Linekong Interactive Group Co., Ltd. - Annual Report 2025

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ANNUAL REPORT

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(Incorporated in the Cayman Islands with limited liability)

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE “STOCK EXCHANGE”)

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Main Board of the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.

This report, for which the directors (the “ Directors ”) of Linekong Interactive Group Co., Ltd. (“ Linekong Interactive ” or the “ Company ” or “ we ”) collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the “ GEM Listing Rules ”) for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief, the information contained in this report is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this report misleading.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

CORPORATE INFORMATION	3
CHAIRMAN’S STATEMENT	5
BIOGRAPHICAL DETAILS OF THE DIRECTORS AND	7
SENIOR MANAGEMENT
MANAGEMENT DISCUSSION AND ANALYSIS	9
CORPORATE GOVERNANCE REPORT	23
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT	38
DIRECTORS’ REPORT	67
INDEPENDENT AUDITOR’S REPORT	102
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND	107
OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	108
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	110
CONSOLIDATED STATEMENT OF CASH FLOWS	112
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	113
SUMMARY OF FINANCIAL INFORMATION	180

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Information

BOARD OF DIRECTORS

COMPANY SECRETARY

Executive Directors

Mr. Wang Feng (Chairman and Chief Executive Officer) Mr. Wang Jin (also known as Yan Yusong) (Vice President)

Ms. Chan Yin Wah (FCG, HKFCG, FCCA) (resigned on March 27, 2026) Ms. Cong Lin ( FCG, HKFCG ) (appointed on March 27, 2026)

AUTHORISED REPRESENTATIVES

Independent Non-executive Directors

Mr. Zhang Xiangdong Ms. Wu Yueqin Mr. Fu Frank Kan

Mr. Wang Feng Ms. Chan Yin Wah (resigned on March 27, 2026) Ms. Cong Lin (appointed on March 27, 2026)

COMPLIANCE OFFICER

BOARD COMMITTEES

Mr. Wang Feng

Audit Committee

REGISTERED OFFICE

Ms. Wu Yueqin (Chairman) Mr. Zhang Xiangdong Mr. Fu Frank Kan

Remuneration Committee

Mr. Zhang Xiangdong (Chairman) Mr. Wang Feng Ms. Wu Yueqin Mr. Fu Frank Kan

Floor 4, Willow House Cricket Square P.O. Box 2804 Grand Cayman KY1-1112 Cayman Islands

HEADQUARTERS AND PRINCIPAL

PLACE OF BUSINESS IN THE PEOPLE’S REPUBLIC OF CHINA (THE ” PRC ” OR ” CHINA ”)

Nomination Committee

Mr. Wang Feng (Chairman) Mr. Zhang Xiangdong Ms. Wu Yueqin Mr. Fu Frank Kan

4/F, Building A3 Vanke Time Square No. 9 Wangjing Street Chaoyang District Beijing, the PRC

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

40th Floor, Dah Sing Financial Centre No. 248 Queen’s Road East Wanchai Hong Kong

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Information

AUDITORS

GEM STOCK CODE

Baker Tilly Hong Kong Limited Certified Public Accountants Level 8, K11 ATELIER King’s Road 728 King’s Road Quarry Bay Hong Kong

8267

COMPANY WEBSITE

www.linekong.com

LEGAL ADVISORS

AS TO HONG KONG LAWS

King & Wood 13/F, Gloucester Tower The Landmark 15 Queen’s Road Central Central Hong Kong

CAYMAN ISLANDS PRINCIPAL SHARE

REGISTRAR AND TRANSFER AGENT

Offshore Incorporations (Cayman) Limited Floor 4, Willow House Cricket Square P.O. Box 2804 Grand Cayman KY1-1112 Cayman Islands

HONG KONG SHARE REGISTRAR

Computershare Hong Kong Investor Services Limited Shops 1712–1716, 17th Floor Hopewell Centre 183 Queen’s Road East Wanchai Hong Kong

PRINCIPAL BANKS

China Citic Bank, Wangjing, Beijing Sub-branch China Merchants Bank Co., Ltd. Beijing Datun Road Sub-branch Bank of Communications, Wangjing Sub-Branch Agricultural Bank of China Limited, Khorgos City Branch CTBC Bank, Hong Kong Branch

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Chairman’s Statement

On behalf of the board of directors (the “ Board ”) of Linekong Interactive Group Co., Ltd., I am pleased to present to our valued shareholders and investors the business review and development prospects of the Company and its subsidiaries (collectively, the “ Group ”) for the financial year ended December 31, 2025 (the “ Reporting Period ”).

In 2025, the global macroeconomic environment and the technology industry landscape continued to evolve, leading to the coexistence of market volatility alongside structural opportunities. The Group upheld its strategic approach through focusing on the Web3 business as its core of development, while developing its two traditionally strong segments of game and film businesses at a steady pace. The Group has also proactively explored and allocated resources to the field of artificial intelligence (AI) and robotics applications, with all segments maintaining steady progress, thereby laying a solid foundation for sustainable growth of the Group.

2025 Business Review

(I) Traditional business operations remain robust, strengthening the foundations of our business

As the Group’s core pan-entertainment businesses, the game and film businesses both maintained stable operations during the Reporting Period, providing the Group with a steady source of cash flow.

With regard to game business, the Group operated a total of 14 game products. Through refined operations, iterative updates and maintaining user stickiness, impressive results of localized operations in key overseas markets, such as Korea, could be seen. The Group deeply integrated AI technology into the entire research and development and operation process, achieving efficiency gains and cost reductions in sections, such as character modeling, scene generation and personalized recommendations, thereby driving the digital and intelligent upgrades of its business.

With regard to film business, Linekong Pictures adopted a core strategy of “balancing quality and growth” in producing the standout drama “陷入我們的熱戀”, which has become a benchmark project for returns on investment within the industry and has enabled us to accumulate whole-process operational experience. During the Reporting Period, our key pipeline projects, such as “燃燒的四季”, “殺妻疑雲” and “破春光”, progressed in an orderly manner, whilst the joint production project, namely “Ancient Music Records (古樂風華錄)”, advanced smoothly. Meanwhile, the Group also initiated exploratory applications of AIGC technology within the film sector and completed upgrading the team’s whole-process operational capabilities.

(II) Implementation of Web3 business strategy of dual breakthroughs in crypto assets and ecosystem development

Since establishing Web3 as our strategic priority in 2024, the Group has continued to leverage Hong Kong’s favorable policies to advance its compliance framework. In July 2025, the Group established the LK Crypto division to oversee all Web3 and crypto asset related businesses, whilst actively exploring innovative areas, such as Real-world Asset on-chain (RWA) and stablecoins.

With regard to investments in crypto assets, the Group adopts a flexible and prudent strategy to manage market volatility. As of the end of the Reporting Period, the Group (excluding any non-controlling company) held a total of 118.5716 units of Bitcoin, 570.6322 units of Ethereum and 7,691.705 units of Solana. In 2025, realized gains amounted to US$3.7 million, contributing significantly to the growth of the Group’s assets and the improvement in its profitability.

With regard to its ecosystem strategy, the Group’s Element platform has undergone a strategic upgrade, transforming from a singlepurpose NFT trading platform into a diversified digital asset trading platform, with GMV, user base and profitability continuing to grow.

(III) Taking a forward-looking approach to new emerging sectors, while paying attention to AI and robotics applications

The Group has been closely monitoring the opportunities for industrial upgrading associated with the sectors of AI and robotics applications, and has actively explored and strategically positioned itself in these areas to capitalize on the benefits of the global technological revolution.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Chairman’s Statement

2026 Business Prospects

2026 will mark the first year of large-scale global AI applications, and robotics applications will also advance to a new stage, the Group will therefore continue to attach full attention to opportunities of development in such areas and focus on its strategic objectives to steadily promote the development of all business segments.

In terms of game business, we will deepen the refined operation of our existing product portfolio, amplify efforts in new product development and overseas market expansion, and continue to deepen the application of AI technology to strengthen our core competitiveness.

In terms of film business, we will facilitate the filming of our key projects, such as “燃燒的四季”, “殺妻疑雲”, “破春光”, to commence on schedule. We will also advance the official launch of “Ancient Music Records (古樂風華錄)” to accelerate the application of AIGC technology in content development, thereby creating a premium benchmark for the industry.

The Web3 business will continue to optimize the allocation of crypto assets, driving upgrades of Element platform ecosystem and allowing exploration of innovative business models within the regulatory framework.

In the future, the Group will strengthen synergies across its various business segments, continue to increase investment in technological research and development, content creation and market expansion, as well as constantly enhancing its core competitiveness, to create greater value for shareholders and achieve the Group’s long-term sustainable development.

Wang Feng

Chairman and Chief Executive Officer

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Biographical Details of the Directors and Senior Management

Biographical details of the Directors of the Company and the senior management of the Group are set out as follows:

EXECUTIVE DIRECTORS

Mr. Wang Feng , aged 57, is the chairman of the Board and an executive Director and, was also appointed as the chief executive officer and compliance officer of the Company on February 26, 2023. He is the chairman of the nomination committee of the Company (the “ Nomination Committee ”) and a member of the remuneration committee of the Company (the “ Remuneration Committee ”). Mr. Wang is the founder of the Group and was appointed as a Director on May 24, 2007. Prior to joining the Group, Mr. Wang worked at Beijing Kingsoft Software Co., Ltd. (“ Beijing Kingsoft ”), a subsidiary of Kingsoft Corporation Limited (listed on the Stock Exchange, stock code: 3888), in various senior positions successively as product manager, vice president of the anti-virus software department, and vice president in charge of digital entertainment business from 1997 to 2007, and served as the senior vice president in charge of digital entertainment and sales and marketing from January 2006 to March 2007. Mr. Wang has over 25 years of experience in the Internet industry and was awarded several honours, including ”Individual Award for Outstanding Contributions to 20 Years of Development in Zhongguancun” granted by Beijing municipal government in 2009, ”New Elite in China Game Industry” in 2007 and ”the Top-Ten Most Influential People in China Game Industry” granted by China Game Industry Annual Conference in 2008, 2009 and 2011. Mr. Wang was also awarded ”Outstanding Entrepreneur” in both 2011 and 2013 by China Game Industry Annual Conference. Mr. Wang graduated from Peking University with a master of business administration degree in June 2005. Mr. Wang is also the director of Wangfeng Management Limited, a company which has an interest in the shares of the Company which would fall to be disclosed to the Company under the Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance.

Mr. Wang Jin (also known as Yan Yusong), aged 52, has been an executive Director since May 11, 2018. He is also the vice president of the Group, as well as the chief executive officer of the film business of the Group (“ Linekong Pictures ”). Mr. Wang has over 25 years of experience in the film and television entertainment industry. He worked at Hong Kong Azio TV as a director from 2000 to 2003, at Shanghai Dragon TV as a producer from 2003 to 2007, at Starlight International Media Co., Ltd. as the vice president from 2007 to 2012, and at TVB China Company as the general manager of Beijing branch office from 2012 to 2015. He joined the Group in January 2016 as the vice president of the Group and the president of Linekong Pictures, and has been the chief executive officer of Linekong Pictures since April 2018 and is primarily responsible for the day-to-day management of the business of Linekong Pictures. Mr. Wang graduated from Chengdu University, majoring in business arts, after which he did further studies at the Shanghai Theatre Academy with directing as his major.

INDEPENDENT NON-EXECUTIVE DIRECTORS

Mr. Zhang Xiangdong , aged 49, has been an independent non-executive Director, chairman of the Remuneration Committee and a member of the audit committee of the Company (the “ Audit Committee ”) and the Nomination Committee since April 24, 2014. Mr. Zhang has over 20 years of experience in the internet industry. In July 2003, Mr. Zhang founded Sungy Mobile Limited, a company formerly listed on Nasdaq Stock Market (Nasdaq: GOMO), and served as a director and its president from 2003 to October 2014. In October 2014, Mr. Zhang resigned his positions as director and president. In November 2014, he officially started to pursue his entrepreneurial endeavours in cycling business. Mr. Zhang joined 700Bike as the chief executive officer from November 2014 to 2021, devoting himself to promote the development of city bike and cycling culture in China. Mr. Zhang has served as the chief representative of JOYWAY LONDON CO LTD since August 2022. Mr. Zhang has served as the non-executive director of Distinct Healthcare Holdings Limited (listed on the Stock Exchange, stock code: 2677) since February 2014. Mr. Zhang obtained a bachelor’s degree in information management from Peking University in July 1999.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Biographical Details of the Directors and Senior Management

Ms. Wu Yueqin , aged 49, has been an independent non-executive Director, chairman of the Audit Committee and a member of the Remuneration Committee and the Nomination Committee since May 29, 2018. Ms. Wu has over 20 years of financial management experience. From June 2002 to December 2004, Ms. Wu was the accounting supervisor at Zhongchu Logistics Online Co., Ltd. From December 2004 to June 2006, she was a financial manager at Kingsoft Corporation Ltd. From July 2006 to January 2011, she was the financial head of Kingsoft Corporation Ltd. From January 2011 to January 2012, she was Kingsoft Corporation Ltd.’s assistant president. From January 2012 to June 2015, she was the vice president of finance at Kingsoft Corporation Ltd. From July 2015 to August 2020, she was the vice president of finance at Cheetah Mobile Inc.. She was the co-founder of Beijing Xiaoyaozhi Technology Company Limited (北京逍遙志科技有限公司) from March 2021 to December 2022. She was the chief financial officer of Think Beyond Pte. Ltd. from December 2022 to June 2024. She has been an independent investor since July 2024. Ms. Wu graduated from Xi’an Jiaotong University with a bachelor’s degree in accounting in July 1999 and she graduated from Xi’an Jiaotong University with a master’s degree in management science and engineering in July 2002. Ms. Wu is qualified as a Chinese Certified Public Accountant and has passed the Hong Kong Institute of Certified Public Accountants qualification exams.

Mr. Fu Frank Kan , aged 56, has been an independent non-executive Director and a member of the Audit Committee, the Remuneration Committee and the Nomination Committee since February 26, 2023. Mr. Fu has over 31 years of experience in business development in the technology industry. From 1997 to 1998, Mr. Fu was a product marketing and global channel development manager of Fujitsu Electronics America, Inc.. From 1998 to 2000, Mr. Fu was a director of business development and product marketing of Samsung Telecommunications America, LLC. From 2000 to 2002, Mr. Fu was a director of business development of AboveNet Inc., (formerly listed on the New York Stock Exchange, stock code: ABVT). From October 2002 to October 2004, Mr. Fu was a vice president of sales and marketing at Innopath Software, Inc.. From October 2004 to March 2007, Mr. Fu was a vice president and general manager of Asia Pacific of Bitfone Corporation. From April 2007 to June 2013, Mr. Fu was a managing director of Citirich International., Ltd. From July 2013 to January 2016, Mr. Fu was global executive vice president of Beijing Kingsoft Office Software, Inc. (北京金山辦公軟件股份有限公司) (listed on the Shanghai Stock Exchange, stock code: 688111). From January 2016 to March 2018, Mr. Fu was successively a managing director of global operation and international investment, respectively, of Meitu Inc. (listed on the Stock Exchange, stock code: 1357). From June 2018 to August 2019, Mr. Fu was the chief executive officer of HBUS Holdco Inc. From August 2019 to October 2020, Mr. Fu was a managing director of Fenbushi Investment Management Co., Ltd. and has been a venture partner of the same company since October 2020. Mr. Fu is also currently the co-founder and chief marketing officer of Math Global Foundation., Ltd.. Mr. Fu has also served as the independent non-executive director of China Renaissance Holdings Limited (listed on the Stock Exchange, stock code: 1911) since June 2025. Mr. Fu graduated from Midland University in July 1992 with a bachelor degree in business administration. He also graduated from San Jose State University in May 1999 with a master degree in business administration.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

BUSINESS REVIEW AND PROSPECTS

In 2025, the global macroeconomic environment and the technology industry landscape continued to evolve, leading to the coexistence of market volatility alongside structural opportunities. In this complex and changing environment, the Group continued to deepen its business transformation and innovation, maintaining a strong strategic focus on the Web3 business, while developing its two traditionally strong segments of game and film businesses at a steady pace. With its forward-looking strategic layout, efficient execution capabilities, and accurate grasp of market trends, the Group’s various business segments have achieved remarkable results, laying a solid foundation for steady growth throughout the year.

Web3 Business: a strategic focus of our development, striving for breakthroughs in investment, application and computing services

Since the Group established the Web3 business as its strategic focus in 2024, it has continued to invest in Web3 business. As policies become more favorable, such as the Hong Kong government’s efforts to build a foundation for Web3, cryptocurrencies and stablecoins, such policy developments have far-reaching implications for the Group. In terms of stablecoin regulations, Hong Kong’s Stablecoins Ordinance became effective in August 2025, which established the licensing system for issuers. As of March 2026, although the countdown to the first batch of licences has begun, the regulatory institutions uphold the principle of “quality over quantity” in promoting the standardization of stablecoin market. The U.S. government’s approval of the GENIUS Act and its approval of allowing 401(k) retirement accounts to gain exposure to cryptocurrencies and stablecoins highlight its support for the development of digital assets and will boost market confidence and help the Group in optimizing its investment portfolio while complying with those applicable regulations. This will facilitate the Group’s relevant investment, trading and financial innovative businesses while safeguarding asset security. The Group will continue to monitor policy developments closely and make timely adjustment to its strategies, in order to promote the steady growth of its crypto assets investment business while in compliance with regulations.

In 2025, with regard to crypto assets investments, the Group continued to monitor the market. Despite significant market volatility, we responded to market fluctuations with flexible and prudent strategies. As of the end of the Reporting Period, the Group (excluding any non-controlling company) held a total of 118.5716 units of Bitcoin, 570.6322 units of Ethereum and 7,691.705 units of Solana. In 2025, realized gains amounted to US$3.7 million. Crypto assets held by the Group have made significant contributions to the growth of the Group’s assets and the improvement of its profit and loss position. With an aim to achieve the goal of asset preservation and value appreciation amidst the fluctuating market, we will continue to review our cryptocurrency position from time to time having regard to market conditions, our liquidity needs, risk management, internal investment limits, applicable regulatory requirements and subject to the approval of the Board. This initiative is not just a short-term move, but also aims to lay the foundation for the Group to expand into the Web3 business and facilitate the Group to seize the initiative in the emerging technological fields, constructing a more competitive business layout.

In July 2025, the Group announced the establishment of the LK Crypto division. This is a significant strategic decision of the Group to capitalize on the historic opportunities presented by Hong Kong’s Web3 policy. As the core platform for executing the Group’s Web3 strategy, the LK Crypto division oversees all of its Web3 and crypto assets related businesses, including the management of Bitcoin, Ethereum, Solana and other mainstream crypto assets held by the Group and the crypto assets held by the non-controlling companies of the Group (including LK Venture, Marsbit, Element, etc.). Through the integration of resources, the Group aims to establish a more comprehensive and efficient Web3 business system, focusing on the new emerging investment sectors, such as real-world asset on-chain (RWA), stablecoins and others, and carrying out preliminary research and exploratory work with caution. At the same time, by leveraging Hong Kong’s policy advantages, we aim to participate in the investment and cooperation of more innovative projects while complying with regulations, thereby proactively promoting the implementation of these projects. However, with the implementation of policies, more stringent regulations have also brought challenges. For example, the Stablecoins Ordinance imposes strict requirements on anti-money laundering, investor protection and other aspects. While engaging in crypto assets investment and relevant businesses, the Group shall allocate more resources in compliance, so as to ensure that its operation complies with regulatory standards and avoids potential legal risks.

In 2025, the Element platform of the Group maintained steady growth in the Web3 trading market and continued to expand its presence in the sectors of NFT trading and multi-chain infrastructure, thereby successfully completing a strategic transition from a single-purpose NFT platform to a diversified digital asset trading platform. The GMV of the platform achieved a significant breakthrough for the year, whilst total revenue maintained a steady growth momentum. Benefiting from the optimizations to the underlying computing architecture, annual node operation and maintenance costs were substantially reduced, while the platform’s net profit margin, number of new unique addresses and DAU all attained steady increases. Core system evolution: we officially launched our indexer 2.0 in the first quarter and maintained stable operation throughout the year. Based on distributed computing and highly efficient indexing algorithms, it not only significantly reduced resource consumption, but also achieved a significant leap in data throughput. Multi-chain ecosystem positioning: we accelerated the expansion of our presence in the cutting-

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

edge public blockchains throughout the year. We completed the integration with high-performance public blockchains, such as Abstract and BeraChain, and in the second half of the year became the first platform to connect with Monad, the popular new public blockchain. Furthermore, we established in-depth collaborations with Bitlayer, Mantra, Nibiru and ZetaChain to comprehensively consolidate our advantages in core infrastructure and traffic inflow during the starting stage of new blockchains. Asset types expansion and frontier exploration: we have successfully expanded our business lines from traditional NFT to Fungible Token. Meanwhile, by keeping abreast of industry trends and exploring ways to integrate the x402 protocol with NFT interaction mechanisms, we continued to provide matching engines and operational support for projects. Comprehensive upgrade to the distribution system (Drops): In the second half of the year, we carried out in-depth optimizations to the Drops system, to deliver a “Simple & Fast” launch experience and a “One-stop Launch Flow” integrated process, whilst ensuring full H5 compatibility across all platforms, thereby significantly lowering the barrier to entry. The launch of ERC-20-based Drops functionality at the same time will further expand the range of distribution scenarios. Launchpad and risk control: the introduction of a multi-dimensional due diligence and risk quantification system has significantly increased the success rate of project launches and synergized various public blockchain incentive programs to effectively boost the overall GMV of the platform and user activity. In 2025, through continuous product iteration and ecosystem expansion, Element laid a solid ecosystem foundation for the next-generation trading ecosystem featuring multiple assets, cross-chain capabilities and high liquidity, resulting in a significant enhancement of the overall product competitiveness of the platform.

In January 2024, we invested in EcoPowX, a company engaged in the provision of computing solutions for AI computing and Bitcoin network through establishing more environmentally-friendly flare gas power generation facilities and premises. EcoPowX intends to cooperate with large oilfields and natural gas processing equipment suppliers in West Africa, in order to promote the eco-friendly processing of flare gas in oilfields. As part of its cryptocurrency mining and graphics processing units computing provision business, the overall operation of EcoPowX centers on power sources for AI computing and cryptocurrencies mining, which provide sustainable green solutions and technical support. Currently, the equipment of the project has been installed and is pending final trial operation and acceptance before it could be put into operation.

Game Business: leveraging AI innovation as a core driver to empower the highquality development of our game business

In 2025, supported by the Group’s extensive product portfolio, refined operation system and continued investment in innovation, our business demonstrated strong operating resilience and development momentum, providing solid support for the healthy and steady growth of the Group’s overall results. Through deepened and refined operations, as well as continuous iterations and updates, the Group’s existing classic game products were able to maintain stable operations, thereby effectively maintaining user stickiness and core market competitiveness to ensure the sustained unlock of value from our existing product portfolio.

With regard to the overseas market, the Group’s existing game products maintained stable operations in Korea and other core overseas regions. With our in-depth knowledge on local culture ecosystem and refined localized operation strategies, our game contents could maintain their core gameplay and brand personality entirely, while catering to regional user preferences and consumption patterns accurately. Not only has this further solidified our overseas market foundation, but it has also demonstrated long-term operation viability to consistently contribute stable overseas turnover and thus, serving as a solid support for the business growth of the Group.

The Group mainly leverages innovative AI technology and thoroughly integrates it into the full process of game development and operation to keep facilitating digital and intelligent upgrades of its business. During development, AI technology is broadly used in core development sections, such as character modeling, scene generation, code programming and other areas, to soundly improve our development efficiency, optimize quality of our products and significantly shorten the development cycle at the same time, thereby reducing the costs of research and development. During operation, AI technology facilitates personalized content recommendations, quick response of intelligent customer service and dynamic adjustments to game balance, thereby enhancing user engagement and service experience and maintaining a fair and orderly competitive environment for our games to further enhance user retention.

Looking forward to 2026, the game business of the Group will center on the three core directions of product innovation, market expansion and technology upgrades, comprehensively promoting effective business growth with high quality, sustainably enhancing core competitiveness and assisting the Group to achieve high quality development. In respect of existing operations, the Group will further deepen its refined operation strategies and continue to improve product quality and user experience through game engine upgrades, visual quality improvement, storyline extensions and social gameplay optimizations, thereby extending the lifecycle of existing products effectively and fully exploring the growth potential of our existing products. The Group will retain focus on development of new mobile games, application of cutting-edge technologies and expansion of value of its game IPs, increase its investment in research and development, and encourage its R&D team to explore new gameplay, new themes and new technological applications. The Group will also deepen industry-academia-research cooperation, enhance research and development capabilities constantly and foster a strong innovative culture to create a new product portfolio with core competitiveness. In terms of

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

technology upgrades, the Group will further expand its integrated applications of AI technology, proactively explore intelligent script generation and other new application scenarios, and at the same time, strengthen the establishment of cybersecurity system and server performance optimization to ensure the stable operation of its business. The Group will pay close attention to the development of blockchain, cloud gaming and other emerging technologies, and remain positive to explore the new business model of “technology+content”, in order to maintain our lead in technology and lay a solid foundation for the Group’s long-term sustainable development.

As of December 31, 2025, the Group operated 14 online games. Each game product maintained its stable operation, providing the Group with consistent and stable cash flow and ensuring the stability and sustainability of the Group’s operation. In 2026, the Group will continue to maintain stable operation of its existing products, and ensure further extension of its existing products’ lifecycle and a gradual rise in user activity by constantly expanding its refined operation and user maintenance. Meanwhile, the Group will conduct in-depth research and analysis of market development trends, precisely estimate the core demands of players and experiment with new gameplay and operation mechanisms in a proactive manner. Based on market trends and user preferences, we will introduce innovative content such as strategy game mechanics, MOBA elements and random generation, and refine these through multiple rounds of testing and optimizations to ensure the playability and replayability of our games, thereby driving the Group’s game business growth and promoting a sustained and healthy development of the Group’s business.

Film Business: sustaining long dramas, breaking into mid-length drama market and incubating AIGC

Linekong’s film business has been steadily building our product portfolio, enriching our potential IP reserve and promoting the production of its high-quality premium IP dramas.

In 2025, in response to the industry restructuring, Linekong Pictures adopted a core strategy of “balancing quality and growth”, achieving significant milestones in areas such as the operation of long dramas and the exploration of AIGC technology, whilst upgrading the whole-process operational capabilities of the team. In 2026, the Group will focus on three key pillars, namely “content quality, resource integration and project risk management”, to drive the implementation of key long drama projects and the application of AIGC technology, so as to further strengthen its core competitiveness and continue to contribute values to the Group’s overall development.

Being one of the core broadcasted series in 2025, “陷入我們的熱戀” became one of the year’s standout modern idol dramas of the year after its release on Tencent Video on May 28, 2025. The drama ranked top 2 among modern idol dramas on Tencent Video in 2025 with an outstanding performance of key data represented by a peak popularity score of 25,087. Its average views per episode reached over 17 million according to Enlightent and recorded over 400 million valid views across all platforms. In terms of social media, the total viewership of the clips of main topics on Douyin exceeded 5.34 billion times and views of main topics on Weibo surpassed 1.03 billion times. The drama has received widespread acclaim from authoritative media outlets like People’s Daily Online and CCTV News and has fully recovered all outstanding payments, establishing itself as a benchmark project for return on investment for the year. It has also constructed a comprehensive system covering post-production risk control under compressed schedules, multi-round review coordination, and promotional media management, accumulating valuable experience for the operation of future reserve and joint production projects. In 2026, the Company will systematically summarize the successful experience gained from this project and thoroughly apply its end-to-end operational methodology to subsequent key long drama projects, thereby helping to enhance the quality and operational efficiency of all types of projects.

Among our pipeline of long drama projects, the female-led mystery series “燃燒的四季” completed the first draft of its 12-episode script in 2025. It has successfully passed the initial review by the Sichuan Provincial Bureau of Radio, Film and Television (四川省廣播電視局) and the joint review by the Public Security Bureau. We have signed Han Sanping (韓三平) to serve as our executive producer and Zhang Yong (張勇) to act as our chief script supervisor. Having passed the first-round assessment of Tencent Video, the script of the project is currently being refined in accordance with the feedback on such platform to ensure thorough preparation for the subsequent filming. In 2026, the project is scheduled to commence filming in the second and third quarters of the year. The Company will facilitate its cooperation with Tencent Video on its production at its best endeavours, continue to refine the script content, strictly control project quality and ensure smooth progress of the project.

“殺妻疑雲”, which is also in the female-led suspense genre, finished the signing of Luo Hong (羅虹) to be the scriptwriter in 2025. The story outline and episode synopses were completed simultaneously and the scripts for episodes 1 to 5 were successfully finalized, defining the filing procedure with the Guangdong Provincial Bureau and laying the groundwork for the subsequent progress of the project. In 2026, the Company will further clarify the production timeline of the project, with filming scheduled to commence in the third and fourth quarters of the year. The focus will be on refining the final script and assembling the core creative team to ensure the project could be delivered as planned.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

The regional and humanistics featured drama “破春光”, as the Group’s flagship S class project focusing on “realism+intangible cultural heritage”, completed the contracting of copyright and scriptwriting in 2025, and commenced the scriptwriting for episodes 1 to 4. The drama successfully completed the filing and public notice process with the National Radio and Television Administration (國家廣播電視總局), and concluded onsite research in the Chaoshan region (潮汕地區). Concurrently, plans for cultural and tourism spin-off development were also formulated, which established a diversified a development model characterized by “content + cultural tourism”. In 2026, the project will complete the full script and commence filming in the third quarter, further deepening the integration of Chaozhou-Shantou regional culture and implementing the cultural tourism spin-off development plan, with an aim of creating an influential and popular “cultural export” for 2027. Currently, the project has been progressing at full speed and has achieved significant milestones in the first quarter of 2026: in January, the scriptwriting team was organized to conduct in-depth field research in Puning, Guangdong, to explore the essence of Yingge Dance (英歌舞) culture; in March, a strategic partnership was established with the Puning Municipal Government, designating Nanxi Water Village (南溪水鄉) as the core principal filming location and planning a “film-scenery integrated promotion” model; and also in March, a global casting call was kicked off to accumulate market popularity in advance. The project was scripted by Zhang Wei (張巍), the renowned scriptwriter, and featured with natural scarcity and topic dominance, aligning with the global trends in cultural exchange and development in 2026. The project is estimated to become a benchmark among the Company’s pipeline of cultural projects.

With regard to our joint production projects, “Ancient Music Records (古樂風華錄)” completed its filming in 2024, and continued its postproduction throughout 2025. With the overall progress being smooth, and the project is expected to be officially released in 2026. In 2026, the Company’s focus will be on finalizing the post-production of the project and strictly controlling production quality to ensure its release as scheduled successfully. The Company will also prepare for the project’s pre-launch promotion and distribution to fully guarantee broadcast impact of the project and enhance its influence.

“唸唸人間玉”, another of our joint productions, was released on iQIYI (愛奇藝) on July 31, 2024. As of August 5, 2025, such drama had been played 72.7427 million times by paid members. The drama’s performance met the Company’s expectations, which demonstrated the success of the collaboration. In 2026, the Company will continue to monitor the long-tail effects of such project and systematically summarize its broadcasting experience and cooperation model to provide practical and useful reference for the operation of future joint productions, thereby helping to improve the overall quality of the joint production business.

In the fields of AIGC and IP incubation, Linekong Pictures duly initiated its exploration of AIGC technology application within the film business sector in 2025, and at the same time, underwent the selection and incubation of high quality IPs and successfully completed the preliminary groundwork for the implementation of AIGC technology, securing ample resources for future film-comics collaboration and content development, whilst generating new momentum for the sustainable growth of the business. In 2026, the Company will continue to deepen the application of AIGC technology in film content development. By using key pipeline projects as pilot schemes, the Company will validate the film-comics collaboration model of “low-cost AIGC testing — data feedback — film development”, and we, concurrently, will continue to identify high-quality content to secure three premium IPs for 24-episode A+ class long dramas, and drive the practical implementation of AIGC technology in core processes, such as script evaluation and concept design, thereby facilitating cost reduction and efficiency enhancement in content development.

In terms of team capacity building and organizational structure optimization, in 2025, leveraging the end-to-end operation of various long drama projects throughout the year, the team of Linekong Pictures achieved a comprehensive upgrade in capabilities. Moving beyond its original focus on content planning alone, the team gradually built an end-to-end project management capability covering script development, project risk control, regulatory coordination, marketing and distribution management and channel collaboration, thereby laying a solid foundation for the subsequent expansion of business scale for the team. In 2026, the Company will further optimize its existing flat, efficient and multi-disciplinary elite team structure (the current project-based matrix management system), through designating the management responsibilities of “Track Leaders”, complementing support from the research and development platform, systematically consolidating project operation methodologies, to continuously enhance the team’s efficiency and capabilities across the end-to-end operation of projects. Meanwhile, based on business practices in 2025 and development objectives for 2026, the Company will implement four core operational strategies to provide robust safeguards for the orderly advancement of various business operations: 1) end-to-end IP operation, by planning a collaboration pathway for “comic dramas + short dramas + long dramas” from the project initiation stage to maximize IP value; 2) technology-driven cost reduction and efficiency enhancement, by introducing digital production systems, such as Virtual Production and Cloud Production, whilst deepening the application of AIGC technology; 3) a premium-content-focused strategy, by concentrating core resources to create the cultural hit, namely “破春光”, and achieving a major breakthrough in the mystery genre; and 4) the retention of key creative talents, by establishing deep and long-term partnerships with one or two S class directors/scriptwriters to ensure the content quality of our projects remains controllable.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

Based on the above, 2025 marked a critical year for Linekong Pictures in terms of “breaking boundaries and laying foundations (破界築基)”. Through the operations throughout the year, the Company achieved fruitful results in establishing benchmark long drama, strategically positioning AIGC technology and upgrading team capabilities, thereby laying a solid foundation of projects and talent for future development. 2026 will be the pivotal year for Linekong Pictures to “break through and deliver (攻堅落地)”, with the core mission being to drive decisive progress in leading projects within the long drama sector and to practically apply AIGC technology to our film business. In the future, Linekong Pictures will continue to focus on its two core directions of “end-to-end IP operation (IP全鏈路運營)” and “technology-driven efficiency (科技提效)”, establishing itself as an industry benchmark in long drama sector. Through continuously enhancing its core competitiveness and sustainable development capabilities, Linekong Pictures will, as one of the Group’s traditional strengths, continue to contribute value to the Group’s overall development.

In 2025, Linekong Interactive Group made significant progress in its Web3 business, game business and film business. By actively embracing industry transformation and increasing investment in technology research and development, content creation and market expansion, the Group has maintained steady progress amid a complex market environment. Looking ahead to 2026, we believe that it will mark the first year of largescale global AI applications, and that robotics applications will also advance to a new stage, the Group is therefore paying full attention to such development. Meanwhile, the Group will continue to focus on its strategic objectives, steadily promote the development of all business segments, give full play to the synergies between business segments and continuously enhance its core competitiveness, in order to create greater value for shareholders and achieve sustainable development for the Group.

FINANCIAL REVIEW

The following table sets out our consolidated statement of profit or loss and other comprehensive income for the years ended December 31, 2024 and 2025, together with changes (expressed in approximate percentages) from 2024 to 2025:

	For the year ended	For the year ended	December 31,
	2025		2024		Change
		approximate		approximate	approximate
	RMB’000	%	RMB’000	%	%
Revenue	41,358	100.0	146,049	100.0	(71.7)
Cost of revenue	(32,978)	(79.7)	(124,614)	(85.3)	(73.5)
Gross profit	8,380	20.3	21,435	14.7	(60.9)
Selling and marketing expenses	(9,023)	(21.8)	(13,321)	(9.1)	(32.3)
Administrative expenses	(25,855)	(62.5)	(35,378)	(24.2)	(26.9)
Research and development expenses	(4,879)	(11.8)	(17,553)	(12.0)	(72.2)
Net impairment losses on trade and other receivables
and contract assets	(1,376)	(3.3)	(182)	(0.1)	656.0
Other operating income — net	24,185	58.5	13,863	9.5	74.5
Operating loss	(8,568)	(20.7)	(31,136)	(21.3)	(72.5)
Other losses — net	(7,376)	(17.8)	(3,269)	(2.2)	125.6
Finance income — net	1,154	2.8	965	0.7	19.6
Share of profit of investments using equity accounting	2,534	6.1	3,550	2.4	(28.6)
Loss before income tax	(12,256)	(29.6)	(29,890)	(20.5)	(59.0)
Income tax expense	(160)	(0.4)	(10)	0.0	1,500.0
Loss for the year	(12,416)	(30.0)	(29,900)	(20.5)	(58.5)
Non-IFRS Accounting Standards measure:
Adjusted net loss (unaudited)	(1,986)	(4.8)	(13,360)	(9.1)	(85.1)

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

The following is an analysis of the Group’s revenue and results by reportable segment:

	Game Business Film Business 2025 2024 2025 2024 RMB’000 RMB’000 RMB’000 RMB’000	Total 2025 2024 RMB’000 RMB’000
Segment revenue Segment loss Gains on disposal of intangible assets Unallocated corporate expenses Other losses — net Finance income — net Share of profit of investment accounted for using equity method Loss before income tax	31,402 39,791 9,956 106,258	41,358 146,049
	(17,961) (38,936) (8,478) (3,522)	(26,439) (42,458)
		26,468 15,485 (8,597) (4,163) (7,376) (3,269) 1,154 965 2,534 3,550
		(12,256) (29,890)

Revenue

The Group’s revenue amounted to approximately RMB41.4 million for the year ended December 31, 2025, representing a decrease of approximately 71.7% as compared to that of approximately RMB146.0 million for the year ended December 31, 2024.

For the year ended December 31, 2025, the revenue contributed by game business was approximately RMB31.4 million, representing a decrease of approximately 21.1% as compared with 2024, the revenue of which amounted to approximately RMB39.8 million, which was attributable to the decrease in revenue from individual game projects as their lifecycles declined.

The Group recognised revenue of approximately RMB10.0 million from licensing and production of online dramas and others for the year ended December 31, 2025, representing a decrease of approximately 90.6% as compared with 2024, the revenue of which amounted to approximately RMB106.3 million, which was attributable to the project lifecycles of film business.

The following tables set forth the breakdown of the Group’s game business revenue by game sources:

		For the year ended December 31, 2025 2024 RMB’000 Approximate % RMB’000 Approximate %
	Self-developed games Licensed games Total	8,924 28.4 13,831 34.8 22,478 71.6 25,960 65.2
		31,402 100.0 39,791 100.0

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

The following table sets forth the breakdown of the Group’s revenue by geographical locations:

	For the year ended December 31, 2025 2024 RMB’000 Approximate % RMB’000 Approximate %
China (including Hong Kong, Macau and Taiwan) Overseas countries and regions Total	30,189 73.0 133,696 91.5 11,169 27.0 12,353 8.5
	41,358 100.0 146,049 100.0

Cost of revenue

The Group’s cost of revenue for the year ended December 31, 2025 was approximately RMB33.0 million, representing a decrease of approximately 73.5% from approximately RMB124.6 million for the year ended December 31, 2024, which was attributable to the period-onperiod decrease in costs and revenues recognised in the current period as a result of the lifecycles of film projects.

Gross profit and gross profit margin

The Group’s gross profit for the year ended December 31, 2025 was approximately RMB8.4 million, representing a decrease of approximately 60.9% from approximately RMB21.4 million for the year ended December 31, 2024, which was attributable to the project lifecycles of film business.

The Group’s gross profit margin for the year ended December 31, 2025 was approximately 20.3%, and was approximately 14.7% for the year ended December 31, 2024. The overall gross profit margin increased mainly due to the project lifecycles of film business.

Selling and marketing expenses

The Group’s selling and marketing expenses for the year ended December 31, 2025 were approximately RMB9.0 million, representing a decrease of approximately 32.3% from approximately RMB13.3 million for the year ended December 31, 2024, which was mainly attributable to the decrease in promotion expenses of game projects for the period.

Administrative expenses

The Group’s administrative expenses for the year ended December 31, 2025 were approximately RMB25.9 million, representing a decrease of approximately 26.9% from approximately RMB35.4 million for the year ended December 31, 2024, which was attributable to further reduction in administrative expenses.

Research and development expenses

The Group’s research and development expenses for the year ended December 31, 2025 were approximately RMB4.9 million, representing a decrease of approximately 72.2% from approximately RMB17.6 million for the year ended December 31, 2024, which was attributable to gradual decrease in investment in research and development of new game projects resulting from strategic adjustment.

Other losses — net

The Group’s other losses — net for the year ended December 31, 2025 were approximately RMB7.4 million, as compared with other losses — net of approximately RMB3.3 million for the year ended December 31, 2024, which was mainly due to the changes in fair value of financial instruments held by the Group.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

Income tax expense

The Group’s income tax expense for the year ended December 31, 2025 was approximately RMB0.2 million, while the Group’s income tax expense for the year ended December 31, 2024 was approximately RMB10,000. The income tax expense was mainly due to profit of individual subsidiaries and the impact of deferred income tax.

Loss for the year

As a result of the foregoing, loss attributable to owners of the Company for the year ended December 31, 2025 was approximately RMB10.3 million, representing a decrease of approximately 64.5% from approximately RMB29.0 million for the year ended December 31, 2024.

Non-IFRS Accounting Standards measure — adjusted net loss

To supplement our consolidated financial statements presented in accordance with the IFRS Accounting Standards, we also adopted adjusted net loss as an additional financial measure to evaluate our financial performance by eliminating the impact of items that we do not consider indicative of the performance of our business. Our adjusted net loss was derived from our net loss for the respective year deducted those charged to sharebased compensation expenses, one-off compensation for loss of office paid, and fair value losses from financial assets at fair value through profit or loss. The adjusted net loss is an unaudited figure.

The following table reconciles our adjusted net loss for the years presented to the audited loss measured under IFRS Accounting Standards for the years presented:

	For the year ended December 31, Change 2025 2024 RMB’000 RMB’000 approximate %
Loss for the year Add: Share-based compensation expenses One-off compensation for loss of office paid Fair value losses from financial assets at fair value through profit or loss Adjusted net loss	(12,416) (29,900) (58.5) 2,796 4,528 (38.3) 223 7,586 (97.1) 7,411 4,426 67.4
	(1,986) (13,360) (85.1)

The Group’s adjusted net loss for the year ended December 31, 2025 was approximately RMB2.0 million, representing a decrease of approximately 85.1% as compared to the adjusted net loss of approximately RMB13.4 million for the year ended December 31, 2024, which was attributable to further reduction in expenses.

We have presented adjusted net loss in this report as we believe that the adjusted net loss is a meaningful supplement to the income statement data because it enables us to measure our profitability without taking into consideration charged to share-based compensation expenses, oneoff compensation for loss of office paid, fair value losses from financial assets at fair value through profit or loss. However, adjusted net loss for the year should not be considered in isolation or construed as an alternative to net loss or operating loss, or as an alternative to cash flow as a measurement of liquidity. Potential investors should be aware that the adjusted net loss presented in this report may not be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

LIQUIDITY AND FINANCIAL RESOURCES

In 2025, we financed our businesses primarily through cash generated from our operating activities. The Group has been maintaining a solid cash position since the initial public offering (the “ IPO ”) which was completed in December 2014. We intend to finance our expansion and business operations with internal resources and through organic and sustainable growth.

Cash and cash equivalents, short-term bank deposits

As at December 31, 2025, we had cash and cash equivalents of approximately RMB67.6 million (as at December 31, 2024: approximately RMB89.9 million), which primarily consisted of cash at bank and other financial institutions and cash in hand and which were mainly denominated in U.S. dollars (“ USD ”) (as to approximately 44.7%), Renminbi (as to approximately 44.4%), Hong Kong dollars (“ HKD ”) (as to approximately 10.7%) and other currencies (as to approximately 0.2%).

As at December 31, 2025, we had no short-term bank deposits which are all carrying fixed interests (as at December 31, 2024: nil). Term deposits represent time deposits placed with banks. Deposits with original maturities more than three months and less than one year are reported as current assets. Interest earned is recorded as interest income in profit or loss during the periods presented.

Net proceeds from the listing, after deducting the underwriting commission and other expenses in connection with the IPO, received by the Company amounted to approximately HKD686.2 million. As at the date of this report, all of the net proceeds from the listing had been utilised.

Capital expenditures

	For the year ended December 31, 2025 2024 RMB’000 RMB’000
Expenditures on fixed assets Purchase of computer software Expenditures on film/online drama rights and films/online drama in progress Purchase of cryptocurrencies Total	717 8,330 16 204 3,669 4,456 92,627 53,415
	97,029 66,405

Our capital expenditures mainly comprised expenditures on film/online drama rights and films/online drama in progress, the purchase of furniture and leasehold improvement, the purchase of server and other equipment, and the acquisition of cryptocurrencies. For the year ended December 31, 2025, our total capital expenditure amounted to approximately RMB97.0 million (2024: approximately RMB66.4 million), mainly including expenditures on fixed assets of approximately RMB0.7 million (2024: approximately RMB8.3 million), expenditures on film/online drama rights and films/online drama in progress of approximately RMB3.7 million (2024: approximately RMB4.5 million), expenditures on purchase of cryptocurrencies of approximately RMB92.6 million (2024: approximately RMB53.4 million). As at the end of the reporting period, we had approximately RMB0.6 million committed capital expenditures, and the capital expenditures for 2026 are expected to be mainly games, cryptocurrencies and films IP.

CAPITAL STRUCTURE

The shares of the Company were listed on GEM of the Stock Exchange on December 30, 2014. The capital structure of the Group comprises ordinary shares.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

BORROWING AND GEARING RATIO

As at December 31, 2025, there were nil bank loans borrowed by the Group (as at December 31, 2024: nil). As at December 31, 2025, the gearing ratio of the Group, calculated as total liabilities divided by total assets, was approximately 29.8% (as at December 31, 2024: approximately 25.8%).

CHARGE ON GROUP ASSETS

There was no pledged asset as at December 31, 2025 (as at December 31, 2024: nil).

INFORMATION ON EMPLOYEES AND REMUNERATION POLICY

As of December 31, 2025, the Group had 78 employees (as of December 31, 2024: 57), mainly worked and were located in the PRC.

The total remuneration of the employees of the Group was approximately RMB27.1 million for the year ended December 31, 2025 (2024: approximately RMB52.7 million). The Company has established the Remuneration Committee on April 21, 2014 with written terms of reference in compliance with Appendix C1 to the GEM Listing Rules.

The Group offers competitive remuneration package commensurate with industry practice and provides benefits to the Directors and employees of the Group, including social insurance coverage, defined contribution retirement scheme and bonus. In determining Directors and staff remuneration, the Group has taken into account salaries paid by comparable companies, time commitment and responsibilities and terms of employment of other position in the Group. The remunerations of the Directors and employees are reviewed regularly.

The Group is required to participate in a defined contribution scheme administered and operated by the local municipal governments (the “ Defined Contribution Scheme ”). The Group contributes funds which are calculated on fixed percentage of 16% of the employees’ salary (subject to a floor and cap) as set by local municipal governments to the scheme locally to fund the retirement benefits of the employees. The government authorities undertake to assume the retirement benefit obligations payable to all existing and future retired employees under such plan and the Group has no further obligation for post-retirement benefits beyond the contributions made. There is no forfeited contribution under the Defined Contribution Scheme available to reduce the existing level of contributions in future years.

The Company has adopted a share option scheme (the “ Share Option Scheme ”) on November 20, 2014 as incentive to the Directors and eligible persons, details of which are set out in section headed “Share Incentive Scheme, Share Option Scheme and 2025 Share Scheme” in this report. Further, the Company has adopted a new share scheme on May 16, 2025 (the “ 2025 Share Scheme ”) to encourage, retain and attract talents of significant importance to the future business development of the Group.

In addition, the Company respectively adopted a restricted share unit scheme (the “ 2014 RSU Scheme ”) on March 21, 2014 and the 2024 restricted share unit scheme (the “ 2024 RSU Scheme ”) on July 12, 2024, with the objective to incentivise Directors, senior management, employees and any person who provides or has provided consultancy or other advisory services to the Group for their contribution to the Group, and to attract, motivate and retain skilled and experienced personnel to strive for the future development and expansion of the Group by providing them with the opportunity to own equity interests in the Company. Share-based compensation expenses in connection with the RSU Scheme and the Share Option Scheme for the year ended December 31, 2025 were approximately RMB 2.8 million (2024: approximately RMB4.5 million).

The Directors believe that maintaining a stable and motivated employee force is critical to the success of the Group’s business. As a fast growing company, the Company is able to provide its employees with ample career development choices and opportunities of advancement. The Company organises various training programs on a regular basis for its employees to enhance their knowledge of online game development and operation, improve time management and internal communications and strengthen team building. The Company also provides various incentives to motivate its employees. For the diversity of the Group’s employees, please refer to the section headed “Corporate Governance Report-Board Diversity Policy” in this report.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

SIGNIFICANT INVESTMENTS, MATERIAL ACQUISITIONS OR DISPOSAL OF SUBSIDIARIES, ASSOCIATED COMPANIES AND JOINT VENTURE

During the Reporting Period, the Group has acquired cryptocurrencies of approximately USD13.0 million in open market transaction. For further details of the purchased cryptocurrencies, please refer to note 18 to the consolidated financial statements.

Save as disclosed above, as at the date of this report, there was no other significant investment, material acquisition and disposal of subsidiaries and associated companies by the Company.

FUTURE PLANS FOR MATERIAL INVESTMENTS AND CAPITAL ASSETS

Save as disclosed above, as at the date of this report, the Group does not have any plan for material investments and capital assets.

