BAIOO Family Interactive Limited reported a strong top-line expansion but moved into the red for the six months ended 30 June 2026, as aggressive promotion for new game launches drove expenses sharply higher.
Revenue and Margins – Group revenue jumped 59.2% year on year to RMB 482.02 million, propelled by two self-developed mobile titles: “Color the World,” which accounted for 21.6 % of total revenue, and “Aobi Island: Dreamland,” which contributed 22.9 %. – Gross profit nearly doubled to RMB 290.58 million, lifting the gross margin to 60.3% (H1 2025: 49.3%). – Average quarterly active accounts rose 41.7% to 10.2 million, while quarterly paying accounts grew 55.6% to 1.4 million; average revenue per payer slipped 1.7% to RMB 172.9.
Profitability – Operating result reversed to a loss of RMB 23.68 million from a RMB 4.05 million profit a year earlier. – Net loss reached RMB 23.89 million versus a RMB 5.65 million profit in H1 2025. – Adjusted net loss stood at RMB 23.52 million (H1 2025: profit of RMB 6.45 million); adjusted EBITDA was negative RMB 14.34 million (H1 2025: positive RMB 10.63 million). – Selling and marketing expenses surged 543.6% to RMB 166.72 million, reflecting launch campaigns for new titles. R&D spending increased 31.5% to RMB 115.95 million.
Balance Sheet and Liquidity – Total assets were broadly steady at RMB 1.76 billion; equity amounted to RMB 1.44 billion. – Cash, cash equivalents and deposits totaled RMB 1.06 billion, underpinning an 18% gearing ratio. – Capital expenditure reached RMB 12.48 million, while no bank borrowings were outstanding.
Shareholder Returns and Buy-backs – A special dividend of HK$0.012 per share (RMB 28.54 million) for FY 2025 was paid on 30 July 2026. – No interim dividend was declared for H1 2026. – Between 10 and 30 June 2026 BAIOO repurchased 10.59 million shares for HK$4.71 million, which are held as treasury shares.
Operational Highlights – “Color the World” (April 2026) and the female-oriented “Reign of Nightfall” (June 2026) broadened BAIOO’s niche-game portfolio and drew strong initial user interest—pre-registrations exceeded 10 million for the latter. – Legacy IPs “Aobi Island,” “Aola Star” and “Legend of Aoqi” continued to generate stable traffic and revenue. – AI tools have been embedded across R&D and operations to lift productivity, personalize gameplay and enhance customer service.
Outlook Management will maintain the “innovation + differentiation” strategy, deepen female- and IP-oriented genres, and accelerate overseas launches, starting with “Color the World” in Hong Kong, Macau and Taiwan. The company also plans further integration of AI to shorten development cycles and enrich user experience.
Regulatory and Compliance BAIOO reported continued alignment with China’s tightened regulations on minors, including real-name verification, play-time limits and spending caps, noting minimal revenue exposure to under-age users.
No material litigation or contingent liabilities were disclosed.