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1 OVERVIEW We are a leading online social casino game developer and operator with strong brand recognition and distinguished expertise, headquartered in Korea. With our in-house development studios in Korea, we have established a leading position in the mobile social casino game segment in our main target markets, namely, Korea, Hong Kong, Taiwan, Malaysia and Singapore. Currently, we offer an integrated online social poker game platform, Fulpot Poker, and an integrated mobile social casino game platform, Full House Casino, enabling our players to enjoy cross-platform game experience whenever and wherever they want. According to the MarketDigits Report, we were ranked as the No.1 online Texas Hold em game company and the No.5 online card and board game company in Korea in terms of revenue for the year ended 31 December Further, according to the MarketDigits Report, within the category of mobile casino games in Google Inc. s Google Play, our Full House Casino was ranked as the No.1 game in Hong Kong, the No.3 game in Singapore, the No.4 game in Malaysia, and the No.7 game in Taiwan in terms of revenue in March We established an integrated online social poker game platform, Fulpot Poker, in September 2010, which as of the Latest Practicable Date offered a game portfolio of seven varieties of poker games including Texas Hold em, Omaha, Open Face Chinese Poker, Seven-Card Stud, Seven-Card Stud Hi/Lo, Badugi and Tournament. Fulpot Poker operates on a synchronised multi-platform, offering our game players PC-downloaded, web and mobile versions of the game. We believe Fulpot Poker is able to accommodate enthusiastic casual poker players and professional poker players, through its distinguishable features including multi-table function allowing game players to participate in up to 12 different tables and social interaction function allowing our highly active users to earn virtual items by referring new game players. Further, according to the MarketDigits Report, Korea is a leading and one of the most dynamic online game and mobile game markets in the world. Due to the high internet penetration and high percentage of paying game players in Korea, the Korean online game and mobile game market accounted for approximately 25.0% of the total revenue of the global online game and mobile game market in Leveraging on (a) the favourable and promising online and mobile game market potentials in Korea; (b) our continuous game development and marketing efforts; and (c) distinguished features of Fulpot Poker in encouraging high player stickiness, Fulpot Poker achieved a seven day retention rate of 75.0% in 2014 and a high ARPPU of HK$1,200.0 in Leveraging on our experience gained from developing and operating Fulpot Poker, we have developed and launched an integrated mobile social casino game platform, Full House Casino, in February Full House Casino allows our game players to choose from an extensive range of popular casino games including Baccarat, Blackjack, Texas Hold em, Sic Bo and various Slot Machines, in which they casually wager using virtual game chips. We are currently exploring additional casino games to be included in our Full House Casino platform, and we plan to launch four additional casino game types and several additional language versions for our Full House Casino platform to accommodate game players in South East Asia (including Thailand, Indonesia and Vietnam), Australia and North America. Our aim is for Full House Casino to become the top mobile social casino game platform in Asia, and one of the top three global mobile social casino game platforms. 130

2 Through our wholly-owned subsidiary in Hong Kong, Memoriki (HK), our Group has been publishing and operating webgames and mobile games in overseas markets, in particular those markets using traditional Chinese characters, including Hong Kong, Taiwan, Malaysia and Singapore. As our Company is the exclusive publisher of our self-developed games in Korea, whereas Memoriki (HK) is the exclusive publisher of our self-developed games in our target markets outside Korea, we are able to benefit from the publishing expertise of Memoriki (HK) when publishing our self-developed games. We believe that our ability to internally publish our self-developed games allows us to efficiently and effectively reach a broader game player base. Maintaining proprietary development and publishing capabilities provides us flexibility when it comes to upgrading and improving our online games and mobile games. We are also able to offer better localisation of our self-developed games to our various target markets. Apart from our self-developed games, Memoriki (HK) also publishes third party developed games. Memoriki (HK) operates Mplusfun, which has a total of approximately 3.9 million registered game players as of 31 March As of the Latest Practicable Date, we published 73 third party developed games, out of which 66 were webgames published through Mplusfun and seven were mobile games published through other third party platforms including Google Play and App Store. To expand our game portfolio, we have also invested in small to medium external mobile game development studios in Korea which focus on the development of mobile RPGs. We hold exclusive publishing rights for the mobile games developed from these game development studios that we invested in. Through such cooperation arrangements, we benefit from (a) saving development costs; (b) focusing our resources on developing online social casino games which we specialised in; and (c) complementing our existing game portfolio. With our aim to become a leading mobile games publisher in Asia, we intend to continue to make selective investments in small to medium game development studios in Korea, PRC and United States in order to acquire exclusive publishing rights for games which we consider to have strong market potentials. Part of the proceeds of [REDACTED] will also be used to make such further investments. We derive our revenue from online games and mobile games under two operation models, namely self-developed games and third party developed games. Publishing both our self-developed social casino games and third party developed games, which include strategy, RPG and action games allows us to achieve monetisation from a broader range of game player base. However, with the growing popularity of our self-developed games, we increasingly prioritised promotion of our self-developed game during the Track Record Period. As a result, the percentage of our revenue contributed by self-developed games increased from approximately 41.9% for the year ended 31 December 2013 to approximately 53.3% for the year ended 31 December 2014, whereas the percentage of our revenue generated from third party developed games decreased from approximately 58.1% to 46.7% during the same periods. We expect the percentage of our revenue contributed by our self-developed games will increase in the first half of