FINANCIAL INVESTMENTS

During the year ended December 31, 2025, the Group continued to undertake securities trading, financial investment and digital asset investment activities as part of its overall capital allocation and strategic development plan. The Group’s digital asset investment activities are undertaken principally through LK Crypto as part of the Group’s broader Web3 strategy. These activities were funded primarily by internal cash resources, current assets and, where applicable, other available funding sources of the Group.

As at December 31, 2025, the Group’s investment portfolio comprised listed securities, unlisted securities/strategic equity interests, fund investments and cryptocurrency holdings. The aggregate size of the Group’s financial investments as at December 31, 2025 was approximately RMB152.9 million, representing 48.9% of the Group’s consolidated total assets.

Investment Portfolio

			Fair value/net
		Investment	book amount as of
	Principal holdings/	purpose/source	December 31, 2025
Category	assets	of funding	in RMB million	% of total assets	FY2025 performance/return
Listed securities	BNC, DFDV, VVPR	Wealth management/	2.5	0.8	Loss on changes in fair value of RMB0.05
		self-owned funds			million
Unlisted securities/strategic	Fuze	Strategic investment/	42.5	13.6	Share of profit of investment accounted
equity interests		raised funds			for using equity method of RMB2.5
					million; share of other comprehensive loss
					of investment accounted for using equity
					method of RMB1.4 million
Fund investments	Jikebang Fund	Strategic investment/	20.3	6.5	Fair value profit on an associate measured
		raised funds			at fair value through profit or loss of
					RMB0.04 million; reduction in share
					capital of RMB1.3 million
Cryptocurrency holdings(note)	Bitcoin, Ethereum, Solana	Strategic investment/	87.6	28.0	Realised gain of RMB26.5 million;
		self-owned funds			impairment recognised during
					FY2025 of RMB1.7 million

Note: Amounts are presented based on the measurement amount of each item at the end of the reporting period under the applicable accounting standards; cryptocurrency holdings are presented at net book amount (i.e. cost less accumulated impairment)

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

As at December 31, 2025, the Group’s principal fund investment was Jikebang Fund. The underlying assets of Jikebang Fund principally comprised equity interests in unlisted companies, which can be broadly disaggregated into pan-entertainment, cloud-based technology and enterprise services, intelligent software and cutting-edge technology. Jikebang Fund primarily focuses on technology-driven preliminary projects, mainly include angel investments, Pre-A series investments and A series investments often by means of holding minority equity interests in its investees. During FY2025, the performance of Jikebang Fund is discussed under “Significant Investments Held at the End of the Reporting Period” below. Jikebang Fund is managed by an independent third-party private equity fund manager. Save as disclosed above, there was no other fund investment in the Group’s portfolio which was material and required separate disclosure.

Investment Policy and Objectives

The Company adopted Investment Management Measures in August 2015 to govern its investment activities (the “ Policy ”). The objectives of the Policy are to support the Group’s strategic development, strengthen investment management, reduce risk and safeguard shareholders’ interests in compliance with applicable laws, regulations and the GEM Listing Rules.

The Policy applies to direct investments (e.g., joint ventures, acquisitions) and indirect investments (e.g., securities, stocks, funds). As the Policy predates cryptocurrencies, the Board has adopted additional policies and safeguards in respect of cryptocurrency investments. In this regard, the Group may invest in cryptocurrencies with leading market capitalisation, sufficient liquidity and a clear long-term value proposition, including but not limited to Bitcoin, Ethereum and Solana, as well as Web3 infrastructure projects and other high-quality global equity assets aligned with the Group’s strategic direction. The Group will not invest in projects which, in the Board’s view, involve anonymous teams, elevated compliance and/ or regulatory risks, extremely low liquidity or insufficient transparency and disclosures.

Risk Management and Control Measures

The Company has set an overall cap such that the aggregate size of the Group’s financial investments (including securities, funds and cryptocurrencies) shall not exceed 50% of the Group’s consolidated total assets (the “ Overall Investment Cap ”). For the purpose of the Overall Investment Cap, the Group will measure (i) listed securities and cryptocurrencies by reference to their prevailing market value and (ii) other investments (including unlisted securities and funds) by reference to their fair value as determined in accordance with applicable accounting standards, and will measure total assets by reference to the Group’s consolidated total assets based on the latest available financial information.

Within the Overall Investment Cap, the Group has set a separate cap such that the Group’s cryptocurrency investments shall not exceed 30% of the total assets of the Group (the “ Cryptocurrency Cap ”). For the purpose of the Cryptocurrency Cap, the Group will measure its cryptocurrency holdings by reference to their prevailing market value and total assets by reference to the Group’s consolidated total assets based on the latest available financial information.

These caps are assessed immediately before and after any proposed investment and are subject to ongoing monitoring and periodic reporting to the Board. If either cap is temporarily exceeded solely due to market price fluctuations, the Group will refrain from further investments/ acquisitions unless and until the relevant ratio falls back below the applicable cap, and the Board will consider whether to take appropriate steps (including orderly rebalancing) having regard to market conditions and the Group’s liquidity and risk management considerations. Subject always to compliance with the Overall Investment Cap, to the extent the Cryptocurrency Cap is not fully utilised, the corresponding headroom under the Overall Investment Cap may be deployed into other permitted securities and/or fund investments, subject to the Group’s investment policy, risk management and control measures framework, the multi-level review and approval process (including review by the Group’s risk management function, assessment by the investment and risk management committee and approval by the Board) and ongoing monitoring and reporting arrangements.

Risk is controlled on a case-by-case basis through (i) feasibility studies that include risk identification, sensitivity analysis, and proposed countermeasures for policy, market, operational, liquidity and counterparty risks; and (ii) approval thresholds (investments exceeding US$2,000,000 per transaction or US$10 million cumulatively per project per year require full Board approval). There is also ongoing post-investment monitoring, regular reporting to the Board, annual or biennial project evaluations, and Audit Committee oversight. The Board continually monitors the size and risk profile of the portfolio and will consider formalising quantitative risk limits if financial investments grow materially beyond current levels.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

As the Policy predates cryptocurrencies, the Board has adopted additional policies and safeguards in respect of cryptocurrency investments. In respect of counterparty risk, the Group will only transact with reputable trading platforms and custodians which have completed relevant KYB/ KYC procedures and which, in the Group’s assessment, maintain an appropriate standard of operational capability and credibility. In respect of liquidity management, the Group will, where appropriate, prioritise allocations to highly liquid assets and/or cash-like assets so as to maintain prudent liquidity and flexibility. In addition, the Group adopts risk control tools and safeguards, including multi-signature custody arrangements, real-time on-chain monitoring, and a drawdown alert/early-warning mechanism, with a view to strengthening asset protection and enhancing ongoing risk monitoring.

In managing market and downside risks, in addition to the drawdown alert/early-warning mechanism, the Board may also consider taking measures to control the risk of investment in cryptocurrencies, including (where appropriate) setting a maximum drawdown rate of cryptocurrency investment, generating periodic reports on cryptocurrency investment risk for the Board’s review, and updating cryptocurrency investment targets periodically.

Approval, Oversight Mechanisms and Expertise

The Board has established an investment and risk management committee to enhance governance and oversight over the Group’s investment activities, comprising executive directors, independent non-executive directors, and external advisors. Investment proposals are generally first reviewed by the Group’s risk management function, followed by assessment by the investment and risk management committee, and are implemented only upon approval by the Board. Investments exceeding US$2,000,000 per transaction or US$10 million cumulatively per project per year require full Board approval. Quarterly reports on investment performance, risk exposure, and compliance status will be submitted to the Board of Directors, with material changes disclosed to shareholders and potential investors.

The Group has established a dedicated team to support the above investment activities. The core team members have, on average, more than eight years of experience in the cryptocurrency and blockchain industry. The team adopts a matrix structure and covers key capabilities including investment management, technology R&D, on-chain data analysis, legal and compliance, and financial auditing, thereby supporting the Group’s ongoing monitoring, execution, control and governance requirements.

Significant Investments Held at the End of Reporting Period

As of December 31, 2025, the significant investment held by the Group includes the following:

Equity interests in Fuze Entertainment Co., Ltd (“ Fuze ”). The Group’s initial investment was RMB26,250,000, holding 87,045,455 shares, with a shareholding of 36.82% and a carrying amount of RMB41.3 million. Fuze is engaged in development and sales of smart device, is undergoing business transformation and has not yet generated any revenue (note 14 to the consolidated financial statements); and
Equity interests in Suzhou Ji Ke Bang Undertaking Investment Partnership Enterprise (the “ Jikebang Fund ”), a private equity fund, the Group’s initial investment was RMB30,000,000 with a shareholding of 25.77%, the fair value at the end of the period was RMB20.3 million. Jikebang Fund is mainly engaged in entrepreneurship investment, agency business for other organizations such as entrepreneurship investment enterprises or personal entrepreneurship investment, consultancy business in relation to entrepreneurship investment, provision of management service to entrepreneurship investment enterprises, participate in establishment of entrepreneurship investment enterprises and consultancy organization for entrepreneurship investment management (note 15 to the consolidated financial statements).

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Management Discussion and Analysis

	As of/for the year ended December 31, 2025 As of/for the year ended December 31, 2024 RMB’000 RMB’000
Fuze Fair value % of total assets of the Group Share of profit of investment accounted for using equity method Share of other comprehensive income of investment accounted for using equity method Jikebang Fund Fair value % of total assets of the Group Fair value gain from an associate measured at fair value through profit or loss Capital reduction	42,461 41,337 13.6 13.1 2,534 3,550 (1,410) 815
	20,332 21,643 6.5 6.9 35 1,157 1,346 —

Other financial investments and future plans. Save as disclosed above, there was no other significant investment held by the Group as at December 31, 2025 which was required to be separately disclosed under the GEM Listing Rules.

CONTINGENT LIABILITIES

As of December 31, 2025, the Group did not have any significant contingent liabilities (as of December 31, 2024: nil).

FOREIGN EXCHANGE RISK

DIVIDEND

The Board did not recommend the payment of a final dividend for the year ended December 31, 2025 (for the year ended December 31, 2024: nil).

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

INTRODUCTION

We are committed to achieving and maintaining high standards of corporate governance, as our Board believes that good and effective corporate governance practices are key to obtaining and maintaining the trust of the shareholders of the Company and other stakeholders, and are essential for encouraging accountability and transparency so as to sustain the success of the Group and to create long-term value for the shareholders of the Company.

CORPORATE GOVERNANCE PRACTICE

The Company’s corporate governance practices are based on the principles and code provisions in the Corporate Governance Code (the “ Code ”) as set out in Part 2 of Appendix C1 to the GEM Listing Rules.

In the opinion of the Board, the Company has complied with the code provisions as set out in Part 2 of the Code for the year ended December 31, 2025, except for the deviation from code provision C.2.1 of the Code as disclosed in the section headed “Chairman and Chief Executive Officer” in this section.

BOARD OF DIRECTORS

The Board supervises the management of the business and affairs of the Company and ensures that it is managed in the best interests of the shareholders of the Company as a whole while taking into account the interest of other stakeholders. The Board is primarily responsible for formulating the business strategy, reviewing and monitoring the business performance of the Group, preparing accounts, approving the financial statements and annual budgets as well as directing and supervising the management of the Company. Execution of operational matters and the powers thereof are delegated to the management by the Board with clear directions. The Board is regularly provided with management update report to give a balanced and understandable assessment of the performance, position, recent development and prospect of the Group in sufficient details.

The Board is also responsible for performing the corporate governance duties, with delegation of responsibilities to committees. The Board has reviewed and discussed the corporate governance policy of the Group and is satisfied with the effectiveness of the corporate governance policy.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

BOARD OF DIRECTORS (continued)

Composition

The composition of the Board as of December 31, 2025 is set out as follows:

Executive Directors

Mr. Wang Feng (Chairman and Chief Executive Officer) Mr. Wang Jin (also known as Yan Yusong) (Vice President)

Independent non-executive Directors

Mr. Zhang Xiangdong Ms. Wu Yueqin Mr. Fu Frank Kan

Biographical details of the Directors are set out in the section headed ”Biographical Details of the Directors and Senior Management” of this annual report. There is no relationship (including financial, business, family or other material/relevant relationship(s)) among members of the Board and senior management of the Company.

During the year ended December 31, 2025, the Board at all times met the requirements of the GEM Listing Rules relating to the appointment of at least three independent non-executive Directors, the number of independent non-executive Directors represent not less than one-third of the Board and one of the independent non-executive Directors possessing appropriate professional qualifications or accounting or related financial management expertise.

The Company has received from each independent non-executive Director an annual confirmation of his/her independence, and the Company considers all the independent non-executive Directors independent in accordance with each of the guidelines set out in Rule 5.09 of the GEM Listing Rules. Except for Mr. Zhang Xiangdong, none of other independent non-executive Directors has served the Company for more than nine years. Please refer to the section headed “Assessment of Directors’ Independence” in this section for details.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

Chairman and Chief Executive Officer

Since February 26, 2023, Mr. Wang Feng has been appointed as the chairman of the Board and the chief executive officer of the Company. Pursuant to code provision C.2.1 of the Code, the roles of chairman and chief executive officer should be separate and should not be performed by the same individual. Despite deviating from code provision C.2.1 of the Code, the Board believes that Mr. Wang, being the chairman of the Board, is familiar with the Company’s business operation and has superior knowledge and experience of the Company’s business, and vesting the roles of both the chairman and the chief executive officer in the same person has the benefit of ensuring consistent leadership with the Company and improving the efficiency of overall strategic planning for the Company. Although the responsibilities of the chairman and the chief executive officer are vested in one person, all major decisions are made in consultation with the Board members and the senior management of the Company. In addition, the Board meets regularly to consider major matters affecting the operations of the Group and all Directors are properly and promptly briefed on such matters with adequate, complete and reliable information. Under the current relatively independent board structure (independent non-executive Directors accounting for 60%), the Board is appropriately structured with balance of power to provide sufficient checks to protect the interests of the Company and its shareholders.

The Board will periodically review the effectiveness of this arrangement and consider separating the roles of chairman of the Board and chief executive officer of the Company when it thinks appropriate, for the purpose of complying with the Code and maintaining a high standard of corporate governance practices of the Company.

TERMS OF APPOINTMENT AND RE-ELECTION OF DIRECTORS

Each of our executive Directors has entered into a service contract with our Company and we have issued letters of appointment to our nonexecutive Director (including independent non-executive Directors). The service contract with Mr. Wang Feng, being our executive Director is for an initial term of three years commencing from August 22, 2014 and have been renewed for another term of three years on August 22, 2017 and subsequently on August 22, 2020 and August 22, 2023. The service contracts with Mr. Wang Jin, also being our executive Directors, are for an initial term of three years commencing from May 11, 2018 and renewed for another three years on May 11, 2021 and subsequently on May 11, 2024. The letter of appointment with Mr. Zhang Xiangdong, being our independent non-executive Director, is for an initial term of three years commencing from April 24, 2014 and have been renewed for another term of three years on April 23, 2017 and subsequently on April 23, 2020, April 23, 2023 and April 23, 2026. The letter of appointment with Ms. Wu Yueqin, being our independent non-executive Director, is for an initial term of three years commencing from May 29, 2018 and renewed for another three years on May 29, 2021 and subsequently on May 29, 2024. The letter of appointment with Mr. Fu Frank Kan, being our independent non-executive Director, is for an initial term of three years commencing from February 26, 2023 and have been renewed for another term of three years on February 26, 2026. The service contracts and letters of appointment are subject to termination in accordance with their respective terms. The service contracts may be renewed in accordance with our articles of association and the applicable GEM Listing Rules.

According to our articles of association, one-third of the Directors for the time being shall retire from office by rotation at every annual general meeting of the Company, provided that every Director shall retire from office by rotation at least once every three years, and Directors who are appointed to fill casual vacancies shall hold office only until the next following general meeting after their appointment. Subject to other requirements of our articles of association, retiring Directors may offer themselves for re-election.

If an independent non-executive Director serves more than nine years, his further appointment should be subject to a separate resolution to be approved by shareholders. The papers to shareholders accompanying that resolution should include the reason why the Board (or the Nomination Committee) believes such director is still independent and should be re-elected, the factors considered, and the process and the discussion of the Board (or the Nomination Committee) in arriving at such decision. If all independent non-executive Directors in the Board serves more than nine years, the Company should disclose the length of tenure of each existing independent non-executive Director on a named basis in the circular to shareholders and/or explanatory statement accompanying the notice of the annual general meeting and appoint a new independent nonexecutive Director at the forthcoming annual general meeting.

The Board will make separate announcement(s) with regard to the arrangement of re-election of Directors at the forthcoming annual general meeting of the Company which is expected to be held on June 12, 2026.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

DIRECTORS’ SECURITIES TRANSACTIONS

The Company has adopted the required standard against which Directors must measure their conduct regarding transactions in securities of their issuers (the “ Required Standard of Dealings ”) as set out in Rules 5.48 to 5.67 of the GEM Listing Rules. Among other things, the Company periodically issues notices to its Directors reminding them the general prohibition on dealing in the Company’s listed securities during the blackout periods before the publication of announcements of financial results of the Group.

Having made specific enquiries with all Directors of the Company, all Directors confirmed that they have complied with the Required Standard of Dealings during the year ended December 31, 2025.

DIRECTORS’ TRAINING AND PROFESSIONAL DEVELOPMENT

Each of the current Directors attended one training in 2025, which included training on amendment of the GEM Listing Rules, Directors’ responsibilities and continuous obligations and enforcement of the GEM Listing Rules, details of which are as follows:

	Number of
Name of Directors	training(s) attended	Topic(s) covered
Executive Directors
Mr. Wang Feng_(Chairman and Chief Executive Officer)_	1	C&R
Mr. Wang Jin (also known as Yan Yusong)(Vice President)	1	C&R
Independent Non-executive Directors
Mr. Zhang Xiangdong	1	C&R
Ms. Wu Yueqin	1	C&R
Mr. Fu Frank Kan	1	C&R

Key:

C: Corporate governance
R: Regulatory updates

The Company will arrange suitable training for all Directors in order to develop and refresh their knowledge and skills as part of their continuous professional development.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

BOARD COMMITTEES

The Board has established three Board committees, namely, the Remuneration Committee, the Nomination Committee and the Audit Committee, for overseeing particular aspects of the Company’s affairs. All Board committees have been established with defined written terms of reference, which are posted on the HKEXnews website at www.hkexnews.hk and the Company’s website at www.linekong.com. All the Board committees should report to the Board on their decisions or recommendations made.

The practices, procedures and arrangements in conducting meetings of Board committees are in line with, so far as practicable, those of the Board meetings set out above. All Board committees are provided with sufficient resources to perform their duties and, upon reasonable request, are able to seek independent professional advice in appropriate circumstance, at the Company’s expense.

The Board is responsible for performing the corporate governance duties and functions set out in the Code which included developing and reviewing the Company’s policies and practices on corporate governance, training and continuous professional development of Directors and senior management, reviewing and monitoring the Company’s policy and practices on compliance with legal and regulatory requirements, developing, reviewing and monitoring the code of conduct and compliance manual (if any) applicable to employees and Directors, and reviewing the Company’s compliance with the Code and disclosures in this Annual Report.

REMUNERATION COMMITTEE

The chairman of the Remuneration Committee is Mr. Zhang Xiangdong, our independent non-executive Director, and other members include Mr. Wang Feng, our executive Director, Ms. Wu Yueqin and Mr. Fu Frank Kan, our independent non-executive Directors. The written terms of reference of the Remuneration Committee are posted on the HKEXnews website at www.hkexnews.hk and the Company’s website at www. linekong.com.

The Remuneration Committee has been charged with the responsibility of making recommendations to the Board on the appropriate policy and structures for all aspects of Directors’ and senior management’s remuneration, including making recommendations to the Board on the remuneration packages of executive Directors and senior management. The Remuneration Committee considers factors such as salaries paid by comparable companies, time commitment and responsibilities of the Directors, employment conditions elsewhere in the Group and desirability of performance-based remuneration. The Remuneration Committee has reviewed the remuneration packages and emoluments of Directors and senior management and considered that they are fair and reasonable during the year ended December 31, 2025. Moreover, the Remuneration Committee has reviewed the provisions of the 2014 RSU Scheme and Share Option Scheme of the Company, and noted that both 2014 RSU Scheme and Share option Scheme expired in 2024, approved the 2024 RSU Scheme on July 12, 2024, and granted the equity awards under the 2024 RSU Scheme on July 12, 2024, December 20, 2024 and December 5, 2025 and approved the Share Scheme on May 16, 2025.

NOMINATION COMMITTEE

The Nomination Committee was established on April 24, 2014. The chairman of the Nomination Committee is Mr. Wang Feng, our chairman of the Board and executive Director, and other members include, Mr. Zhang Xiangdong, Ms. Wu Yueqin and Mr. Fu Frank Kan, our independent non-executive Directors. The written terms of reference of the Nomination Committee are posted on the HKEXnews website at www.hkexnews.hk and the Company’s website at www.linekong.com.

The primary duties of the Nomination Committee are to review and assess the composition of the Board and the independence of the independent non-executive Directors and makes recommendations to the Board on appointment of new directors of the Company. In recommending candidates for appointment to the Board, the Nomination Committee considers candidates on merit against objective criteria and with due regard to the benefits of diversity on the Board. During the Reporting Period, the Nomination Committee has reviewed and assessed the composition of the Board and the appointments of those Directors who offered themselves for re-election at the 2025 annual general meeting. The Nomination Committee also assessed the independence of all independent non-executive Directors.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

BOARD COMMITTEES (continued)

Nomination Policy

The objective of the Company’s nomination policy (the “ Nomination Policy ”) is to ensure the members of the Board possess the skills, experiences, and multiple perspectives required for the business of the Company. The principal nominating criteria and principles of the Company’s Nomination Policy are as follows:

(a) to review at least once a year the number, composition and organizational structure of the Board (including the skills, knowledge reserve, work experience and diversity of the Board members), to assist the Board in maintaining a board skills matrix, and to advise on personnel changes of the Board so as to strengthen the Company’s development strategy;
(b) to consider the criteria and procedures for selecting Directors and chief executive officer and make recommendations thereon to the Board; to develop or revise the Company’s board diversity policy (the “ Board Diversity Policy ”) and focus on developing board diversity in the member selection process. Factors to consider include but are not limited to gender, age, culture, perspectives, educational background, and work experience;
(c) to identify qualified candidates as Directors and provide advice to the Board on the nomination of candidates after due consideration on the Board Diversity Policy, requirements for serving as a Director of the Company under the Company’s articles of association, GEM Listing Rules and applicable laws and regulations, and the potential contributions that the candidate can bring to the Board in terms of qualifications, skills, experience, independence and gender diversity;
(d) to assess the independence of independent non-executive Directors with reference to the factors set out in Rule 5.09 of the GEM Listing Rules and any other factors deemed appropriate by the Nomination Committee or the Board; and
(e) to support the Company’s regular evaluation of the Board’s performance.

Selection Procedures of Directors

The Company’s selection procedures of Directors are mainly as follows:

(a) the Board office and the Nomination Committee shall actively communicate with the relevant departments of the Company to assess the demand for new Directors and their re-election and prepare written materials;
(b) the Nomination Committee may extensively seek candidates for Directors within the Company, its holding (or non-wholly owned) enterprises, as well as in the recruitment market;
(c) the Nomination Committee, with due consideration of the relevant requirements including but not limited to the Nomination Policy and the Board Diversity Policy, may identify persons who are eligible to become members of the Board and, where appropriate, assess the independence of the proposed independent non-executive Directors. The Nomination Committee shall gather and know about the information of the preliminary candidates’ occupation, educational background, job title, detailed work experience and all the part-time positions, and prepare written materials;
(d) to seek the written consent from the nominated candidates on the proposed nomination; otherwise, such nominated candidates shall not be considered as candidates for Directors and chief executive officer;
(e) to convene Nomination Committee meetings to review the qualifications of the preliminary candidates against the requirements for being the Directors and chief executive officer;
(f) to submit proposals and relevant materials to the Board in respect of candidates for Directors and Directors re-election within a reasonable time prior to the election of new Directors and re-election of Directors; and
(g) to carry out other follow-up work according to the decision(s) and feedback of the Board.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

BOARD COMMITTEES (continued)

Board Diversity Policy

The Board Diversity Policy was adopted by the Board, took effect on December 29, 2014, and was revised on December 27, 2018. In designing the Board’s composition, Board diversity has been considered from a number of perspectives, including but not limited to gender, race, age, language, cultural and educational background, industry experience, technical and professional skills and/or qualifications, knowledge, length of services and time to be devoted as a director. The Company will also take into account factors relating to its own business model and specific needs from time to time. The ultimate decision will be based on merit and contribution that the selected candidates will bring to the Board.

The Nomination Committee selects Board candidates based on a range of diversity perspectives with reference to the Company’s business model and specific needs, including but not limited to gender, race, age, language, cultural background, educational background, industry experience, technical and professional experience. Due to the update of the Board Diversity Policy and that the Company has met the gender diversity requirements under the Code, the Nomination Committee is considering and discussing the quantitative targets necessary for further optimizing our board diversity, but no quantitative targets or timelines have been formulated as of the date of this report.

As of the date of this report, the Board consisted of five Directors with a male-to-female ratio of 4:1, three of whom are independent nonexecutive Directors, who assist in critical review and monitoring of the management processes. The Board is considered to be rather diverse in terms of the professional background and skills of the Directors, where, one of them has professional financial knowledge; one of them have years of experiences in the gaming industry; one of them have years of experiences in the film and television industry; one of them has professional knowledge in the technology industry; and one of them has professional knowledge in the internet industry. The Company also reviews the Board Diversity Policy on an annual basis. Considering the actual diversity of the members of the Board, the Board considers that the Board Diversity Policy is implemented and effective.

Furthermore, the overall male-to-female ratio of the Group’s employees is 48:30. The Company values diversity among employees, treats employees of different gender, party, religion, nationality and race equally, and fully ensures that employees enjoy equal rights in recruitment, post adjustment, training and promotion. We appreciate and encourage diversity in the workplace and create a professional, inclusive and diversified working environment. The Company has a balanced structure of male and female employees. The Company will continue to maintain gender balance to achieve gender diversity among employees. The Nomination Committee will discuss periodically and when necessary, agree on the measurable objectives for achieving diversity, including gender diversity, on the Board and recommend them to the Board for adoption. In particular, the Nomination Committee will identify and make recommendations to the Board to implement programs that will assist in the development of a broader and more diverse pool of skilled and experienced employees that, in time, will prepare them for Board positions.

Assessment of Directors’ Independence

The Board has arrangements in place for assessing the independence of the Board to ensure that independent views and opinions are available to the Board. Through the independent assessment of the Board, the processes and procedures of the Board and its committees are continuously improved and developed, providing a strong and useful feedback method for improving the effectiveness of the Board, maximizing its strengths and identifying areas for improvement or further development. The purpose of these arrangements is to ensure that the Board has a strong independence to enable the Board to exercise its judgement effectively in order to better protect the interests of shareholders.

The Board and the Nomination Committee have reviewed the composition of the Board, under which shall have no less than three independent non-executive Directors who have all confirmed that they meet the independence requirements of Rule 5.09 of the GEM Listing Rules. In addition, the number of independent non-executive Directors as at the date of this report represents more than half of the Board members, and they are able to provide diverse and independent advice to the Board.

Mr. Zhang Xiangdong has served as an independent non-executive Director for more than nine years and the Nomination Committee and the Board have reviewed and assessed their independence pursuant to code provision B.2.3 of the Code. Given that (a) Mr. Zhang Xiangdong does not have any management role in the Company and its subsidiaries; (b) he has clearly demonstrated diligence, willingness to exercise independent judgment and have been giving objective views to the Company; and (c) there is no evidence that length of tenure is having an adverse impact on his independence, the Board is of the opinion that, as well proven by the valuable independent judgement and advice given by Mr. Zhang Xiangdong over the years, he has the required character, integrity, independence and experience to fulfill the role of an independent non-executive Director. The Board is not aware of any circumstances that might influence Mr. Zhang Xiangdong in exercising his independent judgement.

Given the above, the Company considers that all independent non-executive Directors are independent.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

AUDIT COMMITTEE

The Audit Committee was established on April 24, 2014. The chairman of the Audit Committee is Ms. Wu Yueqin, our independent non-executive Director, and other members include Mr. Zhang Xiangdong and Mr. Fu Frank Kan, our independent non-executive Directors. The written terms of reference of the Audit Committee are posted on the HKEXnews website at www.hkexnews.hk and on the Company’s website at www.linekong. com.

The primary duties of the Audit Committee are mainly to review the financial information and reporting process, internal control procedures and the Company’s risk management and internal control systems, the effectiveness of the internal audit function, audit plan and relationship with external auditors and arrangements to enable employees of the Company to raise, in confidence, concerns about possible improprieties in financial reporting, internal control or other matters of the Company.

The Company has complied with Rule 5.28 of the GEM Listing Rules in that the Audit Committee must comprise a minimum of three members with a majority of independent non-executive Directors and must be chaired by an independent non-executive Director, and that at least one of the members of the Audit Committee is an independent non-executive Director who possesses appropriate professional qualifications or accounting related financial management expertise as required by Rule 5.05(2) of the GEM Listing Rules.

The Group’s consolidated financial statements for the year ended December 31, 2025 as well as the consolidated financial statements for the six months ended June 30, 2025 have been reviewed by the Audit Committee. The Audit Committee is of the opinion that the consolidated financial statements of the Group for the year ended December 31, 2025 comply with applicable accounting standards, GEM Listing Rules and that adequate disclosures have been made. The Audit Committee also provided recommendations to the Board on the appointment of the external auditors of the Company and review of the Company’s internal control procedures and risk management matters and effectiveness of the internal audit function.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

ATTENDANCE RECORDS OF MEETINGS

The Board is scheduled to meet regularly at least four times a year, and Directors will receive at least 14 days prior written notice of such meetings in compliance with code provisions C.5.1 and C.5.3 of the Code. Agenda and accompanying papers are sent not less than 3 days before the date of Board meetings to ensure that the Directors are given sufficient time to review the same.

Board Meeting and General Meeting

For the year ended December 31, 2025, four Board meetings were held and attendance of each Director is set out as follows:

		Number of meetings
		held during
Name of Directors	Number of attendance	term of office(Note)
Executive Directors
Mr. Wang Feng_(Chairman and Chief Executive Officer)_	4	4
Mr. Wang Jin (also known as Yan Yusong)(Vice President)	4	4
Independent Non-executive Directors
Mr. Zhang Xiangdong	4	4
Ms. Wu Yueqin	4	4
Mr. Fu Frank Kan	4	4

Note: Among the meetings held during the Reporting Period, none of the meeting was conducted through resolutions in writing signed by each Director.

For the year ended December 31, 2025, the Company convened and held one general meeting, namely the 2024 annual general meeting held on May 16, 2025, which was attended by all Directors of the Company.

Audit Committee Meeting

For the year ended December 31, 2025, four Audit Committee meetings were held for the purpose of reviewing the Company’s financial statements and annual report and accounts, and half-year reports, ensuring the completeness, transparency and consistency of the financial reporting disclosure, providing advice and recommendations to the Board, reviewing the risk management and internal control system, the effectiveness of the Group’s internal audit function and fulfilling other duties under the Code. The attendance of each member is set out as follows:

		Number of meetings
		held during
Name of Directors	Number of attendance	term of office
Independent Non-executive Directors
Ms. Wu Yueqin_(Chairman of Audit Committee)_	4	4
Mr. Zhang Xiangdong	4	4
Mr. Fu Frank Kan	4	4

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

ATTENDANCE RECORDS OF MEETINGS (continued)

Nomination Committee Meeting

For the year ended December 31, 2025, one Nomination Committee meeting was held for the purpose of reviewing the nomination policy of Directors (concerning the nomination procedures and the process and criteria adopted to select and recommend candidates for directorship) and handling re-election of Directors. The attendance of each member is set out as follows:

		Number of meetings
		held during
Name of Directors	Number of attendance	term of office
Executive Director
Mr. Wang Feng_(Chairman of Nomination Committee)_	1	1
Independent Non-executive Directors
Mr. Zhang Xiangdong	1	1
Ms. Wu Yueqin	1	1
Mr. Fu Frank Kan	1	1

Remuneration Committee Meeting

For the year ended December 31, 2025, one Remuneration Committee meeting was held for the purpose of reviewing and considering the specific remuneration packages for the Company’s Directors and senior management, assessing performance of executive Directors, approving the terms of the Director’s service contract and other matters. The attendance of each member is set out as follows:

		Number of meetings
		held during
Name of Directors	Number of attendance	term of office
Executive Directors
Mr. Wang Feng	1	1
Independent Non-executive Directors
Mr. Zhang Xiangdong_(Chairman of Remuneration Committee)_	1	1
Ms. Wu Yueqin	1	1
Mr. Fu Frank Kan	1	1

Minutes of Board meetings and meetings of Board committees are kept by the company secretary or other duly authorised person. All minutes are open for inspection by any Director on reasonable notice. Such minutes are recorded in sufficient detail of the matters considered and decisions reached. Draft and final versions of minutes of Board meetings are sent to all Directors for their comments and records.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

REMUNERATION OF DIRECTORS AND SENIOR MANAGEMENT

Particulars regarding Directors’ remuneration and the five highest paid employees as required to be disclosed pursuant to Chapter 18 of the GEM Listing Rules are set out in note 9 and note 34 to the consolidated financial statements in this Annual Report. During the Reporting Period, the Company has no member of senior management (excluding executive directors). In 2025, the Company did not pay any emoluments to any of the Directors or the five highest paid employees as an inducement to join or upon joining the Company, nor is there any compensation paid or receivable by directors or past directors or the five highest paid employees for the loss of office as a director of the members of the Group or other management member. No Directors waived or agreed to waive any remuneration.

COMPANY SECRETARY

The company secretary of the Company during the Reporting Period was Ms. Chan Yin Wah (“ Ms. Chan ”).

Ms. Chan is a fellow member of The Hong Kong Chartered Governance Institute and The Chartered Governance Institute in the United Kingdom, respectively. Ms. Chan is also a fellow member of the Association of Chartered Certified Accountants in the United Kingdom.

During the Reporting Period, the primary contact person of Ms. Chan in the Company is Mr. Wang Feng, the chairman and the chief executive officer of the Company. During the year ended December 31, 2025, Ms. Chan undertook over 15 hours of relevant professional training to update her skill and knowledge in compliance with Rule 5.15 of the GEM Listing Rules.

DIRECTORS’ RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS

The Directors acknowledge their responsibility for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRSs issued by the International Accounting Standards Board and the disclosure requirements of the Hong Kong Companies Ordinance (Chapter 622 of the Laws of Hong Kong) and the GEM Listing Rules. The Directors have selected appropriate accounting policies and applied them consistently; made judgment and estimate that are prudent and reasonable, and have prepared the consolidated financial statements on a going concern basis. The Directors’ responsibilities in the preparation of the consolidated financial statements and the auditors’ responsibilities are set out in the Auditors’ Report in this Annual Report.

INDEPENDENT AUDITORS’ REMUNERATION

The remuneration paid to the external auditor of the Company, Baker Tilly Hong Kong Limited, in respect of audit services and non-audit services for the year ended December 31, 2025 amounted to RMB1.7 million and RMB0.3 million, respectively. An analysis of the remuneration is set out below:

Service Category	Fees Paid/Payable RMB’000 1,680 294 1,974
Audit Services Non-audit Services_(note)_ Total _Note:_Non-audit services mainly consist of advisory and other professional services.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Corporate Governance Report

INTERNAL CONTROL

The Board has the overall responsibility for the Group’s internal control system, risks assessment and risks management. To fulfil its responsibility, the Board has set up policies and procedures which provide a framework for the identification and management of risks. The risk management and internal control system are designed to manage rather than eliminate the risk of failure to achieve business objectives, and can only provide reasonable but not absolute assurance against material misstatement or loss.

The Group’s internal control system includes a well-established organizational structure with clearly defined lines of responsibility and authority. The Board is aware that consolidating risks management into the Company’s annual strategic plan and implementing it at all levels is not a single stand-alone procedure. Each department shall examine and review various risks and report to the senior management on a regular basis. The risk management team will review those risks and formulate effective systems and mechanisms to lower the risks.

Based on the framework of the COSO (Committee of Sponsoring Organizations of the Treadway Commission), the Group has preliminarily established and improved the internal control system. It also clarified that the management is mainly responsible for the design, implementation and supervision of the internal control system, while the Board and the Audit Committee are responsible for supervising the measures adopted by the management and the effectiveness of the implementation of monitoring measures on an on-going basis. The principles for effective internal control of the system are as follows:

Clear definition of The Board is independent of the management and continuously supervises the development and effectiveness of responsibilities: the internal control system. Under the supervision of the Board, the management is responsible for establishing the organizational structure, reporting relationships, designing, implementing and monitoring the risk management and the internal control system.
Risk management: Identify clear objectives, identify and analyse the risks that may arise in meeting the objectives, assess the affordability of the enterprise, consider potential fraudulent practices, and establish and maintain an effective risk management system.
Control measures: Select and formulate effective control measures to reduce the risks that may arise in meeting the objectives to an acceptable level.
Internal audit: Analyse and assess the effectiveness of risk management and internal control system to guarantee the achievement of the Group’s objectives.
Communication: The internal control department promotes the purpose and responsibility of risk management and internal control among the management and employees of the Group.

The Group fully implemented and improved the above principles in 2025. From the perspective of risk management, our internal control department consistently formulated and optimised internal control measures and procedures for the Company, supervised the implementation of such internal control procedures, tested and evaluated such internal control measures on one hand. On the other hand, through performing internal audit which forms a major part of the supervision function, our internal control department could identify and resolve problems proactively and effectively. It was able to oversee the implementation of improved plans continuously, so as to enhance the efficiency and effectiveness of internal control.

The Company will perform annual inspection and review on the internal control and risk management system. During the Reporting Period, the internal control department continued to rationalise the key processes of the Group, and supervised the implementation of such system at the same time. During the Reporting Period, the internal control department performed internal audit according to the scope of risk warning, supervision and evaluation, and value-added management, and was able to identify the source and trend of risks timely. It worked with related departments for internal audit of releasing game token, management of vehicles and the related fees, which enhanced the coverage of our audit. The internal control department also proposed to implement enhanced plans to keep raising the quality, efficiency and effectiveness of our auditing work.

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Corporate Governance Report

INTERNAL CONTROL (continued)

Administrative measures on inside information are also in place to provide guidelines on reporting and disseminating inside information, maintaining confidentiality and complying with dealing restrictions.

For the year ended December 31, 2025, on behalf of the Board, the Audit Committee reviewed the risk management and internal control systems of the Group on an annual basis, and assessed on the resources for accounting, financial reporting and internal audit of the Group to ensure that a sound system is maintained and operated by the management in compliance with the agreed procedures and standards. The review covered all material controls, including financial, operational and compliance controls and risk management functions. The review was made by discussions with the management of the Company, its external and internal auditors and the assessment conducted by the Audit Committee. For the year ended December 31, 2025, the Audit Committee reviewed the risk management and internal control systems of the Group and believed that such systems are adequate and effective, especially in the areas of financial reporting and GEM Listing Rules compliance. Save as the incident disclosed in the section headed ”Connected and Continuing Connected Transactions” of the Directors’ Report, during the Reporting Period, no significant events that might have an impact on the shareholders were identified, and resources for accounts, financial reports and internal audit of the Group, as well as qualifications, experience and training programs of our employees and the adequacy of relevant budgets were also evaluated. The Audit Committee has reported their findings to the Board. The Audit Committee will continue to identify, evaluate and manage the significant risks faced by the Group, and to enhance the internal control system of the Group with the assistance of the internal control department on an ongoing basis.

MAJOR RISKS

The Group is exposed to various risks and uncertainties in the course of its operation. The Group may be affected if those risks and uncertainties are not being managed properly. According to the evaluation of the Group, the major risks currently faced by the Group and their mitigating measures are as follows:

In 2025, industry competition was still intense. The Group continues to deepen the strategy deployment in the game, film and Web3 business. The game business mainly leverages innovative AI technology and thoroughly integrates it into the full process of game development and operation to keep facilitating digital and intelligent upgrades of its business. We introduced innovative content to ensure the playability and durability of our games, thereby driving the Group’s game business growth. The filming business duly initiated its exploration of AIGC technology application within the film business sector, and at the same time, underwent the selection and incubation of high quality IPs and successfully completed the preliminary groundwork for the implementation of AIGC technology, securing ample resources for future film-comics collaboration and content development, whilst generating new momentum for the sustainable growth of the business. Since the Group established the Web3 business as its strategic focus in 2024, it has continued to invest in Web3 business.
Our technology infrastructure may experience unexpected system failures, disruptions, deficiencies, and have security breaches. The Group will examine the stability of the system regularly to mitigate the occurrence of the aforesaid incidents.
Game players may sell or purchase in-game virtual credits or virtual items in a manner that violates game policies. We have formulated a game policy against unauthorised and inappropriate behaviour of players. According to our game policy, players are not allowed to sell or transfer virtual credits or virtual items in exchange for real money or other physical property.
Both gaming and filming businesses of the Group are affected by domestic policies. Any unfavourable domestic policy on gaming and filming businesses would have an adverse impact on the Group’s operations. The Group will keep abreast of domestic policies from time to time and adjust its development strategy according to such policies in a timely manner. Web3 business requires close attention to international policies to minimize market risks.

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Corporate Governance Report

ANTI-CORRUPTION AND WHISTLEBLOWING

Linekong Interactive is committed to creating an honest and fair working environment. In the daily operations and management, the Company strictly abides by “Company Law of the People’s Republic of China”, “Anti-Money Laundering Law of the People’s Republic of China”, “Oversight Law of the People’s Republic of China”, “Criminal Law of the People’s Republic of China” and other relevant laws and regulations, as well as moral codes. We also pay close attention to the amendment and updates on such laws and regulations, and timely inspect the operation and management of the Company. All kinds of corruption are strictly prohibited, including but not limited to bribery, blackmail, fraud and money laundering, etc., so as to ensure that the daily operations of the Company are in line with the laws and regulations on anti-corruption and antimoney laundering.

The Company has formulated a series of internal policies and systems, including the Reporting Management System, to ensure compliance with anti-corruption and anti-money laundering. We have established whistle-blower with reporting channels such as email and hotline. Our employees may report any misconduct or illegal behaviours existed within the Company via email or hotline, or directly notify the leaders of relevant departments or the chairman of the Company’s Audit Committee. In case of a confirmed incident, we would handle it in accordance with the internal protocol. All reporting is handled in a prudent and confidential manner to firmly prohibit retaliation against the whistle-blowers.

The Company organises anti-bribery and anti-corruption training for internal employees on a regular basis every year, and adopts different training methods for employees in different positions. The Company requires its business personnel to inform customers and suppliers of the Company’s anti-bribery and anti-corruption policies during negotiations and sign contracts that expressly prohibit such behaviours. Directors and employees of the Company attended anti-corruption training to enhance their awareness on anti-corruption and the ability to identify corruption incidents by ways of studying related materials, etc.

During the Reporting Period, the Company and its employees have not been involved in any material behaviours of corruption, money laundering and bribery.

CHANGE OF CONSTITUTIONAL DOCUMENTS

For the year ended December 31, 2025, there was no changes in the constitutional documents of the Company.

DIVIDEND POLICY

For details of the Company’s dividend policy, please refer to the section headed “Directors Report — Results and Dividends” in this report.

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COMMUNICATION WITH SHAREHOLDERS AND INVESTOR RELATIONS

The Company has adopted a shareholder communication policy with the objective of ensuring that the shareholders and potential investors of the Company are provided with ready, equal and timely access to balanced and understandable information about the Company.

The annual general meeting of the Company provides opportunity for Shareholders to communicate directly with the Directors. The chairman of the Board and the chairman of the Board Committees attend the annual general meeting to answer Shareholders’ questions. The auditor also attends the annual general meeting to answer questions about the conduct of the audit, the preparation and content of the auditor’s report, the accounting policies and auditor’s independence.

The Company has established several channels to communicate with the shareholders as follows:

(i) the Company adopts electronic means to publish corporate communications such as annual reports, interim reports, quarterly reports (if any) and circulars. The English and Chinese versions of corporate communications are available on the HKEXnews website at www.hkexnews.hk and the Company’s website at www.linekong.com; and shareholders may request for printed copies of corporate communications;
(ii) periodic announcements are made through the Stock Exchange and published on the respective websites of the HKEXnews and the Company;
(iii) corporate information is made available on the Company’s website;
(iv) annual and extraordinary general meetings provide a forum for the shareholders to make comments and exchange views with the Directors and senior management of the Company; and
(v) shareholders may send their enquiries to the Company by ordinary post.

In 2025, the Company has reviewed the implementation and effectiveness of its shareholder communication policy. With timely announcements, active follow-up for matters concerning shareholders and well-established communication, the Company believes that it has established effective communication channels with shareholders and the shareholder communication policy has been effectively implemented during the Reporting Period. The Company keeps on promoting investor relations and enhancing communication with the existing shareholders and potential investors. It welcomes suggestions from investors, shareholders and the public. Enquiries to the Board or the Company may be sent by post to the company secretary at the Company’s principal place of business in Hong Kong as follows:

The Company Secretary 40th Floor, Dah Sing Financial Centre No. 248 Queen’s Road East Wanchai Hong Kong

SHAREHOLDERS’ RIGHTS

As one of the measures to safeguard shareholders’ interest and rights, separate resolutions are proposed at shareholders’ meetings on each substantial issue, including the election of individual directors, for shareholders’ consideration and voting. All resolutions put forward at shareholders’ meeting will be voted by poll pursuant to the GEM Listing Rules and the poll results will be posted on the HKEXnews website and the Company’s website after the relevant shareholders’ meeting.

Extraordinary general meeting may be convened by the Board on requisition of shareholders holding not less than one-tenth of the paid up capital of the Company or by such shareholders who made the requisition (the “ Requisitionists ”) (as the case may be) pursuant to our articles of association. Such requisition must state the object of business to be transacted at the meeting and must be signed by the Requisitionists and deposited at the registered office of the Company or the Company’s principal place of business in Hong Kong. Shareholders should follow the requirements and procedures as set out in such article for convening an extraordinary general meeting. Shareholders may also put forward proposals at general meeting of the Company by sending the same to the Company at the principal office of the Company in Hong Kong.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Environmental, Social and Governance Report

1. INTRODUCTION OF THE REPORT

1.1 About the Report

Linekong Interactive Group Co., Ltd. (the “ Company ”), together with its subsidiaries (collectively “ Linekong Interactive ”, the “ Group ”, “ we ” or “ us ”), hereby presents the Environmental, Social and Governance (“ ESG ”) report (the “ ESG Report ” or the “ Report ”), with a view to demonstrating our progress and performance in respect of ESG, presenting the Group’s vision of sustainable development to our stakeholders and facilitating the efforts in sustainable development to improve our ESG performance.

1.2 Standards of the Report

The Report is prepared in accordance with Appendix C2 “Environmental, Social and Governance Reporting Code” (the “ Reporting Code ”) of the GEM Listing Rules issued by the Stock Exchange of Hong Kong Limited (the “ Stock Exchange ”). The Report has applied the 4 reporting principles of materiality, quantitative, balance and consistency, which complies with the “comply or explain” provision and proposed disclosure requirements under the Reporting Code.

“Materiality”: The Report has disclosed the ESG issues identified, the identification and engagement of stakeholders, as well as the criteria, process and results of the materiality assessment, as the basis for the preparation of the Report, and responses to which shall be made through the Report.
“Quantitative”: The standards, methods, assumptions and/or calculation tools for the emissions/energy consumption statistics, and the source of switching factors, among others, have been disclosed in the definition section of the Report.
“Balance”: The Report provides an unbiased picture of the Group’s performance during the reporting period. The Report avoids selections, omissions, or presentation formats that may inappropriately influence a decision or judgment by the report reader.
“Consistency”: Unless stated otherwise, the Group applies consistent methodology in compiling the ESG data reported to ensure meaningful comparison of ESG performance over time and between entities. Any change in methods or Key Performance Indicators used will also be clearly stated in this report to ensure that the data is comparable.

Readers can use Appendix I — Index for the “Environmental, Social and Governance Reporting Code” contained in this report issued by the Hong Kong Stock Exchange for quick search. The Report shall be read in conjunction with “Corporate Governance Report” in the Annual Report to fully understand the ESG performance of our Group.

1.3 Scope of the Report

The Report sets out the Group’s ESG-related initiatives, plans and performance from January 1, 2025 to December 31, 2025 (the “ Year ” or “ 2025 ”). The ESG Report of the Year covers Linekong Interactive’s performance in the People’s Republic of China (“ China ” or “ PRC ”), and its main locations in the Republic of Korea (“ South Korea ”). The scope is determined based on the materiality of the business segments under direct operational control and the importance to the ESG impact. As the Group’s data collection system becomes more mature and its sustainable development work deepens, we will continue to expand the scope of disclosure in the future.

1.4 Language of the Report

The Report is published in traditional Chinese and English. In case of any inconsistencies, the traditional Chinese version shall prevail.

1.5 Approval and Confirmation

The Board of Directors of the Group (the “ Board ”) accept full responsibility for the contents of the Report and have approved and confirmed the content of the Report.

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Environmental, Social and Governance Report

1.6 Feedback

We highly treasure your comments and recommendations to the Report, please contact us via email ([email protected]) regarding any feedbacks.

