Investment Rating - The investment rating for the company is downgraded to Neutral with a target price reduced from HKD 14.00 to HKD 10.20, indicating a potential downside of 2.7% [2][3][11]. Core Insights - The company's performance in the short term is under pressure, particularly in its gaming and education segments, with revenue growth facing uncertainties. The AI+ strategy is expected to optimize operational costs, but short-term profits may still decline. The focus is on the improvement of the education market in Europe and the US, as well as the anticipated recovery in gaming revenue in the second half of the year [2][7][8]. Financial Performance Summary - **2024 Performance**: Total revenue is projected to decline by 15% year-on-year to RMB 6,047 million, with gaming and Mynd.ai revenues expected to decrease by 6% and 28% respectively. Adjusted net profit is forecasted to drop by 25% to RMB 718 million [7][8]. - **2025 Forecast**: Revenue is expected to further decline to RMB 5,241 million, with gaming revenue at RMB 3,555 million and Mynd.ai at RMB 1,685 million, reflecting a 26% reduction in both segments. Adjusted net profit is anticipated to be RMB 530 million, a 56% decrease [6][14]. - **Profitability Metrics**: The adjusted operating profit margin is projected to decrease significantly from 19.1% in 2024 to 11.0% in 2025, while the adjusted net profit margin is expected to drop from 16.9% to 10.1% [6][14]. Market Position and Trends - The company is navigating a challenging environment, with strategic adjustments in its gaming operations and a focus on cost reduction to mitigate profit pressures. The anticipated launch of new games in the second half of 2025 is expected to support a recovery in gaming revenue [2][7][8].

Core Viewpoint - The company has established a dual-core business strategy of "AI + Gaming" and "AI + Education," accelerating AI research and global expansion to capture growth opportunities brought by the AI wave [1][10]. Financial Performance - For the fiscal year 2024, the company reported revenue of RMB 60.47 billion, a year-on-year decline, primarily due to product optimization in the gaming sector and a demand pullback in its subsidiary Mynd.ai [1]. - Gross profit reached RMB 39.42 billion, with a gross margin of 65.2%, an increase of 3.3 percentage points year-on-year [1]. - EBITDA profit was RMB 14.18 billion, up 7.1% year-on-year, while net profit attributable to shareholders was RMB 6.46 billion, reflecting a 17.4% increase [1]. - The company declared a final dividend of HKD 0.50 per share, a 25% increase from the previous year [1]. AI Integration in Business - The company has fully established AI production lines in both gaming and education sectors, integrating the DeepSeek model across all business operations [3]. - In the gaming sector, AI has been applied in various areas such as code writing, design, and customer service, significantly reducing the need for development personnel and cutting costs [3]. - Active user metrics for key IP games like "Magic Domain" and "Honor of Kings" have shown growth, with the average monthly active users (MAU) for PC games increasing by 16.1% year-on-year [3]. Global Expansion and New Products - The company is optimizing its product lines and expanding its core IPs into overseas markets, with the overseas version of "Conquest" achieving an 8.8% revenue increase in local currency for 2024 [4]. - New games like "Code-Dragon" are expected to launch in overseas markets, supporting the company's game export strategy [4]. AI in Education - The company has been a pioneer in AI education since 2017, launching various AI-driven educational products and platforms, including the EDA metaverse education ecosystem in 2024 [4][5]. - Mynd.ai's Prometheus has a significant installation base covering over 1 million classrooms, providing a strong market foundation for AI educational devices [5]. R&D and Industry Chain Expansion - The company emphasizes R&D investment, particularly in AI, which is expected to optimize research costs and enhance profitability [6]. - The number of R&D personnel decreased by 14% in 2024 due to AI integration, which is projected to improve efficiency by 50%-200% [6]. Cash Flow and Shareholder Returns - As of the end of 2024, the company had net cash of RMB 2.1 billion, reflecting a 13.3% year-on-year increase, ensuring sufficient funds for AI development and shareholder returns [2][8]. - The company has maintained a high dividend payout ratio, with a historical average of 70.61% since 2005, and a dividend yield of nearly 10% for 2024 [9]. Future Outlook - The dual strategy of "AI + Gaming" and "AI + Education" is expected to drive continued growth in the company's performance, supported by strong cash flow and a commitment to R&D [10].

