Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 302,706 thousand, representing an 11.2% increase compared to RMB 272,284 thousand in 2024[10] - Gross profit increased by 18.9% to RMB 149,172 thousand from RMB 125,490 thousand year-on-year[10] - Operating profit improved significantly to RMB 4,051 thousand from a loss of RMB 25,675 thousand, marking a 115.8% change[10] - Adjusted net profit for the period was RMB 6,446 thousand, a 166.0% increase from a loss of RMB 9,770 thousand in the previous year[10] - Total revenue for the six months ended June 30, 2025, was RMB 302,706,000, compared to RMB 272,284,000 for the same period in 2024, reflecting an increase of 11.2%[119] - Online entertainment business revenue was RMB 301.0 million, up 10.6% from RMB 272.1 million year-over-year[36] - Gross profit for the six months ended June 30, 2025, was RMB 149.2 million, with a gross margin of 49.3%, compared to RMB 125.5 million and a margin of 46.1% in the previous year[39] - Adjusted EBITDA for the six months ended June 30, 2025, was RMB 10.6 million, compared to an adjusted EBITDA loss of RMB 12.9 million in the previous year[35] - The net profit for the period was RMB 5.6 million, compared to a net loss of RMB 14.9 million in the prior year[80] Assets and Liabilities - The total assets as of June 30, 2025, were RMB 1,869,327 thousand, slightly down from RMB 1,875,051 thousand at the end of 2024[11] - Total liabilities as of June 30, 2025, were RMB 293.8 million, with a debt-to-asset ratio of 16%, up from 15% as of December 31, 2024[56] - Cash and cash equivalents as of June 30, 2025, amounted to RMB 550.3 million, an increase from RMB 495.7 million as of December 31, 2024[57] - The company’s equity attributable to shareholders decreased slightly to RMB 1,568,224,000 from RMB 1,591,745,000, indicating a minor decline in shareholder value[84] - The company reported a net increase in cash and cash equivalents of RMB 56,074,000 for the period, contrasting with a decrease of RMB 145,820,000 in the prior year[89] - The company’s total liabilities increased to RMB 293,769,000 from RMB 275,966,000, reflecting a rise in trade payables and other liabilities[85] Operational Strategy - The company continues to focus on IP-driven strategies, enhancing user engagement through innovative gameplay and content updates[12] - Collaborations with well-known IPs and brands have led to a significant increase in player engagement and revenue for core games[13] - The gaming industry is experiencing a recovery, driven by structural improvements and a growing demand for high-quality content[12] - The company aims to provide unique IP upgrade experiences for young users, positioning itself as a leader in the gaming culture brand for Generation Z[9] - The company plans to continue its user-centric strategy in the second half of 2025, focusing on innovation and differentiation to build a rich product matrix[15] - The company will increase R&D investment and integrate AI technologies throughout the game creation process to enhance innovation and operational efficiency[15] User Engagement and Market Trends - In the first half of 2025, the company will enhance user engagement through social media and live streaming platforms, aiming to boost game popularity[14] - The company focused on core game segments such as female-oriented and pet collection games, leveraging AI technology to enhance user experience[26] - The core mobile game "Aoki Legend" saw significant growth, with new character releases and themed events driving user engagement and revenue increase in the first half of 2025[27] - The gaming industry is experiencing a shift towards quality-focused competition, with companies exploring new gameplay and content to drive business growth[29] Financial Management and Governance - The company has no specific plans for significant investments or acquisitions at this time but will continue to seek new business development opportunities[66] - The company has maintained sufficient cash and cash equivalents to ensure operational flexibility[103] - The financial risk management policies have not changed since December 31, 2024[102] - The company adopted the revised International Financial Reporting Standards effective from January 1, 2025, with no significant impact on the financial statements[97] - The audit committee has reviewed the interim consolidated financial information for the six months ending June 30, 2025, confirming compliance with International Accounting Standard 34[163] - The company has adopted the corporate governance code as per the listing rules, ensuring high ethical standards and transparency in operations[165] Shareholder Information - The company declared a special dividend of HKD 0.012 per share for the year ending December 31, 2024, which was paid on July 31, 2025[70] - As of June 30, 2025, the total number of ordinary shares of the company is 2,867,174,000, unchanged from December 31, 2024[150] - TMF (Cayman) Ltd. holds 1,193,824,720 shares, representing 41.64% of the total issued share capital[173] - DAE Holding Investments Limited owns 687,944,180 shares, accounting for 23.99% of the total issued share capital[173] - The company has established multiple trusts for its key executives, including DAE Trust and WHZ Trust, managed by TMF (Cayman) Ltd.[175] Future Plans and Developments - The company aims to enhance its international presence by adapting its IP products to different regional markets and creating customized innovative products for overseas segments[30] - The company plans to launch two new card games, "Chaos Color World" and "Under the Night," which are currently in the late development stage and expected to provide innovative gameplay experiences[30] - The company is applying for the renewal of its "High-tech Enterprise" status, which allows for a preferential income tax rate of 15%[127]

