Zhi Tong Cai Jing·2025-09-04 05:49Core Viewpoint - The company, NetDragon, has announced a shareholder return plan of over HKD 600 million, instilling significant confidence in the market while continuing to create value for shareholders through its AI-driven strategies in both education and gaming sectors [1][7]. Financial Performance - For the first half of 2025, NetDragon reported revenue of HKD 2.38 billion, with a gross profit of HKD 1.66 billion and a gross margin of 69.5%, reflecting a year-on-year increase of 2.9 percentage points [1]. - Operating expenses decreased by 15.6% year-on-year to HKD 1.35 billion, showcasing the initial effectiveness of AI in cost optimization and efficiency enhancement [1]. AI Strategy and Implementation - The company is pursuing a dual strategy of "AI + Education" and "AI + Gaming," leveraging technological innovation and ecosystem collaboration to seize new growth opportunities globally [1][2]. - AI has improved overall efficiency in the gaming sector by approximately 15%, with significant advancements in AI production centers enhancing content generation and collaboration across different game teams [2][3]. Market Expansion and Product Development - NetDragon has launched a new product, "Code MY," which has received positive feedback during its small-scale testing phase, and plans to expand its flagship IP "Magic Domain" into new language versions for overseas markets [3][4]. - The company is actively expanding its AI applications in education, having started AI research as early as 2017, and is now integrating AI into educational content and hardware to enhance market competitiveness [3][4]. Global Partnerships and Collaborations - NetDragon is focusing on key AI technology service projects and vocational education, collaborating with international entities such as the Thai Ministry of Higher Education and the World Bank to enhance digital education and equity [4][5]. Long-term Investment Value - The company emphasizes long-term growth and has a strong commitment to ESG principles, which positions it favorably in the current market environment [7]. - Despite short-term performance fluctuations, NetDragon maintains a high dividend yield, proposing a dividend of HKD 0.50 per share for the first half of 2025, representing a year-on-year increase of 25% [7][8]. Shareholder Return Initiatives - The recent announcement of a shareholder return plan, which includes dividends and buybacks, aims to reassure long-term investors and reflects the company's confidence in its future prospects [8].