Baioo Family Interactive FY2026 Q2 Earnings Release

1
Hong
Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the
contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability
whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
動
(Incorporated in the Cayman Islands with limited liability)
(Stock code: 2100)
2026 INTERIM RESULTS ANNOUNCEMENT
The board (the “ Board”) of directors (the “
Directors”) of BAIOO Family Interactive Limited
(“ BAIOO ” or the “
Company ” or “
we”) is pleased to announce the unaudited consolidated results
of the Company, its subsidiaries and its controlled entity in the People\�’s Republic of China (“ PRC”)
(the “ Group ”) for the six months ended 30 June 2026 (the “
Reporting Period”) together with the
comparative figures of last year, as follows:
Financial Summary
INCOME STATEMENT HIGHLIGHT
Unaudited Period
six months ended 30 June over-period
2026 2025
change
RMB’000 RMB’000
%
Revenue 482,021302,706
59.2%
Gross profit 290,583149,172
94.8%
Operating (loss)/profit (23,680)4,051
(684.5%)
Non-IFRS Accounting Standards Measures
— Adjusted Net (Loss)/Profit
(1) (23,521) 6,446
(464.9%)
— Adjusted EBITDA (2) (14,342) 10,632
(234.9%)
Notes:
1. Adjusted net (loss)/profit consists of (loss)/profit for the period plus share-based compensation. Adjusted net (loss)/profit
eliminates the effect on non-cash share-based compensation expenses. The term of adjusted net (loss)/profit is not defined
under the IFRS Accounting Standards. The use of adjusted net (loss)/profit has material limitations as an analytical tool, as
adjusted net (loss)/profit does not include all items that impact our net (loss)/profit for the periods.
2. Adjusted EBITDA consists of adjusted net (loss)/profit less finance income-net, plus income tax expense, depreciation of
property and equipment and right-of-use assets and amortization of intangible assets.

2
BALANCE SHEET HIGHLIGHT
UnauditedAudited
As of
30 June As of
31 December
2026 2025
RMB’000 RMB’000
Assets
Non-current assets 579,964597,436
Current assets 1,177,3331,161,066

Total assets
1,757,297 1,758,502
Equity and Liabilities
Total equity 1,438,641 1,494,802

Non-current liabilities
571 18,353
Current liabilities 318,085 245,347

Total liabilities
318,656 263,700
Total Equity and Liabilities
1,757,297 1,758,502

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Management Discussion and Analysis
BUSINESS OVERVIEW AND IN-DEPTH ANALYSIS OF RESULTS OF
OPERATIONS
Industry environment insights
In the first half of 2026, the game industry in China continued to maintain a steady development
trend, with the market size sustaining its growth. As users’ expectations for game quality and
content experience continued to increase, industry competition gradually shifted from traffic
acquisition to the creation of premium content and competition in long-term operational
capabilities. The provision of high-quality content, the exploration of intellectual property
(“ IP ”) value and refined operations became important directions for companies to enhance their
competitiveness. According to data from the Game Publications Committee (GPC) of the China
Audio-video and Digital Publishing Association, in the first quarter of 2026, the actual sales
revenue of China’s game market reached RMB97.172 billion, representing a year-on-year increase
of 13.38%; while the actual sales revenue of self-developed Chinese games in overseas markets
reached US$6.331 billion, representing a year-on-year increase of 31.76%, indicating that both the
domestic market and overseas expansion continued to release growth potential. In terms of policy,
the National Press and Publication Administration continues to advance the approval process for
domestically produced online games, maintaining a regular issuance of game licences, thereby
providing a solid foundation for stable industry supply and the development of new products by
companies. At the same time, the State continues to promote the digital development of culture
and the high-quality development of the cultural industry, driving innovative development in the
digital content sector and supporting high-quality cultural products to expand into overseas markets,
providing policy support for gaming companies to strengthen IP value development and enhance
the international competitiveness of their products. However, competition within the industry has
become increasingly intense, the global supply of new games has experienced explosive growth,
the traffic acquisition costs have continued to rise, the market revenue remains highly concentrated
among leading products, the users’ expectations for game quality and content experience have
continued to increase, the industry competition gradually shifted from traffic acquisition to the
creation of premium content and competition in long-term operational capabilities. In addition,
with the continuous development of artificial intelligence technologies, technologies such as AIGC
have gradually been applied to various stages of game research and development (“ R&D”) and
operations, creating opportunities for companies to improve efficiency while also placing higher
demands on their technological application capabilities.
In the face of the above-mentioned industry environment, the Group adheres to a long-term
perspective, continuously strengthening its R&D investment, deepening its refined operations and
actively embracings technological changes. During the Reporting Period, the Group focused on
niche segments including female-oriented games, IP-oriented games and innovative games, while
continuing to advance the diversified development of its product portfolio. On the IP operational
front, leveraging more than a decade of operational experience accumulated through classic IPs
such as Aobi Island ( ˜
ó⥙), Aola Star (
˜
óÖK™) and Legend of Aoqi (
˜
óƒ
­™),
the Group continued to strengthen the emotional connection with cross-generational users through
high-frequency content iterations, brand collaborations and user community building. In respect