Summary of Key Points Core Viewpoint - ST New潮's stock price has shown significant volatility, with a recent increase of 6.39% over the past week, indicating potential investor interest and market activity [1]. Trading Information - As of March 28, 2025, ST New潮's stock closed at 2.33 yuan, up from 2.19 yuan the previous week, with a market capitalization of 15.845 billion yuan, ranking 2nd in the oil and gas extraction sector and 1003rd among A-shares [1]. - The stock has appeared on the trading alert list due to a cumulative price deviation of 12% over three consecutive trading days, marking its second appearance in five days [1][3]. Company Announcements - The company confirmed that there are no undisclosed significant matters affecting stock trading, following a self-examination [2]. - ST New潮 received a letter from Jindi Petroleum regarding the progress of a takeover bid, which is still in process, with no confirmed timeline for the full offer report [1][3]. - The company is in the process of appointing an auditing firm for the 2024 fiscal year, with a temporary shareholders' meeting scheduled for April 7, 2025, to discuss the appointment of Lixin Accounting Firm [2].

智通财经APP获悉，3月27日，网龙(00777)召开2024年年度业绩发布会。集团副董事长兼执行董事梁念 坚博士介绍，在游戏板块，公司持续推进"游戏+AI"战略，不仅优化开发效率与画面表现，还延长《魔 域》等经典IP的生命周期。在教育板块，欧美市场短期承压，预计2026年实现全面复苏。 2024年，AI应用正加速渗透各行业，网龙积极布局"AI+游戏"和"AI+教育"双赛道成效显著。据网龙集团 代理首席财务官刘克建先生介绍，2024年，公司的毛利率提升3.3个百分点至65.2%，EBITDA利润率增 长4.8个百分点至23.4%，税前利润增长19%至7.6亿元。 另外，公司经营性现金流增长至11亿元并连续六年保持超10亿现金流。基于强劲的现金流，集团宣布派 发末期股息每股普通股0.50港元(2023年末期股息：每股普通股0.40港元)，同比增长25.0%。值得注意的 是，得益于2024年第四季度启动的AI降本措施，网龙今年经营开支将进一步压减。 具体来看，近年来，网龙在AI与游戏的结合上取得了重要突破。据网龙集团高级副总裁林琛介绍，从 2023年开始，AI不仅帮助网龙实现了显著的降本增效，如在研发团队精简14 ...

Core Viewpoint - NetDragon reported a 14.8% year-on-year decline in revenue for the fiscal year ending December 31, 2024, despite a significant growth of 356% in its education services business [3][4]. Group 1: Financial Performance - Total revenue for NetDragon in 2024 was RMB 6 billion, down from the previous year [3]. - Gross profit decreased by 10.4% to RMB 3.9 billion, while net profit attributable to shareholders fell by 43.5% to RMB 311 million [3]. - The company recorded a net profit of RMB 114 million, a decline of 74.4% year-on-year [3]. - The gaming and application services segment generated RMB 3.9 billion, accounting for 65.1% of total revenue, down 6.0% [3]. - Revenue from the overseas education subsidiary Mynd.ai was RMB 2.1 billion, representing 34.8% of total revenue, a decrease of 27.6% [3]. Group 2: Business Segments - Mynd.ai's revenue decline was attributed to challenges in the global education market, while the company is transitioning from a hardware supplier to a leader in the "Classroom as a Service" (CaaS) sector [5]. - Mynd.ai's education device sales revenue was RMB 1.77 billion, down 37.5%, while education services revenue surged to RMB 333 million, up 356% [4][5]. - Mynd.ai reported a loss of RMB 279 million, but this represented an 11.4% reduction in losses compared to the previous year [4]. Group 3: Strategic Initiatives - The implementation of the "AI+ strategy" improved operational efficiency, reducing employee costs by nearly RMB 100 million [4]. - The company optimized its capital structure, leading to a 19.1% increase in pre-tax profit to RMB 756 million [4]. - Net cash increased by 13.3% to RMB 2.1 billion, with stable operating cash flow of RMB 1.1 billion [4]. Group 4: Workforce and Corporate Actions - The number of employees increased from 5,984 at the beginning of the year to 6,123 mid-year, but decreased to 4,593 by year-end [5]. - The company completed the sale of non-strategic early education business in October 2024, which helped repay some debt and optimize cost structure [5]. - NetDragon announced a final dividend of HKD 0.50 per share, totaling approximately RMB 246 million [6].

