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]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任 何責任。 | 截至 | 截至以下日期止三個月 | 二零二四年 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 二零二五年 | 二零二四年 | 三月 | 三月 | 十二月 | 三十一日 | | | | | | | | 三十一日 | 三十一日 | 環比變動 | 止三個月 | 同比變動 | （季度活躍賬戶及季度付費賬戶以百萬為單位， | | | | | | | | 季度付費賬戶平均收入以人民幣元為單位） | | | | | | | | | | | | | 季度活躍賬戶1 | 6.5 | 6.3 | 3.2% | 5.9 | 10.2% | 季度付費賬戶2 | 0.9 | 0.8 | 12.5% | 0.9 | — | | 季度付費賬戶 | 平均收入3 | 177.0 | 160 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company's growth is supported by new games and overseas business expansion [1] - The company has shown a steady performance in its core products, with new releases and a strong pipeline for future games [6] - The financial forecast indicates a recovery in net profit and earnings per share (EPS) over the next few years [6] Financial Data and Valuation - Revenue (in million) for 2023A is 4,185, with a YoY decrease of 19.0%. The forecast for 2025E is 4,127, showing an 11.7% increase [3] - Net profit (in million) for 2023A is 1,125, with a YoY decrease of 23.0%. The forecast for 2025E is 1,125, indicating a 19.0% increase [3] - Gross margin is projected to remain stable around 87.5% from 2025E to 2027E [3] - The company’s EPS is expected to rise from 15.61 in 2025E to 19.44 in 2027E [3] - The Price-to-Earnings (P/E) ratio is forecasted to decrease from 14.3 in 2025E to 11.5 in 2027E, indicating potential undervaluation [3] Business Performance - The company’s revenue primarily comes from self-developed products, with significant contributions from titles like "Wandao" and "Yinian Xiaoyao" [6] - Overseas revenue reached 500 million, marking an 83.92% increase, driven by new international game launches [6] - R&D expenses accounted for 20.50% of revenue, reflecting the company's commitment to innovation [6] - New game releases have shown promising user engagement, with over one million registrations for "Wanjian Changsheng" within a week of launch [6]