NETDRAGON has announced its financial results for the year ended December 31, 2025. The Group recorded revenue of 4.475 billion yuan, representing a 26% decrease compared to the previous year. Profit attributable to owners of the company was 151 million yuan, a decline of 51.45% year-on-year. Earnings per share were 28.58 fen, and the Board has recommended a final dividend of 0.5 Hong Kong dollars per share. Following its "Fully Embrace AI" strategy, the Group further advanced its "AI Now" initiative in 2025, comprehensively implementing strategic transformation. Significant progress was achieved across its two core businesses—education and gaming—as well as in various strategic AI+ investment areas. The company has preliminarily accomplished its transition to an AI-oriented organizational structure and is progressing towards its ambitious goal of becoming a globally leading AIGC creation enterprise. Ongoing operational optimization efforts resulted in a 22.2% year-on-year reduction in total annual operating expenses. Operating profit for the second half of the year increased by 47.7% compared to the same period last year. The benefits of these cost optimizations are expected to be more fully realized in 2026, laying a solid foundation for the company's long-term value growth. In the educational AIGC sector, the company's AI Production Center made several breakthrough advancements in product innovation, content creation, and AI integration. It has established a digital education ecosystem centered on "gamified learning," creating a strong base for scalable, intelligent, and immersive learning experiences. The Group's US-listed subsidiary, Mynd.ai, reported a 21.1% year-on-year decrease in segment operating expenses for the full year. Its adjusted EBITDA loss narrowed by 61.8% quarter-on-quarter in the fourth quarter of 2025. Within the gaming AIGC domain, the company is actively conducting preliminary research on AI-native games, exploring new genres, and developing next-generation games with AI as the core operational logic. The company's flagship IPs maintained robust profitability. The operating segment profit margin for the Game and Application Services business reached 27.4%, an improvement of 3.9 percentage points year-on-year, with profit scale remaining stable. In the AI+ strategic investment arena, the company is focused on deeply leveraging AI computing power and AIGC production capacity and will continue to invest in promising enterprises within cutting-edge fields like AI and AR. To prepare for future development, the company has also secured several major strategic partnerships. A collaboration was formed with ByteDance's cloud and AI service platform, Volcengine. The partners aim to build deep, synergistic barriers combining technology, resources, and ecosystems within China's higher education and vocational training sectors. This collaboration will focus on the large-scale production of a new generation of AIGC educational resources to create a globally collaborative and shared innovative education ecosystem. A long-term partnership was established with Thailand's Ministry of Higher Education, Science, Research and Innovation to systematically promote an AI-driven "Learn-to-Career" ecosystem throughout Thailand. With support from the World Bank, an agreement was signed with Cameroon's Ministry of Secondary Education to jointly promote the digital transformation of 250 schools across the country. The company's Hong Kong subsidiary, Cherrypicks, successfully attracted a strategic investment from WenGe, a leading domestic AI company, transforming into WenGe's exclusive overseas expansion platform and commercial partner. The strong support from these strategic partners will further propel NETDRAGON towards its goal of becoming a world-leading AIGC creation enterprise. Since the announcement of a shareholder return plan totaling no less than 600 million Hong Kong dollars on August 29, 2025, and including the proposed final dividend, the company has already fulfilled the commitments of this plan through dividends and share repurchases. The operating segment profit for the Game and Application Services business remained robust in 2025, reaching 897 million yuan. As of December 2025, the company maintained a strong position with net cash and liquid investment reserves totaling 2 billion yuan. Reflecting confidence in the company's long-term sustainable development, a commitment has been made to distribute no less than 600 million Hong Kong dollars to shareholders over the next twelve months through dividends and share repurchases.
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