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]