NetDragon (00777) H1 2025 Earnings Call August 28, 2025 10:00 PM ET Company ParticipantsSimon Leung - Vice Chairman of the Board, Executive Director & ChairmanNone - ExecutiveSimon LeungOkay. What I'm going to do is actually just going to go through very quickly on some of the highlights and some of the activities that we have done in mind, because it is a separate public company, so I can't go into the detail, but I'll give you some directional comment. So this one is actually to show you that we have done ...

Financial Data and Key Metrics Changes - The company has successfully managed its cost structure, reduced debt, and increased gross margin, indicating effective business management [1][2][12] - A dividend of HKD 600 million is being returned to shareholders, with a slight increase in the dividend per share to $0.50 compared to RMB 0.40 in 2024 [11][12] Business Line Data and Key Metrics Changes - The flagship product, AP10, is expected to drive growth in both the education and enterprise sectors, showcasing a shift in business architecture [1][2] - The company is making progress in transitioning to a SaaS business model, which is expected to enhance revenue streams [2][4] Market Data and Key Metrics Changes - The company is actively engaging in AI-driven initiatives, particularly in education, which is gaining traction in various markets, including Thailand [7][21] - The gaming business is anticipated to face challenges in 2024 and 2025, but there are expectations for a return to growth in 2025, contingent on market stabilization [14][25] Company Strategy and Development Direction - The company is fully embracing AI, with plans to integrate AI voice assistant technology into its products, enhancing educational tools for teachers and students [3][4] - A strategic collaboration with a prominent AI company in China aims to leverage technology for market expansion beyond Hong Kong [6] - The company is exploring blockchain and Web3 technologies as part of its future business model, particularly in education [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming current market challenges through cost optimization and new technology integration, positioning the company for growth in 2025 and beyond [12][16] - The outlook for the second half of the year remains positive, with expectations for market recovery in Europe and the U.S. [14][16] Other Important Information - The company is participating in international conferences to share its experiences and strategies with emerging markets, indicating a commitment to global engagement [8][10] Q&A Session Summary Question: Can NetDragon provide insights on revenue traction from AI education and SaaS? - Management highlighted the integration of verified technology into their panel as the start of AI SaaS revenue, with ongoing efforts in Thailand driving traction in AI education [19][20][21] Question: What are the short-term factors affecting the gaming business, and will it return to growth? - Management acknowledged the slowdown in gaming but indicated plans to leverage blockchain and AI for future growth, while not committing to specific growth projections [24][25]

Core Viewpoint - NetDragon's business remains stable despite facing challenges in the first half of 2025, with a focus on optimizing operations and improving cost efficiency, leading to a 15.6% year-on-year reduction in overall operating expenses [1][3]. Financial Performance Summary - Total revenue for the first half of 2025 was RMB 2.38 billion, a decrease of 27.9% year-on-year [1]. - Revenue from gaming and application services was RMB 1.74 billion, accounting for 73.0% of total revenue, down 18.1% year-on-year and 4.3% quarter-on-quarter [2][5]. - Revenue from Mynd.ai was RMB 640 million, representing 26.9% of total revenue, a significant decline of 45.7% year-on-year due to economic uncertainties [2][9]. - Gross profit was RMB 1.66 billion, down 24.7% year-on-year, with a gross margin increase of 2.9 percentage points to 69.5% [3]. - Profit attributable to shareholders was RMB 30 million, a decrease of 92.5% year-on-year, primarily due to impairment losses on intangible assets and one-time expenses related to personnel restructuring [3][10]. Strategic Initiatives - The company is committed to long-term sustainable growth and value creation, with a focus on AI integration in gaming and education sectors [1][7]. - The board approved an interim dividend of HKD 0.5 per share, a 25% increase year-on-year, and plans to distribute at least HKD 600 million to shareholders over the next 12 months [1][3]. - In gaming, the company is enhancing user engagement through the flagship IP "Magic Domain" and expanding its international presence with successful projects [1][5]. - In education, the company is restructuring its domestic education technology business to focus on key AI technology service projects and vocational education [7][9]. Mynd.ai Business Overview - Mynd.ai's revenue for the first half of 2025 was RMB 640 million, down from RMB 1.18 billion in the same period last year, reflecting budget cuts and reduced spending due to economic uncertainty [9][10]. - The company is focusing on enhancing its product offerings with the launch of next-generation integrated solutions and has signed an agreement to acquire award-winning AI voice assistant technology [10].

NetDragon Websoft Holdings Limited Stock Code: 777 HK 2025 Interim Earnings Presentation August 29, 2025 Disclaimer This presentation is prepared by NetDragon Websoft Holdings Limited (the "Company", together with its subsidiaries referred to as the "Group" in this presentation) solely for information purposes and is not to be construed as a solicitation of an offer to buy or sell any securities of the Company in any jurisdiction. Information is given in summary form and does not purport to be complete. Thi ...