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of new products, two self-developed new products, “Color the World” (˜
¾
él
yð¢™)
and “Reign the Nightall” ( ˜Ç˜h™), were launched during the Reporting Period injecting
new growth momentum into the Group’s product portfolio. In terms of technology application, the
Group continued to explore the practical application of cutting-edge technologies such as AIGC,
effectively enhancing production efficiency.
Deepening Core IP Value and Expanding the New Product Matrix
Based on its continuous efforts to strengthen compliance operations and enhance product R&D
capabilities, centering on the changes of users’ demands, the Company continued to advance the
long-term operation of its core IPs and the R&D of new products. Through diversified approaches
including content innovation, cross-border collaborations and refined operations, we have
continuously explored the commercial value of IPs while enhancing user engagement and brand
influence. During the Reporting Period, the core IPs maintained stable operations. Meanwhile, the
Company actively expanded its new product matrix, explored new growth opportunities through
differentiated gameplay and innovative content, further strengthening the sustainable development
capabilities of its product portfolio.
Aobi Island ( ˜
ó⥙) IP
“Aobi Island” is the Group’s first social product targeting Generation Z and is a representative core
classic IP. With community raising and simulation operation at its core, this IP has accumulated
over 300,000 sets of themed outfits since the launch of its web game in September 2008,
establishing deep emotional connections with users and strong content barriers. During the
Reporting Period, the Group continued to deepen the exploration of the IP value based on users’
demands. On the mobile end, the mobile game “Aobi Island: Dreamland”, which was launched in
July 2022, introduced the “Intangible Cultural Heritage Splendor” ( ˜¢r,
6™) version during
the Spring Festival, innovatively integrating intangible cultural heritage crafts, such as cloisonne
and shadow puppetry, into game scenarios and fashion gameplay, significantly enriching the
user experience through the cross-sector integration of “gaming + intangible cultural heritage”.
Meanwhile, the Group continued to promote IP cross-sector linkages and the expansion of its
offline ecosystem, effectively enhancing IP influence and user stickiness. On the PC end, the
“Aobi Island” web game continued to record improvement in user activity and popularity through
optimized version content, enhanced operational activities and strengthened community interaction,
demonstrating the enduring vitality of a classic IP. During the Reporting Period, revenue generated
from the mobile game “Aobi Island: Dreamland” contributed 22.9% of the Group’s total revenue,
representing a year-on-year increase of 45%, fully demonstrating the IP’s outstanding long-term
operating capabilities.
Legend of Aoqi ( ˜
óƒ
­™) IP
The “Legend of Aoqi” IP centers on collecting spirits and battling. The web game officially was
launched in April 2012, while the mobile game was launched on 15 April 2021 and was once
ranked among the top 10 on the free game charts in Mainland China and received an S-rated
editorial recommendations from multiple channels. In the first half of 2026, the IP continued to
focus on enhancing content quality and refining its operations. On the mobile end, the “Legend of
Aoqi” mobile game launched the “Genesis Finale” ( ˜ôð^Ý™) New Year version, enhancing
user engagement and payment experience by introducing new characters, New Year -themed events

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and storyline content. Meanwhile, the mobile game collaborated with the classic IP Armor Hero
( ˜0`Ç{™ ), launching collaborated spirits, limited-edition skins and mounts, significantly
boosting game and community activities. On the PC end, the “Legend of Aoqi” web game
continued to optimize its game framework and experience, driving a gradual recovery in daily
active users and daily active VIP users through measures such as lowering game entry barriers and
reducing the burden on players. During the Reporting Period, revenue generated from the “Legend
of Aoqi” mobile game and the “Legend of Aoqi” web game contributed 10.6% and 13.4% to the
Group’s total revenue, respectively, demonstrating the strong operational resilience of the IP in its
mature stage.
Aola Star ( ˜
óÖK™ ) IP
“Aola Star” is the Company’s classic pet raising IP. The web game was officially launched in
July 2010, while the mobile game was officially launched in September 2019. The mobile game
once received editors’ recommendations from multiple platforms and won the Best New Game
Award from the Hardcore Platform. In the first half of 2026, the “Aola Star” IP continued to
advance its long-term operation and content innovation. On the PC end, the “Aola Star” web game
maintained stable operations, continued to carry out commercial iterations and artistic innovations.
On the mobile end, leveraging its long-established core user base, the “Aola Star” mobile game
demonstrated stable operational performance of a mature product. During the Reporting Period,
the mobile game collaborated with popular IPs such as Capybara PIMOO ( ˜dËÖƒ
»¨™),
achieving mutual empowerment at both the content and brand levels, further enriching the user
experience, continuously enhancing the influence of IPs and demonstrating the enduring vitality of
this classic IP.
Color the World ( ˜
¾
él
y𢙠)
“Color the World” is a new product launched by the Group as part of its efforts to expand into
diversified game categories and innovative market segments. This new bullet-hell dyeing card
mobile game, which was launched in April 2026, successfully created a differentiated and
lightweight gaming experience by leveraging its unique “dyeing mechanism” and trendy visual
style, precisely catering to the aesthetic preferences and short-session entertainment needs
of younger players. In terms of publishing and operations, the game recorded over 6 million
pre -registrations across all platforms prior to its launch. On the first day of its release, it topped
the Apple App Store Games Free Chart, the TapTap Trending Chart and the Bilibili Popularity
Chart, and reached as high as the 19th place on the Apple App Store Games Grossing Chart. At the
same time, the Company actively explored youth-oriented content operation models, collaborating
with the highly popular virtual singer Luo Tianyi ( ˜~Â1™) to launch the “Worldwide Dyeing
Tour” ( ˜”Q™ ) campaign, and partnering with leading content creators such as “Xiaochao
Yuanzhang” ( ˜ƒ“ ë—™ ). Related videos ranked third on Bilibili’s overall chart, effectively
enhancing the product’s exposure and user engagement, contributing new growth momentum to the
Group’s product matrix. During the Reporting Period, the revenue generated from the “Color the
World” mobile game contributed 21.6% to the total revenue of the Group, successfully validating
the Company’s capability to expand into innovative market segments and injecting new growth
momentum into the Group’s product matrix.