3 For the two years ended 31 December 2014, we had recorded approximately 4.1 million and approximately 5.2 million cumulative registered game players for our games, respectively. Revenue generated from our online games and mobile games was approximately HK$56.5 million and HK$61.9 million for the two years ended 31 December We currently have two mobile social casino games, four new casino game types and several additional language versions for our Full House Casino platform, and two new mobile RPGs in our game pipeline, which are expected to be launched by the end of These new mobile games offer different themes and gaming experiences to attract various types of game players. For details of our mobile games in our game pipeline, please refer to the paragraph headed Game pipeline under this section. OUR COMPETITIVE STRENGTHS We believe that the following strengths provide us with competitive advantages and differentiate us from our competitors: Leading online social casino game platforms in Asia We are a leading online social casino game developer and operator in Asia focusing on mobile games. According to the MarketDigits Report, we were ranked as the No.1 online Texas Hold em game company and the No.5 online card and board game company in Korea in terms of revenue for the year ended 31 December Further, according to the MarketDigits Report, within the category of mobile casino games in Google Inc. s Google Play, our Full House Casino was ranked as the No.1 game in Hong Kong, the No.3 game in Singapore, the No.4 game in Malaysia, and the No.7 game in Taiwan in terms of revenue in March Our flagship casino game platforms, Fulpot Poker and Full House Casino, offer nine types of long life-span classic casino games including Baccarat, Blackjack, Sic Bo, Texas Hold em, Omaha, Open Face Chinese Poker, Seven-Card Stud Hi/Lo, Badugi and various Slot Machines. Our games have several distinguished features to differentiate us from other competing social poker and social casino games. The key features of our game platforms include: (a) (b) Multiple access points supported by universal user IDs Our game players can enter our online and mobile social casino games from multiple access points, including our websites at m.fulpotpoker.com and Mplusfun, and a number of mobile game distribution platforms such as Google Play and App Store. After a game player has registered an account with us, he can then use the same user ID to play substantially all of our online and mobile social casino games on multiple PCs and mobile devices. Multi-table functions with different varieties of poker games Fulpot Poker has a multi-table function which allows our game players to participate in up to 12 tables with different games being played simultaneously. Our Fulpot Poker platform allows our game players seven varieties of poker games including Texas Hold em, Omaha, Open Face Chinese Poker, Seven-Card Stud, Seven-Card Stud 132

4 Hi/Lo, Badugi and Tournament. We believe such distinguished and unrivaled multi-table function with different varieties of poker games can accommodate both enthusiastic casual poker players and professional poker players. (c) (d) Social interaction functions in-built within our games Our online and mobile social casino games contain social interaction functions such as animated emotions, chatting, messaging, gift sending and friend invitation while playing Fulpot Poker and Full House Casino. Such functions also allow our game players to expand their social networks through our social casino games. Effective monetisation and diverse payment channels Our domestic Korean game players of Fulpot Poker purchase avatars when playing Fulpot Poker. On the other hand, our international game players, depending on the mobile device they use when playing Fulpot Poker and Full House Casino, purchase game chips through Google Wallet or Apple Pay when playing Fulpot Poker and Full House Casino. For webgames which are published on Mplusfun, our game players can purchase M-Coins using a variety of payment channels. For all of our mobile games, our game players can purchase chips or additional items through Google Wallet or Apple Pay. All virtual items, whether avatars, game chips or M-Coins, cannot be exchanged for real money. Reaching global game players with effective marketing strategies We have developed a multi-channel marketing strategy to reach our target potential game players, with a strong focus on attracting enthusiastic casual social casino game players and professional poker players. Apart from leveraging on the large game player base of our own websites, we also publish our games on other leading online social network platforms such as Facebook and leading mobile download platforms such as Google Play and App Store to enhance the popularity of our games and to expand our brand recognition. We have received positive customer feedback and high rankings for some of our games on such third party distribution platforms, which have helped us attract new game players. Further, we utilise Facebook Ad Manager and Google Adwords to advertise our games. Through leveraging on the large user base of Facebook and Google Adwords, we believe we are able to achieve significant growth for our online games and mobile games and enhance the popularity of our games. We also cooperate with more than ten other online promotional networks including advertising networks, information distribution and offerwalls to further promote our games. To encourage player stickiness and promote our games, we have implemented a social referral system on our Fulpot Poker and Full House Casino platforms. Highly active game players of Fulpot Poker are selected as referrers and could enjoy referral bonus in the form of virtual items calculated based on percentages of the avatars or game chips which the newly referred players have won. Further, our existing game players of Full House Casino can send invitations to play Full House Casino to their Facebook friends, who could then connect directly to our Full House Casino platform by clicking on the notification entries. We believe our social referral systems enhance interaction and competition among our game players. 133

