Since 2025, the gaming industry has demonstrated robust growth with strong supply and demand dynamics. According to the China Gaming Industry Report, China's domestic gaming market achieved actual sales revenue of RMB 168 billion in the first half of 2025, representing a 14.08% year-over-year increase and reaching a historical high. During the same period, the gaming user base reached 679 million, up 0.72% year-over-year, also hitting a record high. Standing at the intersection of technological revolution and content innovation, BAIOO (02100), as a significant industry participant, delivered impressive results in the first half of 2025. During this period, the company not only achieved a turnaround to profitability but also demonstrated strong development momentum in core IP operations, product innovation, and global expansion. Since the beginning of this year, BAIOO has experienced a remarkable doubling rally, with its intraday stock price reaching HK$0.84 on July 16, marking a new high for the year. Undoubtedly, the continuously rising stock price represents the market's most direct recognition of this quality target.
**Classic IPs Continue Strong Performance, Long-term Operational Advantages Emerge**
BAIOO entered a breakthrough phase in the first half of 2025, successfully turning around to profitability with significantly improved earnings. During this period, the company achieved revenue of RMB 303 million, up 11.2% year-over-year, with profits of approximately RMB 5.65 million, representing a successful turnaround from losses. This improvement stems from the company's long-term commitment to focused innovation and deep cultivation of core businesses, while benefiting from steady performance across key metrics and enhanced user stickiness.
From an overall product performance perspective, "stable existing games forming the foundation while pipeline products building momentum" became the key to BAIOO's performance "comeback." The synergy between these two elements has laid a solid foundation for the company's profit improvement in 2025.
During the period, multiple classic IP products under BAIOO demonstrated strong recovery momentum and long-term operational advantages. Particularly, IPs such as "Legend of Aoqi," "Obi Island," and "Ola Star" have proven their enduring appeal, distinguishing themselves from competitors with shorter lifecycles through stable long-term operations and ranking among the top in their respective segments.
"Legend of Aoqi," one of the company's classic IPs, has been operating for over 13 years, with both mobile and web versions continuing to attract player loyalty. In the first half of 2025, both the web and mobile game revenues achieved year-over-year growth, demonstrating lasting market appeal. Behind this success lies the team's deep investment in "refined operations" and "collaborative innovation."
In the "Legend of Aoqi" mobile game, new versions such as the New Year edition "Hero's Elegy" were successively launched. Through gameplay refinement and character development, these updates enhanced players' emotional connection and further enriched the gaming experience. Meanwhile, collaborations with renowned IPs have become BAIOO's tool for breaking boundaries and attracting new players while retaining existing ones. During the first half, "Legend of Aoqi" mobile game partnered with "Milk Dragon," bringing not only adorable collaboration skins and spirits but also significantly boosting community activity and topic engagement. This attracted deep participation from existing players while leveraging Milk Dragon's popularity to introduce new player demographics.
Another flagship mobile game, "Obi Island: Dream Kingdom," achieved counter-trend growth on its third anniversary, with monthly active users reaching new highs. This closely relates to BAIOO's consistent commitment to differentiated content innovation. The game continuously launches novel activities and version optimizations, striving to create more immersive experiential content with limited resources, continuously igniting player enthusiasm.
More importantly, "Obi Island" mobile game precisely captures the long-term needs of simulation management users, addressing players' demands for "personalized homes," "achievement satisfaction," and "content continuity." By continuously deepening core gameplay elements like farming, construction, and social interaction, these features significantly extend the game's lifecycle, promoting sustained and healthy cycles.
Additionally, responding to the rising consumption of traditional culture in recent years and the growing cultural confidence among younger generations, BAIOO actively integrates Chinese cultural elements into game content, achieving mutual promotion and symbiotic development between traditional culture and gaming. The highly acclaimed "Ola Star" IP exemplifies this approach: its mobile and web games collaborated with the intangible cultural heritage "Xiangyunsha Technique" in a cross-sector partnership themed "Weaving Dreams with Cloud Silk, Dyeing Rhythms for a Thousand Years." This showcased the thousand-year-old charm of Lingnan treasures to game players, breathing new life into ancient weaving crafts while enhancing the game's cultural depth and strengthening its social and cultural value.
From the above, it's evident that BAIOO's performance turnaround in the first half of 2025 was no coincidence but rather the result of its IPs and products continuously exploring player needs and expanding user boundaries through sustained content updates, community operations, and emotional connections. This long-term strategic approach not only reflects the company's deep understanding of product lifecycles but also demonstrates its determination to extend the golden period of its products through continuous content investment and user service, allowing products to continue flourishing.
**Pipeline Products Enter Harvest Period, Global Expansion Accelerates**
While consolidating its existing product foundation, BAIOO has never ceased its innovation efforts. In the first half of 2025, the company continued increasing R&D investment to further enhance product innovation and development capabilities, strengthening core competitiveness, with R&D expenses accounting for 29% of revenue, demonstrating the company's confidence in long-term product positioning.
More notably, the company's long-term focus on R&D investment has resulted in multiple pipeline products of different types and themes successively launching or entering market promotion phases, indicating that the company is about to enter a harvest period.
Among self-developed product reserves, trendy card game "Messy Painted World" and content-driven card game "Under the Night" together form important strategic positions in the company's card game segment layout. "Messy Painted World" deeply aligns with young users' aesthetics, featuring highly distinctive art styles. From late last year to present, it has conducted multiple testing rounds across Europe, America, Taiwan, and mainland China, achieving S-level user acquisition performance. Meanwhile, "Under the Night" shows testing data approaching market-leading levels, with core player communities maintaining extremely high activity levels.
Expectedly, these two card games will form complementary "trendy gameplay" and "immersive storytelling" elements, jointly improving the company's product matrix and providing support for 2026 growth. This also demonstrates that BAIOO's newly developed products not only enrich the company's product portfolio but also target market gaps and new user demands, opening broad space for future growth.
While consolidating its Chinese market share, BAIOO has not ceased exploring global "going overseas" opportunities. Facing diverse and distinctive entertainment demands from global player demographics across different regions, the company strengthens international market promotion and leverages core self-developed IPs through localized content and differentiated gameplay, broadly covering major overseas markets including Hong Kong, Macau, Taiwan, Japan, Korea, Southeast Asia, and Europe/America, enhancing its competitiveness in global markets.
Furthermore, the company's layout in AIGC technology will continuously assist its product development and distribution, improving R&D efficiency and reducing production costs while continuously bringing more imaginative premium content to players.
Therefore, with the continuous launch of pipeline new games, combined with stable operations of classic games and incremental space from future overseas expansion, this is highly likely to bring BAIOO significant revenue breakthroughs and long-term positive growth prospects, forming strong support for commercial value and company performance.
Looking ahead, BAIOO will leverage core quality content and premium games as key drivers, utilizing its proprietary popular IPs to achieve breakthroughs across multiple segments. The company will adopt diverse collaboration and innovation strategies, targeting core user consumption while continuously exploring interest-driven consumption space, laying foundations for steady user expansion and deepening competitive advantages, making its growth prospects highly promising.