Cde Entertainment Ltd.

The principal activities of the Company are the publishing, licensing, marketing, distribution and development of entertainment software, video games. The Company was incorporated on 19 April 2022, for the transaction that included Square Enix Limited divesting of its entire shareholding in Crystal Dynamics, Inc, Eidos Interactive Corporation and Eidos Creative Software Development (Shanghai) Co. Limited together with associated intellectual properties to Embracer Group AB, as at 26 August 2022. The public announcement of this transaction was made on 2 May 2022. The Company’s key financial and other performance indicators during the year were as follows: 2024 2023 $ $ Turnover 65,546,093 71,398,506 Gross income (loss) 8,614,072 (74,640,728) Net loss (32,683,960) (101,467,042) Turnover for the year mainly included sales of $2.3M (2023 – $48.4M) of video game content sales, $26.7M (2023 – 19.7M) in game development services (“co-development”) as part of the Company’s contract with Microsoft (2023 – $20M) and $35.3M (2023 – Nil) in intercompany royalties for released video games for which the Company owns the intellectual property. The significant decrease in video game content sales is primarily due to the fact that “catalog games” are now being sold by studios held by the group, with the Company receiving a royalty income. The Company invested $44.4M (2023 - $59.9M) in on-going game developments distributed by other studios. One of the reasons for the decrease in capital expenditures from the prior year is due to the restructuring announced by the Group during the year. The restructuring led to the cancellation of on-going projects and publishing contracts for a total impairment of $21.8M.