2024网龙（00777）全面拥抱AI：业绩税前利润同 比增长19% 末期股息同比大涨25% "年内，我们结合先进的AI工具构建了自动化生产线("AI生产线")，并启动"交互教育游戏"的研发，以交 互体验为核心、以学习者为主导，实现沉浸式学习，突破传统教学产品形态，进而打造教育元宇宙平 台。" "整体而言，Mynd.ai仍面临一些行业性的挑战，加之游戏业务上的主动调整，导致集团2024年整体收入 同比下降14.8%至人民币60.5亿元。尽管如此，"AI+"战略的实施提升了我们的运营效率，持续性业务员 工成本降低了近人民币1亿元，同时我们的财务成本随着资本结构的优化也有所降低，加上年内投资收 益的增加，使得集团2024年税前利润同比增长19.1%至人民币7.6亿元。" "我们的净现金同比提升13.3%至人民币21.0亿元，同时经营现金流保持稳定,达人民币10.5亿元，为我们 未来继续深化"AI+"战略、保持业务稳健发展奠定了良好的基础。有鉴于此，经公司董事会决议，2024 年的末期股息为每股普通股0.5港元，同比增长25.0%。我们始终秉持股东价值和回报最大化的理念，致 力于提供可持续股息和维持高派息比率，并将 ...

在游戏方面，我们全面引入最先进的AI工具，大幅提升生产效率和内容品质，并积极探索"AI原生"游 戏。核心IP魔域经过一系列优化升级，生态平衡进一步巩固，玩家体验显著提升，为这款"长青"IP的可 持续增长奠定坚实基础。在教育方面，我们于七月成功中标"国家智慧教育公共服务平台升级项目"，继 续为国家"促进人工智能助力教育变革"的战略做出力所能及的贡献。在海外，我们与泰国高等教育与科 研创新部合作研发线上AI教育平台，将面向泰国大学生和成年用户群体提供职业技能培训服务。此 外，我们的美国上市子公司Mynd.ai在2025年1月正式推出了新一代互动显示屏ActivPanel 10和 ActivSuiteTM软体解决方案，未来将逐步增加SaaS收入的占比，并推动其成为全球AI课堂技术的领导 者。 年内，我们结合先进的AI工具构建了自动化生产线(AI生产线)，并启动"交互教育游戏"的研发，以交互 体验为核心、以学习者为主导，实现沉浸式学习，突破传统教学产品形态，进而打造教育元宇宙平台。 整体而言，Mynd.ai仍面临一些行业性的挑战，以及游戏业务上的主动调整，导致集团2024年整体收入 同比下降14.8%至60亿元。尽管 ...

