THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS This glossary contains definitions of certain terms used in this document in connection with our Company and our business. Some of these may not correspond to standard industry definitions. ‘‘AAA title’’ an informal classification for high-quality games, typically developed by a professional team with large amount of time and investment and published by renowned publishers ‘‘ACG’’ a subculture of Greater China particularly referring to Japanese anime, comics and games, or the fictional world or characters created in such work ‘‘App Annie’’ a mobile data and analytics platform ‘‘ARPU’’ average revenue per month per monthly active account, which is calculated by dividing the revenue generated from a particular mobile game or all our mobile games, as applicable, for the respective period by the total MAUs of the particular mobile game or the aggregate of the total MAUs of all our mobile games, as applicable, for that period ‘‘beta testing’’ a form of pre-launch external player acceptance testing, which is usually accessible to a limited number of game players and used to obtain feedback regarding game quality ‘‘C++ language’’ a general-purpose programming language, as an extension of the C programming language ‘‘CAGR’’ compound annual growth rate ‘‘casual game’’ a genre of games that feature relatively simple but attractive gameplay presented in a minimalistic fashion ‘‘CCG’’ collectable card game, a genre of games that are played by using specially designed sets of playing cards, combining the appeal of collecting with strategic gameplay ‘‘client game’’ a category of PC games that need to be downloaded for playing ‘‘cloud gaming’’ also known as gaming on demand, a type of online gaming that runs games on remote servers and streams them directly to a game player’sdevice ‘‘CPC’’ cost per click, a pricing model where advertising is paid on the basis of each click of the advertisement ‘‘CPM’’ cost per mille, a pricing model where advertising is paid on the basis of thousand impressions – 33 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS ‘‘CPT’’ cost per time, a pricing model where advertising is paid on the basis of a fixed period of time ‘‘cumulative registered players’’ the cumulative number of accounts which have existed in any or all of our mobile games, as applicable, in the given period ‘‘free-to-play’’ a business model used in the game industry, under which game players can download and play without paying up-front cost ‘‘grand strategy wargame’’ a type of games that focus on grand strategy, containing various techniques and features to simulate military strategies ‘‘gross billing’’ the total amount paid by paying players for in-game purchases during a given period ‘‘IP’’ intellectual property ‘‘MAUs’’ the total number of accounts which access a particular game or any or all of our mobile games, as applicable, at least once during a given month. For a particular mobile game, average MAUs are calculated by dividing the total MAUs of the game for the period by the number of months within that period during which the game is in operation. For all of our mobile games, average MAUs are calculated by dividing the aggregate of the total MAUs of the games for the period by the number of months within the period during which any of the games is in operation ‘‘midcore to hardcore game’’ a game with relatively complex playing method and relatively developed storyline, including MMORPG, CCG and SLG, among others ‘‘MMORPG’’ massively multiplayer online role-playing game, a genre of games that combine role-playing games and massively multiplayer online games in which a large number of players interact with one another within a virtual world ‘‘MOBA’’ multiplayer online battle arena, a genre of games in which each game player controls a single character, usually from an isometric perspective on a map, as part of a team competing against another team of game players, with the ultimate goal to destroy the opposing team’s main structure – 34 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS ‘‘MPUs’’ the total number of accounts which contribute to gross billings for any or all of our mobile games, as applicable, at least once during a given month. For a particular mobile game, average MPUs are calculated by dividing the total MPUs of the game for the period by the number of months within that period during which the game is in operation. For all of our mobile games, average MPUs are calculated by dividing the aggregate of the total MPUs of the games for the period by the number of months within the period during which any of the games is in operation ‘‘physically based rendering’’ an approach in computer graphics that renders graphics in a way accurately modeling the flow of light in the real world ‘‘paying user, paying player’’ in any given period, the account which contributes to gross billings for a particular game, a particular game genre or any or all of our games, as applicable ‘‘QR code’’ a machine-readable code consisting of an array of black and white squares, typically used for storing URLs or other information for reading by the camera on a smartphone ‘‘real 3D’’ a game graphic which is computed in three-dimensional space with z-axis allowing game players to spin around with a 360- degree view in the game ‘‘regional version’’ a version of any of our mobile games which embraces one or more language(s) and is published through self-publishing or third-party publishing in one or more region(s) ‘‘SLG’’ simulation game, a genre of games that attempt to emulate various activities from real life in the game format ‘‘STG’’ shooting game, a genre of action games in which game players are engaged in combat with opponents by shooting and progress through the game by carrying out quests ‘‘turn-based’’ a gameplay that requires game players to take turns when playing ‘‘Unity 3D’’ a cross-platform 3D game engine developed by Unity Technologies ‘‘Unreal Engine 4’’ a game engine developed by Epic Games – 35 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS ‘‘virtual item’’ an item, avatar, skill, privilege or other in-game consumable, feature or functionality that game players use to extend their gameplay, enhance or personalize their game environments and accelerate their progress in our games ‘‘web game’’ a category of PC games that are played over the internet by using web browsers – 36 –.