Executive Summary / Key Takeaways

• Baiya International Group (BIYA) is undergoing a significant strategic transformation, pivoting from its established human resource (HR) technology foundation into the burgeoning Web3 and digital asset sectors through a key acquisition.
• The company's core HR operations demonstrated a "resilient" performance in fiscal year 2024, achieving 10.7% revenue growth and a substantial improvement in profitability, laying a stable groundwork for future expansion.
• BIYA has provided strong guidance for its core operating entity in 2025, forecasting over RMB 300 million in revenue and more than RMB 25 million in profit, signaling robust organic growth expectations.
• The acquisition of Starfish Technology-FZE, expected to close in Q4 2025, introduces a decentralized liquidity protocol for digital assets, marking BIYA's entry into fintech and Web3, and offering a new avenue for growth and technological differentiation.
• While the strategic pivot presents substantial opportunities, investors should monitor execution risks associated with integrating new technologies and navigating the complex competitive and regulatory landscapes of both HR tech and digital assets.

Baiya International Group's Evolving Landscape

Baiya International Group Inc. (NASDAQ: BIYA), established in 2017 and headquartered in Shenzhen, China, has built its foundation as a human resource (HR) technology company. The company leverages a cloud-based internet platform to deliver a comprehensive suite of one-stop crowdsourcing recruitment and SaaS-enabled HR solutions to businesses and organizations across China. Its core offerings span job matching, entrusted recruitment, project outsourcing, and labor dispatching. Beyond these, BIYA provides essential HR management services, including payroll and advances, electronic contracts, and pay slips, alongside payment assurance through its proprietary Gongwuyuan Platform. The company also engages in HR management consulting, staffing, application research and development, logistics, shipping, storage, education consulting, internet information technology development, and supply chain management services.

The company's overarching strategy has historically centered on providing integrated, end-to-end HR solutions, differentiating itself through a broad service portfolio that extends beyond basic recruitment. This integrated service model, supported by its cloud-based platform, aims to foster stronger customer loyalty and potentially recurring revenue through bundled offerings. In a dynamic market like China, where demand for tech staffing is influenced by broader industry trends such as AI adoption and the expansion of data centers, BIYA's ability to offer comprehensive solutions positions it to capture diverse client needs.

The Strategic Pivot: Embracing Web3 and Digital Assets

A pivotal development in BIYA's trajectory is its strategic expansion into the digital asset and fintech sectors. On September 19, 2025, Baiya International Group entered into a stock purchase agreement to acquire 100% of the equity interests in STARFISH TECHNOLOGY-FZE, a software development company based in the United Arab Emirates. This acquisition, anticipated to close in the fourth quarter of 2025, is a significant step in BIYA's broader Web3 strategy.

Starfish's flagship platform, UpTop.Meme, is a decentralized liquidity protocol built on the BNB Chain. This technology provides on-chain liquidity services for a range of digital assets, including crypto-native assets, tokenized U.S. equities, and digital bonds. For investors, this acquisition represents a clear commitment from BIYA to diversify its revenue streams and tap into the high-growth potential of the digital economy. While specific quantifiable benefits of UpTop.Meme, such as transaction speed or cost advantages, are not detailed, the strategic intent is to leverage decentralized finance (DeFi) technology to expand market reach and enhance technological capabilities. The purchase price for this acquisition will be paid in the form of 2.32 million newly-issued Class A ordinary shares of the company, which will result in dilution for existing shareholders, representing approximately an 18.5% increase in shares outstanding based on current figures.

Competitive Positioning in a Dual-Front Market

Baiya International Group operates in a competitive landscape across two distinct and evolving markets: traditional HR technology in China and the emerging global digital asset space.

In the traditional HR technology sector, BIYA faces established players such as 51job Inc. (JOBS) and Zhaopin Limited (ZPIN), both prominent online recruitment platforms in China, as well as global staffing giants like ManpowerGroup (MAN). BIYA's competitive strengths lie in its integrated service model, which combines recruitment with consulting and logistics, and its regulatory expertise within the Chinese market. This allows BIYA to offer tailored, hands-on support that can foster stronger customer loyalty and potentially higher margins through bundled offerings, particularly in complex projects. For instance, its comprehensive approach could appeal to businesses seeking end-to-end HR solutions, differentiating it from competitors that primarily focus on digital recruitment platforms.

However, BIYA's newer market presence and relatively smaller scale present vulnerabilities. Competitors like 51job and Zhaopin, with their established digital platforms and extensive user networks, often demonstrate greater efficiency in candidate matching and benefit from more consistent revenue expansion and cash flow generation. ManpowerGroup, with its vast international network, offers broader access to talent pools and global reach. BIYA's gross profit margin of 10.99% and operating profit margin of 0.50% (TTM as of September 30, 2025) reflect a business model that may incur higher operational costs compared to more digitally streamlined competitors, potentially impacting overall efficiency and profitability.

