Jiu Zun Digital Interactive Entertainment Group Holdings Limited informed shareholders of the company (the ``Shareholders'') and potential investors that, the Group is expected to record a net loss (before Listing expenses) of not less than RMB15.0 million for the six months ended 30 June 2021 (``First Half 2021'') as compared to a net profit (before Listing expenses) of approximately RMB18.3 million for the six months ended 30 June 2020 (``First Half 2020''). The Board believed that the decline in the Group's results is primarily attributable to: the substantial decline of approximately 65 to 70% in revenue which was principally due to (I) insignificant revenue contribution attributable to the single-player mobile games for the First Half 2021 as compared to the First Half 2020; and (II) the substantial decline in revenue contribution attributable to two popular multi-player mobile games for the First Half 2021 as compared to the First Half 2020 of approximately 50 to 60% and more than 90%, respectively. Given that both the games were launched in the first half of the year ended 31 December 2019 and are approaching to the latter part of their game life cycle, it is considered that their revenue generation ability significantly decreased for the First Half 2021 as compared to the First Half 2020; the substantial increase of research and development expenses for the First Half 2021 as compared to the First Half 2020, which was principally due to the Group's development of new multi-player mobile games in order to cater for the gradual change of player preference from the single-player mobile games to multi-player mobile games, which is in line with business strategy of the Group as disclosed in the annual report of the company for the year ended 31 December 2020; and the substantial increase of selling and distribution expenses for the First Half 2021 as compared to the First Half 2020, which was principally due to the general increasing level of competition intensity in China's game industry resulting in the top-set places in the distribution platforms were mostly occupied by the games operated by major game operators.