Core Viewpoint - NetDragon is focusing on leveraging AI technology to enhance operational efficiency and drive growth in both gaming and education sectors, with a positive outlook for the second half of 2025 and beyond [1][4]. Financial Performance - In the first half of 2025, NetDragon reported revenues of 2.381 billion RMB, with gaming and application services generating 1.738 billion RMB and Mynd.ai contributing 641 million RMB [1]. - The company achieved a significant reduction in R&D expenses by 26.7% year-on-year, while overall sales and marketing expenses decreased by 4.6%, and administrative expenses fell by 14.0% [1][2]. Gaming Business - The gaming segment is expected to stabilize, with key IPs like "Magic Domain" showing an 11.3% year-on-year increase in monthly active users (MAU) [2]. - The company is actively pursuing cross-industry collaborations to enhance the cultural significance and social impact of its IPs [2]. - New product developments include "Code MY," which is undergoing user testing, and plans to launch multiple language versions of existing games in overseas markets [2][8]. Education Sector - Mynd.ai has faced revenue declines due to budget cuts in the European and American education markets, but is expected to recover as budgets stabilize [3][4]. - The company is implementing cost optimization strategies and has seen a recovery in gross margin to 31% in Q2 [3]. - NetDragon is expanding its AI capabilities in education, including the integration of AI voice assistant technology into its platforms [3][10]. Strategic Initiatives - The company is committed to global expansion, particularly in Southeast Asia, the Middle East, and Africa, while enhancing user experience through innovative products like AI production centers [4][12]. - Strategic partnerships, such as with Zhongke Wenge, aim to develop AI applications that can be marketed across various regions [11]. Future Outlook - Management expresses optimism for the gaming business to gradually recover, with expectations for Mynd.ai to reach EBITDA profitability by 2026 [4]. - The company plans to distribute at least 600 million HKD to shareholders through dividends and share buybacks within the next 12 months [4].