Investment did not meet expectations; Baio Family Interactive's losses will widen in 2025.

Recently, Hong Kong-listed company BaiAo Family Interactive issued a profit warning for 2025, estimating an annual net loss attributable to shareholders between 72 million and 79.5 million yuan, significantly larger than the net loss of 28 million yuan in 2024. This also means that BaiAo Family Interactive has been in loss for three consecutive years.

The expected loss is mainly due to a concentrated loss from an investment project. A core product of a game company previously invested in underperformed expectations, with revenue dropping sharply and ultimately ceasing operations. As a result, the group made a one-time full impairment of this investment and related prepayments, recognizing a loss of approximately 45 million yuan, including impairments on long-term equity investments and unrecoverable prepayments.

This loss directly involves Shanghai QuTang Network, which filed for bankruptcy reorganization in January. QuTang Network was once a star startup, receiving investments from FunPlus, Tiantian Network, and others. Its game “MimMimHa” officially launched in July 2025, with Tiantian Network responsible for publishing, available on both mobile and PC platforms. Less than three months after launch, reports of layoffs at QuTang Network emerged.

BaiAo Family Interactive also disclosed that despite the losses, the group’s core business remains solid, with healthy cash flow. Several long-established core products generate stable revenue, with some experiencing significant growth in 2025, demonstrating the effectiveness of the long-term IP operation strategy. The group continues to invest heavily in R&D, focusing resources on independent product development and publishing. It is expected that in 2026, two self-developed new games will be launched, one of which has shown excellent test performance and market potential.

Reported by: Wang Yanling, Nandu·Wancai She