Preview of new stocks on the US stock market | Double revenue and smooth profitability, will Black Pupil Technology (DKI.US) be the next "small and beautiful" target in the US stock market game?

When it comes to the second quarter of Q2, a "different" company has emerged in the US stock market's Chinese concept stock IPO sector, namely Dark Iris Technology in the gaming industry. In fact, since 2021, very few domestic gaming companies have chosen to list on Nasdaq, making the appearance of a mobile game company particularly conspicuous amidst the current landscape of "technology + pharmaceutical + industrial" dominating the Chinese concept stock IPO industry. A new member of the Chinese concept stock mini IPO Although the external environment has been volatile this year, the number of Chinese concept stock IPOs remains high. Data shows that this year, a total of 31 Chinese companies have listed on the US stock market through IPOs, raising approximately $772 million, representing a 63% increase in the number of IPOs compared to the same period last year. However, due to the special circumstances, large IPOs of Chinese concept stocks have been relatively scarce this year, with a noticeable increase in small IPOs. The total amount raised by Chinese concept stocks has decreased by 55% year-on-year. The combined market value of all new IPO stocks this year is less than $10 billion, with an average fundraising of less than $25 million and an average issuance ratio of around 8%. Among them, only Cha Ji (CHA.US) raised more than $200 million. The rest of the Chinese concept stocks raised funds have not exceeded $15 million, with 22 companies raising less than $10 million. As for Dark Iris Technology, the company is registered in the Cayman Islands and conducts business through its Hong Kong subsidiaries Quantum Arts Co., Limited and Hong Kong Stellar Wisdom Co., Limited. As a comprehensive technology company, the company mainly engages in the development, distribution, and operation of mobile digital games through various third-party digital platforms. Its business scope includes game design, programming, and image production, as well as the distribution and operation of mobile games on multiple platforms. Dark Iris Technology is planning to issue 1.5 million Class A common shares, with an initial offering price of $4 per share, raising $6 million. Based on the proposed price, Dark Iris' market value will reach $70 million. According to the prospectus, approximately 40% of the funds raised will be used for expanding and rewarding the operating team, 40% will be invested in product development, and the remaining funds will be used for general corporate purposes. In terms of equity structure, Dark Iris Technology had a total share capital of 16 million shares before going public, with 10.55 million Class A shares and 5.44 million Class B shares. After going public (assuming that the over-allotment option is not exercised), the Class A shares will increase to 12.05 million shares, with a total share capital of 17.5 million shares. CEO Hong Zhifang will continue to control approximately 31.14% of the equity with 90.04% of the voting rights by holding all Class B shares after going public. In terms of business divisions, Dark Iris Technology's Hong Kong subsidiary Quantum focuses on game development and distribution, while another Hong Kong subsidiary Stellar mainly engages in video marketing on social media and video content platforms like YouTube. In fact, Dark Iris Technology also has a subsidiary in Guangzhou, TuringGame, which is mainly focused on mobile game distribution and intellectual property resource management. Turing has always existed as a cost center for the company, relying on R&D personnel to support the overall business of the company. However, considering that most of the company's revenue comes from overseas, and Turing's revenue accounts for less than 3% of the company's total revenue, the company has gradually shifted its focus towards the overseas market centered in Hong Kong since the beginning of this year to better align with its business nature and reduce costs. In terms of financial performance, the prospectus shows that the company had revenues of $3.95 million, $7.92 million, and $5.2 million in the first six months of the 2023 fiscal year, 2024 fiscal year, and the first six months of the 2025 fiscal year, respectively, with corresponding net profits of -$1.257 million, $1.096 million, and $0.907 million. And in the 12 months ending on March 31st of this year, the revenue was $10 million. The company's revenue doubled in the 2024 fiscal year, mainly due to the launch of new games such as "Xianyuan Wushuang" and "Floating Myth", with monthly paying users increasing from 31,100 in 2023 to 101,700 in 2024. After clearly defining its international expansion strategy, Dark Iris Technology's performance also showed a significant improvement. With the company achieving profitability in the 2024 fiscal year, the net profit for the first half of the 2025 fiscal year reached 82.73% of the full year of the previous year. Entering the fast lane of international gaming This year, the gaming industry has seen frequent policy changes, driving the domestic gaming industry into a new cycle of international expansion and opening up growth opportunities for many game developers. From a policy perspective, in January, the General Office of the State Council issued "Several Economic Policies to Promote High-Quality Development of Culture"; in April, during a press conference introducing the "Accelerated Promotion of Comprehensive Trial Programs for Expanding Opening Up in the Service Industry" by the State Council Information Office, the importance of "developing game international expansion business, layout of the entire industry chain from IP creation to game production, distribution, and overseas operation" was emphasized, injecting vitality into the gaming industry. At the local level, in June, the Zhejiang Provincial Department of Commerce and 17 other departments jointly issued "Several Measures to Support the International Expansion of Games" on June 10, proposing more than 20 specific measures to promote game international expansion from four aspects: promoting the improvement of the game industry level, strengthening the support of game international expansion platforms, improving the ecosystem services for game international expansion, and strengthening the guarantee of game international expansion elements. Driven by a series of policy moves, China's game international expansion has clearly entered the fast lane. According to the "2024 China Game International Expansion Research Report" data released earlier, China's self-developed game overseas revenue reached $18.557 billion in 2024, a year-on-year increase of 13.39%, reversing the previous two years of decline. Looking at the performance of the corresponding overseas markets in 2024, according to the Sensor Tower's 24Q4 Digital Market Index report, in the 24Q4 quarter, global in-app purchase monetization (IAP) reached $39.4 billion, a 13.5% year-on-year increase, reaching a historical high and achieving the fastest growth in the past three years. Mobile game revenue stabilized, with IAP reaching $20.1 billion, a 2.6% year-on-year increase, maintaining a steady growth of 2-4% for six consecutive quarters. During this period, developed markets in the world performed outstandingly, with Japan's IAP growing by 13%, achieving its best performance in mobile games since 23Q1; the United States' IAP reached $13.55 billion, a 12% year-on-year increase; and Germany's IAP grew at a rate of 22%, ranking first in the European market. In this context, Dark Iris Technology, focused on the mobile gaming sector, clearly shifting to the overseas market in 2025, seems to be timely. It is worth noting that the founder of Dark Iris Technology, Hong Zhifang, has 20 years of experience in the Internet industry, leading a team that combines elements of Eastern and Western culture to create popular games like "Da Hua Wei Shu Wu" and "Nine Skies Snake Records". The company's core business covers game development and game distribution and operation. In terms of game development, Dark Iris Technology mainly creates differentiated products through its own R&D team of 8 people and external developers. The prospectus shows that one of its core games, "Da Hua Wei Shu Wu," had revenues of $1.29 million in the first half of 2025, with a cumulative number of players reaching 288,800; in terms of game distribution and operation, the company has obtained licensing for 12 third-party games, such as the MMO "Nine Skies Snake Record," which generated revenue of $1.88 million in the 2024 fiscal year, mainly expanding the Hong Kong, Macau, and Taiwan markets through language adaptation and character costume localization. Currently, amidst the volatility of technology stocks, some funds in the US stock market are beginning to favor gaming targets in new product cycles, showing a clear rebound in the sector. In this context, Dark Iris Technology, with a clear international expansion strategy and rapid revenue growth, may become one of the "small and beautiful" choices in the US gaming sector.