BAIOO Family Interactive : UNAUDITED KEY OPERATING METRICS FOR THE THREE MONTHS ENDED 31 MARCH 2021

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2100)

UNAUDITED KEY OPERATING METRICS FOR THE THREE MONTHS ENDED 31 MARCH 2021

This announcement is voluntarily made pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

Unaudited Key Operating Metrics for the Three Months Ended 31 March 2021

The board of directors (the "Board") of BAIOO Family Interactive Limited ("BAIOO" or the "Company") is pleased to announce the unaudited key operating metrics of the Company, its subsidiaries and its controlled entities in the PRC (the "Group") for the first quarter of 2021:

	For the three months ended	For the
				three months
			Quarter-	ended	Year-
	31 March	31 December	over-quarter	31 March	over-year
	2021	2020	change	2020	change
		(QAA & QPA in millions, ARQPA in RMB)
QAA 1	10.5	9.8	7%	17.7	(41%)
QPA2	1.6	1.3	23%	2.2	(27%)
ARQPA3	135.5	137.7	(2%)	146.9	(8%)

Notes:

1. QAA, which is defined as a registered account that was accessed at least once during a quarter.
2. QPA, which refers to the number of paying accounts for the virtual worlds in web-based platforms and mobile games in the relevant quarter.
3. ARQPA, is calculated as revenue from the virtual worlds in web-based platforms and mobile games in a particular period divided by the total number of QAPs in that quarter.

1

In the first quarter of 2021, the Company's quarterly active accounts ("QAA")1 were 10.5 million, representing an increase of 7% compared with the previous quarter, and a decrease of 41% from the same quarter in 2020. Quarterly paying accounts ("QPA")2 were 1.6 million, representing an increase of 23% compared with the previous quarter, and a decrease of 27% from the same quarter in 2020. The quarter-over-quarter increases in QAA and QPA were primarily due to the

Company's continuous efforts to expand its domestic and overseas businesses, and optimize its mobile game and web game operations. The revenue from Aola Star Mobile (「奧拉星手遊」),

one of the Company's signature mobile games that was launched over a year ago, in February

2021 achieved a record high since 2020 as the Company continued to refine the game. Two other signature mobile games, Shiwuyu (「食物語」) and Zaowufaze II (「造物法則二 : 先鋒英雄」),

also continued to develop steadily. The year-on-year decreases were primarily due to the ongoing migration of users from personal computers to mobile devices. In addition, in the first quarter of last year, the Company launched various promotional activities to stimulate performance of the three abovementioned mobile games since they were still in their expansion phases.

The Company's average revenue per quarterly paying accounts ("ARQPA")3 was RMB135.5, which remained almost the same with the previous quarter, and represented a decrease of 8% compared with the same quarter in 2020. The decrease was because the three mobile games launched by the Company were still in their expansion phases in the first quarter of last year. The operating performance of these games in the first quarter of 2021 reflected a stabilization in usage. In addition, the rise of the "stay-at-home economy" in the first quarter last year drove users' in- app consumption. As people's lives have returned to normal, users have gradually returned to other traditional forms of entertainment.

In the first quarter of 2021, the Company strove to increase its investment in research and development ("R&D") and enhance its mobile game business. By constantly updating in-game content and launching versions with new themes, the Company was able to offer higher quality and more diverse gaming experiences to users. As the Company continued to deepen its businesses at home and abroad, its various mobile games have been well-received by a wide range of users and the number of registered users continued to increase. While actively developing and operating its mobile games, the Company continued to strengthen user loyalty and contribution to revenue of its core web games by constantly updating and innovating in-game content. In January 2021, Tencent Holdings Limited ("Tencent") acquired 12% equity interest in BAIOO, becoming a major shareholder of BAIOO. The investment demonstrated Tencent's recognition and confidence in BAIOO's business model and development prospects. The two companies will cooperate in areas such as R&D, game publication and game operation, in order to create synergies.

2

The Company will continue to invest in R&D, exploit the value of its existing intellectual property

("IP"), and deepen its development in niche game segments, all in an effort to provide high-quality products and services to users. On 15 April 2021, Legend of Aoqi Mobile (「奧奇傳說手遊」), a

pet collection and raising game that was adapted from the Company's web game IP, was launched in China. The "Legend of Aoqi" IP had been operating for over 9 years and has accumulated more than 200 million registered users. Since pre-registration for Legend of Aoqi Mobile (「奧奇傳說手 遊」) started in April 2020, it has accumulated over 7.8 million pre-registered users. The game has topped the game platform TapTap's pre-registration rankings, ranked in the top 5 of Bilibili's top search list several times, and has won multiple industry awards. On the day the game was launched, it ranked at the top of multiple industry lists, including No. 1 among free iOS games, No. 13 among best-selling iOS games, as well as No. 1 on the TapTap Android popular games and new games lists and No. 2 on the TapTap iOS popular games and new games lists. This high acclaim reflects

the strong interest and support in the game among users. BAIOO also has an exciting pipeline of upcoming games, such as Aobi Island Mobile (「奧比島手遊」) and Dawn: Azure Aria (「拂曉」),

which are expected to be launched this year. The new games are expected to help the Company drive business and revenue growth. BAIOO will continue to expand its mobile game business in China and overseas, with an aim to consolidate the Company's market position in the fast-growingpan-entertainment industry.

The operating data disclosed above has been prepared on the basis of internal management records. It has not been audited or reviewed by external auditor. The data disclosed may be subject to change and may differ from the audited or unaudited combined financial statements to be published by the Group on an annual or half-yearly basis. As such, the above data is provided for reference only.

Investors are advised not to rely on the information disclosed, and to exercise due caution when dealing in the securities of the Company. When in doubt, investors are advised to seek advice from professional financial advisers.

By order of the Board

BAIOO Family Interactive Limited

DAI JIAN

Chairman, Chief Executive Officer and Executive Director

Hong Kong, 26 April 2021

As at the date of this announcement, the executive directors of the Company are Mr. DAI Jian (Chairman and Chief Executive Officer), Mr. WU Lili, Mr. LI Chong and Mr. WANG Xiaodong; the independent non-executive directors of the Company are Ms. LIU Qianli, Dr. WANG Qing and Mr. MA Xiaofeng.

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