Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported a revenue of 4.48 billion yuan for 2025, a decrease of 26% year-on-year, with a net profit attributable to shareholders of 150 million yuan, down 51% year-on-year. The decline in profit was primarily due to cryptocurrency impairment losses and one-time costs related to employee optimization [7] - The gaming segment performed better than expected, with revenue of 3.28 billion yuan, a 17% decline year-on-year. Cost optimization led to a smaller decline in operating profit, which reached 900 million yuan, down only 3% year-on-year. The operating profit margin improved by 3.9 percentage points to 27.4% [7] - The education segment faced short-term pressure, with revenue of 1.2 billion yuan, down 43% year-on-year, and an operating loss of 360 million yuan, which widened from a loss of 300 million yuan in the previous year. The decline was attributed to increased uncertainty in budget allocation from overseas clients [7] - The company is focusing on AI-driven cost reduction and efficiency improvements in its gaming business, while the education business is expected to benefit from a new round of equipment replacement cycles in the medium term [7] Financial Summary - The company’s total revenue is projected to be 4.48 billion yuan in 2025, with a net profit of 150 million yuan. The earnings per share (EPS) is expected to be 0.28 yuan, with a price-to-earnings (P/E) ratio of 28.58 [1][8] - For 2026, the net profit is forecasted to increase to 477.89 million yuan, with an EPS of 0.90 yuan and a P/E ratio of 9.03. By 2028, the net profit is expected to reach 742.16 million yuan, with an EPS of 1.40 yuan and a P/E ratio of 5.82 [1][8] - The company’s gross margin improved to 70.3% in 2025, up 5.1 percentage points year-on-year, while overall operating expenses decreased by 22% [7]

Core Viewpoint - The company, NetDragon Websoft Holdings Limited, has achieved an upgrade in its ESG rating from BBB to A by MSCI, reflecting strong recognition from the international capital market regarding its performance in environmental protection, social responsibility, and corporate governance [1][3]. Group 1: ESG Rating Upgrade - The upgrade to an A rating signifies the company's effective integration of sustainable development principles into its operations, enhancing its attractiveness to global investors and creating favorable conditions for long-term value creation [2][4]. - MSCI is one of the most influential ESG rating systems globally, covering over 17,000 listed companies, and its ratings are widely used by institutional investors for investment decisions and risk management [1][3]. Group 2: Corporate Social Responsibility Initiatives - The company actively fulfills its corporate social responsibility by promoting the integration of "AI + education" and "gaming + public welfare," aiming for dual growth in commercial and social value [2][5]. - In the education sector, the company participates in national-level digital education projects, promoting smart education and AI-enabled learning systems, while also advancing educational equity and resource accessibility in China and abroad [2][5]. - The company engages in diverse public welfare actions, including supporting rural education development and teacher training, while integrating its gaming products with cultural heritage and ecological protection initiatives to enhance public engagement and social impact [2][5]. Group 3: Future Outlook - The company plans to deepen its ESG practices by embedding sustainable development principles into its strategic planning and daily operations, continuously enhancing its overall competitiveness and reinforcing its social responsibility efforts [2][5]. - The company aims to leverage its strengths in education, gaming, and digital innovation to improve its ESG performance and create long-term, stable, and sustainable value for shareholders and stakeholders [2][5].

Core Insights - The Chairman and controlling shareholder of NetDragon intends to increase his shareholding through open market transactions within 12 months, indicating confidence in the company's long-term development [1][2][3] Group 1: Company Strategy and Vision - NetDragon is advancing towards becoming a global leader in AIGC (AI-Generated Content) creation, reflecting a new strategic direction and long-term investment value [2] - The company will continue to focus on its "AI+" core strategy to strengthen its business presence and enhance operational efficiency, aiming for sustainable growth and stable returns for shareholders [3][4] - NetDragon is committed to building a massive user community in the new AI era through a dual-focus strategy of "AI+Gaming" and "AI+Education" [4] Group 2: Company Background and Achievements - Established in 1999, NetDragon is a reputable online game developer in China, known for successful titles such as Eudemons Online and Conquer Online [4] - The company's overseas edtech business, Mynd.ai, is a global leader in interactive technology, with its products used in over 2 million learning and training spaces across 126 countries [5]

本公告乃網龍網絡控股有限公司（「本公司」）及其附屬公司（統稱為「本集團」） 發出之自願性公告。 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 網龍網絡控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：777） 自願公告 董事會主席兼控股股東 擬增持本公司股份 香港，二零二六年三月三十日 於本公佈日期，董事會包括五名執行董事，為劉德建博士、梁念堅博士、劉路遠先生、陳宏展 先生及林云女士；一名非執行董事為林棟樑先生；及三名獨立非執行董事，為李繩宗先生、 廖世強先生及盧永仁博士。 本公司於二零二六年三月三十日收到本公司董事會（「董事會」）主席兼控股股東劉 德建博士（「劉博士」）的通知，基於對本集團未來持續發展充滿信心及對本公司長 期投資價值的認可，劉博士擬於自二零二六年三月三十日起計十二個月內，透過公開 市場交易增持本公司股份（「增持股份」）。 董事會認為，增持股份反映劉博士對 ...