Core Insights - The gaming industry in China has shown robust growth in the first half of 2025, with actual sales revenue reaching RMB 168 billion, a year-on-year increase of 14.08%, and the user base growing to 679 million, up 0.72% [1] - Baio Family Interactive (02100) has successfully turned around its performance in 2025, achieving a revenue of RMB 303 million, an 11.2% increase year-on-year, and a profit of approximately RMB 5.65 million, marking a significant recovery [2] - The company's classic IPs, such as "Aoqi Legend," "Obi Island," and "Aola Star," have demonstrated strong performance and long-term operational advantages, contributing to the overall revenue growth [2][3] Company Performance - Baio Family Interactive's revenue growth is attributed to its focus on core business and innovation, with a solid foundation from existing games and a pipeline of new products [2] - The company has increased its R&D investment to 29% of its revenue, indicating confidence in long-term product development and innovation [5] - The flagship mobile game "Obi Island: Dreamland" has seen a surge in monthly active users, driven by continuous content innovation and player engagement strategies [3][4] Product Development - The classic IP "Aoqi Legend" has maintained its appeal with both mobile and web versions showing year-on-year growth, supported by refined operations and innovative collaborations [3] - New products like "Chaos Color World" and "Night Under the Sky" are set to enhance the company's product matrix, targeting market gaps and new user demands [5] - The integration of traditional cultural elements into games, such as the collaboration with the intangible cultural heritage "Xiangyunsha," has enriched the cultural value of the games [4] Global Expansion - Baio Family Interactive is actively pursuing global market opportunities, leveraging its self-developed IPs and localized content to cater to diverse player needs across regions [6] - The company's strategy includes utilizing AIGC technology to improve R&D efficiency and reduce production costs, enhancing the quality of game content [6] - The combination of stable operations of classic games and the launch of new titles is expected to significantly boost revenue and long-term growth prospects [6]

Core Insights - The gaming industry in China has shown robust growth in the first half of 2025, with actual sales revenue reaching RMB 168 billion, a year-on-year increase of 14.08%, and the user base growing to 679 million, up 0.72% [1] - Baio Family Interactive (02100) has successfully turned around its performance in 2025, achieving a revenue of RMB 303 million, an 11.2% increase year-on-year, and a profit of approximately RMB 5.65 million, marking a return to profitability [2] - The company's classic IPs, such as "Aoqi Legend," "Obi Island," and "Aola Star," have demonstrated strong recovery and long-term operational advantages, contributing significantly to the company's performance [2][3] Company Performance - Baio Family Interactive's revenue growth is attributed to its focus on core business and innovation, with a solid foundation built on existing games and a pipeline of new products [2] - The company has increased its R&D investment to 29% of its revenue, indicating confidence in its long-term product strategy and innovation capabilities [5] - The flagship mobile game "Obi Island: Dreamland" has seen a surge in monthly active users, driven by continuous content innovation and player engagement strategies [3][4] Product Development - The classic IP "Aoqi Legend" has maintained its appeal with both mobile and web versions showing year-on-year growth, supported by refined operations and innovative collaborations [3] - New products like "Colorful World" and "Night Under" are set to enhance the company's product matrix, targeting market gaps and new user demands [5][6] - The integration of traditional cultural elements into games, such as the collaboration with the intangible cultural heritage "Xiangyunsha," has enriched the cultural value of the games [4] Global Expansion - Baio Family Interactive is actively pursuing global expansion, leveraging its self-developed IPs and localized content to cater to diverse player needs across various regions [6] - The company's strategy includes utilizing AIGC technology to improve R&D efficiency and reduce production costs, enhancing the quality of game content [6] - The combination of stable operations of classic games and the launch of new titles is expected to significantly boost revenue and long-term growth prospects for the company [6]

FF301 本月底法定/註冊股本總額： USD 50,000 第 1 頁 共 10 頁 v 1.1.1 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 百奧家庭互動有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02100 | 說明 | 百奧家庭互動 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 100,000,000,000 | USD | 0.0000005 | USD | | 50,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | ...

