Benefit Sooner than Tax Up 19% YoY

Ultimate Dividend Larger via 25% YoY to HK$0.5 In step with Proportion

HONG KONG, March 26, 2025 /PRNewswire/ — NetDragon Websoft Holdings Restricted (“NetDragon” or the “Company”; Hong Kong Book Code: 0777), a world chief in construction web communities, introduced its monetary effects for fiscal yr 2024 lately. NetDragon’s control workforce will likely be webhosting a convention name and webcast on March 27, 2025 at 10:00am Hong Kong moment, to speak about the consequences and up to date trade traits.

Dr. Dejian Liu, Chairman of NetDragon, commented: “In 2024, global artificial intelligence (AI) technology continued to advance at a rapid pace, with developers achieving remarkable breakthroughs. As AI reshapes industries worldwide, we have proactively launched strategic initiatives to harness this wave of change. At the core of our vision is a dual-focus strategy—AI+Gaming and AI+Education—driving us toward “limitless expansion”.”

“In the gaming sector, we have seamlessly integrated cutting-edge AI tools to enhance production efficiency and elevate content quality, while also pioneering the development of “AI-native” games. Our flagship IP Eudemons has undergone a series of optimizations, further strengthening ecosystem balance and significantly enhancing the player experience, laying a solid foundation for its sustainable growth. In the education sector, we successfully won the tender to upgrade the “Nationwide Ingenious Training Platform Venture” in July, reinforcing our commitment to supporting China’s national strategy of “leveraging AI to turn into schooling”. On the international front, we have partnered with Thailand’s Ministry of Higher Education, Science, Research and Innovation (MHESI) to develop an online AI education platform and offer professional training tailored for university students and the larger youth community. Additionally, our U.S.-listed subsidiary, Mynd.ai, took a major step forward in January 2025 with the launch of its next-generation interactive flat panel—ActivPanel 10 and software solutions ActivSuite^TM. Moving forward, we will focus on scaling SaaS revenue and solidifying Mynd.ai’s position as the global leader in AI-driven classroom technology.”

“This year, we leveraged advanced AI tools to establish an automated production line (“AI Content material Manufacturing unit”) and commenced the development of interactive educational games. By prioritizing interactive experiences and learner-driven engagement, we aim to enable immersive learning, redefine traditional teaching methodologies, and ultimately build an educational metaverse platform.”

“Our total revenue for 2024 decreased by 14.8% YoY to RMB6.0 billion, as Mynd.ai continued to navigate through industry-wide challenges, along with strategic adjustments in our gaming business. Nevertheless, our profit before tax increased by 19.1% YoY to RMB756 million, driven by higher investment returns, approximately RMB100 million in staff cost savings from continuing operations^[1], improved operating efficiency enabled by our AI+ strategy and lower financial costs as we further enhanced our capital structure.”

“Our net cash increased by 13.3% YoY to RMB2.1 billion with a stable operating cash inflow of RMB1.1 billion, which has laid a solid foundation for the continued advancement of our AI+ strategy and sustained business growth. As a return to our shareholders, the Board of Directors has approved a final dividend of HKD0.5 per ordinary share for 2024, representing a 25.0% increase YoY. We remain committed to maximizing shareholder value and return through offering sustainable dividends and maintaining a high payout ratio. Additionally, we will consider share buybacks based on market conditions to reward our long-term investors.”

Fiscal Moment 2024 Monetary Highlights

• Income used to be RMB6.0 billion, representing a 14.8% snip YoY.
• Income from gaming and alertness products and services used to be RMB3.9 billion, representing 65.1% of the Workforce’s general earnings and a 6.0% snip YoY.
• Income from Mynd.ai trade used to be RMB2.1 billion, representing 34.8% of the Workforce’s general earnings and a 27.6% snip YoY.
• Rude benefit used to be RMB3.9 billion, representing a ten.4% snip YoY.
• Core segmental benefit^[2] from the gaming and alertness products and services used to be RMB925 million, representing a 33.9% snip YoY.
• Core segmental loss^[2] from Mynd.ai trade used to be RMB297 million, in comparison to a lack of RMB93 million in 2023.
• EBITDA used to be RMB1.4 billion, representing a 7.1% build up YoY.
• Working benefit used to be RMB745 million, representing a 9.3% snip YoY.
• Benefit prior to tax used to be RMB756 million, representing a 19.1% build up YoY.
• Benefit resulting from homeowners of the Corporate used to be RMB311 million together with an one-time non-cash deferred tax expense in Mynd.ai of RMB335 million, representing a 43.5% snip YoY from RMB550 million in 2023.
• Working cashflow used to be RMB1.1 billion, representing a 5.7% snip YoY.
• The Corporate declared a last dividend of HKD0.50 in keeping with usual proportion (2023: HKD0.40 in keeping with usual proportion), topic to kindness on the coming annual common assembly. 

