2026 Interim Results Announcement: BAIOO Family Interactive

BAIOO Family Interactive experienced a period of aggressive expansion during the first half of 2026, characterized by significant top-line growth alongside a transition into net losses. Revenue climbed 59.2% year-on-year to RMB 482.0 million, bolstered by the successful introduction of new titles such as Color the World and Reign of Nightfall, as well as a 41.7% increase in average quarterly active accounts. Despite this revenue momentum, the company recorded a net loss of RMB 23.9 million, a sharp reversal from the profit reported in the same period of 2025. This financial downturn was primarily driven by a 543.6% surge in selling and marketing expenses associated with new product launches and sustained investment in research and development.

The company’s strategic focus remains centered on long-term intellectual property sustainability and operational efficiency through the integration of artificial intelligence. To navigate evolving regulatory landscapes, BAIOO is actively shifting its revenue focus toward an adult user base while maintaining a commitment to minor protection and compliance. Financial stability remains a core strength, as the firm holds RMB 763.5 million in cash and cash equivalents with no bank loans or material contingent liabilities. An accounting revision regarding player relationship periods provided a modest buffer, reducing the net loss by RMB 26.7 million.

Shareholder returns and corporate governance remain active areas of management. While no interim dividend was declared for the first half of 2026, the company maintained a special dividend of HKD 0.012 per share and executed share repurchases totaling 10.59 million units. Although the firm adheres to most corporate governance standards, it continues to consolidate the roles of Chairman and CEO under Mr. DAI Jian. Moving forward, the company aims to balance its aggressive market acquisition strategy with the need for long-term profitability in an increasingly competitive industry environment.