5 In addition to our online marketing strategy, we have formed our Fulpot Poker Team Pro, which consists of four celebrity poker players and we believe that they will help improve the brand value of Fulpot Poker. Our Fulpot Poker Team Pro currently consists of former well-known Korean professional gamers Mr. Lim Yohwan (also known as BoxeR), Mr. Byun Eun-jong, Korean professional poker player Mr. Kim Soo-jo and Taiwanese professional poker player Mr. Fan Yun-Hsiang (also known as Terry Fan). We believe that the presence of such celebrities in our Fulpot Poker Team Pro will attract new players to our Fulpot Poker platform. For example, Mr. Lim Yohwan utilises his existing fan base to make live streaming video broadcasts on the Korea s biggest online video stream platform, Afreeca TV, with an accumulated number of viewers of over 690,000 as of the Latest Practicable Date. Further, members of our Fulpot Poker Team Pro frequently visit offline tournaments in Macau, the Philippines and other venues to promote Fulpot Poker to the public. We believe our integration of online social poker games with large scale offline tournaments differentiates us from our competitors. We have integrated online social poker games with officially organised, large scale combined online and offline tournaments. For example, in 2014, we successfully organised online qualifying tournaments of Fulpot Poker for offline tournaments, which includes World Poker Tour, Asian Poker Tour and Macau Poker Cup. In the run-up to the Asian Poker Tour main event, we held qualifying tournaments through the PC-downloaded, web and mobile versions of Fulpot Poker, followed by our sponsoring of the winners of the online qualifying tournaments to participate in the offline poker tournaments. We plan to continue to host major combined online and offline tournaments in the future. We believe that through organising such events, we will be able to further strengthen our reputation and attract more professional poker players to our Fulpot Poker platform. We also plan to expand the geographic reach of our combined online and offline events and increase the number of game categories in our combined online and offline competitions. We believe that our combined online and offline events are effective and economical ways to channel offline casino game players to our Fulpot Poker platform. With the widespread internet access and smart mobile devices, offline casino game players who are already familiar with the relevant rules can quickly start playing our online games and mobile games once they are made aware of our brand and Fulpot Poker platform. Abundant game experience which allows us to provide game player-oriented services Since our establishment in 2010, we have been committed to creating a player-focused game environment to offer our game players a user-friendly and seamless game experience. Further, we take pride in our abilities to react to and accommodate feedback from our game players. Based on feedback from our game players, we are constantly improving our games to include more attractive features. For example, we have developed online games and mobile games that provide appealing game designs, settings and functions that are presented in user-friendly interfaces. To make our games more challenging, we have developed in-game milestones for our game players to accomplish in order to increase their levels of satisfaction. Both Fulpot Poker and Full House Casino have integrated real-time communication families and friend invitation functions within the games, which we believe make the game 134

6 experience of both social casino games more interactive, and allows us to maximise the reach of our games through our existing game players social networks. To fully utilise such social networks, we allow our game players to easily share their game experience, results and awards with their families and friends on popular social media such as Facebook, Twitter and Weibo through a one-click service. We continuously enhance our online games and mobile games through our sophisticated data analytics in order to improve our game players experience. We collect and analyse an extensive range of data from our game players on a daily, monthly and yearly basis using our self-developed back-office technologies. Through such analysis of different aspects of our game players in-game behaviour, such as the frequency of using specific game functions, reception to localised game settings and promotional activities, general feedback and paying patterns, we constantly launch upgrades to enhance the features of our games. We believe such analysis encourages more game players to become paying game players and increase sales of virtual items or virtual currencies. In addition, our social referral system and dedicated customer service further ensure a unique and enjoyable game playing experience by providing a reliable and stable game environment. Streamlined operations with integrated in-house development and publishing platform Our international version of Fulpot Poker and Full House Casino are published exclusively by Memoriki (HK), our operating wholly-owned subsidiary in Hong Kong. With our operational presence in both Korea and Hong Kong, our Company is responsible for preparing and publishing the domestic version of Fulpot Poker in Korea, whereas Memoriki (HK) is responsible for preparing and publishing the global version of Fulpot Poker and Full House Casino outside Korea. Our game localisation capability to keep up with our regional game players preferences, which helped us to attract a significant number of new players across different regions. Maintaining proprietary development and publishing capabilities provides flexibility when it comes to upgrading and improving our webgames and mobile games. We are able to offer better localisation of our webgames and mobile games to the various markets in which we operate. Our ability to internally publish our self-developed games through our existing game player base of webgames and mobile games on Mplusfun also allows us to efficiently and effectively publish games for a broader game player base and to benefit from cost saving. Through Mplusfun, which has approximately 3.9 million registered game players in Hong Kong, Taiwan and Malaysia as of 31 March 2015, we have accumulated a combined portfolio of 77 webgames and mobile games, including both our self-developed games and third party developed games published by Memoriki (HK). In addition to our flagship social casino games, our game portfolio includes RPGs, strategy games and action games, giving our game portfolio diversity. Through our gaming website at and Mplusfun, and through third party distribution platforms such as Facebook, Google Play and App Store, we offer a variety of games, including Fulpot Poker, Full House Casino, DD Tank, Gong Cheng Lue Di, Tian Kong Zhi Cheng (also known as Xing Qu), Wo Long Yin and Wonderland Online. 135