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Reign of Nightfall (˜Ç˜h™)
“Reign of Nightfall” is a new product launched by the Group in June 2026 targeting the female-
oriented game segment. Leveraging its differentiated thematic setting and exquisite art style,
the game attracted significant market attention prior to launch, with pre-registrations exceeding
10 million across all platforms, and on the first day of its release, it ranked first on both the Bilibili
Popularity Chart and the TapTap Chart, while achieving a peak ranking of the 25th on the iOS
Games Grossing Chart. In terms of promotion and operations, the game continued to gain traction
across multiple platforms during its launch period, generating over 3 billion views across online
topics and repeatedly ranking on Weibo Hot Search and Douyin trending charts. Meanwhile, the
Company actively promoted cross-sector collaborations and diversified marketing initiatives by
partnering with brands including JUST.FOTO, iFLYTEK Input Method ( ˜ Ã-i],™), QQ
Music ( ˜QQ
*€™ ) and Wanda Plaza (
˜¬:?™), effectively broadening the product’s
exposure. We firmly believe that the key to success in the female-oriented game segment lies in
delivering long-term emotional companionship and a high-quality user experience. As of the date
of this announcement, the game has accumulated a substantial core user base, while community
activity and player engagement remain strong. In response to players’ expectations for high-quality
content, the project team remains committed to a long-term approach, transforming every piece of
genuine user feedback into motivation for continuous improvement, with a comprehensive focus on
refining core content, enhancing the combat experience and improving its long-term operational.
We believe that, with the steady enhancement of product quality and the continued advancement of
refined operations, “Reign of Nightfall” will further unleash its long-term IP value and contribute
sustainable growth momentum to the Group.
Strengthening the Protection of Minors and Continuously Enhancing the Compliance
Framework
With the continued advancement of relevant policies such as the Regulations on the People’s
Republic of China on the Protection of Minors in Cyberspace and the Guidelines for the
Establishment of Minors’ Modes for the Mobile Internet, requirements for the protection of
minors in the online gaming industry have been further elevated, with regulatory oversight
gradually extending beyond anti-addiction management to areas including content safety, spending
management and user services. In response, the Group continues to closely monitor relevant
regulatory requirements and has integrated the protection of minors throughout the entire operation
process of its game products. Through technological applications, content management and service
optimisation, the Group continuously enhances its compliance framework.
During the Reporting Period, the Group continued to enhance its account management and
anti -addiction measures for minors. All of the Group’s game products have been connected to the
national real-name authentication system, with stringent implementation of requirements relating
to gaming time restrictions, age-appropriate reminders and spending management for minors. At
the same time, the Group continued to disable guest mode-related functions, implement minor
user identification and behavioural management measures, and enforce corresponding spending
restrictions based on the characteristics of users in different age groups. Through these measures,
the Group sought to reduce the risks of irrational gaming and spending by minors from multiple
dimensions, including account management, gaming time and consumption behaviour.

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In terms of game content safety management, the Group continued to strengthen its content
review capabilities through the combination of “AI intelligent recognition + professional manual
review”, conducting real-time monitoring of in-game chat messages, user-generated interactive
content and other disseminable content. By integrating its self-developed sensitive word filtering
system with third-party security services (such as Netease’s shield), the Group enhanced its risk
identification capabilities for text, image and voice content, enabling the timely detection and
handling of non -compliant content. Meanwhile, the Group continued to conduct internal content
safety inspections and cooperated with relevant special governance initiatives in accordance with
regulatory requirements, thereby safeguarding a healthy and stable gaming ecosystem.
In addition to technology and content management, the Group also continued to strengthen
its communication mechanisms with users and parents. The Group continued to operate the
“Parent Monitoring Program for Juveniles in Online Games”, providing application channels and
related support services for parental monitoring through its official website, assisting parents in
understanding and monitoring minors’ gaming activities. At the same time, the Group continuously
optimised relevant service procedures based on user feedback, enhancing the responsiveness and
effectiveness of its minor protection initiatives.
The specific impacts of the continued enhancement of the aforesaid regulatory requirements on the
financial performance and business prospects of the Group are analysed below:
In terms of revenue structure, the revenue contribution from minor users remained at an extremely
low level during the Reporting Period, with the Group’s user revenue structure becoming further
concentrated on its core adult user base. This structural characteristic is highly consistent with
the direction of healthy industry development advocated by regulatory authorities. Although such
adjustment had an impact on certain revenue contributions, it effectively reduced the Group’s
revenue exposure to minor users and significantly mitigated potential compliance risks, thereby
laying a solid foundation for the long-term and stable operation of the business.
In terms of operating costs, in order to continuously meet and exceed regulatory requirements, the
Group further increased its investment in the iterative enhancement of its review systems, building
a professional compliance team and developing its content safety inspection mechanisms during
the Reporting Period. While such investments had a certain impact on the cost base in the short
term, the Group regards them as necessary strategic investments to safeguard business continuity
and maintain brand trust, effectively mitigating the risks of potential operational disruptions and
regulatory penalties.
In terms of long-term strategy, the Group believes that increasingly stringent compliance
requirements will contribute to industry clearing and raise the overall competitive threshold of
the industry. Through the continuous optimisation of user services such as the “Parent Monitoring
Program”, the Group has further strengthened its image as a responsible brand among family user
groups and successfully transformed its compliance capabilities into a brand trust advantage. Such
achievements are aligned with the Group’s long-term strategy of “content refinement” and provide
support for the sustainable growth of its business.