2. SUSTAINABLE DEVELOPMENT

2.1 Statement from the Board

We have established the ESG governance structure to enhance the management on sustainable development. The Board is responsible for overseeing the Group’s materiality issues, performance and regularly evaluating ESG-related risks and opportunities, and assumes full responsibility for the ESG governance and sustainable development of the Group. In order to determine the Group’s ESG management approach, strategies, priorities and targets, the Board authorised the ESG task force (“ ESG Task Force ”) to review the results of previous materiality assessments and evaluate the concerns of various stakeholders to determine whether the material ESG issues identified and assessed in the past are still applicable to the Year.

The operations of the Group are mainly carried out in offices and mainly with rented cloud servers, which do not involve any production process, so the impact on the environment and natural resources is not significant. In order to comply with the carbon neutrality goal of the Hong Kong Government and fulfil its corporate social responsibility commitment, the Group has established ESG-related goals. We have also reviewed the progress of these goals during the Year to improve our efforts on sustainable development.

2.2 ESG Governance Structure

The Group understands the importance of incorporating ESG into its management, strategies, as well as business plans and policies for the sustainable operation of the Group. Therefore, the Group has established the ESG governance structure. The structure consists of three levels, including decision-making, organisational and execution levels, which implements ESG governance from top to bottom and stipulates the roles and responsibilities of each level within the ESG governance structure. The Board represents our decision-making level; the ESG Task Force represents the organisational level; and department representatives represent the executive level. Through close cooperation at all levels, the Group is confident that we can integrate the concept of sustainable development with the overall strategy, policies, daily operations and business of the Group. Below sets forth the Group’s ESG governance structure and the roles and responsibilities at each level within the governance structure:

Roles	Scope of Responsibilities
The Board	• approve the content of the annual ESG report
	• establish and monitor ESG risk management and internal control system
	• resolve and approve the policies, strategies, plans, targets and annual tasks of the
	Group’s ESG management
	• review and supervise the ESG performance and target achievement on a regular basis
ESG Task Force	• identify, evaluate, review and manage material ESG issues
	• coordinate and motivate various departments to perform ESG policies; monitor ESG-
	related work performed by each functional department
	• responsible for reviewing and supervising the ESG policies and practices of the Group,
	to ensure we comply with relevant laws and regulatory requirements
	• collect, understand and respond to stakeholders’ opinions on material ESG issues
	through appropriate channels
Department representatives (including	• comply with relevant ESG policies and system
legal department, administrative	• organise, promote and perform ESG-related tasks in accordance with the Group’s ESG
procurement department, finance	management policies, strategies, plans, annual tasks and targets
department, human resources	• collect and regularly report to the ESG task force regarding the ESG internal policy,
department, administration and	mechanism and ESG-related performance indicator
information department and market
and government affair department)

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Environmental, Social and Governance Report

2.3 Stakeholders’ Engagement

The Group believes that stakeholders’ engagement and consistent support are critical to the long-term development of our business. By maintaining close communication with various external and internal stakeholders, the Group allows stakeholders from different sectors to express their views and make suggestions, and responds to their expectations and concerns via different channels, thereby improving our ESG performance and future development strategies.

During the Year, the Group identified major stakeholders related to the Group’s operation, and the relevant key communication channels and ESG issues of major concern to stakeholders are as follows:

	Stakeholders Communication Channels Major Issues Concerned
	Government and Regulators • Official documents, related meetings • On-site supervision • Information disclosure • Compliance reports • Privacy protection and information security • Business growth • Corporate governance • Anti-corruption • Product quality • Public welfare activities Shareholders and Investors • Shareholders’ general meetings • Announcements • Results announcements • Communication meetings • Corporate governance • Business growth • Product development and innovation • Investment returns Employees • Communication meetings • Internal announcements • Seminars/workshops/lectures • Employee feedback mechanism • Internal activities • Employee training and development • Diversity and equal opportunities • Attract and retain talents • Employee rights • Labour standard • Employee health and safety Customers • Satisfaction survey • Customer relations manager visits • Customer feedback activities • Social media platforms • Member services • Exhibitions • Product quality • Customer complaint management • User experience • Fair competition Suppliers • Supplier strategic cooperation negotiation • On-site inspections • Supplier assessments • Cooperation agreements • Communication meetings • Diversity and equal opportunities • Supplier management • Green supply chain • Fair competitions • Waste management Industry Peers • Strategic cooperation projects • Mutual inspectional visits • Communication meetings • Business growth • Product development and innovation • Fair competitions • Privacy protection and information security • Investment returns

Stakeholders
Communication Channels
Major Issues Concerned

Government and
Regulators
• Official documents, related meetings
• On-site supervision
• Information disclosure
• Compliance reports
• Privacy protection and information security
• Business growth
• Corporate governance
• Anti-corruption
• Product quality
• Public welfare activities
Shareholders and
Investors
• Shareholders’ general meetings
• Announcements
• Results announcements
• Communication meetings
• Corporate governance
• Business growth
• Product development and innovation
• Investment returns
Employees
• Communication meetings
• Internal announcements
• Seminars/workshops/lectures
• Employee feedback mechanism
• Internal activities
• Employee training and development
• Diversity and equal opportunities
• Attract and retain talents
• Employee rights
• Labour standard
• Employee health and safety
Customers
• Satisfaction survey
• Customer relations manager visits
• Customer feedback activities
• Social media platforms
• Member services
• Exhibitions
• Product quality
• Customer complaint management
• User experience
• Fair competition
Suppliers
• Supplier strategic cooperation negotiation
• On-site inspections
• Supplier assessments
• Cooperation agreements
• Communication meetings
• Diversity and equal opportunities
• Supplier management
• Green supply chain
• Fair competitions
• Waste management
Industry Peers
• Strategic cooperation projects
• Mutual inspectional visits
• Communication meetings
• Business growth
• Product development and innovation
• Fair competitions
• Privacy protection and information security
• Investment returns

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Environmental, Social and Governance Report

Stakeholders Communication Channels Major Issues Concerned Partners • Exchanges and discussions • Diversity and equal opportunities • Negotiations and cooperations • Supplier management • Green supply chain • Fair competitions • Investment returns • Product quality
Media • Media conferences • Advertisement management • Media interviews • Responsible marketing • Advertising activities • Business growth • Product development and innovation
Communities • Promotion of employment • Community investment • Community activities • Public welfare activities
Advertisement management • Responsible marketing • Business growth • Product development and innovation

2.4 Materiality Assessment

There were no significant changes in our stakeholder groups, business or operating environment during the Year. As such, the Board, the ESG Task Force and our management confirmed that the materiality matrix results in the previous year’s ESG report remain relevant to the current Year’s situation and continue to respond to stakeholder expectations.

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----- Start of picture text -----

High
Product
Responsibility
Employment
Resource
Utilisation Health & Safety
Community Emissions Development &
Investment Training
Anti-corruption
Supplier
Labour Management
Standard
Environment &
Natural Resources
Low
Low Importance to Linekong Interactive High
Importance to Stakeholders
----- End of picture text -----

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Environmental, Social and Governance Report

3. GREEN PRACTICE

The Group strictly complies with relevant laws and regulations, including the “Environmental Protection Law of the PRC” and “Energy Conservation Law of the PRC”. Based on the identification results of the materiality matrix and due to the nature of the Group’s business, environment-related aspects are relatively insignificant. In daily operations, as the Group mainly uses rented cloud servers in offices, the impacts on the environment and natural resources are relatively minimal. Nevertheless, we have actively implemented various environmental protection measures, formulated and required our employees to comply with the Employee Handbook and the Rules for Energy Management in Offices, so as to enhance the awareness of green office among our employees. During the Year, the Group did not have any violations of local environmental laws and regulations regarding exhaust gas and greenhouse gas, discharge of pollutants to water and land, and discharge of hazardous and non-hazardous waste.

During the Year, the Board and the management of the Group have reviewed the targets set last year in relation to environmental aspect and their progress.

3.1 Reduction in Emission

3.1.1 Exhaust gas emissions

The Group’s business is mainly office operation-based, and therefore, we do not have any exhaust emissions related to gaseous fuel consumption. Our exhaust gas emissions mainly come from the gasoline consumed by a vehicle wholly owned by Linekong Interactive. To control the exhaust gas emissions generated from operating activities, we have developed the following emission reduction measures to reduce the impact on the environment, including but not limited to:

Encourage our employees to prioritise public transportation and give preference to electric vehicles or low-emission models to phase out high-pollution emission vehicles; and
Establish a rigorous system for regular vehicle inspections and maintenance to ensure that all operational vehicles remain in optimal condition, thereby complying with statutory emission standards and effectively avoiding inefficient energy consumption caused by mechanical aging.

During the Year, the Group actively promoted green transportation and adopted online meetings, which effectively reduced the use of vehicles and facilitated the Group in practicing its green development philosophy. A summary of performance is set out in “Appendix I: Summary of Sustainability”.

3.2 Reduction in Waste

The Group continues to improve our solid waste management and encourage the integrated use of waste materials to highlight the emphasis we place on the environmental impact of our operation. As the Group’s business mainly operates in offices, the nonhazardous waste generated by our operations mainly originates from office paper and office garbage.

3.2.1 Hazardous waste

The Group does not generate any direct hazardous waste in the course of its operations. Therefore, the Group has not set any hazardous waste-related targets. The Group has engaged qualified recycler to dispose of obsolete electronic products such as old office computers in a compliant manner to extend the lifespan of the materials. In addition, as the Group uses rental printers, the waste toner cartridges are collected and disposed of by the printer suppliers. If any hazardous waste is generated, the Group will adopt waste disposal measures that comply with government environmental regulations and regulations.

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Environmental, Social and Governance Report

3.2.2 Non-hazardous waste

The non-hazardous waste generated by the Group mainly originates from office paper and office garbage. Of this, office garbage is centrally collected and disposed of by the property management company and is therefore excluded from the statistical data. In order to effectively reduce the production of non-hazardous waste, we promote paperless operation, encourage our employees to use papers on both side, and prioritise the use of environmentally friendly and recyclable materials in the procurement of office supplies. Benefited from the aforementioned management measures and the expansion of office space, the Group’s non-hazardous waste generation for the Year decreased compared to 2024, and the density of non-hazardous waste declined significantly, successfully achieved the waste reduction targets set for 2024. The volume of office paper used is set out in “Appendix I: Summary of Sustainability”. Looking forward, the Group will continue to reduce the generation of non-hazardous waste and strive to achieve the goal of reducing non-hazardous waste density by 5% by 2030, using 2025 as the base year.

3.3 Energy Saving

The Group’s energy consumption mainly generates from the direct energy consumption of gasoline used by vehicles and the indirect energy consumption of purchased electricity. The Group is committed to integrating concept of sustainability into its daily operations and actively adopts energy management to improve energy efficiency. The key energy-saving and emissions-reduction measures we have implemented are as follows:

Adopting high-efficiency appliances and LED lighting systems in full;
Implementing office energy consumption regulations to ensure consumption is based on needs, and assigning dedicated personnel to conduct regular inspections of energy consumption in office areas;
Encouraging employees to prioritise public transportation to reduce their carbon footprint; and
Optimising the server room by gradually adopting virtual servers and highly efficient servers through the introduction of new model servers with high configuration capability, thereby reducing energy consumption and ensuring stable server operation and information security.

The Group will review the effectiveness of these measures from time to time and make adjustments according to different conditions to achieve the best use of resources. During the Year, as the Group continues to implement low-carbon operational strategies, optimise the frequency of vehicle usage to reduce fuel consumption, and further advance various energy-saving measures, the Group’s energy consumption for the Year decreased, thereby successfully achieved the targets set for 2024. A summary of performance is set out in “Appendix I: Summary of Sustainability”. Looking forward, the Group will continue to reduce energy consumption and strive to achieve the goal of reducing energy consumption intensity by 5% by 2030, using 2025 as the base year.

3.4 Water Conservation

During the Year, the Group has not encountered any issue regarding water supply. Fresh water used in our offices is supplied by local municipal governments, and fresh water is supplied to our offices through public means. As a result, we have difficulties in recording and monitoring water consumption information. We are unable to disclose the relevant information and established our environment targets. Nonetheless, we have adopted water conservation measures, including but not limited to:

Placing water conservation slogans in prominent locations of the office area to enhance water conservation awareness among our employees;
Adjusting water pressure appropriately to reduce unnecessary wastage while maintaining normal water supply;
Establishing a regular inspection mechanism to identify potential leakage by monitoring abnormal water meter readings; and

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Implementing a repair reporting process to ensure water resources are used efficiently by immediately contacting the property management department for repairs upon discovering any malfunction in water supply facilities.

The Group will review the effectiveness of these measures from time to time and make adjustments according to different conditions to achieve the best use of resources.

3.5 Climate Change

3.5.1 Responses to Climate Change

With the adoption of the Paris Agreement by the United Nations, climate change has become an important issue for governments and businesses across the globe. The PRC government is also striving to achieve the targets of “carbon emission peak” by 2030 and “carbon neutrality” by 2060. As such, although the Group’s businesses do not involve production and are not affected by the climate directly, the Group continues to closely monitor the impact of climate change on our business and operation. With reference to the framework of International Financial Reporting Standards S2 Climate-related Disclosure, the Group has assessed and identified climate-related risks and corresponding opportunities that have an impact on the Group’s business, and has incorporated climate risks into the enterprise risk management process based on the assessment results to manage and review climate-related risks and seize related opportunities. The climate-related risks identified by the Group and the corresponding response measures are as follows:

Risk Level	Description of Risks	Corresponding Measures
Physical Risks
Low	Acute risks	• Formulate disaster measures
	(flooding, super typhoon, storm	• Provide disaster response training to employees
	surge and extreme rainfall)	• Provide escape drill to employees
	Chronic risks	• Explore the possibility of using renewable energy
	(heat wave and sea level rise)	• Apply highly efficient equipment
Transition Risks
Medium	Policy and regulation risks	• Monitor updates on environmental policies regarding climate
		change, avoid unnecessary increment in cost and expense
		due to violation of environmental policies in relation to
		climate change
		• Include climate change-related content, such as carbon
		emission peak and carbon neutrality in employee training
		schemes
Low	Reputation risk	• Communicate with stakeholders to explain the sustainability
		initiatives that the Group has implemented
	Market risks	• Ongoing focus on sustainable products in the marketplace
		and will consider climate-related risks and opportunities
		• Review sustainable development initiatives on a regular basis

Although the climate change risks identified by the Group do not have a significant impact on its business, the Group will also review the potential impact of climate change on its business annually and adopt corresponding measures to reduce any potential risks. Regarding the newly introduced requirements in Part D: Climate-related Disclosures of the Stock Exchange’s ESG Reporting Code, the Group has reviewed its existing disclosure capabilities, internal resources, and data maturity. We have determined that, at this stage, we will continue to use our existing climate disclosure framework and have not yet fully integrated the new requirements. Looking forward, the Group will continue to refine its methods for collecting climate-related data, as well as its risk management and scenario analysis capabilities. In accordance with the Stock Exchange’s implementation guidelines and timeline, we aim to progressively enhance the transparency and completeness of relevant information to more fully comply with the Stock Exchange’s climate-related disclosure requirements.

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3.5.2 Greenhouse gas emissions

During the Year, the Board and the management of the Group have reviewed the targets set last year in relation to environmental aspect and their progress. We have conducted a greenhouse gas inspection covering the environmental aspect of the Report, and adopted the “Greenhouse Gas Protocol” issued by World Resources Institute and the World Business Council for Sustainable Development and “ISO 14064–1” established by the International Organisation for Standardisation.

The Group’s greenhouse gas emissions mainly generate from the gasoline consumed by vehicles (scope 1), purchased electricity (scope 2) and paper (scope 3) mentioned above. The Group actively adopts power and energy conservation measures to reduce greenhouse gas emissions, including but not limited to:

Strictly monitor the operational status of office equipment, implement energy usage regulations, and minimise unnecessary electricity consumption to the lowest practicable level; and
Regularly inspect vehicles with professional maintenance to ensure compliance with regulatory standards and reduce the risk of inefficient energy consumption caused by equipment aging by maintaining optimal vehicle performance.

During the Year, the Group continued to optimise vehicle deployment efficiency and implement various energy-saving and emission reduction measures, while deepening its digital transformation to advance paperless operation. Benefited from the aforementioned resource management strategies and the expansion of office space, the Group’s greenhouse gas emissions intensity for the Year decreased significantly compared to 2024, successfully achieved the previously set emission reduction targets and signified the Group’s long-term commitment to low-carbon operations. A summary of performance is set out in “Appendix I: Summary of Sustainability”. Looking forward, the Group will continue to reduce greenhouse gas emissions and strive to achieve the goal of reducing greenhouse gas emissions intensity by 5% by 2030, using 2025 as the base year.

4. PEOPLE-ORIENTED

The Group strictly complies with local laws and regulations on operation, including but not limited to the “Labour Contract Law of the PRC”, “Labour Law of the PRC”, “Implementing Regulations of the PRC Labour Contract Law”, “Law of the PRC on the Protection of Minors”, “Prohibition of Child Labour Provisions of the PRC” and “Provisions of Beijing Municipality on Labour Contracts of the PRC”. To create a fair, healthy and safe working environment, the Group has also formulated the Employee Handbook, prohibiting any form of discrimination in terms of gender, age, ethnicity, race or religion.

4.1 Compliant Employment

The Group believes that working together with our employees is the cornerstone of a healthy business. To this end, we are constantly optimising our hiring process. We comprehensively consider the qualifications and abilities of candidates, as well as job requirements, to recruit corresponding talents. We also assess and determine employees’ salaries, benefits and promotion opportunities based on their scope of work, work performance, our results and market conditions to build a diversified team. We will require candidates to provide identity proof during recruiting process to prevent the employment of minors. We enter into legally binding service contracts with successful candidates (hired on a fairground) to protect the legal rights of both parties. The employment contract stipulates detailed requirements on remuneration, working hours, rest days and vacation, social insurance and employee benefits, labour protection and labour condition, to eliminate force labour. In addition, in the event of violation of labour rules, we would, for the benefit of the labour, adopt corresponding actions. For instance, if minors are found in the work force, we would immediately report to relevant labour administrative department. During the Year, the Group was not aware of any violations regarding employment and labour rights.

In addition, where the Group needs to terminate the employment of an employee, the Group will abide by the relevant employment regulations and handle the situation in accordance with internal procedures, and provide reasonable compensation to such employee. The relevant provisions on termination of employment are set out in the Employee Handbook. At December 31, 2025, the Group had a total of 78 employees (2024: 57 employees). The details of total number of employees by category and the turnover rate of employees by category are summarised in “Appendix I: Summary of Sustainability”.

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4.2 Safe Environment

Linekong Interactive pays attention to employees’ physical and mental health and the safety at working places. The Group strictly complies with the “Labour Law of the PRC”, “Fire Protection Law of the PRC”, “Regulation on Work-Related Injury Insurance of the PRC” and other relevant laws and regulations as well as the requirements of industry norms. We have formulated and implemented the Safety Management System to ensure the occupational health and safety of our employees, and we are committed to providing a safe, healthy and comfortable working environment for them. We safeguard the health and safety of employees in three aspects, including working environment, safety training and employee needs. During the past three reporting years (including the Year), there is no work-related fatal accident in the Group. During the Year, no lost day was compromised due to work injury.

We are committed to enhancing our employees’ awareness of health and safety protection. Therefore, we organise safety training for our staff, including fire safety training, to effectively enhance their self-protection capabilities, from time to time. Fire drills include emergency initiatives, rescue procedures, evacuation and assembly, etc., which test the emergency reaction capability of employees from different departments, as well as improve the response capability of employees in case of an emergency and the level of collaboration between the Group and external organisations such as the Fire Department. In addition, we have established occupational health records and provides free annual medical examinations for employees, with a view to enhancing our understanding and attention to the personal health of our employees.

A safe and comfortable working environment is also very important to employees. We manages authorised entry to our office areas to safeguard property safety of our employee and the Group. We perform routine inspection on higher risk locations and post safety tips in the office. We place nearly 100 pots of green plants in the office area to regulate the room temperature and purify the air through the ecological properties of the plants themselves, creating a good office environment. All of our computer screens are height-adjustable to ensure our employees can adopt proper sitting postures. We are equipped with efficient air purifiers and humidifiers to purify indoor air and improve air humidity. Protective masks are also available in the office for our employees to use during smoggy weather.

4.3 Employee Development

Being people oriented, Linekong Interactive is concerned with talent training and development, providing employees with a broad development platform, establishing the Company’s Employees Training System that facilitates employee development and offering high-quality and diverse training courses to employees. In order to meet the developmental needs of employees in different positions, the Group provides our employees with management, expertise and general knowledge learning channels, and organises various sharing and exchange programmes. We aim to create a learning-oriented corporate culture, and thus encourage employees to excel and pursue their career path development. The Company adopts online training, where training contents are recorded online and provided to new employees, in order to facilitate employees in understanding all aspects of the shared contents in a more efficient and convenient manner. Currently, the Company has an on-site briefing session for new employees during their induction progress. On the day new employees sign their labour contracts, staff from our HR department will hold an in-depth briefing on the Employee Handbook to ensure that the new employees have a thorough understanding of the Company’s core terms and conditions. Furthermore, the Company regularly holds induction training for new employees. Each training session will involve around 15 people, with an aim of improving their operation capability and facilitating communication and cooperation, so that they can meet the requirements of their positions in a short period of time and inject new blood for the continuous expansions of the Company’s business. During the Year, the Group has ensured the overall professional development of the staff through on-the-job trainings. The details of percentage of employees trained and average training hours are summarised in “Appendix I: Summary of Sustainability”.

4.4 Remuneration and Benefits

“Being competitive externally, fair internally and providing incentives for employees” are the principles of Linekong Interactive Group Remuneration Management System. Based on the values of their positions, the Group conducts a sufficiently reasonable assessment of employees’ salaries, provides competitive remuneration to employees and establishes various forms of Reward and Punishment Systems to enhance employees’ motivation and stimulate their sense of value and potentials, so as to achieve harmonious development among the enterprise and employees.

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For employee benefits, the Group has established a diversified benefit system to enable employees to feel cared for by us at all times. In previous operations, the Company regularly holds a series of internal activities, such as employee birthday parties and festival celebrations, with an aim of strengthening team cohesion and enrich the spare time of employees. However, given the changes in market environment and adjustments of the Company’s strategy, certain activities were not updated as planned due to budget constraints and the lack of professional training staff. Based on actual situation, the Company has optimized its internal activities and only retained kick-off activities, celebrations for Dragon Boat Festival and Mid-Autumn Festival and other activities. Information on the activities will be timely shared on the DingTalk group to ensure that employees can be informed of the activities as soon as possible and participate in them, while also maintain the atmosphere of the team. For physical and mental health of employees, the Group provide annual medical examinations for all employees, supplemented by commercial insurance, including critical illness insurance, medical insurance and maternity insurance, in order to continuously protect the physical and mental health of employees and strive to safeguard employees’ interests in all aspects.

We provide an open-ended working environment where employees’ voices are valued, and have established robust communication channels and ensured their accessibility. Employees may give feedback on issues through a variety of communication channels, such as e-mails, DingTalk and face-to-face communication. The Group listens to the opinions and suggestions of different employees, guides and encourages them to express their demands rationally, and provides timely feedbacks to protect their rights and interests. There are three assessment points during the probation period, which are in the first, second and third month after admission. In each stage, we will assess the new employees’ adaptation to the Group after their admissions and their work status. For employees who have served the Group for a long time, we also communicate with each of them on a regular basis. The Human Resources Department will take the initiative to approach our employees to understand their corresponding conditions based on business segments, entry status and employees’ conditions. The Group mainly uses face-to-face communication to understand the demands and pain points of our employees, and then discusses with their respective supervisors to formulate a feasible solution, in order to provide follow-ups and feedbacks to them in a timely manner.

5. RESPONSIBLE OPERATION

The Group attaches great importance to operational compliance and strictly prohibits any non-compliance and violation of ethics. We have established corresponding internal protocols on supply chain management, product and service quality control, information security promotion management and anti-corruption. We strictly executes such protocols and committed to continuously provide users with access to quality products and a great service experience.

5.1 Sustainable Procurement

The Group has formulated the Assets Procurement Management Policy and Details (including supplier management) to strictly regulate the process of supplier collection, registration, evaluation, shortlisting and selection. We require all suppliers to uphold high standards of social responsibility. We are committed to long-term cooperation with all suppliers on the principles of fairness, impartiality, integrity and legal compliance, with our Internal Control Department strictly monitoring each process of supplier selection to procurement, and firmly eliminating any form of commercial bribery to establish long-term and mutually beneficial relationships with suppliers.

The Group assesses whether a supplier has a sound quality management system in place, for example whether its quality management system has obtained ISO9000 certification. Secondly, the Group checks a supplier’s qualification information, including place of registration, registered capital, equipment, personnel, major products, main customers, production capacity, performance on social responsibility, industry status and customer information protection, and evaluates its technique, capability, stability of supply, reliability of resources and comprehensive competitiveness. The Group sources and selects the best supplier with highest cost performance from at least two to three suppliers, so as to ensure quality while reducing its total cost. We continue to focus on the environmental and social compliance of our suppliers in respect of health and safety, business ethics, labour standards, employment compliance and environmental compliance to ensure that the products and services used meet or exceed the relevant national requirements and laws and regulations and to improve the overall quality of our services and products. At the same time, we prefer suppliers with “China Environmental Labelling”, so as to select more environmentally friendly products, enhance the recycling and reuse of materials, and practically reduce the adverse impact on the environment in our procurement process. For major procurement, the Procurement Department, together with the originating departments, will conduct onsite investigations and assessments at the suppliers’ factories, third-party freight centers and raw material production sites, which cover the production operation, technology level and working environment of production workers of the supplier in order to ensure relevant standards are met.

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The Group will regularly review and evaluate the selected suppliers. If a supplier is found to have seriously violated the Group’s standards and any environmental and social (such as labour aspect) laws and regulations, it may be temporarily or officially removed from the approved suppliers’ list and the cooperative relationship with it will be permanently terminated. The Group will regularly review and update supplier-related policies and practices to ensure the effectiveness of such policies.

During the Year, the Group reorganised its list of qualified suppliers. There were 478 major suppliers (2024: 647 suppliers), among which, 393 were based in the PRC, 7 in Hong Kong, Macau and Taiwan, and 78 were located overseas. Supplier engagement related practices have been implemented to all major suppliers within the reporting scope.

5.2 Quality Products

One of our highly important issues is “Product Responsibility”. Therefore, Linekong Interactive continues to strengthen the R&D and operational capabilities of its core game business, pay attention to the quality of its products and services and eliminate false advertising. Also, the Group respects and protects the intellectual property rights of all parties, listen to the voices of our customers, improve information security and keep users’ and our information strictly confidential.

5.2.1 Product Quality Guarantee

The Group develops multiple means to improve product quality from product positioning, product development and product testing, and carries out strict control over the quality of products.

In terms of product positioning, the Group tends to launch projects that are compatible to the development team’s capabilities and familiar to the team in terms of directions and categories. With the target product category identified, we analyse various market indicators, competitive product playing rules and game index data. Based on experience and goals of our producers, we innovate and upgrade product game solutions.

In terms of product development, our project team determines the gameplay through in-depth discussions. The team will then focuses on the general art direction and gameplay systems. During the art production phase, various art forms are produced. The art direction is determined after collection of all kinds of data. Our product team works together to complete the game production procedures. During the development process, regular checking of the progress and quality is required, and functional tests are conducted with prompt follow-up to ensure development quality.

In terms of product testing, the Group conducts internal tests and invited tests involving limited players during the product testing phase. The Group collects feedbacks and recommendations on each testing part of the game products from internal communication groups, developer forums and players’ information exchange groups, to review the future direction of our products based on game indicators and data.

During the Year, the Group continued to deepen its strategies on its two major business segments, namely gaming and filming, increased investment in self-operated in key strategic areas, and made the Web3 business as the strategic focus of Linekong Interactive’s future development, in order to reserve strength and inject new blood for the vigorous development of the Group in the long run. Notably, the drama “陷入我們的熱戀” was awarded the Most Anticipated Drama Series award at the 2025 Tencent Video Starlight Award.

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Product portfolio:

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“陷入我們的熱戀”

“陷入我們的熱戀” is one of the major IP reserves of Linekong Pictures, and is adopted from a JinJiang S-tier romance IP and the fiction of the same title written by the famous author Er Dong Tu Zi (耳東兔子). In the drama, after Gaokao, Xu Zhi (徐梔) (starring Liu Haocun (劉浩存)), who seems cruel but is a sweet girl at heart, accidentally meets Chen Luzhou (陳路周) (starring Wang Anyu(王安宇)), a top student who has cold hands but warm heart. The two teenagers in their adolescent start a sweet and youthful romance with their own stories and secrets. “陷入我們的熱戀” is not just a romance story, but also showcases youth, growth, family relationship, family and other elements. With the growth of Xu Zhi (徐梔) and Chen Luzhou (陳路周) as its main plot, the drama tells a story of the struggles, challenges and rewards they face during their growth. The plot of the drama is linked by their family, friendship and love, featuring both tenderness and humour. On top of being entertaining, it also conveys a positive attitude towards life and emotional strength to the audience. The characters strive to shine in their ordinary lives, showing tenacity and passion in times of adversity. Such strong and stable characterisation and storytelling theme is one of the key reasons why Linekong Pictures chose this IP.

5.2.2 Review of Promotional Materials

Regarding the advertising strategy, Linekong Interactive, before the product launch, conducts detailed analysis of user customer profiling, and on the basis of profiling, launches its advertisements at target users efficiently and effectively to attract the most appropriate and relevant users. Pursuant to the “Advertising Law of the PRC”, the “Trademark Law of the PRC” and other laws and regulations, Linekong Interactive has developed the Linekong Interactive Advertising Process to regulate its advertising management. It also maintains regular communication with the advertising platform to keep abreast of changes in rules of the platform. The Group’s advertisements are closely dependent on its products, and their materials mostly originate from the original games, films and TV series, in order to ensure the authenticity and accuracy of advertisements. The Group reviews each advertisement before it is posted to further ensure quality and consistency, and make sure it is compliant and not misleading or deceptive.

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5.2.3 Protection of Intellectual Property Rights

Pursuant to the “Patent Law of the PRC”, the “Trademark Law of the PRC” and other laws and regulations, Linekong Interactive attaches importance to the intellectual property risk management, proactively identifies and manages key risks of intellectual property management, as well as carry out intellectual property management based on identified risks, so as to protect its own intellectual property while respecting the intellectual property of other parties.

For management on business employees, through its Legal Department, externally employed law firms and other professional institutions, the Group pays close attention to and regularly updates judicial developments, such as intellectual property laws and regulation issued by the state and relevant adjudication cases. We maintain communication with relevant business employees to keep them abreast of product and project development, provide them with communication and training on intellectual property laws and regulations to enhance their awareness of intellectual property rights, and improve the Group’s relevant business operations in the light of the newly revised laws and regulations.

Before the launch of products and projects, the Group’s relevant business department submits the declaration requirements of trademarks, copyrights and other intellectual properties to the Legal Department and other relevant functional departments, which employ professional institutions to make preliminary assessment to prevent its products and projects from infringing existing intellectual properties and legal rights in an unintentional way. During the operation process, the Legal Department and other relevant functional departments entrust professional institutions to conduct continuous intellectual property investigations and intellectual property searching in the PRC and related overseas markets to avoid potential infringement on existing trademarks, copyrights and intellectual properties of other entities. The Group also monitors third-party infringement on the Company’s intellectual properties.

When cooperating with partners to develop or operate products and projects, we requires its Legal Department and other relevant functional departments to pay attention to the incorporation and review of confidentiality clauses, and intellectual property ownership and use clauses at the stage of signing of the cooperation agreement, so as to clarify the ownership of rights between us and the partners.

During the Year, the Group owned 1,284 intellectual property rights, including 1,077 trademarks and 207 copyrights.

5.2.4 Safeguard Customers’ Rights

Linekong Interactive carries out measures to prevent minors from addiction to online games, all online products are equipped with an anti-addiction system for minors. In addition, pursuant to the “Notice of the National Press and Publication Administration on Further Strict Management to Effectively Prevent Minors from Indulging in Online Games” of the PRC, all game users are required to use valid ID for game account registration, and the length of time that minors spend on online games is strictly controlled. Under rigorous control through internal system setting, minors are only allowed to play games at certain times, and the provision of paid services to minors is restricted. With an aim to lead by example and build a healthy online game industry, the Group, the Game Publications Committee of the China audio-video and Digital Publishing Association, along with over 200 gaming business units, collectively initiated the “Anti-addiction to Online Games Selfdisciplined Convention” under the instruction of the competent department of the PRC.

Linekong Interactive has formulated the Complaint Handling Process of Linekong Interactive Customer Service Centre and has established customer communication channels including customer service hotline, WeChat customer service, and QQ customer service to build a comprehensive and smooth communication channel with our customers. We have also engaged professional external customer service teams. In order to ensure quality of the external service providers, the admission, guidance, supervision and training for which are performed by our staff at the supervisor level or above from Linekong Interactive Customer Service Department to enhance the efficiency, quality and professionalism of services.

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The Group manages customer complaints through adopting the policies and principles of “clear accountabilities, clear escalation reporting process, prompt response, business integrity and compliance, timely recording, and replace thinking”, and requires the relevant personnel in charge to handle complaints and provide feedbacks to customers in a timely manner. To deal with common complaints, we have formulated relevant processing procedures to handle daily problems efficiently. We also have established complaint handling procedures for those emergencies or difficult cases which require involvement of customer service officer with extensive experience, to directly communicate with the relevant department staff to understand and analyse the problems, devise reasonable solutions from the perspectives of users and products, and subsequently communicate with users, striving to ensure customer satisfaction.

During the Year, our customer service tool calculated that the overall satisfaction rate based on users’ ratings of the Group was 94.57%. The Group received a total of 25 complaints (2024: 6 complaints), with a resolved rate of 100% and a call-back rate of 100%.

5.2.5 Maintain Information Security

Pursuant to the “Network Security Law of the PRC”, the “Information Security Technology — Personal Information Security Specification of the PRC” and other laws and regulations, Linekong Interactive, with an important mission of protecting information security, provides customers with an excellent product experience while closely securing customer privacy. We have established a dedicated Information Security Management Team to be responsible for managing and supervising our information security, project security and equipment security. The Group has prepared the Service Quality Management System and the Confidential Work Management System, and has signed a Non-Disclosure and Non-Competing Agreement with employees to properly manage information confidentiality. During the Year, we have not received any complaints regarding leakage of customer information or violation of customer privacy policies.

In terms of protecting customers’ information security, for positions that regularly access to customer information, we adopt an authority access control to ensure the normal operation of the business and prevent excessive access to customer information. User privacy information is encrypted and stored on the hardware server with protection measures. Accessing to customer data requires multiple layers of approvals, and approval is required for physical access to a computer room that hosts our hardware server, so as to effectively protect information security.

In terms of safeguarding the confidential information, the Group’s R&D data can only be transmitted and copied using a special purpose computer upon the approval of members of the safety management team. We regularly back up the data of each department and perform physical archiving of intranet R&D data on mobile hard disks regularly to ensure the safety of important data; equip the computer room with multiple storage servers, create automatic backup scripts for important R&D computer mainframes, and perform data backups on time every day to ensure the security of server data. Data leakage prevention system is installed on all machines connected to internal network, and R&D computers are equipped with external iron box to prohibit the use of USB and sensitive information transmission monitoring system. Our R&D network is an independent office network with strict access management, and the equipment connected to the R&D network must be strictly controlled.

Although the Group has a strict data security system in place, we have also formulated the Safety and Emergency Response Plan for Information Leakage based on the principles of “put prevention first and strengthen monitoring, put people first and focus on cooperation, standardise operation and be well-prepared”. We strengthen awareness of information security among our employees, enhance technical measures and reserves for data confidentiality and data leakage, improve monitoring, detection and response measures, standardise emergency disposal measures and operational procedures for information leakage. We strengthen inter-departmental cooperation to ensure effective contingency planning, rapid control of the affected areas and minimisation of losses.

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5.3 Business Ethics

Linekong Interactive is committed to creating an honest and fair working environment. In the daily operations and management, the Group strictly abides by “Company Law of the PRC”, “Anti-Money Laundering Law of the PRC”, “Oversight Law of the PRC”, “Criminal Law of the PRC” and other relevant laws and regulations, as well as moral codes. We also pay close attention to the amendment and updates on such laws and regulations, and timely inspect the operation and management of the Group. All kinds of corruption are strictly prohibited, including but not limited to bribery, blackmail, fraud and money laundry, etc., so as to ensure that the daily operations of the Group are in line with the laws and regulations on anti-corruption and anti-money laundering.

The Group has formulated a series of internal policies and systems, including the Reporting Management System, to ensure compliance with anti-corruption and anti-money laundering. We have established whistle-blower with reporting channels such as email and hotline available to internal and external public reporting. Our employees may report any misconduct or illegal behaviours existed within the Group via email or hotline, or directly notify the leaders of relevant departments or the chairman of the Group’s Audit Committee. In case of a confirmed incident, we would handle it in accordance with the internal protocol and in compliance with regulations. All reporting is handled in a prudent and confidential manner to firmly prohibit retaliation against the whistleblowers.

The Group organises anti-bribery and anti-corruption training for internal employees on a regular basis every year, and adopts different training methods for employees in different positions. The Group requires its business personnel to inform customers and suppliers of the Group’s Anti-corruption and Anti-bribery Policies during negotiations and sign contracts that expressly prohibit such behaviours. During the Year, a total of 75 employees of the Group attended 75 hours of anti-corruption training to enhance their awareness on anti-corruption and the ability to identify corruption incidents.

During the Year, the Group has not been involved in any material behaviours of corruption, money laundry and bribery, and there were no concluded corruption litigation cases (2024: 0 case).

6. COMMUNITY WELFARE

Linekong Interactive is committed to becoming a responsible corporate citizen and providing appropriate resources to those in need in the community. Although the Group has not yet launched any community welfare activities during the Year, we will actively seek cooperation with different public welfare and charity organisations in the next year, always paying attention to the difficulties and needs of society and disadvantaged groups, such as labour needs and health, and proactively return to society with the goal of promoting social harmony.

We believe that through social welfare activities, the Group can establish positive values for our employees and ultimately become a socially responsible citizen. We encourage and support employees to participate in voluntary services during spare time, and have formulated the Public Welfare Activities Policy to arrange for the Group’s employees to participate in environmental protection, public welfare and social service activities. We hope that by participating in community activities, employees can personally contribute to the community, thereby enhancing their awareness of caring and cultivating their sense of social responsibility. Linekong Interactive has also established a good communication mechanism in the communities where it operates, to understand community needs, capture community dynamics, listen to community expectations, and carry out diversified public welfare activities based on their needs, while considering the impact on the community that may arise from our business.

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Appendix I: Summary of Sustainability

Below sets forth the summary of sustainability information in the environmental aspect during the Year:

Environmental Aspect	Unit	2025	2024
Exhaust Gas Emissions1
Nitrogen oxides (NOX)	kg	0.22	0.43
Sulphur oxides (SOX)	kg	0.0042	0.01
Particulates (PM)	kg	0.02	0.03
Greenhouse Gas Emissions3
Direct greenhouse gas emissions (Scope 1) — gasoline	tonnes of CO2e	0.69	1.41
Energy indirect greenhouse gas emissions (Scope 2) —
purchased electricity	tonnes of CO2e	85.27	121.31
Other indirect greenhouse gas emissions (Scope 3) — paper	tonnes of CO2e	1.32	1.55
Total greenhouse gas emissions	tonnes of CO2e	87.28	124.27
Greenhouse gas emissions intensity	tonnes of CO2e/m24	0.04	0.09
Non-hazardous Waste
Paper	kg	274.68	323.00
Total non-hazardous waste	kg	274.68	323.00
Non-hazardous waste intensity	kg/m2	0.12	0.24
Energy Consumption5
Direct energy consumption — gasoline	MWh	2.52	5.12
Indirect energy consumption — purchased electricity	MWh	147.60	195.51
Total energy consumption	MWh	150.12	200.63
Energy consumption intensity	MWh/m2	0.07	0.15

1 The calculation of exhaust gas emissions data is based on the “How to prepare an ESG Report — Appendix 2: Reporting Guidance on Environmental KPIs” issued by the Stock Exchange.
2 This figure is disclosed to three decimal places to provide a more precise reference and ensure data comparability.
3 Greenhouse gas emissions information is presented in terms of carbon dioxide equivalent, with reference to, but not limited to, the “Greenhouse Gas Protocol: Corporate Accounting and Reporting Standards” issued by the World Resources Institute and the World Business Council for Sustainable Development, the “How to prepare an ESG Report — Appendix 2: Reporting Guidance on Environmental KPIs” issued by the Stock Exchange, the global warming potential value under the “Sixth Assessment Report” issued by the Intergovernmental Panel on Climate Change, and the “Announcement on the Publishing of Electricity Carbon Footprint Factor Data of 2023” issued by Ministry of Ecology and Environment of the PRC.
4 On December 31, 2025, the Group’s total office area was approximately 2,234.44 m[2] (2024: 1,344.05 m[2] ). This information will also be used to calculate other intensity data.
5 The unit conversion method for energy consumption data is based on the “Energy Statistics Manual” issued by the International Energy Agency.

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Below sets forth the summary of sustainability information in the social aspect during the Year:

Social Aspect	Unit	2025	2024
Number of Employees
Total number of employees6	number of persons	78	57
By gender
Female	number of persons	30	28
Male	number of persons	48	29
By employment type
Employees with labour contracts	number of persons	72	54
Others	number of persons	6	3
By age group
Under 40	number of persons	49	41
40–49	number of persons	26	13
50 or above	number of persons	3	3
By geographical region
Beijing, PRC	number of persons	70	52
Other regions in PRC	number of persons	4	0
Overseas	number of persons	4	5
Turnover Rate7
Total turnover rate	%	36.62	61.74
By gender
Female	%	40.82	53.44
Male	%	33.04	66.13
By age group
Under 40	%	45.78	66.86
40–49	%	4.88	18.18
50 or above	%	/	/
By geographical region
Beijing, PRC	%	35.79	63.36
Other regions in PRC	%	66.67	66.67
Overseas	%	18.18	15.38
Occupational Health and Safety
Number of work-related fatalities8	number of persons	/	/
Work-related fatalities rate	%	/	/
Number of lost days due to work injury	number of days	/	/

6 This represents the number of employees on December 31. 7 Turnover rate = number of turnover employee/(number of turnover employee + average number of employee for the Year)×100%. Average number of employee for the Year = (number of employee at the end of the previous year + number of employee at the end of the Year)/2.
8 There have been no work-related fatalities in the past three years (including the Year).

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Social Aspect	Unit	2025	2024
Trained Employee Rate
Total trained employee rate9	%	44.87	29.82
By gender10
Female	%	57.14	47.06
Male	%	42.86	52.94
By employment type
General employees	%	62.96	100.00
Middle management	%	37.04	/
Senior management	%	/	/
Average Training Hours
The average training hours completed per employee11	number of hours	3.21	0.14
By gender12
Female	number of hours	4.20	0.14
Male	number of hours	2.58	0.14
By employment type
General employees	number of hours	1.92	0.22
Middle management	number of hours	7.33	/
Senior management	number of hours	/	/
Sustainable Procurement
Total number of suppliers	company	478	647
By geographical region
The PRC	company	393	552
Hong Kong, Macau and Taiwan of the PRC	company	7	6
Overseas	company	78	89
Safeguard Customers’ Right
Number of product and service complaints	case	25	6
Product and service complaint settlement rate	%	100.00	100.00
Product and service complaint response rate	%	100.00	100.00
Business Ethics
Concluded corruption litigation case	case	/	/

9 Total trained employee rate = total number of trained employees/number of employees on December 31 x 100%.

10 Trained Employee Rate by category = number of trained employees by category/total number of trained employees x 100%.

11 Average training hours completed per employee = total training hours/number of employees as of December 31.

12 Average training hours of employees by category = number of training hours of employees by category/number of employees on December 31.

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Environmental, Social and Governance Report

Appendix II: Index Table for the Stock Exchange Reporting Code

	Part C: “Comply or explain” Provisions
	Subject Areas, Aspects, General Disclosures and KPIs
Aspect	Description	Relevant Chapter
A. Environmental
Aspect A1: Emissions
General Disclosure	General Disclosure
	Information on:	“3. Green Practice”
	(a) the policies; and
	(b) compliance with relevant laws and regulations that have
	a significant impact on the issuer relating to air emissions,
	discharges into water and land, and generation of hazardous and
	non-hazardous waste.
KPI A1.1	The types of emissions and respective emissions data.	Appendix I: Summary of Sustainability
KPI A1.3	Total hazardous waste produced (in tonnes) and, where appropriate,
	intensity (e.g. per unit of production volume, per facility).
KPI A1.4	Total non-hazardous waste produced (in tonnes) and, where
	appropriate, intensity (e.g. per unit of production volume, per facility).
KPI A1.5	Description of emission target(s) set and steps taken to achieve them.	“3. Green Practice”
KPI A1.6	Description of how hazardous and non-hazardous wastes are handled,	“3.2 Reduction in Waste”
	and a description of reduction target(s) set and steps taken to achieve
	them.
Aspect A2: Use of Resources
General Disclosure	General Disclosure	“3. Green Practice”
	Policies on the efficient use of resources, including energy, water and
	other raw materials.
KPI A2.1	Direct and/or indirect energy consumption by type (e.g. electricity, gas	Appendix I: Summary of Sustainability
	or oil) in total (kWh in '000s) and intensity (e.g. per unit of production
	volume, per facility).
KPI A2.2	Water consumption in total and intensity (e.g. per unit of production	As the Group’s office is obtained
	volume, per facility).	through common use of other
		companies, water consumption
		and monitoring is not accessible,
		therefore no disclosure is made.
KPI A2.3	Description of energy use efficiency target(s) set and steps taken to	“3. Green Practice”
	achieve them.
KPI A2.4	Description of whether there is any issue in sourcing water that is fit for	Water consumption is managed by
	purpose, water efficiency target(s) set and steps taken to achieve them.	property management company,
		hence the Group does not encounter
		any issue regarding water supply,
		and has no relevant information and
		therefore no targets are set.
KPI A2.5	Total packaging material used for finished products (in tonnes) and, if	The Group’s business does not involve
	applicable, with reference to per unit produced.	packaging materials, therefore it is
		not applicable.
Aspect A3: The Environment and Natural Resources
General Disclosure	Policies on minimising the issuer's significant impacts on the environment	“3. Green Practice”
	and natural resources.
KPI A3.1	Description of the significant impacts of activities on the environment	“3. Green Practice”
	and natural resources and the actions taken to manage them.

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Environmental, Social and Governance Report

	Part C: “Comply or explain” Provisions
	Subject Areas, Aspects, General Disclosures and KPIs
Aspect	Description	Relevant Chapter
B. Social
Aspect B1: Employment
General Disclosure	General Disclosure
	Information on:	“4. People-oriented”
	(a) the policies; and
	(b) compliance with relevant laws and regulations that have a
	significant impact on the issuer relating to compensation and
	dismissal, recruitment and promotion, working hours, rest
	periods, equal opportunity, diversity, anti-discrimination, and
	other benefits and welfare.
KPI B1.1	Total workforce by gender, employment type (for example, full-or part-	“4.1 Compliant Employment”
	time), age group and geographical region.	Appendix I: Summary of Sustainability
KPI B1.2	Employee turnover rate by gender, age group and geographical region.	Appendix I: Summary of Sustainability
Aspect B2: Health and Safety
General Disclosure	General Disclosure
	Information on:	“4.2 Safe Environment”
	(a) the policies; and	Appendix I: Summary of Sustainability
	(b) compliance with relevant laws and regulations that have
	a significant impact on the issuer relating to providing a
	safe working environment and protecting employees from
	occupational hazards.
KPI B2.1	Number and rate of work-related fatalities occurred in each of the past
	three years including the reporting year.
KPI B2.2	Lost days due to work injury.
KPI B2.3	Description of occupational health and safety measures adopted, and
	how they are implemented and monitored.
Aspect B3: Development	and Training
General Disclosure	General Disclosure	“4.3 Employee Development”
	Policies on improving employees' knowledge and skills for discharging	Appendix I: Summary of Sustainability
	duties at work. Description of training activities.
KPI B3.1	The percentage of employees trained by gender and employee category
	(e.g. senior management, middle management).
KPI B3.2	The average training hours completed per employee by gender and
	employee category.
Aspect B4: Labour Standards
General Disclosure	General Disclosure
	Information on:	“4.1 Compliant Employment”
	(a) the policies; and
	(b) compliance with relevant laws and regulations that have a
	significant impact on the issuer relating to preventing child and
	forced labour.
KPI B4.1	Description of measures to review employment practices to avoid child
	and forced labour.
KPI B4.2	Description of steps taken to eliminate such practices when discovered.
Aspect B5: Supply Chain	Management
General Disclosure	General Disclosure	“5.1 Sustainable Procurement”
	Policies on managing environmental and social risks of the supply chain.	Appendix I: Summary of Sustainability
KPI B5.1	Number of suppliers by geographical region.