Core Insights - The company reported a revenue of 303 million RMB and a net profit of 5.65 million RMB for the first half of 2025, indicating a positive turnaround in profitability amidst a robust growth trend in the domestic gaming market [1][3] - The overall gaming market in China saw actual sales revenue reach 168 billion RMB in the first half of the year, with a year-on-year growth of 14.08%, marking a historical high [1] Company Performance - The improvement in the company's performance is attributed to its deep understanding of the vitality of game IPs and innovative operational logic [3] - The long-term operation capability of classic IPs has been a significant factor in the company's performance, with the "Aoqi Legend" IP generating 45.1% of its revenue in the first half of the year [5][6] Product Innovation and Community Engagement - The company has focused on content iteration and community engagement, enhancing user retention through new game versions and gameplay optimizations [6][8] - Collaborations with well-known IPs have increased community activity and brand value, demonstrating the effectiveness of innovative combinations of game IPs with popular culture [8] New Product Development and Global Strategy - The company is not solely reliant on existing IPs but is also investing in new game development and global expansion, with an R&D expenditure of approximately 90 million RMB in the first half of the year [15][16] - New products like "Mimimiha" and "Chaos Color World" are expected to attract younger audiences with their unique art styles and innovative gameplay [18][20] Long-term Growth Strategy - The company is building a sustainable growth framework through ecological long-term operations of old products, breakthroughs in new product categories, and customized global strategies [22]

Core Insights - The company reported a revenue of 303 million RMB and a net profit of 5.65 million RMB for the first half of 2025, marking a significant improvement and a turnaround in performance amidst a robust growth trend in the domestic gaming market [1][3] - The overall Chinese gaming market saw actual sales revenue reach 168 billion RMB in the first half of the year, with a year-on-year growth of 14.08%, highlighting the industry's strong recovery and innovation [1] Company Performance - The company's improved performance is attributed to its deep understanding of the longevity of game IPs and innovative operational strategies [3] - The classic IPs have shown resilience through long-term operations, with the "Aoqi Legend" IP generating 45.1% of revenue in the first half of the year, demonstrating effective content iteration and community engagement [5][7] - The "Aobi Island" IP has also shown strong performance, with continuous growth in mobile game revenue and high monthly active users, emphasizing the effectiveness of emotional value supply in female-oriented games [9] Innovation and New Products - The company is not solely reliant on existing IPs but is also focused on developing new games and expanding its global presence, which forms a solid foundation for sustainable growth [14] - The company invested approximately 90 million RMB in R&D in the first half of the year, with several new products expected to launch by the end of the year and into the next [15] - Newly launched games like "Mimimiha" have received positive initial market feedback, indicating potential appeal in gameplay and themes [15][17] Global Expansion - The company is deepening its global strategy by customizing premium products to tap into overseas markets, leveraging its core self-developed IPs [19] - Several products are in the research and testing phase for both domestic and international markets, which is expected to enhance overseas revenue growth and support product innovation through global market feedback [19] Conclusion - The company is building a development framework that supports short-term performance while ensuring long-term growth through ecological long-term operations of old products, breakthroughs in new product categories, and customized global strategies [19]

Financial Performance - The company reported a revenue of approximately 303 million yuan for the first half of 2025, representing a year-on-year increase of 11.2% [1] - Gross profit was about 149 million yuan, showing an 18.9% year-on-year growth [1] - Adjusted net profit reached 6.446 million yuan, marking a return to profitability compared to the previous year [1] - The overall profit for the period was 5.649 million yuan, also indicating a return to profitability year-on-year [1] Business Segments - Online entertainment business generated approximately 301 million yuan in revenue, up 10.6% year-on-year, driven by strong performance of existing games and continuous content updates [1] - Other business revenue was around 1.8 million yuan, a significant increase of 1,100% year-on-year, primarily due to sales of game-related products [1] Game Development and User Engagement - The company has made continuous breakthroughs in game content innovation and gameplay upgrades, enhancing user engagement through high-frequency cross-border collaborations and interactive gameplay [2] - The core mobile game "Aoki Legend" showed strong monetization, with new character releases and themed events boosting user retention [2] - The game "Aobi Island: Dreamland" focused on long-term user experience needs, achieving record high monthly active users through gameplay innovation and commercial model iterations [2] Cultural Integration - The company is exploring the cultural value of games by integrating traditional Chinese cultural elements, successfully linking traditional culture with younger audiences [3] - A collaborative event with the Foshan Intangible Cultural Heritage Protection Center showcased the ancient craft of Xiangyunsha, enhancing community reputation and driving revenue growth [3]