Financial Performance - NetDragon Websoft Holdings Limited's overall revenue for 2024 decreased by 14.8% year-on-year to RMB 6 billion[4] - The gaming and application services segment generated revenue of RMB 3.94 billion in 2024, a decline of 6.0% year-on-year[5] - Revenue for 2024 was RMB 6.047 billion, a decrease of 14.8% compared to RMB 7.101 billion in 2023[14] - Gross profit for 2024 was RMB 3.942 billion, down 10.4% from RMB 4.398 billion in 2023[14] - Operating profit for 2024 was RMB 745 million, a decrease of 9.3% from RMB 821 million in 2023[14] - The Mynd.ai business generated RMB 2,106 million in revenue, indicating a significant contribution to overall performance[33] - Revenue from Mynd.ai business was RMB 2.106 billion, a decrease of 27.6% from RMB 2.910 billion in 2023[13] - The revenue from educational services amounted to RMB 526 million, reflecting the company's diversification in service offerings[29] - The revenue from prepaid game cards was RMB 3,425 million, while sales of educational equipment and related products generated RMB 2,015 million[29] - The company reported a profit before tax of RMB 756 million for the year, with a segment profit of RMB 576 million[33] Profitability and Cash Flow - The company achieved a pre-tax profit of RMB 756 million in 2024, reflecting a year-on-year growth of 19.1%[4] - Net cash increased by 13.3% year-on-year to RMB 2.1 billion, with stable operating cash flow of RMB 1.1 billion[4] - Operating cash flow decreased from RMB 1,115 million in 2023 to RMB 1,052 million in 2024, indicating a decline in cash generated from operations[19] - Cash balance at the end of 2024 was RMB 541 million, down from RMB 650 million at the end of 2023[11] - Financing activities generated a net cash inflow of RMB 130 million in 2024, compared to a net cash outflow of RMB 1,695 million in 2023[20] - The company’s investment activities resulted in a net cash outflow of RMB 875 million in 2024, slightly improved from RMB 915 million in 2023[19] Dividends and Shareholder Returns - The company plans to pay a final dividend of HKD 0.50 per ordinary share for 2024, a 25.0% increase year-on-year[4] - The company announced a final dividend of HKD 0.50 per share, up from HKD 0.40 per share in 2023, pending shareholder approval[12] - The board proposed a final dividend of HKD 0.50 per share for the year ending December 31, 2024, totaling approximately RMB 246 million, subject to shareholder approval[70] Assets and Liabilities - Total liabilities increased from RMB 4,045 million in 2023 to RMB 4,414 million in 2024, primarily due to an increase in bank loans from RMB 1,033 million to RMB 1,729 million[18] - The company’s net asset value decreased from RMB 6,174 million in 2023 to RMB 5,866 million in 2024, indicating a reduction in overall equity[18] - The company’s total assets decreased from RMB 6,337 million in 2023 to RMB 6,018 million in 2024, indicating a contraction in the asset base[18] - The asset-liability ratio rose to 0.29 in 2024 from 0.17 in 2023, indicating a significant increase in financial leverage[47] - The company’s net current assets improved to RMB 1,272 million in 2024 from RMB 945 million in 2023, suggesting better liquidity[47] Workforce and Restructuring - As of December 31, 2024, the total number of employees decreased to 4,593 from 5,984 a year earlier, representing a reduction of approximately 23.3%[48] - The company is currently undergoing a restructuring process, which has led to the reduction in workforce across various departments[48] - Research and Development (R&D) staff decreased to 2,505 from 3,021, a decline of about 17.0%[48] - Sales and Marketing personnel reduced to 669 from 817, reflecting a decrease of approximately 18.1%[48] - Production staff saw a significant drop to 563 from 1,264, indicating a reduction of around 55.5%[48] - The company reported a significant reduction in administrative staff, which decreased to 856 from 882, a decline of approximately 2.9%[48] Share Option Plans - The company adopted the 2024 Share Option Plan on June 6, 2024, which allows for a total of 53,126,253 options and reward shares to be granted, equivalent to 10% of the company's shares[56] - The 2024 Share Option Plan is set to be effective for ten years from June 6, 2024, and no options have been granted under this plan as of December 31, 2024[58] - The 2018 Share Option Plan and the 2008 Share Option Plan were terminated on June 6, 2024, and