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] - A dividend of HKD600 million is planned to be returned to shareholders, with a slight increase in the dividend per share to $0.50 compared to RMB0.40 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 strategy [1][4] - The company is transitioning towards a SaaS business model, with significant progress reported in integrating AI technologies into its offerings [2][3] Market Data and Key Metrics Changes - The company is optimistic about the recovery of the gaming market in Europe, particularly with the approval of Germany's Digital Pad 2.0 project, which the company is involved in [14][15] - There are ongoing efforts to leverage AI in education, particularly in developing countries, which aligns with global trends in educational technology [7][8] Company Strategy and Development Direction - The company is fully embracing AI and has signed an agreement to acquire AI voice assistant technology, which will enhance its educational products [3][4] - A focus on creating an AI content factory is part of the strategy to scale content production and improve educational offerings [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming market challenges in the education sector through cost optimization and new technology integration [12][16] - The outlook for the second half of the year remains positive, with expectations for growth in both the gaming and education sectors [13][16] Other Important Information - The company is actively participating in international conferences to share its experiences and strategies in AI and education, 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 gaining traction [19][20][21] Question: What are the short-term factors affecting the gaming business and its growth prospects? - Management acknowledged a slowdown in gaming but emphasized plans to explore new business models leveraging blockchain and AI, indicating a strategic pivot [23][24]

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].

Financial Performance - The company's revenue decreased by 27.9% year-over-year, totaling RMB 2,381 million in 1H25, compared to RMB 3,301 million in 1H24 [14] - Profit attributable to owners of the company decreased significantly by 92.5% year-over-year, from RMB 400 million in 1H24 to RMB 30 million in 1H25 [14] - Interim dividend per share increased by 25%, from HK$0.4 to HK$0.5 [14] Segmental Analysis - Gaming and Application Services revenue decreased by 18.1% year-over-year, amounting to RMB 1,738 million in 1H25, compared to RMB 2,121 million in 1H24 [14] - Mynd.ai revenue experienced a substantial decrease of 45.7% year-over-year, with revenue of RMB 641 million in 1H25 compared to RMB 1,180 million in 1H24 [14] - Research and Development expenses in Gaming and Application Services segment decreased by 26.7% year-over-year [11, 23] Strategic Initiatives - The company is comprehensively deploying an AI content factory, enhancing overall efficiency by 15% initially and aiming for 25% with full build-out [11, 23] - The company is focusing on high-quality content and cultural experiences to ensure the flagship IP Eudemons achieves evergreen growth [92] - The company plans to distribute no less than HKD 600 million to shareholders over the next 12 months through dividends and share repurchases [89]

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。 ...

Core Viewpoint - NetDragon (00777) reported the performance of its non-wholly-owned subsidiary Mynd.ai, Inc. for the six months ending June 30, 2025, showing a revenue of $89.272 million and a net loss of $28.892 million, which represents a year-on-year reduction of 39.57% in losses [1] Financial Performance - Revenue for the six-month period reached $89.272 million [1] - The net loss was recorded at $28.892 million, a decrease of 39.57% compared to the previous year [1] - The net loss per ordinary share was $0.06 [1]

Core Viewpoint - NetDragon (00777) reported a mid-year revenue of RMB 2.381 billion for 2025, with a gross profit of RMB 1.655 billion and a net profit attributable to shareholders of approximately RMB 30 million, reflecting a focus on long-term game operations and user experience enhancement despite short-term revenue declines [1] Group 1: Financial Performance - The company's revenue from game and application services was RMB 1.7 billion, with a focus on long-term game IP development [1] - Operating expenses for game and application services decreased by 14.7% year-on-year, showcasing effective cost control [1] - Operating profit for the segment rebounded to RMB 501 million, indicating strong resilience and positive recovery momentum [1] Group 2: AI Strategy in Gaming - The company established an AI production center to enhance organizational efficiency, resulting in a 26.7% reduction in R&D expenses [2] - The flagship IP "Magic Domain" is set to launch multilingual versions to expand into new overseas markets [2] - New game "Code MY" is in small-scale testing, while "Code Alpha" will expand into multiple overseas markets [2] Group 3: AI in Application Services - The company is focusing on AI technology services in the domestic education sector, including a collaboration with Thailand for vocational education [3] - A partnership with Cameroon aims to enhance digital education and improve educational equity and quality [3] - The Hong Kong subsidiary Cherrypicks is transforming into a key platform for Chinese AI technology in overseas markets [3] Group 4: Investment in Emerging Technologies - The company invested in AI edge device firms, successfully launching a new generation of AI glasses [4] - The influence of the company's invested IP matrix continues to grow, enhancing commercialization capabilities [4] - The company holds approximately 12,000 Ether units, valued at RMB 211 million, indicating a strategic focus on AI, XR, robotics, and blockchain technologies [4]

Financial Performance - In the first half of 2025, the company reported revenue of 2.38 billion RMB and gross profit of 1.66 billion RMB, with a gross margin increase of 2.9 percentage points to 69.5% year-on-year [1] - Operating expenses decreased by 15.6% year-on-year to 1.35 billion RMB, reflecting the effectiveness of cost optimization and efficiency improvement measures [1] Business Operations - The gaming business is undergoing a "long-term operation plan" with stable performance, despite short-term revenue fluctuations, showing only a slight decline in revenue quarter-on-quarter [1] - The Mynd.ai business faced challenges due to increased tariffs and weak demand in core markets, but the company is focused on optimizing operations and improving cost efficiency [1][2] Shareholder Returns - The board approved an interim dividend of 0.5 HKD per share, a 25% increase year-on-year, and plans to distribute no less than 600 million HKD to shareholders through dividends and share buybacks over the next 12 months [2] Strategic Initiatives - The company is embracing the AI era, implementing "AI + gaming" and "AI + education" strategies, with gaming and application services revenue of 1.74 billion RMB in the first half of 2025, down 18.1% year-on-year [2] - The flagship IP "Magic Domain" is enhancing content quality and engaging in various cultural and social projects to boost user activity [2] Product Development - The new product "Code MY" has begun small-scale testing, and the mobile game "Code Alpha" will expand into multiple overseas markets [3] - The company plans to leverage its AI production center to launch multilingual versions of its flagship IP and has successfully entered the mini-game market with "Magic Domain Legend" [3] AI Integration - The company has introduced leading domestic AI model firm Zhongke Wenge as a strategic shareholder to assist its AI transformation [4] - Collaborative AI applications have been developed, marking a significant step for Chinese core AI technology to enter international markets [4]

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 ...