BAIOO Posts 59% Revenue Surge in 1H26 but Slips to Net Loss on Heavy Marketing Outlay

Bulletin Express
Aug 27

BAIOO Family Interactive Limited released its unaudited 2026 interim results, reporting revenue of RMB 482.02 million, up 59.2% year-on-year, driven by the April and June debuts of “Color the World” and “Reign of Nightfall”. Gross profit rose 94.8% to RMB 290.58 million, lifting the gross margin to 60.3% from 49.3% as the reliance on high-sharing third-party titles diminished.

The top-line acceleration was offset by a six-fold jump in selling and marketing expenses to RMB 166.72 million, tied to new-game promotion, and a 31.5% rise in R&D spending to RMB 115.95 million. Consequently, BAIOO recorded an operating loss of RMB 23.68 million versus a RMB 4.05 million profit a year earlier, and swung to a net loss of RMB 23.89 million (1H25: RMB 5.65 million profit). Adjusted EBITDA turned negative at RMB 14.34 million.

Product mix shifted materially: • “Aobi Island: Dreamland” contributed 22.9% of total revenue, up 45% year-on-year. • “Color the World” delivered 21.6% of revenue in its launch quarter. • “Legend of Aoqi” mobile and web versions generated 24.0% combined, while mature title “Aola Star” fell below the 10% disclosure threshold.

User metrics improved: average quarterly active accounts climbed 41.7% to 10.2 million, average quarterly paying accounts rose 55.6% to 1.4 million, while ARQPA edged down 1.7% to RMB 172.9 due to launch-period incentives.

Liquidity remained robust. Total assets stood at RMB 1.76 billion; cash, cash equivalents and deposits totaled RMB 1.06 billion, and the group remained debt-free. The gearing ratio (liabilities/ assets) increased to 18% from 15% on higher payables and contract liabilities. Capital expenditure fell to RMB 12.48 million from RMB 34.80 million.

A special dividend of RMB 0.010 per share for FY25 was paid on 30 July 2026; no interim dividend was declared. Management reiterated focus on female-oriented, IP-driven and innovative titles, continued AIGC adoption, and phase-in of overseas releases—beginning with “Color the World” in Greater China and other regions—in the second half of 2026.

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