US Stock IPO Outlook | Revenue doubled and profits were successful. Will Dark Eye Technology (DKI.US) be the target of the next “small but beautiful” US stock game?

As of the Q2 quarter, the US stock market IPO welcomed an “alternative” company, Black Eye Technology in the game industry. In fact, since 2021, few domestic game companies have chosen to go public on the NASDAQ. In the context of the current Chinese securities IPO industry pattern showing the trifecta of “technology+pharmaceutical+industry”, the emergence of a mobile game company is particularly prominent.

A new member of China Securities's small-cap IPO

Although the external environment continues to fluctuate this year, the number of China Securities IPOs is still quite high. According to the data, since this year, a total of 31 Chinese companies have listed IPOs in the US stock market, raising a total of about 772 million US dollars. Compared with the same period last year, the number of IPOs increased 63% year on year.

However, due to special environmental impacts, China Securities has shown a situation where large IPOs have been relatively deserted since this year, and there has been a marked increase in small IPOs. The overall amount of capital raised by China Securities was reduced by 55% over the same period last year. The total market value of IPOs issued during the year was no more than 10 billion US dollars, and the average capital raised was less than 25 million US dollars, and the average issuance ratio was about 8%. Of these, only CHA.US (CHA.US) raised more than 200 million US dollars, while the rest of China Securities raised almost no more than 15 million US dollars. Of these, 22 raised less than 10 million US dollars.

Back to Dark Eye Technology, the company was incorporated in the Cayman Islands and previously operated through Hong Kong subsidiaries Quantum Arts Co., Limited and Hongkong Stellar Wisdom Co., Limited. As a comprehensive technology enterprise, the company is mainly engaged in the development, distribution and operation of mobile digital games through various third-party digital platforms. The scope of business includes game design, programming and image production, as well as the distribution and operation of mobile games on various platforms.

This time, Kurohime Technology plans to issue 1.5 million Class A common shares. The initial issue price is expected to be 4 US dollars/share, and the capital raised is 6 million US dollars. At the proposed price, DarkIris will have a market capitalization of $70 million. According to the prospectus, the company will raise about 40% of the capital at that time to expand the operation team and reward the existing team, 40% will be invested in product development, and the rest will be used for general corporate purposes such as working capital.

Judging from the shareholding structure, Kurohimi Technology's total share capital before listing was 16 million shares, including 10.554 million Class A shares and 54.496 million Class B shares. After listing (assuming overallotment rights are not exercised), the total share capital reached 17.5 million shares. By holding all Class B shares, CEO Hong Zhifang will still control 90.04% of voting rights with about 31.14% of the shares after listing.

In terms of business division, Quantum, the Hong Kong operating subsidiary of Black Eye Technology, focuses on game development and distribution, while Stellar, another Hong Kong operating subsidiary, is mainly engaged in video marketing business on social media and video content platforms (such as YouTube).

In fact, historically, Dark Eye Technology also has a Guangzhou subsidiary, TuringGame, which mainly focuses on mobile game distribution and intellectual property resource management. Furthermore, Turing has always existed as the company's cost center, relying on R&D personnel to support the company's overall business. Since then, considering that most of its revenue comes from overseas, Turing's revenue accounts for less than 3% of the company's revenue. In order to suit the nature of the company's business and reduce costs and increase efficiency, the company has gradually switched its business focus to overseas markets centered around Hong Kong since the beginning of this year.

In terms of the company's performance, the prospectus shows that the company's revenue for the past six months of fiscal year 2023, fiscal year 2024, and fiscal year 2025 was 3.9011 million, 7.925 million, and 5.2047 million US dollars, respectively. The corresponding net profit was -1,2578 million, 1.09.68 million, and 9074 million US dollars, respectively. And the revenue for the 12 months ending March 31 of this year was $10 million.