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Environmental, Social and Governance Report

	Part C: “Comply or explain” Provisions
	Subject Areas, Aspects, General Disclosures and KPIs
Aspect	Description	Relevant Chapter
KPI B5.2	Description of practices relating to engaging suppliers, number of
	suppliers where the practices are being implemented, and how they are
	implemented and monitored.
KPI B5.3	Description of practices used to identify environmental and social risks
	along the supply chain, and how they are implemented and monitored.
KPI B5.4	Description of practices used to promote environmentally preferable
	products and services when selecting suppliers, and how they are
	implemented and monitored.
Aspect B6: Product Responsibility
General Disclosure	General Disclosure
	Information on:	“5.2 Quality Products”
	(a) the policies; and
	(b) compliance with relevant laws and regulations that have a
	significant impact on the issuer relating to health and safety,
	advertising, labelling and privacy matters relating to products and
	services provided and methods of redress.
KPI B6.1	Percentage of total products sold or shipped subject to recalls for safety	The Group’s business does not involve
	and health reasons.	the sales and shipment of products
		that are subject to recall, therefore it
		is not applicable.
KPI B6.2	Number of products and service related complaints received and how	“5.2.4 Safeguard Customers’ Right”
	they are dealt with.
KPI B6.3	Description of practices relating to observing and protecting intellectual	“5.2.3 Protection of Intellectual
	property rights.	Property Rights”
KPI B6.4	Description of quality assurance process and recall procedures.	“5.2.1 Product Quality Guarantee”
KPI B6.5	Description of consumer data protection and privacy policies, and how	“5.2.5 Maintain Information Security”
	they are implemented and monitored.
Aspect B7: Anti-corruption
General Disclosure	General Disclosure
	Information on:	“5.3 Business Ethics”
	(a) the policies; and
	(b) compliance with relevant laws and regulations that have a
	significant impact on the issuer relating to bribery, extortion,
	fraud and money laundering.
KPI B7.1	Number of concluded legal cases regarding corrupt practices brought
	against the issuer or its employees during the reporting period and the
	outcomes of the cases.
KPI B7.2	Description of preventive measures and whistle-blowing procedures, and
	how they are implemented and monitored.
KPI B7.3	Description of anti-corruption training provided to directors and staff.
Aspect B8: Community Investment
General Disclosure	General Disclosure
	Policies on community engagement to understand the needs of the	“6. Community Welfare”
	communities where the issuer operates and to ensure its activities take
	into consideration the communities' interests.
KPI B8.1	Focus areas of contribution (e.g. education, environmental concerns,
	labour needs, health, culture, sport).
KPI B8.2	Resources contributed (e.g. money or time) to the focus area.

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Environmental, Social and Governance Report

Part D: Climate-related Disclosures

(I) Governance 19. (a) the governance body(s) (which can include a board, committee or equivalent body charged with governance) or individual(s) responsible for oversight of climate-related risks and opportunities. Specifically, the issuer shall identify that body(s) or individual(s) and disclose information about: (i) how the body(s) or individual(s) determines whether appropriate skills and competencies are available or will be developed to oversee strategies designed to respond to climate-related risks and opportunities;
(ii) how and how often the body(s) or individual(s) is informed about climate-related risks and opportunities;
(iii) how the body(s) or individual(s) takes into account climate-related risks and opportunities when overseeing the issuer’s strategy, its decisions on major transactions, and its risk management processes and related policies, including whether the body(s) or individual(s) has considered trade-offs associated with those risks and opportunities;
(iv) how the body(s) or individual(s) oversees the setting of, and monitors progress towards, targets related to climaterelated risks and opportunities (see paragraphs 37 to 40), including whether and how related performance metrics are included in remuneration policies (see paragraph 35); and

“3.5 Climate Change”

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

(b) management’s role in the governance processes, controls and procedures used to monitor, manage and oversee climate-related risks and opportunities, including information about:
(i) whether the role is delegated to a specific managementlevel position or management-level committee and how oversight is exercised over that position or committee; and
(ii) whether management uses controls and procedures to support the oversight of climate-related risks and opportunities and, if so, how these controls and procedures are integrated with other internal functions.

(II) Strategy Climate-related risks and opportunities

An issuer shall disclose information to enable an understanding of climate-related risks and opportunities that could reasonably be expected to affect the issuer’s cash flows, its access to finance or cost of capital over the short, medium or long term. Specifically, the issuer shall:

“3.5 Climate Change”

(a) describe climate-related risks and opportunities that could reasonably be expected to affect the issuer’s cash flows, its access to finance or cost of capital over the short, medium or long term;
(b) explain, for each climate-related risk the issuer has identified, whether the issuer considers the risk to be a climate-related physical risk or climate-related transition risk;
(c) specify, for each climate-related risk and opportunity the issuer has identified, over which time horizons — short, medium or long term — the effects of each climate-related risk and opportunity could reasonably be expected to occur; and
(d) explain how the issuer defines ’short term’, ‘medium term’ and ‘long term’ and how these definitions are linked to the planning horizons used by the issuer for strategic decision-making.

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Environmental, Social and Governance Report

Part D: Climate-related Disclosures

Business model and value chain

An issuer shall disclose information that enables an understanding of the current and anticipated effects of climate-related risks and opportunities on the issuer’s business model and value chain. Specifically, the issuer shall disclose:

(a) a description of the current and anticipated effects of climaterelated risks and opportunities on the issuer’s business model and value chain; and

(b) a description of where in the issuer’s business model and value chain climate-related risks and opportunities are concentrated (for example, geographical areas, facilities and types of assets). 22. An issuer shall disclose information that enables an understanding of the effects of climate-related risks and opportunities on its strategy and decision-making. Specifically, the issuer shall disclose: (a) information about how the issuer has responded to, and plans to respond to, climate-related risks and opportunities in its strategy and decision-making, including how the issuer plans to achieve any climate-related targets it has set and any targets it is required to meet by law or regulation. Specifically, the issuer shall disclose information about:

Undisclosed

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

Undisclosed

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

(i) current and anticipated changes to the issuer’s business model, including its resource allocation, to address climate-related risks and opportunities;
(ii) current and anticipated adaptation and mitigation efforts (whether direct or indirect);
(iii) any climate-related transition plan the issuer has (including information about key assumptions used in developing its transition plan, and dependencies on which the issuer’s transition plan relies), or an appropriate negative statement where the issuer does not have a climaterelated transition plan;
(iv) how the issuer plans to achieve any climate-related targets (including any greenhouse gas emissions targets (if any)), described in accordance with paragraphs 37 to 40; and
(b) information about how the issuer is resourcing, and plans to resource, the activities disclosed in accordance with paragraph 22(a).

An issuer shall disclose information about the progress of plans disclosed in previous reporting periods in accordance with paragraph 22(a).

Undisclosed

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

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Environmental, Social and Governance Report

Part D: Climate-related Disclosures

Financial position, financial performance and cash flows 24 An issuer shall disclose qualitative and quantitative information about: (a) how climate-related risks and opportunities have affected its financial position, financial performance and cash flows for the reporting period; and (b) the climate-related risks and opportunities identified in paragraph 24(a) for which there is a significant risk of a material adjustment within the next annual reporting period to the carrying amounts of assets and liabilities reported in the related financial statements. 25 The issuer shall provide qualitative and quantitative disclosures about: (a) how the issuer expects its financial position to change over the short, medium and long term, given its strategy to manage climate-related risks and opportunities, taking into consideration: (i) its investment and disposal plans; and (ii) its planned sources of funding to implement its strategy; and (b) how the issuer expects its financial performance and cash flows to change over the short, medium and long term, given its strategy to manage climate-related risks and opportunities. Climate resilience 26 An issuer shall disclose information that enables an understanding of the resilience of the issuer’s strategy and business model to climate-related changes, developments and uncertainties, taking into consideration the issuer’s identified climate-related risks and opportunities. An issuer shall use climate-related scenario analysis to assess its climate resilience using an approach that is commensurate with an issuer’s circumstances. In providing quantitative information, the issuer may disclose a single amount or a range. Specifically, the issuer shall disclose:

Undisclosed

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

Undisclosed

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

Undisclosed

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

(a) the issuer’s assessment of its climate resilience as at the reporting date, which shall enable an understanding of:

(i) the implications, if any, of the issuer’s assessment for its strategy and business model, including how the issuer would need to respond to the effects identified in the climate-related scenario analysis;

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(ii) the significant areas of uncertainty considered in the issuer’s assessment of its climate resilience; and
(iii) the issuer’s capacity to adjust, or adapt its strategy and business model to climate change over the short, medium or long terms;
(b) how and when the climate-related scenario analysis was carried out, including:
(i) information about the inputs used, including:
- (1) which climate-related scenarios the issuer used for the analysis and the sources of such scenarios;
- (2) whether the analysis included a diverse range of climate-related scenarios;
- (3) whether the climate-related scenarios used for the analysis are associated with climate-related transition risks or climate-related physical risks;

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Environmental, Social and Governance Report

Part D: Climate-related Disclosures

(4) whether the issuer used, among its scenarios, a climate-related scenario aligned with the latest international agreement on climate change; (5) why the issuer decided that its chosen climaterelated scenarios are relevant to assessing its resilience to climate-related changes, developments or uncertainties; (6) time horizons the issuer used in the analysis; and (7) what scope of operations the issuer used in the analysis (for example, the operation, locations and business units used in the analysis); (ii) the key assumptions the issuer made in the analysis; and (iii) the reporting period in which the climate-related scenario analysis was carried out. (III) Risk Management 27 An issuer shall disclose information about: Undisclosed (a) the processes and related policies it uses to identify, assess, prioritise and monitor climate-related risks, including information The Group will review the internal about: information and further disclose (i) the inputs and parameters the issuer uses (for example, relevant content when appropriate to information about data sources and the scope of ensure transparency and compliance. operations covered in the processes); (ii) whether and how the issuer uses climate-related scenario analysis to inform its identification of climate-related risks; (iii) how the issuer assesses the nature, likelihood and magnitude of the effects of those risks (for example, whether the issuer considers qualitative factors, quantitative thresholds or other criteria); (iv) whether and how the issuer prioritises climate-related risks relative to other types of risks; (v) how the issuer monitors climate-related risks; and (vi) whether and how the issuer has changed the processes it uses compared with the previous reporting period; (b) the processes the issuer uses to identify, assess, prioritise and monitor climate-related opportunities (including information about whether and how the issuer uses climate-related scenario analysis to inform its identification of climate-related opportunities); and (c) the extent to which, and how, the processes for identifying, assessing, prioritising and monitoring climate-related risks and opportunities are integrated into and inform the issuer’s overall risk management process.

(IV) Metrics and Targets

Greenhouse gas emissions

An issuer shall disclose its absolute gross greenhouse gas emissions “3.5.2 Greenhouse gas emissions” generated during the reporting period, expressed as metric tons of CO2 equivalent, classified as:

(a) Scope 1 greenhouse gas emissions;
(b) Scope 2 greenhouse gas emissions; and

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Part D: Climate-related Disclosures
29 An issuer shall: “3.5.2 Greenhouse gas emissions” (a) measure its greenhouse gas emissions in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and The Group will review the internal Reporting Standard (2004) unless required by a jurisdictional information and further disclose authority or another exchange on which the issuer is listed to use relevant content when appropriate to a different method for measuring greenhouse gas emissions; ensure transparency and compliance.
(b) disclose the approach it uses to measure its greenhouse gas emissions including: (i) the measurement approach, inputs and assumptions the issuer uses to measure its greenhouse gas emissions;
(ii) the reason why the issuer has chosen the measurement approach, inputs and assumptions it uses to measure its greenhouse gas emissions; and
(iii) any changes the issuer made to the measurement approach, inputs and assumptions during the reporting period and the reasons for those changes;
(c) for Scope 2 greenhouse gas emissions disclosed in accordance with paragraph 28(b), disclose its location-based Scope 2 greenhouse gas emissions, and provide information about any contractual instruments that is necessary to enable an understanding of the issuer’s Scope 2 greenhouse gas emissions; and
(d) for Scope 3 greenhouse gas emissions disclosed in accordance with paragraph 28(c), disclose the categories included within the issuer’s measure of Scope 3 greenhouse gas emissions, in accordance with the Scope 3 categories described in the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011).
Climate-related transition risks 30 An issuer shall disclose the amount and percentage of assets or business Undisclosed activities vulnerable to climate-related transition risks.

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

Climate-related physical risks 31 An issuer shall disclose the amount and percentage of assets or business activities vulnerable to climate-related physical risks.

Undisclosed

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

Climate-related opportunities

32 An issuer shall disclose the amount and percentage of assets or business activities aligned with climate-related opportunities.

Undisclosed

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

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Environmental, Social and Governance Report

Part D: Climate-related Disclosures

	Part D: Climate-related Disclosures
Capital deployment
33	An issuer shall disclose the amount of capital expenditure, financing or	Undisclosed
	investment deployed towards climate-related risks and opportunities.
		The Group will review the internal
		information and further disclose
		relevant content when appropriate to
		ensure transparency and compliance.
Internal carbon prices
34	An issuer shall disclose:	Undisclosed
	(a) an explanation of whether and how the issuer is applying
	a carbon price in decision-making (for example, investment	The Group will review the internal
	decisions, transfer pricing, and scenario analysis); and	information and further disclose
	(b) the price of each metric tonne of greenhouse gas emissions the	relevant content when appropriate to
	issuer uses to assess the costs of its greenhouse gas emissions;	ensure transparency and compliance.
	or an appropriate negative statement that the issuer does not
	apply a carbon price in decision-making.
Remuneration
35	An issuer shall disclose whether and how climate-related considerations	Undisclosed
	are factored into remuneration policy, or an appropriate negative
	statement. This may form part of the disclosure under paragraph 19(a)	The Group will review the internal
	(iv).	information and further disclose
		relevant content when appropriate to
		ensure transparency and compliance.
Industry-based metrics
36	An issuer is encouraged to disclose industry-based metrics that are	Undisclosed
	associated with one or more particular business models, activities or
	other common features that characterise participation in an industry.	The Group will review the internal
	In determining the industry-based metrics that the issuer discloses, an	information and further disclose
	issuer is encouraged to refer to and consider the applicability of the	relevant content when appropriate to
	industry-based metrics associated with disclosure topics described in	ensure transparency and compliance.
	the IFRS S2 Industry-based Guidance on implementing Climate-related
	Disclosures and other industry-based disclosure requirements prescribed
	under other international ESG reporting frameworks.

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Part D: Climate-related Disclosures

		Part D: Climate-related Disclosures
Climate-related targets
37	An	issuer shall disclose (a) the qualitative and quantitative climate-
	related targets the issuer has set to monitor progress towards achieving
	its strategic goals; and (b) any targets the issuer is required to meet by
	law or regulation, including any greenhouse gas emissions targets. For
	each target, the issuer shall disclose:
	(a)	the metric used to set the target;
	(b)	the objective of the target (for example, mitigation, adaptation or
		conformance with science-based initiatives);
	(c)	the part of the issuer to which the target applies (for example,
		whether the target applies to the issuer in its entirety or only a
		part of the issuer, such as a specific business unit or geographic
		region);
	(d)	the period over which the target applies;
	(e)	the base period from which progress is measured;
	(f)	milestones or interim targets (if any);
	(g)	if the target is quantitative, whether the target is an absolute
		target or an intensity target; and
	(h)	how the latest international agreement on climate change,
		including jurisdictional commitments that arise from that
		agreement, has informed the target.
38	An	issuer shall disclose information about its approach to setting and
	reviewing each target, and how it monitors progress against each target,
	including:
	(a)	whether the target and the methodology for setting the target
		has been validated by a third party;
	(b)	the issuer’s processes for reviewing the target;
	(c)	the metrics used to monitor progress towards reaching the
		target; and
	(d)	any revisions to the target and an explanation for those revisions.
39	An	issuer shall disclose information about its performance against each
	climate-related target and an analysis of trends or changes in the issuer’s
	performance.

“3.5.2 Greenhouse gas emissions”

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

Undisclosed

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

Undisclosed

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

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Environmental, Social and Governance Report

Part D: Climate-related Disclosures

		Part D: Climate-related Disclosures
40	For	each greenhouse gas emissions target disclosed in accordance with	“3.5.2 Greenhouse gas emissions”
	paragraphs 37 to 39, an issuer shall disclose:
	(a)	which greenhouse gases are covered by the target;	The Group will review the internal
	(b)	whether Scope 1, Scope 2 or Scope 3 greenhouse gas emissions	information and further disclose
		are covered by the target;	relevant content when appropriate to
	(c)	whether the target is a gross greenhouse gas emissions target or	ensure transparency and compliance.
		a net greenhouse gas emissions target. If the issuer discloses a
		net greenhouse gas emissions target, the issuer is also required to
		separately disclose its associated gross greenhouse gas emissions
		target;
	(d)	whether the target was derived using a sectoral decarbonisation
		approach; and
	(e)	the issuer’s planned use of carbon credits to offset greenhouse
		gas emissions to achieve any net greenhouse gas emissions
		target. In explaining its planned use of carbon credits, the issuer
		shall disclose:
		(i) the extent to which, and how, achieving any net
		greenhouse gas emissions target relies on the use of
		carbon credits;
		(ii) which third-party scheme(s) will verify or certify the carbon
		credits;
		(iii) the type of carbon credit, including whether the
		underlying offset will be nature-based or based on
		technological carbon removals, and whether the
		underlying offset is achieved through carbon reduction or
		removal; and
		(iv) any other factors necessary to enable an understanding of
		the credibility and integrity of the carbon credits the issuer
		plans to use (for example, assumptions regarding the
		permanence of the carbon offset).

Applicability of cross-industry metrics and industry-based metrics

In preparing disclosures to meet the requirements in paragraphs 21 to 26 and 37 to 38, an issuer shall refer to and consider the applicability of cross-industry metrics (see paragraphs 28 to 35) and (ii) industry-based metrics (see paragraph 36).

Undisclosed

The Group will review the internal information and further disclose relevant content when appropriate to ensure transparency and compliance.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW

The Group is principally engaged in developing and publishing online games in the PRC and other countries and regions, and film business in the PRC. The Group is a well-known platform operator of interactive entertainment contents. It owns two core brands in the entertainment industry, namely Linekong Games and Linekong Pictures, and fully commenced the Web3 business in 2024. The principal activities and other particulars of the Company’s subsidiaries are set out in note 13 to the consolidated financial statement. During the year ended December 31, 2025, there were no significant changes in the nature of the Group’s principal activities.

Further discussion and analysis of the business review required by Schedule 5 of the Hong Kong Companies Ordinance is set out in the “Corporate Governance Report” on pages 23 to 37, the “Management Discussion and Analysis” on pages 9 to 22 and the “Environmental, Social and Governance Report” on pages 38 to 66 of this Annual Report, including an overview of the Group’s main risks and uncertainties, possible future development plans for the Group’s business, and the Group’s environmental policies, compliance details and key relationships with major stakeholders (including employees, customers and suppliers). Such discussion forms part of this “Directors’ Report”.

RESULTS AND DIVIDENDS

The Group’s results for the year ended December 31, 2025 are set out in the consolidated statement of profit or loss and other comprehensive income on page 107 of this Annual Report.

The Company has adopted a dividend policy (the “ Dividend Policy ”) in December 2018. Pursuant to the Dividend Policy, the Company’s payment of dividends and the related amount shall be determined at the discretion of the Board based on the following factors:

(a) the general financial position and operating results of the Group;
(b) the actual and future operations and liquidity position of the Group;
(c) the expected working capital requirements and future plans on expansion of the Group;
(d) the debt to equity ratio and debt level of the Group;
(e) any restrictions on contracts of the Group;
(f) the retained earnings and distributable reserves of the Company and each of the members of the Group;
(g) the Shareholders’ and investors’ expectation and industry practices;
(h) the general market condition and prospect; and
(i) any other factors that the Board considers appropriate.

The Dividend Policy is subject to continuous review by the Board, and the Board reserves the rights to update, modify, amend and/or terminate the Dividend Policy at its absolute discretion from time to time.

The Board did not recommend the payment of a final dividend for the year ended December 31, 2025 (2024: nil). No shareholders have waived or agreed to waive any dividends in 2025.

The Company does not have a fixed dividend payout ratio under its dividend policy. For internal planning purposes only, the Board may from time to time adopt an internal, non-binding guideline on an indicative payout level (e.g., 1% to 2% of annual net profit attributable to owners of the Company), subject always to the Board’s discretion. The Board may depart from, revise or withdraw such internal guideline at any time.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

ANNUAL GENERAL MEETING AND CLOSURE OF THE REGISTER OF MEMBERS

The forthcoming annual general meeting of the Company is expected to be held on June 12, 2026. A notice convening the annual general meeting will be published on the HKEXnews website at www.hkexnews.hk and the Company’s website at www.linekong.com in due course.

For determining the entitlement to attend and vote at the annual general meeting, the register of members of the Company will be closed during the period from June 9, 2026 to June 12, 2026, both days inclusive, during which period no transfer of shares will be effected. In order to qualify for attending and voting at the annual general meeting, all transfers of shares, accompanied by the relevant share certificates, must be lodged with the Company’s Hong Kong share registrar not later than 4:30 p.m. on June 8, 2026.

PROPERTY, PLANT AND EQUIPMENT

Details of movements in the property, plant and equipment of the Group during the year are set out in note 16 to the consolidated financial statements.

SHARE CAPITAL, SHARE OPTIONS, CONVERTIBLE SECURITIES, OPTIONS, WARRANTS OR SIMILAR RIGHTS

Details of the Group’s share capital and share options are set out in note 27 and note 29 to the consolidated financial statements. Save for the RSUs and share options referred to in the paragraph of “Share Incentive Scheme, Share Option Scheme and 2025 Share Scheme” below, the Group did not issue or grant any convertible securities, options, warrants or other similar rights during the year ended December 31, 2025.

SUMMARY OF FINANCIAL INFORMATION

A summary of the published results and assets and liabilities of the Group for the last five financial years, as extracted from the audited consolidated financial statements, is set out on page 180 in this Annual Report. This summary does not form part of the audited consolidated financial statements of the Group.

DISTRIBUTABLE RESERVES

Details of movements in the reserves of the Company and the Group are set out in the consolidated statement of changes in equity, note 27, note 28 and note 39 to the consolidated financial statements, respectively. As of December 31, 2025, the Company’s reserves available for distribution, calculated in accordance with the Companies Act of the Cayman Islands, amounted to approximately HKD188.7 million. This includes the Company’s share premium in the amount of approximately HKD1,905.9 million as of December 31, 2025, which may be distributable to the shareholders provided that immediately following the date on which the dividend is proposed to be distributed, the Company will be in a position to pay off its debts as and when they fall due in the ordinary course of business.

MAJOR CUSTOMERS AND SUPPLIERS AND THEIR RELATIONSHIP(S) WITH THE COMPANY

Sales of the Group’s five largest customers accounted for approximately 40.6% of the Group’s total sales for the year, mainly due to the recognition of revenue related to the film and television project “陷入我們的熱戀”, of which the sales of the largest customer accounted for 23.7% of our total revenue for the year. In 2025, no single paying player contributed more than 1% of the Group’s revenue.

The Group’s five largest suppliers accounted for approximately 24.0% of the Group’s total purchases during the year, mainly representing the profit sharing from the R&D of licensed games, of which the largest supplier’s purchases accounted for 10.1% of our total purchases.

None of the Directors, or any of his close associates or shareholders (which, to the best knowledge of the Directors, own more than 5% of the Company’s issued share capital), had any beneficial interest in the Group’s five largest suppliers or customers.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

COMPLIANCE WITH LAWS AND REGULATIONS

In 2025, the Company complied with laws and regulations which are significant to the Company. The Directors of the Company are collectively and individually responsible for ensuring the Company fully complies with the GEM Listing Rules.

COMPLIANCE WITH LAWS AND REGULATIONS RELATING TO ENVIRONMENTAL PROTECTION

The Group is committed to the long-term sustainability of the environment and communities in which it operates. The Group operates its businesses in an environmentally responsible manner, strives to comply with laws and regulations relating to the environmental protection, and implements effective measures to effectively use resources, save energy and reduce wastes. In particular, these measures include waste paper recycling, energy conservation measures and water conservation actions. During the year, there was no material breach of or non-compliance with the laws and regulations relating to environmental protection. Please refer to the section headed “Environmental, Social and Governance Report” in this report for details.

DIRECTORS

The Directors for the year ended December 31, 2025 and as at the date of this report were as follows:

Executive Directors

Mr. Wang Feng (Chairman and Chief Executive Officer) Mr. Wang Jin (also known as Yan Yusong) (Vice President)

Independent non-executive Directors

Mr. Zhang Xiangdong Ms. Wu Yueqin Mr. Fu Frank Kan

In accordance with the articles of association of the Company, at each annual general meeting, one-third of the Directors for the time being shall retire from office by rotation provided that every Director shall be subject to retirement by rotation at least once every three years. Such retiring Directors may, being eligible, offer themselves for re-election at the annual general meeting. All Directors appointed by the Board to fill a casual vacancy shall hold office until the first general meeting of shareholders after their appointment and be subject to re-election at such meeting and all Directors appointed by the Board as an addition to the existing Board shall hold office only until the next following annual general meeting and shall then be eligible for re-election.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

PERMITTED INDEMNITY PROVISION

Pursuant to the articles of association of the Company, every Director shall be entitled to be indemnified out of the assets of the Company against all losses or liabilities incurred or sustained by him as a Director in defending any proceedings, whether civil or criminal, in which judgment is given in his favour, or in which he is acquitted.

Subject to the Companies Act of the Cayman Islands, if any Director or other person shall become personally liable for the payment of any sum primarily due from the Company, the Board may execute or cause to be executed any mortgage, charge, or security over or affecting the whole or any part of the assets of the Company by way of indemnity to secure the Director or person so becoming liable as aforesaid from any loss in respect of such liability.

Pursuant to code provision C.1.8 of the Code, the Company should arrange appropriate insurance to cover potential legal actions against its Directors. In compliance with such code provision, the Company has arranged for appropriate liability insurance for the Directors for indemnifying their liabilities arising from corporate activities for the year ended December 31, 2025.

DIRECTORS’ SERVICE CONTRACTS

None of the Directors proposed for re-election at the forthcoming annual general meeting has an unexpired service contract with the Company and/or any of its subsidiaries, which is not terminable by the employing company within one year without payment of compensation, other than statutory compensation.

DIRECTORS’ AND SENIOR MANAGEMENT’S BIOGRAPHIES

Biographical details of the Directors and the senior management of the Group are set out on pages 7 to 8 of this Annual Report.

REMUNERATION OF DIRECTORS AND FIVE HIGHEST PAID INDIVIDUALS

Details of the remuneration of the Directors and the five highest paid individuals of the Group are set out in note 9 and note 34 to the consolidated financial statements.

DIRECTORS’ INTEREST IN SIGNIFICANT TRANSACTION, ARRANGEMENT OR CONTRACTS

Save as disclosed in the paragraphs headed ”Connected and Continuing Connected Transactions” and “Related Party Transactions” below, none of the Directors (or entity connected with the Directors) had a material interest, either directly or indirectly, in any transaction, arrangement or contract of significance to the business of the Group to which the Company or any of its subsidiaries was a party during the year.

MANAGEMENT CONTRACTS

As of December 31, 2025, save as disclosed, the Company did not enter into or have any management and administration contracts in respect of the whole or any principal business of the Company.

DIRECTORS’ RIGHTS TO ACQUIRE SHARES OR DEBENTURES OF THE COMPANY

Apart from as disclosed under the paragraphs headed ”Directors’ and Chief Executive’s Interests and Short Positions in Shares, Underlying Shares and Debentures” and “Share Incentive Scheme, Share Option Scheme and 2025 Share Scheme” below, at no time during the Reporting Period were rights to acquire benefits by means of the acquisition of shares in, or debentures of, the Company granted to any Director or their respective spouse or children under 18 years of age, or were any such rights exercised by them, or was the Company, or the Company’s subsidiary or holding company or a subsidiary of the Company’s holding company a party to any arrangement to enable the Directors to acquire such rights in any other body corporate nor any such right subsisted as at the end of the Reporting Period.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

DIRECTORS’ AND CHIEF EXECUTIVE’S INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES

As of December 31, 2025, the interests and short positions of the Directors and chief executive of the Company in the shares, underlying shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of Securities and Futures Ordinance (“ SFO ”)) which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which they were taken or deemed to have under such provisions of the SFO), or which were recorded in the register required to be kept by the Company pursuant to Section 352 of the SFO, or which were otherwise required, pursuant to the required standard of dealings by directors of listed issuers as reflected to in Rules 5.46 of the GEM Listing Rules, to be notified to the Company and the Stock Exchange, were as follows:

(i) Long position in Shares and underlying Shares

			Approximate
		Total number of	percentage of
Name of Director/chief executive	Capacity/Nature of interest	shares	shareholding(Note 3)
Mr. Wang Feng_(Note 1)_	Interest of controlled corporation	66,576,160 (L)	29.05%
	Beneficial owner	40,769,880 (L)
Mr. Wang Jin_(Note 2)_	Beneficial owner	8,059,624 (L)	2.18%
(L) Long position

Notes:

(1) Mr. Wang Feng held the entire issued share capital of Wangfeng Management Limited, which in turn directly held 66,576,160 Shares. Accordingly, Mr. Wang Feng is deemed to be interested in all the 66,576,160 Shares held by Wangfeng Management Limited under the SFO.

In addition, Mr. Wang Feng held 32,336,572 Shares and was interested in 8,433,308 RSUs granted to him under the 2014 RSU Scheme entitling him to receive 8,433,308 Shares. Meanwhile, Mr. Wang Feng was granted 6,941,398 RSUs in accordance with the 2024 RSU Scheme on December 20, 2024. In respect of those 6,941,398 RSUs granted under the 2024 RSU Scheme, Mr. Wang Feng undertook to sell the underlying Shares when these 6,941,398 RSUs are matured and thus has no interest in the underlying Shares.

For further details on the RSUs, please refer to the section headed “Share Incentive Scheme” in this report.

(2) The 8,059,624 Shares that Mr. Wang Jin was interested in consisted of (a) 300,000 share options, 1,000,000 share options, 125,000 share options and 2,759,812 share options granted to him on June 15, 2016, April 1, 2019, May 17, 2022 and July 12, 2024, respectively, under the Share Option Scheme entitling him to receive an aggregate of 4,184,812 Shares upon exercise; and (b) 1,115,000 RSUs granted to him under the 2014 RSU Scheme entitling him to receive 1,115,000 Shares, and 2,759,812 RSUs granted to him under the 2024 RSU Scheme entitling him to receive 2,759,812 Shares. As of December 31, 2025, all RSUs under the 2014 RSU Scheme have been vested, and 1,983,616 RSUs under the 2024 RSU Scheme have been vested.

For further details on the share options and RSUs, please refer to the sections headed ”Share Option Scheme”, ”Share Incentive Scheme” and “2025 Share Scheme” in this report.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

DIRECTORS’ AND CHIEF EXECUTIVE’S INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES (continued)

(i) Long position in Shares and underlying Shares (continued)

Notes: (continued)

(3) As of December 31, 2025, the Company issued 369,492,964 Shares.

(ii) Long position in the shares of other members of the Group

As of December 31, 2025, the following Directors or the chief executive of the Company are directly or indirectly (other than indirectly by virtue of their interest in the Company) interested in the shares or underlying shares of other member(s) of the Group as follows:

				Approximate
Director/		Capacity/	Register share	percentage of
Chief executive	Company concerned	Nature of interest	capital	interest
Mr. Wang Feng	Linekong Online (Beijing) Technology Co., Ltd.	Beneficial owner	RMB7,545,000	75.45%
	(“Linekong Online”)(Note 1)
Mr. Wang Jin	Horgos Linekong Pictures Corporation	Beneficial owner	RMB4,155,000	8.31%
	(“Linekong Pictures”)(Note 2)
Mr. Wang Jin	Juyingshiguang (Hainan) Pictures Limited	Beneficial owner	RMB190,000	9.50%
	(“Juyingshiguang”)(Note 3)
Mr. Wang Jin	Horgos Chenxi Entertainment and Media	Beneficial owner	RMB90,000	9.00%
	Co., Ltd. (“Chenxi Entertainment”)(Note 4)

Notes:

Linekong Online is a subsidiary of the Company controlled through contractual arrangements. Mr. Wang Feng is one of the registered shareholders of Linekong Online.
Linekong Pictures is a subsidiary of the Company controlled through Linekong Online which is owned as to 82.19% by Linekong Online.
Juyingshiguang is a subsidiary of the Company controlled through Linekong Online which is owned as to 84.50% by Linekong Online.
Chenxi Entertainment is a subsidiary of the Company controlled through Linekong Online which is owned as to 60.00% by Linekong Online.

Save as disclosed above, as of December 31, 2025, none of the Directors and chief executives of the Company had any interests or short positions in any shares, underlying shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which would have to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which they were taken or deemed to have under such provisions of the SFO), or which were recorded in the register required to be kept by the Company pursuant to Section 352 of the SFO, or which were required, pursuant to Rules 5.46 of the GEM Listing Rules, to be notified to the Company and the Stock Exchange.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SUBSTANTIAL SHAREHOLDERS’ AND OTHER PERSONS’ INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARES

So far as is known to the Directors or chief executives of the Company, as of December 31, 2025, the following persons (other than Directors or chief executives of the Company) had, or were deemed or taken to have interests or short positions in the shares or underlying shares of the Company which would fall to be disclosed to the Company and the Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO or, which were recorded in the register required to be kept by the Company under Section 336 of the SFO were as follows:

(i) Substantial Shareholders

			Approximate
			percentage of
		Number of Shares	interest in our
Name of shareholder	Nature of interest	or securities held	Company(Note 3)
Zhu Li_(Note 1)_	Interest of spouse	107,346,040 (L)	29.05%
Wangfeng Management Limited_(Note 2)_	Beneficial owner	66,576,160 (L)	18.02%

(L) Long position

Notes:

Ms. Zhu Li is the wife of Mr. Wang Feng and is deemed to be interested in the Shares in which Mr. Wang Feng is interested under the SFO. For details of Mr. Wang Feng’s interests, please refer to the section headed ”Directors’ and Chief Executive’s Interests and Short Positions in Shares, Underlying Shares and Debentures” in this report.
Mr. Wang Feng, the chairman, a Director and the chief executive officer of the Company, holds the entire issued share capital of Wangfeng Management Limited.
As of December 31, 2025, the Company issued 369,492,964 Shares.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SUBSTANTIAL SHAREHOLDERS’ AND OTHER PERSONS’ INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARES (continued)

(ii) Other Shareholders

Other Shareholders
			Approximate
			percentage of
		Number of Shares	interest in our
Name of shareholder	Nature of interest	or securities held	Company(Note 5)
The Core Trust Company Limited_(Note 1)_	Trustee of a trust	33,227,257 (L)	8.99%
TCT (BVI) Limited_(Note 1)_	Trustee of a trust	33,227,257 (L)	8.99%
Zhang Hongliang_(Note 4)_	Beneficial owner	23,571,260 (L)	6.78%
	Beneficiary of a trust	1,467,505 (L)
Ho Chi Sing_(Notes 2&3)_	Interest of controlled corporation	22,056,000 (L)	5.97%

(L) Long position

Notes:

The Core Trust Company Limited, being the RSU trustee, directly held the entire issued share capital of TCT (BVI) Limited, which in turn directly held the entire issued share capital of Premier Selection Limited (the RSU nominee) and Best Review Global Limited (the RSU nominee). Therefore, The Core Trust Company Limited and TCT (BVI) Limited are deemed to be interested in a total of 33,227,257 Shares held by them on behalf of the participants under 2014 RSU Scheme and 2024 RSU Scheme.
Each of IDG-Accel China Growth Fund L.P. (“ IDG Fund ”, holding 20,360,900 Shares) and IDG-Accel China Growth Fund-A LP. (“ IDG Fund-A ”, holding 4,160,999 Shares) is controlled by its sole general partner, IDG-Accel China Growth Fund Associates, L.P. (“ IDG Fund Associates ”), which in turn is controlled by its sole general partner, IDG-Accel China Growth Fund GP Associates Ltd. (“ IDG GP Associates ”). IDG GP Associates is held as to 35.00% by each of Mr. Zhou Quan and Mr. Ho Chi Sing.

Accordingly, each of Mr. Zhou Quan, Mr. Ho Chi Sing, IDG GP Associates and IDG Fund Associates is deemed to be interested in all the Shares held by IDG Fund and IDG Fund-A under the SFO.

IDG-Accel China Investors L.P. (“ IDG China Investors ”, holding 1,840,164 Shares) is controlled by its sole general partner, IDG-Accel China Investor Associates Ltd. (“ IDG Associates ”), which in turn is held as to 100.00% by Mr. Ho Chi Sing.

Accordingly, each of Mr. Ho Chi Sing and IDG Associates is deemed to be interested in all the Shares held by IDG China Investors under the SFO.

Mr. Zhang Hongliang directly holds 23,571,260 Shares, and also holds 1,467,505 Shares in the capacity of the beneficiary of a trust.
As of December 31, 2025, the Company issued 369,492,964 Shares.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY

During the twelve months ended December 31, 2025, neither the Company, nor any of its subsidiaries had purchased, sold or redeemed any of the Company’s listed securities (including treasury shares). As of December 31, 2025, the Company did not hold any treasury shares.

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME

Share Incentive Scheme

The Company approved and adopted the 2014 RSU Scheme on March 21, 2014 and as amended on August 22, 2014, and approved and adopted the 2024 RSU Scheme on July 12, 2024. The 2014 RSU scheme has expired on March 20, 2024.

The key terms of the 2014 RSU Scheme are as follow.

(a) Purposes of the 2014 RSU Scheme

The purpose of the 2014 RSU Scheme is to incentivise Directors, senior management, employees and any person who provides or has provided consultancy or other advisory services to the Group for their contribution to the Group, to attract, motivate and retain skilled and experienced personnel to strive for the future development and expansion of the Group by providing them with the opportunity to own equity interests in the Company.

(b) Participants in the 2014 RSU Scheme

Persons eligible to receive RSUs under the 2014 RSU Scheme are existing employees, Directors (whether executive or non-executive, but excluding independent non-executive Directors) or chief officers of the Company or any of the subsidiaries (including Linekong Online) or any person who provides or has provided consultancy or other advisory services to the Group (the “ 2014 RSU Eligible Persons ”). Subject to the compliance with the requirements for participants of the 2014 RSU Scheme under Rule 23.03A of the GEM Listing Rules, the Board selects the 2014 RSU Eligible Persons to receive RSUs under the 2014 RSU Scheme at its discretion.

(c) Term and Remaining Life of the 2014 RSU Scheme

The 2014 RSU Scheme will be valid and effective for a period of ten (10) years, commencing from the date of the first grant of the RSUs, being March 21, 2014 until March 20, 2024 (unless it is terminated earlier in accordance with its terms) (the “ 2014 RSU Scheme Period ”). The 2014 RSU Scheme has expired on March 20, 2024.

(d) Maximum number of Shares pursuant to RSUs

The maximum number of RSUs that may be granted under the 2014 RSU Scheme in aggregate (excluding RSUs that have lapsed or been cancelled in accordance with the rules of the 2014 RSU Scheme) shall be such number of shares held by the RSU Trustee (as defined in paragraph (e) below) for the purpose of the 2014 RSU Scheme from time to time. As of the date of this Annual Report, the RSU Trustee held a total of 0 Share. The maximum RSU entitlement of each participant of the 2014 RSU Scheme under the Share Incentive Scheme shall not exceed the limits as required under the GEM Listing Rules.

(e) Appointment of the RSU Trustee

Our Company has appointed a trustee (the “ RSU Trustee ”) to assist with the administration and vesting of RSUs granted pursuant to the 2014 RSU Scheme. Our Company may (i) allot and issue shares to the RSU Trustee to be held by the RSU Trustee and which will be used to satisfy the RSUs upon exercise and/or (ii) direct and procure the RSU Trustee to receive existing shares from any of the shareholder of the Company or purchase existing shares (either on-market or off-market) to satisfy the RSUs upon exercise. Our Company shall procure that sufficient funds are provided to the RSU Trustee by whatever means as our Board may in its absolute discretion determine to enable the RSU Trustee to satisfy its obligations in connection with the administration of the 2014 RSU Scheme. All the shares underlying the RSUs granted and to be granted under the 2014 RSU Scheme were allotted and issued to Premier Selection Limited.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Incentive Scheme (continued)

(f) Vesting of RSUs

The Board can determine the vesting criteria, conditions and the time schedule when the RSUs will vest and such criteria, conditions and time schedule shall be stated in the RSU Grant Letter. Within a reasonable time after the vesting criteria, conditions and time schedule have been reached, fulfilled, satisfied or waived, the Board will send a vesting notice to each of the relevant RSU Participants. The vesting notice will confirm the extent to which the vesting criteria, conditions and time schedule have been reached, fulfilled, satisfied or waived, and the number of Shares (and, if applicable, the cash or non-cash income, dividends or distributions and/or the sale proceeds of non-cash and non-scrip distributions in respect of those Shares) involved.

(g) Exercise of RSUs

RSUs held by a Participant in the 2014 RSU Scheme (the “ 2014 RSU Participant ”) that are vested as evidenced by the vesting notice may be exercised (in whole or in part) by the 2014 RSU Participant serving an exercise notice in writing on the RSU Trustee and copied to the Company. Any exercise of RSUs must be in respect of a board lot of 500 shares each or an integral multiple thereof (except where the number of RSUs which remains unexercised is less than one board lot). Upon receipt of an exercise notice, the Board may decide at its absolute discretion to:

(i) direct and procure the RSU Trustee to, within a reasonable time, transfer the shares underlying the RSUs exercised (and, if applicable, the cash or non-cash income, dividends or distributions and/or the sale proceeds of non-cash and non-scrip distributions in respect of those shares) to the 2014 RSU Participant which our Company has allotted and issued to the RSU Trustee as fully paid up shares or which the RSU Trustee has either acquired by purchasing existing shares or by receiving existing shares from any of the shareholder of the Company, subject to the 2014 RSU Participant paying the exercise price (where applicable) and all tax, stamp duty, levies and charges applicable to such transfer to the RSU Trustee or as the RSU Trustee directs; or
(ii) pay, or direct and procure the RSU Trustee to, within a reasonable time, pay, to the 2014 RSU Participant in cash an amount which represents the value of the shares underlying the RSUs exercised on or about the date of exercise (and, if applicable, the cash or non-cash income, dividends or distributions and/or the sale proceeds of non-cash and non-scrip distributions in respect of those shares) less any exercise price (where applicable) and after deduction or withholding of any tax, levies, stamp duty and other charges applicable to the entitlement of the 2014 RSU Participant and the sale of any shares to fund such payment and in relation thereto.

The key terms of the 2024 RSU Scheme are as follows:

(a) Purposes of the 2024 RSU Scheme

The purposes of the 2024 RSU Scheme are to (i) provide the eligible participants with an opportunity to acquire ownership interests in the Company; (ii) encourage and retain them to facilitate the sustainable operation and development of the Group; (iii) provide them with additional incentives to achieve performance goals; (iv) attract suitable employees for further development of the Group; (v) attract and retain or otherwise maintain an on-going business relationship with service providers which have been contributing the Group; and (vi) incentivise them to strive for the greatest value for the Group, thereby benefiting both the participants and the Company to attain the objective of enhancing the value of the Group, as well as aligning the interests of them directly with those of the shareholders through ownership of the Shares.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Incentive Scheme (continued)

(b) Participants in the 2024 RSU Scheme

The Directors (whether executive or non-executive, but excluding independent non-executive Directors) and employees of the Company or any of its subsidiaries (including the parties to be granted the RSUs under the 2024 RSU Scheme to facilitate their entering into the employee contracts with the Group); and persons who provide services to the Group on a continuing and recurring basis in its ordinary course of business which are in the interests of the long-term growth of the Group, but excluding placing agents or financial advisers providing advisory services for fundraising, mergers or acquisitions, and professional service providers providing assurance, or those who are required to perform their services with impartiality and objectivity.

(c) Term and Remaining Life of the 2024 RSU Scheme

The 2024 RSU Scheme will be valid and effective for a period of ten (10) years, commencing from the date of the first grant of the RSUs, being July 12, 2024 until July 11, 2034 (unless it is terminated earlier in accordance with its terms). The remaining life of the 2024 RSU Scheme is approximately 8.5 years.

(d) Maximum number of Shares pursuant to RSUs

The maximum number of RSUs that may be granted under the 2024 RSU Scheme in aggregate (excluding RSUs that have lapsed or been cancelled in accordance with the rules of the 2024 RSU Scheme) shall be such number of shares held by the Trustee for the purpose of the 2024 RSU Scheme from time to time (excluding treasury shares). As of the date of the Annual Report, the trustee under the 2024 RSU Scheme held a total of 0 Share. The maximum number of RSUs that each participant may be granted under the 2024 RSU Scheme shall not exceed the limits as required under the GEM Listing Rules.

(e) Appointment of the Trustee

The Company may appoint a trustee to assist with the administration and vesting of RSUs granted pursuant to the 2024 RSU Scheme. The Company may (i) direct the trustee to use shares he/she hold that were received or purchased (either on-market or off-market) under the 2024 RSU Scheme to satisfy the RSUs upon exercise, and/or (ii) direct and procure the trustee to receive existing shares from any of the shareholder of the Company or purchase existing shares (either on-market or off-market) to satisfy the RSUs upon exercise. The Company shall procure that sufficient funds are provided to the trustee by whatever means as the Board may in its absolute discretion determine to enable the trustee to satisfy its obligations in connection with the administration of the 2024 RSU Scheme. The trustee holding unvested shares, directly or indirectly, shall abstain from voting on matters that require shareholders’ approval under the GEM Listing Rules, unless otherwise required by law to vote in accordance with the beneficial owner’s direction and such a direction is given. For the avoidance of doubt, the trustee may not use treasury shares of the Company to satisfy the RSUs granted under the 2024 RSU Scheme upon exercise. The Company has appointed Premier Selection Limited as the trustee.

(f) Vesting of RSUs

The Board can determine the vesting criteria, conditions and the time schedule when the RSUs will vest and such criteria, conditions and time schedule shall be stated in the RSU Grant Letter. Within a reasonable period of time after the vesting criteria, conditions and time schedule have been reached, fulfilled, satisfied or waived, the Board will send a vesting notice to each of the relevant eligible participants. The vesting notice will confirm the extent to which the vesting criteria, conditions and time schedule have been reached, fulfilled, satisfied or waived, and the number of Shares (and, if applicable, the cash or non-cash income, dividends or distributions and/or the sale proceeds of non-cash and non-scrip distributions in respect of those Shares) involved.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Incentive Scheme (continued)

(g) Exercise of RSUs

RSUs held by a participant that are vested as evidenced by the vesting notice may be exercised (in whole or in part) by the participant serving an exercise notice in writing on the trustee and copied to the Company. Any exercise of RSUs must be in respect of a board lot or an integral multiple thereof (except where the number of RSUs which remains unexercised is less than one board lot). Upon receipt of an exercise notice, the Board may decide at its absolute discretion to:

(i) direct and arrange the trustee to, within a reasonable time, transfer the shares underlying the RSUs exercised (and, if applicable, the cash or non-cash income, dividends or distributions and/or the sale proceeds of non-cash and non-scrip distributions in respect of those shares) to the participant which the trustee has either acquired by purchasing existing shares or by receiving existing shares from any of the shareholder of the Company, subject to the participant paying the exercise price (where applicable) and all tax, stamp duty, levies and charges applicable to such transfer to the trustee or as the trustee directs; or
(ii) pay, or direct and arrange the trustee to, within a reasonable time, pay, to the participant in cash an amount which represents the value of the shares underlying the RSUs exercised on or about the date of exercise (and, if applicable, the cash or non-cash income, dividends or distributions and/or the sale proceeds of non-cash and non-scrip distributions in respect of those shares) less any exercise price (where applicable) and after deduction of any tax, levies, stamp duty and other charges applicable to the sale of any shares to fund such payment.

The participant may exercise the vested portion of their RSUs during the 2024 RSU Scheme period and during the validity period of the RSUs after the termination of the 2024 RSU Scheme. No amount is payable on application or acceptance of RSUs and the period within which payments or calls must or may be made or loans for such purposes must be repaid.

