Sou Hu Cai Jing·2025-09-10 01:53Core Viewpoint - NetDragon has been actively repurchasing shares while facing significant declines in revenue and profit for the first half of 2025, indicating potential challenges in its business operations and market conditions [1][2]. Financial Performance - For the first half of 2025, NetDragon reported revenue of approximately 2.4 billion RMB, a year-on-year decrease of 27.9% [2][7]. - The net profit attributable to shareholders was 30 million RMB, down 92.5% year-on-year, primarily due to impairment losses on intangible assets and one-time expenses related to personnel restructuring [2][4]. - The company confirmed an impairment loss of approximately 920 million RMB related to cryptocurrency assets due to market volatility [2]. Shareholder Returns - NetDragon plans to distribute an interim dividend of 0.5 HKD per ordinary share, representing a 25% increase year-on-year [2][6]. - The company aims to provide a total distribution of no less than 600 million HKD to shareholders over the next twelve months through dividends and share repurchases [2][6]. Employee and Operational Changes - The number of employees at NetDragon decreased from 6,123 at the end of the first half of 2024 to 3,408 at the end of the first half of 2025, with a significant reduction in R&D personnel from 3,165 to 1,556 [4][6]. Revenue Breakdown - Revenue from gaming and application services amounted to 1.7 billion RMB, accounting for 73.0% of total revenue, down 18.1% year-on-year [7]. - Revenue from the Mynd.ai business was 641 million RMB, representing 26.9% of total revenue, with a year-on-year decrease of 45.7% due to prolonged market demand adjustments [7]. Product Development - NetDragon's flagship games include popular IPs such as "Magic Domain" and "Soul of Heroes," with the mobile game "Magic Domain Pocket Edition" showing a stable performance since 2025 [8]. - The new game "Magic Domain Legend" successfully launched in the mini-game market in the first half of 2025, and the new title "Code MY" began small-scale testing in August 2025 [10].