Group 1 - The company Baio Family Interactive (02100) reported a mid-year revenue of approximately 303 million yuan, representing a year-on-year increase of 11.2% [1] - Gross profit for the period was about 149 million yuan, showing a year-on-year growth of 18.9% [1] - Adjusted net profit reached 6.446 million yuan, marking a return to profitability compared to the previous year [1] Group 2 - The online entertainment business generated approximately 301 million yuan in revenue, an increase of 10.6% year-on-year, driven by strong performance of existing games and continuous content updates [1] - Other business revenue was around 1.8 million yuan, reflecting a significant increase of 1,100% year-on-year, primarily due to sales of game-related products [1] Group 3 - The company has been focusing on game content innovation and gameplay upgrades, enhancing user engagement through high-frequency cross-border collaborations and interactive gameplay [2] - The core mobile game "Aoqi Legend" has shown impressive monetization, with new character releases and themed events boosting user retention [2] - The game "Aobi Island: Dream Kingdom" has adapted to younger market aesthetics through innovative gameplay and commercialization, achieving record high monthly active users [2] Group 4 - Baio is exploring the cultural value of games by integrating traditional Chinese cultural elements, successfully linking cultural heritage with younger audiences [3] - A collaborative event with the Foshan Intangible Cultural Heritage Protection Center showcased traditional craftsmanship within the game, enhancing community reputation and driving revenue growth [3]

Core Viewpoint - The company reported a revenue increase of 11.2% year-on-year, driven by strong performance in existing games and the introduction of new content [1] Financial Performance - Revenue for the six months ending June 30, 2025, reached RMB 303 million, up from the previous year [1] - Gross profit was RMB 149 million, reflecting an 18.9% increase year-on-year [1] - Adjusted net profit stood at RMB 6.446 million, with adjusted EBITDA at RMB 10.632 million [1] Business Segments - Online entertainment revenue amounted to RMB 301 million, marking a 10.6% increase compared to the same period last year [1] - The company focused on core game segments such as female-oriented and pet collection games, enhancing user experience through AI and other advanced technologies [1] Strategic Initiatives - The company is committed to refining its commercialization model and implementing precise operational strategies to strengthen its business foundation [1] - Continuous updates and new thematic versions of existing games have been pivotal in providing a diverse and rich gaming experience for users [1]

[Interim Results Announcement for the First Half of 2025](index=1&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%94%E4%BA%94%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Baioo Family Interactive's revenue grew 11.2% to RMB 302.7 million, with operating profit turning positive and adjusted net profit and EBITDA significantly increasing, reflecting improved profitability [Summary of Income Statement](index=1&type=section&id=Summary%20of%20Income%20Statement) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | Period Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 302,706 | 272,284 | 11.2% | | Gross Profit | 149,172 | 125,490 | 18.9% | | Operating Profit / (Loss) | 4,051 | (25,675) | 115.8% | | Adjusted Net Profit / (Loss) | 6,446 | (9,770) | 166.0% | | Adjusted EBITDA | 10,632 | (12,978) | 181.9% | [Summary of Balance Sheet](index=2&type=section&id=Summary%20of%20Balance%20Sheet) | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 935,487 | 819,906 | | Current Assets | 933,840 | 1,055,145 | | Total Assets | 1,869,327 | 1,875,051 | | Total Equity | 1,575,558 | 1,599,085 | | Total Liabilities | 293,769 | 275,966 | | Total Equity and Liabilities | 1,869,327 | 1,875,051 | [Business Overview](index=3&type=section&id=Business%20Overview) Baioo innovated content and business models in 1H 2025, focusing on female-oriented and pet games, integrating AI, with key mobile titles like Aola Star and Obi Island performing strongly through IP collaborations and new gameplay - The company specializes in core game segments such as female-oriented, pet collection, and nurturing games, driven by user demand and integrating AI technology to create immersive gaming experiences[6](index=6&type=chunk) - The core mobile game **Aola Star** achieved revenue growth and significantly increased community activity through its New Year version, anniversary events, and collaboration with the well-known IP 'Nailong'[7](index=7&type=chunk) - **Obi Island: Dream Kingdom** saw gameplay innovation and business model iteration, accumulating 13 IP collaborations in the first half, driving monthly active users to a two-year high[7](index=7&type=chunk) - The company explored the cultural value of games, with **Aola Star Mobile Game** and **Aola Star Web Game** collaborating with Foshan Intangible Cultural Heritage Center to create a joint event centered on Xiangyunsha silk craftsmanship, achieving breakthroughs in both cultural dissemination and commercial value[8](index=8&type=chunk) [Industry Trends](index=4&type=section&id=Industry%20Trends) The gaming industry benefits from overseas expansion policies and faces intensified competition for quality content, while AI technology, particularly Baioo's AIGC platform and large model integration, is reshaping the ecosystem to boost efficiency and player immersion - The Ministry of Commerce's policy supports game overseas expansion, extending the entire industry chain from IP creation, production, and distribution to overseas operations, injecting new growth momentum into the domestic gaming industry[9](index=9&type=chunk) - The mobile game market has entered a phase of **premium content competition**, where high-quality content and novel gameplay are crucial for building long-term operational capabilities[9](index=9&type=chunk) - AI technology is reshaping the gaming industry ecosystem, with Baioo's AIGC tech platform enabling bidirectional conversion of 2D and 3D creative resources and cross-project utilization, significantly enhancing content generation and asset reuse efficiency[9](index=9&type=chunk) - Integration of large models like DeepSeek supports code generation, improving game development efficiency; multimodal AI technology makes NPC behavior more intelligent and natural, enhancing player immersion[9](index=9&type=chunk) [Outlook for the Second Half of 2025](index=5&type=section&id=Outlook%20for%20the%20Second%20Half%20of%202025) Baioo plans to empower core IPs with