May 24, 2018, respectively, but unexercised options from these plans remain valid[58] - The company has a total of 5,300,000 options under the 2018 Share Option Plan, all of which are unexercised as of December 31, 2024[59] - The company’s share option plans are designed to incentivize employees and service providers based on their contributions to the group[58] Corporate Governance and Compliance - Best Education has complied with the corporate governance code throughout the review year[76] - The audit committee has reviewed the consolidated financial results for the year ending December 31, 2024, and confirmed compliance with applicable accounting standards and regulations[78] - The audit committee consists of three independent non-executive directors, with Li Shengzong serving as the chairman[78] - The company has adopted a code of conduct for securities transactions that meets or exceeds the standards set out in the listing rules[69] Strategic Initiatives - The company signed a term sheet with Beijing Zhongke Wenge Technology Co., Ltd. for exclusive cooperation in promoting AI services, with a potential investment of RMB 75 million[7] - The company is actively developing "AI-native" games and interactive educational games, aiming to capture new business opportunities in the AI era[8] - The newly launched ActivPanel 10 received positive feedback, enhancing the company's market competitiveness[10] - A merger agreement was established on April 18, 2023, involving the registration of eLMTree as a wholly-owned subsidiary of Best Education, transferring various educational businesses to eLMTree[65] - A special dividend of approximately HKD 71.7 million was paid to shareholders as a physical distribution of shares held indirectly through NetDragon BVI[68]

Financial Performance - Revenue for the first half of 2024 was RMB 3.3 billion, a decrease of 10.3% year-on-year[4] - Revenue from game and application services was RMB 2.12 billion, accounting for 64.3% of total revenue, a decrease of 0.8% year-on-year[4] - Revenue from Mynd.ai was RMB 1.18 billion, accounting for 35.7% of total revenue, a decrease of 23.5% year-on-year[4] - Gross profit was RMB 2.2 billion, a decrease of 3.8% year-on-year[4] - Operating profit was RMB 634 million, a decrease of 9.3% year-on-year[4] - Non-GAAP operating profit was RMB 640 million, a decrease of 7.5% year-on-year[4] - Profit attributable to owners of the company was RMB 400 million, a decrease of 20.0% year-on-year[4] - Mynd.ai reported an operating loss of RMB 111 million, an increase of 131.3% year-on-year[4] - Overall game revenue for the first half of 2024 reached RMB 1.86 billion, a decrease of 3.0% year-on-year, accounting for 87.8% of game and application service revenue[9] - The flagship IP "Magic Domain" generated revenue of RMB 1.69 billion, with a year-on-year decline of 3.8% due to external factors and preparations for a new game launch[9] - The "Honor of Kings" IP saw a revenue increase of 29.6% year-on-year, supported by significant gameplay improvements and successful esports events[10] - The "Conquer" IP experienced a 6.6% year-on-year revenue growth, attributed to major content updates and innovative gameplay[10] - The company reported a total of RMB 2,121 million from game and application services, compared to RMB 2,139 million in the previous year, showing a slight decline[89] - The company reported a profit attributable to owners of RMB 500 million for the six months ended June 30, 2024[68] - The total comprehensive income for the period was RMB 513 million, compared to RMB 388 million in the same period last year, representing a growth of 32.2%[68] Dividend and Shareholder Information - The company declared an interim dividend of HKD 0.40 per ordinary share for the six months ended June 30, 2024[4] - The company plans to distribute an interim dividend of HKD 0.4 per share for the six months ending June 30, 2024, compared to an interim special dividend and interim dividend of HKD 1.0 and HKD 0.4 per share in 2023[38] - As of June 30, 2024, the company's major shareholder DJM Holding Ltd. holds 191,078,100 shares, representing 35.97% of the issued share capital[46] - Liu Dejian, a director, holds 216,384,938 shares, which accounts for 40.73% of the company's shares[41] - The company has a total of 5,779,040 shares held by director Liang Nianjian, representing 1.09%[41] - Chen Hongzhan, another director, owns 11,197,019 shares, which is 2.11% of