7 We believe that our track record of developing and publishing successful webgames and mobile games puts us at an advantage compared to our competitors. To maintain and enhance the position of Mplusfun, we constantly seek new game developers to provide webgames and mobile games for us to publish. We closely analyse market and industry trends in search of the latest and most popular games. We expect to publish at least seven mobile and 15 webgames games during Experienced and professional management teams Our management team has accumulated extensive operational experience and we believe that it has created a corporate culture which encourages innovation. Mr. Son Changwook, being the chairman of our Board, our chief executive officer and our executive Director, has over 14 years of experience in the online game industry. Mr. Lau Ho Ming, being our vice president and our executive Director, has over 15 years of experience in the information technology industry. Mr. Bae Sujin, being our chief operating officer and our executive Director, has over 13 years of experience in the online game industry. Mr. Choi Kyusung, being our chief technology officer and our executive Director, has over 13 years of experience in the online game industry, mainly in online casino games. Mr. Kim Seyoung, being our chief product officer and our executive Director, has over 10 years of experience in website and game planning. Please refer to the section headed Directors and Senior Management of this document for the biographical details of our management team. Our management team has created a passionate environment which encourages members of our team to challenge themselves to reach their full potential. We believe that such a corporate culture helps us to motivate our staff to drive our continuous growth. Diversified game portfolio through investments in game development studios We have invested in certain game development companies as joint ventures, which are constantly developing new mobile 3D RPGs. Such investments were characterised by the injection of small amounts of funds in return for large equity interests. Examples of such investments are Purplecat and Iplay. Please refer to the section headed History, Development and Reorganisation of this document for details of such joint ventures. Through such joint ventures, we are able to continuously expand and diversify our mobile game portfolio to include genres which are not within the mobile social casino game category, such as mobile 3D RPGs. Through such arrangements with game development studios, we benefit from: (a) securing exclusive publishing rights for new mobile games developed by such joint ventures; (b) expanding our sources of revenue and broadening our game portfolio to non-social casino game categories; and (c) focusing our resources on our social casino game platforms. With such benefits, we are able to grow our publishing business. We plan to publish two new mobile 3D RPGs known as Battle Cube and Heroes Inc., which are developed by our joint ventures in

8 OUR STRATEGIES Our goal is to become the best global brand for online and mobile social casino games. We plan to achieve our goal by pursuing the following principal strategies: Further strengthen and optimise mobile social casino game portfolio According to the MarketDigits Report, the revenue of the Korean mobile game market increased from approximately US$0.4 billion in 2011 to approximately US$1.2 billion in 2014 representing a growth at a CAGR of approximately 44% from 2011 to 2014, and is expected to further increase to approximately US$1.7 billion in 2018, representing a growth at a CAGR of approximately 9.2% from 2015 to We hope to take advantage of this market trend and expand our mobile social casino game portfolio. We plan to allocate significant resources and management focus to the development and the expansion of our mobile social casino game portfolio. We believe that over the next several years mobile social casino games will be a major source of revenue and contributor for the growth of our Company. As of the Latest Practicable Date, we had around 30 experienced game developers in our game development division. We plan to further invest in our mobile game development capabilities by continuing to recruit high quality developers, while retaining our current employees. We plan to substantially increase the number of our mobile social casino game varieties in the near future, such as Pineapple Open Face Chinese Poker, Video Poker, Roulette and Bingo. These include new mobile social casino games, additional games within our existing Full House Casino platform and additional language versions of our games. Please refer to the paragraph headed Game pipeline under this section. Strengthen local market penetration and further expand global presence We plan to strengthen our local marketing penetration to solidify the leading position in Korea, Hong Kong, Taiwan, Malaysia and Singapore of our social casino games. Besides continued promotion aimed at our existing game players and promotion campaigns to attract new game players using global advertising networks such as Facebook Business Manager and Google Adwords we have also started promoting our social casino games using local advertising networks and marketing partners in Hong Kong, Taiwan, Malaysia and Singapore with the aim of expanding our game player base to local game players with different interests and backgrounds. We hope to further promote our social casino games using existing game players social networks such as his or her Facebook social graph, to spread our games virally. As we reach out to new game players, we can further analyse the efficiency and effectiveness of our previous marketing campaigns to improve and optimise future promotion campaigns aimed at more targeted game players in a cost effective manner. 137

9 We intend to leverage this multi-tier distribution network to further expand our global presence and broaden our geographic penetration. We will continue to strengthen our relationship with major third party game distribution platforms, including Facebook, Google Play and App Store, to expand the reach of our games into new countries and regions. We aim to attract online and mobile social casino game players to Fulpot Poker and Full House Casino in the PRC, South East Asia (including Thailand, Indonesia and Vietnam) and North America during We also aim to attract game players in Europe and Australia. We believe that we can achieve such goals by the end of We will incubate game development teams in Korea to provide a steady pipeline of good quality casino games which we can add to our existing online and mobile social casino platform in order to further enhance Full House Casino, and our publishing arm will continue to adapt such additional games into mobile versions. Through different types of marketing events and mobile applications, we hope to introduce the mobile versions of Fulpot Poker and Full House Casino to our existing web game players of both games. In order to better understand and cater to the different gaming preferences of our game players in the new markets, we intend to utilise local referrors to attract local game players in such markets to play our international version of Fulpot Poker and Full House Casino. Because we internally develop our online social casino games ourselves, we are capable of supporting a multi-language and multi-platform strategy for our online and mobile social casino games. Once we identify potential new markets for our online games and mobile games based on, we quickly devote resources to localise our games into the language and platform suitable for such markets. We intend to capitalise on our ability to localise our online social casino games to enhance our game development capabilities. Expand combined online to offline marketing to further promote our games We plan to continue to further increase the profile and scale of our combined online and offline events with the success of Asian Poker Tour and Macau Poker Cup. We plan to continue to host online qualifying tournaments, and in particular events with Fulpot Poker Team Pro s live streaming video broadcasts, through the PC-downloaded, web and mobile versions of our Fulpot Poker platform. The winners of the online qualifying tournaments will be qualified/entitled to sponsorship to participate in the offline poker tournaments. Through hosting such online qualifying tournaments, we plan to market Fulpot Poker and increase awareness of Fulpot Poker to potential game players. We believe this will lead to an increase in game players, which will ultimately lead to an increase in revenue generated from Fulpot Poker. Further, we have been actively involved in the establishment of the Korea Poker Association, which is the first poker association in Korea. We were the first corporate chairperson of the Korea Poker Association and as such it is expected we will play a major role in the promotion of poker as a skill game and mind sports in Korea. We believe we could benefit from the increased awareness of poker in Korea, and thereby attracting more game players to play Fulpot Poker. We believe that through organising such events, we will be able to further strengthen our reputation and attract more potential game players, including professional poker player to our Fulpot Poker platform. 138

