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The company is a well-known mobile game developer and publisher in China. The company's games are especially popular with the younger generation under the age of 30. The company has strong advantages in casual games (especially placement games) and Rogue-likeRPG. It currently operates six mobile games and has a reserve of 10 mobile games. The company's iconic mobile games "the strongest Snail" and "do not think about the Maze" achieve high levels of flow and rank at the top of the list of widely recognized games in the industry. Among them, "the strongest Snail" recorded more than 400 million yuan in the first month after its launch in June 2020, with an average MAU of 4.4 million people in 2020, and ranked second on the best-selling list of iOS games in China in 2020. The game generated 1.17 billion yuan and 517 million yuan in revenue in 2020 and the first half of 2021 respectively, accounting for 95.3% and 67.7% of the total revenue, which is the main driver of the company's profit growth. The company launched the 18.5 billion-yuan Lantern and Dungeons in March 2021, which topped the iOS free game list for six consecutive days and ranked fourth on the best-seller list. The company's excellent game distribution and operation capabilities enable the company to reach a wide range of active players. In terms of casual games and placement games, it ranks third and second among all mobile game companies in China. According to the flow meter of self-developed Rogue-like RPG, it ranks second among all mobile game companies in China. The company keeps abreast of changing market trends in game distribution and operation, adopts new channels in game distribution, and has established close working relationships with communities such as TapTap and Bilibili Inc., helping the company to more effectively attract target audiences, especially young players. The company's past performance has achieved strong growth, with revenue growing from 98.4 million yuan in 2018 to 1.227 billion yuan in 2020, with a compound annual growth rate of 253.1 percent, and profits growing from 24.9 million yuan in 2018 to 104 million yuan in 2020, with an annual compound growth rate of 104.3 percent. The post-IPO valuation of the company is about HK $9.6 billion, which currently corresponds to about 19 times the dynamic PE in 2021, which is higher than the market average. We believe that the audience of the products developed by the company is too small, and the market space for leisure placement is not growing fast, so we suggest that we should apply carefully.