technology, deepen player engagement, extend game lifecycles, launch new card games 'Doodle Color World' and 'Under the Night Sky,' and expand its international market presence in 2H 2025 - In the second half, the company will continue to empower core IPs with cutting-edge technology, deepening player emotional connections through novel gameplay and rich experiences, thereby extending the full lifecycle of existing core games[10](index=10&type=chunk) - Accelerating product R&D, self-developed trendy card game **Doodle Color World** and card-style mobile game **Under the Night Sky** have both obtained licenses, entering the mid-to-late stages of development, and will be launched successively[10](index=10&type=chunk) - Regarding international expansion, the company will intensify overseas market development, promote global R&D around its proprietary IP products, and customize innovative products to penetrate overseas niche markets, enhancing international market influence and brand recognition[10](index=10&type=chunk) [Operating Data](index=6&type=section&id=Operating%20Data) As of June 30, 2025, Baioo's average quarterly active accounts grew 26.3% to 7.2 million, paying accounts increased 12.5% to 0.9 million, and ARPPU rose 6.9% to RMB 175.9, reflecting enhanced user engagement and monetization Operating Metrics | Metric | 1H 2025 | 1H 2024 | Period Change (%) | | :--- | :--- | :--- | :--- | | Average Quarterly Active Accounts (Millions) | 7.2 | 5.7 | 26.3% | | Average Quarterly Paying Accounts (Millions) | 0.9 | 0.8 | 12.5% | | Average Revenue Per Quarterly Paying Account (RMB) | 175.9 | 164.6 | 6.9% | - The increase in average quarterly active accounts was primarily due to the outstanding performance of existing games attracting more users[12](index=12&type=chunk) - The increase in average quarterly paying accounts was mainly due to novel game content attracting more paying users[12](index=12&type=chunk) - The increase in average revenue per quarterly paying account was primarily due to captivating game experiences enhancing user willingness to pay[12](index=12&type=chunk) [Overall Business and Financial Performance](index=7&type=section&id=Overall%20Business%20and%20Financial%20Performance) The company's revenue grew 11.2% with gross margin at 49.3%, operating profit turned positive due to revenue growth and cost control, and non-IFRS adjusted net profit and EBITDA significantly increased, indicating enhanced profitability [Revenue](index=8&type=section&id=Revenue) | Revenue Source | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | Period Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 302,706 | 272,284 | 11.2% | | Online Entertainment Business | 300,954 | 272,134 | 10.6% | | Other Businesses | 1,752 | 150 | 1,100% | - The growth in online entertainment business revenue was primarily due to the strong performance of existing games, which provided more diverse and richer gaming experiences through continuous content updates and new themed versions[15](index=15&type=chunk) - The significant increase in other business revenue was mainly due to the sales of game merchandise[15](index=15&type=chunk) [Cost of Sales](index=8&type=section&id=Cost%20of%20Sales) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Sales | 153,534 | 146,794 | | Cost of Sales for Online Entertainment Business | 153,200 | 146,800 | - The increase in cost of sales was primarily attributable to the increase in revenue[18](index=18&type=chunk) [Gross Profit](index=9&type=section&id=Gross%20Profit) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | Period Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 149,172 | 125,490 | 18.9% | | Gross Profit Margin | 49.3% | 46.1% | 3.2 percentage points | - The increase in gross profit margin was mainly due to a decrease in the revenue contribution from mobile games published by third parties, which typically have a higher revenue sharing ratio[19](index=19&type=chunk) [Selling and Marketing Expenses](index=9&type=section&id=Selling%20and%20Marketing%20Expenses) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | Period Change (%) | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 25,891 | 20,180 | 28.2% | - The increase in selling and marketing expenses was primarily due to increased game marketing and promotional costs[20](index=20&type=chunk) [Administrative Expenses](index=9&type=section&id=Administrative%20Expenses) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | Period Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 28,888 | 32,003 | -9.7% | - The decrease in administrative expenses was mainly due to a reduction in staff welfare expenses related to the granting of restricted share units to employees[21](index=21&type=chunk) [Research and Development Expenses](index=9&type=section&id=Research%20and%20Development%20Expenses) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | Period Change (%) | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 88,222 | 99,597 | -11.4% | - The decrease in research and development expenses was primarily due to a reduction in staff welfare expenses[22](index=22&type=chunk) [Net Impairment Loss on Financial Assets](index=9&type=section&id=Net%20Impairment%20Loss%20on%20Financial%20Assets) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Impairment Loss on Financial Assets | 765 | 103 | [Other Income](index=9&type=section&id=Other%20Income) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Other Income | 150 | 607 | - Other income represents government grants received by the company upon satisfying certain performance conditions[24](index=24&type=chunk) [Other (Losses) / Gains — Net](index=10&type=section&id=Other%20(Losses)%20%2F%20Gains%20%E2%80%94%20Net) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Other (Losses) / Gains — Net | (1,505) | 111 | - The net other losses primarily represent losses recognized from the termination of lease contracts[25](index=25&type=chunk) [Operating Profit / (Loss)](index=10&type=section&id=Operating%20Profit%20%2F%20(Loss)) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Operating Profit / (Loss) | 4,051 | (25,675) | [Finance Income — Net](index=10&type=section&id=Finance%20Income%20%E2%80%94%20Net) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance Income — Net | 8,369 | 13,705 | - Net finance income