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Social Responsibility
While pursuing business growth, BAIOO has always integrated social responsibility into every
aspect of its corporate development. Centering on gaming and focusing on the development
of a new “Gaming+” ecosystem, the Company has continued to contribute to cultural heritage
preservation, educational support, rural revitalisation, environmental protection initiatives and
assistance for disadvantaged groups, fostering a brand ecosystem that de\�livers mutual benefits to the
Company, its products, users and society.
In terms of cultural heritage preservation, BAIOO has remained committed to promoting the digital
dissemination of China’s excellent traditional culture. In the first half of 2026, “Aobi Island:
Dreamland” ( ˜
óâ¥j¬
7™ ), one of the Company’s products, collaborated with various
intangible cultural heritage elements, including cloisonne, shadow puppetry, tile cats and velvet
flowers, launching exquisite intangible cultural heritage-themed fashion items, furniture and a
series of Chinese New Year-themed gaming content. Through the gaming platform, traditional
craftsmanship, folk customs and regional cultural treasures have been presented in an engaging
manner, revitalising traditional culture in the digital era.
In respect of education support, BAIOO Charity continued to advance the “BAIOO Encouragement
Grant” project. In the first half of 2026, the project provided financial assistance to underprivileged
students in Wengyuan County, Shaoguan and organised charitable educational support activities
in rural primary schools, helping students to pursue their educational aspirations. In terms of
environmental protection, BAIOO Charity continued to organise tree-planting initiatives during the
first half of 2026, mobilising employee volunteers to establish the “BAIOO loving forests ( õ
ó
Ð
)” and actively promoting low-carbon and environmentally friendly practices.
The Group will continue to deepen its charitable initiatives and further expand the breadth and
depth of its social responsibility efforts. Leveraging gaming as a platform to spread warmth and
goodwill, the Group will work together with various sectors of society to create a brighter future
characterised by the coordinated development of both the enterprise and the society.

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OUTLOOK FOR THE SECOND HALF OF 2026
Looking ahead to the second half of 2026, BAIOO will continue to leverage its established IP
strengths and extensive experience in game development and operations, while capturing the
strategic opportunities arising from the recovery of the industry and technological advancement,
to move towards a new stage of high-quality development. The Company will steadily advance its
overseas market layout with dual themes of “cultivation of IP value” and “breakthroughs in global
markets”.
In terms of product development and content innovation, BAIOO will continue to deepen its
presence in diversified niche game genres, including female-oriented games, IP-oriented games and
innovative games. On the one hand, leveraging its long-term operational \�experience with classic IPs
such as “Aobi Island” ( ˜
ó⥙), “Aola Star” (
˜
óÖK™) and “Legend of Aoqi” (
˜
óƒ
Â
­™ ), the Company will continue to unlock the IP vitality and strengthen t\�he emotional connections
of cross-generational users through version iterations, brand collaborations and user co-creation
initiatives. On the other hand, the Company will steadily advance the refined optimisation and
long-term operation of “Color the World” ( ˜
¾
él
yð¢™) and “Reign of Nightfall” (
˜Ç˜
h™ ), building momentum for future business growth. In response to technological transformation
in the field of content creation, BAIOO will maintain a proactive yet prudent approach and
continue to deepen the application of cutting-edge technologies such as AIGC throughout the
entire production process. While upholding product quality and preserving a human touch, the
Company will substantially enhance industrialised production efficiency through human-machine
collaboration, thereby unlocking the full potential of content productivity.
In terms of overseas expansion, BAIOO will steadily advance the global launch plans of multiple
products. Our new product “Color the World” is scheduled to be launched successively in
Hong Kong, Macau, Taiwan and other overseas markets. Leveraging its unique dyeing gameplay
and trendy visual style, the game aims to enter the global casual gaming segment and bring the
Group’s self -developed products to a broader international user base. Through refined localisation
efforts and culturally adaptive strategies, the Company is committed to transforming high-quality
content into long-term cross-regional competitiveness and building growth momentum that
transcends geographical boundaries.