Group 1 - Company NetDragon (00777) announced the transfer of 171,200 shares of treasury stock to a trustee on March 27, 2026, as part of its share incentive plan adopted on June 6, 2024 [1] - The stock price of NetDragon showed a fluctuation with a current price of 8.79, reflecting a change of 0.35 or 4.15% [1] - The stock performance over different time frames includes a 5.57% increase over a certain period, a 3.67% increase over another, and a 1.90% increase recently [1] Group 2 - The trading volume indicated a range from 0 to 90,000 shares during the trading day, suggesting active market participation [1] - The stock price has seen various levels throughout the day, with notable points at 7.97, 8.13, 8.28, 8.44, 8.60, 8.75, and 8.91 [1] - The announcement aligns with the company's strategic initiatives to enhance shareholder value through stock incentive programs [1]

Group 1 - The company reported an annual revenue of 4.48 billion RMB, with 3.28 billion RMB from gaming and application services, and 1.20 billion RMB from Mynd.ai business [1] - The board approved a final dividend of 0.50 HKD per share, resulting in a total annual dividend of 1.00 HKD per share, yielding an annualized dividend rate of over 10% [1] - The company committed to distributing no less than 600 million HKD to shareholders through dividends and share buybacks over the next 12 months, reflecting confidence in long-term sustainable development [1] Group 2 - The company introduced the "Immediate AI" strategy in 2025, building on its "Comprehensive Embrace of AI" strategy, aiming for a strategic transformation in education and gaming sectors, as well as various AI+ investment areas [1] - The company has achieved a preliminary transformation into an AI-driven organization, moving towards becoming a global leader in AIGC creative enterprises [1] - Overall operating expenses decreased by 22.2% year-on-year, with operating profit in the second half of the year increasing by 47.7%, indicating effective cost optimization expected to fully materialize by 2026 [1]

Core Viewpoint - NetDragon (00777) announced the transfer of 171,200 shares from its inventory to a trustee as part of the share incentive plan adopted on June 6, 2024 [1] Group 1 - The transfer of shares is scheduled for March 27, 2026 [1] - The shares are part of a stock incentive plan aimed at motivating and retaining employees [1]

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： 2026年3月27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 | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | 庫存股份變動 | | | | 事件 | | 已發行股份（不包括庫存股份）數 目 | 佔有關事件前的現有已發 行股份（不包括庫存股 份）數目 ...

Core Viewpoint - NetDragon Websoft Holdings Limited reported a surprising financial performance for the year 2025, with total revenue of 4.48 billion RMB, a year-on-year decline of 26.0%, and a net profit attributable to shareholders of 151 million RMB, down 51.45%, marking the lowest performance since 2018, prompting investors to reassess the company's transformation prospects [1][7]. Group 1: Business Performance - The revenue decline was attributed to a "double hit" in its core business segments, with the gaming and application services generating 3.28 billion RMB, accounting for 73.2% of total revenue, down 16.8% year-on-year [2][8]. - The education segment, particularly the Mynd.ai business, saw a dramatic drop in revenue to 1.20 billion RMB, a decrease of 43.2%, representing 26.7% of total revenue, primarily due to the sale of the Singapore early education business and ongoing adjustments in industry demand [2][8]. Group 2: Profitability and Cash Flow - The significant drop in net profit to 151 million RMB, down from 311 million RMB in 2024, was attributed to cryptocurrency impairment losses and one-time expenses related to employee optimization, reflecting short-term pain in asset allocation and personnel optimization [3][9]. - Operating cash flow for 2025 was 378 million RMB, a substantial decline of 64.07%, while investment cash flow was -1.093 billion RMB, worsening from -875 million RMB the previous year, indicating a challenging period of declining revenue and tight cash flow [3][9]. Group 3: Shareholder Returns - In response to the declining performance, the company announced a substantial shareholder return plan, proposing a final dividend of 0.50 HKD per share, totaling 1.00 HKD for the year, and committing to distribute at least 600 million HKD over the next 12 months through dividends and share buybacks [4][10]. - As of December 2025, the company had a net cash and liquid investment reserve of 1.98 billion RMB, which supports ongoing dividends but raises concerns about a focus on dividends over research and development, as R&D expenses decreased by 33.2% year-on-year [4][10]. Group 4: Future Outlook and AI Transformation - The chairman stated that the company has begun to implement AI organizational changes and aims to become a leading AIGC creative enterprise, with expectations that cost optimization will fully materialize in 2026, laying a solid foundation for long-term value growth [5][11]. - There is a divide in market sentiment regarding whether AI can truly become a turning point for performance, with optimists believing that AI integration in game development and recovery in overseas education could lead to a turnaround in 2026, while skeptics point to increased macroeconomic uncertainty and intensified industry competition as challenges [5][11].

Core Viewpoint - NetDragon (00777) reported a strong annual performance with a revenue of 4.48 billion RMB, driven by its gaming and application services, and is committed to returning value to shareholders through dividends and share buybacks [1] Financial Performance - The company achieved a total revenue of 4.48 billion RMB, with 3.28 billion RMB from gaming and application services and 1.20 billion RMB from Mynd.ai business [1] - The board approved a final dividend of 0.50 HKD per share, leading to a total annual dividend of 1.00 HKD per share, resulting in an annualized dividend yield of over 10% [1] - Overall operating expenses decreased by 22.2% year-on-year, while operating profit in the second half of the year increased by 47.7% [1] Strategic Initiatives - The company is advancing its "Embrace AI" strategy and has introduced the "Immediate AI" strategy for further transformation in the education and gaming sectors, as well as in various AI+ investment areas [1] - The company aims to become a global leader in AIGC (AI-Generated Content) and has made initial progress in transforming into an AI-driven organization [1] - The company plans to distribute no less than 600 million HKD to shareholders through dividends and share buybacks over the next 12 months, reflecting confidence in its long-term sustainable development [1]