10 Invest in mobile game technology enhancement to raise our competitive edge We will continue to devote considerable resources to recruiting and training high quality developers. We plan to recruit and retain more developers with rich experience and skills for mobile game development. We also plan to invest in developing technologies which have demonstrated potential of further facilitating our game development capabilities. For example, we will continue to develop, upgrade and optimise our game engines-unity 2D, 3D Engine so as to create more easy-to-use software tools tailored to cater for the special needs of our game development process. We also plan to design more innovative common modules to streamline our mobile game development process. We target to centralise the boilerplate and repetitive processes involved in the game development process in order to allow the different development teams to can focus more on overall conception and design of each of our mobile games. We also plan to invest in developing technologies which have demonstrated potential of further improving the game playing experience of our game players. We will continuously enhance our multi-platform synchronisation, which will enable our players to play our games beyond the current boundaries among PC-downloaded, web and mobile versions of games and further enhance the cross-platform game experience which is available to our game players anytime and anywhere. We also plan to improve our current data analysis system and standardised database structure system to cover all our PC-downloaded, web and mobile versions of games. We expect that with the enhanced data analysis system, we will be able to better analyse the factors that drive our game players willingness to pay to play our online games and mobile games, and as a result we will be able to formulate more effective marketing strategies and incentives for different target groups of game players to achieve consumption stimulation. Selectively pursue strategic acquisitions to strengthen our competitive position Currently, there are a substantial number of independent social casino game developers in many countries, including Korea, the PRC and United States. Some of these developers have strong local know-how on the development of regional social casino games. We may explore opportunities to invest in or acquire some independent developers who would strengthen or complement our existing game portfolio and market reach. We believe that pursuing such opportunities will help us sustain our competitive edge and enhance our reputation in the global social casino game industry. As of the Latest Practicable Date, we had not identified any specific suitable target for acquisition. 139

11 OUR GAMES As of the Latest Practicable Date, we offer an extensive portfolio of 77 online games and mobile games under two operation models, namely self-developed games and third party developed games. Descriptions of our most popular games are provided below. Such games are either self-developed games and third party developed games. Our target markets include Korea, Hong Kong, Taiwan, Malaysia and Singapore. Korea was our key market during the Track Record Period. Our operations in Korea and Taiwan are subject to a number of laws, rules and regulations, details of which are set out under the paragraph headed Licences and approvals under this section and the section headed Regulations of this document. The following table sets out a breakdown of our revenue by game operation models during the Track Record Period: For the year ended 31 December HK$ 000 % HK$ 000 % Self-developed games Fulpot Poker 23, , Others Third party developed games 32, , Total 56, , We offer our games in two main forms, online games and mobile games. Our online games include PC-downloaded games and webgames. Our online games accounted for over 90.0% of our total revenue during the Track Record Period, mainly attributable to the PC-downloaded and web versions of Fulpot Poker and webgames published through Mplusfun. As of the Latest Practicable Date, we had 73 third party developed webgames published on Mplusfun. In February 2015, we have launched an integrated mobile social casino game platform, Full House Casino, to expand our social casino game portfolio, and our Directors expect the revenue contributed by our mobile games will experience an increase going forward. 140

12 Self-developed games As of the Latest Practicable Date, four of the online games and mobile games we offered were self-developed games. We have set our strategic focus on social casino games. We are the exclusive publisher for our self-developed games. During the Track Record Period, the percentage of our revenue generated from self-developed games increased from approximately 41.9% to 53.3% as we increasingly prioritised promotion of our self-developed games. During the Track Record Period, Fulpot Poker, being our flagship social poker game launched in September 2010, contributed substantially to our revenue generated from our self-developed games. Full House Casino, being our flagship social casino games launched in February 2015, is expected to contribute to a considerable proportion of our revenue in the near future with its growing popularity, leading to an increase in the revenue contribution by our self-developed games going forward. Fulpot Poker, Full House Casino and Save the Planet are available through our own websites and third party distribution platforms. Fulpot Poker offers seven varieties of poker games, whereas Full House Casino offers an extensive range of popular casino games. We are in the process of developing new games and new language versions for our Full House Casino platform. Apart from Fulpot Poker and Full House Casino, we also developed a casual hero shooting game known as Save the Planet in November 2013, and a casual puzzle game known as Push Cat in February Save the Planet and Push Cat, both of which are mobile games, are available through third party distribution platforms. Descriptions of our major popular self-developed games are provided below. Fulpot Poker Fulpot Poker was first launched in September As of the Latest Practicable Date, Fulpot Poker offers seven varieties of long life-span poker games, including Texas Hold em, Omaha, Open Face Chinese Poker, Seven-Card Stud, Seven-Card Stud Hi/Lo, Badugi and Tournament Poker. With its distinguished features, Fulpot Poker is well-positioned to accommodate enthusiastic casual poker players and professional poker players. Apart from its casino multi-table function which allows our game players to participate in up to 12 different tables simultaneously with different games being played, Fulpot Poker also offers a social interaction function whereby highly active game players are selected as referrers and could enjoy referral bonus in the form of virtual items calculated based on percentages of the avatars or game chips which the newly referred players have won. 141