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OPERATION INFORMATION
The following table sets out average quarterly active accounts (“QAA”), average quarterly
paying accounts (“ QPA”) and average quarterly average revenue per quarterly paying accounts
(“ ARQPA ”) for our online virtual worlds for the periods indicated below (Notes):
For the six months ended Period-
over-period Change
30
June 30
June
2026
(1) 2025
(QAA & QPA in millions, ARQPA in RMB)
average QAA
(2) 10.2 7.2
41.7%
average QPA (3) 1.4 0.9
55.6%
average quarterly ARQPA (4) 172.9 175.9
(1.7%)
Notes:
(1) As of 30 June 2026, our online virtual worlds under commercial operation included\� Aobi Island, Aola Star, Dragon Knights,
Light of Aoya, Legend of Aoqi, Shiwuyu ( ˜.J§™), Aola Star Mobile (
˜HRÖKÓ¦™), Legend of Aoqi Mobile,
Aobi Island Mobile (
˜
óâ¥Ó7™ ), Color the World (
˜
¾
él
yð¢™) and Reign of Nightfall (
˜Ç˜h™).
(2) The average QAA for online virtual worlds was approximately 10.2 million for the six months ended 30 June 2026,
representing an increase of approximately 41.7% compared with the same period last year. The increase was primarily due
to new games was launched in first half of the year, which drove the expansion of the number of the game users.
(3) The average QPA for online virtual worlds was approximately 1.4 million for the six months ended 30 June 2026,
representing an increase of approximately 55.6% compared with the same period last year. The increase was primarily due
to the increase of QAA.
(4) The average quarterly ARQPA for online virtual worlds was approximately RMB172.9 for the six months ended 30 June
2026, representing a decrease of approximately 1.7% compared with the same period last year. The decrease was primarily
due to additional free virtual items were given to the user while the new game were launched to ensure game experience.

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OVERALL BUSINESS AND FINANCIAL PERFORMANCE
The following table sets forth our consolidated statements of comprehensive income for the
six months ended 30 June 2026 and 2025, respectively:
(Unaudited)
For the six months ended
30 June % of30
June % of
2026 Revenue 2025
Revenue
RMB’000 RMB’000
Revenue 482,021100302,706
100
Online entertainment business 476,44099300,954
99
Other businesses 5,58111,752
1
Cost of revenue (191,438)(40)(153,534)
(51)
Gross profit 290,58360149,172
49
Selling and marketing expenses (166,719)(35)(25,891)
(9)
Administrative expenses (29,059)(6)(28,888)
(10)
Research and development expenses (115,954)(24)(88,222)
(29)
Net impairment loss on financial assets (2,063)(0)(765)
(0)
Other income —0150
0
Other loss — net (468)(0)(1,505)
(0)

Operating (loss)/profit (23,680)(5)4,051
1
Finance income — net 2,078 08,369
3
Share of loss of an associate —0(6,677)
(2)

(Loss)/Profit before income tax (21,602)(4)5,743
2
Income tax expense (2,286)(0)(94)
(0)

(Loss)/Profit for the period (23,888)(5)5,649
2

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The following table sets forth our consolidated statement of comprehensive income for the
six months ended 30 June 2026 and 2025 respectively:
(Unaudited)
For the six months ended
30 June % of30
June % of
2026 Revenue 2025
Revenue
RMB’000 RMB’000
(Loss)/Profit for the period (23,888)(5)5,649
2

Other comprehensive income, net of tax
—0—
0
Total comprehensive (loss)/income
for the period (23,888)(5)5,649
2

Other financial data
Adjusted net (loss)/profit (1) (unaudited) (23,521) (5)6,446
2
Adjusted EBITDA (2) (unaudited) (14,342)(3)10,632
4
Notes:
1. Adjusted net (loss)/profit consists of (loss)/profit for the period plus share-based compensation. Adjusted net (loss)/profit
eliminates the effect on non-cash share-based compensation expenses. The term of adjusted net (loss)/profit is not defined
under the IFRS Accounting Standards. The use of adjusted net (loss)/profit has material limitations as an analytical tool, as
adjusted net (loss)/profit does not include all items that impact our net (loss)/profit for the period.
2. Adjusted EBITDA consists of adjusted net (loss)/profit less finance income-net, plus income tax expense, depreciation of
property and equipment and right-of-use assets and amortization of intangible assets.
Revenue
Our revenue for the six months ended 30 June 2026 was RMB482.0 million, representing a 59.2%
increase from RMB302.7 million for the six months ended 30 June 2025.
Online Entertainment Business: Our online entertainment business revenue for the six months ended
30 June 2026 was RMB476.4 million, representing a 58.3% increase from RMB301.0 million for
the six months ended 30 June 2025. This was primarily due to the launch of two new games in Apri\�l
and June 2026.
Other Businesses: Revenue from other businesses for the six months ended 30 June 2026 was
RMB5.6 million, representing an increase of 211.1% from RMB1.8 million for the six months
ended 30 June 2025. This increase primarily due to sales of peripheral products.
Cost of Revenue
Our cost of revenue for the six months ended 30 June 2026 was RMB191.4 million, representing a
24.7% increase from RMB153.5 million for the six months ended 30 June 2025.