As of December 31, 2025, there were 31,804,990 RSUs granted and outstanding, among which 26,873,378 RSUs have been vested. During the year ended December 31, 2025, under the 2014 RSU Scheme, no RSUs were granted, no RSUs were cancelled and 0 RSUs had lapsed. During the year ended December 31, 2025, under the 2024 RSU Scheme, 136,376 RSUs were granted, 0 RSUs were cancelled and 1,552,393 RSUs had lapsed. From December 31, 2025 to the date of this report, 0 RSUs had lapsed. The Core Trust Company Limited, the RSU Trustee assisting with the administration and vesting of RSUs granted, did not purchase any Shares on the Stock Exchange during the year ended December 31, 2025 for satisfying the RSUs upon exercise.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Incentive Scheme (continued)

Movement of RSUs

*Movement of RSUs*
Category Date of grant Validity period(note 1) RSUs granted Exercise price Closing price of the Shares immediately before the date of grant Granted but not exercised (including unvested) balance as of January 1, 2025 HKD HKD	During the Reporting Period Granted but not exercised (including unvested) balance as of December 31, 2025 Granted Vested Exercised Cancelled Lapsed — — — — — 8,432,308 (—) — — — — — 1,000 (—) — 2,603,024 — — — 6,941,398 (2,603,024) — — — — — — (—) — — — — — — (—) — — — — — — (—) — — — — — — (—) — — — — — 54,841 (—) — — — — — 21,000 (—) — — — — — 400,000 (—) — — — — — 115,000 (—) — — — — — 1,000,000 (—) — — — — — 115,000 (—) — 1,034,930 — — — 2,759,812 (776,196) — — 100,173 — — 11,000 (—) — — — — — 101,000 (—) — — — — — 300,000 (—) — — — — — 50,000 (—)
Wang Feng (Director)(note 2) 2014/3/21 2014/3/21–2034/3/20 8,432,308_(note 3) N/A N/A 8,432,308 (—) 2015/1/21 2015/1/21–2035/1/20 1,000(note 4) N/A 9.80 1,000 (—) 2024/12/20 2024/12/20–2034/12/19 6,941,398(note 11) N/A 0.53 6,941,398 (5,206,048) Liao Mingxiang (former Director)(note 13) 2014/3/21 2014/3/21–2034/3/20 2,810,769(note 3) N/A N/A — (—) 2015/1/21 2015/1/21–2035/1/20 1,000(note 4) N/A 9.80 — (—) 2019/9/12 2019/9/12–2039/9/11 3,680,000(note 8) N/A 0.72 — (—) 2021/5/17 2021/5/17–2041/5/16 2,580,000(note 9) N/A 0.73 — (—) Chen Hao (former Director) 2014/3/21 2014/3/21–2034/3/20 54,841(note 3) N/A N/A 54,841 (—) 2015/1/21 2015/1/21–2035/1/20 21,000(note 4) N/A 9.80 21,000 (—) 2017/1/18 2017/1/18–2037/1/17 400,000(note 6) N/A 3.10 400,000 (—) 2021/5/17 2021/5/17–2041/5/16 460,000(note 9) N/A 0.73 115,000 (—) Wang Jin (Director)(note 2) 2019/4/1 2019/4/1–2039/3/31 1,000,000(note 7) N/A 0.88 1,000,000 (—) 2021/5/17 2021/5/17–2041/5/16 460,000(note 9) N/A 0.73 115,000 (—) 2024/7/12 2024/7/12–2034/7/11 2,759,812(note 10) N/A 0.31 2,759,812 (1,811,126) Qi Yunxiao(note 13) 2014/3/21 2014/3/21–2034/3/20 1,316,173(note 3) N/A N/A 111,173 (—) 2015/1/21 2015/1/21–2035/1/20 101,000(note 4) N/A 9.80 101,000 (—) 2019/4/1 2019/4/1–2039/3/31 300,000(note 7) N/A 0.88 300,000 (—) 2021/5/17 2021/5/17–2041/5/16 200,000(note 9)_ N/A 0.73 50,000 (—)

Movement of RSUs

Category
Date of grant
Validity period(note 1)
RSUs granted
Exercise price
Closing price
of the Shares
immediately
before the date
of grant
Granted but
not exercised
(including
unvested)
balance as of
January 1, 2025
HKD
HKD

During the Reporting Period
Granted but
not exercised
(including
unvested)
balance as of
December 31,
2025
Granted
Vested
Exercised
Cancelled
Lapsed
—
—
—
—
—
8,432,308
(—)
—
—
—
—
—
1,000
(—)
—
2,603,024
—
—
—
6,941,398
(2,603,024)
—
—
—
—
—
—
(—)
—
—
—
—
—
—
(—)
—
—
—
—
—
—
(—)
—
—
—
—
—
—
(—)
—
—
—
—
—
54,841
(—)
—
—
—
—
—
21,000
(—)
—
—
—
—
—
400,000
(—)
—
—
—
—
—
115,000
(—)
—
—
—
—
—
1,000,000
(—)
—
—
—
—
—
115,000
(—)
—
1,034,930
—
—
—
2,759,812
(776,196)
—
—
100,173
—
—
11,000
(—)
—
—
—
—
—
101,000
(—)
—
—
—
—
—
300,000
(—)
—
—
—
—
—
50,000
(—)

Wang Feng
(Director)(note 2)
2014/3/21
2014/3/21–2034/3/20
8,432,308_(note 3)
N/A
N/A
8,432,308
(—)
2015/1/21
2015/1/21–2035/1/20
1,000(note 4)
N/A
9.80
1,000
(—)
2024/12/20
2024/12/20–2034/12/19
6,941,398(note 11)
N/A
0.53
6,941,398
(5,206,048)
Liao Mingxiang
(former Director)(note 13)
2014/3/21
2014/3/21–2034/3/20
2,810,769(note 3)
N/A
N/A
—
(—)
2015/1/21
2015/1/21–2035/1/20
1,000(note 4)
N/A
9.80
—
(—)
2019/9/12
2019/9/12–2039/9/11
3,680,000(note 8)
N/A
0.72
—
(—)
2021/5/17
2021/5/17–2041/5/16
2,580,000(note 9)
N/A
0.73
—
(—)
Chen Hao
(former Director)
2014/3/21
2014/3/21–2034/3/20
54,841(note 3)
N/A
N/A
54,841
(—)
2015/1/21
2015/1/21–2035/1/20
21,000(note 4)
N/A
9.80
21,000
(—)
2017/1/18
2017/1/18–2037/1/17
400,000(note 6)
N/A
3.10
400,000
(—)
2021/5/17
2021/5/17–2041/5/16
460,000(note 9)
N/A
0.73
115,000
(—)
Wang Jin
(Director)(note 2)
2019/4/1
2019/4/1–2039/3/31
1,000,000(note 7)
N/A
0.88
1,000,000
(—)
2021/5/17
2021/5/17–2041/5/16
460,000(note 9)
N/A
0.73
115,000
(—)
2024/7/12
2024/7/12–2034/7/11
2,759,812(note 10)
N/A
0.31
2,759,812
(1,811,126)
Qi Yunxiao(note 13)
2014/3/21
2014/3/21–2034/3/20
1,316,173(note 3)
N/A
N/A
111,173
(—)
2015/1/21
2015/1/21–2035/1/20
101,000(note 4)
N/A
9.80
101,000
(—)
2019/4/1
2019/4/1–2039/3/31
300,000(note 7)
N/A
0.88
300,000
(—)
2021/5/17
2021/5/17–2041/5/16
200,000(note 9)_
N/A
0.73
50,000
(—)

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Incentive Scheme (continued)

Movement of RSUs (continued)

Category Date of grant Validity period(note 1) RSUs granted Exercise price Closing price of the Shares immediately before the date of grant Granted but not exercised (including unvested) balance as of January 1, 2025 HKD HKD	During the Reporting Period Granted but not exercised (including unvested) balance as of December 31, 2025 Granted Vested Exercised Cancelled Lapsed
Vested portion of employees’ (other grantees’) grants_(note 12) 2014/3/21 2014/3/21–2034/3/20 18,757,403(note 3) N/A N/A 4,122,211(note 12) (—) 2015/1/21 2015/1/21–2035/1/20 2,151,000(note 4) N/A 9.80 2015/10/9 2015/10/9–2035/10/8 20,000(note 5) N/A 7.18 2017/1/18 2017/1/18–2037/1/17 1,405,385(note 6) N/A 3.10 2019/8/16 2019/8/16–2039/8/15 760,000(note 6) N/A 0.64 385,750 (—) 2021/5/17 2021/5/17–2041/5/16 615,000(note 9) N/A 0.73 251,750 (13,125) 2025/12/5 2025/12/5–2035/12/4 136,376(note 16) N/A 0.39 — (—) Not fully vested portion of employees’ (other grantees’) grants 2024/7/12 2024/7/12–2034/7/11 8,279,437(note 10)_ N/A 0.31 8,279,437 (5,433,377)	— — 120,500 — — 4,001,711_(note 12)_ (—) — — — — — 385,750 (—) — 13,125 — — — 251,750 (—) 136,376 136,376 — — — 136,376 (—) — 2,328,592 — — 1,552,393 6,727,044 (1,552,392)

Vested portion of
employees’
(other grantees’)
grants_(note 12)
2014/3/21
2014/3/21–2034/3/20
18,757,403(note 3)
N/A
N/A
4,122,211(note 12)
(—)
2015/1/21
2015/1/21–2035/1/20
2,151,000(note 4)
N/A
9.80
2015/10/9
2015/10/9–2035/10/8
20,000(note 5)
N/A
7.18
2017/1/18
2017/1/18–2037/1/17
1,405,385(note 6)
N/A
3.10
2019/8/16
2019/8/16–2039/8/15
760,000(note 6)
N/A
0.64
385,750
(—)
2021/5/17
2021/5/17–2041/5/16
615,000(note 9)
N/A
0.73
251,750
(13,125)
2025/12/5
2025/12/5–2035/12/4
136,376(note 16)
N/A
0.39
—
(—)
Not fully vested portion
of employees’ (other
grantees’) grants
2024/7/12
2024/7/12–2034/7/11
8,279,437(note 10)_
N/A
0.31
8,279,437
(5,433,377)

—
—
120,500
—
—
4,001,711_(note 12)_
(—)
—
—
—
—
—
385,750
(—)
—
13,125
—
—
—
251,750
(—)

136,376
136,376
—
—
—
136,376
(—)
—
2,328,592
—
—
1,552,393
6,727,044
(1,552,392)

Notes:

The RSUs are valid for a period of ten years from the date of grant. On March 20, 2024, the Board agreed to extend the validity period of all the RSUs granted to another ten years.
Such individuals are among the five persons with the highest total emoluments of the Group in 2025.
The RSUs granted on March 21, 2014 may be vested in accordance with the following vesting timetable:
3.1 In respect of Wang Feng (8,432,308), Liao Mingxiang (2,810,769), Qi Yunxiao (1,316,173) and other grantees (10,317,355)

20% of the RSUs shall be vested on the date that expires 1 month after the listing date;

35% of the RSUs shall be vested on the date that expires 12 months after the date of grant of the RSUs; 10% of the RSUs shall be vested on the date that expires 18 months after the date of grant of the RSUs; 10% of the RSUs shall be vested on the date that expires 24 months after the date of grant of the RSUs;

7.5% of the RSUs shall be vested on the date that expires 30 months after the date of grant of the RSUs;
7.5% of the RSUs shall be vested on the date that expires 36 months after the date of grant of the RSUs;
5% of the RSUs shall be vested on the date that expires 42 months after the date of grant of the RSUs; and
5% of the RSUs shall be vested on the date that expires 48 months after the date of grant of the RSUs.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Incentive Scheme (continued)

Movement of RSUs (continued)

Notes: (continued)

(continued)

3.2 A total of 2,810,769 RSUs of which may be vested in accordance with the following timetable:

one-third of the RSUs shall be vested on January 10, 2015; and

the remaining two-thirds of the RSUs shall be divided into 8 equal portions of shares and vested quarterly from the first month starting from January 10, 2015.

3.3 A total of 987,129 RSUs of which may be vested in accordance with the following timetable:

20% of the RSUs shall be vested on the date that expires 1 month after the listing date; 35% of the RSUs shall be vested on the date that expires 12 months after the date of grant of the RSUs; 10% of the RSUs shall be vested on the date that expires 18 months after the date of grant of the RSUs; 10% of the RSUs shall be vested on the date that expires 24 months after the date of grant of the RSUs; 7.5% of the RSUs shall be vested on the date that expires 30 months after the date of grant of the RSUs; 7.5% of the RSUs shall be vested on the date that expires 36 months after the date of grant of the RSUs;

5% of the RSUs shall be vested on the date that expires 42 months after the date of grant of the RSUs; and the remaining 5% of the RSUs shall be vested on the date that expires 48 months after the date of grant of the RSUs.

3.4 A total of 910,353 RSUs of which may be vested in accordance with the following timetable:

10% of the RSUs shall be vested on the date that expires 1 month after the listing date;

20% of the RSUs shall be vested on the date that expires 12 months after the date of grant of the RSUs;

12.5% of the RSUs shall be vested on the date that expires 18 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 24 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 30 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 36 months after the date of grant of the RSUs; 10% of the RSUs shall be vested on the date that expires 42 months after the date of grant of the RSUs; and the remaining 10% of the RSUs shall be vested on the date that expires 48 months after the date of grant of the RSUs.

3.5 A total of 3,691,216 RSUs of which may be vested in accordance with the following timetable:

25% of the RSUs shall be vested on the date that expires 12 months after the date of grant of the RSUs; and

the remaining 75% of the RSUs shall be divided into 6 equal portions of shares and vested semi-annually from the 18 months after the date of grant of the RSUs (i.e. 12.5% of the RSUs shall be vested respectively on the dates that expire 18, 24, 30, 36, 42 and 48 months after the date of grant of the RSUs).

The RSUs granted on January 21, 2015 may be vested in accordance with the following vesting timetable:

4.1 A total of 1,570,000 RSUs of which may be vested in accordance with the following timetable:

25% of the RSUs shall be vested on the date that expires 8 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 14 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 20 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 26 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 32 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 38 months after the date of grant of the RSUs; and

12.5% of the RSUs shall be vested on the date that expires 44 months after the date of grant of the RSUs.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Incentive Scheme (continued)

Movement of RSUs (continued)

Notes: (continued)

(continued)
4.2 A total of 250,000 RSUs of which may be vested in accordance with the following timetable: 25% of the RSUs shall be vested on the date that expires 6 months after the date of grant of the RSUs; 25% of the RSUs shall be vested on the date that expires 12 months after the date of grant of the RSUs; 25% of the RSUs shall be vested on the date that expires 18 months after the date of grant of the RSUs; and 25% of the RSUs shall be vested on the date that expires 24 months after the date of grant of the RSUs. 4.3 A total of 455,000 RSUs of which may be 100% vested on the date that expires 6 months after the date of grant of the RSUs.
1. The RSUs granted on October 9, 2015 may be vested in accordance with the following vesting timetable: 25% of the RSUs shall be vested on the date that expires 12 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 18 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 24 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 30 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 36 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 42 months after the date of grant of the RSUs; and 12.5% of the RSUs shall be vested on the date that expires 48 months after the date of grant of the RSUs.
1. The RSUs granted on January 18, 2017 and August 16, 2019 may be vested in accordance with the following vesting timetable: 25% of the RSUs shall be vested on the date that expires 12 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 18 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 24 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 30 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 36 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 42 months after the date of grant of the RSUs; and 12.5% of the RSUs shall be vested on the date that expires 48 months after the date of grant of the RSUs.
1. The RSUs granted on April 1, 2019 may be vested in accordance with the following vesting timetable: 50% of the RSUs shall be vested on the date of grant of the RSUs; 8.5% of the RSUs shall be vested on the date that expires 6 months after the date of grant of the RSUs; 8.5% of the RSUs shall be vested on the date that expires 12 months after the date of grant of the RSUs; 8.5% of the RSUs shall be vested on the date that expires 18 months after the date of grant of the RSUs; 8.5% of the RSUs shall be vested on the date that expires 24 months after the date of grant of the RSUs; 8.5% of the RSUs shall be vested on the date that expires 30 months after the date of grant of the RSUs; and 7.5% of the RSUs shall be vested on the date that expires 36 months after the date of grant of the RSUs.
1. The RSUs granted on September 12, 2019 may be vested in accordance with the following vesting timetable: 50% of the RSUs shall be vested on January 1, 2020; 8.5% of the RSUs shall be vested on the date that expires 6 months after the date of grant of the RSUs; 8.5% of the RSUs shall be vested on the date that expires 12 months after the date of grant of the RSUs; 8.5% of the RSUs shall be vested on the date that expires 18 months after the date of grant of the RSUs; 8.5% of the RSUs shall be vested on the date that expires 24 months after the date of grant of the RSUs; 8.5% of the RSUs shall be vested on the date that expires 30 months after the date of grant of the RSUs; and 7.5% of the RSUs shall be vested on the date that expires 36 months after the date of grant of the RSUs.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Incentive Scheme (continued)

Movement of RSUs (continued)

Notes: (continued)

The RSUs granted on May 17, 2021 may be vested in accordance with the following vesting timetable:

9.1 A total of 3,900,000 RSUs of which may be vested in accordance with the following timetable:

25% of the RSUs shall be vested on the date of grant of the RSUs;

25% of the RSUs shall be vested on January 1, 2022 if the established performance is achieved; 12.5% of the RSUs shall be vested on July 1, 2022 if the established performance is achieved; 12.5% of the RSUs shall be vested on January 1, 2023 if the established performance is achieved; 12.5% of the RSUs shall be vested on July 1, 2023 if the established performance is achieved; and 12.5% of the RSUs shall be vested on January 1, 2024 if the established performance is achieved.

9.2 A total of 415,000 RSUs of which may be vested in accordance with the following timetable:

25% of the RSUs shall be vested on the date that expires 12 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 18 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 24 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 30 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 36 months after the date of grant of the RSUs; 12.5% of the RSUs shall be vested on the date that expires 42 months after the date of grant of the RSUs; and 12.5% of the RSUs shall be vested on the date that expires 48 months after the date of grant of the RSUs.

The RSUs granted on July 12, 2024 may be vested in accordance with the following vesting timetable:

25% of the RSUs shall be vested on the date of grant of the RSUs;

9.375% of the RSUs shall be vested on the date that expires 3 months after the date of grant of the RSUs; 9.375% of the RSUs shall be vested on the date that expires 6 months after the date of grant of the RSUs; 9.375% of the RSUs shall be vested on the date that expires 9 months after the date of grant of the RSUs; 9.375% of the RSUs shall be vested on the date that expires 12 months after the date of grant of the RSUs; 9.375% of the RSUs shall be vested on the date that expires 15 months after the date of grant of the RSUs; 9.375% of the RSUs shall be vested on the date that expires 18 months after the date of grant of the RSUs; 9.375% of the RSUs shall be vested on the date that expires 21 months after the date of grant of the RSUs; and 9.375% of the RSUs shall be vested on the date that expires 24 months after the date of grant of the RSUs.

The RSUs granted on December 20, 2024 may be vested in accordance with the following vesting timetable:

25% of the RSUs shall be vested on the date of grant of the RSUs;

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Incentive Scheme (continued)

Movement of RSUs (continued)

Notes: (continued)

Save for the 136,376 RSUs granted on December 5, 2025 as disclosed in note 16 below, these RSUs have been fully vested before 2022 after their respective dates of grant, involving more than 600 non-current Directors or employees who were not the five individuals with the highest emoluments during the year. In order to facilitate the understanding of the overall development of the Group and the overall condition of our employees, information regarding their exercise of rights are presented in aggregate.
Ms. Liao Mingxiang served as the executive Director and chief executive officer of the Company, member of the Remuneration Committee, compliance officer of the Company under Rule 5.19 of the GEM Listing Rules and authorized representative of the Company under Rule 5.24 of the GEM Listing Rules. Ms. Liao Mingxiang resigned from the above positions since February 26, 2023. Ms. Qi Yunxiao served as a vice president of the Company, and resigned from the above position since March 25, 2023.
Please refer to note 29(a)(iii) to the consolidated financial statements regarding the basis for and representations on fair valuation measurement of the RSUs granted.
Based on the total number of shares of the Company held by the RSU Trustee at the respective dates, the total number of RSUs that may be granted under the 2014 RSU Scheme and 2024 RSU Scheme were 0 as of January 1, 2025 and 1,416,017 as of December 31, 2025.
The 136,376 RSUs granted on December 5, 2025 under the 2024 RSU Scheme were fully vested on the date of grant. The validity period of these RSUs is ten years from the date of grant, i.e. from December 5, 2025 to December 4, 2035.

Share Option Scheme

The Company conditionally approved the Share Option Scheme on November 20, 2014 which became effective on December 30, 2014, being the date of Listing. On August 12, 2015, October 9, 2015, June 15, 2016, January 18, 2017, April 1, 2019, August 16, 2019, September 12, 2019, May 17, 2021 and July 12, 2024, 1,849,192, 6,010,000, 1,750,000, 9,225,000, 1,300,000, 860,000, 6,900,000, 3,645,000 and 11,039,249 share options were granted with exercise price of HKD8.10, HKD7.18, HKD4.366, HKD3.10, HKD0.88, HKD0.65, HKD0.72, HKD0.784 and HKD0.335, respectively. The Company has used Binomial Option-Pricing Model to determine the fair value of the share option as of the grant date. For details of the accounting policy adopted for the share options and value of share options granted, please refer to note 2.19(a) and note 29 to the consolidated financial statements.

The Share Option Scheme has been expired on December 29, 2024.

The key terms and details of the Share Option Scheme are as follow:

(a) Purpose

The purpose of the Share Option Scheme is to incentivise and reward the Eligible Persons (as defined below) for their contribution to the Group and to align their interests with that of the Company so as to encourage them to work towards enhancing the value of the Company.

(b) Who may participate

The Board (including any committee or delegate of the Board appointed by the Board to perform any of its functions pursuant to the rules of the Share Option Scheme) may, at its absolute discretion, offer to grant an option to subscribe for such number of shares as the Board may determine to an employee (whether full-time or part-time) or a Director or a member of the Group or associated companies of the Company or any person who provides or has provided consultancy or other advisory services to the Group (the “ Eligible Persons ”).

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Option Scheme (continued)

(c) Maximum number of shares in respect of which options may be granted

The maximum number of shares which may be issued upon exercise of all options to be granted under the Share Option Scheme and any other share option schemes (the “ Other Schemes ”) of the Company must not in aggregate exceed 10% of the total number of shares in issue as at the date of Listing, which is 36,983,846 shares (the “ Scheme Mandate Limit ”). Options lapsed in accordance with the terms of the Share Option Scheme and any Other Schemes of the Company will not be counted for the purpose of calculating the Scheme Mandate Limit.

As at the date of this report, the number of shares available for issue under the Share Option Scheme (excluding those under share options granted but not yet exercised) amounted to 0 share, representing approximately 0% of the issued Shares.

(d) Maximum entitlement of each individual

No options shall be granted to any Eligible Person under the Share Option Scheme and any Other Schemes of the Company which, if exercised, would result in such Eligible Person becoming entitled to subscribe for such number of shares as, when aggregated with the total number of shares already issued or to be issued to him under all options granted to him (including exercised, cancelled and outstanding options) in the 12-month period up to and including the date of offer of such options, exceeds 1% of the shares in issue at such date.

(e) Acceptance of an offer of options

An offer of options shall be open for acceptance for such period (not exceeding 30 days inclusive of, and from, the date of offer) as the Board may determine and notify the Eligible Person concerned provided that no such offer shall be open for acceptance after the expiry of the duration of the Share Option Scheme. An offer of options not accepted within this period shall lapse. An amount of HKD1.00 is payable upon acceptance of the grant of an option and such payment shall not be refundable and shall not be deemed to be a part payment of the exercise price.

(f) Exercise price

Subject to any adjustment pursuant to the Share Option Scheme, the exercise price shall be such price as determined by the Board and notified to an option-holder and which shall not be less than the higher of:

(i) the closing price of the Shares as stated in the Stock Exchange’s daily quotation sheets on the date of offer of the option;
(ii) the average of the closing price of the Shares as stated in the Stock Exchange’s daily quotation sheets for the five trading days immediately preceding the date of offer of the option; and
(iii) the nominal value of the Shares.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Option Scheme (continued)

(g) Duration and remaining life of the Share Option Scheme

The Share Option Scheme shall be valid and effective for a period of ten years commencing on the date of Listing (i.e. from December 30, 2014 to December 29, 2024), after which period no further options will be granted but the provisions of the Share Option Scheme shall remain in full force and effect to the extent necessary to give effect to the exercise of any options granted prior thereto which are at that time or become thereafter capable of exercise under the Share Option Scheme, or otherwise to the extent as may be required in accordance with the provisions of the Share Option Scheme. The Share Option Scheme has been expired on December 29, 2024.

(h) Time of vesting and exercise of option

Any option shall be vested on an option-holder immediately upon his acceptance of the offer of options provided that if any vesting schedule and/or conditions are specified in the offer of the option, such option shall only be vested on an option-holder according to such vesting schedule and/or upon the fulfillment of the vesting conditions (as the case may be). Any vested option which has not lapsed and which conditions have been satisfied or waived by the Board in its sole discretion may, unless the Board determines otherwise in its absolute discretion, be exercised at any time from the next business day after the offer of options has been accepted. Any option which remain unexercised shall lapse upon the expiry of the option period, which period shall be determined by the Board and shall not exceed ten years from the offer date of the option.

An option shall be subject to such terms and conditions (if any) as may be determined by the Board and specified in the offer of the option, including any vesting schedule and/or conditions, any minimum period for which any option must be held before it can be exercised and/ or any performance target which need to be achieved by an option-holder before the option can be exercised. Such terms and conditions determined by the Board must not be contrary to the purpose of the Share Option Scheme and must be consistent with such guidelines (if any) as may be approved from time to time by the Shareholders. If an option-holder is transferred to work in the PRC or another country and still continues to hold a salaried office or employment under a contract with a member of our Group or associated companies of our Company, and as a result of that transfer, he either (i) suffers a tax disadvantage in relation to his options (this being shown to the satisfaction of the Board); or (ii) becomes subject to restrictions on his ability to exercise his Options or to hold or deal in the Shares or the proceeds of the sale of the Shares acquired on exercise because of the security laws or exchange control laws of the PRC or the country to which he is transferred, then the Board may allow him to exercise his options, vested or unvested, during the period starting three months before and ending three months after the transfer takes place.

No option may be exercised in circumstances where such exercise would, in the opinion of the Board, be in breach of a statutory or regulatory requirement.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Option Scheme (continued)

Movement of Share Options

For the year ended December 31, 2025, details of the movement of outstanding share options of the Company are as follows:

Category Date of grant Option period(note 1) Share options granted Exercise price Closing Price of the Shares immediately before the date of grant Outstanding balance as of January 1, 2025 HKD HKD	During the Reporting Period Outstanding balance as of December 31, 2025 Granted Exercised Cancelled Lapsed — — — — 275,000 — — — 100,000 0 — — — — 1,000,000 — — — — 125,000 — — — — 300,000 — — — — 1,000,000 — — — — 125,000 — — — — 2,759,812 — — — — 300,000 — — — — 75,000
Ms. Liao Mingxiang (former Director) (note 8) May 17, 2021 May 17, 2021 to May 16, 2031 1,100,000 (note 5) 0.784 0.75 275,000 Mr. Chen Hao (former Director) (note 8) October 9, 2015 October 9, 2015 to October 8, 2025 100,000 (note 3) 7.18 7.18 100,000 January 18, 2017 January 18, 2017 to January 17, 2027 1,000,000 (note 3) 3.10 3.10 1,000,000 May 17, 2021 May 17, 2021 to May 16, 2031 500,000 (note 5) 0.784 0.75 125,000 Mr. Wang Jin (Director)(note 7) June 15, 2016 June 15, 2016 to June 14, 2026 300,000 (note 3) 4.366 4.18 300,000 April 1, 2019 April 1, 2019 to March 31, 2029 1,000,000 (note 4) 0.88 0.88 1,000,000 May 17, 2021 May 17, 2021 to May 16, 2031 500,000 (note 5) 0.784 0.75 125,000 July 12, 2024 July 12, 2024 to July 11, 2034 2,759,812 (note 6) 0.335 0.310 2,759,812 Ms. Qi Yunxiao_(note 8)_ April 1, 2019 April 1, 2019 to March 31, 2029 300,000 0.88 0.88 300,000 May 17, 2021 May 17, 2021 to May 16, 2031 300,000 0.784 0.88 75,000

Category
Date of grant
Option period(note 1)
Share options
granted
Exercise price
Closing Price
of the Shares
immediately
before the date
of grant
Outstanding
balance as of
January 1, 2025
HKD
HKD

During the Reporting Period
Outstanding
balance as of
December 31,
2025
Granted
Exercised
Cancelled
Lapsed
—
—
—
—
275,000
—
—
—
100,000
0
—
—
—
—
1,000,000
—
—
—
—
125,000
—
—
—
—
300,000
—
—
—
—
1,000,000
—
—
—
—
125,000
—
—
—
—
2,759,812
—
—
—
—
300,000
—
—
—
—
75,000

Ms. Liao Mingxiang
(former Director)
(note 8)
May 17, 2021
May 17, 2021 to
May 16, 2031
1,100,000
(note 5)
0.784
0.75
275,000
Mr. Chen Hao
(former Director)
(note 8)
October 9, 2015
October 9, 2015 to
October 8, 2025
100,000
(note 3)
7.18
7.18
100,000
January 18, 2017
January 18, 2017 to
January 17, 2027
1,000,000
(note 3)
3.10
3.10
1,000,000
May 17, 2021
May 17, 2021 to
May 16, 2031
500,000
(note 5)
0.784
0.75
125,000
Mr. Wang Jin
(Director)(note 7)
June 15, 2016
June 15, 2016 to
June 14, 2026
300,000
(note 3)
4.366
4.18
300,000
April 1, 2019
April 1, 2019 to
March 31, 2029
1,000,000
(note 4)
0.88
0.88
1,000,000
May 17, 2021
May 17, 2021 to
May 16, 2031
500,000
(note 5)
0.784
0.75
125,000
July 12, 2024
July 12, 2024 to
July 11, 2034
2,759,812
(note 6)
0.335
0.310
2,759,812
Ms. Qi Yunxiao_(note 8)_
April 1, 2019
April 1, 2019 to
March 31, 2029
300,000
0.88
0.88
300,000
May 17, 2021
May 17, 2021 to
May 16, 2031
300,000
0.784
0.88
75,000

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Option Scheme (continued)

Movement of Share Options (continued)

Category Date of grant Option period(note 1) Share options granted Exercise price Closing Price of the Shares immediately before the date of grant Outstanding balance as of January 1, 2025 HKD HKD	During the Reporting Period Outstanding balance as of December 31, 2025 Granted Exercised Cancelled Lapsed
Employees (other grantees) August 12, 2015 August 12, 2015 to August 11, 2025 1,849,192 (note 2) 8.10 8.10 462,298 October 9, 2015 October 9, 2015 to October 8, 2025 5,910,000 (note 3) 7.18 7.18 2,778,750 June 15, 2016 June 15, 2016 to June 14, 2026 1,450,000 (note 3) 4.366 4.18 675,000 January 18, 2017 January 18, 2017 to January 17, 2027 8,225,000 (note 3) 3.10 3.10 2,291,250 August 16, 2019 August 16, 2019 to August 15, 2029 860,000 (note 3) 0.65 0.64 621,250 May 17, 2021 May 17, 2021 to May 16, 2031 845,000 (note 3) 0.784 0.75 477,500 May 17, 2021 May 17, 2021 to May 16, 2031 400,000 (note 5) 0.784 0.75 100,000 July 12, 2024 July 12, 2024 to July 11, 2034 8,279,437 (note 6) 0.335 0.310 8,279,437	— — — 462,298 0 — — — 2,778,750 0 — — — — 675,000 — — — — 2,291,250 — — — — 621,250 — — — — 477,500 — — — — 100,000 — 1,518,000 — 1,552,393 5,209,044

During the Reporting Period
Outstanding
balance as of
December 31,
2025
Granted
Exercised
Cancelled
Lapsed

Employees (other
grantees)
August 12, 2015
August 12, 2015 to
August 11, 2025
1,849,192
(note 2)
8.10
8.10
462,298
October 9, 2015
October 9, 2015 to
October 8, 2025
5,910,000
(note 3)
7.18
7.18
2,778,750
June 15, 2016
June 15, 2016 to
June 14, 2026
1,450,000
(note 3)
4.366
4.18
675,000
January 18, 2017
January 18, 2017 to
January 17, 2027
8,225,000
(note 3)
3.10
3.10
2,291,250
August 16, 2019
August 16, 2019 to
August 15, 2029
860,000
(note 3)
0.65
0.64
621,250
May 17, 2021
May 17, 2021 to
May 16, 2031
845,000
(note 3)
0.784
0.75
477,500
May 17, 2021
May 17, 2021 to
May 16, 2031
400,000
(note 5)
0.784
0.75
100,000
July 12, 2024
July 12, 2024 to
July 11, 2034
8,279,437
(note 6)
0.335
0.310
8,279,437

—
—
—
462,298
0
—
—
—
2,778,750
0
—
—
—
—
675,000
—
—
—
—
2,291,250
—
—
—
—
621,250
—
—
—
—
477,500
—
—
—
—
100,000
—
1,518,000
—
1,552,393
5,209,044

Notes:

The vesting period of the share options starts from the date of acceptance of the grant to the commencement of the exercise period.
The share options granted on August 12, 2015 may be exercised in accordance with the following vesting timetable:

Vesting dates	Cumulative percentage of share options vested
10 months upon the acceptance of the offer for grant of	25% (rounded down to the nearest integral number of shares) of the share options
share options	granted
16 months upon the acceptance of the offer for grant of	37.5% (rounded down to the nearest integral number of shares) of the share options
share options	granted
22 months upon the acceptance of the offer for grant of	50% (rounded down to the nearest integral number of shares) of the share options
share options	granted
28 months upon the acceptance of the offer for grant of	62.5% (rounded down to the nearest integral number of shares) of the share options
share options	granted
34 months upon the acceptance of the offer for grant of	75% (rounded down to the nearest integral number of shares) of the share options
share options	granted
40 months upon the acceptance of the offer for grant of	87.5% (rounded down to the nearest integral number of shares) of the share options
share options	granted
46 months upon the acceptance of the offer for grant of	100% (rounded down to the nearest integral number of shares) of the share options
share options	granted

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Option Scheme (continued)

Movement of Share Options (continued)

Notes: (continued)

The share options granted on October 9, 2015, June 15, 2016, January 18, 2017 and August 16, 2019 and those 845,000 share options granted to employees on May 17, 2021 may be exercised in accordance with the following vesting timetable:

Vesting dates	Cumulative percentage of share options vested
12 months upon the acceptance of the offer for grant of	25% (rounded down to the nearest integral number of shares) of the share options
share options	granted
18 months upon the acceptance of the offer for grant of	37.5% (rounded down to the nearest integral number of shares) of the share options
share options	granted
24 months upon the acceptance of the offer for grant of	50% (rounded down to the nearest integral number of shares) of the share options
share options	granted
30 months upon the acceptance of the offer for grant of	62.5% (rounded down to the nearest integral number of shares) of the share options
share options	granted
36 months upon the acceptance of the offer for grant of	75% (rounded down to the nearest integral number of shares) of the share options
share options	granted
42 months upon the acceptance of the offer for grant of	87.5% (rounded down to the nearest integral number of shares) of the share options
share options	granted
48 months upon the acceptance of the offer for grant of	100% (rounded down to the nearest integral number of shares) of the share options
share options	granted

The share options granted on April 1, 2019 may be exercised in accordance with the following vesting timetable:

Vesting dates	Cumulative percentage of share options vested
Upon the acceptance of the offer	50% (rounded down to the nearest integral number of shares) of the share options
	granted
6 months upon the acceptance of the offer for grant of	58.5% (rounded down to the nearest integral number of shares) of the share options
share options	granted
12 months upon the acceptance of the offer for grant of	67% (rounded down to the nearest integral number of shares) of the share options
share options	granted
18 months upon the acceptance of the offer for grant of	75.5% (rounded down to the nearest integral number of shares) of the share options
share options	granted
24 months upon the acceptance of the offer for grant of	84% (rounded down to the nearest integral number of shares) of the share options
share options	granted
30 months upon the acceptance of the offer for grant of	92.5% (rounded down to the nearest integral number of shares) of the share options
share options	granted
36 months upon the acceptance of the offer for grant of	100% (rounded down to the nearest integral number of shares) of the share options
share options	granted

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Option Scheme (continued)

Movement of Share Options (continued)

Notes: (continued)

The share options granted on May 17, 2021 (other than those 845,000 share options granted to employees as indicated in note 3) may be exercised in accordance with the following vesting timetable:

Vesting dates	Cumulative percentage of share options vested
May 17, 2021	25% (rounded down to the nearest integral number of shares) of the share options
	granted
January 1, 2022	50% (rounded down to the nearest integral number of shares) of the share options
	granted
July 1, 2022	62.5% (rounded down to the nearest integral number of shares) of the share options
	granted
January 1, 2023	75% (rounded down to the nearest integral number of shares) of the share options
	granted
July 1, 2023	87.5% (rounded down to the nearest integral number of shares) of the share options
	granted
January 1, 2024	100% (rounded down to the nearest integral number of shares) of the share options
	granted

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Share Option Scheme (continued)

Movement of Share Options (continued)

Notes: (continued)

The share options granted on July 12, 2024 may be exercised in accordance with the following vesting timetable:

Vesting dates	Cumulative percentage of share options vested
date of grant	25% of the share options granted
the date ending 3 months after the date of grant	34.375% of the share options granted
the date ending 6 months after the date of grant	43.75% of the share options granted
the date ending 9 months after the date of grant	53.125% of the share options granted
the date ending 12 months after the date of grant	62.5% of the share options granted
the date ending 15 months after the date of grant	71.875% of the share options granted
the date ending 18 months after the date of grant	81.25% of the share options granted
the date ending 21 months after the date of grant	90.625% of the share options granted
the date ending 24 months after the date of grant	100% of the share options granted

Mr. Wang Jin is among the five persons with the highest total emoluments of the Group in 2025.
Ms. Liao Mingxiang served as the executive Director and chief executive officer of the Company, member of the Remuneration Committee, compliance officer of the Company under Rule 5.19 of the GEM Listing Rules and authorized representative of the Company under Rule 5.24 of the GEM Listing Rules. Ms. Liao Mingxiang resigned from the above positions since February 26, 2023. Ms. Qi Yunxiao served as a vice president of the Company, and resigned from the above position since March 25, 2023. Mr. Chen Hao served as an executive Director and resigned from the above position since September 2, 2024.
Please refer to the announcements of the Company dated August 12, 2015, October 9, 2015, June 15, 2016, January 18, 2017, April 1, 2019, August 16, 2019, September 12, 2019, January 21, 2020, February 7, 2020, May 17, 2021, May 18, 2021 and July 12, 2024 for details.
Since the Share Option Scheme has expired on December 29, 2024, the total number of share options that may be granted under the Share Option Scheme was 0 as of January 1, 2025 and December 31, 2025, respectively.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

2025 Share Scheme

The 2025 Share Scheme was adopted by the shareholders of the Company at the annual general meeting of the Company held on May 16, 2025 (the “ Adoption Date ”).

The key terms of the 2025 Share Scheme are as follows:

(a) Purposes of the 2025 Share Scheme

The purposes of the 2025 Share Scheme are (i) to provide eligible participants under the 2025 Share Scheme (the “ Eligible Participants ”) with the opportunity to acquire the ownership interest in the Company; (ii) to encourage and retain such individuals to promote the ongoing operations and development of the Group; (iii) to provide such individuals with additional incentives to achieve performance targets; (iv) to attract suitable employees to drive the further development of the Group; (v) to attract and retain or otherwise maintain the ongoing business relationships with Service Providers who contribute to the Group; and (vi) to motivate such individuals to maximize value for the Group, in order to benefit the Eligible Participants and the Company, to achieve the goal of enhancing the value of the Group, and to align their interests directly with those of the Shareholders through the ownership of Shares.

(b) Eligible Participants in the 2025 Share Scheme

The Eligible Participants of the 2025 Share Scheme include:

(i) director(s) and employee(s) of the Group (including persons who are granted options and/or RSUs (as the case may be) under the 2025 Share Scheme to facilitate their entering into employment contracts with the Group) (the “ Employee Participants ”);
(ii) director(s) and employee(s) of the holding companies, fellow subsidiaries or associated companies of the Company (the “ Related Entity Participants ”); and
(iii) person(s) who provide services to the Group on a continuing or recurring basis in its ordinary and usual course of business which are in the interests of the long-term growth of the Group, including (i) suppliers, contractors or sub-contractors who provide services to any members of the Group during the ordinary and usual course of business of the Group; and (ii) agents, advisors and consultants to any members of the Group who provide consulting and/or advising services regarding any business aspects or in the ordinary and usual course of business of the Group, excluding (i) placing agents or financial advisors providing advisory services for fundraising, mergers or acquisitions, and (ii) professional services providers such as auditors or valuers who provide assurance or are required to perform their services with impartiality and objectivity (the “ Service Providers ”).

(c) Maximum number of Shares subject to the 2025 Share Scheme

The total number of Shares which may be issued upon exercise of all options, RSUs and awards (excluding any options, RSUs and awards lapsed under the 2025 Share Scheme and other share schemes of the Company involving the issue of new Shares) to be granted, which shall not exceed 10% of the total number of Shares in issue (excluding treasury Shares, if any) on the Adoption Date and December 31, 2025, which is 36,797,496 Shares, respectively, and representing approximately 9.96% of the issued share capital of the Company as of the date of this report. Since the 2025 Share Scheme was adopted on May 16, 2025, the total number of options, RSUs and awards that may be granted under the 2025 Share Scheme was nil as of January 1, 2025.

The Service Provider sub-limit as of the Adoption Date and December 31, 2025 were both 3,679,749 shares (representing 1% of the Company’s issued shares as of the Effective Date and 0.9% as of the date of this report).

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

2025 Share Scheme (continued)

(d) Maximum entitlement of each Eligible Participant

Where (a) any grant of RSUs under the 2025 Share Scheme or awards (excluding share options) under share schemes of the Company involving the issue of new Shares to a chief executive officer of the Company or Director (excluding any independent non-executive Director) or any of their respective associates, resulting in the aggregate number of new Shares issued and to be issued in respect of all RSUs and the awards (excluding RSUs and awards that have been lapsed under the terms of the 2025 Share Scheme and share schemes of the Company involving the issue of new Shares and share options) in any 12-month period up to and including the date of grant to such individuals exceeding 0.1% of the total number of Shares then in issue (excluding treasury Shares), or (b) any options and/or RSUs are granted to a substantial shareholder of the Company or independent non-executive Director or any of their respective associates, resulting in the aggregate number of new Shares issued and to be issued under the options and RSUs granted and the awards granted under the share schemes of the Company involving the issue of new Shares (excluding options, RSUs and awards that have been lapsed under the terms of the 2025 Share Scheme and share schemes of the Company involving the issue of new Shares) in any 12-month period up to and including the date of grant to such individuals exceeding 0.1% of the total number of Shares then in issue (excluding treasury Shares), such grant must be approved by the Shareholders in a general meeting of the Company.

During any 12-month period up to and including the date of grant, the total number of new Shares in issue and to be issued under all options, RSUs and awards granted or to be granted to any Eligible Participants under the 2025 Share Scheme and other share schemes involving the issue of new Shares (excluding any options, RSUs and awards lapsed in accordance with the 2025 Share Scheme and any other share schemes of the Company involving the issue of new Shares) shall not exceed 1% of the relevant class of Shares (excluding treasury Shares) of the Company in issue then, unless such proposed grant has been approved by shareholders of the Company at a general meeting and the Eligible Participant and its close associates or (if the Eligible Participant is a connected person) its associates must abstain from voting.

(e) Time of exercise

Subject to the terms of the 2025 Share Scheme, an option and/or RSU may be exercised at any time during the period stipulated in the grant to the Eligible Participant, which is determined by the Board according to its absolute discretion, but in respect of any option, such period shall not exceed 10 years from the date of grant (the “ Exercise Period ”).

(f) Vesting period

The vesting period of an option and/or RSU shall be determined by the Board at its discretion and shall not be less than 12 months, provided that if the Remuneration Committee (or, as the case may be, the Board) determines that a shorter vesting period is appropriate for the purposes of the 2025 Share Scheme, the Remuneration Committee (where such arrangements involve the grant of options and/or RSUs to the Directors and/or the Senior Management) or the Board (where such arrangements do not involve any grant of options and/or RSUs to the Directors and/or the Senior Management) shall be entitled to set a shorter vesting period for the Employee Participants.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

2025 Share Scheme (continued)

(g) Acceptance

Options and/or RSUs shall remain open for acceptance by the relevant Eligible Participant in writing in such form as the Board may require for a period of 30 days from the date of grant. In terms of offer of options, no offer shall be accepted upon the expiry of the Exercise Period. If the offer is not accepted, the offer of options shall lapse. In terms of offer of RSUs, no offer shall be accepted upon the expiry of the valid period of the 2025 Share Scheme. If the offer is not accepted, the offer of RSUs shall lapse. Unless the grantee remains an Eligible Participant while accepting the grant, such grant shall not be accepted. Unless otherwise determined by the Board in the grant letter, Eligible Participants shall not be liable or required to pay any price or expense in connection with the acceptance of options and/or RSUs. Options and/or RSUs are deemed to be granted as of the date of the grant letter when the Company receives from the grantee a copy of the letter of acceptance for the options and/or RSUs duly signed by the grantee.

(h) Exercise price

The exercise price (if any) of any particular option and/or RSU shall be such price determined by the Board in its absolute discretion based on the closing price of the Shares, the purposes of the grant of options and/or RSUs, the situation and backgrounds of the Eligible Participants and etc. (and shall be stated in the grant letter), but shall be subject to any adjustments pursuant to the 2025 Share Scheme. Without prejudice to the generality of the aforesaid provisions, the Board may grant options and/or RSUs at different prices at different times during the Exercise Period. Subject to any adjustments pursuant to the 2025 Share Scheme, the exercise price of an option shall, in any event, not be less than the highest of: (a) the closing price of the Shares as stated in the daily quotation sheet issued by the Stock Exchange on the date of grant which must be a business day; (b) the average closing price of the Shares as stated in the daily quotation sheets issued by the Stock Exchange for the five business days immediately preceding the date of grant; and (c) the nominal value of the Shares.

(i) Term and remaining life of the 2025 Share Scheme

The 2025 Share Scheme shall continue to be in force and effective for a period of ten years from the effective date. Following the termination of the 2025 Share Scheme, no further options and/or RSUs will be granted but the provisions of the 2025 Share Scheme will otherwise remain in full force and effect to the extent that options and/or RSUs granted or exercised prior to the termination of the 2025 Share Scheme will be implemented in accordance with the terms of the 2025 Share Scheme. As of the date of this report, the remaining life of the 2025 Share Scheme is approximately 9 years and 7 months. For the year ended December 31, 2025, no options or RSUs were granted under the 2025 Share Scheme.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

SHARE INCENTIVE SCHEME, SHARE OPTION SCHEME AND 2025 SHARE SCHEME (continued)

Other Information

The weighted average closing price of the shares of the Company immediately before the date on which RSUs during the reporting period were vested was HK$0.4192 per Share. The weighted average closing price of the shares of the Company immediately before the date on which share options during the reporting period were exercised was HK$0.4125 per Share.

During 2025, the number of shares that may be issued in respect of RSUs and share options granted under the 2024 RSU Scheme, Share Option Scheme and 2025 Share Scheme divided by the weighted average number of ordinary Shares issued during the year is 0.

INTERESTS IN COMPETING BUSINESS

None of the Directors or controlling shareholders of the Company or any of their respective associates, as defined in the GEM Listing Rules, has engaged in any business that competes or may compete, either directly or indirectly, with the businesses of the Group or has any other conflict of interests with the Group during the year ended December 31, 2025.

CONTROLLING SHAREHOLDERS’ INTERESTS IN CONTRACTS

Save as disclosed in this report, no Controlling Shareholder or any of its subsidiaries had a material interest, whether directly or indirectly, in any contract of significance to the business of the Group to which the Company or any of its subsidiaries was a party or any contracts of significance for the provision of services to the Company or any of its subsidiaries during the Reporting Period.

NON-COMPETITION UNDERTAKINGS IN DIRECTORS’ SERVICE CONTRACT

Each of the executive Directors has undertaken, among other things, not to accept any positions/job titles or conduct any business transactions with any individual or company that in any way competes with the Group or our associated companies, whether directly or indirectly. The executive Directors have also undertaken that they would not hold more than 5% of the economic interests and/or participate in any business activities of the aforesaid companies. Each of the executive Directors confirms that he/she had complied with the non-competition undertakings as set out in their respective service contracts from the date of the service contract up to the date of this report.

CONTRACTUAL ARRANGEMENTS

Pursuant to applicable PRC Laws and regulations, foreign investors are prohibited from holding equity interest in an entity conducting online games business (the “ Principal Business ”) and are restricted to conduct value-added telecommunications services. Accordingly, the Group cannot acquire equity interest in Linekong Online, which conducts the Principal Business and holds the assets and certain licenses, approvals and permits required for the operation of our Principal Business.

As a result of the foregoing, the Group, through a wholly-owned subsidiary of the Company, Linekong Online (Beijing) Internet Technology Co., Ltd. (“ Beijing Linekong Online ”), entered into a series of contracts (the “ Contractual Arrangements ”) with Linekong Online and Mr. Wang Feng, Ms. Liao Mingxiang and Mr. Zhang Yuyu (Mr. Wang, Ms. Liao and Mr. Zhang, collectively referred to as the “ Registered Shareholders ”) on January 16, 2014 (and subsequently amended on November 24, 2014) to assert management control over the operations of the Principal Business conducted through Linekong Online, and to enjoy all economic benefits of Linekong Online, and in consideration of which, Beijing Linekong Online shall provide, among other things, technology consulting and service to Linekong Online. Linekong Online is an operating company of the Group established under the laws of the PRC and currently holds several domestic operating companies in the PRC to conduct the Principal Business. The Contractual Arrangements are designed to provide our Group with effective control over the financial and operation policies of Linekong Online and, to the extent permitted by PRC law and regulations, the right to acquire the equity interests in and/or the assets of Linekong Online through Beijing Linekong Online. As of December 31, 2025, Linekong Online was owned as to 75.45%, 13.64% and 10.91% by Mr. Wang Feng, Ms. Liao Mingxiang and Mr. Zhang Yuyu, respectively, where the Group does not hold any direct equity interest in Linekong Online, and the Group assert management control over the operations and enjoy all economic benefits of Linekong Online through the Contractual Arrangements. The Directors (including the independent non-executive Directors) are of the view that the Contractual Arrangements and the transactions contemplated thereunder are fundamental to the Group’s legal structure and business operations.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

CONTRACTUAL ARRANGEMENTS (continued)

Major terms of the contracts under the Contractual Arrangements

The Contractual Arrangements currently in effect comprise four agreements, namely (i) the Amended and Restated Exclusive Technology Consulting and Service Agreement, (ii) the Amended and Restated Exclusive Call Option Agreement, (iii) the Amended and Restated Equity Pledge Agreement and (iv) the Loan Agreement, which were entered into between or amongst Beijing Linekong Online, Linekong Online and the Registered Shareholders (as the case may be), and the irrevocable power of attorney executed by each Registered Shareholder.

