(26 November 2020) Boyaa Interactive International Limited (“Boyaa Interactive” or the “Company”, together with its subsidiaries, the “Group”, stock code: 0434), a top-ranking developer and operator of online card and board games in China, has announced its unaudited consolidated results for the three and nine months ended 30 September 2020 (the “Reporting Period”) (the “Third Quarterly Results”).

Revenue reaching approximately RMB273.8 million for the nine months ended 30 September 2020, representing a year-on-year increase of approximately 11.5%

The Group recorded a revenue of approximately RMB273.8 million for the nine months ended 30 September 2020, representing a year-on-year increase of approximately 11.5% compared to the same period in 2019. Its gross profit amounted to approximately RMB191.8 million, representing a year-on-year increase of approximately 13.7% compared to the same period in 2019. Meanwhile, the Group recorded a revenue of approximately RMB85.4 million for the third quarter of 2020, representing a year-on-year increase of approximately 0.4% compared to the same period in 2019. The Group’s gross profit for the three months ended 30 September 2020 amounted to approximately RMB59.2 million, representing a year-on-year decrease of approximately 0.6% compared to the same period in 2019.

The year-on-year increase in revenue for the nine months ended 30 September 2020 was primarily attributable to the increased time spent and spending of users on the online gaming products of the Group in the first half of 2020 due to the preventive measures and social distancing policies imposed by the relevant government authorities to combat the COVID-19 pandemic (the “COVID-19 Pandemic”) in Mainland China, Hong Kong, Taiwan and overseas regions; and certain online operational activities held by the Group.

The Group recorded an unaudited non-IFRS adjusted loss of approximately RMB14.7 million for the nine months ended 30 September 2020, representing a year-on-year decrease of approximately 117.8% compared to the corresponding period of 2019; and it recorded an unaudited non-IFRS adjusted loss of approximately RMB1.1 million in the third quarter of 2020, representing a year-on-year decrease of approximately 105.8% compared to the third quarter of 2019. However, its unaudited non-IFRS adjusted net profit in the third quarter of 2020 recorded a quarter-to-quarter increase of approximately 95.7% compared to the second quarter of 2020.

The year-on-year decrease in unaudited non-IFRS adjusted net profit for the nine months ended 30 September 2020 and for the third quarter of 2020 was mainly attributable to the decrease in fair value of financial assets such as equity investment partnerships. Excluding the impact of non-operating one-off factors, the unaudited non-IFRS adjusted net profit for the nine months ended 30 September 2020 and for the third quarter of 2020 represented an increase of approximately 16.4% and approximately 29.2% compared to the corresponding period in 2019.

ARPPU growing in both web-based version of Texas Hold’em (the major game of the Group) and the mobile version of other card and board games

In terms of the operating data performance, the Group recorded a decrease in the number of paying players and users during the third quarter of 2020 as compared to the second quarter of 2020. In particular, the number of paying players decreased by 10.6% from approximately 0.29 million in the second quarter of 2020 to approximately 0.26 million in the third quarter of 2020. The number of DAUs decreased by 9.4% from approximately 2.2 million in the second quarter of 2020 to 2.0 million in the third quarter of 2020. The number of MAUs decreased by 11.9% from approximately 6.1 million in the second quarter of 2020 to approximately 5.4 million in the third quarter of 2020.

The number of paying players and users in the third quarter of 2020 experienced a decrease as compared to the second quarter, mainly due to the relief of COVID-19 Pandemic and gradual recovery of various industries in the Mainland China. However, the ARPPU grew in both web-based version of Texas Hold’em and the mobile version of other card and board games.

Making more efforts to further expand the overseas market as well as other card and board games business, and sparing no effort to build the brand for match series

Moving forward, as stated by the Company’s management, the Group will continue to conduct more intensive market surveys, launch innovative game rules, explore various operation modes for card and board games in domestic and foreign market, improve the experience of game players, continue to strengthen product refinement and operation diversification, ramp up the quality of its games in an all-rounded manner, and spare no effort to build the brand for online and offline match series. On top of consolidating its existing market, more efforts will be made to further expand the overseas market as well as other card and board games business, so as to offset the impact of risks arising from policy. The Group will strictly comply with various laws and regulations of the PRC, develop high-quality puzzle games and matches, and continue with its journey to forge a century-old brand for chess and card games.