Segmental Monetary Highlights

Gaming and Utility Carriers

In 2024, earnings from our gaming and alertness products and services amounted to RMB3.9 billion, representing a snip of 6.0% YoY. In the second one part of 2024, a order of strategic optimizations have been applied for our flagship IP Eudemons, in form with our long-term means of turning in constant fine quality gaming reviews. Such optimizations considerably enhanced participant revel in, drove person expansion and engagement, moment solidified the base for the IP’s long-term sustainability.

Right through the yr, now we have persisted to refine our “AI + Gaming” technique, leveraging state-of-the-art massive language fashions similar to GPT-4, Claude, Qwen, and Coze, moment additionally creating proprietary features in response to DeepSeek structure. We now have additionally deepened the sensible deployment of AI products and services like Midjourney and Hunyuan, integrating them into our manufacturing workflows. Those efforts have culminated within the origination of an AI Agent Platform and the status quo of a complete AI Content material Manufacturing unit adapted to our in-house building wishes. By way of integrating AI throughout key boxes—together with artwork, programming, competition design, checking out, and customer support—now we have enhanced operational potency, with positive competition building processes reaching important productiveness beneficial properties. In consequence, our gaming groups were in a position to sharpen their strategic focal point and optimize organizational buildings, with the prospective to successfully let go our competition building prices in 2025. But even so, now we have introduced our proprietary AI-powered cheat detection machine and presented AI partners, raising the participant revel in to unused heights. Past this, we’re pushing the bounds of AI-native gameplay and content material innovation.

In 2024, our flagship IP Eudemons skilled some moderate on account of our proactive optimization measures. On the other hand, we stay dedicated to our fine quality content material technique, which has pushed persisted expansion in person scale and engagement. The full MAU for Eudemons IP higher via 10.1% YoY, with Eudemon PC-mobile Move Platform Model vision a 37.5% YoY surge in MAU. All the way through the yr, we additionally deepened collaborations with conventional Chinese language cultural heritage inside of Eudemons PC competition. This incorporated diverse in-game occasions that includes the Tongliang Dragon Dance, Nanjing Brocade, and Chaoshan Yingge Dance, which no longer simplest enriched the cultural intensity of the sport but additionally bolstered the relationship with our gamers. Moreover, we partnered with Jiayu Go, Quanzhou Cultural Tourism, and Harbin Cultural Tourism to discover unused cross-industry fashions that mix gaming and cultural tourism. At the cellular entrance, we delicate our business plan and optimized content material in alignment with our tasks in PC video games, chief Eudemons On-line Patch Model to win {industry} awards such because the “Players’ Favorite Mobile Game” on the Blonde Plume Award.

Our Heroes Developed IP made important strides in its long-term delicate operations and eSports ecosystem. The PC model has accomplished earnings expansion for 2 consecutive years, with an 18.3% YoY build up in 2024, pushed via the a hit enhancement of the IP’s affect via eSports tournaments. Viewership for our summer season and wintry weather tournaments higher via 71% and 88%, respectively, in comparison to the former event, chief to a 5.3% YoY stand in APA.

For our Overcome IP, earnings efficiency in its core marketplace, Egypt, used to be impacted via fluctuations within the Egyptian pound. On the other hand, in native foreign money phrases, Overcome out of the country model accomplished an 8.8% YoY earnings expansion in 2024. Shifting ahead, we try to draw unused participant areas via blind gameplay moment proceeding to cater to MMO gamers.

With regards to pipeline, the highly-anticipated sequels to our flagship IP are progressing neatly. Eudemons Remake Model is about to starting in 2025, moment Legend of Eudemons debuted on WeChat Petite Program in early 2025. Moreover, our unused MMORPG cellular competition, Miracland Saga (Code-Dragon), in response to a wholly unused IP, is scheduled for let go in out of the country markets via a publishing spouse in 2025.

NetDragon not too long ago signed a expression sheet with Beijing Wenge Generation Co., Ltd. (“Wenge”) to solely collaborate outdoor mainland China in selling AI products and services. Wenge is an AI corporate incubated via the Institute of Automation on the Chinese language Academy of Sciences. Topic to the signing of particular promise, Wenge will create a strategic funding of RMB75 million in coins and AI belongings into NetDragon’s subsidiary Cherrypicks to help its transformation into a world AI products and services supplier. Wenge has independently advanced the “Yayi” LLM and 3 nationwide degree datasets, turning in scalable AI products and services in numerous areas similar to finance and schooling. Shifting ahead, we can paintings in combination to power Cherrypicks’ long-term building and journey the adoption of “Yayi” and alternative state-of-the-art AI applied sciences in Hong Kong and out of the country markets. 