primarily comprised interest income from bank deposits and exchange gains / (losses) on cash and bank balances, partially offset by interest expenses on lease liabilities[27](index=27&type=chunk) [Share of Loss of Associates](index=10&type=section&id=Share%20of%20Loss%20of%20Associates) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Share of Loss of Associates | (6,677) | (2,990) | [Profit / (Loss) Before Income Tax](index=10&type=section&id=Profit%20%2F%20(Loss)%20Before%20Income%20Tax) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit / (Loss) Before Income Tax | 5,743 | (14,960) | [Income Tax (Expense) / Credit](index=10&type=section&id=Income%20Tax%20(Expense)%20%2F%20Credit) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Income Tax (Expense) / Credit | (94) | 79 | [Profit / (Loss) for the Period](index=10&type=section&id=Profit%20%2F%20(Loss)%20for%20the%20Period) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit / (Loss) for the Period | 5,649 | (14,881) | [Non-IFRS — Adjusted Net Profit / (Loss) / EBITDA](index=10&type=section&id=Non-IFRS%20%E2%80%94%20Adjusted%20Net%20Profit%20%2F%20(Loss)%20%2F%20EBITDA) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | Period Change (%) | | :--- | :--- | :--- | :--- | | Adjusted Net Profit / (Loss) | 6,446 | (9,770) | 166.0% | | Adjusted EBITDA | 10,632 | (12,978) | 181.9% | - Adjusted net profit and adjusted EBITDA both exclude the impact of share-based non-cash compensation expenses to better reflect core business performance[4](index=4&type=chunk)[17](index=17&type=chunk) [Liquidity and Capital Resources](index=11&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company maintained a healthy 16% total liabilities to total assets ratio, with RMB 1,161.3 million in cash and deposits, no bank loans, and prudent treasury policies, while capital expenditures focused on construction and intangible assets [Cash and Cash Equivalents, Restricted Cash, Short-term Deposits and Long-term Deposits](index=12&type=section&id=Cash%20and%20Cash%20Equivalents%2C%20Restricted%20Cash%2C%20Short-term%20Deposits%20and%20Long-term%20Deposits) | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 550,300 | 495,700 | | Short-term Deposits | 230,000 | 449,000 | | Long-term Deposits | 381,000 | 245,000 | | **Total** | **1,161,300** | **1,189,700** | - As of June 30, 2025, the company had no restricted cash[36](index=36&type=chunk) - The effective annual interest rate for bank cash balances and deposits was **1.72%** (1.88% as of December 31, 2024)[36](index=36&type=chunk) [Bank Loans and Other Borrowings](index=12&type=section&id=Bank%20Loans%20and%20Other%20Borrowings) - As of June 30, 2025, the Group had no bank loans or other borrowings[38](index=38&type=chunk) [Treasury Policy](index=12&type=section&id=Treasury%20Policy) - The Group adopts a prudent treasury policy in cash and financial management and does not use any financial instruments for hedging purposes[39](index=39&type=chunk) [Foreign Exchange Risk](index=12&type=section&id=Foreign%20Exchange%20Risk) - As of June 30, 2025, **RMB 166.5 million** of the company's financial resources were held in non-RMB deposits[40](index=40&type=chunk) - Due to the lack of economically effective hedging measures, the company may face the risk of losses arising from foreign exchange rate fluctuations related to bank cash balances[40](index=40&type=chunk) [Capital Expenditures](index=13&type=section&id=Capital%20Expenditures) | Capital Expenditure Item | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Payments for Construction in Progress and Other Long-term Assets | 24,453 | 41,644 | | Purchase of Intangible Assets | 8,008 | 1,679 | | Purchase of Property, Plant and Equipment | 2,334 | 207 | | **Total** | **34,795** | **43,530** | [Contingent Liabilities](index=13&type=section&id=Contingent%20Liabilities) - As of June 30, 2025, the Group had no material contingent liabilities, guarantees, or lawsuits against the company[43](index=43&type=chunk) [Pledge of Assets](index=13&type=section&id=Pledge%20of%20Assets) - As of June 30, 2025, the Group had not pledged any of its assets[44](index=44&type=chunk) [Future Plans for Material Acquisitions and Investments](index=13&type=section&id=Future%20Plans%20for%20Material%20Acquisitions%20and%20Investments) - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures, nor any material investment activities[45](index=45&type=chunk) - The Group currently has no specific plans for other material investments or acquisitions of significant capital assets or other businesses, but will continue to seek new business development opportunities[45](index=45&type=chunk) [Employees and Remuneration Policy](index=14&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 676 full-time employees, predominantly in R&D, with remuneration including salaries, share-based awards, and performance bonuses; staff costs for 1H 2025 were RMB 135.4 million, or 44.7% of revenue Employee Distribution | Function | Number of Employees (As of June 30, 2025) | Percentage of Total | | :--- | :--- | :--- | | Business | 25 | 3.7% | | Research and Development ('R&D') Business | 155 | 22.9% | | R&D | 381 | 56.4% | | Sales and Marketing | 58 | 8.6% | | General and Administrative | 57 | 8.4% | | **Total** | **676** | **100%** | - The company provides incentives such as salaries, share-based awards (e.g., restricted share units), and performance bonuses[46](index=46&type=chunk) Employee Costs | Metric | 1H 2025 (RMB millions) | 1H 2024 (RMB millions) | Percentage of Revenue (2025/2024) | | :--- | :--- | :--- | :--- | | Staff Costs | 135.4 | 151.6 | 44.7% / 55.7% | | Total Contributions to Employee Social Insurance Schemes | 29.1 | 30.6 | - | - As of June 30, 2025, no restricted share units were granted or outstanding under the 2023 Restricted Share Unit Scheme[47](index=47&type=chunk) [Dividends](index=15&type=section&id=Dividends) Shareholders approved a special dividend of **HKD 0.012** (approx. **RMB 0.011**) per share for 2024, paid on July 31, 2025, while the Board did not recommend an interim dividend for 1H 2025 - Shareholders approved a special dividend of **HKD 0.012** (equivalent to approximately **RMB 0.011**) per share for the year ended December 31, 2024, which was paid on July 31, 2025[48](index=48&type=chunk) - The Board of