Group 1: Financial Performance - The company reported a total revenue of 4.48 billion RMB for the year 2025, with 3.28 billion RMB from gaming and application services and 1.20 billion RMB from Mynd.ai business [3] - The gross profit margin increased by 5.1 percentage points to 70.3% [3] - Operating expenses decreased by 22.2% year-on-year, and operating profit in the second half of the year grew by 47.7% [3] Group 2: Shareholder Returns - The board approved a final dividend of 0.5 HKD per share, bringing the total annual dividend to 1.0 HKD per share [1] - The company committed to distributing no less than 600 million HKD to shareholders through dividends and share buybacks over the next 12 months [1] Group 3: Strategic Initiatives in Gaming - The company has established a focus on AI-native game development, with R&D expenses expected to decrease by 33.2% year-on-year in 2025 [1] - The proportion of AI in the total workload for games has increased to 25%, with plans to further increase it to 50% by the end of 2026 [1] - Monthly active users for the "Magic Domain" IP grew by 11.1% year-on-year, with revenue from "Conquer" and "English Soul" IPs increasing by 6.4% and 21.3%, respectively [1] Group 4: Strategic Initiatives in Education - The company is advancing the integration of "gamified learning" and "AI + education," achieving full-process intelligence in content production [1] - A strategic partnership was formed with Thailand's Ministry of Higher Education and Research Innovation to create an AI-driven ecosystem from learning to employment [1] - A cooperation agreement was signed with Cameroon’s Ministry of Secondary Education to promote digital transformation in 250 schools, including the establishment of the first AI smart classroom in Yaoundé [1] Group 5: ESG Rating Improvement - The company's MSCI ESG rating improved from BBB to A, reflecting ongoing efforts in environmental protection, social responsibility, and corporate governance [4] - The company aims to create long-term sustainable value for shareholders, customers, and society while pursuing its strategic goal of becoming a leading AIGC creative enterprise [4]

Core Insights - The company has introduced the "Immediate AI" strategy in 2025, following its "Comprehensive Embrace of AI" strategy, aiming to transform into a leading AIGC creative enterprise globally [1] - The company has achieved a 22.2% year-on-year reduction in overall operating expenses, with a 47.7% increase in operating profit in the second half of the year, indicating effective cost optimization [1] Group 1: Education AIGC - The company has made significant breakthroughs in product innovation and content creation through its AI production center, establishing a digital education ecosystem centered on "gamified learning" [2] - Mynd.ai, a subsidiary listed in the U.S., reported a 21.1% year-on-year decrease in classified operating expenses, with a 61.8% reduction in adjusted EBITDA losses in Q4 2025 [2] Group 2: Gaming AIGC - The company is actively researching AI-native games and exploring new game categories based on AI operational logic, while maintaining a stable profitability for its flagship IP [2] - The operating profit margin for the gaming and application services business reached 27.4%, an increase of 3.9 percentage points year-on-year [2] Group 3: Strategic Partnerships - The company has formed strategic partnerships with ByteDance's Volcano Engine to develop a new generation of AIGC educational resources and with Thailand's Ministry of Higher Education to promote an AI-driven "Learn-to-Career" ecosystem [3] - A collaboration with the World Bank and Cameroon’s Ministry of Secondary Education aims to support the digital transformation of 250 schools across Cameroon [3] Group 4: Financial Performance - The company reported revenues of RMB 4.475 billion for the year ending December 31, 2025, a decrease of 26% year-on-year, with a profit attributable to shareholders of RMB 151 million, down 51.45% [4] - The company plans to distribute a total of no less than HKD 600 million to shareholders through dividends and share buybacks over the next twelve months [5]

