NETDRAGON (00777) surged more than 10%. At the time of writing, the stock was up 6.42%, trading at HK$11.6 with a turnover of HK$183 million.
Market attention has recently remained focused on the field of AI applications.
Notably, NETDRAGON has made strategic investments in ROKID, Cherrypicks, and Shuaiku Network, further strengthening its ecosystem layout in areas such as AI, the metaverse, and pan-entertainment.
In the AI sector, its subsidiary Cherrypicks signed a cooperation agreement with Wenge CN, becoming Wenge CN's exclusive overseas platform and commercialization partner in international markets.
Regarding AI and metaverse initiatives, the company strategically invested in leading AI glasses maker Rokid to explore new application scenarios for metaverse education, as well as gaming integrated with education.
In the pan-entertainment segment, the company invested in Shuaiku Network to secure a position in the group live-streaming track.
Furthermore, the company is actively expanding its layout in AI computing power, planning to significantly optimize the production efficiency and cost of AIGC educational resources, aiming to build a globally co-created and shared innovative education ecosystem.
A research report from Soochow Securities pointed out that the company is comprehensively implementing its "AI + gaming" strategy, with AI already deeply integrated into areas such as art production, code writing, and multi-language localization.
This helps existing games quickly launch multi-language versions, such as the overseas version of "Ying Hun Zhi Ren," enabling low-cost global market expansion and accelerating the development of "PC-to-mobile" conversions.
Additionally, by acquiring Merlyn Mind to introduce an AI voice assistant, the company enhances its software capabilities and accelerates the transition to a high-margin subscription-based "AI + SaaS" model, which is expected to improve the sustainability of performance and profitability.
The report is optimistic about the stable operation of the company's existing games, the educational business benefiting from equipment replacement cycles, the comprehensive empowerment of gaming and education by AI, and the performance contribution from its diversified investments.
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