A summary of the major terms of the four agreements and the power of attorney of the Contractual Arrangements is as follows:

(a) Amended and Restated Exclusive Technology Consulting and Service Agreement

Beijing Linekong Online and Linekong Online entered into an Amended and Restated Exclusive Technology Consulting and Service Agreement on January 16, 2014, and as further amended on November 24, 2014, pursuant to which, among others:

i. Linekong Online agreed to engage Beijing Linekong Online as its exclusive technology consultant and service provider. The technology advices and services which Beijing Linekong Online shall provide to Linekong Online include, but are not limited to, (i) research and development of technologies necessary for the operations of Linekong Online, (ii) application and implementation of technologies relevant to the operations of Linekong Online, (iii) technical services related to advertisement design, software design, and webpage production with respect to Linekong Online’s advertising business, and provide management advices and recommendations, and (iv) daily maintenance, supervision, commissioning and troubleshooting of Linekong Online’s computer network equipment and other technical services;
ii. Linekong Online shall pay to Beijing Linekong Online a service fee that equals the profit before taxation of Linekong Online, including all profits attributable to Linekong Online of, and any other distributions received by Linekong Online from, any of its subsidiaries in any given year but without taking into account the service fee payable under the agreement and after offsetting the prior-year loss (if any) and deducting such amounts as required for working capital expenses and tax of each of Linekong Online and its subsidiaries (as the case may be) in any given year; and
iii. Beijing Linekong Online shall enjoy all economic benefits of, and bear all risks arising from, the conduct of Principal Business by Linekong Online. In the event that Linekong Online incurs significant operating loss or experienced serious difficulties in its operations, Beijing Linekong Online shall provide financial support to Linekong Online and shall have the right to request Linekong Online to cease in operation.

The Amended and Restated Exclusive Technology Consulting and Service Agreement has an initial term of ten (10) years and may be automatically extended for another ten years at the discretion of Beijing Linekong Online. The Amended and Restated Exclusive Technology Consulting and Service Agreement may be terminated by Beijing Linekong Online by giving Linekong Online 30 days’ prior written notice of termination or shall be terminated upon the transfer of the entire equity interests in and/or the transfer of all assets of Linekong Online to Beijing Linekong Online or its designated person(s) pursuant to the Amended and Restated Exclusive Call Option Agreement. Linekong Online is not contractually entitled to terminate the Amended and Restated Exclusive Technology Consulting and Service Agreement with Beijing Linekong Online.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

CONTRACTUAL ARRANGEMENTS (continued)

Major terms of the contracts under the Contractual Arrangements (continued)

(b) Amended and Restated Exclusive Call Option Agreement

Beijing Linekong Online, the Registered Shareholders and Linekong Online entered into an Amended and Restated Exclusive Call Option Agreement on January 16, 2014, and as further amended on November 24, 2014, pursuant to which, among others:

i. the Registered Shareholders jointly and severally granted to Beijing Linekong Online (exercisable by itself or any direct or indirect shareholder of Beijing Linekong Online and a direct or indirect subsidiary of such shareholder (i.e. being any member of our Group) or an authorised director (being a PRC citizen) of any such member of our Group as designated by Beijing Linekong Online) irrevocable options to (i) purchase, to the extent permitted by PRC laws and regulations, their equity interests in Linekong Online, entirely or partially, at the minimum purchase price permitted under PRC laws and regulations or (ii) acquire to the extent permitted by PRC laws and regulations, all or part of the assets (including all intellectual properties) of Linekong Online at the net book value of such assets or such minimum purchase price permitted under PRC laws and regulations;
ii. Beijing Linekong Online (by itself or any of its designees) may exercise such options at any time until it has acquired all equity interests and/or assets (including all intellectual properties) of Linekong Online, subject to applicable PRC laws and regulations; and
iii. Beijing Linekong Online shall have the right to forthwith exercise the option granted under the Amended and Restated Exclusive Call Option Agreement when relevant PRC laws and regulations permit the equity interests of Linekong Online to be directly held by Beijing Linekong Online while Linekong Online continues to operate the Principal Business.

The Amended and Restated Exclusive Call Option Agreement shall expire when all the equity interests in and assets of Linekong Online have been transferred to Beijing Linekong Online or its designee, unless and until Beijing Linekong Online, at its sole discretion, gives Linekong Online and the Registered Shareholders a 30 days’ prior written notice of termination. Linekong Online and the Registered Shareholders are not contractually entitled to terminate the Amended and Restated Exclusive Call Option Agreement with Beijing Linekong Online.

(c) Amended and Restated Equity Pledge Agreement

Beijing Linekong Online and the Registered Shareholders entered into the Amended and Restated Equity Pledge Agreement on January 16, 2014, pursuant to which, among others:

i. each of the Registered Shareholders agreed to pledge all of their respective equity interests in Linekong Online to Beijing Linekong Online to secure performance of all their obligations and the obligations of Linekong Online under the Contractual Arrangements. If any Registered Shareholder breaches or fails to fulfil the obligations, Beijing Linekong Online, as the pledgee, will be entitled to foreclose the pledged equity interests, entirely or partially;
ii. each Registered Shareholder has undertaken to Beijing Linekong Online, among other things, not to transfer or otherwise dispose his/her equity interests in Linekong Online and not to create or allow any pledge thereon that may affect the rights and interest of Beijing Linekong Online without its prior written consent;
iii. appropriate arrangements have been made to protect Beijing Linekong Online’s interests in the event of death, incapacity, bankruptcy or divorce of the Registered Shareholders or any other circumstances that may affect their exercise of the shareholders’ rights to avoid any practical difficulties in enforcing the Amended and Restated Equity Pledge Agreement; and
iv. if Linekong Online declares any dividend or distribute any income during the term of the pledge, Beijing Linekong Online is entitled to receive all such dividends, bonus issue or other income arising from the pledged equity interests.

The Amended and Restated Equity Pledge Agreement shall terminate when Linekong Online has fulfilled and performed all obligations under the agreements underlying the Contractual Arrangements or upon the termination of the agreements underlying the Contractual Arrangements.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

CONTRACTUAL ARRANGEMENTS (continued)

Major terms of the contracts under the Contractual Arrangements (continued)

(d) Loan Agreement

In order to satisfy the funding needs in Linekong Online, the Registered Shareholders borrowed a sum of RMB9,970,000 from the Company without interest on or around the date of establishment of Linekong Online. Beijing Linekong Online and the Registered Shareholders subsequently entered into the Loan Agreement, pursuant to which Beijing Linekong Online agreed to lend a total of RMB9,970,000 to the Registered Shareholders without interest, in order to assume the loan originally granted by the Company, for the purpose of acquiring the equity interest in Linekong Online. The relevant portion of the loan will become due and payable upon Beijing Linekong Online’s demand under certain circumstances, including but not limited to: (i) the relevant Registered Shareholder resigning or is being removed from the various positions held by him/her in the Group; (ii) the relevant Registered Shareholder becoming insolvent or incurring any other significant personal debt which may affect his/her ability to repay the loan under the Loan Agreement; or (iii) Beijing Linekong Online exercising its option to purchase all equity interests in Linekong Online to the extent permitted by PRC laws and regulations as soon as the PRC foreign ownership restrictions applicable to our Group’s mobile and online games business have been lifted.

The Loan Agreement is for a term of ten (10) years commencing from April 14, 2008, and may be automatically extended for another ten (10) years upon each expiry. Linekong Online is not contractually entitled to terminate the Loan Agreement with Beijing Linekong Online.

(e) Power of Attorney

On January 16, 2014, each Registered Shareholder executed an irrevocable Power of Attorney to appoint a director of any direct or indirect shareholder of Beijing Linekong Online or his/her successor who is a PRC citizen as proxy of the relevant Registered Shareholder to exercise all of their respective shareholders’ rights in Linekong Online. Pursuant to the Power of Attorney, the shareholders’ rights exercisable by the proxy include, but not limited to, the rights to (i) attend shareholders’ meetings and pass any shareholders’ resolution of Linekong Online; (ii) exercise all shareholders’ rights in accordance with applicable laws and the articles and constitutional documents of Linekong Online; (iii) submit and/or file any documents or information to relevant companies registry; and (iv) elect and appoint the legal representative, chairman, directors, supervisors, general manager and other senior management of Linekong Online.

Under each Power of Attorney, each Registered Shareholder irrevocably confirmed that the power of attorney shall remain in full force and effect during the term which the relevant Registered Shareholder remains as a shareholder of Linekong Online.

For further details of the terms of the four agreements and power of attorney of the Contractual Arrangements, please refer the section headed ”Contractual Arrangements — Details of the Existing Agreements” of the prospectus of the Company dated December 9, 2014 (the “ Prospectus ”).

Risks associated with the Contractual Arrangements

There are certain risks associated with the Contractual Arrangements, which include, but not limited to: (i) if the PRC government finds that the agreement that establish the structure for operating the online game businesses of the Group in China do not comply with applicable PRC laws and regulations, or if these regulations or their interpretations change in the future, the Group could be subject to severe consequences, including the nullification of the Contractual Arrangements and the relinquishment of the Group’s interest in Linekong Online; (ii) Registered Shareholders may have conflicts of interest with the Group, which may materially and adversely affect the business of the Group; (iii) the Group may lose the ability to use and enjoy assets held by Linekong Online that are important to the operation of the business of the Group if Linekong Online declares bankruptcy or become subject to a dissolution or liquidation proceeding; and (iv) the Group principally rely on dividends and other distributions on equity paid by Beijing Linekong Online to fund any cash and financing requirements the Group may have. Any limitation on Beijing Linekong Online’s ability to make payments to the Group could have a material adverse effect on the Group’s ability to conduct the Group’s business or financial condition. For further details of the risks associated with the Contractual Arrangements, please refer the section headed ”Risk Factors — Risks Relating to Our Corporate Structure” of the Prospectus.

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2025 Annual Report | Linekong Interactive Group Co., Ltd.

Directors’ Report

CONTRACTUAL ARRANGEMENTS (continued)

Major terms of the contracts under the Contractual Arrangements (continued)

(e) Power of Attorney (continued)

Measures adopted by our Group

The Group has adopted various measures to ensure legal and regulatory compliance and to ensure the sound and effective operation of the Group (including Linekong Online and its subsidiaries) and the implementation of the Contractual Arrangements, which include, but not limited to: (i) as part of the internal control measure, major risks and issues arising from implementation of the Contractual Arrangements have been regularly reviewed, at least on a quarterly basis, by the Board; (ii) the relevant business units and operation divisions of the Group will report regularly, which will be no less frequently than on a monthly basis, to the senior management of the Company in relation to compliance and performance conditions the Contractual Arrangements and other related matters; (iii) the company seals, financial seals, contract seals and crucial corporate certificates of Linekong Online and its subsidiaries are kept by the Group’s finance department; (iv) the independent non-executive Directors will review the compliance of the Contractual Arrangements on an annual basis and their confirmation will be disclosed in the Annual Report; (v) if necessary, legal advisors and, or other professionals will be retained to assist the Group to deal with specific issues arising from the Contractual Arrangements and to ensure that the operation and implementation of the Contractual Arrangements as a whole will comply with applicable laws and regulations; (vi) the Group will unwind the Contractual Arrangements as soon as relevant PRC laws and regulations allow the Principal Business to be conducted and operated by owned subsidiaries of the Company without such arrangements in place; (vii) each of Mr. Wang Feng and Ms. Liao Mingxiang, being the executive Directors and/or the Registered Shareholders (as the case may be), shall abstain from voting on any resolutions at any Board meeting or shareholders’ meeting of the Company or Linekong Online (as the case may be) in which he/she may have conflict of interest. For further details of the actions taken by the Company to mitigate the risks associated with the Contractual Arrangements, please refer the section headed ”Contractual Arrangements — Operations in Compliance with the Contractual Arrangements” of the Prospectus.

Revenue and assets subject to the Contractual Arrangements

For the year ended December 31, 2025, the revenue and net loss subject to the Contractual Arrangements are RMB30.3 million and RMB 22.6 million (amounted to approximately 73.3% and 181.9% of the total revenue and net loss of the Group), respectively.

As of December 31, 2025, the total assets subject to the Contractual Arrangements is RMB110.0 million, amounted to approximately 35.2% of the total assets of the Group.

Change of circumstances

There had been no material change in the arrangements under the Contractual Arrangements and/or the circumstances under which they were adopted. As of the date of this Annual Report, the foreign investment restrictions which gave rise to the arrangements under the Contractual Arrangements are still in existence.

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100

Directors’ Report

CONNECTED AND CONTINUING CONNECTED TRANSACTIONS

Continuing Connected Transactions

Contractual Arrangements

The Contractual Arrangements constitute non-exempt continuing connected transactions under Chapter 20 of the GEM Listing Rules. As Mr. Wang Feng is a 26.88% shareholder of the Company (excluding the 8,433,308 RSUs granted to him under the 2014 RSU Scheme and the 6,941,398 RSUs granted to him under the 2024 RSU Scheme), a 75.45% registered shareholder of Linekong Online (being a subsidiary of the Company controlled through the Contractual Arrangements), and an executive Director; Ms. Liao Mingxiang is a then executive Director and a 13.64% registered shareholder of Linekong Online; and Mr. Zhang Yuyu is a 10.91% registered shareholder of Linekong Online, each of Mr. Wang Feng, Ms. Liao Mingxiang and Mr. Zhang Yuyu is a connected person of the Company pursuant to Rule 20.07(1) of the GEM Listing Rules. In addition, Linekong Online is owned as to 75.45%, 13.64% and 10.91% by Mr. Wang Feng, Ms. Liao Mingxiang and Mr. Zhang Yuyu, respectively, and hence an associate of Mr. Wang Feng. Linekong Online is therefore a connected person of the Company under Rule 20.07(4) of the GEM Listing Rules. Accordingly, the transactions (if any) contemplated under the Contractual Arrangements constitute continuing connected transactions of the Company under the GEM Listing Rules. For details of the Contractual Arrangements, please refer to the paragraphs headed “Contractual Arrangements” in this report.

The Stock Exchange has granted a waiver pursuant to Rule 20.103 of the GEM Listing Rules from strict compliance with (i) the announcement and independent shareholders’ approval requirements under Chapter 20 of the GEM Listing Rules in respect of the transactions contemplated under the Contractual Arrangements; (ii) the requirement of setting annual caps for the fees payable to Beijing Linekong Online under the Contractual Arrangements; and (iii) the requirement of limiting the term of the Contractual Arrangements to three years or less, for so long as the shares of the Company are listed on the GEM. For further details of the waiver granted by the Stock Exchange, please refer to the section headed ”Connected Transactions — Non-exempted Continuing Connected Transactions” of the Prospectus.

During the year ended December 31, 2025, there was no transaction conducted under the Contractual Arrangements.

Independent non-executive Directors’ confirmation

Our independent non-executive Directors confirmed, after conducting annual review on the Contractual Arrangements and the transactions contemplated thereunder, that:

(1) no transactions were carried out for the financial year ended December 31, 2025;
(2) no dividends or other distributions have been made by Linekong Online to the holders of its equity interests which are not otherwise subsequently assigned or transferred to our Group; and
(3) there were no new contracts entered into, renewed or reproduced between the Group and Linekong Online for the financial year ended December 31, 2025.

RELATED PARTY TRANSACTIONS

Details of the Group’s related party transactions are set out in note 38 to the consolidated financial statements in this Annual Report. Save for the amount due to Fuze which does not constitute connected transaction of the Company, all the other related party transactions constitute connected transactions or continuing connected transactions of the Company, among which key management personnel compensation are fully exempted connected transactions or continuing connected transactions, as the case may be.

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101

Directors’ Report

CORPORATE GOVERNANCE

Details of the Company’s corporate governance practices are set out in the Corporate Governance Report on pages 23 to 37 of this Annual Report.

SUFFICIENCY OF PUBLIC FLOAT

Based on information that is publicly available to the Company and within the knowledge of the Directors, the Directors confirm that the Company maintained the amount of public float as required under the GEM Listing Rules throughout the Reporting Period and thereafter up to the date of this report.

PRE-EMPTIVE RIGHTS

There are no provisions for pre-emptive rights under our articles of association or applicable laws of the Cayman Islands, being the jurisdiction in which the Company was incorporated.

INDEPENDENCE OF INDEPENDENT NON-EXECUTIVE DIRECTORS

The Company has received from each of the independent non-executive Directors, the annual confirmation of his or her independence pursuant to Rule 5.09 of the GEM Listing Rules in writing and the Company considers all the independent non-executive Directors to be independent.

INDEPENDENT AUDITOR

The consolidated financial statements of the Company for the year ended December 31, 2025 were audited by Baker Tilly Hong Kong Limited. A resolution will be proposed at the forthcoming annual general meeting of the Company to re-appoint Baker Tilly Hong Kong Limited as auditor of the Company.

CHANGE OF AUDITOR

Baker Tilly Hong Kong Limited was appointed as the auditor of the Company from June 30, 2023. Save as disclosed above, the Company did not change its auditor in the past three years.

DONATIONS

No donation has been made by the Group during the year ended December 31, 2025.

EQUITY-LINKED AGREEMENTS

During the year ended December 31, 2025, neither the Company nor any of its subsidiaries have entered into equity-linked agreements.

EVENTS AFTER THE REPORTING PERIOD

Save as disclosed in note 40 to the consolidated financial statements, there are no significant subsequent events after the Reporting Period.

March 27, 2026

ON BEHALF OF THE BOARD Wang Feng Chairman

2025 Annual Report | Linekong Interactive Group Co., Ltd.

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Independent Auditor’s Report

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Independent auditor’s report to the shareholders of Linekong Interactive Group Co., Ltd.

(incorporated in the Cayman Islands with limited liability)

Opinion

We have audited the consolidated financial statements of Linekong Interactive Group Co., Ltd. (the “ Company ”) and its subsidiaries (collectively referred to as the “ Group ”) set out on pages 107 to 179, which comprise the consolidated statement of financial position as of December 31, 2025, and the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the Group as of December 31, 2025, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“ IASB ”) and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance.

Basis for opinion

We conducted our audit in accordance with Hong Kong Standards on Auditing (“ HKSAs ”) issued by the Hong Kong Institute of Certified Public Accountants (the “ HKICPA ”). Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the consolidated financial statements” section of our report. We are independent of the Group in accordance with the HKICPA’s Code of Ethics for Professional Accountants (the “ Code ”) as applicable to audits of financial statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Independent Auditor’s Report (Continued)

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters identified in our audit are summarised as follows:

Accounting estimation involved in revenue recognition for sales of in-game virtual items
Valuation of level 3 financial assets at fair value through profit or loss

Key audit matter

How our audit addressed the key audit matter

Accounting estimation involved in revenue recognition for sales of in-game virtual items

Refer to Note 2.20(i), Note 4.1(a) and Note 5 to the consolidated financial statements.

For the year ended December 31, 2025, the Group has generated revenue from sales of in-game virtual items of RMB30.9 million. The recognition of the revenue generated from sales of in-game virtual items involved the estimation of the lives of in-game permanent ownership items (“ Player Relationship Period ”).

Our procedures in relation to the estimation of the Player Relationship Period used when recognising revenue from the sales of in-game virtual items included:

We obtained an understanding of and assessed the design, implementation and operating effectiveness of management's key internal controls in relation to revenue recognition for sales of ingame virtual items.

Management has estimated the Player Relationship Period on a gameby-game basis for the purpose of revenue recognition.

We focused on this area because of the inherent uncertainties and subjectivities involved in the estimation of the Player Relationship Period, which could impact the amount of the revenue recognised in the current period in relation to the sales of in-game virtual items.

We assessed the appropriateness of the methodologies and assumptions used in the estimation of the Player Relationship Period by checking the mathematical formula as well as comparing them with historical data.
We tested with the involvement of our information technology risk management specialist to assess the completeness and accuracy of key inputs such as log-in records for the calculation of Player Relationship Period.
On a sample basis, we compared the key inputs used in the estimation, including the quantity of paying players of games and their log-in records, with the original data directly extracted from the game servers.
On a sample basis, we recalculated the related Player Relationship Periods, and compared the results with the Player Relationship Periods of these games estimated by management.

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Independent Auditor’s Report (Continued)

Key audit matters (Continued)

Key audit matter How our audit addressed the key audit matter Valuation of level 3 financial assets at fair value through profit or loss Refer to Note 2.11, Note 3.3 and Note 4.1(b) to the consolidated Our procedures in relation to the valuation of level 3 financial assets at financial statements. fair value through profit or loss included:

As of December 31, 2025, the Group has level 3 financial assets at fair • We obtained an understanding of and assessed the design, value through profit or loss of RMB20.7 million. implementation and operating effectiveness of management's key internal controls in relation to valuation of level 3 financial assets
One or more significant inputs to the valuation for level 3 financial at fair value through profit or loss. assets at fair value through profit or loss are not based on active market prices or observable market data. • We evaluated the Group’s internal valuation process as well as the external valuer’s competence, capability and objectivity in
Management assessed and measured the level 3 financial assets at fair those cases where an external valuer was involved. value through profit or loss using a discounted cash flow method. An external valuer was engaged by management to assist in preparing • We obtained the calculation sheets of the fair value estimations the valuation. The determination of the model to be used, inputs of level 3 financial assets at fair value through profit or loss, and and assumptions to be adopted requires significant judgement and tested the accuracy of the mathematical calculations applied in estimation, which could have a material impact on the fair value to be the fair value estimations. measured. We therefore focused on this area.
We assessed the appropriateness of valuation model adopted, and evaluated the reasonableness of underlying assumptions adopted by management in determining the fair value, including the discount rate, compound annual growth rate of revenue, discount for lack of marketability and volatility.
We evaluated management’s future cash flow forecasts by comparing the input data used in the cash flow forecasts against the historical figures, the approved budgets and the business plans.
We assessed the reasonableness of the key assumptions including revenue growth rates, discount for lack of marketability and volatility in the cash flow forecasts by comparing them to historical results and industry performances.
We assessed the reasonableness of the disclosures in the consolidated financial statements in respect of level 3 financial assets at fair value through profit or loss with reference to the requirements of the prevailing accounting standards.

Other information

The directors are responsible for other information. The other information comprises all the information included in the annual report, but does not include the consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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Independent Auditor’s Report (Continued)

Responsibilities of directors and those charged with governance for the consolidated financial statements

The directors are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as issued by the IASB and the disclosure requirements of the Hong Kong Companies Ordinance, and for such internal control as the directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. This report is made solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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Independent Auditor’s Report (Continued)

Auditor’s responsibilities for the audit of the consolidated financial statements (Continued)

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement director on the audit resulting in this independent auditor’s report is Chan Sai Ho.

Baker Tilly Hong Kong Limited Certified Public Accountants

Hong Kong, March 27, 2026 Chan Sai Ho Practising certificate number P07705

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107

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended December 31, 2025

Note	2025 2024 RMB’000 RMB’000
Revenue 5 Cost of revenue 8 Gross profit Selling and marketing expenses 8 Administrative expenses 8 Research and development expenses 8 Net impairment losses on trade and other receivables and contract assets 8 Other operating income — net 6 Operating loss Other losses — net 7 Finance income — net 10 Share of profit of investment accounted for using equity method 14 Loss before income tax Income tax expense 11 Loss for the year Other comprehensive (loss)/income Item that may be subsequently reclassified to profit or loss: — Share of other comprehensive (loss)/income of investment accounted for using equity method, net of tax 14 Item that will not be reclassified to profit or loss: — Currency translation differences Other comprehensive (loss)/income for the year, net of tax Total comprehensive loss for the year Loss attributable to: Owners of the Company Non-controlling interests Loss for the year Total comprehensive loss attributable to: Owners of the Company Non-controlling interests Total comprehensive loss for the year Loss per share (expressed in RMB per share) — Basic 12(a) — Diluted 12(b)	41,358 146,049 (32,978) (124,614)
	8,380 21,435 (9,023) (13,321) (25,855) (35,378) (4,879) (17,553) (1,376) (182) 24,185 13,863
	(8,568) (31,136) (7,376) (3,269) 1,154 965 2,534 3,550
	(12,256) (29,890) (160) (10)
	(12,416) (29,900)
	(1,410) 815 (4,419) 2,125
	(5,829) 2,940
	(18,245) (26,960)
	(10,289) (29,031) (2,127) (869)
	(12,416) (29,900)
	(16,118) (26,091) (2,127) (869)
	(18,245) (26,960)
	(0.03) (0.08)
	(0.03) (0.08)

The accompanying notes are integral parts of these consolidated financial statements.

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108

Consolidated Statement of Financial Position

As of December 31, 2025

Note	2025 2024 RMB’000 RMB’000
ASSETS Non-current assets Property, plant and equipment 16 Right-of-use assets 17 Intangible assets 18 Film rights and films in progress 19 Investment accounted for using equity method 14 An associate measured at fair value through profit or loss 15 Financial assets at fair value through profit or loss 21 Other receivables 24 Other non-current assets 25 Current assets Inventories 22 Trade receivables 23 Contract assets 31(a) Financial assets at fair value through profit or loss 21 Other receivables 24 Other current assets 25 Cash and cash equivalents 26 Restricted cash 26 Total assets	4,304 6,606 5,337 — 87,571 53,906 12,728 9,059 42,461 41,337 20,332 21,643 20,706 40,294 1,698 834 5,667 5,209
	200,804 178,888
	165 — 2,641 3,753 — 5,063 2,471 — 15,847 15,827 22,747 22,114 67,242 89,883 332 —
	111,445 136,640
	312,249 315,528

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Consolidated Statement of Financial Position (Continued)

As of December 31, 2025

Note	2025 2024 RMB’000 RMB’000
EQUITY AND LIABILITIES Equity attributable to owners of the Company Share capital 27 Share premium 27 Shares held for restricted share unit scheme 27 Reserves 28 Accumulated losses Non-controlling interests Total equity Liabilities Non-current liabilities Contract liabilities 31(b) Lease liabilities 17 Deferred income tax liabilities 32 Current liabilities Trade and other payables 30 Current income tax liabilities Contract liabilities 31(b) Lease liabilities 17 Total liabilities Total equity and liabilities	59 59 1,721,397 1,720,690 (10,555) (10,555) 428,835 432,112 (1,917,948) (1,907,659)
	221,788 234,647 (2,566) (439)
	219,222 234,208
	3,552 2,250 2,863 — 70 —
	6,485 2,250
	44,513 41,920 2,598 3,286 37,333 33,864 2,098 —
	86,542 79,070
	93,027 81,320
	312,249 315,528

The consolidated financial statements on pages 107 to 179 were approved by the Board of Directors on March 27, 2026 and are signed on its behalf by:

Wang Feng Director

Wang Jin

Director

The accompanying notes are integral parts of these consolidated financial statements.

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Consolidated Statement of Changes in Equity

For the year ended December 31, 2025

Note	Attributable to owners of the Company Share capital Share premium Shares held for RSU scheme Reserves Accumulated losses Total Non- controlling interests Total equity RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Balance at January 1, 2024 Comprehensive income/(loss) Loss for the year Other comprehensive income — Share of other comprehensive income of investment accounted for using equity method, net of tax 14 — Currency translation differences Total comprehensive income/(loss) for the year Total contributions by and distributions to owners of the Company recognised directly in equity Capital contribution from a shareholder 28 Employee share option and RSU scheme: (as defined in Note 2.19(a)) — Value of employee services 29 Total contributions by and distributions to owners of the Company for the year Balance at December 31, 2024	59 1,720,690 (10,555) 415,664 (1,878,628) 247,230 430 247,660
	— — — — (29,031) (29,031) (869) (29,900) — — — 815 — 815 — 815 — — — 2,125 — 2,125 — 2,125
	— — — 2,940 (29,031) (26,091) (869) (26,960)
	— — — 8,980 — 8,980 — 8,980 — — — 4,528 — 4,528 — 4,528
	— — — 13,508 — 13,508 — 13,508
	59 1,720,690 (10,555) 432,112 (1,907,659) 234,647 (439) 234,208

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Consolidated Statement of Changes in Equity (Continued)

For the year ended December 31, 2025

Note	Attributable to owners of the Company Share capital Share premium Shares held for RSU scheme Reserves Accumulated losses Total Non- controlling interests Total equity RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Balance at January 1, 2025 Comprehensive loss Loss for the year Other comprehensive loss — Share of other comprehensive loss of investment accounted for using equity method, net of tax 14 — Currency translation differences Total comprehensive loss for the year Total contributions by and distributions to owners of the Company recognised directly in equity Exercise of share options 27 Employee share option and RSU scheme: — Value of employee services 29 Total contributions by and distributions to owners of the Company for the year Balance at December 31, 2025	59 1,720,690 (10,555) 432,112 (1,907,659) 234,647 (439) 234,208
	— — — — (10,289) (10,289) (2,127) (12,416) — — — (1,410) — (1,410) — (1,410) — — — (4,419) — (4,419) — (4,419)
	— — — (5,829) (10,289) (16,118) (2,127) (18,245)
	— 707 — (244) — 463 — 463 — — — 2,796 — 2,796 — 2,796
	— 707 — 2,552 — 3,259 — 3,259
	59 1,721,397 (10,555) 428,835 (1,917,948) 221,788 (2,566) 219,222

The accompanying notes are integral parts of these consolidated financial statements.

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Consolidated Statement of Cash Flows

For the year ended December 31, 2025

Note	2025 2024 RMB’000 RMB’000
Cash flows from operating activities Cash (used in)/generated from operations 36(a) Income tax paid, net Net cash (outflow)/inflow from operating activities Cash flows from investing activities Interest received Purchase of property, plant and equipment Purchase of intangible assets Proceeds from disposal of property, plant and equipment Proceeds from disposal of intangible assets Capital reduction from an associate measured at fair value through profit or loss Capital reduction of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Purchase of financial assets at fair value through profit or loss Payments for film rights Decrease in short term bank deposits Loan granted to a third party Loan repayment received from a third party Placement of restricted cash Net cash outflow from investing activities Cash flows from financing activities Interest paid Principal elements of lease payments 36(b) Interest elements of lease payments 36(b) Proceeds from issuance of share upon exercise of share options Net cash outflow from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at end of the year	(16,271) 13,166 — —
	(16,271) 13,166
	466 1,760 (717) (8,330) (92,643) (53,619) 3 36 81,725 34,891 1,346 — 1,308 4,713 21,588 — (17,788) — (3,669) (4,456) — 28,391 — (7,000) 5,000 2,000 (332) —
	(3,713) (1,614)
	— (174) (979) (512) (53) (18) 463 —
	(569) (704)
	(20,553) 10,848 89,883 77,668 (2,088) 1,367
	67,242 89,883

The accompanying notes are integral parts of these consolidated financial statements.

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Notes to the Consolidated Financial Statements

1 General information

Linekong Interactive Group Co., Ltd. (the “ Company ”) was incorporated in the Cayman Islands on May 24, 2007 as an exempted company with limited liability under the Companies Law, Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The address of the Company’s registered office is Floor 4, Willow House, Cricket Square, P.O. Box 2804, Grand Cayman KY1-1112, Cayman Islands. The Company’s shares have been listed on GEM of The Stock Exchange of Hong Kong Limited (the “ Stock Exchange ”) since December 30, 2014 by way of its initial public offering (“ IPO ”).

The Company is an investment holding company. The Company and its subsidiaries (together, the “ Group ”) are principally engaged in developing and publishing online games (the “ Game Business ”) in the People’s Republic of China (the “ PRC ”) and other countries and regions, and film and online drama business (the “ Film Business ”) in the PRC.

The Group’s major subsidiaries are based in the PRC and the majority of their transactions are denominated in Renminbi (“ RMB ”). The conversion of RMB into foreign currencies is subject to the rules and regulations of foreign exchange control promulgated by the PRC government. As of December 31, 2025 and 2024, other than the restrictions from exchange control regulations, there is no significant restriction on the Group’s ability to access or use the assets and settle the liabilities of the Group.

The consolidated financial statements are presented in RMB, unless otherwise stated, and have been approved by the Company’s Board of Directors on March 27, 2026.

All companies comprising the Group have adopted December 31 as their financial year-end date.

2 Material accounting policy information

The principal accounting policies applied in the preparation of the consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation

The consolidated financial statements of the Group have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“ IASB ”) and the disclosure requirements of Hong Kong Companies Ordinance. The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets at fair value through profit or loss and an associate measured at fair value through profit or loss which are carried at fair value.

The preparation of the consolidated financial statements in conformity with IFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4 below.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.1 Basis of preparation (Continued)

2.1.1 Changes in accounting policies and disclosures

(a) Amended standards adopted by the Group

The Group has applied the following amendments to an IFRS Accounting Standard for the first time for its annual reporting period commencing January 1, 2025:

Amendments to IAS 21, Lack of Exchangeability

The application of the amendments to an IFRS Accounting Standard in the current period has had no material impact on the Group’s financial positions and performance for the current and prior periods and/or on the disclosures set out in these consolidated financial statements.

(b) Impact of standards issued but not yet applied by the entity

Certain new accounting standards and amendments to accounting standards have been published that are not mandatory for reporting periods ended December 31, 2025 and have not been early adopted by the Group.

	*Effective for annual*
	*years beginning*
New standards, amendments and improvement	*on or after*
Amendments to IFRS 9 and IFRS 7,Amendments to the Classification and Measurement of	January 1, 2026
Financial Instruments
Amendments to IFRS 9 and IFRS 7,Contracts Referencing Nature-dependent Electricity	January 1, 2026
Amendments to IFRS 10 and IAS 28,Sale or Contribution of Assets between an Investor	To be determined
and its Associate or Joint Venture
Amendments to IFRS Accounting Standards,Annual Improvements to IFRS Accounting	January 1, 2026
Standards — Volume 11
IFRS 18,Presentation and Disclosure in Financial Statements	January 1, 2027
Amendments to IAS 21,Translation to a Hyperinflationary Presentation Currency	January 1, 2027

Except for the new and amendments to IFRS Accounting Standards mentioned below, the management anticipate that the application of all other new and amendments to IFRS Accounting Standards will have no material impact on the consolidated financial statements in the foreseeable future.

IFRS 18 “Presentation and Disclosure in Financial Statements” (“ IFRS 18 ”)

IFRS 18 sets out requirements on presentation and disclosures in financial statements and will replace IAS 1 “Presentation of Financial Statements” (“ IAS 1 ”) and this new IFRS Accounting Standard, while carrying forward many of the requirements in IAS 1, introduces new requirements to present specified categories and defined subtotals in the statement of profit or loss; provide disclosures on management-defined performance measures in the notes to the financial statements and improve aggregation and disaggregation of information to be disclosed in the financial statements. In addition, some IAS 1 paragraphs have been moved to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” and IFRS 7. Minor amendments to IAS 7 “Statement of Cash Flows” and IAS 33 “Earnings per Share” are also made.

IFRS 18, and amendments to other standards, will be effective for annual periods beginning on or after January 1, 2027, with early application permitted. The application of the new standard is expected to affect the presentation of the statement of profit or loss and disclosures in the future financial statements. The Group is in the process of assessing the detailed impact of IFRS 18 on the Group’s consolidated financial statements.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.2 Consolidation

(a) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Inter-company transactions, balances and unrealised gains/losses on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Non-controlling interests in subsidiaries are presented separately from the Group’s equity therein, which represent present ownership interests entitling their holders to a proportionate share of net assets of the relevant subsidiaries upon liquidation.

(i) Subsidiaries arising from Reorganisation

On March 30, 2007, Linekong Online (Beijing) Technology Co., Ltd. (“ Linekong Online ”) was established to carry out the Group’s Game Business in the PRC. Several domestic operating companies have been established by Linekong Online as its subsidiaries since 2007 and these operating companies together with Linekong Online are collectively defined as the “PRC Operational Entities”. The Group’s wholly-owned subsidiary, Linekong Online (Beijing) Internet Technology Co., Ltd. (“ Beijing Linekong Online ”), has entered into a series of contractual agreements (the “ Contractual Agreements ”) with Linekong Online and its equity holders on April 22, 2008, which enable Beijing Linekong Online and the Group to:

exercise effective financial and operational control over Linekong Online;
exercise equity holders’ voting rights of Linekong Online;
receive substantially all of the economic interest returns generated by Linekong Online in consideration for the business support, technical and consulting services provided by Beijing Linekong Online;
obtain an irrevocable and exclusive right to purchase all or part of the equity interests in Linekong Online from the respective equity holders at a minimum purchase price permitted under PRC laws and regulations, and all or part of the assets of Linekong Online at the net book value of such assets or such minimum purchase price permitted under PRC laws and regulations. Beijing Linekong Online may exercise such options at any time until it has acquired all equity interests and/or all assets of Linekong Online;
obtain a pledge over the entire equity interest of Linekong Online from its respective equity holders as collateral security for all of Linekong Online’s payments due to Beijing Linekong Online and to secure performance of Linekong Online’s obligation under the Contractual Arrangements.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.2 Consolidation (Continued)

(a) Subsidiaries (Continued)

(i) Subsidiaries arising from Reorganisation (Continued)

The Group does not have any equity interest in Linekong Online. However, as a result of the Contractual Arrangements, the Group has rights to receive variable returns from its involvement with Linekong Online and has the ability to affect those returns through its power over Linekong Online and is considered to control Linekong Online. Consequently, the Company regards Linekong Online as an indirect subsidiary under IFRS Accounting Standards. The Group has consolidated the financial position and results of operations of Linekong Online in the consolidated financial statements of the Group during the years ended December 31, 2025 and 2024.

Nevertheless, the Contractual Arrangements may not be as effective as direct legal ownership in providing the Group with direct control over Linekong Online and uncertainties presented by the PRC legal system could impede the Group’s beneficiary rights of the results, assets and liabilities of Linekong Online. The directors of the Company, based on the advice of its legal counsel, consider that the Contractual Arrangements among Beijing Linekong Online, Linekong Online and its equity holders are in compliance with the relevant PRC laws and regulations and are legally binding and enforceable.

(ii) Business combinations

The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquired business, and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets.

Acquisition-related costs are expensed as incurred.

The excess of the consideration transferred, the amount of any non-controlling interest in the acquired entity and the acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the identifiable net assets acquired is recorded as goodwill (Note 2.8(c)). If the total of consideration transferred, non-controlling interest recognised and previously held interest measured is less than the fair value of the identifiable net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in profit or loss.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financer under comparable terms and conditions. Contingent consideration is classified either as equity or as a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains or losses arising from such re-measurement are recognised in profit or loss.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.2 Consolidation (Continued)

(b) Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions — that is, as transactions with the owners in their capacity as owners. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received in recognised in a separate reserve within equity attributable to owners of the Company.

2.3 Separate financial statements

Investments in subsidiaries are accounted for at cost less impairment. Cost includes direct attributable costs of investment. The results of subsidiaries are accounted for by the Company on the basis of dividend received and receivable.

Impairment testing of the investments in subsidiaries is required upon receiving a dividend from these investments if the dividend exceeds the total comprehensive income of the subsidiary in the period the dividend is declared or if the carrying amount of the investment in the separate financial statements exceeds the carrying amount in the consolidated financial statements of the investee’s net assets including goodwill.

2.4 Associates

An associate is an entity over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds 20% and 50% of the voting rights.

(a) Equity method of accounting

Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividend received or receivable from associate is recognised as a reduction in carrying amount of the investment.

Where the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.

Unrealised gains on transactions between the Group and its associate are eliminated to the extent of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Account policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group.

The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount adjacent to “share of profit of investment accounted using equity method” in profit or loss.

(b) Fair value through profit or loss

The Group has invested as a limited partner in a private equity fund and exerted significant influence. The Group has applied the measurement exemption within IAS 28 “Investment in Associates and Joint Ventures” for mutual funds, unit trusts and similar entities and such an investment is measured at fair value through profit or loss and presented as “an associate measured at fair value through profit or loss” in the consolidated statement of financial position.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.5 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “ CODM ”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive directors that make strategic decisions.

2.6 Foreign currency translation

(a) Functional and presentation currency

Items included in the consolidated financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “ functional currency ”). The functional currency of the Company is United States dollars (“ USD ”). The Company’s primary subsidiaries were incorporated in the PRC and these subsidiaries consider RMB as their functional currency. The consolidated financial statements are presented in RMB (unless otherwise stated), which is the Group’s presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss.

Foreign exchange gains and losses that relate to cash and cash equivalents are presented in profit or loss within “finance income — net”. All other foreign exchange gains and losses are presented in profit or loss within “other operating income — net”.

Translation differences on non-monetary financial assets and liabilities such as equities held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss.

(c) Group companies

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that consolidated statement of financial position;
income and expenses for each statement of profit or loss and other comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and
all resulting exchange differences are recognised in other comprehensive income as currency translation differences.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.7 Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other costs, such as repairs and maintenance, are charged to profit or loss during the reporting period in which they are incurred.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.10).

Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognised within “Other operating income — net” in the consolidated statement of profit or loss and other comprehensive income.

2.8 Intangible assets

(a) Computer software

Computer software is initially recognised and measured at cost less amortisation. Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software and are amortised over their estimated useful lives of five years.

(b) Trademarks and licences

Separately acquired trademarks and licences are shown at historical cost. Trademarks and licences have a finite useful life and are subsequently carried at cost less accumulated amortisation and impairment losses.

Amortisation is calculated using the straight-line method to allocate the cost of trademarks and licences over their estimated useful lives of 3 to 7 years, respectively.

Licences subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the licenses related to game in operation, the impairment losses are recognised as cost of revenue. For the licenses related to game in development, the impairment losses are recognised as administrative expenses.

(c) Goodwill

Goodwill arises on the acquisition of businesses and represents the excess of the consideration transferred over the Group’s interest in net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree and the non-controlling interest in the acquiree. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisitions of associates is included in investments in associates.

Goodwill is not amortised, but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units (“ CGUs ”) for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.8 Intangible assets (Continued)

(d) Cryptocurrency

Cryptocurrencies, that are purchased and held by the Group through third-party custodian service provider, are accounted for as intangible assets under the cost model. The Group has ownership of and control over the cryptocurrencies held and employs third-party custodian service provider to securely store them. The cryptocurrencies held by the Group are considered to have an indefinite life. Accordingly, they are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired.

2.9 Film rights and films in progress

(a) Film rights

Film rights represent films (including online dramas) produced by the Group. Film rights are stated at cost less any provision for impairment losses. Costs of film rights are expensed in profit or loss over their respective useful economic life, or upon the delivery of related master tapes.

(b) Films in progress

Films in progress developed for self-developed film rights (including online dramas) are stated at cost less any provision for impairment losses. Costs include all direct costs associated with the production of films. Costs of films are transferred to film rights upon completion.

(c) Impairment

At the end of each reporting period, both internal and external market information are considered in order to assess whether there is any indication that film rights and films in progress are impaired. If any such indication exists, the carrying amount of such assets is assessed and, where relevant, an impairment loss is recognised to reduce the asset to its recoverable amount. Such impairment losses are recognised in profit or loss.

2.10 Impairment of non-financial assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (CGUs). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.11 Investment and financial assets

(i) Classification

The Group classifies its financial assets in the following measurement categories:

those to be measured subsequently at fair value (either through other comprehensive income (“ OCI ”), or through profit or loss), and
those to be measured at amortised cost.

The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will be recorded either in profit or loss or in OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to subsequent changes in fair value in OCI.

The Group reclassifies debt instruments when and only when its business model for managing those assets changes.

(ii) Recognition and derecognition

Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

(iii) Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (“ FVPL ”), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss.

(a) Debt instruments

Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. The Group classifies its debt instruments at amortised cost.

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income — net using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other losses — net, together with foreign exchange gains and losses. Impairment losses are presented as a separate line item in the consolidated statement of profit or loss and other comprehensive income.

(b) Equity instruments

The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established.

Changes in the fair value of financial assets at FVPL are recognised in other losses — net in the consolidated statement of profit or loss and other comprehensive income as applicable.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.11 Investment and financial assets (Continued)

(iv) Impairments

The Group assesses on a forward-looking basis the expected credit losses (“ ECL ”) associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivables and contract assets, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

2.12 Trade and other receivables

Trade receivables are amounts due from customers for services performed in the ordinary course of business. If collection of trade and other receivables is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.

Trade and other receivables are recognised initially at the amount of consideration that is unconditional, unless they contain significant financing components, in which case they are recognised at fair value. The Group holds the trade and other receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method. See Notes 2.11(i) and 2.11(iii) for further information about the Group’s accounting for trade and other receivables and Note 2.11 (iv) for a description of the Group’s impairment policies.

2.13 Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Restricted cash is excluded from cash and cash equivalents.

2.14 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Where any group company purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs, is deducted from equity attributable to the owners of the Company until the shares are cancelled or reissued. Where such shares are subsequently reissued, any consideration received (net of any directly attributable incremental transaction costs) is included in equity attributable to the owners of the Company.

2.15 Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities, unless payment is not due within 12 months after the reporting period.

Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.16 Provisions

Provisions for legal claims, service warranties and make good obligations are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle that obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the entity. The increase in the provision due to passage of time is recognised as interest expense.

2.17 Current and deferred income tax

The income tax expense for the period is the changes in deferred tax assets attributable to temporary differences. Income tax expenses are recognised in profit or loss, except to the extent that the expenses relate to items recognised in other comprehensive income or directly in equity, in which case, the income tax is also recognised in other comprehensive income or directly in equity, respectively.

(a) Current income tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the jurisdictions where the Company’s subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation, and it considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balance based on the most likely amount of the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

(b) Deferred income tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled.

Deferred income tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred income tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

(c) Offsetting

Deferred income tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred income tax balances relate to the same taxation authority. Current tax assets and liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to relies the asset and settle the liability simultaneously.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.18 Employee benefits

The Group contributes based on certain percentage of the salaries of the employees to a defined contribution retirement benefit plan organised by relevant government authorities. The government authorities undertake to assume the retirement benefit obligations payable to all existing and future retired employees under such plan and the Group has no further obligation for post-retirement benefits beyond the contributions made. Contributions to the plans are expensed as incurred and not reduced by contributions forfeited by those employees who leave the plans prior to vesting fully in the contributions. Assets of the plans are held and managed by government authorities and are separate from those of the Group.

2.19 Share-based payments

(a) Equity-settled share-based payment transactions

The Group receives services from employees as consideration for equity instruments of the Company or the Company’s subsidiaries. The fair value of the services received in exchange for the grant of the shares, restricted share units (“ RSUs ”) and options is recognised as expenses.

In respect of shares, RSUs and options awarded to employees, the total amount to be expensed is determined by reference to the fair value of the shares, RSUs and options granted:

including the impact of any market performance vesting conditions;
excluding the impact of any service and non-market performance vesting conditions; and
including the impact of any non-vesting conditions.

Non-market performance and service vesting conditions are included in assumptions about the number of shares, RSUs and options that are expected to vest. The total expenses are recognised over the vesting period over which all of the specified vesting conditions are to be satisfied.

At the end of each reporting period, the Group revises its estimates of the number of shares, RSUs and options that are expected to vest based on the non-marketing performance and service conditions. The Group recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

In addition, in some circumstances employees may provide services in advance of the grant date and therefore the grant date fair value is estimated for the purposes of recognising the expenses during the period between service commencement period and grant date.

When the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (and share premium).

(b) Share-based payment transactions among group entities

The grant by the Company of its equity instruments to the employees of subsidiaries in the Group is treated as a capital contribution. The fair value of employee services received, measured by reference to the grant date fair value, is recognised over the vesting period as an increase to investments in subsidiaries, with a corresponding credit to equity in the separate financial statements of the Company.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.20 Revenue recognition

Revenue is measured at the transaction price which is the amount of consideration to which the Group is entitled in exchange for transferring promised services or goods to the customer. The Group allocates the transaction price to each performance obligation based on the relative stand-alone selling prices. Revenue for each performance obligation is then recognised when the Group satisfies the performance obligation by transferring the promised goods or services to the customer.

(i) Revenue generated from sales of in-game virtual items

The Group engages in the development and operation of online games and receives proceeds from sales of in-game virtual credits (“ Game Credits ”) to the game players. The Group publishes its self-developed games as well as games licensed from third-party developers through game distribution channels.

The Group’s games are free to play. Players can purchase Game Credits and then convert such Game Credits into various in-game virtual items for a better in-game experience. The Group’s paying players (“ Paying Players ”) purchase the Game Credits either directly through the game distribution channels’ own charging systems or third-party payment collection channels, or through purchasing prepaid game cards from third-party pre-paid game card distributors. Pursuant to agreements with the Group, game distribution channels, third party payment collection channels and third-party pre-paid game card distributors collect the payments from the Paying Players and remit the cash to the Group, net of channel service charges or distribution discounts.

Principal agent consideration

The Group operates both its self-developed games and licensed games and takes primary responsibility for the delivery of game experiences to the Paying Players, including marketing and promotion, determining distribution and payment channels, hosting game servers and providing customer services. In addition, the Group also controls game and service specifications and pricing of the in-game virtual items. Therefore, the Group considers itself the principal in the delivery of the game experience to the Paying Players as the Group has the primary responsibility in the arrangement and latitude in establishing the selling prices and thus records revenue on a gross basis. Payments to third-party game developers and channel service charges by game distribution channels and third-party payment collection channels are recorded as cost of revenue. The discounts given to the Paying Players by the third-party game distribution channels and third-party prepaid game card distributors are estimated by the Group based on available information and recorded as a deduction of revenue.

