Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 17.27, representing a potential upside of 55% from the current price of HKD 11.14 [6][7]. Core Insights - The company's gaming business shows stable growth, with a focus on cost reduction and efficiency improvements, while the education segment faces short-term challenges due to budget constraints [3][7]. - The company has a solid financial position with net cash of approximately RMB 1.5 billion and digital asset reserves including 12,000 Ethereum [7]. - The gaming segment's revenue for the first half of 2025 is projected to be RMB 1.74 billion, down 18% year-on-year, but showing signs of stabilization with a slight quarter-on-quarter decline [7]. - The education business, particularly Mynd.ai, reported revenue of RMB 640 million, impacted by tightening customer budgets, but the long-term digitalization trend in education remains intact [7]. Summary by Sections Financial Performance - Total revenue for the fiscal year ending December 31, 2023, was RMB 7.1 billion, with a projected decline of 19.13% in 2025 [7][8]. - Adjusted net profit for 2025 is estimated at RMB 480 million, reflecting a significant recovery of 105.28% compared to the previous year [7][8]. - The company plans to distribute an interim dividend of HKD 0.5 per share and aims to return at least HKD 600 million to shareholders through dividends and share buybacks over the next year [7]. Business Segments Gaming Business - The gaming segment's revenue is expected to stabilize, with MAU for "Magic Domain" increasing by 11% year-on-year, indicating improved user engagement [7]. - New game launches and expansions into overseas markets are anticipated to drive future growth [7]. Education Business - The education segment is under pressure due to reduced budgets in traditional markets, but the company is exploring emerging markets for growth opportunities [7]. - The long-term outlook for digital education remains positive despite short-term fluctuations [7].

Core Viewpoint - First Shanghai maintains a "buy" rating for NetDragon (00777), highlighting the stability of the company's gaming business and the potential of its education business market space [1] Group 1: 2025 Mid-Year Performance - NetDragon is projected to achieve revenue of 2.38 billion RMB in the first half of 2025, with a gross profit of 1.7 billion RMB, reflecting a gross margin increase of 2.9 percentage points to 69.5% year-on-year [2] - Operating expenses are expected to be 1.35 billion RMB, a decrease of 15.6% year-on-year, indicating the effectiveness of the company's cost optimization and efficiency improvement measures [2] - The company has a solid financial position with net cash of approximately 1.5 billion RMB and holds 12,000 Ethereum as digital asset reserves [2] - A mid-term dividend of 0.5 HKD per share has been announced, with a commitment to return at least 600 million HKD to shareholders through dividends and share buybacks over the next year [2] Group 2: Gaming Business - In the first half of 2025, the gaming and other businesses generated revenue of 1.74 billion RMB, showing signs of stabilization compared to the second half of 2024 [3] - The Monthly Active Users (MAU) of "Magic Domain" increased by 11% year-on-year, with mobile revenue also showing a quarter-on-quarter increase, indicating improved user engagement and retention [3] - The operating profit margin for the gaming business has rebounded to 28.8%, nearing historical normal levels [3] - Upcoming product launches include "Code MY" which began small-scale testing in August, and plans to expand "Magic Domain" and "Code Alpha" into multiple overseas markets [3] Group 3: Education Business - The Mynd.ai business generated revenue of 640 million RMB in the first half of 2025 [4] - In response to challenges from reduced global education technology spending, the company will continue to pursue cost optimization [4] - Despite weak performance in traditional markets in Europe and the US, the company is actively exploring emerging markets for new growth opportunities [4] - While short-term pressures from fluctuations in overseas education budgets remain, the long-term logic of increasing global education digital penetration remains unchanged [4]