Directors did not recommend the payment of any interim dividend for the six months ended June 30, 2025[48](index=48&type=chunk) [Changes Since December 31, 2024](index=15&type=section&id=Changes%20Since%20December%2031%2C%202024) No other material changes to the Group's financial position or information disclosed in the 2024 annual report's Management Discussion and Analysis, beyond those in this interim results announcement - Except as disclosed in this interim results announcement, there have been no other material changes to the Group's financial position or the information disclosed in the Management Discussion and Analysis section of the 2024 annual report[49](index=49&type=chunk) [Significant Events After June 30, 2025](index=15&type=section&id=Significant%20Events%20After%20June%2030%2C%202025) To the best knowledge of the Board, no significant events occurred for the Group after June 30, 2025 - To the best knowledge of the Board, there have been no significant events for the Group after June 30, 2025[50](index=50&type=chunk) [Financial Statements](index=16&type=section&id=Financial%20Statements) This section presents the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, including the income statement, statement of comprehensive income, and balance sheet, detailing the company's financial performance and position [Interim Condensed Consolidated Income Statement](index=16&type=section&id=Interim%20Condensed%20Consolidated%20Income%20Statement) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 302,706 | 272,284 | | Gross Profit | 149,172 | 125,490 | | Operating Profit / (Loss) | 4,051 | (25,675) | | Profit / (Loss) for the Period | 5,649 | (14,881) | | Basic Earnings / (Loss) Per Share (RMB cents) | 0.207 | (0.549) | [Interim Condensed Consolidated Statement of Comprehensive Income](index=17&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit / (Loss) for the Period | 5,649 | (14,881) | | Other Comprehensive Income | — | — | | Total Comprehensive Income / (Loss) for the Period | 5,649 | (14,881) | [Interim Condensed Consolidated Balance Sheet](index=18&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheet) | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 935,487 | 819,906 | | Current Assets | 933,840 | 1,055,145 | | **Total Assets** | **1,869,327** | **1,875,051** | | Total Equity | 1,575,558 | 1,599,085 | | Non-current Liabilities | 12,735 | 11,330 | | Current Liabilities | 281,034 | 264,636 | | **Total Liabilities** | **293,769** | **275,966** | [Notes to the Financial Statements](index=20&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed notes on the basis of preparation, accounting policies, key estimates, financial risk management, segment information, operating items, income tax, earnings per share, dividends, trade receivables, and trade payables, ensuring financial reporting transparency [Basis of Preparation of Interim Report](index=20&type=section&id=Basis%20of%20Preparation%20of%20Interim%20Report) - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'[55](index=55&type=chunk) [Accounting Policies](index=20&type=section&id=Accounting%20Policies) - The accounting policies adopted are consistent with those applied in the previous financial year and the corresponding interim reporting period, except for the adoption of new and revised standards[56](index=56&type=chunk) - The Group first applied International Accounting Standard 21 (Revised) 'Lack of Exchangeability' from January 1, 2025, which had no significant impact on the Group[58](index=58&type=chunk) - It is expected that the amendments to IFRS (such as IFRS 9 & 7, IFRS 18, IFRS 19, etc.) that have been issued but are not yet effective will not have a significant impact on the Group's interim condensed consolidated financial information[60](index=60&type=chunk) [Estimates](index=21&type=section&id=Estimates) - The preparation of interim financial information requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses; actual results may differ from these estimates[61](index=61&type=chunk) - The key sources of significant judgments and estimation uncertainties made by management in applying the Group's accounting policies are the same as those applied to the consolidated financial statements for the year ended December 31, 2024[61](index=61&type=chunk) [Financial Risk Management and Financial Instruments](index=21&type=section&id=Financial%20Risk%20Management%20and%20Financial%20Instruments) - The Group's business activities expose it to various financial risks: market risk (primarily currency risk), credit risk, and liquidity risk[62](index=62&type=chunk) - There have been no changes to the risk management department or any risk management policies since December 31, 2024[63](index=63&type=chunk) - The Group endeavors to maintain sufficient cash and cash equivalents for daily operations and to retain flexibility in fundraising by maintaining adequate cash and cash equivalents[64](index=64&type=chunk) - Financial instruments are measured at fair value within a fair value hierarchy, categorized into three levels, with investments in private equity funds valued at net asset value, classified as Level 3 financial instruments[67](index=67&type=chunk)[70](index=70&type=chunk) [Segment Information](index=24&type=section&id=Segment%20Information) - The Group has two operating segments: online entertainment business and other businesses, with key operating decision-makers assessing performance based on the segment revenue of each operating segment[74](index=74&type=chunk) Revenue by Region | Region | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 280,631 | 263,894 | | Outside Mainland China | 22,075 | 8,390 | | **Total Revenue** | **302,706** | **272,284** | Revenue Contribution by Game | Game | Revenue Contribution 1H 2025 | Revenue Contribution 1H 2024 | | :--- | :--- | :--- | | Obi Island Mobile Game | 25.6% | 27.8% | | Aola Star | 25.1% | 26.6% | | Aola Star Mobile Game | 20.0% | 19.5% | | Aola Star | 10.6% | Not applicable* | [Analysis of Operating Items](index=26&type=section&id=Analysis%20of%20Operating%20Items) | Operating Item | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Employee Benefit Expenses | 135,375 | 151,613 | | Distribution Costs and Payment Handling Fees | 100,906 | 97,219 | | Promotion and Advertising Expenses | 14,502 | 9,860 | | Depreciation of Property, Plant and Equipment and Right-of-Use Assets and Amortization of Intangible Assets | 12,461 | 10,576 | | Net Impairment Loss on Financial Assets | 765 | 103 | [Income Tax (Expense) / Credit](index=26&type=section&id=Income%20Tax%20(Expense)%20%2F%20Credit) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax Expense | (88) | (49) | | Deferred Income Tax (Expense) / Credit | (6) | 128 | | **Total** | **(94)** | **79** | - Guangbaitian and Guangtianti qualify as 'High-New Technology Enterprises' and enjoy a preferential income tax rate of **15%**[79](index=79&type=chunk) - Guangzhou Wholly Foreign-Owned Enterprise and Xiaoyunxiong are classified as 'Small and Micro Profit Enterprises,' taxed at **5%** for profits within **RMB 3 million** and **20%** for profits above that threshold[80](index=80&type=chunk) - Enterprises engaged in R&D activities are entitled to claim **200%** of their R&D expenses as deductible tax expenses (super deduction)[82](index=82&type=chunk) - As of the end of the reporting period, there were no deferred tax liabilities related to accumulated withholding tax[83](index=83&type=chunk) [Earnings / (Loss) Per Share](index=28&type=section&id=Earnings%20%2F%20(Loss)%20Per%20Share) | Metric | 1H 2025 (RMB cents) | 1H 2024 (RMB cents) | | :--- | :--- | :--- | | Basic Earnings / (Loss) Per Share | 0.207 | (0.549) | | Diluted Earnings / (Loss) Per Share | 0.206 | (0.549) | - Basic earnings / (loss) per share is calculated by dividing the profit attributable to the company's shareholders by the weighted average number of ordinary shares in issue during the period, less shares held under the restricted share unit scheme[84](index=84&type=chunk) - For the six months ended June 30, 2024, no adjustment was made to the basic loss per share in calculating diluted loss per share due to the anti-dilutive effect of potential ordinary shares[87](index=87&type=chunk) [Dividends](index=29&type=section&id=Dividends) | Metric | 1H 2025 (RMB thousands) | 1H 2024 (RMB thousands) | | :--- | :--- | :--- | | Special Dividend of HKD 0.012 per Ordinary Share | 31,396 | 31,453 | | Less: Dividends on Shares Held Under Restricted Share Unit Scheme | (1,423) | (1,678) | - The company did not declare any interim dividend for the six months ended June 30, 2025[90](index=90&type=chunk) [Trade Receivables](index=30&type=section&id=Trade%20Receivables) | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Gross Trade Receivables | 39,489 | 32,089 | | Less: Impairment Allowance | (1,932) | (1,110) | | **Net Amount** | **37,557** | **30,979** | - Trade receivables primarily arise from online payment agents and mobile platforms, with a credit period generally 30 days from the invoice date[92](index=92&type=chunk) [Trade Payables](index=30&type=section&id=Trade%20Payables) | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 17,703 | 6,471 | - Trade payables are mainly related to server hosting services, advertising fees, and game development subcontracting costs, with a credit period generally 30 days from the invoice date[93](index=93&type=chunk) [Other Information](index=31&type=section&id=Other%20Information) This section details corporate governance practices, including Audit Committee review, directors' compliance with securities trading codes, and adherence to the Corporate Governance Code (with an exception for Chairman/CEO roles), alongside information on listed securities and interim dividend decisions [Audit Committee and Review of Financial Statements](index=31&type=section&id=Audit%20Committee%20and%20Review%20of%20Financial%20Statements) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed matters concerning audit, risk management, internal control, and financial reporting[94](index=94&type=chunk) - The Audit Committee is satisfied that the financial statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'[94](index=94&type=chunk) - The company's auditor has reviewed the interim condensed consolidated financial information in accordance with International Standard on Review Engagements 2410[94](index=94&type=chunk) [Directors' Compliance with the Standard Code for Securities Transactions](index=31&type=section&id=Directors'%20Compliance%20with%20the%20Standard%20Code%20for%20Securities%20Transactions) - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and specific inquiries were made to all Directors, who confirmed their compliance with all relevant requirements of the Standard Code during the reporting period[95](index=95&type=chunk) [Compliance with the Corporate Governance Code](index=31&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) - The company has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules as its own corporate governance code[96](index=96&type=chunk) - Except for the roles of Chairman and Chief Executive Officer being held by Mr. Dai Jian concurrently, the company has complied with all applicable code provisions during the reporting period[96](index=96&type=chunk) - The Board believes that the concurrent holding of the Chairman and Chief Executive Officer roles by the same individual ensures consistent leadership for the Group, enables more effective and efficient planning of the Group's overall strategy, and that the current Board structure ensures a balance between functions and powers[96](index=96&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=32&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) - For the six months ended June 30, 2025, the Group did not purchase, sell, or redeem any of the company's listed securities (including the sale of treasury shares)[97](index=97&type=chunk) [Interim Dividend](index=32&type=section&id=Interim%20Dividend) - The Directors do not recommend the payment of a dividend for the six months ended June 30, 2025[98](index=98&type=chunk) [Publication of 2025 Interim Results and Interim Report](index=32&type=section&id=Publication%20of%202025%20Interim%20Results%20and%20Interim%20Report) - The interim results announcement is published on the company's website (http://www.baioo.com.hk) and the website of Hong Kong Exchanges and Clearing Limited (http://www.hkexnews.hk)[99](index=99&type=chunk) - The company's 2025 interim report will be available on the aforementioned websites in due course[99](index=99&type=chunk)