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Online Entertainment Business: Our cost of revenue on online entertainment business for the
six months ended 30 June 2026 was RMB188.5 million, representing a 23.0% increase from
RMB153.2 million for the six months ended 30 June 2025. The increase was mainly due to the
increase of revenue.
Other Businesses: Our cost of revenue on other businesses for the six months ended 30 June
2026 was RMB2.9 million, comparing with the cost of RMB0.4 million for the six months ended
30 June 2025.
Gross Profit
As a result of the foregoing, our gross profit for the six months ended 30 June 2026 was
RMB290.6 million, compared with RMB149.2 million for the six months ended 30 June 2025.
Gross profit margin was 60.3% for the six months ended 30 June 2026, compared with 49.3% for
the six months ended 30 June 2025. The gross profit margin increased mainly due to the proportion
of revenue from entrusted third parties mobile games with high revenue sharing decreased.
Selling and Marketing Expenses
Our selling and marketing expenses for the six months ended 30 June 2026 were
RMB166.7 million, a 543.6% increase from RMB25.9 million for the six months ended 30 June
2025. This was mainly due to higher marketing expenses for new game launches.
Administrative Expenses
Our administrative expenses for the six months ended 30 June 2026 were RMB29.1 million, remain
roughly flat from the same period last year.
Research and Development Expenses
Our research and development expenses for the six months ended 30 June 2026 were
RMB116.0 million, a 31.5% increase from RMB88.2 million for the six months ended 30 June
2025. This was primarily driven by increase in investment in R&D.
Net Impairment Loss on Financial Assets
We recorded net impairment loss of financial assets of RMB2.1 million for the six months ended
30 June 2026, compared with net impairment loss of financial assets of RMB0.8 million for the
six months ended 30 June 2025.
Other Income
The Company recognized nil other income for the six months ended 30 June 2026, compared with
RMB0.2 million for the six months ended 30 June 2025. The other income was generated from our
fulfillment of certain performance conditions related to government grants.

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Other Loss — net
The Company recognized net other loss of RMB0.5 million for the six months ended 30 June 2026,
compared with net other loss of RMB1.5 million for the six months ended 30 June 2025, primarily
due to losses on termination of lease contracts.
Operating (Loss)/Profit
As a result of the foregoing, our operating loss for the six months ended 30 June 2026 was
RMB23.7 million, compared with operating profit of RMB4.1 million for the six months ended
30 June 2025.
Finance Income — net
We had net finance income of RMB2.1 million for the six months ended 30 June 2026, compared
with net finance income of RMB8.4 million for the six months ended 30 June 2025. Net finance
income was primarily consisted of interest income on term deposits and cash and bank balance,
which was partly offset by exchange losses on cash and bank balance.
Share of Loss of an Associate
The Company recognized nil share of loss of an associate for the six months ended 30 June 2026,
compared with RMB6.7 million for the six months ended 30 June 2025.

(Loss)/Profit before Income Tax
As a result of the foregoing, we had a loss of RMB21.6 million for the six months ended 30 June
2026, compared with a gain of RMB5.7 million for the six months ended 30 June 2025.
Income Tax Expense
Our income tax expense for the six months ended 30 June 2026 was RMB2.3 million, compared
with income tax expense of RMB0.09 million for the six months ended 30 June 2025.
(Loss)/Profit for the Period
We had a loss of RMB23.9 million for the six months ended 30 June 2026, compared with a profit
of RMB5.6 million for the six months ended 30 June 2025.
Non-IFRS Accounting Standards — Adjusted Net (Loss)/Profit/EBITDA
Our adjusted net loss for the six months ended 30 June 2026 was RMB23.5 million, representing a
464.9% decrease from an adjusted net profit of RMB6.4 million for the six months ended 30 June
2025. Our adjusted EBITDA for the six months ended 30 June 2026 was loss of RMB14.3 million,
representing a 234.9% decrease from gain of RMB10.6 million for the six months ended
30 June 2025.

15
The following table reconciles our adjusted net (loss)/profit and adjusted EBITDA for the periods
presented to the most directly comparable financial measure calculated a\�nd presented in accordance
with IFRS Accounting Standards, which is net (loss)/profit:
Unaudited
Six months ended 30 June
2026 2025
RMB’000 RMB’000
(Loss)/Profit for the period (23,888)5,649
Add:
Share-based compensation 367797

Adjusted net (loss)/profit
(23,521)6,446
Add:
Depreciation and amortization 8,97112,461
Finance income-net (2,078)(8,369)
Income tax expense 2,28694

Adjusted EBITDA
(14,342)10,632
LIQUIDITY AND CAPITAL RESOURCES
During the Period, we met our working capital and other capital requirements principally from cash
flow generated from our operating activities.
The Group’s gearing ratios as of the dates below were as follows:
UnauditedAudited
As of As of
30 June 31 December
2026 2025
RMB’000 RMB’000
Total liabilities 318,656263,700
Total assets 1,757,2971,758,502
Gearing ratio
(1) 18% 15%
Note:
(1) Gearing ratio is calculated by dividing total liabilities by total assets.

16
Cash and Cash Equivalents, Restricted Cash, Short-Term Deposits and Long-Term Deposits
As of 30 June 2026, our cash and cash equivalents consisted of cash in bank and cash on hand,
which amounted to RMB763.5 million, compared with RMB490.3 million as of 31 December
2025. We had short-term deposits of RMB250.0 million as of 30 June 2026, compared with
RMB551.0 million as of 31 December 2025, representing bank deposits which we intend to hold
for over three months but less than one year. We had long-term deposits of RMB50.0 million as
of 30 June 2026, compared with RMB60.0 million long-term deposit as of 31 December 2025,
representing bank deposits which we intend to hold for over one year but less than three years.
As of 30 June 2026, the Group had no restricted cash.
The effective interest rate per annum for cash in bank balances and depo\�sits as of 30 June 2026 was
1.29%, compared with 1.64% as of 31 December 2025. Our policy is to place our cash in interest-
bearing principal-protected call or deposits with reputable domestic or international banks.
Our cash and cash equivalents and term deposits are denominated in the following currencies:
UnauditedAudited
As of As of
30 June 31 December
Group 20262025
RMB’000 RMB’000
RMB 885,836922,349
US$ 115,080108,088
HK$ 62,44370,755
Others 102109

1,063,4611,101,301
Bank Loans and Other Borrowings
The Group had no bank loans and other borrowings as of 30 June 2026.
Treasury Policies
As of 30 June 2026, the Group had conservative treasury policies in terms of cash and financial
management. The Group does not use any financial instruments for hedging purposes.
Foreign Currency Risk
As of 30 June 2026, RMB177.6 million of our financial resources were held in deposits in non-
RMB currencies. Since there are no cost-effective hedges against the fluctuations of the RMB, there
is a risk that we may experience a loss as a result of any foreign curre\�ncy exchange rate fluctuations
in connection with our cash in bank balances.