Financial Data and Key Metrics Changes - In 2025, the company's revenue was RMB 2.4 billion, a decrease of 26% year-over-year [9] - Operating profit grew by 47% year-over-year to RMB 164 million in the second half of 2025, with an operating margin of 7.9% [8] - Operating expenses (OpEx) in the second half dropped 38% year-over-year to RMB 1.3 billion, demonstrating effective cost-saving initiatives [8][10] Business Line Data and Key Metrics Changes - Revenue from gaming and application services decreased by 30% to RMB 3.3 billion, attributed to the optimization of flagship IP [9][11] - The MY business revenue declined by 43% to RMB 1.2 billion, primarily due to the disposal of the Singapore early education business [12] - Despite revenue declines, the gross margin for gaming and application services remained high at 67% [11] Market Data and Key Metrics Changes - The company is optimistic about growth opportunities in Africa and Asia, indicating a focus on expanding its addressable market [6][12] - The management noted challenges in the U.S. market due to economic uncertainties, impacting overall performance [5] Company Strategy and Development Direction - The company is focusing on leveraging AI for growth and cost optimization, transitioning from optimization to execution [4][6] - Plans to introduce native AI games and expand product lines to capture new market opportunities [5][17] - The company aims to maintain profitability while committing to shareholder returns, including a dividend of no less than HKD 1 [23][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market recovery in 2026, contingent on geopolitical stability, particularly in the Middle East [16][27] - The company is committed to aggressive cost optimization and expects to return to growth by the end of 2026 [26][30] Other Important Information - The company received an ESG rating of A, reflecting its commitment to sustainable practices [26] - The introduction of the AP10 product is expected to enhance service deployment capabilities [17] Q&A Session Summary Question: What is the company's progression with overseas business expansion with Zhongke WengAI? - The partnership is progressing well, with new products expected to be announced soon [51][54] Question: Is there any CapEx plan for AI-related development? - The company plans to double its CapEx in the AI area, expecting RMB 300 million in 2025 [53][54] Question: What is the latest development of the Thailand project? - The project is advancing, focusing on using AI to teach and assess capabilities, with strong support from the local government [56][58]

Financial Data and Key Metrics Changes - In 2025, the company achieved an operating profit of RMB 164 million, representing a 47% year-over-year growth and a 41% half-over-half growth [9] - The operating margin improved to 7.9%, an increase of almost 3 percentage points year-over-year and half-over-half [9] - Full-year revenue for 2025 was RMB 2.4 billion, down 26% year-over-year, with gaming and application services revenue decreasing by 30% to RMB 3.3 billion [10] - Gross profit was RMB 3.1 billion, down 30% year-over-year [10] - Operating expenses (OpEx) in the second half dropped 38% year-over-year to RMB 1.3 billion, demonstrating effective cost-saving initiatives [9][10] Business Line Data and Key Metrics Changes - The gaming and application services segment saw a revenue decline of 30% to HKD 3.3 billion, but maintained a gross margin of 67% [12] - The Mynd.ai business experienced a 43% revenue decline to RMB 1.2 billion, primarily due to the disposal of the Singapore early education business [13] - Despite the revenue decline, the gross margin for the Mynd.ai business remained stable at 35% [13] Market Data and Key Metrics Changes - The company noted challenges in the global economy and uncertainty in U.S. policies affecting its largest market [5] - The management expressed optimism about growth opportunities in Africa and Asia, indicating a focus on expanding market presence in these regions [6] Company Strategy and Development Direction - The company is focusing on leveraging AI for growth and cost optimization, transitioning from optimization to execution of costs [4][6] - There is a commitment to enhance shareholder returns, with a dividend of no less than HKD 1 per share planned for 2026 [25] - The company aims to maintain profitability while applying AI and expects to return to growth towards the end of 2026 [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but highlighted a meaningful recovery in the second half of 2025 [9] - The outlook for 2026 is cautiously optimistic, with expectations of market recovery and growth opportunities in AI and education sectors [6][32] - The company is committed to aggressive cost optimization to ensure EBITDA breakeven and maintain cash flow [34][35] Other Important Information - The company won the Company of the Year award at BETT, a significant recognition in the education sector [20] - The management is working on a sovereign education large language model to cater to the needs of developing countries [30][31] - The company received an ESG rating of A, reflecting its commitment to environmental, social, and governance standards [28] Q&A Session Summary Question: What is the company's progression with overseas business expansion with Zhongke WengAI? - The company is on the verge of announcing new products for both Hong Kong and overseas markets, with positive progress in the partnership with Zhongke WengAI [46][47] Question: Is there any CapEx plan for AI-related development or investment? - The company plans to double its CapEx in the AI area, expecting to reach RMB 300 million in 2025 [45] Question: What is the latest development of the Thailand project and other national-level projects? - The Thailand project is progressing well, focusing on using AI to teach people how to use AI tools, with expectations for continued collaboration with the government [48][49]