13 Such distinguished functions are the result of our in-house development studio s innovation and technical superiority. Such functions not only enhance our game players enjoyment of Fulpot Poker, but also potentially raises the ARPMAU. Currently, Fulpot Poker is available in PC-downloaded, web and mobile versions and in four languages, namely Korean, traditional and simplified Chinese and English, through our three websites at m.fulpotpoker.com, as well as third party distribution platforms including Facebook and App Store. Initially, Fulpot Poker was launched in Korea only under our website at offering the PC-downloaded version of Fulpot Poker in Korean. With a view to attract players outside Korea and capture revenue from these international players, we launched two additional websites at and m.fulpotpoker.com offering the PC-downloaded and mobile versions of Fulpot Poker in traditional and simplified Chinese and English. According to the MarketDigits Report, as a result of the popularity of Fulpot Poker, we were ranked as the No.1 online Texas Hold em game company and the No.5 online card and board game company in Korea in terms of revenue for the year ended 31 December The revenue generated from Fulpot Poker increased from approximately HK$23.3 million to approximately HK$32.0 million, and from approximately 41.3% to approximately 51.7% of our revenue from the year ended 31 December 2013 to the year ended 31 December The payer conversion rate of Fulpot Poker increased from approximately 8.1% in 2013 to approximately 27.0% in As of 31 March 2015, we had recorded approximately 716,450 accumulated registered game players who had played Fulpot Poker. We achieved a seven-day retention rate of approximately 75% and high ARPPU of HK$950.0 in In the first three months of 2015, the average MAU of Fulpot Poker was approximately 13,570. Full House Casino Full House Casino is an integrated mobile social casino game platform which was initially launched as a beta version in August 2014 and was launched in February Full House Casino offers a comprehensive range of traditional casino games including Baccarat, Blackjack, Sic Bo, Texas Hold em and various Slot Machines. Currently Full 142

14 House Casino is available in mobile and web versions in two languages, including traditional Chinese and English through our official website as well as third party distribution platforms including Facebook, Google Play and App Store. Each game in Full House Casino has multi-player functions which allow up to 12 game players to participate in a single casino game. Full House Casino also features enhancing functions such as dice controller in the Sic Bo game, winning streak jackpot system and general social point ranking system. Further incentives are given to our game players in both short and long term goals such as weekly rankings and special in-game events. According to the MarketDigits Report, as a result of the popularity of Full House Casino, within the category of mobile casino games in Google Inc. s Google Play, our Full House Casino was ranked as the No.1 game in Hong Kong, the No.3 game in Singapore, the No.4 game in Malaysia, and the No.7 game in Taiwan in terms of revenue in March As of 31 March 2015, we had recorded approximately 453,580 registered game players of Full House Casino in our main target markets including Hong Kong, Taiwan, Malaysia and Singapore according to Google Play and App Store s registered information. Since its official launch and up to 31 March 2015, the payer conversion rate was approximately 2.7%, and the average MAU was approximately 142,250. Save the Planet Save the Planet is a mobile hero shooting game launched in October The game was developed by our Korean-based development studio and our game players can select three characters to use at the same time. Currently, Save the Planet is available in mobile version in Korean through App Store and Google Play. For the two years ended 31 December 2014, our revenue generated from Save the Planet amounted to approximately HK$0.3 million and HK$0.7 million, respectively, representing approximately 0.5% and 1.1% of our total revenue, respectively. As of 31 March 2015, we had recorded approximately 843,130 download numbers. According to App Annie, an independent third party provider of mobile application statistics, Save the Planet was ranked as the No.4 in Korea as of 31 March 2015 in terms of Korean Google Play 143