the total shares[42] - The company has a total of 43,733,320 shares held by International Data Group, representing 8.23%[46] - The company has a total of 41,374,375 shares held by Zhou Quan, representing 7.79%[46] - The company has a total of 34,437,519 shares held by the late Zheng Hui, representing 6.48%[46] - Liu Luoyuan holds 4.37% of the shares, with a total of 21,541,819 shares held by certain trust beneficiaries[43] Debt and Financial Position - As of June 30, 2024, total bank loans and other debts amounted to RMB 1.967 billion, an increase from RMB 1.647 billion as of December 31, 2023[17] - The debt-to-equity ratio was 0.21 as of June 30, 2024, up from 0.17 at the end of 2023[20] - Total equity was approximately RMB 6.28 billion as of June 30, 2024, compared to RMB 6.17 billion at the end of 2023[21] - The company held cash and cash equivalents of RMB 4.94 billion and established sufficient available credit lines[12] - The company’s total liabilities decreased to RMB 4,052 million from RMB 4,045 million, showing a slight reduction[67] - The company’s total liabilities as of June 30, 2024, were RMB 613 million, unchanged from the previous reporting period[83] - The company’s current liabilities decreased to RMB 1,390 million as of June 30, 2024, from RMB 1,518 million as of December 31, 2023[118] Employee and Talent Management - As of June 30, 2024, the total number of employees in the group is 6,123, an increase from 5,984 in December 2023 and 5,207 in June 2023[27] - The group successfully attracted 294 new talents in the first half of 2024, including 77 senior elite talents, enhancing team strength significantly[28] - The company has implemented a digital transformation strategy in human resources, focusing on AI-enabled management and data-driven decision-making[29] - The company is committed to continuous improvement in human resource allocation and has established internship bases to nurture potential future stars[28] - The company has introduced a certification system for employees to enhance their skills and benefits, with a focus on task-oriented management[33] Research and Development - Research and development expenses rose to RMB 696 million, compared to RMB 641 million in the previous year, indicating a focus on innovation[64] - The company plans to continue its focus on research and development projects in China, supported by government subsidies[99] Market Expansion and Product Development - The company continues to explore new strategies for market expansion and product development, although specific details were not disclosed in the report[84] - The company plans to launch four to five new games based on existing flagship IPs and new IPs within the next six to nine months[11] - The new game "Code - Alpha" is expected to launch in multiple countries in the second half of the year, contributing to revenue growth[8] Corporate Governance and Compliance - The company has complied with the corporate governance code throughout the review period, ensuring adherence to the standards set forth in the listing rules[59] - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial results for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[59] Financial Assets and Liabilities - The company’s financial assets and liabilities are measured at fair value, categorized into three levels based on the observability of inputs used in the valuation[139] - Financial assets measured at fair value through profit or loss totaled RMB 255 million as of June 30, 2024, compared to RMB 205 million as of January 1, 2024, indicating an increase of 24.39%[145] Related Party Transactions - The group incurred related party transactions totaling RMB 4 million for services provided to Fuzhou 851 during the period, compared to RMB 6 million for the same period last year[153] - The group has ongoing related party transactions, including a lease agreement with Fuzhou 851 for office property in China[153]

浦银国际研究 财务模型更新 | 互联网行业 浦银国际 财务模型更新 网龙 （777.HK） 网龙（777.HK）：游戏保持相对稳定， 关注新游表现 利润率持续改善：公司 1H24 收入人民币 33.0 亿元，同比下降 10.3%； 其中，游戏及应用服务收入为 21.2 亿元，同比小幅下降 0.8%，主要 是海外游戏收入下滑；Mynd.ai 收入同比下降 23.5%至 11.8 亿元，主 要由于硬件需求回归常态化；毛利率同比改善 4.5pp 至 66.6%，主要 受益于高毛利的游戏收入占比提升；调整后净利润为 5.6 亿元，调整 后净利率为 16.9%。此外，公司宣布派发中期股息每股 0.4 港元。 游戏收入维持相对稳定，关注新游表现：1H24 公司游戏业务维持相 对稳定，收入同比下降 3%至 18.6 亿元；其中，国内游戏收入同比下 降 1.3%，端游保持增长，手游有所下滑；海外游戏收入同比下降 12.9%， 主要是《魔域》端游海外版受外挂影响及《征服》端游海外版受埃及 临时限电影响。这些问题正逐步改善，下半年海外收入有望恢复。国 内端游核心产品《简体魔域》保持良好用户粘性，MAU、DAU 等指标 均实现增长 ...