Financial Data and Key Metrics Changes - In the second half of 2025, operating profit grew 47% year-over-year to RMB 164 million, with an operating margin of 7.9%, up nearly 3 percentage points year-over-year [9] - Full year revenue for 2025 was RMB 2.4 billion, down 26% year-over-year, with gaming and application services revenue decreasing by 30% to RMB 3.3 billion [10] - Operating expenses in the second half dropped 38% year-over-year to RMB 1.3 billion, demonstrating effective cost-saving initiatives [9][10] Business Line Data and Key Metrics Changes - Gaming and application services revenue decreased by 30% to HKD 3.3 billion, but gross margin remained high at 67% [12] - MY business revenue declined 43% to RMB 1.2 billion, primarily due to the disposal of the Singapore early education business [13] - Despite revenue declines, the core segmental profit margin for gaming increased by 3.9 percentage points to 27.4% [12] Market Data and Key Metrics Changes - The company is optimistic about growth opportunities in Africa and Asia, leveraging AI technology to enhance market presence [7][8] - The education sector faces challenges due to global economic uncertainties, particularly in the U.S. market [6] Company Strategy and Development Direction - The company aims to leverage AI for growth, transitioning from cost optimization to execution [5] - A focus on developing native AI games and expanding product lines to capture a larger addressable market is emphasized [5][7] - The introduction of the sovereign education large language model aims to cater to local needs in both developed and developing countries [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market recovery in 2026, contingent on geopolitical stability, particularly in the Middle East [16][26] - The company plans to maintain profitability while applying AI to optimize costs and enhance growth [25][26] Other Important Information - The company committed to a dividend of no less than HKD 1 for 2026 and plans to return no less than HKD 600 million to shareholders [23][34] - The company received an A rating for its ESG efforts, indicating a strong commitment to sustainability [25] Q&A Session Questions and Answers Question: What is the company's progression with overseas business expansion with Zhongke WengAI? - The company is on the verge of announcing new products for both Hong Kong and overseas markets, with positive progress in the partnership with Zhongke WengAI [42][43] Question: Is there any CapEx plan or guidance for AI-related development? - The company plans to double its CapEx in the AI area, expecting to reach RMB 300 million in 2025 [41] Question: What is the latest development of the Thailand project and other national-level projects? - The Thailand project is progressing well, focusing on using AI to teach and assess capabilities, with expectations for continued collaboration with the local government [44][46]

Financial Performance - Company reported a total revenue of 4.48 billion RMB for the year 2025, with 3.28 billion RMB from gaming and application services, and 1.20 billion RMB from Mynd.ai business [1] - Gross margin increased by 5.1 percentage points year-on-year to 70.3% [1] - Operating expenses decreased by 22.2% year-on-year, leading to a 47.7% increase in operating profit in the second half of the year [1] Shareholder Returns - The board approved a final dividend of 0.5 HKD per share, totaling 1.0 HKD per share for the year [1] - Company committed to distributing no less than 600 million HKD to shareholders through dividends and share buybacks over the next 12 months [1] Gaming Sector - Company focused on developing AI-native games, reducing R&D expenses by 33.2% year-on-year, with AI accounting for 25% of total workload, aiming to increase this to 50% by the end of 2026 [2] - Monthly active users for the "Magic Domain" IP grew by 11.1% year-on-year, with revenue increases of 6.4% and 21.3% for the "Conquer" and "Yinghun Zhiren" IPs, respectively [2] Education Sector - Company advanced the integration of "gamified learning" and "AI + education," achieving full-process automation in content production [2] - Strategic cooperation established with Thailand's Ministry of Higher Education to create an AI-driven ecosystem from learning to employment [2] - Partnership with the World Bank to support the digital transformation of 250 schools in Cameroon, including the establishment of the first AI smart classroom in Yaoundé [2] Strategic Investments - Company made significant progress in strategic investments in cutting-edge technologies and AIGC, with rapid sales growth for the new generation AI glasses from ROKID [3] - Continued focus on AI, AR, and embodied intelligence, as well as cultural creative industries like AI short dramas and animation production [3] - Company’s MSCI ESG rating improved from BBB to A, reflecting ongoing efforts in environmental protection, social responsibility, and corporate governance [3] Future Outlook - Company aims to continue focusing on "AI + gaming" and "AI + education" to create immersive and intelligent digital community experiences for global users [3] - Strategic goal to become a leading AIGC creative enterprise [3]

网龙(00777.HK)发布截至2025年12月31日止年度业绩，该集团取得收益人民币 44.75亿元(单位下同)， 同比减少26%;公司拥有人应占溢利1.51亿元，同比减少51.45%;每股盈利28.58分，拟派发末期股息每股 0.5港元。 ...