17
Capital Expenditures and Investments
Our capital expenditures consist of purchases of property and equipment,\� such as servers, computers
and construction in progress and intangible assets, such as computer software and license. For the
six months ended 30 June 2026, our total capital expenditures were RMB12.5 million, compared
with RMB34.8 million for the six months ended 30 June 2025. The following table sets out our
expenditures for the periods indicated:
Unaudited
For the six months ended 2026 2025
RMB’000 RMB’000
Capital Expenditures
—
Payment for purchase of property and equipment,
including construction in progress
10,51626,787
— Purchase of intangible assets 1,9608,008

Total
12,47634,795
Contingent Liabilities
As of 30 June 2026, the Group did not have any material contingent liabilities, guarantees or
litigation against it.
Charges on Assets
As of 30 June 2026, there were no charges on the Group’s assets.
Material Acquisitions and Future Plans for Major Investment
The Group had no major acquisition and disposal relating the subsidiaries, associates and joint
ventures during the Reporting Period. The Group had no significant investment activity during the
Reporting Period.
The Group currently has no specific plan for other major investments or acquisitions for significant
capital assets or other businesses. However, the Group will continue to look for new opportunities
for business development.

18
Employees and Staff Costs
As of 30 June 2026, the Group had 803 full-time employees. The following table sets forth the
number of full-time employees by function as of 30 June 2026:
As of 30 June 2026
Number of
Employees % of Total
Operations 344.2
R&D operations 16821.0
Development and research 47459.0
Sales and Marketing 678.3
General and administration 607.5

Total 803100
In addition to salary, we also provide various incentives, including share-based awards, such as
restricted share units (“ RSU”) granted pursuant to the share incentive schemes of the Company,
and performance-based bonuses to better motivate our employees. As required by the PRC law,
we contribute to housing funds and maintain mandatory social insurance plans for our employees,
covering pension, medical, unemployment, work injury and maternity leave. We are required by
the PRC law to make contributions to these social insurance plans at specified percentages of
the compensation of each employee, up to a maximum amount as may be specified by the local
government from time to time. Such social insurance plans include defined contribution retirement
benefit plans organized by the relevant governmental authorities. Forfeited contributions by the
Group to these plans may not be used by the Group to reduce the existing level of contributions.
The total amount of contributions we made for employee social insurance plans in the first half of
2026 were approximately RMB37.4 million, compared with RMB29.1 million in the first half of
2025. We incurred staff costs of approximately RMB166.6 million and RMB135.4 million, for the
six months ended 30 June 2026 and 2025, representing 34.6% and 44.7% of our revenue for those
periods respectively.
We will continue to grant RSUs to our employees to incentivize them pursuant to the 2023 RSU
Scheme. The maximum number of the Shares which we may grant pursuant to the 2023 RSU
Scheme and all other share scheme as adopted by the Company from time to time shall not exceed
286,717,400 shares, representing approximately 10% of our share capital as of the date of the
annual general meeting in 2026.
Under the previous restricted share unit plan which was terminated on 27 June 2023, there were a
total of 1,215,000 RSUs outstanding as of 30 June 2026.
During the Reporting Period, there were no RSUs granted under the 2023 RSU Scheme. As of
30 June 2026, there was no outstanding RSU under the 2023 RSU Scheme.

19
Dividend
At the Company’s annual general meeting on 26 June 2026, shareholders of the Company (the
“ Shareholders ”) approved the Board recommended special dividend of HK$0.012 (equivalent to
approximately RMB0.010) per share for the year ended 31 December 2025. The special dividend
was paid to the Shareholders on 30 July 2026.
The Board did not propose any interim dividend for the six months ended 30 June 2026 (for the
six months ended 30 June 2025: Nil).
CHANGES SINCE 31 DECEMBER 2025
Save as disclosed in this interim results announcement, there were no other significant changes in
the Group’s financial position or from the information disclosed under management discussion and
analysis in the annual report for the year ended 31 December 2025.
SIGNIFICANT EVENTS AFTER 30 JUNE 2026
To the best knowledge of the Board, the Group did not have any significant events which have
occurred after 30 June 2026.

