[Press Release]

CMON Limited
(Stock Code: 8278.HK)

CMON Announces 2018 Annual Results

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Gross Profit Margin Increased 4.3 Percentage Points Year On Year
Revenue from Wholesalers Surged 46.6% Year On Year

Results Highlights:
1. Revenue of the Group reached approximately US$28.2 million, representing
a slight decrease of approximately 5.4%. Gross profit margin was 52.5%, an
increase of 4.3 percentage points
2. Revenue of the Group from wholesalers was approximately US$12.2 million,
representing a surge of 46.6% as compared with US$8.3 for the
corresponding period in 2017.
3. Revenue from North America and Asia markets increased 38.7% and 33.4%
respectively when compared to the corresponding period in 2017,
representing the success of marketing in Asia

【Hong Kong, 22 March 2019】CMON Limited (“CMON” or the “Company”, and

together with its subsidiaries, the “Group”, stock code: 8278.HK), a hobby games
publisher specialising in developing and publishing mainly tabletop games (including
board games and miniature war games) is pleased to announce the annual results for
the year ended 31 December 2018 (the “Reporting Period”).

During the Reporting Period, revenue of the Group reached approximately US$28.2
million, representing a slight decrease of approximately 5.4% as compared with
approximately US$29.8 million for the corresponding period in 2017. The slight
decrease in revenue was mainly attributed to the decrease in revenue from board
games, but partially offset by the increase in revenue from miniature war games. Gross
profit reached approximately US$14.8 million, representing an increase of
approximately 2.9% as compared with approximately US$14.4 million for the
corresponding period in 2017. Gross profit margin increased 4.3 percentage points to
approximately 52.5% from 48.2% in the corresponding period in 2017, which was
primarily due to the decrease in cost of inventories.

Profit attributable to equity holders of the Company reached approximately US$2.1

million, compared with a profit of US$3.5 million for the corresponding period in 2017.
The decrease was mainly due to the increase in selling and distribution expenses and
the professional service fees in respect of the application regarding transfer of listing
of the shares of the Company from GEM to main board of the Stock Exchange of Hong
Kong Limited (“Proposed Transfer of Listing”). Without taking into account the
professional service fees in respect of the Proposed Transfer of Listing, profit
attributable to equity holders of the Company during the Reporting Period was US$3.0
million.

The Group sells its tabletop games mainly through Kickstarter and wholesalers. During
the Reporting Period, revenue of the Group from wholesalers was approximately
US$12.2 million, representing a surge of 46.6% as compared with US$8.3 for the
corresponding period in 2017. As at 31 December 2018, the Group offered a total of
83 games, comprising 78 board games, three miniature war games, one mobile game
and one computer game. Six of our board games, namely “Arcadia Quest: Riders”, “A
Song of Ice & Fire: Tabletop Miniatures Game”, “Cthulhu: Death May Die”, “HATE”,
“Zombicide: Invader” and “Starcadia Quest”, which successfully raised a total of
approximately US$10.2 million on Kickstarter were shipped during the Reporting
Period.

During the Reporting Period, the Group also launched two board games, namely
“Project: ELITE” and “Blood Rage Digital”, on Kickstarter, raising a total of
approximately US$1.4 million. The two new games are expected to be shipped in the
second half of 2019. The sum received shall be recognised as deferred revenue initially
and then as sales upon delivery of the products in future.

The Group will continue to strengthen its game development and marketing
capabilities in order to retainexisting players as well as to attract new players . During
the Reporting Period, game development costs rose 34.9% from US$675,967 for the
corresponding period in 2017 to US$911,523. In 2018, North America remained the
largest market for the Group, accounting for 76.7% of the total revenue and recorded
a 38.7% increase in revenue as compared to the corresponding period in 2017. In
addition, the Group has been actively exploring Asia market (especially China) and set
up a China office in October 2018 to enhance marketing. A 33.4% increase in revenue
from Asia market was recorded as compared to the corresponding period in 2017 and
it is expected that Asia market would become another important profit driver for the
Group.

The Group places heavy emphasis on attracting talent and has successfully hired
various award-winning creatives to enhance our game design capabilities significantly
in the past years. In addition, the Group continues to improve the efficiency of sales
and marketing through strengthening and expanding our management team.

Mr. Ng Chern Ann, Chief Executive Officer of CMON commented, “We strive to
become a leading developer and publisher of quality games in the hobby game
industry. We will continue to launch new games that attract and retain a significant
number of players so that we can grow our revenue base and sustain our competitive
position. The future development plan of the Group will be refocusing our marketing
efforts on our end users and the gamers, expanding into the largely untapped markets
of Asia, particularly China, and further strengthening our game design, licensing and
IP creation capabilities.

The Group will continue to work towards achieving long-term growth through product
diversification and channel diversification. In early 2019, the Group successfully
launched the first board game of the year, namely “Munchkin Dungeon”, raising
approximately US$700,000. The Group will continue to make breakthroughs in game
design and marketing to bring various game experiences for players.

The Company remains greatly confident of the future. The application for Proposed
Transfer of Listing has automatically lapsed as the process of the application has taken
more than six months since the submission of the application, the Company will make
a resubmission of the application to the Stock Exchange. The Group believes a main
board listing status will help the Group to enhance our profile, brand and product
awareness as well as strengthen our shareholders base and value of the Group. We
look to expand our geographical coverage with an aim to enhance our revenue, sustain
our competitive position and increase our market share.”

END

About CMON Limited

CMON Limited is an international publisher of tabletop games (including board games
and miniature war games) and mobile games. CMON has been dedicated to publishing
quality and various games including award-winning games such as Zombicide, Arcadia
Quest, Blood Rage and more. The Group's games are primarily sold through two sales
channels, direct sales through Kickstarter, its online store, or sales at games
conventions, and wholesalers based in various regions including North America,
Europe and Asia etc.

For more information about CMON, please visit: https://www.cmon.com/

The press release is distributed by Financial PR (Hong Kong) on behalf of CMON

Limited

For more information, please contact:

Financial PR (Hong Kong) Limited
Mr. Tommy Wu email: tommywu@financialpr.hk
Ms. Chloe Chiu email: chloechiu@financialpr.hk
Ms. Krystal Zhou email: krystalzhou@financialpr.hk
Tel: (852) 2610 0846
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