Recognition of revenue generated from sales of in game virtual items

Upon the sales of Game Credits, the Group typically has an implied performance obligation to provide services which enable the in-game virtual items exchanged from the Game Credits to be displayed or used in the games. Game Credits are consumed by Paying Players to exchange for in-game virtual items, i.e. consumable items or permanent ownership items. Revenue is immediately recognised when the consumable items are consumed or expired, or ratably recognised during their life periods for the permanent ownership items. The Group considers player behaviour patterns in estimating the lives of permanent ownership items (“ Player Relationship Period ”), which is the average period between the first date the Paying Players charge their accounts and the last date these Paying Payers would play the game, and it represents the Group’s best estimate for the lives of the in-game permanent ownership items purchased by the Paying Players.

The Group estimates the Player Relationship Period on a game-by-game basis and re-assesses such periods quarterly or semi-annually. If there is insufficient data to determine the Player Relationship Period, such as in the case of a newly launched game, it estimates the Player Relationship Period based on other games with similar characteristics developed by the Group or by third-party developers until the new game establishes its own patterns and history. The Group considers the games profile and target audience when estimating the Player Relationship Period.

If the Group does not have the ability to differentiate between revenue attributable to permanent ownership virtual items and consumable virtual items for a specific game, the Group recognises revenue from both permanent ownership and consumable virtual items for that game ratably over the game’s Player Relationship Period.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.20 Revenue recognition (Continued)

(ii) Revenue generated from licensing and technical support fees

The Group derives revenue from licensing of games to third-party publishers. Depending on the nature of the license, the revenue is recognised over the licensing period or at a point of time. The Group also provides continuing technical support to the third-party publishers for the games licensed. Revenue is recognised when service is transferred to customers and such performance obligation is satisfied.

(iii) Revenue generated from the licensing of film rights

The Group licenses self-developed film rights (including online dramas) to third-party publishers. Since the licensee can direct the use of and get substantially all of the remaining benefits from the licence granted, revenue from the licensing of film rights is recognised upon the delivery of the master tapes to the licensee.

(iv) Revenue generated from the production of films

The Group is also engaged to produce film rights (including online dramas) for specific customers and retains no right to the film rights during the production process and after completion. The Group concludes that it does not create an asset with an alternative use to the Group and it has a right to payment for performance completed to date that includes compensation for a reasonable profit margin. Therefore, revenue is recognised over time by measuring the progress towards complete satisfaction of the performance obligation.

(v) Revenue generated from provision of promotion services

The Group provides digital content promotion services to online drama platform. The revenue is recognised over time in which the services are rendered to or consumed by the customer simultaneously.

Contract assets and contract liabilities

If the Group performs by transferring goods or services to customer before being unconditionally entitled to the consideration under the contract terms, a contract asset is recognised for the earned consideration that is conditional. On the contrary, the excess of any cumulative consideration received from the contracted customer over the cumulative revenue recognised is recognised as a contract liability recorded in deferred revenue. The contract asset and the contract liability are classified as current and non-current portions based on their respective recovery or settlement periods.

2.21 Interest income

Interest income mainly represents interest income from bank deposits and loans and is recognised using the effective interest method.

2.22 Government grants

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received, and the Group will comply with all attached conditions.

2.23 Leases

Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.23 Leases (Continued)

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

fixed payments (including in-substance fixed payments), less any lease incentives receivable,
variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date,
amounts expected to be payable by the Group under residual value guarantees,
the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and
payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

The Group applies the short-term lease recognition exemption to leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. Lease payments on short-term leases are recognised as expense on a straight-line basis or another systematic basis over the lease term.

Right-of-use assets are measured at cost comprising the following:

the amount of the initial measurement of lease liability;
any lease payments made at or before the commencement date less any lease incentives received;
any initial direct costs; and
restoration costs.

The right-of-use assets are depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.

2.24 Related parties

(a) A person, or a close member of that person’s family, is related to the Group if that person:
(i) has control or joint control over the Group;
(ii) has significant influence over the Group; or
(iii) is a member of the key management personnel of the Group or the Group’s parent.
(b) An entity is related to the Group if any of the following conditions applies:
(i) The entity and the Group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).
(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).
(iii) Both entities are joint ventures of the same third party.

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Notes to the Consolidated Financial Statements

2 Material accounting policy information (Continued)

2.24 Related parties (Continued)

(b) An entity is related to the Group if any of the following conditions applies: (Continued)
(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
(v) The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group.
(vi) The entity is controlled or jointly controlled by a person identified in (a).
(vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).
(viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the Group or to the Group's parent.

Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.

3 Financial risk management

3.1 Financial risk factors

The Group is subject to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk, concentration risk and liquidity risk. The Group’s overall risk management strategy seeks to minimise the potential adverse effects on the financial performance of the Group. Risk management is carried out by the senior management of the Group and approved by the Board of Directors.

(a) Market risk

(i) Foreign exchange risk

The Group mainly operates in the PRC and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to USD. Therefore, foreign exchange risk primarily arose from recognised assets in the Group’s PRC subsidiaries when receiving or to receive foreign currencies from overseas cooperated counterparties. For the Group’s PRC subsidiaries whose functional currency is RMB, if USD had strengthened/weakened by 5% against RMB with all other variables held constant, the post-tax loss would have been approximately RMB137,000 lower/higher for the year ended December 31, 2025 (2024: RMB53,000), as a result of net foreign exchange gains/ losses on translation of net monetary assets denominated in USD. The Group does not hedge against any fluctuation in foreign currency.

Most of the transactions of the Company are denominated and settled in its functional currency, USD. The Company’s foreign exchange risk primarily arose from the cash and cash equivalents and other receivables denominated in RMB. If RMB had strengthened/weakened by 5% against USD with all other variables held constant, the post-tax loss would have been approximately RMB783,000 lower/higher for the year ended December 31, 2025 (2024: RMB879,000), as a result of net foreign exchange gains/losses on translation of cash and cash equivalents denominated in RMB.

(ii) Interest rate risk

Other than interest-bearing cash and cash equivalents and lease liabilities, the Group has no other significant interest-bearing assets or liabilities. The directors of the Company do not anticipate there is any significant impact to interest-bearing assets and liabilities resulted from the changes in interest rates, because the interest rates of balances is not expected to change significantly.

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Notes to the Consolidated Financial Statements

3 Financial risk management (Continued)

3.1 Financial risk factors (Continued)

(a) Market risk (Continued)

(iii) Price risk

The Group is exposed to price risk arising from investments held by the Group that are classified on the consolidated statement of financial position as at fair value through profit or loss. The Group is not exposed to commodity price risk.

To manage its price risk arising from the investments, the Group diversifies its portfolio. Each investment is managed by senior management on a case-by-case basis.

The Group’s financial assets at fair value through profit or loss and an associate measured at fair value through profit or loss are not held for trading and had not been elected to present fair value gains and losses in OCI. The sensitivity analysis is determined based on the exposure to price risk of financial assets at fair value through profit or loss and an associate measured at fair value through profit or loss at the end of the reporting period. If the fair values of the respective instruments held by the Group had been 5% higher/lower, the post-tax loss for the year ended December 31, 2025 would have been approximately RMB1,963,000 (2024: RMB2,822,000) lower/higher.

(b) Credit risk

The carrying amounts of cash and cash equivalents and restricted cash placed with banks and financial institutions, trade receivables, contract assets and other receivables (including loans) included in the consolidated financial statements represent the Group’s maximum exposure to credit risk in relation to its financial assets. The objective of the Group’s measures to manage credit risk is to control potential exposure to recoverability problem.

(i) Risk management

To manage risk of cash and cash equivalents and restricted cash, these assets are mainly placed with reputable financial institutions. There has been no recent history of default in relation to these financial institutions.

For trade receivables, a significant portion of trade receivables at the end of each reporting period was due from those game distribution channels and film publishers in cooperation with the Group. If the strategic relationship with game distribution channels and film publishers is terminated or scaled-back; or if the co-operative arrangements with the game distribution channels and film publishers are altered; or if they experience financial difficulties in paying the Group, the Group’s trade receivables might be adversely affected in terms of recoverability. To manage this risk, the Group maintains frequent communications with the game distribution channels and film publishers to ensure the effective credit control.

For other receivables, the Group makes periodic collective assessments as well as individual assessment on the recoverability of other receivables based on historical settlement records, past experience and forward-looking information.

During the years ended December 31, 2025 and 2024, the Group purchased and held cryptocurrencies through a licensed custodian agent (the “ Custodian Agent ”). Any regularly way purchase or sale of cryptocurrencies would be done through the Custodian Agent and the Group would be exposed to credit risk for deposits made for purchase or receivables from sale of cryptocurrencies. The Group has regularly reviewed and monitored the credit risk of the Custodian Agent. In this regard, the management considered that the Group’s credit risk on the Custodian Agent is significantly reduced.

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Notes to the Consolidated Financial Statements

3 Financial risk management (Continued)

3.1 Financial risk factors (Continued)

(b) Credit risk (Continued)

(ii) Impairment of financial assets

The Group has following major types of financial assets, which are subject to IFRS 9’s expected credit loss model:

trade receivables;
contract assets; and
other receivables.

While cash and cash equivalents and restricted cash are also subject to the impairment requirements of IFRS9, the identified impairment loss was immaterial.

Trade receivables and contract assets

The Group applies the IFRS 9 simplified approach to measuring ECL which uses a lifetime expected loss allowance for all trade receivables and contract assets.

To measure the ECL, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The Group has therefore concluded that the expected loss rate for trade receivables are a reasonable approximation of the loss rate for the contract assets.

The expected loss rates are based on the payment profiles of sales over a period of 36 months before the reporting date and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group has identified the GDP of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors.

On that basis, the loss allowance for trade receivables and contract assets as of December 31, 2025 and 2024 was determined as follows:

	Current 0–30 days past due 30–120 days past due More than 120 days past due Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
As of December 31, 2025 Expected loss rate Trade receivables Less: loss allowance	2.14% 10.00% 11.72% 97.81% 2,378 150 128 3,009 5,665 51 15 15 2,943 3,024
	2,327 135 113 66 2,641

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Notes to the Consolidated Financial Statements

3 Financial risk management (Continued)

3.1 Financial risk factors (Continued)

(b) Credit risk (Continued)

(ii) Impairment of financial assets (Continued)

Trade receivables and contract assets (Continued)

	Current 0–30 days past due 30–120 days past due More than 120 days past due Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
As of December 31, 2024 Expected loss rate Trade receivables Contract assets Less: loss allowance	0.50% 4.00% 38.81% 95.98% 3,459 125 201 2,188 5,973 5,069 — — — 5,069 43 5 78 2,100 2,226
	8,485 120 123 88 8,816

The loss allowances for trade receivables and contract assets as of December 31 reconcile to the opening loss allowances as follows:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Trade receivables and contract assets: At beginning of the year Loss allowance recognised, net Receivables written off during the year as uncollectible At end of the year	2,226 2,311 798 172 — (257)
	3,024 2,226

Other receivables

Impairment on other receivables is measured as either 12-month ECL or lifetime ECL, depending on whether there has been a significant increase in credit risk since initial recognition. To assess whether there is a significant increase in credit risk, the Group compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition by considering available, reasonable and supportive forwarding-looking information.

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Notes to the Consolidated Financial Statements

3 Financial risk management (Continued)

3.1 Financial risk factors (Continued)

(b) Credit risk (Continued)

(ii) Impairment of financial assets (Continued)

Other receivables (Continued)

The Group uses three categories for other receivables which reflect their credit risk and how the loss allowance is determined for each of those categories. A summary of the assumptions underpinning the Group’s ECL model is as follows:

		Basis for recognition of
Category	Group definition of category	ECL allowance
Stage 1	Credit risk is in line with original expectations.	12 month expected losses
Stage 2	A significant increase in credit risk has occurred	Lifetime expected losses
	compared to original expectations. A
	significant increase in credit risk is presumed if
	contractual repayments are 30 days past due.
Stage 3 (Credit-impaired)	Contractual repayments are 60 days past due or	Lifetime expected losses
	it is becoming probable that a borrower will
	enter bankruptcy.

The gross amount of other receivables as of December 31 reconciles to the opening balance as follows:

	Stage 1 Stage 2 Stage 3 Total RMB’000 RMB’000 RMB’000 RMB’000
Opening balance as of January 1, 2024 Repayments Additions Closing balance as of December 31, 2024 Opening balance as of January 1, 2025 Repayments Additions Written off during the year as uncollectible Closing balance as of December 31, 2025	14,655 — 20,963 35,618 (5,444) — — (5,444) 8,636 — — 8,636
	17,847 — 20,963 38,810
	17,847 — 20,963 38,810 (5,619) — — (5,619) 7,081 — — 7,081 (10) (10)
	19,299 — 20,963 40,262

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Notes to the Consolidated Financial Statements

3 Financial risk management (Continued)

3.1 Financial risk factors (Continued)

(b) Credit risk (Continued)

(ii) Impairment of financial assets (Continued)

Other receivables (Continued)

The loss allowance for other receivables as of December 31, 2025 and 2024 reconciles to the opening loss allowance as follows:

	Stage 1 Stage 2 Stage 3 Total RMB’000 RMB’000 RMB’000 RMB’000
Opening balance as of January 1, 2024 Loss allowance recognised Closing balance as of December 31, 2024 Opening balance as of January 1, 2025 Loss allowance recognised Written off during the year as uncollectible Closing balance as of December 31, 2025	1,176 — 20,963 22,139 10 — — 10
	1,186 — 20,963 22,149
	1,186 — 20,963 22,149 578 — — 578 (10) — — (10)
	1,754 — 20,963 22,717

Trade receivables, contract assets and other receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group.

Increase in loss allowance of receivables is presented as “net impairment losses on trade and other receivables and contract assets”. Subsequent recoveries of amounts previously written off are credited against the same line item.

(c) Concentration risk

For the Group’s Game Business, there was no customer contributing over 10% of the total revenues of the Group from license fee and technical support fee for the year ended December 31, 2025 and 2024. The Group has a large number of game players, no revenue from any individual game player exceeded 10% or more of the Group’s revenue for the years ended December 31, 2025 and 2024. For the Group’s Film Business, there was a customer whose revenues individually represent greater than 10% of the total revenues of the Group for the years ended December 31, 2025 and 2024.

Information about major customers

Revenue derived from customers that accounted for 10% or more of the Group’s total revenue during the year are disclosed below:

	Year ended December	31,
	2025	2024
Film publisher A	23.7%	64.6%

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Notes to the Consolidated Financial Statements

3 Financial risk management (Continued)

3.1 Financial risk factors (Continued)

(c) Concentration risk (Continued)

Information about major customers (Continued)

Details of trade receivable balances that represented over 10% of the respective total balances of the Group as of December 31, 2025 and 2024 are as follows:

	As of December 31, 2025 2024
Game Distribution Channel A Game Distribution Channel B Game Distribution Channel C Game Distribution Channel D	53.2% 42.5% 11.1% 11.5% N/A# 10.7% N/A# 10.5%
	64.3% 75.2%

The corresponding trade receivables did not contribute over 10% of the total trade receivables of the Group.

(d) Liquidity risk

The Group aims to maintain sufficient cash and cash equivalents. Due to the dynamic nature of the Group’s businesses, the Group’s finance department maintains flexibility in funding by maintaining adequate cash and cash equivalents.

The table below analyses the Group’s non-derivative financial liabilities that will be settled into relevant maturity grouping based on the remaining period at the end of each reporting period to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Weighted average interest rate	Less than 1 year Between 1 and 2 years Between 2 and 5 years Total RMB’000 RMB’000 RMB’000 RMB’000
As of December 31, 2025 Lease liabilities 3.25% Trade and other payables (excluding salary and staff welfare payables, provision for compensation and other taxes payables) — Weighted average interest rate	2,230 1,946 998 5,174 26,104 — — 26,104
	28,334 1,946 998 31,278
	Less than 1 year Between 1 and 2 years Between 2 and 5 years Total RMB’000 RMB’000 RMB’000 RMB’000
As of December 31, 2024 Trade and other payables (excluding salary and staff welfare payables and other taxes payables) —	25,708 — — 25,708

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Notes to the Consolidated Financial Statements

3 Financial risk management (Continued)

3.2 Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain optimal capital structure to enhance shareholders’ value in the long term.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or repurchase the Company’s shares.

The Group monitors capital on the basis of the net cash/debt to equity ratio. This ratio is calculated as cash and liquid investments less gross debt, divided by total equity. The Group aims to maintain its net debt to equity ratio. The net cash/debt to equity ratios for the years ended December 31, 2025 and 2024 were as follows:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Cash and liquid investments Gross debt Net cash Total equity Net cash to equity ratio	67,242 89,883 (4,961) —
	62,281 89,883 219,222 234,208 28.41% 38.38%

Note 36(b) provides details about the calculation of net cash.

3.3 Fair value estimation

(i) Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The Group did not have any financial liabilities that were measured at fair value as of December 31, 2025 and 2024.

Recurring fair value measurements	Level 1 Level 2 Level 3 Total RMB’000 RMB’000 RMB’000 RMB’000
As of December 31, 2025 Assets An associate measured at fair value through profit or loss Financial assets at fair value through profit or loss — Unlisted securities — Listed securities	— — 20,332 20,332 — — 20,706 20,706 2,471 — — 2,471
	2,471 — 41,038 43,509

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Notes to the Consolidated Financial Statements

3 Financial risk management (Continued)

3.3 Fair value estimation (Continued)

(i) Fair value hierarchy (Continued)

Recurring fair value measurements	Level 1 Level 2 Level 3 Total RMB’000 RMB’000 RMB’000 RMB’000
As of December 31, 2024 Assets An associate measured at fair value through profit or loss Financial assets at fair value through profit or loss — Unlisted securities	— — 21,643 21,643 — — 40,294 40,294
	— — 61,937 61,937

There were no transfers between levels 1, 2 and 3 during the years ended December 31, 2025 and 2024.

(ii) Valuation techniques used to determine fair values

The fair value of financial instruments traded in active markets is determined based on quoted market prices at the end of the reporting period. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required for evaluating the fair value of a financial instrument are observable, the instrument is included in level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The Group has a team that manages the valuation of level 3 instruments for financial reporting purposes. The team manages the valuation of the investments on a case by case basis. At least once a year, the team would use valuation techniques to determine the fair value of the Group’s level 3 instruments. External valuation experts will be involved when necessary.

Specific valuation techniques used to value financial instruments include:

quoted market prices or dealer quotes for similar instruments;
discounted cash flow model and unobservable inputs mainly including assumptions of expected future cash flows and discount rate; and
a combination of observable inputs and unobservable inputs, including discount rate, risk-free interest rate and expected volatility.

The fair value of the investment in associate is primarily based on the Group’s attributable portion of the reported net asset value (“ NAV ”) of the associate. The NAV was derived from the fair value of the underlying investments (most of total assets of the associate represented financial assets measured at fair value) at the same measurement date as that used by the Group. The Group understands and assesses the valuations provided by the general partner of the associate and made necessary adjustments as a result of the assessment. The associate measured at FVPL is included in level 3.

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Notes to the Consolidated Financial Statements

3 Financial risk management (Continued)

3.3 Fair value estimation (Continued)

(iii) Fair value measurements using significant unobservable inputs

The following table presents the changes in level 3 financial assets for the years ended December 31, 2025 and 2024, respectively.

	An associate at fair value through profit or loss Financial assets at fair value through profit or loss — unlisted securities Total RMB’000 RMB’000 RMB’000
Opening balance as of January 1, 2024 Additions Capital reduction Gains/(losses) recognised in other losses — net Closing balance as of December 31, 2024 Opening balance as of January 1, 2025 Disposal Capital reduction Gains/(losses) recognised in other losses — net Foreign exchange adjustments Closing balance as of December 31, 2025	20,486 31,473 51,959 — 17,960 17,960 — (4,713) (4,713) 1,157 (4,426) (3,269)
	21,643 40,294 61,937
	21,643 40,294 61,937 — (10,544) (10,544) (1,346) (1,308) (2,654) 35 (7,356) (7,321) — (380) (380)
	20,332 20,706 41,038

Fair value losses of RMB55,000 (2024: Nil) related to financial assets held for trading investments which listed outside Hong Kong are included in “other losses – net”.

(iv) Valuation inputs and relationships to fair value

The components of the level 3 instruments include investments in unlisted securities and an associate measured at fair value through profit or loss. As these instruments are not traded in an active market, their fair values have been determined using various applicable methodologies.

As of December 31, 2025

	As of				Sensitivity of
	December 31,	Valuation	Significant	Percentage or	fair value to
	2025	technique	unobservable inputs	ratio range	the input
Unlisted securities	20,706	Discounted cash	Discount rate	20%-24%	Note (a)
		flow model
			Compound annual	8%-76%
			growth rate of revenue
			Discount for lack of	15%-30%
			marketability
			Volatility	37%-107%
An associate measured	20,332	Note 3.3 (ii)	Note (b)	N/A	Note (b)
at fair value through
profit or loss

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Notes to the Consolidated Financial Statements

3 Financial risk management (Continued)

3.3 Fair value estimation (Continued)

(iv) Valuation inputs and relationships to fair value (Continued)

As of December 31, 2024

	As of		Significant		Sensitivity of fair
	December 31,	Valuation	unobservable	Percentage or	value to
	2024	technique	inputs	ratio range	the input
Unlisted securities	30,794	Discounted cash flow	Discount rate	20%–24%	Note (a)
		model
			Compound annual growth	5%–24%
			rate of revenue
			Discount for lack of	20%–30%
			marketability
			Volatility	44%–112%
	9,500	Market approach	Recent transaction price	N/A	N/A
An associate measured	21,643	Note 3.3 (ii)	Note (b)	N/A	Note (b)
at fair value through
profit or loss

Notes:

(a) The following table summarises the quantitative information about the significant unobservable inputs used level 3 fair value measurements.

As of December 31, 2025

			Fair value increase/
			(decrease) for
			the year ended
Key unobservable inputs	Range of inputs	Change	December 31, 2025
			RMB’000
Discount rate	20%–24%	-1%	1,160
		+1%	(942)
Compound annual growth rate of revenue	8%–76%	-5%	(2,328)
		+5%	2,538
Discount for lack of marketability	15%–30%	-5%	1,426
		+5%	(1,213)
Volatility	37%–107%	-5%	82
		+5%	(1)

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Notes to the Consolidated Financial Statements

3 Financial risk management (Continued)

3.3 Fair value estimation (Continued)

(iv) Valuation inputs and relationships to fair value (Continued)

As of December 31, 2024 (Continued)

Notes: (continued)

(a) The following table summarises the quantitative information about the significant unobservable inputs used level 3 fair value measurements. (continued)

As of December 31, 2024

			Fair value increase/
			(decrease) for
			the year ended
Key unobservable inputs	Range of inputs	Change	December 31, 2024
			RMB’000
Discount rate	20%–24%	–1%	1,753
		+1%	(973)
Compound annual growth rate of revenue	5%–24%	–5%	(2,886)
		+5%	3,441
Discount for lack of marketability	20%–30%	–5%	1,762
		+5%	(1,292)
Volatility	44%–112%	–5%	1
		+5%	(1)

(b) The unobservable inputs which significantly impacted the fair value are the NAV of the associate reported by its general partner and the adjustment made by the Group (together, the “ adjusted NAV ”). If the adjusted NAV increased/decreased by 5% as of December 31, 2025, the fair value as of December 31, 2025 would increase/decrease by RMB1,017,000 (2024: RMB1,082,000).

4 Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that might have a financial impact on the entity and that are believed to be reasonable under the circumstances.

The Group makes judgements, estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year are discussed below.

4.1 Critical accounting estimates and assumptions

(a) Estimates of the Player Relationship Period

As described in Note 2.20(i), the Group recognises revenue from permanent ownership virtual items ratably over the Player Relationship Period. The determination of the Player Relationship Period in each game is based on the Group’s best estimate that takes into account all known and relevant information at the time of assessment. Such estimates are subject to re-evaluation on a semi-annual or quarterly basis. Any adjustments arising from changes in the Player Relationship Period as a result of updated information will be accounted for prospectively as a change in accounting estimate.

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Notes to the Consolidated Financial Statements

4 Critical accounting estimates and judgements (Continued)

4.1 Critical accounting estimates and assumptions (Continued)

(b) Fair value of Level 3 financial assets

As mentioned in Note 3.3, the fair value of Level 3 financial assets that are not traded in an active market is determined by using valuation techniques. The Group uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. The Group has used discounted cash flow and NAV approach for various financial assets measured at FVPL that are not traded in active markets.

(c) Recoverable amount of film rights and films in progress

The Group assesses whether there are any indicators of impairment for all non-financial assets at the end of each reporting period in accordance with the accounting policies stated in Note 2.9. In determining whether impairment indicator exists and the recoverable amount of film rights and films in progress, the Group makes assessment on a film-by-film basis and takes into consideration both internal and external market information, for example, the production schedule of the online drama, the sales forecasts, the production budget and the general economic condition of the relevant markets.

Based on management’s assessments on the recoverability of film rights and films in progress (Note 19), no impairment (2024: impairment of RMB1,810,000) on film rights and films in progress was recognised for the year ended December 31, 2025.

4.2 Critical judgements in applying the Group’s accounting policies

(a) Revenue recognition of certain games

As mentioned in Note 2.20(i), revenue is immediately recognised when the consumable items are consumed or expired, or ratably recognised during their life periods for the permanent ownership items. In the case that the Group does not possess relevant data and information to differentiate between revenues attributable to permanent ownership and consumable virtual items of a specific game, revenues from both the permanent ownership and consumable virtual items are deferred and recognised ratably over the expected Player Relationship Period of the specific game.

(b) Accounting for cryptocurrencies

IFRS Accounting Standards do not specifically address accounting for cryptocurrencies. Accordingly, for the financial reporting purposes, management needs to apply judgement in determining appropriate accounting policies based on the facts and circumstances of the Group’s acquisition and holding of cryptocurrencies.

Given the Group’s purpose for holding cryptocurrencies, management considered that cryptocurrencies purchased and held by the Group should be accounted for as indefinite-lived intangible assets under the cost model.

As disclosed in Note 18, in determining fair values used for impairment tests, management needs to apply judgement to identify the relevant available markets for trading of cryptocurrencies, and to consider accessibility to and activity within those markets in order to identify the principal cryptocurrency markets to ascertain the respective fair market values.

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Notes to the Consolidated Financial Statements

5 Revenue and segment information

The CODM of the Group, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive directors that make strategic decisions.

The Group separately manages the production and operation of each segment and evaluates their operating results respectively, in order to make decisions about resources to be allocated to these segments and to assess their performance.

The Group identifies two operations segments as follows:

Game Business, which is primarily engaged in developing and publishing online games in the PRC and other countries and regions;
Film Business, which is primarily engaged in licensing self-developed online dramas rights to third-party publishers and producing online drama rights for specific customers in the PRC.

The accounting policies of the operating segments are the same as the Group’s accounting policies described in Note 2. Segment loss represents the loss from each segment without allocation of unallocated corporate expenses, gains on disposal of intangible assets, other losses-net, finance income-net and share of profit of investment accounted for using equity method. The CODM assesses the performance of the operating segments based on the operating loss of each reporting segments.

Segment revenue and results

Segment revenue and results
	Year ended December 31, 2025 2024 RMB’000 RMB’000
Segment revenue: Game Business — Sales of in-game virtual items — License fee and technical support fee Film Business — Licensing and production of online dramas and others Total	30,873 38,506 529 1,285
	31,402 39,791
	9,956 106,258
	41,358 146,049

The following is an analysis of the Group’s revenue and results by reportable segment:

	Game Business Film Business 2025 2024 2025 2024 RMB’000 RMB’000 RMB’000 RMB’000	Total 2025 2024 RMB’000 RMB’000
Segment revenue 31,402 39,791 9,956 106,258 Segment loss (17,961) (38,936) (8,478) (3,522) Gains on disposal of intangible assets Unallocated corporate expenses Other losses — net Finance income — net Share of profit of investment accounted for using equity method Loss before income tax	31,402 39,791 9,956 106,258	41,358 146,049
	(17,961) (38,936) (8,478) (3,522)	(26,439) (42,458)
		26,468 15,485 (8,597) (4,163) (7,376) (3,269) 1,154 965 2,534 3,550
		(12,256) (29,890)

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Notes to the Consolidated Financial Statements

5 Revenue and segment information (Continued)

Segment assets and liabilities

The CODM does not review the segment assets and liabilities for the purposes of allocating resources to segments and assessing their performance. Therefore, no segment assets and liabilities are presented.

Other segment information

Amounts included in the measure of segment loss:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Depreciation of property, plant and equipment — Game Business — Film Business — Unallocated Depreciation of right-of-use assets — Game Business — Film Business — Unallocated Amortisation of intangible assets — Game Business Impairment of intangible assets — Unallocated Impairment of film rights and films in progress — Film Business Gains on disposal of intangible assets — Unallocated	192 240 73 37 2,653 1,965
	2,918 2,242
	79 325 — 180 524 —
	603 505
	253 93
	1,685 1,167
	— 1,810
	26,468 15,485

Geographical information

A breakdown of revenue derived from the PRC, South Korea and other overseas countries and regions for the years ended December 31, 2025 and 2024 is as follows:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Revenue from external customers: — PRC — South Korea — Other overseas countries and regions	30,189 133,696 11,169 11,577 — 776
	41,358 146,049

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Notes to the Consolidated Financial Statements

5 Revenue and segment information (Continued)

Geographical information (Continued)

The Group’s non-current assets, other than financial instruments and investment accounted for using equity method, were located as follows:

	As of December 31, 2025 2024 RMB’000 RMB’000
— PRC — South Korea — Hong Kong and other overseas countries	24,699 14,978 35 106 90,873 59,696
	115,607 74,780

A breakdown of revenue derived from the transfer of goods and services over time and at a point in time for the years ended December 31, 2025 and 2024 is as follows:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Revenue from contracts with customers: — Recognised over time — Recognised at a point in time	40,695 134,323 663 11,726
	41,358 146,049

6 Other operating income — net

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Foreign exchange gains/(losses), net (Losses)/gains on disposal of property, plant and equipment Gains on disposal of intangible assets Impairment of intangible assets Gains on lease termination Penalty Government subsidies (Note) Write-off of property, plant and equipment Sundry income Provision for compensation (Note 33)	296 (447) (5) 6 26,468 15,485 (1,685) (1,167) — 25 (1) (339) 100 250 — (72) 212 122 (1,200) —
	24,185 13,863

Note:

Government grants represented immediate financial support granted by the local governments. There were no specific conditions attached to the grants and the amounts were recognised in profit or loss upon the receipt of relevant grants.

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Notes to the Consolidated Financial Statements

7 Other losses — net

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Fair value losses from financial assets at fair value through profit or loss Fair value gain from an associate measured at fair value through profit or loss	(7,411) (4,426) 35 1,157
	(7,376) (3,269)

8 Expenses by nature

Expenses included in cost of revenue, selling and marketing expenses, administrative expenses, research and development expenses and net impairment losses on trade and other receivables and contract assets are analysed as follows:

Year ended December 31,
2025
2024
RMB’000
RMB’000

Service charges by game distribution channels
Content fees to game developers
Bandwidth and server custody fees
Cost of inventories recognised as an expense (Note 22)
Film production costs and other film business costs
Employee benefit expenses (excluding share-based compensation expenses) (Note 9(a))
Share-based compensation expenses (Note 9(a))
Depreciation of property, plant and equipment (Note 16)
Depreciation of right-of-use assets (Note 17)
Amortisation of intangible assets (Note 18)
Net impairment losses on trade and other receivables and contract assets
(Note 23, 24 and 31(a))
Impairment of film rights and films in progress (Note 19)
Promotion and advertising expenses
Travelling and entertainment expenses
Office rental expenses
Other professional service fees
Game development outsourcing costs
Utilities and office expenses
Auditor’s remuneration
— Audit related services
— Non-audit related services
Others
Total

7,216
9,967
4,463
4,840
3,715
4,659
44
—
8,402
92,678
24,343
48,137
2,796
4,528
2,918
2,242
603
505
253
93
1,376
182
—
1,810
6,357
8,157
1,027
986
1,546
2,214
4,216
5,962
207
128
610
570
1,680
1,600
294
442
2,045
1,348

74,111
191,048

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145

Notes to the Consolidated Financial Statements

9 Employee benefit expenses

(a) Employee benefit expenses

Employee benefit expenses
	Year ended December 31, 2025 2024 RMB’000 RMB’000
Wages, salaries and bonuses Pension costs — defined contribution plans Other social security costs, housing benefits and other employee benefits Share-based compensation expenses	19,384 39,699 2,375 3,930 2,584 4,508 2,796 4,528
	27,139 52,665

Employees of the group companies in the PRC are required to participate in a defined contribution retirement scheme administered and operated by the local municipal governments. The Group contributes funds which are calculated on fixed percentage of 16% of the employees’ salary (subject to a floor and cap) as set by local municipal governments to the scheme locally to fund the retirement benefits of the employees.

(b) Five highest paid individuals

For the year ended December 31, 2025, the 5 individuals whose emoluments were the highest in the Group include 2 (2024: 2) directors whose emoluments are reflected in the analysis presented in Note 34(a). The aggregate amounts of emoluments for the remaining 3 (2024: 3) individuals for each of the years ended December 31, 2025 and 2024 are set out below:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Salaries Bonuses Pension costs — defined contribution plans Other social security costs, housing benefits and other employee benefits Share-based compensation expenses	1,314 1,784 46 15 107 102 146 158 — 1,244
	1,613 3,303

The emoluments payable to the individual for the years ended December 31, 2025 and 2024 fell within the following bands:

	Year ended December 31, 2025 2024
Emoluments band Nil to HKD1,000,000 HKD1,000,001 to HKD1,500,000	3 1 — 2
	3 3

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146

Notes to the Consolidated Financial Statements

10 Finance income — net

Finance income — net
	Year ended December 31, 2025 2024 RMB’000 RMB’000
Finance income Interest income on bank deposits Interest income from a loan to a third party Finance costs Interest cost on lease liabilities Interest on advance drawn on notes receivables discounted Foreign exchange gains, net Finance income — net	326 803 28 140
	354 943 (53) (18) — (174) 853 214
	1,154 965

11 Income tax expense

The income tax expense of the Group for the years ended December 31, 2025 and 2024 is analysed as follows:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Current income tax — Current income tax of this year Deferred tax (Note 32) Income tax expense	90 2 70 8
	160 10

(a) Cayman Islands income tax

The Company is incorporated in the Cayman Islands as an exempted company with limited liability under the Companies Law of Cayman Islands and accordingly, is exempted from Cayman Islands income tax.

(b) Hong Kong Profits Tax

The Group is not subject to Hong Kong Profits Tax on foreign-sourced income, dividends and capital gains. The subsidiaries incorporated in Hong Kong were subject to 16.5% income tax on its taxable profits generated from operations in Hong Kong which had no assessable profits arising in Hong Kong for the years ended December 31, 2025 and 2024. Payment of dividends is not subject to withholding tax in Hong Kong.

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147

Notes to the Consolidated Financial Statements

11 Income tax expense (Continued)

(c) PRC Enterprise Income Tax (“EIT”)

Based on the existing legislation, interpretations and practices in respect thereof, the income tax provision of the Group in respect of operations in the PRC has been calculated at the tax rate of 25% on the estimated assessable profits for the years ended December 31, 2025 and 2024, except for certain subsidiaries which are subject to preferential income tax rates set out as follows:

Horgos Linekong Pictures Corporation (“ Horgos Pictures ”) was entitled to a preferential income tax rate of 12.5% in 2025 and 2024 under the relevant PRC tax rules and regulations.
Linekong Online was qualified as “High and New Technology Enterprises” and entitled to a preferential income tax rate of 15% in 2025 and 2024.
Horgos Chenxi Entertainment and Media Co., Ltd. (“ Horgos Chenxi ”), Horgos Linekong Pictures Culture Co., Ltd (“ Horgos Pictures Culture ”) and Horgos Juying Shiguang Pictures Culture Co. (“ Horgos Juying Shiguang ”) were exempted from income taxes for entities established in the Horgos special economic areas under the relevant PRC tax rules and regulations in 2024.
Horgos Chenxi, Horgos Pictures Culture, Horgos Juying Shiguang and Linekong Interactive Entertainment Film (Beijing) Co., Limited were qualified as a "Small Low-profit Enterprise" and were subject to EIT on 25% of its taxable income at a tax rate of 20% in 2025.

According to a policy promulgated by the State Tax Bureau of the PRC, enterprises engaged in research and development activities are entitled to claim 200% (2024: 200%) of the research and development expenses incurred as tax deductible expenses in determining tax assessable profits (“ Super Deduction ”) for the years ended December 31, 2025 and 2024. Several PRC subsidiaries of the Group have claimed such Super Deductions in ascertaining their tax assessable profits/(losses) for the years ended December 31, 2025 and 2024.

(d) PRC withholding Tax (“WHT”)

According to the applicable PRC tax regulations, dividends distributed by a company established in the PRC to a foreign investor with respect to profits derived after January 1, 2008 are generally subject to 10% WHT. If a foreign investor incorporated in Hong Kong meets the conditions and requirements under the double taxation treaty arrangement entered into between the PRC and Hong Kong, the relevant WHT rate is reduced from 10% to 5%.

As of December 31, 2025 and 2024, the PRC Operational Entities did not have available undistributed profits to be remitted to the Company.

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148

Notes to the Consolidated Financial Statements

11 Income tax expense (Continued)

The tax on the Group’s loss before tax differs from the theoretical amount that would arise using the statutory tax rate applicable to loss before income tax of consolidated entities in the respective jurisdictions as follows:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Loss before income tax Tax calculated at statutory income tax rates applicable to loss before income tax of the consolidated entities in their respective jurisdictions (Note (i)) Tax effects of: Preferential income tax rates applicable to subsidiaries Income not subject to tax Super Deduction for research and development expenses Expenses not deductible for tax purposes: — Share-based compensation — Others Unrecognised temporary differences and tax losses (Note (ii)) Income tax paid outside the territory which is not deducted from resident enterprise income tax payable Income tax expense	(12,256) (29,890)
	(1,136) (8,401) 5,864 4,538 (7,576) (4,301) (598) (3,022) 1 6 816 441 2,789 10,747 — 2
	160 10

Notes:

(i) The Company is exempted from Cayman Islands income tax. As such, the operating results reported by the Company on a standalone basis, are not subject to any income tax.

(ii) The Group has assessed the realisation of deductible temporary differences and unused tax losses for each Group entity as of December 31, 2025 and 2024. The temporary differences including tax losses of several subsidiaries were not recognised due to insufficient future taxable profits being available at each of these entities.

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149

Notes to the Consolidated Financial Statements

12 Loss per share

(a) Basic

Basic loss per share for the years ended December 31, 2025 and 2024 is calculated by dividing:

(i) the loss of the Group attributable to the owners of the Company of the year;
(ii) by the weighted average number of ordinary shares outstanding during the financial year, adjusted for excluding shares held for the RSU scheme.

	Year ended December 31, 2025 2024
Loss attributable to owners of the Company (RMB’000) Weighted average number of ordinary shares in issue (thousand shares) Basic loss per share (expressed in RMB per share)	(10,289) (29,031)
	358,652 351,288
	(0.03) (0.08)

(b) Diluted

Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.

For the years ended December 31, 2025 and 2024, the Company had two categories of potential ordinary shares, i.e. RSUs and share options granted to eligible persons. As the Group incurred a loss for the years ended December 31, 2025 and 2024, the potential ordinary shares were not included in the calculation of dilutive loss per share where their inclusion would be anti-dilutive. Accordingly, diluted loss per share for the years ended December 31, 2025 and 2024 are the same as basic loss per share of the years.

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150

Notes to the Consolidated Financial Statements

13 Subsidiaries

The following is a list of the principal subsidiaries (including structured entities) as of December 31, 2025:

			Place and date	Issued and paid-in
			of incorporation/	capital/registered	Equity	Principal activities and place of
Company Name		Kind of legal entity	establishment	capital	Interest Held	operation
(a) Directly held by the Company:
Beijing Linekong Online*		Limited liability company	PRC/April 14, 2008	USD35,000,000	100%	Technology consulting and services/
					(2024: 100%)	PRC
Linekong Holdings Limited		Limited liability company	BVI/January 8, 2014	USD1	100%	Investment holdings/BVI
					(2024: 100%)
Creative Ace Limited		Limited liability company	Cayman Islands/	USD50,000	100%	Investment holdings/Cayman Islands
			June 17, 2015		(2024: 100%)
(b) Indirectly held by the Company:
Linekong Asia Co., Limited		Limited liability company	Hong Kong/	HKD10,000	100%	Game operation, research and
			March 27, 2014		(2024: 100%)	development/Hong Kong
Linekong Korea Co., Ltd.		Limited liability company	South Korea/	KRW100,000,000	100%	Game operation, research and
			April 16, 2014		(2024: 100%)	development/South Korea
Ace Incorporation Limited		Limited liability company	Hong Kong/	HKD1	100%	Investment holdings/Hong Kong
			September 4, 2015		(2024: 100%)
(c) Controlled by the Company pursuant	to the Contractual Agreements:
Linekong Online*		Limited liability company	PRC/March 30, 2007	RMB10,000,000	100%	Game operation, research and
					(2024: 100%)	development/PRC
Shouyoutong (Beijing) Technology Co.,		Limited liability company	PRC/August 26, 2011	RMB10,000,000	100%	Game operation/PRC
Ltd.*					(2024: 100%)
Tianjin Baba Liusi Network Technology		Limited liability company	PRC/	RMB10,000,000	100%	Game operation/PRC
Co., Ltd.*			December 26, 2012		(2024: 100%)
Beijing Lanhujing Technology Co.,		Limited liability company	PRC/May 29, 2014	RMB10,000,000	100%	Game research and development/
Limited*					(2024: 100%)	PRC
Beijing Quweizhijian Network Technology		Limited liability company	PRC/July 25, 2014	RMB10,000,000	100%	Game research and development/
Co., Limited*					(2024: 100%)	PRC
Beijing Feng and Long Interactive Culture		Limited liability company	PRC/June 5, 2015	RMB12,500,000	100%	Game operation, research and
Co., Limited*					(2024: 100%)	development/PRC

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151

Notes to the Consolidated Financial Statements

13 Subsidiaries (Continued)

The following is a list of the principal subsidiaries (including structured entities) as of December 31, 2025: (Continued)

			Place and date	Issued and paid-in
			of incorporation/	capital/registered	Equity	Principal activities and place of
Company Name		Kind of legal entity	establishment	capital	Interest Held	operation
(c) Controlled by the Company pursuant	to the Contractual Agreements:
Horgos Pictures*		Limited liability company	PRC/June 14, 2016	RMB50,000,000	82.19%	Film and television drama series
					(2024: 82.19%)	production and distribution/PRC
Linekong Interactive Entertainment Film		Limited liability company	PRC/August 8, 2016	RMB3,000,000	82.19%	Film and television drama series
(Beijing) Co., Limited*					(2024: 82.19%)	production and distribution/PRC
Duobianxing (Hainan) Internet		Limited liability company	PRC/December 9, 2019	RMB10,000,000	100%	Game operation, research and
Technology Co., Ltd.*					(2024: 100%)	development/PRC
Horgos Chenxi*		Limited liability company	PRC/May 14, 2020	RMB1,000,000	60%	Inactive/PRC
					(2024: 60%)
Juying Shiguang (Hainan) Pictures TV		Limited liability company	PRC/April 23, 2020	RMB2,000,000	84.5%	Film and television drama series
Co.*					(2024: 84.5%)	production and distribution/PRC
Horgos Juying Shiguang*		Limited liability company	PRC/June 15, 2020	RMB3,000,000	84.5%	Short film production and
					(2024: 84.5%)	distribution/PRC
Horgos Pictures Culture*		Limited liability company	PRC/June 12, 2020	RMB3,000,000	82.19%	Film and television drama series
					(2024: 82.19%)	production and distribution/PRC
Xingmantian (Hainan) Internet		Limited liability company	PRC/September 28,	RMB10,000,000	100%	Dormant/PRC
Technology Co., Ltd.*			2020		(2024: 100%)
Shenyang Yuechang Network Technology		Limited liability company	PRC/October 31, 2023	RMB1,000,000	84.5%	Short film production and
Co., Ltd.*					(2024: 84.5%)	distribution/PRC
Shenyang Qiji Technology Co., Ltd.*(i)		Limited liability company	PRC/December 6, 2023	RMB1,000,000	—	Short film production and
					(2024: 84.5%)	distribution/PRC

The English name for identification only.

(i) Shenyang Qiji Technology Co., Ltd. was dissolved on August 6, 2025.

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152

Notes to the Consolidated Financial Statements

14 Investment accounted for using equity method

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Beginning of the year Share of profit Share of other comprehensive (loss)/income End of the year Name Principal activities/country of incorporation	41,337 36,972 2,534 3,550 (1,410) 815
	42,461 41,337
	% Interest held as of December 31, 2025 2024
Fuze Entertainment Co., Ltd. (“Fuze”) Smart device development and sale/Cayman Islands 36.82% 36.82%

Summarised statement of financial position of Fuze

Summarised statement of financial position of Fuze
	As of December 31, 2025 2024 RMB’000 RMB’000
Current assets Non-current assets Current liabilities Net assets	89,119 90,055 36,300 32,382 (10,100) (10,169)
	115,319 112,268

Summarised statement of profit or loss and other comprehensive income of Fuze

Fuze
	Year ended December 31, 2025 2024 RMB’000 RMB’000
Revenue Profit before income tax Net profit Other comprehensive (loss)/income Total comprehensive income Total comprehensive income, the Group’s share	— — 6,880 9,641
	6,880 9,641 (3,828) 2,213
	3,052 11,854
	1,124 4,365

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153

Notes to the Consolidated Financial Statements

14 Investment accounted for using equity method (Continued)

Reconciliation of summarised financial information

Reconciliation of the summarised financial information presented to the carrying amount of its interest in Fuze.

	As of December 31, 2025 2024 RMB’000 RMB’000
Net assets of the associate Net assets of the associate, the Group’s share Goodwill Impairment loss Carrying value	115,319 112,268
	42,461 41,337
	69,300 69,300 (69,300) (69,300)
	42,461 41,337

15 An associate measured at fair value through profit or loss

	As of December 31, 2025 2024 RMB’000 RMB’000
Unlisted fund Name Principal activities/country of incorporation	20,332 21,643
	% Interest held as of December 31, 2025 2024
Suzhou Ji Ke Bang Undertaking Investment Partnership Enterprise (the “Jikebang Fund”) Investment holding as a private equity fund/PRC	25.77% 25.77%

Note:

Jikebang Fund is not traded on an active market, and its fair value is determined using valuation techniques as disclosed in Note 3.3. The fair value is within level 3 of the fair value hierarchy.

Changes in fair value of an associate measured at fair value through profit or loss are recorded in “other losses — net” in profit or loss (Note 7).

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154

Notes to the Consolidated Financial Statements

16 Property, plant and equipment

Property, plant and equipment
	Furniture and office equipment Servers and other equipment Motor vehicles Leasehold improvements Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
As of January 1, 2024 Cost Accumulated depreciation Net book amount Year ended December 31, 2024 Opening net book amount Additions Depreciation Disposal Write-off Foreign exchange adjustments Closing net book amount As of December 31, 2024 Cost Accumulated depreciation Net book amount Year ended December 31, 2025 Opening net book amount Additions Depreciation Disposal Foreign exchange adjustments Closing net book amount As of December 31, 2025 Cost Accumulated depreciation Net book amount	4,671 10,120 2,607 99 17,497 (4,296) (10,028) (2,597) (10) (16,931)
	375 92 10 89 566
	375 92 10 89 566 388 7,942 — — 8,330 (235) (1,989) — (18) (2,242) (30) — — — (30) (1) — — (71) (72) (8) 62 — — 54
	489 6,107 10 — 6,606
	4,219 18,146 2,607 — 24,972 (3,730) (12,039) (2,597) — (18,366)
	489 6,107 10 — 6,606
	489 6,107 10 — 6,606 443 — — 274 717 (257) (2,646) — (15) (2,918) (8) — — — (8) — (93) — — (93)
	667 3,368 10 259 4,304
	4,548 17,968 2,607 274 25,397 (3,881) (14,600) (2,597) (15) (21,093)
	667 3,368 10 259 4,304

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155

Notes to the Consolidated Financial Statements

16 Property, plant and equipment (Continued)

Depreciation on property, plant and equipment is calculated using the straight-line method to allocate their costs to their residual values over their estimated useful lives, as follows:

Furniture and office equipment	3 years
Servers and other equipment	3–5 years
Motor vehicles	5 years
Leasehold improvements	Estimated useful lives or remaining lease terms, whichever is shorter

Depreciation charges were expensed in the following categories in the consolidated statement of profit or loss and other comprehensive income:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Cost of revenue Administrative expenses Selling and marketing expenses Research and development expenses	85 83 2,822 2,085 4 19 7 55
	2,918 2,242

17 Leases

(i) Amounts recognised in the consolidated statement of financial position

The consolidated statement of financial position shows the following amounts relating to leases:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Right-of-use assets Leased offices Lease liabilities Current Non-current	5,337 —
	2,098 — 2,863 —
	4,961 —

Additions to the right-of-use assets during the year ended December 31, 2025 were RMB5,940,000 (2024: RMB542,000).

Rental contracts are typically made for fixed periods of 2 to 3 years. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes.

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156

Notes to the Consolidated Financial Statements

17 Leases (Continued)

(ii) Amounts recognised in the consolidated statement of profit or loss and other comprehensive income

The consolidated statement of profit or loss and other comprehensive income shows the following amounts relating to leases:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Depreciation charge of right-of-use assets Leased offices Interest expense (included in finance income — net (Note 10)) Expenses relating to short-term leases	603 505
	53 18 1,546 2,214

The total cash outflow for leases in 2025 was RMB2,578,000 (2024: RMB2,744,000).