Core Viewpoint - First Shanghai maintains a "buy" rating for NetDragon (00777), highlighting the robustness of the company's gaming business and the potential market space for its education business. The steady development of gaming IPs and the expansion into overseas markets, along with the successful promotion of tablet products, are expected to drive new performance growth for the company. The target price is set at HKD 17.27, indicating a 55% upside from the previous closing price [1] Group 1: 2025 Mid-Year Performance - NetDragon is projected to achieve revenue of RMB 2.38 billion in the first half of 2025, with a gross profit of RMB 1.7 billion and a gross margin increase of 2.9 percentage points to 69.5%, reflecting enhanced overall profitability [1] - Operating expenses are expected to be RMB 1.35 billion, a decrease of 15.6% year-on-year, indicating the effectiveness of cost optimization and efficiency improvement measures [1] - The company has a solid financial position with net cash of approximately RMB 1.5 billion and holds 12,000 Ethereum as part of its digital asset reserves [1] - A mid-term dividend of HKD 0.5 per share has been announced, with a commitment to return at least HKD 600 million to shareholders through dividends and share buybacks over the next year [1] Group 2: Gaming Business - In the first half of 2025, the gaming and other businesses generated revenue of RMB 1.74 billion, showing signs of stabilization and recovery compared to the second half of 2024 [2] - The Monthly Active Users (MAU) of "Magic Domain" increased by 11% year-on-year, with mobile revenue also showing a quarter-on-quarter increase, indicating improved user engagement and retention [2] - The operating profit margin for the gaming business has rebounded to 28.8%, nearing historical normal levels, due to ongoing cost reduction and efficiency enhancement efforts [2] - Upcoming product launches include "Code MY" which began small-scale testing in August, and plans to launch "Magic Domain" and "Code Alpha" in multiple overseas markets in the second half of the year [2] Group 3: Education Business - The Mynd.ai business generated revenue of RMB 640 million in the first half of 2025 [3] - In response to challenges from reduced global education technology spending, the company will continue to pursue cost optimization [3] - Despite weak performance in traditional markets in Europe and the US, the company is actively exploring emerging markets for new growth opportunities [3] - While short-term pressures from fluctuations in overseas education budgets remain, the long-term core logic of increasing digital penetration in global education remains unchanged [3]

Core Viewpoint - NetDragon has been actively repurchasing shares while facing significant declines in revenue and profit for the first half of 2025, indicating potential challenges in its business operations and market conditions [1][2]. Financial Performance - For the first half of 2025, NetDragon reported revenue of approximately 2.4 billion RMB, a year-on-year decrease of 27.9% [2][7]. - The net profit attributable to shareholders was 30 million RMB, down 92.5% year-on-year, primarily due to impairment losses on intangible assets and one-time expenses related to personnel restructuring [2][4]. - The company confirmed an impairment loss of approximately 920 million RMB related to cryptocurrency assets due to market volatility [2]. Shareholder Returns - NetDragon plans to distribute an interim dividend of 0.5 HKD per ordinary share, representing a 25% increase year-on-year [2][6]. - The company aims to provide a total distribution of no less than 600 million HKD to shareholders over the next twelve months through dividends and share repurchases [2][6]. Employee and Operational Changes - The number of employees at NetDragon decreased from 6,123 at the end of the first half of 2024 to 3,408 at the end of the first half of 2025, with a significant reduction in R&D personnel from 3,165 to 1,556 [4][6]. Revenue Breakdown - Revenue from gaming and application services amounted to 1.7 billion RMB, accounting for 73.0% of total revenue, down 18.1% year-on-year [7]. - Revenue from the Mynd.ai business was 641 million RMB, representing 26.9% of total revenue, with a year-on-year decrease of 45.7% due to prolonged market demand adjustments [7]. Product Development - NetDragon's flagship games include popular IPs such as "Magic Domain" and "Soul of Heroes," with the mobile game "Magic Domain Pocket Edition" showing a stable performance since 2025 [8]. - The new game "Magic Domain Legend" successfully launched in the mini-game market in the first half of 2025, and the new title "Code MY" began small-scale testing in August 2025 [10].