20
INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT
Unaudited
Six months ended 30 June
2026 2025
Note RMB’000 RMB’000
Revenue 6
482,021 302,706
Cost of revenue (191,438)(153,534)

Gross profit
290,583149,172
Selling and marketing expenses (166,719)(25,891)
Administrative expenses (29,059)(28,888)
Research and development expenses (115,954)(88,222)
Net impairment loss on financial assets (2,063)(765)
Other income —150
Other losses — net (468)(1,505)

Operating (loss)/profit 7
(23,680) 4,051
Finance income 7,488 10,028
Finance costs (5,410)(1,659)

Finance income — net
2,078 8,369
Share of loss of an associate —(6,677)

(Loss)/profit before income tax
(21,602)5,743
Income tax expense 8
(2,286) (94)

(Loss)/profit for the period
(23,888)5,649
(Loss)/profit attributable to:
— Shareholders of the Company (23,746)5,655
— Non-controlling interests (142)(6)

(23,888)5,649
(Loss)/earnings per share for (loss)/profit
attributable to shareholders of the Company
(expressed in
RMB
cents per share)
Basic (loss)/earnings per share 9
(0.865) 0.207

Diluted (loss)/earnings per share
(0.865)0.206

21
INTERIM CONDENSED CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Unaudited
Six months ended 30 June
2026 2025
RMB’000 RMB’000
(Loss)/profit for the period (23,888)5,649
Other comprehensive income ——

Total comprehensive (loss)/income for the period
(23,888)5,649
Total comprehensive (loss)/income attributable to:
— Shareholders of the Company (23,746)5,655
— Non-controlling interests (142)(6)

(23,888)5,649

22
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
UnauditedAudited
As at
30 June As at
31 December
2026 2025
Note RMB’000 RMB’000
ASSETS
Non-current assets
Property and equipment 260,324 263,963
Right-of-use assets 233,041 235,669
Intangible assets 6,839 6,902
Prepayments and other receivables 22,135 21,150
Long-term bank deposits 50,000 60,000
Deferred tax assets 3,7645,891
Financial assets at fair value through profit or loss 3,861 3,861

579,964597,436
Current assets
Inventories 245 538
Contract costs 49,96054,159
Trade receivables 11
86,116 39,339
Prepayments and other receivables 27,551 25,729
Term deposits 250,000 551,000
Cash and cash equivalents 763,461 490,301

1,177,3331,161,066
Total assets
1,757,2971,758,502
EQUITY
Share capital 8 8
Share premium 1,067,1191,094,462
Treasury shares (4,104)—
Reserves 11,644 12,269
Retained earnings 356,837380,784

Equity attributable to shareholders
of the Company 1,431,5041,487,523
Non-controlling interests 7,137 7,279

Total equity
1,438,6411,494,802

23
UnauditedAudited
As at
30 June As at
31 December
2026 2025
Note RMB’000 RMB’000
LIABILITIES
Non-current liabilities
Contract liabilities 57118,353

57118,353
Current liabilities
Trade payables 12
13,275 18,521
Other payables and accruals 150,10874,082
Advances from distributors 13,901 15,777
Contract liabilities 140,674136,931
Income tax liabilities 127 36

318,085245,347
Total liabilities
318,656263,700
Total equity and liabilities
1,757,2971,758,502

24
1 General information
BAIOO Family Interactive Limited (the “ Company” or “
BAIOO ”) was incorporated in the
Cayman Islands on 25 September 2009 as an exempted company with limited liability under
the Companies Law, Cap 22 (Law 3 of 1961, as consolidated and revised) of the Cayman
Islands. The address of the Company’s registered office is Hutchins Drive, Cricket Square,
P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands, British West Indies.
The Company and its subsidiaries and the PRC operating entities (collectively the “ Group”)
are principally engaged in the development and operation of online virtu\�al world business in the
People’s Republic of China (the “ PRC”) and some other off-line businesses.
The Company’s shares have been listed on the Main Board of The Stock Exchange of
Hong Kong Limited since 10 April 2014.
The interim condensed consolidated financial information is presented in Renminbi (“ RMB”),
unless otherwise stated, and have been approved for issue by the Board of the Directors of the
Company on 27 August 2026.
The interim condensed consolidated financial information has not been audited.
2 Basis of preparation of the interim report
This interim condensed consolidated financial information for the six months ended 30 June
2026 has been prepared in accordance with International Accounting Standard (“ IAS”) 34,
‘Interim financial reporting’. The interim condensed consolidated financial information should
be read in conjunction with the annual financial statements for the year ended 31 December
2025, which have been prepared in accordance with IFRS Accounting Standards as issued by
the International Accounting Standards Board.
3 Accounting policies
The accounting policies adopted are consistent with those of the previous financial year and
corresponding interim reporting period, except for the adoption of new and amended standards
as set out below.
3.1 Amended IFRS Accounting Standards adopted by the Group
The Group has applied the following amendments for the first time from 1 January 2026.
Amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial
Instruments
Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature dependent Electricity
Amendments to IFRS 1, IFRS 7,
IFRS 9, IFRS 10 and IAS 7 Annual Improvements to IFRS Accounting
Standards — Volume 11
The Group has assessed the impact of the adoption of the amended standards that are effective
for the first time for this interim period and there was no material impact on the Group.

25
3.2 Impac t of IFRS Accounting Standards issued but not yet applied by the Group
Certain amendments to standards have been issued but are not yet effective and have not been
early adopted by the Group during the period. The Group has already comm\�enced an assessment
of the impact of these new and amended standards and has concluded on a \�preliminary basis that
adoption of these new and amended standards is not expected to have sign\�ificant impacts on the
financial performance and positions of the Group when they become effective, except for IFRS
18, which will mainly impact the presentation of consolidated financial statements.
Effective for
accounting periods beginning onor after
IFRS 18 Presentation and Disclosure in Financial
Statements 1 January 2027
IFRS 19 and
Amendments Subsidiaries without Public Accountability:
Disclosures 1 January 2027
Amendments to IAS 21 T