Core Viewpoint - NetDragon (00777) reported a revenue of RMB 4.475 billion for the year ending December 31, 2025, a decrease of 26% year-on-year, with a profit attributable to shareholders of RMB 151 million, down 51.45% year-on-year. The company is transitioning towards becoming a leading AIGC (AI-Generated Content) enterprise through its "immediate AI" strategy, achieving initial organizational transformation and operational cost optimization [1]. Financial Performance - The company achieved a revenue of RMB 4.475 billion, a decrease of 26% year-on-year [1] - Profit attributable to shareholders was RMB 151 million, down 51.45% year-on-year [1] - Earnings per share were 28.58 cents, with a proposed final dividend of HKD 0.5 per share [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% year-on-year [1] Strategic Developments - The company has made significant progress in the education AIGC sector, establishing a digital education ecosystem centered on "gamified learning" [2] - Mynd.ai, a subsidiary listed in the U.S., saw a 21.1% year-on-year reduction in operating expenses, with adjusted EBITDA losses narrowing by 61.8% in Q4 2025 [2] - In the gaming AIGC sector, the company is actively researching AI-native games and exploring new game categories [2] - The operating profit margin for the gaming and application services business reached 27.4%, an increase of 3.9 percentage points year-on-year [2] Strategic Partnerships - The company has formed strategic partnerships with ByteDance's Volcano Engine to develop AIGC educational resources in higher and vocational education [3] - A long-term collaboration has been established with Thailand's Ministry of Higher Education and Research to promote an AI-driven "Learn-to-Career" ecosystem [3] - In partnership with the World Bank, the company signed an agreement with Cameroon’s Ministry of Secondary Education to support the digital transformation of 250 schools [3] - The Hong Kong subsidiary, Chuangqi Si, has secured strategic investment from leading AI firm Zhongke Wenge, becoming its exclusive overseas platform and commercialization partner [3] Shareholder Returns - Since announcing a shareholder return plan of no less than HKD 600 million on August 29, 2025, the company has fulfilled this commitment through dividends and share buybacks [4] - The operating profit for the gaming and application services business remained stable at RMB 897 million [4] - As of December 2025, the company maintained a strong cash and liquidity reserve totaling RMB 2 billion, with a commitment to continue providing at least HKD 600 million in distributions to shareholders over the next twelve months [4]

EF001 | 其他信息 | | | --- | --- | | 其他信息 | 不適用 | | 發行人董事 | | | | 於本公佈日期，董事會成員包括五名執行董事劉德建博士、梁念堅博士、劉路遠先生、陳宏展先生及林云女士；一名非執行董事林 | 第 2 頁 共 2 頁 v 1.1.1 棟樑先生；及三名獨立非執行董事李繩宗先生、廖世強先生及盧永仁博士。 EF001 免責聲明 | 公告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。 | 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告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 | | --- | --- | | 股票發行人現金股息公告 | | | 發行人名稱 | 網龍網絡控股有限公司 | | 股份代號 | 00777 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 | 截至2025年12月31日止年度之末期股息 | | 公告日期 | 2026年3月26日 | | 公告狀態 | 新公告 | | 股息信息 | | | 股息類型 | 末期 | | 股息性質 | ...

