, and Life Makeover ( ø ꥘¤)
continued to deliver stable performance during the year of 2025. The gro\
ss profit margin of the Group decreased
to 70.8% for the year ended 31 December 2025 from 72.4% for the year end\
ed 31 December 2024, primarily
attributable to higher commissions charged by IP holders resulting from \
increased revenue from Dragon Raja:
Cassell Gate ( ²
Ä:
æ’˜˜ ), a licensed IP game.
RESEARCH AND DEVELOPMENT EXPENSES
Our research and development expenses primarily consisted of (i) employee benefit expenses; (ii) outsourced
technical services; and (iii) depreciation and amortization charges. F\
or the year ended 31 December 2025