Our gaming and alertness products and services trade extra the cornerstone of our AI+Gaming and AI+Training technique. Taking a look ahead, we can proceed to include our motto of “infinite growth”, additional integrating complicated AI gear throughout all operations. We’re dedicated to construction an absolutely operational AI Content material Manufacturing unit. In the meantime, we can actively discover next-generation frontiers similar to “AI-native” video games and “interactive educational games”, shooting backup earnings streams introduced via AI moment proceeding to improve our potency within the unused AI-era.

Mynd.ai

2024 marked our out of the country schooling subsidiary Mynd.ai’s first complete yr as a community corporate. Finishing the sale of our non-strategic early youth building trade unit in October 2024, paying unwell debt, optimizing our value construction, and beginning a proportion repurchase program have been significant steps in opposition to good our corporate. Regardless of numerous industry-wide demanding situations within the schooling sector stemming from inflation, warning of price lists and hesitancy round Federal investment for schooling, we have been in a position to capitalize on our emblem constancy, important set up bottom of over 1,000,000 study rooms and powerful distributor and spouse community to uphold our sturdy marketplace presence.

The important thing monetary highlights for Mynd.ai in 2024 are as follows:

• Income of RMB2.1 billion for the whole yr, in comparison to RMB2.9 billion within the prior yr with the snip essentially pushed via the headwinds within the world schooling marketplace because of price range uncertainties in the United States as a result of the unused govt, and financial situations in Europe as a result of wars in Ukraine, Russia and the Heart East.
• Rude Margin advanced 1.0 share issues as opposed to 2023 to 26.0%, in large part because of optimization of value of fabrics, guaranty, and freight prices
• Adjusted EBITDA loss totaled of RMB172 million, in comparison to RMB78 million 
• Money stability at year-end of RMB541 million, in comparison to RMB650 million in 2023
• Lowered remarkable indebtedness at year-end via RMB148 million
• Repurchased 151,923 American Depositary Stocks, representing 1,519,230 usual stocks, pursuant to our proportion repurchase program

Our monetary efficiency in 2024 displays our constancy to making improvements to operational potency to support fight important {industry} headwinds impacting our interactive flat panel show trade. Moment over yr, we made enhancements in our rude margin. Even if we think financial headwinds to proceed right through 2025, we’re actively responding via proceeding to optimize our running value construction, improving our go-to-market technique and increasing our portfolio of product choices. We’re fascinated about the nice and cozy reception that our not too long ago introduced ActivPanel 10 and its modular infrastructure have won, and imagine that the liberty of selection, simplicity, and suppleness that it supplies to our shoppers will higher place Mynd.ai to extra successfully compete within the marketplace.

Control Convention Name and Webcast

NetDragon’s control workforce will stock a convention name and webcast at 10:00 am Hong Kong moment on March 27, 2025 to speak about the consequences and up to date trade traits.

Details of the are living convention name and webcast are as follows:

The are living and archived webcast of the convention name will likely be to be had at the Investor Family members category of NetDragon’s web page at http://ir.nd.com.cn/en/category/webcast. Individuals of the are living webcast will have to consult with the aforementioned web page 10 mins previous to the decision, next click on at the icon for “2024 Annual Results Conference Call and Webcast” and practice the registration directions.

About NetDragon Websoft Holdings Restricted

NetDragon Websoft Holdings Restricted (HKSE: 0777) is a world chief in construction web communities, with a protracted observe report of creating and scaling a couple of web and cellular platforms that have an effect on masses of tens of millions of customers, together with earlier institutions of China’s first on-line gaming portal, 17173.com, and China’s maximum influential smartphone app pack platform, 91 Wi-fi.

Established in 1999, NetDragon is likely one of the maximum respected and chief on-line competition builders in China with a historical past of a hit competition titles together with Eudemons On-line, Heroes Developed, Overcome On-line and Beneath Word. Within the moment 10 years, NetDragon has additionally accomplished good fortune with its on-line schooling trade each locally and globally, and its out of the country schooling trade, lately a U.S.-listed subsidiary named Mynd.ai, is a world chief in interactive era and its award-winning interactive shows and tool can also be discovered in additional than 1 million finding out and coaching areas throughout 126 international locations.   

For investor enquiries, please touch:
NetDragon Websoft Holdings Restricted
Ms. Maggie Zhou
Senior Director of Investor Family members
Electronic mail：[email protected] / [email protected]
Website online：ir.netdragon.com 

SOURCE NetDragon Websoft Holdings Restricted