15 online game download market share. In 2014, the ARPPU of Save the Planet was approximately HK$270. In the three months ended 31 March 2015, the average MAU of Save the Planet was approximately 9,240. Third party developed games As of the Latest Practicable Date, we published 73 third party developed games, including 66 webgames and seven mobile games developed by third parties through Mplusfun and third party distribution platforms. During the Track Record Period, the percentage of our revenue generated from third party developed games decreased from approximately from 58.1% to 46.7% as we increasingly prioritised promotion of our self-developed games. Our third party developed games include strategy, RPG and actions games, which complement our self-developed social casino game portfolio. We do not publish social casino games developed by third party developers as these games may compete for players with our self-developed social casino games. During the Track Record Period, DD Tank, Gong Cheng Lue Di, Tian Kong Zhi Cheng and Wo Long Yin were our most popular third parties developed games in terms of revenue. We share our revenue generated from our third party developed games with the game licence holders or game developer based on the revenue sharing percentages as stipulated in the publishing agreements. During the Track Record Period, our revenue derived from third party developed games was recognised net of the portion of revenue shared with game licence holders and game developer. For details of the salient terms of the publishing agreements, please refer to the section headed Suppliers under this section. Details of our major popular third party developed games are provided below. DD Tank DD Tank is a leisure shooting turn-based game launched in November Since its launch, we have started to co-publish DD Tank pursuant to the publishing arrangement entered into with the game licence holder of DD Tank, namely Game Dreamer. DD Tank is available in web version through Mplusfun and Facebook. For the two years ended 31 December 2014, our revenue generated from DD Tank amounted to approximately HK$15.2 million and HK$7.1 million, respectively, representing approximately 26.9% and 11.5% of our total revenue, respectively. Pursuant to the terms of our publishing agreement with Game Dreamer, we have the right to publish DD Tank in Hong Kong, Macau and Taiwan for an initial term of one year, subject to an automatic renewal of a further one year unless terminated by either party. As co-publisher, we are entitled to 50% of the net billings generated from DD Tank, after deducting the fees paid to the game developer, payment channels and distribution platforms. We are responsible for the sales and marketing as well as 144

16 customer service of DD Tank. With our long-term cooperation relationship with Game Dreamer, we do not foresee any major obstacles in the renewal of such publishing agreement. As of 31 March 2015, we had recorded approximately 2,350,740 registered game players in our authorised publishing regions since we have started to co-publish DD Tank. Our payer conversion rate of DD Tank were approximately 3.7% and 2.6% in 2013 and 2014, respectively. In 2014, the ARPPU of DD Tank was approximately HK$ In the three months ended 31 March 2015, the average MAU of DD Tank was approximately 19,850. Gong Cheng Lue Di Gong Cheng Lue Di is a stimulation strategy game which is based on the Three Kingdoms storyline and was launched in August Since its launch, we have started to co-publish Gong Cheng Lue Di pursuant to the publishing arrangement entered into with the game licence holder of Gong Cheng Lue Di, namely Cube Magic Inc. Gong Cheng Lue Di is available in web version through Mplusfun and on Facebook. For the two years ended 31 December 2014, our revenue generated from Gong Cheng Lue Di amounted to approximately HK$1.9 million and HK$7.6 million, respectively, representing approximately 3.4% and 12.3% of our total revenue, respectively. Pursuant to the terms of our publishing agreement with Cube Magic Inc., we have the right to publish Gong Cheng Lue Di in Hong Kong, Macau and Taiwan for an initial term of one year, subject to an automatic renewal of a further one year unless terminated by either party. As co-publisher, we are entitled to 50% to 55% of the gross monthly billings generated from Gong Cheng Lue Di depending on the amount of gross monthly billings. We are responsible for the sales and marketing as well as customer service of Gong Cheng Lue Di. With our long-term cooperation relationship with Cube Magic Inc., we do not foresee any major obstacles in the renewal of such publishing agreement. As of 31 March 2015, we had recorded approximately 86,690 accumulated registered game players in our authorised publishing regions since we have started to co-publish Gong Cheng Lue Di. The payer conversion rate of Gong Cheng Lue Di were approximately 5.9% and 11.7% in 2013 and 2014, respectively. In 2014, the ARPPU of Gong Cheng Lue Di was approximately HK$1, In the three months ended 31 March 2015, the average MAU of Gong Cheng Lue Di was approximately 3,

17 Tian Kong Zhi Cheng (also known as Xing Qu ) Tian Kong Zhi Cheng is turn-base RPG with western mythology as storyline launched in April Since its launch, we have started to co-publish Tian Kong Zhi Cheng pursuant to the publishing arrangement entered into with the game licence holder of Tian Kong Zhi Cheng, namely Game Dreamer. Tian Kong Zhi Cheng is available in web version through Mplusfun and Facebook. For the two years ended 31 December 2014, our revenue generated from Tian Kong Zhi Cheng amounted to approximately HK$5.8 million and HK$2.1 million, respectively, representing approximately 10.3% and 3.4% of our total revenue, respectively. Pursuant to the terms of our publishing agreement with Game Dreamer, we have the right to publish Tian Kong Zhi Cheng in Hong Kong, Macau and Taiwan for an initial term of one year, subject to an automatic renewal of a further one year unless terminated by either party. As co-publisher, we are entitled to 50% of the net billings generated from Tian Kong Zhi Cheng, after deducting the fees paid to our payment channels and distribution platforms. We are responsible for the sales and marketing as well as customer service of Tian Kong Zhi Cheng. With our long-term cooperation relationship with Game Dreamer, we do not foresee any major obstacles in the renewal of such publishing agreement. As of 31 March 2015, we had recorded approximately 200,620 accumulated registered game players in our authorised publishing regions since we have started to co-publish Tian Kong Zhi Cheng. The payer conversion rate of Tian Kong Zhi Cheng were approximately 7.0% and 5.5% in 2013 and 2014, respectively. In 2014, the ARPPU of Tian Kong Zhi Cheng was approximately HK$1, In the three months ended 31 March 2015, the average MAU of Tian Kong Zhi Cheng was approximately 2,