Group 1 - The Hang Seng Technology Index has experienced significant performance declines due to fierce competition among three major e-commerce and local lifestyle giants in the food delivery market, leading to substantial subsidies that have impacted earnings [1] - Despite the overall downturn in the tech sector, NetDragon (00777) stands out by focusing on shareholder returns, having successfully executed a shareholder return plan of up to $300 million over three years, which has provided investors with relative gains of nearly 50% compared to the Hang Seng Index during the same period [1][2] - NetDragon's stock price increased from approximately HKD 14.1 to HKD 15.7 from August 2021 to August 2024, effectively mitigating losses from the broader market downturn, which saw the Hang Seng Index drop by 36% [1] Group 2 - In its mid-year performance announcement for 2025, NetDragon maintained a high interim dividend of HKD 0.5 and proposed a shareholder return plan of no less than HKD 600 million for the next 12 months, which is expected to boost market confidence [2] - The core profit from NetDragon's main business segment, gaming and application services, rebounded to over RMB 500 million, supported by a strong cash position as of June 2025, providing a solid foundation for future shareholder returns [2] - NetDragon's strategic investments in cutting-edge technologies such as AI, XR, robotics, and blockchain have yielded positive returns, including a threefold increase in valuation from its cornerstone investment in the IPO of Giant Star Legend (06683) [2] Group 3 - NetDragon's annualized dividend per share is currently HKD 1, resulting in a dividend yield of 9%, excluding share buybacks [3] - The proposed shareholder return plan of at least HKD 600 million translates to a total shareholder return rate of 10% based on NetDragon's market capitalization of HKD 6 billion, appealing to long-term value-oriented investors [3]

（原标题：网龙(00777)：Mynd.ai中期取得收入8927.2万美元） 智通财经APP讯，网龙(00777)发布非全资附属公司Mynd.ai , Inc.(Mynd.ai)截至2025年6月30日止6个月业 绩，收入8927.2万美元;净亏损2889.2万美元，同比收窄39.57%;每股普通股净亏损0.06美元。 ...

网龙(00777)发布非全资附属公司Mynd.ai,Inc.(Mynd.ai)截至2025年6月30日止6个月业绩，收入8927.2万 美元;净亏损2889.2万美元，同比收窄39.57%;每股普通股净亏损0.06美元。 ...

网龙(00777)公布2025年中期业绩，收益为人民币23.81亿元，毛利为人民币16.55亿元，公司拥有人应占 溢利为约人民币3000万元，每股盈利5.57分，中期股息每股0.5港元。 上半年游戏及应用服务业务收入为人民币17亿元，公司重视游戏长线运营，打造长青游戏IP，受阶段性 因素影响游戏收入出现短期下滑，但公司持续提升玩家体验，促进用户增长和活跃度，为游戏业务的长 期可持续发展奠定坚实基础。伴随降本增效的深入推进，游戏及应用服务分类经营开支得到有效控制， 同比下降14.7%，经营性分类溢利环比回升至5.01亿元，展现出强劲韧性与积极向好的修復动能。 在游戏领域，公司全面部署AI生产中心，以推动组织效能持续提升：整体员工结构更加契合AI时代， 团队战斗力与凝聚力增强，带动游戏及应用服务板块的研发费用同比下降26.7%。在助力"降本"的同 时，AI+战略在"增效"方面也显着发力，同IP下的不同游戏团队通过AI生产中心实现高效整合，跨版本 的游戏内容协同与自动生成能力大幅提升。公司的研发创新工作亦紧扣AI趋势加速推进：重磅新品 《代号MY》已于2025年8月面向IP用户开启小规模测试，并持续推进正式上线工作 ...

为促进长期发展，网龙全面拥抱AI新时代，进一步落实"AI+游戏"和"AI+教育"战略。在游戏及应用服 务领域，2025年上半年游戏及应用服务业务收入为人民币17.4亿元，同比下降18.1%，环比微跌4.3%。 旗舰长青IP魔域持续提升内容品质，全面开展多项与非遗文化、社会公益等知名项目的IP联动，带动用 户活跃度持续增长。伴随降本增效的深入推进，游戏及应用服务分类经营开支得到有效控制，同比下降 14.7%，经营性分类溢利环比回升至5.0亿元，展现出强劲韧性与积极向好的修复动能。 据悉，集团的重磅新品《代号MY》已于8月面向IP用户开启小规模测试，并持续推进正式上线工作。手 游《代号Alpha》将陆续拓展多个海外市场。在AI生产中心的助力下，旗舰IP魔域将高效推出多语种版 本，开拓新的海外市场空间。《魔域传说》于上半年成功登陆小游戏市场，进一步提升了IP影响力。集 团其他传统自研IP如终焉誓约、机战等也计划通过代理、授权等合作方式发行上线，带来增量收入。 在Mynd.ai业务领域，2025年上半年，该业务的收益为6.4亿元，管理层继续实施成本优化措施，以缓解 教育科技市场低迷的影响。独立在美国上市的子公司Myn ...

網龍網絡控股有限公司 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部份內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 NetDragon Websoft Holdings Limited 海外監管公告 上市附屬公司 Mynd.ai , Inc. 截至二零二五年六月三十日止六個月之未經審核財務業績公佈 本公告由網龍網絡控股有限公司（「本公司」）董事（「董事」）會（「董事會」）根據香 港聯合交易所有限公司證券上市規則第13.10B條作出。 本公司股東及潛在投資者務請注意投資風險，並於買賣或擬買賣本公司證券時審 慎行事。 （於開曼群島註冊成立的有限公司） （股份代號：777） Mynd.ai , Inc.（「Mynd.ai」，為本公司非全資附屬公司，其股份以美國存託股份形 式於美國的NYSE American上市）已向美國證券交易委員會（「美國證監會」）提交 關於 Mynd.ai 截至二零二五年六月三十日止六個月之之未經審核財務業績的6-K表 格。詳情請參閱隨附的的刊載於美國證監會網站(https://w ...