Among them, the company's revenue for the 2024 fiscal year doubled year-on-year, mainly due to the launch of new games such as “Xianyuan Warriors” and “Floating Myth,” and the number of monthly paying users increased from 31,100 in 2023 to 101,700 in 2024. Meanwhile, after clarifying the overseas strategy, Kuromitsu Technology's performance also improved markedly. Among them, on the basis that the company achieved profit in fiscal year 2024, net profit for the first half of fiscal year 2025 alone reached 82.73% of the full year of the previous year.

Step on the fast track of the game to go out to sea

Since this year, game industry policies have been introduced frequently, pushing domestic games to go overseas into a new cycle and opening up room for growth for many game manufacturers.

From a policy perspective, the General Office of the State Council issued “Certain Economic Policies to Promote High-Quality Cultural Development” in January of this year; in April, the Information Office of the State Council held a press conference to introduce the “Comprehensive Pilot Work Plan to Accelerate the Expansion and Opening-up of the Service Industry”, which emphasized the need to “develop game overseas business, layout the entire industry chain layout from IP construction to game production, distribution, and overseas operations” to inject strength into the game industry.

Locally, in June of this year, the Zhejiang Provincial Department of Commerce and 17 other departments jointly issued “Certain Measures to Support Game Going Overseas” on June 10, proposing more than 20 specific measures to promote game overseas in four areas: promoting the upgrading of the game industry's energy level, strengthening support for game overseas platforms, improving ecological services for games going overseas, and strengthening the guarantee of game going overseas.

Driven by a series of policy combinations, domestic gaming overseas has clearly entered the fast track. According to data from the “2024 Research Report on Chinese Games Going Overseas” issued earlier, overseas revenue for games developed independently by China reached 18.557 billion US dollars in 2024, an increase of 13.39% over the previous year, reversing the previous two consecutive years of decline.

Looking at the corresponding overseas market performance in 2024, according to the 24Q4 digital market index report data released by Sensor Tower, in the 24Q4 quarter, global in-app purchase monetization (IAP) reached 39.4 billion US dollars, an increase of 13.5% over the previous year, reaching a record high, achieving the fastest growth in the past three years. Mobile gaming revenue, on the other hand, stabilized, with an IAP of US$20.2 billion, up 2.6% year over year), but continued to maintain steady growth of 2%-4% for 6 quarters.

During this period, the developed world market performed well. Among them, Japan's IAP grew 13% year on year, and its mobile game reached its best performance since 23Q1; while the US IAP reached 13.55 billion US dollars, up 12% year on year; while the German IAP grew 22% year on year, ranking first in the European market.

In this context, it is clearly the right time for Black Eye Technology, which focuses on mobile gaming, to fully switch to overseas markets in 2025.

The Zhitong Finance App learned that Hong Zhifang, the founder of Black Eye Technology, has 20 years of experience in the Internet industry. He can lead the team to integrate elements of Eastern and Western culture and create a variety of popular games such as “The Legend of Wei Shuwu” and “The Record of the Nine Spirits”.

The company's core business covers two major sectors: game development and game distribution and operation. In terms of game development, Dark Eye Technology mainly creates differentiated products through a self-research team of 8 people and joint external developers. According to the prospectus, “Wei Shuwu”, one of its core games, had revenue of 1.29 million US dollars in the first half of 2025, with a cumulative total of 288,800 players; in terms of game distribution and operation, the company obtained 12 third-party game licenses, such as the MMO “The Legend of the Nine Dragons”, which earned 1.88 million US dollars in fiscal year 2024, which mainly expanded the Hong Kong, Macau, and Taiwan markets through language adaptation and localization of character costumes.

Currently, in a situation where technology stocks continue to fluctuate, some capital in the US stock market is beginning to prefer game targets entering the new product cycle, and the sector is clearly recovering. In this context, Dark Hitomi Technology, which has clarified its overseas strategy and achieved rapid revenue growth and profit, may be expected to become one of the “small but beautiful” choices in the US gaming sector.