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157

Notes to the Consolidated Financial Statements

18 Intangible assets

	Trademarks and licenses Computer software Cryptocurrencies Total RMB’000 RMB’000 RMB’000 RMB’000
As of January 1, 2024 Cost Accumulated impairment Accumulated amortisation Net book amount Year ended December 31, 2024 Opening net book amount Additions Amortisation Disposal Impairment (Note) Foreign exchange adjustments Closing net book amount As of December 31, 2024 Cost Accumulated impairment Accumulated amortisation Net book amount Year ended December 31, 2025 Opening net book amount Additions Amortisation Disposal Impairment (Note) Foreign exchange adjustments Closing net book amount As of December 31, 2025 Cost Accumulated impairment Accumulated amortisation Net book amount	37,401 6,487 20,167 64,055 (1,440) — — (1,440) (35,791) (6,482) — (42,273)
	170 5 20,167 20,342
	170 5 20,167 20,342 — 204 53,415 53,619 — (93) — (93) — — (19,406) (19,406) — — (1,167) (1,167) (36) — 647 611
	134 116 53,656 53,906
	37,401 6,693 54,823 98,917 (1,440) — (1,167) (2,607) (35,827) (6,577) — (42,404)
	134 116 53,656 53,906
	134 116 53,656 53,906 — 16 92,627 92,643 (134) (119) — (253) — — (55,257) (55,257) — — (1,685) (1,685) — — (1,783) (1,783)
	— 13 87,558 87,571
	37,401 6,709 90,410 134,520 (1,440) — (2,852) (4,292) (35,961) (6,696) — (42,657)
	— 13 87,558 87,571

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158

Notes to the Consolidated Financial Statements

18 Intangible assets (Continued)

Amortisation charges were expensed in the following categories in the consolidated statement of profit or loss and other comprehensive income:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Administrative expenses Research and development expenses	239 58 14 35
	253 93

Note:

Impairment

Trademarks and licenses

Trademarks and licenses subjected to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

In 2025 and 2024, no further impairment charge was considered necessary for trademarks and licenses.

Computer software

Computer software subjected to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

In 2025 and 2024, no further impairment charge was considered necessary for computer software.

Cryptocurrencies

Cryptocurrencies purchased and held by the Group have been assessed based on each type of cryptocurrencies for impairment testing. The Group carries out impairment testing by comparing the recoverable amounts of cryptocurrencies to their carrying amounts. An impairment loss will be recognised when the recoverable amount is lower than the carrying amount, while a gain will not be recognised even when the recoverable amount is higher than the carrying amount. A gain will only be recognised if the cryptocurrency is disposed of, assuming the proceeds from disposal at that time is higher than its carrying amount.

The recoverable amount of each type of cryptocurrencies are determined based on fair value less costs of disposal. In determining the fair values, the relevant available markets are identified by the Group, and the Group consider accessibility to, and activity within those markets in order to identify the principal cryptocurrency markets for the Group. During the year ended December 31, 2025, the Group purchased approximately USD12,975,000 (equivalent to approximately RMB92,627,000) of Bitcoin, Ethereum and Solana. The fair value of Bitcoin, Ethereum and Solana traded in active markets (such as trading and exchange platforms) is determined based on quoted market prices at the end of the reporting period. A market is regarded as active if quoted prices are readily and regularly available from an exchange and those prices represent actual and regularly occurring market transactions on an arm’s length basis. Therefore, the fair value used for assessment of recoverable amount in impairment test is determined as quoted prices (unadjusted) in active markets for Bitcoin (level 1), Ethereum (level 1) and Solana (level 1).

As of December 31, 2025, the Group carried out impairment tests for Bitcoin, Ethereum and Solana. Based on the results of the impairment tests, the recoverable amount of Bitcoin was approximately RMB73,761,000 (2024: RMB67,980,000), which exceeded its carrying amount. The recoverable amounts of Ethereum and Solana were approximately RMB11,920,000 (2024: RMB19,686,000) and RMB6,800,000 (2024: Nil), respectively, which were lower than their carrying amounts. Accordingly, impairment loss on Ethereum and Solana totalling RMB1,685,000 (2024: RMB1,167,000) was recognised in profit or loss for the year ended December 31, 2025.

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Notes to the Consolidated Financial Statements

19 Film rights and films in progress

	As of December 31, 2025 2024 RMB’000 RMB’000
Film rights and films in progress — Under production/production yet to commence Beginning of the year Additions Charged to profit or loss (included in "Film production costs and other film business costs" (see Note 8)) Impairment (Note) End of the year Note: Impairment	12,728 9,059
	9,059 8,785 3,669 4,456 — (2,372) — (1,810)
	12,728 9,059

In 2025 and 2024, production plans of certain online dramas were rescheduled or cancelled. For online dramas whose production plans were rescheduled, the expected income generated from certain film rights is not expected to cover the future marketing expense and production costs. For those online dramas whose production plans were cancelled, the film rights were fully impaired. No impairment loss (2024: impairment loss of RMB1,810,000) was recognised based on the results of the impairment test during the year.

20 Financial instruments by category

	Financial assets at amortised cost Financial assets at fair value through profit or loss Total RMB’000 RMB’000 RMB’000
Assets As of December 31, 2025 Trade receivables Other receivables Financial assets at fair value through profit or loss An associate at fair value through profit or loss Cash and cash equivalents Restricted cash As of December 31, 2024 Trade receivables Other receivables Contract assets Financial assets at fair value through profit or loss An associate at fair value through profit or loss Cash and cash equivalents	2,641 — 2,641 17,545 — 17,545 — 23,177 23,177 — 20,332 20,332 67,242 — 67,242 332 — 332
	87,760 43,509 131,269
	3,753 — 3,753 16,661 — 16,661 5,063 — 5,063 — 40,294 40,294 — 21,643 21,643 89,883 — 89,883
	115,360 61,937 177,297

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Notes to the Consolidated Financial Statements

20 Financial instruments by category (Continued)

Financial instruments by category_(Continued)_
	Financial liabilities at amortised cost RMB’000
Liabilities As of December 31, 2025 Lease liabilities Trade and other payables (excluding salary and staff welfare payables, provision for compensation and other taxes payables) As of December 31, 2024 Trade and other payables (excluding salary and staff welfare payables and other taxes payables)	4,961 26,104
	31,065
	25,708

The Group’s exposure to various risks associated with the financial instruments is discussed in Note 3. The maximum exposure to credit risk at the end of the reporting periods are the carrying amount of each class of financial instruments stated above.

21 Financial assets at fair value through profit or loss

	As of December 31, 2025 2024 RMB’000 RMB’000
Included in non-current assets Unlisted securities (Note) Included in current assets Equity listed outside Hong Kong	20,706 40,294
	2,471 —

Note:

There is no quoted market price available for the unlisted securities. The Group has determined the fair value of these investments based on estimated future cash flows method as disclosed in Note 3.3. The fair values are within level 3 of the fair value hierarchy.

22 Inventories

	2025	2024
	RMB’000	RMB’000
Raw materials	165	—

The analysis of the amount of inventories recognised as an expense and included in profit or loss is as follows:

		2025	2024
		RMB’000	RMB’000
Carrying amount of inventories sold (Note	8)	44	—

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161

Notes to the Consolidated Financial Statements

23 Trade receivables

Trade receivables
	As of December 31, 2025 2024 RMB’000 RMB’000
Trade receivables Loss allowance	5,665 5,973 (3,024) (2,220)
	2,641 3,753

(a) The revenue of the Group from the game distribution channels, third-party payment vendors, game publishers and film publishers are mainly made on credit terms determined on an individual basis with a normal period up to 60 days. Ageing analysis based on invoice date of the gross trade receivables at the end of the reporting period is as follows:

	As of December 31, 2025 2024 RMB’000 RMB’000
0–60 days 61–90 days 91–180 days 181–365 days over 1 year	2,378 3,459 150 125 128 201 131 582 2,878 1,606
	5,665 5,973

As of December 31, 2025 and 2024, due to the short-term nature of the trade receivables, the carrying amounts are considered to be a reasonable approximation of their fair values.

(b) The carrying amount of the Group’s trade receivables are denominated in the following currencies:

	As of December 31, 2025 2024 RMB’000 RMB’000
RMB USD HKD KRW	3,520 3,384 1,706 2,393 252 — 187 196
	5,665 5,973

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162

Notes to the Consolidated Financial Statements

24 Other receivables

	As of December 31, 2025 2024 RMB’000 RMB’000
Current(Note (c)) Loans to third parties and related interest (Note (a)) Receivable from capital reduction of an associate measured at fair value through profit or loss Receivable from disposal of financial assets at fair value through profit or loss Others Loss allowance (Note (b)) Non-current Rental and other deposits Others	20,963 26,104 10,035 10,035 4,471 — 3,095 1,837
	38,564 37,976 (22,717) (22,149)
	15,847 15,827
	871 — 827 834
	1,698 834

Notes:

(a) Loans to third parties are mainly due from film producers for the Group’s investment in film projects. These loans are repayable within 12 months and with a fixed return of 15%-20% (2024: 15%-20%). The balance of these loans to film producers and related interest has been fully impaired, thus the balance of these loans after allowance is nil as of December 31, 2025 and 2024.

As of December 31, 2024, amounting of RMB5,000,000 was loaned to a third party with fixed interest of 3.45% per annum which was unsecured and fully repaid during the year ended December 31, 2025.

(b) Note 3.1(b) provides details about the calculation of the loss allowance.

(c) As of December 31, 2025 and 2024, due to the short-term nature of the other receivables, the carrying amounts are considered to be a reasonable approximation of their fair values.

25 Other assets

	As of December 31, 2025 2024 RMB’000 RMB’000
Current Prepaid service charges to game distribution channels Prepayments to game developers Prepaid rental, advertising cost and others Deductible value-added tax input Non-current Prepaid service charges by game distribution channels Deductible value-added tax input (Note)	8,481 7,434 6,430 5,540 2,715 2,895 5,121 6,245
	22,747 22,114
	592 350 5,075 4,859
	5,667 5,209

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163

Notes to the Consolidated Financial Statements

25 Other assets (Continued)

Note:

The Group classified certain deductible value-added tax input as non-current assets based on the forecast utilisation of the deductible value-added tax input.

26 Cash and cash equivalents and restricted cash

	As of December 31, 2025 2024 RMB’000 RMB’000
Cash and cash equivalents — Cash at bank and in hand — Cash at other financial institutions Restricted cash — Denominate in RMB	56,832 65,190 10,410 24,693
	67,242 89,883
	332 —

The amount of RMB332,000 represents restricted bank balances have been frozen by a court.

Cash and cash equivalents are denominated in the following currencies:

	As of December 31, 2025 2024 RMB’000 RMB’000
RMB USD HKD Others	29,626 40,823 30,154 42,836 7,160 5,882 302 342
	67,242 89,883

27 Share capital and share premium

The authorised share capital of the Company has been designated as 2,000,000,000 ordinary shares with par value of USD0.000025 each since December 30, 2014.

	Number of ordinary shares Nominal value of ordinary shares Equivalent nominal value of ordinary shares Share premium Shares held for RSU scheme ’000 USD’000 RMB’000 RMB’000 RMB’000
Issued: As of January 1, 2024, December 31, 2024 and January 1, 2025 Exercise of share options As of December 31, 2025	367,975 10 59 1,720,690 (10,555) 1,518 — — 707 —
	369,493 10 59 1,721,397 (10,555)

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164

Notes to the Consolidated Financial Statements

28 Reserves

Reserves
		Currency	Statutory		Share-based
	Capital	translation	surplus	compensation		Other
	reserve	differences	reserve fund		reserve	reserves	Total
	RMB’000	RMB’000	RMB’000		RMB’000	RMB’000	RMB’000
	(Note (i))	(Note (ii))	(Note (iii))			(Note (iv))
Balance as of January 1, 2024	(4,293)	107,537	18,039		289,948	4,433	415,664
Share of other comprehensive income of investment
accounted for using equity method, net of tax
(Note 14)	—	—	—		—	815	815
Capital contribution from a shareholder (Note (i))	8,980	—	—		—	—	8,980
Employee share option and RSU scheme:
— Value of employee services (Note 29)	—	—	—		4,528	—	4,528
Currency translation differences	—	2,125	—		—	—	2,125
Balance as of December 31, 2024	4,687	109,662	18,039		294,476	5,248	432,112
Balance as of January 1, 2025	4,687	109,662	18,039		294,476	5,248	432,112
Share of other comprehensive loss of investment
accounted for using equity method, net of tax
(Note 14)	—	—	—		—	(1,410)	(1,410)
Exercise of share options	—	—	—		(244)	—	(244)
Employee share option and RSU scheme:
— Value of employee services (Note 29)	—	—	—		2,796	—	2,796
Currency translation differences	—	(4,419)	—		—	—	(4,419)
Balance as of December 31, 2025	4,687	105,243	18,039		297,028	3,838	428,835

Notes:

Note (i) On February 25, 2024, Linekong Holdings Limited, a wholly-owned subsidiary of the Company entered into an agreement with Magic Season International Limited (“ Magic Season ”), a private company directly held by a shareholder of the Company, Mr. Wang Feng. Pursuant to the agreement, Magic Season transferred its 35% equity interest in COCO FINANCE to Linekong Holdings Limited at nil consideration. The transfer was completed on May 15, 2024.

An external valuer was engaged to assist in determining the fair value of COCO FINANCE, which amounted to RMB8,980,000 as of the date of transfer. The principal activity of COCO FINANCE is operating a platform for creating and trading of the non-fungible tokens.

Note (ii) The currency translation differences comprises the exchange differences arising on translation from functional currency to presentation currency.

Note (iii) In accordance with the relevant laws and regulations in the PRC and Articles of Association of the companies incorporated in the PRC now comprising the Group, i.e., the PRC Operational Entities, it is required to appropriate 10% of the annual net profits of the PRC Operational Entities, after offsetting any prior years’ losses as determined under the PRC accounting standards, to the statutory surplus reserve fund before distributing any net profit. When the balance of the statutory surplus reserve fund reaches 50% of the registered capital of the entity, any further appropriation is at the discretion of the entity’s shareholders. The statutory surplus reserve fund can be used to offset prior years’ losses, if any, and may be capitalised as capital, provided that the remaining balance of the statutory surplus reserve fund after such usage is no less than 25% of the entity’s registered capital.

In addition, in accordance with the Law of the PRC on Enterprises with Foreign Investments and the stipulated provisions in the Articles of Association of Beijing Linekong Online, appropriation from net profits (after offsetting accumulated losses brought forward from prior years) should be made by Beijing Linekong Online to its reserve fund. The percentage of net profit to be appropriated to the reserve fund is not less than 10% of the annual net profit. When the balance of the reserve fund reaches 50% of the registered capital, such appropriation needs not to be made.

Note (iv) Other reserves mainly comprised the currency translation differences arising from investment accounted for using equity method.

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165

Notes to the Consolidated Financial Statements

29 Share-based payments

(a) RSUs

Pursuant to a resolution passed by the Board of Directors of the Company on March 21, 2014, the Company set up a RSU scheme (the “ Old RSU Scheme ”) with the objective to attract, motivate and retain skilled and experienced personnel, including directors, senior management, and other employees, for the development and expansion of the Group by providing them with the opportunity to own equity interests in the Company, and to reward non-employees who provides or has provided consultancy or other advisory services to the Group.

On March 20, 2024, the Board agreed to extend the validity period of all the RSUs granted to another ten years.

On July 12, 2024, the Board of the Company passed a resolution to adopt a new RSU scheme (the “ 2024 RSU Scheme ”) which is valid and effective for a period of ten years commencing from July 12, 2024, unless it is terminated earlier in accordance with the rules of 2024 RSU Scheme. The 2024 RSU Scheme is a share award scheme, pursuant to which existing shares (excluding shares being repurchased and held as treasury shares) will be purchased by the trustee from the secondary market out of funding contributed by the Group and be held on trust for the eligible participants until such shares are vested with the eligible participants in accordance with the 2024 RSU Scheme.

On May 16, 2025, the Group adopted a new share scheme (the “ 2025 Share Scheme ”) which comprises RSUs and share options grant to the eligible participants. The 2025 Share Scheme was approved at the annual general meeting of the Company, and it is valid and effective for a period of ten years commencing from May 16, 2025, unless it is terminated earlier in accordance with the rules of 2025 Share Scheme. During the year ended December 31, 2025, no RSUs were granted under the 2025 Share Scheme.

(i) Grant of the RSUs

On January 18, 2017, April 1, 2019, August 16, 2019, September 12, 2019 and May 17, 2021, 1,805,385, 1,300,000, 760,000, 3,680,000 and 4,315,000 RSUs under the Old RSU Scheme were granted to directors, senior management, other employees and consultants, respectively.

The 1,805,385 RSUs granted on January 18, 2017 are vested in 4 years: 25% on January 18, 2018 and 12.5% each on every six months from January 18, 2018. The RSUs are vested only if the grantees remain engaged by the Group.

The 1,300,000 RSUs granted on April 1, 2019, are vested as follows: 50% on the date of grant, 8.5% each on the date ending 6, 12, 18, 24 and 30 months from the grant date and 7.5% on the date ending 36 months from the grant date. The RSUs are vested only if the grantees remain engaged by the Group.

The 760,000 RSUs granted on August 16, 2019, are vested as follows: 25% on the date ending 12 months from the grant date, 12.5% on every six months from 12 months from the grant date. The RSUs are vested only if the grantees remain engaged by the Group.

The 3,680,000 RSUs granted on September 12, 2019, are vested as follows: 50% on January 1, 2020, 8.5% each on the date ending 6, 12, 18, 24 and 30 months from the grant date and 7.5% on the date ending 36 months from the grant date. The RSUs are vested only if the grantees remain engaged by the Group.

On May 17, 2021, 415,000 RSUs were granted to employees, which are vested as follows: 25% on May 17, 2022 and 12.5% each on every 6 months from May 17, 2022. The RSUs are vested only if the grantees remain engaged by the Group.

On May 17, 2021, 3,900,000 RSUs were granted to directors and senior management, which are vested as follows: 25% on the date of the grant date, 25% on January 1, 2022, 12.5% each on the date ending 6, 12, 18, 24 months from January 1, 2022. Except the 25% vested on the date of the grant date, the remaining RSUs are vested only if certain performance standards are met, and the grantees remain engaged by the Group.

On July 12, 2024, 11,039,249 RSUs were granted under the 2024 RSU Scheme to director and senior management, which are vested as follows: 25% on the date of the grant date, 9.375% on October 12, 2024, 9.375% each on the date ending 6, 9, 12, 15, 18, 21, 24 months from October 12, 2024. Except the 25% vested on the date of the grant date, the remaining RSUs are vested only if certain performance standards are met, and the grantees remain engaged by the Group.

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166

Notes to the Consolidated Financial Statements

29 Share-based payments (Continued)

(a) RSUs (Continued)

(i) Grant of the RSUs (Continued)

On December 20, 2024, 6,941,398 RSUs were granted under the 2024 RSU Scheme to a director, which are vested as follows: 25% on the date of the grant date, 9.375% on March 20, 2025, 9.375% each on the date ending 6, 9, 12, 15, 18, 21, 24 months from March 20, 2025. Except the 25% vested on the date of the grant date, the remaining RSUs are vested only if certain performance standards are met, and the grantees remain engaged by the Group.

On December 5, 2025, 136,376 RSUs were granted and fully vested to a consultant under the 2024 RSU Scheme.

Movements in the number of RSUs outstanding:

	Number of RSUs
	Year ended December 31, 2025 2024
Beginning of the year Granted Lapsed Vested End of the year	12,463,676 65,625 136,376 17,980,647 (1,552,393) (13,750) (6,116,047) (5,568,846)
	4,931,612 12,463,676

As of December 31, 2025, 48,216,812 (2024: 42,100,765) RSUs have been vested unconditionally.

(ii) Shares held for RSU schemes

Pursuant to a resolution passed by the Board of Directors of the Company on March 21, 2014, the Company entered into a trust deed (the “ Trust Deed ”) with The Core Trust Company Limited (the “ RSU Trustee ”) and Premier Selection Limited (the “ RSU Nominee ”) to assist with the administration of the Old RSU Scheme. On March 21, 2014, the Company issued 42,161,541 ordinary shares to the RSU Nominee at a par value of USD0.000025 each, totalling RMB6,488 funded by Mr. Wang Feng. Accordingly, 42,161,541 ordinary shares of the Company underlying the RSUs were held by the RSU Nominee for the benefit of eligible participants pursuant to the Old RSU Scheme and the Trust Deed.

The above shares held for Old RSU Scheme are regarded as treasury shares and have been deducted from shareholders’ equity; the costs of these shares totalling approximately RMB6,488 were credited to “other reserves” as deemed contributions from shareholders. As a result of the vesting of 13,125 (2024: 38,750) RSUs during the year ended December 31, 2025, costs of these RSUs totalling approximately RMB2 (2024: RMB7) was transferred out from treasury shares upon vesting of these RSUs.

On August 22, 2024, the Company entered a Trust Deed with RSU Trustee and Best Review Global Limited (the “ 2024 RSU Nominee ”) to assist with the administration of the 2024 RSU Scheme. As of December 31, 2025 and 2024, no shares were held by the 2024 RSU Nominee in accordance with the 2024 RSU Scheme.

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167

Notes to the Consolidated Financial Statements

29 Share-based payments (Continued)

(a) RSUs (Continued)

(iii) Fair value of RSUs

The fair value of RSUs granted on January 18, 2017, April 1, 2019, August 16, 2019, September 12, 2019, May 17, 2021, July 12, 2024 and December 20, 2024 was assessed to approximate to the market price of the grant date at the amount of HKD3.10 each (equivalent to RMB4,945,015 in total), HKD0.88 each (equivalent to RMB979,000 in total), HKD0.64 each (equivalent to RMB436,000 in total), HKD0.72 each (equivalent to RMB2,396,000 in total), HKD0.73 each (equivalent to RMB2,608,000 in total) HKD0.34 each (equivalent to RMB3,378,000 in total) and HKD0.50 each (equivalent to RMB3,212,000 in total) respectively.

(b) Share options

On November 20, 2014, the shareholders of the Company approved the establishment of a share option scheme (the “ Pre-IPO Share Option Scheme ”) with an objective to incentivise and reward the eligible persons for their contribution to the Group and to align their interests with that of the Company so as to encourage them to work towards enhancing the value of the Company. The Pre-IPO Share Option Scheme will be valid and effective for a period of ten years commencing from December 30, 2014, (the listing date) unless it is terminated earlier in accordance with the rules of Pre-IPO Share Option Scheme.

On May 16, 2025, the Group adopted the 2025 Share Scheme which comprises RSUs and share options grant to the eligible participants. The 2025 Share Scheme was approved at the annual general meeting of the Company, and it is valid and effective for a period of ten years commencing from May 16, 2025, unless it is terminated earlier in accordance with the rules of 2025 Share Scheme. During the year ended December 31, 2025, no share options were granted under the 2025 Share Scheme.

The exercise price of the option shall be determined by the Board of Directors of the Company, and which shall not be less than the higher of:

(1) the closing price of the shares as stated in the Stock Exchange’s daily quotation sheets on the date of offer of the option;
(2) the average of the closing price of the shares as stated in the Stock Exchange’s daily quotation sheets for the five trading days immediately preceding the date of offer of the option; and
(3) the nominal value of the shares.

(i) Grant of share options

On January 18, 2017, 9,225,000 share options with an exercise price of HKD3.10 per share option were granted. The vesting period of the share options granted is 4 years. The vesting schedule starts with 25% on the date 12 months after the grant date and 12.5% every six months thereafter. The options are vested only if the grantees remain engaged by the Group.

On April 1, 2019, 1,300,000 share options with an exercise price of HKD0.88 per share option were granted. The vesting schedule starts with 50% on the date of grant, 8.5% each on the date 6, 12, 18, 24 and 30 months after the grant date and 7.5% on the date 36 months after the grant date. The options are vested only if the grantees remain engaged by the Group.

On August 16, 2019, 860,000 share options with an exercise price of HKD0.65 per share option were granted. The vesting schedule starts with 25% on the date 12 months after the grant date and 12.5% every six months thereafter. The options are vested only if the grantees remain engaged by the Group.

On May 17, 2021, 845,000 share options with an exercise price of HKD0.784 per share option were granted to employees, which are vested as follows: 25% on May 17, 2022 and 12.5% each on every 6 months from May 17, 2022. The options are vested only if the grantees remain engaged by the Group.

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168

Notes to the Consolidated Financial Statements

29 Share-based payments (Continued)

(b) Share options (Continued)

(i) Grant of share options (Continued)

On May 17, 2021, 2,800,000 share options with an exercise price of HKD0.784 per share option were granted to directors and senior management, which are vested as follows: 25% on the date of the grant date, 25% on January 1, 2022, 12.5% each on the date ending 6, 12, 18, 24 months from January 1, 2022. Except the 25% vested on the date of the grant date, the remaining options are vested only if certain performance standards are met, and the grantees remain engaged by the Group.

On July 12, 2024, 11,039,249 share options with an exercise price of HKD0.335 per share option were granted to director and senior management, which are vested as follows: 25% on the date of the grant date, 9.375% on October 12, 2024, 9.375% each on the date ending 6, 9, 12, 15, 18, 21, 24 months from October 12, 2024. Except the 25% vested on the date of the grant date, the remaining options are vested only if certain performance standards are met, and the grantees remain engaged by the Group.

The option period for all share options shall be ten years commencing from the respective grant date.

The Group has no legal or constructive obligations to repurchase or settle the options in cash.

Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:

	Year ended December 31, 2025 2024 Weighted average Exercise Price Number of share options Weighted average Exercise Price Number of share options
Beginning of the year Granted Lapsed Exercised End of the year	HKD2.07 21,745,297 HKD3.85 10,736,048 — — HKD0.34 11,039,249 HKD5.10 (4,893,441) HKD0.78 (30,000) HKD0.34 (1,518,000) — —
	HKD1.28 15,333,856 HKD2.07 21,745,297

Out of the 15,333,856 outstanding options (2024: 21,745,297), 13,005,268 options (2024: 14,470,164) were exercisable. Share options outstanding as of December 31, 2025 include no share options (2024: 462,298), no share options (2024: 2,878,750), 975,000 (2024: 975,000) share options, 3,291,250 (2024: 3,291,250), 1,300,000 (2024: 1,300,000), 621,250 (2024: 621,250) share options, 1,177,500 (2024: 1,177,500) share options, 7,968,856 (2024: 11,039,249), with the exercise price of HKD8.10, HKD7.18, HKD4.366, HKD3.10, HKD0.88, HKD0.65, HKD0.784 and HKD0.335 per share option, respectively. All these options will expire in 10 years from the grant date.

The weighted average share price of the Company’s shares at exercise date on which the options were exercised was HK$0.44.

The share options outstanding as of December 31, 2025 had a weighted average remaining contractual life of 6 years (2024: 7 years).

(ii) Fair value of share options

Based on the market price of the underlying ordinary shares of HKD3.10, HKD0.88, HKD0.65, HKD0.73 and HKD0.335 on the respective grant dates of the share options, the Company has used a Binomial option-pricing model to determine the fair value of the share options as of each grant date. The fair values of the share options granted on January 18, 2017, April 1, 2019, August 16, 2019, May 17, 2021 and July 12, 2024 were assessed to be HKD14,823,000 (approximately equivalent to RMB13,097,000), HKD678,000 (approximately equivalent to RMB580,000), HKD308,000 (approximately equivalent to RMB277,000), HKD1,640,000 (approximately equivalent to RMB1,358,000) and HKD1,941,000 (approximately equivalent to RMB1,773,000) respectively.

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169

Notes to the Consolidated Financial Statements

29 Share-based payments (Continued)

(b) Share options (Continued)

(ii) Fair value of share options (Continued)

The key assumptions used in the valuation of the share options as of the grant dates are set out in the table below:

	18, 2017	April 1, 2019 August 16, 2019	April 1, 2019 August 16, 2019	May 17, 2021	July 12, 2024
Risk-free interest rate	1.72%	1.60%	1.07%	1.23%	3.39%
Volatility	57.20%	61.00%	61.40%	67.50%	54.50%
Dividend yield	—	—	—	—	—

The Company estimated the risk-free interest rate based on the yield of HK 10-Year Government Bond with a maturity life equal to the life of the share options. Volatility was estimated at grant date based on the average of historical volatilities of comparable companies with a length commensurable to the time to maturity of the share options. Dividend yield is based on management estimation at the grant date.

(c) Expected retention rate of grantees

The Group estimates the expected yearly percentage of RSU and option grantees that will stay within the Group at the end of the vesting periods (the “ Expected Retention Rate ”) in order to determine the amount of share-based compensation expenses to be recorded in profit or loss. As of December 31, 2025, the Expected Retention Rate of employees was assessed to be 62% (2024: 62%) and the Expected Retention Rate of existing directors and senior management was assessed to be 100% (2024: 100%).

30 Trade and other payables

Trade and other payables
	As of December 31, 2025 2024 RMB’000 RMB’000
Trade payables Accrued expenses and liabilities Salary and staff welfare payables Provision for compensation (Note 33) Amount due to a related party (Note 38(a)) Other taxes payables	3,470 3,175 17,196 17,095 16,735 15,609 1,200 — 5,438 5,438 474 603
	44,513 41,920

Trade payables are mainly arising from licensing games from game developers. The credit terms of trade payables granted by the vendors are usually up to 30 days. The ageing analysis of trade payables based on invoice date is as follows:

	As of December 31, 2025 2024 RMB’000 RMB’000
0–180 days 181–365 days 1–2 years 2–3 years over 3 years	2,855 2,933 367 43 25 47 76 82 147 70
	3,470 3,175

As of December 31, 2025 and 2024, the carrying amounts of trade and other payables approximate their fair values.

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170

Notes to the Consolidated Financial Statements

31 Contract assets and contract liabilities

(a) Contract assets

Contract assets
	As of December 31,
	2025	2024
	RMB’000	RMB’000
Current
— Production of films	—	5,063

The contract assets have the same risk characteristics as the trade receivables, which are subject to the same ECL assessment as trade receivables.

During the year ended December 31, 2025, the reversal of loss allowance for contract assets of approximately RMB6,000 (2024: RMB1,000) was recognised in profit or loss. As of December 31, 2025, no accumulated allowance for loss allowance for contract assets (2024: RMB6,000).

Typical payment terms which impact on the amount of contract assets recognised are as follows:

The Group’s film production contracts include payment schedules which require stage payments over the project period once milestone are reached. These payment schedules prevent the build-up significant contract assets. This amount is included in contract assets until the end of the retention period as the Group’s entitlement to this final payment is conditional on the Group’s work satisfactorily passing inspection.

(b) Contract liabilities

Contract liabilities
	As of December 31, 2025 2024 RMB’000 RMB’000
Current — Sales of in-game virtual items (Note (i)) — Others Non-current — Sales of in-game virtual items (Note (i)) Note:	36,886 32,723 447 1,141
	37,333 33,864
	3,552 2,250

(i) Contract liabilities from sales of in-game virtual items include primarily service fees prepaid by the game players for the Group’s online games for which the related services had not been rendered as of the reporting date. As of December 31, 2025, the non-current portion is expected to be recognised to revenue in 2027 (2024: 2026).

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171

Notes to the Consolidated Financial Statements

31 Contract assets and contract liabilities (Continued)

(b) Contract liabilities (Continued)

Note: (Continued)

(ii) Revenue recognised in relation to contract liabilities

The following table shows how much of the revenue recognised in the current reporting period relates to carried-forward contract liabilities:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Revenue recognised that was included in the contract liabilities balance at the beginning of the period — Sales of in-game virtual items — Others	32,723 33,051 1,141 1,586
	33,864 34,637

32 Deferred income tax liabilities

Movements	Lease liabilities Right-of-use assets Total RMB’000 RMB’000 RMB’000
At January 1, 2024 (Charged)/credited to profit or loss (Note 11) At December 31, 2024 and January 1, 2025 Credited/(charged) to profit or loss (Note 11) At December 31, 2025	161 (153) 8 (161) 153 (8)
	— — — 967 (1,037) (70)
	967 (1,037) (70)

As of December 31, 2025, the Group has unused tax losses of approximately RMB331,832,000 (2024: RMB333,328,000) available for offset against future profits for the consecutive years and will expire between 2026 and 2030 (2024: 2025 and 2029). No deferred tax asset has been recognised in relation to such deductible temporary differences as it is not probable that taxable profit will be available against which the deductible temporary differences can be utilised.

33 Contingent liabilities

During the year, Linekong Online received civil claim filed by a third party in respect of alleged copyright infringement relating to the Group’s online game, where the claimant requested the court to order Linekong Online to pay a compensation of RMB5,000,000 for economic losses.

Taking into account the legal advice obtained, management has assessed that the probable exposure to the Group would be RMB1,200,000. Accordingly, a provision of RMB1,200,000 for compensation has been recognised and included in “trade and other payables” as of December 31, 2025.

As at the date of the approval for issuance of the consolidated financial statements, the above proceeding is still ongoing.

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172

Notes to the Consolidated Financial Statements

34 Benefits and interests of directors

(a) Directors’ and chief executive’s emoluments

The remuneration of every director and the chief executive is set out below:

For the year ended December 31, 2024

Name

Emoluments paid or receivable in respect of a person’s services as a director,
whether of the Company or its subsidiary undertaking:
Emoluments
paid or
receivable
in respect
of director’s
other services
in connection
with the
management
of the affairs of
the Company
or its subsidiary
undertaking
Total
Fees
Salaries
Discretionary
bonuses
Housing
allowance
Estimated
money value of
other benefits
(Note vii)
Contributions
to a defined
contribution
retirement
benefit plan
Remunerations
paid or receivable
in respect of
accepting office
as director
RMB’000
RMB’000
RMB’000
RMB’000
RMB’000
RMB’000
RMB’000
RMB’000
RMB’000

Chairman
Mr. Wang Feng (i)
Executive directors
Mr. Wang Jin (ii)
Mr. Chen Hao (iii)
Independent non-executive
Directors
Mr. Zhang Xiangdong (iv)
Ms. Wu Yueqin (v)
Mr. FU Frank Kan (vi)
Total

—
1,200
—
—
1,076
63
—
—
2,339
—
1,200
—
—
862
63
—
—
2,125
—
609
13
—
3
108
—
—
733
286
—
—
—
—
—
—
—
286
286
—
—
—
—
—
—
—
286
286
—
—
—
—
—
—
—
286

858
3,009
13
—
1,941
234
—
—
6,055

2025 Annual Report | Linekong Interactive Group Co., Ltd.

173

Notes to the Consolidated Financial Statements

34 Benefits and interests of directors (Continued)

(a) Directors’ and chief executive’s emoluments (Continued)

The remuneration of every director and the chief executive is set out below: (Continued)

For the year ended December 31, 2025

Name

Emoluments paid or receivable in respect of a person’s services as a director,
whether of the Company or its subsidiary undertaking:
Emoluments
paid or
receivable
in respect
of director’s
other services
in connection
with the
management
of the affairs
of the
Company or
its subsidiary
undertaking
Total
Fees
Salaries
Discretionary
bonuses
Housing
allowance
Estimated
money value
of other
benefits
(Note vii)
Contributions
to a defined
contribution
retirement
benefit plan
Remunerations
paid or
receivable
in respect of
accepting office
as director
RMB’000
RMB’000
RMB’000
RMB’000
RMB’000
RMB’000
RMB’000
RMB’000
RMB’000

Chairman
Mr. Wang Feng (i)
Executive directors
Mr. Wang Jin (ii)
Independent non-executive
Directors
Mr. Zhang Xiangdong (iv)
Ms. Wu Yueqin (v)
Mr. Fu Frank Kan (vi)
Total

—
1,200
—
—
1,742
53
—
—
2,995
—
1,200
—
—
389
53
—
—
1,642
286
—
—
—
—
—
—
—
286
286
—
—
—
—
—
—
—
286
286
—
—
—
—
—
—
—
286

858
2,400
—
—
2,131
106
—
—
5,495

2025 Annual Report | Linekong Interactive Group Co., Ltd.

174

Notes to the Consolidated Financial Statements

34 Benefits and interests of directors (Continued)

(a) Directors’ and chief executive’s emoluments (Continued)

(i) Mr. Wang Feng was appointed on May 24, 2007.
(ii) Mr. Wang Jin was appointed on May 11, 2018, as the executive director of the Company.
(iii) Mr. Chen Hao was appointed on May 11, 2018, as the executive directors of the Company and resigned on September 2, 2024.
(iv) Mr. Zhang Xiangdong was appointed on April 24, 2014, as the independent non-executive director of the Company.
(v) Ms. Wu Yueqin was appointed on May 29, 2018, as the independent non-executive director of the Company.
(vi) Mr. FU Frank Kan (“ Mr. FU ”) was appointed on February 26, 2023, as an independent non-executive director of the Company.
(vii) Other benefits mainly represent share-based compensation expenses and meal allowance.

(b) Directors’ retirement benefits

During the year, no retirement benefits were paid to or receivable by the directors in respect of their services as directors of the Company and its subsidiaries or other services in connection with the management of the affairs of the Company or its subsidiary undertaking (2024: Nil).

(c) Directors’ termination benefits

During the year, no payments or benefits in respect of termination of directors’ services were paid or made, directly or indirectly, to the directors; nor are any payable (2024: Nil).

(d) Consideration provided to third parties for making available directors’ services

During the year, no consideration was provided to or receivable by third parties for making available directors’ services (2024: Nil).

(e) Directors’ material interests in transactions, arrangements or contracts

No significant transactions, arrangements and contracts in relation to the Company’s business to which the Company was a party and in which a director of the Company had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year (2024: Nil).

35 Dividends

No dividends have been paid or declared by the Company during the years ended December 31, 2025 and 2024.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

175

Notes to the Consolidated Financial Statements

36 Cash flow information

(a) Cash (used in)/generated from operations

Cash (used in)/generated from operations
Note	Year ended December 31, 2025 2024 RMB’000 RMB’000
Loss before income tax Adjustments for: — Net impairment losses on trade and other receivables and contract assets 8 — Impairment of film rights and films in progress 8 — Depreciation of property, plant and equipment 8 — Depreciation of right-of-use assets 8 — Gains on lease termination 6 — Amortisation of intangible assets 8 — Impairment of intangible assets 6 — Losses/(gains) on disposal of property, plant and equipment 6 — Gains on disposal of intangible assets 6 — Write-off of property, plant and equipment 6 — Share-based compensation expenses 8 — Share of profit of investment accounted for using equity method 14 — Fair value gain from an associate measured at fair value through profit or loss 7 — Fair value losses from financial assets at fair value through profit or loss 7 — Cost of film rights licensed and production of films — Interest income on bank deposits 10 — Interest income from a loan to a third party 10 — Interest cost on lease liabilities 10 — Interest on advance drawn on notes receivables discounted 10 — Provision for compensation 6 — Foreign exchange gains, net 10 Changes in working capital: — Trade receivables — Other receivables and other assets — Contract assets — Trade and other payables — Contract liabilities — Inventories Cash (used in)/generated from operations	(12,256) (29,890) 1,376 182 — 1,810 2,918 2,242 603 505 — (25) 253 93 1,685 1,167 5 (6) (26,468) (15,485) — 72 2,796 4,528 (2,534) (3,550) (35) (1,157) 7,411 4,426 — 2,372 (326) (803) (28) (140) 53 18 — 174 1,200 — (853) (214)
	(24,200) (33,681) 314 42,778 (3,194) 1,821 5,063 1,864 1,140 875 4,771 (491) (165) —
	(16,271) 13,166

2025 Annual Report | Linekong Interactive Group Co., Ltd.

176

Notes to the Consolidated Financial Statements

36 Cash flow information (Continued)

(a) Cash (used in)/generated from operations (Continued)

Non-cash transactions

There is no significant non-cash transaction for the years ended December 31, 2025 and 2024 except for the recognition of lease liabilities and the corresponding amount of right-of-use assets for new leases, see Note 36(b) and Note 17.

(b) Net cash reconciliation

This section sets out an analysis of net cash and the movements in net cash for each of the years presented.

		As of December 31, 2025 2024 RMB’000 RMB’000
Cash and cash equivalents Lease liabilities Net cash Cash and liquid investments Gross debt — fixed interest rates Net cash	67,242 89,883 (4,961) — 62,281 89,883 67,242 89,883 (4,961) — 62,281 89,883 Other assets Liabilities from financing activities Cash Lease liabilities Total RMB’000 RMB’000 RMB’000	67,242 89,883 (4,961) —
		62,281 89,883
		67,242 89,883 (4,961) —
		62,281 89,883
Net cash/(debt) as of January 1, 2024 Cash flows Foreign exchange adjustments Interest expenses Other non-cash movements (Note) Net cash as of December 31, 2024 Net cash as of January 1, 2025 Cash flows Foreign exchange adjustments Interest expenses Other non-cash movements (Note) Net cash/(debt) as of December 31, 2025	77,668 (645) 77,023 10,848 530 11,378 1,367 — 1,367 — (18) (18) — 133 133
	89,883 — 89,883
	89,883 — 89,883 (20,553) 1,032 (19,521) (2,088) — (2,088) — (53) (53) — (5,940) (5,940)
	67,242 (4,961) 62,281

Note:

For the year ended December 31, 2025 and 2024, other non-cash movements mainly included the recognition of lease liabilities and the corresponding amount of right-of-use assets for new leases and the derecognition of lease liabilities and right-of-use assets due to lease termination.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

177

Notes to the Consolidated Financial Statements

37 Capital commitments

Capital commitments
	As of December 31,
	2025	2024
	RMB’000	RMB’000
Contracted but not provided for:
Capital expenditure in respect of the acquisition of property, plant and equipment	597	—

38 Significant related party transactions

In addition to those disclosed elsewhere in the consolidated financial statements, the following significant transactions were carried out between the Group and its related parties during the years ended December 31, 2025 and 2024. In the opinion of the directors of the Company, the related party transactions were carried out at terms negotiated between the Group and the respective related parties.

(a) Balances with a related party

Amount due to a related party

	As of December 31,
	2025	2024
	RMB’000	RMB’000
Fuze	5,438	5,438

(b) Key management personnel compensation

The compensation paid or payable to key management personnel for employee services is shown below:

	Year ended December 31, 2025 2024 RMB’000 RMB’000
Wages and salaries Bonuses Pension costs — defined contribution plans Other social security costs, housing benefits and other employee benefits Share-based compensation expenses	3,258 3,867 — 13 38 88 73 154 2,126 1,933
	5,495 6,055

2025 Annual Report | Linekong Interactive Group Co., Ltd.

178

Notes to the Consolidated Financial Statements

39 Statement of financial position and reserves movement of the Company

(a) Statement of financial position

Statement of financial position
	As of December 31, 2025 2024 RMB’000 RMB’000
ASSETS Non-current assets Investment accounted for using equity method Investments in subsidiaries Current assets Other receivables Other current assets Cash and cash equivalents Total assets EQUITY AND LIABILITIES Equity attributable to owners of the Company Share capital Share premium Shares held for restricted share unit scheme Reserves (Note 39(b)) Accumulated losses (Note 39(b)) Total equity Liabilities Current liability Other payables Total liabilities Total equity and liabilities	42,461 41,337 76,183 101,399
	118,644 142,736
	46,693 55,153 183 245 17,059 19,539
	63,935 74,937
	182,579 217,673
	59 59 1,721,397 1,720,690 (10,555) (10,555) 410,768 406,128 (1,951,250) (1,910,641)
	170,419 205,681
	12,160 11,992
	12,160 11,992
	182,579 217,673

The statement of financial position and reserves movement of the Company was approved by the Board of Directors on March 27, 2026 and was signed on its behalf.

Wang Jin Director

Wang Feng Director

2025 Annual Report | Linekong Interactive Group Co., Ltd.

179

Notes to the Consolidated Financial Statements

39 Statement of financial position and reserves movement of the Company (Continued)

(b) Reserves movement of the Company

		Currency	Share-based
		translation	compensation			Accumulated
	Capital reserve	differences	reserve	Other reserves	Total reserve	losses
	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000
Balance as of January 1, 2024	—	119,139	279,019	4,433	402,591	(1,884,404)
Loss for the year	—	—	—	—	—	(26,237)
Share of other comprehensive income of
investment accounted for using equity
method, net of tax (Note 14)	—	—	—	815	815	—
Employee share option and RSU scheme:
— Value of employee services (Note 29)	—	—	4,528	—	4,528	—
Currency translation differences	—	(1,806)	—	—	(1,806)	—
Balance as of December 31, 2024	—	117,333	283,547	5,248	406,128	(1,910,641)
Balance as of January 1, 2025	—	117,333	283,547	5,248	406,128	(1,910,641)
Loss for the year	—	—	—	—	—	(40,609)
Share of other comprehensive loss of
investment accounted for using equity
method, net of tax (Note 14)	—	—	—	(1,410)	(1,410)	—
Employee share option and RSU scheme:
— Value of employee services (Note 29)	—	—	2,796	—	2,796	—
Currency translation differences	—	3,254	—	—	3,254	—
Balance as of December 31, 2025	—	120,587	286,343	3,838	410,768	(1,951,250)

40 Events after the reporting period

Subsequent to the reporting period, there was a decline in the market prices of mainstream cryptocurrencies held by the Group, including Bitcoin, Ethereum and Solana. The market price of Bitcoin decreased from approximately USD88,504 as of December 31, 2025, to approximately USD68,868 as of March 27, 2026. The market prices of Ethereum and Solana also experienced similar downward movements over the same period.

The Group will continue to closely monitor market conditions.

41 Reclassification of comparative figures

Certain comparative figures have been reclassified to conform to the current year presentation.

2025 Annual Report | Linekong Interactive Group Co., Ltd.

180

Summary of Financial Information

	2025	2024	2023	2022	2021
	RMB’000	RMB’000	RMB’000	RMB’000	RMB’000
Revenue	41,358	146,049	135,506	71,057	85,934
Loss before income tax	(12,256)	(29,890)	(16,997)	(58,451)	(80,984)
Loss for the year	(12,416)	(29,900)	(16,996)	(61,144)	(80,934)
Total comprehensive loss for the year	(18,245)	(26,960)	(14,810)	(41,843)	(87,814)
Total assets	312,249	315,528	320,566	364,822	448,886
Total liabilities	93,027	81,320	72,906	102,416	144,896
Total equity and liabilities	312,249	315,528	320,566	364,822	448,886
Net current assets	24,903	57,570	122,894	84,373	141,361
Total assets less current liabilities	225,707	236,458	249,820	267,504	306,353

AI assistant

Linekong Interactive Group Co., Ltd. — Annual Report 2025

51356_rns_2026-04-28_294add12-a837-4323-93a3-a21be4937759.pdf

ANNUAL REPORT

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE “STOCK EXCHANGE”)

CONTENTS

Corporate Information

BOARD OF DIRECTORS

COMPANY SECRETARY

Executive Directors

AUTHORISED REPRESENTATIVES

Independent Non-executive Directors

COMPLIANCE OFFICER

BOARD COMMITTEES

Audit Committee

REGISTERED OFFICE

Remuneration Committee

HEADQUARTERS AND PRINCIPAL

Nomination Committee

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

Corporate Information

AUDITORS

GEM STOCK CODE

COMPANY WEBSITE

LEGAL ADVISORS

AS TO HONG KONG LAWS

CAYMAN ISLANDS PRINCIPAL SHARE

REGISTRAR AND TRANSFER AGENT

HONG KONG SHARE REGISTRAR

PRINCIPAL BANKS

Chairman’s Statement

2025 Business Review

(I) Traditional business operations remain robust, strengthening the foundations of our business

(II) Implementation of Web3 business strategy of dual breakthroughs in crypto assets and ecosystem development

(III) Taking a forward-looking approach to new emerging sectors, while paying attention to AI and robotics applications

Chairman’s Statement

2026 Business Prospects

Wang Feng

Biographical Details of the Directors and Senior Management

EXECUTIVE DIRECTORS

INDEPENDENT NON-EXECUTIVE DIRECTORS

Biographical Details of the Directors and Senior Management

Management Discussion and Analysis

BUSINESS REVIEW AND PROSPECTS

Web3 Business: a strategic focus of our development, striving for breakthroughs in investment, application and computing services

Management Discussion and Analysis

Game Business: leveraging AI innovation as a core driver to empower the highquality development of our game business

Management Discussion and Analysis

Film Business: sustaining long dramas, breaking into mid-length drama market and incubating AIGC

Management Discussion and Analysis

Management Discussion and Analysis

FINANCIAL REVIEW

Management Discussion and Analysis

Revenue

Management Discussion and Analysis

Cost of revenue

Gross profit and gross profit margin

Selling and marketing expenses

Administrative expenses

Research and development expenses

Other losses — net

Management Discussion and Analysis

Income tax expense

Loss for the year

Non-IFRS Accounting Standards measure — adjusted net loss

Management Discussion and Analysis

LIQUIDITY AND FINANCIAL RESOURCES

Cash and cash equivalents, short-term bank deposits

Capital expenditures

CAPITAL STRUCTURE

Management Discussion and Analysis

BORROWING AND GEARING RATIO

CHARGE ON GROUP ASSETS

INFORMATION ON EMPLOYEES AND REMUNERATION POLICY

Management Discussion and Analysis

SIGNIFICANT INVESTMENTS, MATERIAL ACQUISITIONS OR DISPOSAL OF SUBSIDIARIES, ASSOCIATED COMPANIES AND JOINT VENTURE

FUTURE PLANS FOR MATERIAL INVESTMENTS AND CAPITAL ASSETS

FINANCIAL INVESTMENTS

Investment Portfolio

Management Discussion and Analysis

Linekong Interactive Group Co., Ltd. Annual Report 2025