The entry into the Web3 and digital asset space through the Starfish acquisition introduces BIYA to a new competitive arena. Here, it will contend with existing decentralized finance protocols and other fintech innovators. This diversification offers significant growth potential but also exposes BIYA to new competitive pressures and the inherent regulatory complexities of the crypto market. The success of this pivot will depend heavily on the effective integration of Starfish's technology and BIYA's ability to carve out a distinct competitive advantage in this rapidly evolving sector.

Financial Performance: A Turnaround in Progress

Baiya International Group's financial performance has shown a notable turnaround in recent periods, following a challenging phase. From 2020 to 2023, the company experienced variability, including net losses from continuing operations of approximately -$1.26 million in 2022 and -$1.02 million in 2023. Total revenue also saw a decline from $20.82 million in 2021 to $11.57 million in 2023.

However, fiscal year 2024 marked a significant improvement. The company reported total revenue of $12.81 million, representing a 10.7% growth from the previous year. While the net income from continuing operations, net of minority interest, for 2024 was -$8,750, this figure represents a substantial reduction in losses compared to prior years, reflecting a "resilient performance" and determined efforts to navigate China's evolving recruitment market. The gross profit for fiscal year 2024 grew by 75.4%, underscoring the effectiveness of strategic initiatives, particularly a focus on project outsourcing services.

As of September 30, 2025, key financial ratios indicate a company with improving liquidity and moderate leverage. The current ratio stands at 1.01, suggesting adequate short-term liquidity, while the debt-to-equity ratio is 60.74%. Cash and cash equivalents have significantly improved, rising to $1.67 million at the end of 2024 from $31,973 in 2023, and further to $1.83 million on a TTM basis as of September 30, 2025.

Operating cash flow also turned positive in 2024, reaching $1.58 million, a substantial recovery from a -$1.80 million outflow in 2023. This positive free cash flow of $1.58 million in 2024 further strengthens the company's financial position.

Outlook and Growth Catalysts

Baiya International Group's outlook is characterized by ambitious growth targets and strategic expansion. Following its successful listing on Nasdaq in March 2025, the company has observed a steady rise in brand influence and accelerated business growth.

For 2025, the company has provided strong guidance for its core operating entity, Shenzhen Gongwuyuan Network Technology Co., Ltd. This entity is expected to generate over RMB 300 million in revenue and more than RMB 25 million in profit by the end of 2025. This forecast implies a significant acceleration in both top-line and bottom-line performance for its HR technology business, building on the momentum from 2024.

The Starfish Technology-FZE acquisition is a critical catalyst for future growth, positioning BIYA to expand into the high-potential digital asset and fintech sectors. This strategic pivot is expected to open new revenue streams and enhance the company's technological capabilities, aligning with the broader Web3 strategy. While the partial waiver of IPO lock-up restrictions for certain shareholders in June 2025 could introduce some selling pressure, it also increases the float and liquidity of BIYA's shares.

Risks and Challenges

Despite the promising outlook, Baiya International Group faces several pertinent risks and challenges. The successful execution of its strategic pivot into digital assets is paramount. Integrating Starfish Technology-FZE and effectively competing in the nascent and rapidly evolving Web3 market presents significant technological, operational, and regulatory complexities. The digital asset space is subject to intense scrutiny and evolving regulatory frameworks globally, which could impact the profitability and operational flexibility of UpTop.Meme.

In its traditional HR technology segment, BIYA continues to operate in a highly competitive environment. Established players with greater scale and digital prowess, along with the emergence of AI-powered recruitment platforms and enterprise HR software, pose ongoing threats to market share and pricing power. Furthermore, BIYA's dependence on the Chinese economy means its performance is susceptible to economic fluctuations and labor market adjustments within the region. The dilution from the issuance of new shares for the Starfish acquisition is also a factor for existing investors to consider.

Conclusion

Baiya International Group is at a transformative juncture, strategically leveraging its established HR technology business as a springboard for an ambitious entry into the Web3 and digital asset sectors. The company's "resilient" performance in 2024, marked by significant revenue growth and a substantial reduction in losses, provides a solid operational and financial foundation. The optimistic 2025 guidance for its core HR entity further underscores a positive trajectory for its traditional business.

The acquisition of Starfish Technology-FZE and its decentralized liquidity protocol, UpTop.Meme, represents a bold move to diversify and capture growth in the burgeoning fintech landscape. This strategic pivot, while promising, introduces new layers of complexity and risk, particularly concerning integration, competition in a new market, and navigating evolving regulatory environments. For investors, BIYA presents a compelling narrative of a company actively reshaping its future, with the potential for substantial upside if its dual strategy of strengthening its HR tech core and successfully expanding into Web3 is executed effectively. The interplay between its foundational HR technology and its emerging digital asset capabilities will be critical to watch as BIYA seeks to establish a unique competitive position in both domains.