Financial Performance - In 2025, NetDragon Websoft Holdings Limited's overall operating expenses decreased by 22.2% year-on-year, with operating profit in the second half of the year increasing by 47.7%[3]. - The company's game and application services revenue for 2025 was RMB 3.3 billion, a year-on-year decline of 16.8%, while operating profit reached RMB 897 million, only down 3.0% year-on-year[7]. - Revenue for 2025 was RMB 4.5 billion, a decrease of 26.0% year-on-year, with game and application services contributing RMB 3.3 billion, accounting for 73.2% of total revenue[15]. - Mynd.ai's revenue for 2025 was RMB 1.2 billion, representing a 43.2% decline year-on-year, primarily due to the sale of the Singapore early education business and ongoing industry demand adjustments[15]. - The company reported a gross profit of RMB 3.1 billion, with a gross margin improvement of 5.1 percentage points to 70.3%[15]. - The operating loss for Mynd.ai was RMB 358 million, with a reduction of 12.4% in the second half of 2025 compared to the previous year[14]. - The company reported a net profit of RMB 36 million for 2025, a decrease of 68.4% from RMB 114 million in 2024[17]. - Basic earnings per share for 2025 were RMB 28.58, down from RMB 58.60 in 2024[18]. - For the fiscal year ending December 31, 2025, the total revenue was RMB 4,475 million, with a profit of RMB 303 million[32]. Cost Management - The company achieved a 21.1% year-on-year reduction in operating expenses for its U.S.-listed subsidiary Mynd.ai, with adjusted EBITDA losses narrowing by 61.8% in Q4 2025[4]. - Operating expenses decreased by 22.2% year-on-year to RMB 2.6 billion, reflecting the effectiveness of cost optimization measures[15]. - Research and development expenses were RMB 1,013 million, down 29.1% from RMB 1,429 million in 2024[17]. - The R&D expenses for the game and application services segment decreased by 33.2% year-on-year, with AI's share of total workload in gaming increasing to 25%[9]. Strategic Initiatives - The company has established strategic partnerships with ByteDance's Volcano Engine and Thailand's Ministry of Higher Education to enhance AI-driven educational resources and ecosystems[5]. - The company aims to increase the proportion of AI workload in game development to 50% by the end of 2026, enhancing efficiency and innovation in new game products[9]. - The company plans to launch new game categories such as match-3 and Rogue-like by 2026, focusing on AI-native games and diverse product offerings[10]. - The company is collaborating with Thailand's Ministry of Higher Education to develop an AI-enabled learning platform and assessment framework by February 2026[11]. Shareholder Returns - The company plans to continue providing a total shareholder return of no less than HKD 600 million over the next twelve months through dividends and share buybacks[6]. - The company announced a final dividend of HKD 0.50 per share, pending approval at the upcoming annual general meeting[15]. - The company paid dividends amounting to RMB 487 million in 2025, an increase from RMB 453 million in 2024, indicating a 7.5% rise in dividend payouts[22]. - The company plans to issue a final dividend of HKD 0.50 per share for the year ending December 31, 2025, totaling approximately RMB 238 million[72]. Asset and Liability Management - Total assets decreased to RMB 10,933 million in 2025 from RMB 10,432 million in 2024[19][20]. - Current liabilities increased to RMB 4,456 million in 2025, compared to RMB 4,414 million in 2024[20]. - Cash and cash equivalents decreased to RMB 1,545 million in 2025 from RMB 2,498 million in 2024[19]. - The company incurred a net cash outflow from investing activities of RMB 1,093 million in 2025, compared to RMB 875 million in 2024, indicating increased investment expenditures[21][22]. - New bank loans increased to RMB 2,106 million in 2025 from RMB 1,790 million in 2024, reflecting a 17.6% rise in financing activities[22]. Employee and Governance Changes - The total number of employees decreased to 3,061 as of December 31, 2025, from 4,593 on December 31, 2024, with significant reductions in R&D and sales personnel[47]. - The company has seen a significant reduction in R&D staff from 2,505 in 2024 to 1,360 in 2025, indicating a strategic shift in resource allocation[47]. - The Audit Committee, consisting of three independent non-executive directors, reviewed the financial statements for the fiscal year ending December 31, 2025, ensuring compliance with applicable accounting standards[80]. - The company confirmed compliance with the corporate governance code throughout the review year[78]. Share Repurchase and Incentive Plans - The company repurchased 5,333,500 shares to be held as treasury stock as of December 31, 2025[50]. - The company aims to enhance earnings per share through the share repurchase program, benefiting both the company and its shareholders[81]. - The company has adopted the 2024 Share Option Scheme and the 2024 Share Award Scheme, which allows for the issuance of up to 52,766,253 shares, representing 10.03% of the total shares as of the announcement date[56]. - As of December 31, 2025, no share options were granted under the 2024 Share Option Scheme, and a total of 360,000 shares were awarded under the 2024 Share Award Scheme[63].