浦银国际主要观点如下： 游戏业务下半年预计环比平稳： 公司主动对游戏业务进行调整，1H25游戏及应用服务业务收入人民币17亿元，其中游戏收入环比跌幅 收窄至约2%，逐渐趋于稳定。公司持续提升玩家体验，用户增长和活跃度有所提升。得益于降本增 效，经营利润率环比回升至28.8%，接近过去常态化水平。产品储备方面，《代号MY》已于8月开启小 规模测试，有望明年上线;《魔域》《代号Alpha》计划在下半年陆续拓展多个海外市场;《终焉誓约》拓 展下沉市场等更多渠道;《机战》手游预计明年上线;《魔域传说》于上半年上线小游戏版本。预计公司 游戏业务下半年收入有望环比维持平稳，2026年恢复同比增长态势。 浦银国际发布研报称，调整网龙(00777)FY25E/FY26E收入预测至48/50亿元，维持目标价13港元，对应 FY26E10xP/E。公司目前账面净现金约人民币15亿元，持有12,000个以太币(当前对应约4亿港元)，承诺 的6亿港元分派对应回报率约10%，具备一定吸引力，维持"买入"评级。 事件： 公司上半年收入波动，主要受游戏业务调整及教育业务疲软拖累;净利润波动，受到资产减值以及一次 性人员优化费用影响，调整后 ...

Core Viewpoint - The report from浦银国际 indicates a revision of NetDragon's revenue forecasts for FY25E and FY26E to RMB 4.8 billion and RMB 5.0 billion respectively, maintaining a target price of HKD 13, corresponding to a FY26E P/E of 10x, highlighting the company's financial stability and potential for attractive returns through dividend distribution [1] Group 1: Financial Performance - The company experienced revenue fluctuations in the first half of the year, primarily due to adjustments in the gaming business and weakness in the education sector, with an adjusted net profit of RMB 280 million [2] - The company announced an interim dividend of HKD 0.5 per share and plans to distribute no less than HKD 600 million over the next 12 months, indicating a return rate of approximately 10% [1][2] Group 2: Gaming Business Outlook - The gaming business is expected to stabilize in the second half of the year, with first half revenue from gaming and application services at RMB 1.7 billion, and a reduced quarter-on-quarter decline of approximately 2% in gaming revenue [2] - The company is enhancing player experience, leading to growth in user numbers and activity levels, with an operating profit margin recovering to 28.8%, nearing historical norms [2] - Upcoming product launches include "Code MY" in small-scale testing, with plans for multiple overseas market expansions for "Magic Domain" and "Code Alpha" in the second half, and a mobile game "Mecha Battle" expected to launch next year [2] Group 3: Education Business Outlook - The education business is projected to approach break-even in EBITDA by the fourth quarter, with first half revenue from Mynd.ai at RMB 640 million [3] - The company is implementing cost optimization measures to mitigate the impact of a sluggish education technology market, while exploring emerging markets to counteract declines in the US and European markets [3] - Signs of recovery are noted in the European market, and with stable tariffs in the US, school procurement budgets are expected to rebound [3]

Group 1 - The company NetDragon (00777) announced a share buyback plan, intending to repurchase 100,000 shares at a total cost of HKD 1,120,900 [1] - The buyback price range is set between HKD 11.11 and HKD 11.31 per share [1]

Core Viewpoint - NetDragon (00777.HK) announced a share buyback plan, indicating confidence in its stock value and future prospects [1] Group 1: Buyback Details - The company will spend HKD 1.121 million to repurchase 100,000 shares [1] - The buyback price per share ranges from HKD 11.11 to HKD 11.31 [1]

Group 1 - The company NetDragon (00777) announced a share buyback on September 9, 2025, spending HKD 1.1209 million to repurchase 100,000 shares [1] - The buyback price ranged from HKD 11.11 to HKD 11.31 per share [1]

FF305 第 1 頁 共 6 頁 v 1.3.0 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 網龍網絡控股有限公司 呈交日期： 2025年9月9日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 不適用 | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 00777 | 說明 | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | 事件 | 已發行股份（不包括庫存股份）變動 | | 庫存股份變動 | | 已發行股份總數 | | | | 已發行股份（不包括庫存股份） ...