18 Wo Long Yin Wo Long Yin is a stimulation strategy game based on the Three Kingdoms storyline and was launched in July Since its launch, we have started to co-publish Wo Lung Yin pursuant to the publishing arrangement entered into with the game licence holder of Wo Lung Yin, namely Game Dreamer. Wo Lung Yin is available in web version through Mplusfun and Facebook. For the two years ended 31 December 2014, our revenue generated from Wo Long Yin amounted to approximately HK$4.9 million and HK$1.2 million, respectively, representing approximately 8.7% and 1.9% of our total revenue, respectively. Pursuant to the terms of our publishing agreement with Game Dreamer, we have the right to publish Wo Long Yin in Hong Kong, Macau and Taiwan for an initial term of one year, subject to an automatic renewal of a further one year unless terminated by either party. As co-publisher, we are entitled to 50% of the net billings generated from Wo Long Yin, after deducting the fees paid to our payment channels and distribution platforms. We are responsible for the sales and marketing as well as customer service of Wo Long Yin. With our long-term cooperation relationship with Game Dreamer, we do not foresee any major obstacles in the renewal of such publishing agreement. As of 31 March 2015, we had recorded approximately 418,260 accumulated registered game players in our authorised publishing regions since we have started to co-publish Wo Lung Yin. The payer conversion rate of Wo Long Yin were approximately 4.5% and 3.0% in 2013 and 2014, respectively. In 2014, the ARPPU of Wo Long Yin was approximately HK$ In the three months ended 31 March 2015, the average MAU of Wo Long Yin was approximately 3,690. Wonderland Online Wonderland Online is a 2.5-dimensional multi-player online RPG and was released in July Since its launch, we have started to co-publish Wonderland Online pursuant to the publishing arrangement entered into with the game licence holder of Wonderland Online, namely Long Cheng Network Co., Ltd. Wonderland Online is available in web version through Mplusfun and Facebook. For the year ended 31 December 2014, our revenue generated from Wonderland Online amounted to approximately HK$2.2 million, representing approximately 3.6% of our total revenue. Pursuant to the terms of our publishing agreement with Long Cheng Network Co., Ltd, we have the right to publish Wonderland Online in Hong Kong, Macau and Taiwan for an initial term of one year, subject to an automatic renewal of a further one 147

19 year unless terminated by either party. As co-publisher, we are entitled to 60% of the gross monthly billings generated from Wonderland Online. We are responsible for the sales and marketing as well as customer service of Wonderland Online. We do not foresee any major obstacles in the renewal of such publishing agreement. As of 31 March 2015, we had recorded approximately 58,060 accumulated registered game players in our authorised publishing regions since we have started to co-publish Wonderland Online since the official launch. Our payer conversion rate of Wonderland Online (was approximately 4.5% as of 31 December In 2014, the ARPPU of Wonderland Online was approximately HK$1, In the three months ended 31 March 2015, the average MAU of Wonderland Online was approximately 6,290. GAME PIPELINE We have plans to expand our mobile game portfolio and game player base through the following development strategies. We plan to launch the following by the end of 2016: Development of new mobile social casino games Pineapple Open Face Chinese Poker Pineapple Open Face Chinese Poker is a new mobile card game which is based on a popular card game played in the PRC and Europe. Pineapple Open Face Chinese Poker is an independent game category and is not one of the game variety under our Fulpot Poker platform. We expect to launch Pineapple Open Face Chinese Poker in traditional and simplified Chinese and English in November Fulpot Casino Fulpot Casino is a mobile social casino game with more localised features and games to accommodate the game player tastes and preferences in the PRC. Fulpot Casino is an independent game category and is not one of the game variety under our Full House Casino platform. We expect to launch Fulpot Casino in simplified Chinese by the end of Development of new games within our Full House Casino platform Full House Bingo Full House Bingo is a casino number game based on a popular board game in Europe and North America and is expected to launch by the end of Full House Bingo will be available in the same languages as Full House Casino. 148

20 Full House Slots Full House Slots offer a variety of slot machine games to accommodate the game player tastes and preferences in North America, Europe and Australia. There are different slot games within Full House Slots, with each of them having a different theme and gameplay. Full House Slots will be available in the same languages as Full House Casino. We expect to launch seven new slots games in 2015 and ten new slots games in Full House Roulette Full House Roulette is a mobile wheel game expected to be launched in Besides poker games and slot machines, Full House Roulette supplements different existing varieties of our casino games. Full House Roulette will be available in the same languages as Full House Casino. Full House Video Poker Full House Video Poker is a mobile card game based on a popular Las Vegas style poker game is expected to be launched in Full House Video Poker will be available in the same languages as Full House Casino. Offer of additional language versions for our Full House Casino Platform Full House Casino We also plan to launch additional language versions to accommodate for our game players using Thai, Vietnamese and Malay by the end of 2015 and we will also localise to French, German, Italian and Spanish in Our aim is for Full House Casino to become the most popular mobile social casino platform globally. Offer of new mobile RPG developed by our joint ventures Battle Cube Battle Cube is a mobile 3D Board Battle RPG to be developed by Purplecat, being one of our joint ventures, which has agreed to grant us the exclusive publishing rights. We expect to launch Battle Cube globally by the end of 2015 in traditional and simplified Chinese and English. We will launch the beta version of Battle Cube in August Heroes Inc. Heroes Inc. is a mobile 3D strategy RPG to be developed by Iplay, being one of our joint ventures, which has agreed to grant us the exclusive publishing rights. We expect to launch Heroes Inc. as a global version by the end of 2015 in traditional and simplified Chinese and English. 149