NetDragon Reports Interim Financial Results for 2025 Amid Strategic AI Developments
NetDragon Reports Interim Financial Results for 2025 Amid Strategic AI Developments
On August 28, 2025, NetDragon Websoft Holdings Limited, a prominent player in building internet communities, disclosed its interim financial results for the first half of 2025, demonstrating resilience despite facing temporary hurdles. The company has focused its strategies towards operational efficiency, strategic investment in AI technologies, and a strong commitment towards enhancing shareholder returns, revealing an interim dividend and a robust return program.
Financial Highlights
The company's financial results showed notable shifts. NetDragon generated a revenue of RMB2.4 billion, illustrating a decrease of 27.9% year-on-year (YoY). Within this figure, the gaming and application services sector contributed RMB1.7 billion, representing 73.0% of total revenue, which reflected an 18.1% YoY decline. However, this sector showed signs of stabilization with only a 4.3% drop on a half-over-half (HoH) basis. In contrast, the Mynd.ai segment's revenue sank to RMB641 million, marking a 45.7% YoY decrease primarily due to economic uncertainties.
Despite challenges, the company's operating expenses were trimmed by 16%, leading to a reduction to RMB1.4 billion, with expectations of further improvements in the upcoming months. The profit attributable to owners fell to RMB30 million, a staggering 92.5% decrease; however, the company anticipates recovery in the second half due to reversal of impairment losses.
Shareholder Commitment
In line with their dedication to shareholder value, NetDragon's Board declared an interim dividend of HKD0.5 per ordinary share, a 25% increase YoY. Additionally, they announced a Shareholder Return Program totaling no less than HKD600 million over the next 12 months, achievable through dividends and share repurchases. This highlights their commitment to not only stabilizing but enhancing shareholder returns in a challenging market environment.
Embracing AI for Future Growth
In her remarks, Dr. Dejian Liu, Chairman of NetDragon, expressed optimism about the company’s long-term growth, particularly as they embrace the era of artificial intelligence (AI). The company has strategically positioned itself towards an AI+Gaming and AI+Education dual-focus strategy, fully integrating AI technologies across their operations.
The company’s flagship gaming IPs, such as Eudemons, have been rehabilitated with improvements in user engagement through increased content quality and collaborations with public welfare projects. Furthermore, the Conquer IP has been successful in breaking into overseas markets, while the 'Heroes Evolved' title witnessed a successful run bolstered by its esports model.
Innovations in Educational Technology
On the education front, NetDragon undertook a structural overhaul of its domestic EdTech business, focusing on pivotal AI-driven projects, including country-level platforms aimed at enhancing vocational training. Collaborations with governmental institutions in Thailand and Cameroon emphasize their commitment to digital education equity and national standards.
Additionally, through their U.S.-listed subsidiary, Mynd.ai, the company is progressing towards enhancing interactive technology solutions in classrooms. Recent product introductions indicate a transformative push aimed at improving cyber security and user engagement, showcasing their adaptability in a shifting tech landscape.
Future Vision
NetDragon’s exploration into frontier technologies, including blockchain and robotics, reflects its innovative spirit. Introducing advances in consumer applications such as AI edge devices signifies a promising trajectory for future endeavors. As they work to develop strategic partnerships and leverage emerging technologies, they aim to solidify their position as leaders in the digital realm.
Overall, the interim results unveil a company in transition, navigating challenges while paving the way for future growth through innovation and operational refinement. NetDragon’s proactive approach to managing economic uncertainties, integrating AI technologies, and committing to shareholder value sets a solid foundation for its sustained success.
Topics Consumer Technology）
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