Investment Summary

A well-established mobile game developer, publisher and operator with particular success in female-oriented games Friendtimes is a leading integrated and well-established mobile game developer, publisher and operator with particular success in female-oriented games. Since its inception in 2010, it has been strategically focusing on mobile games targeting female players in the PRC to capture the significant growth potential in both the mobile game industry and the femaleoriented game market. The company has developed multiple hit female-oriented games such as the Legend of Empress (熹妃傳), Royal Chaos (熹妃 Q 傳) and Rise of Queendom (宮廷計 手游), which are highly recognized by the female mobile gamers. The company develop, publish as well as operates games and such an integration of upstream and downstream services in the value chain of the mobile game industry has enhanced management efficiency, productivity and profitability of its operations.

Particular focus in ancient Chinese style female-oriented mobile game According to Frost and Sullivan, the Company ranked the third among all competitors in China in terms of revenue from female-oriented games, with a market share of 2.9%. . In ancient Chinese style female-oriented mobile game market, only few companies in the PRC have the capability of providing high-quality products and obtaining IP from IP holders. Thus, the market is relatively more concentrated. The company ranks first among all competitors in China in terms of revenue from ancient Chinese style female-oriented mobile game, with market share of 31.5%, way higher than the 2nd largest by nearly 30 pct.