NetDragon Announces 2025 Annual Financial Results

Cost Optimisation Delivered Notable Results with Operating Profit Up 48% YoY in H2 2025 Final Dividend of HKD0.5 Per Share, AnnoNetDuncing New Shareholder Return Program of No Less Than HKD600 Million HONG KONG, March 26, 2026 /PRNewswire/ — NetDragon Websoft Holdings Limited (‘NetDragon’ or the ‘Company’; Hong Kong Stock Code: 0777), a global leader in building internet communities, announced its financial results for fiscal year 2025 today. NetDragon’s management team will be hosting a conference call and webcast on March 27, 2026 at 10:00am Hong Kong time, to discuss the results and recent business developments. Dr. Dejian Liu, Chairman of NetDragon, commented: ‘In 2025, following our strategy to ‘Fully Embrace AI’, the Company further introduced the ‘AI Now’ strategy to fully implement our transformation. We have made encouraging progress across our core verticals of education, gaming and AI+ strategic investments across various sectors. The Company has taken initial steps of transforming into an AI organisation, advancing toward our long-term vision of becoming a global leader in AIGC. Meanwhile, we continued our operational optimisation initiatives. Our overall operating expenses for the year decreased by 22.2% YoY, while operating profit in the second half of the year increased by 47.7% YoY. We expect the benefits of cost optimisation to be further realised in 2026, laying a solid foundation for the Company’s long-term value creation.’ ‘In education AIGC, leveraging our AI Content Factory, we achieved multiple breakthroughs in product innovation, content creation, and AI integration, building a digital education ecosystem centered on ‘gamified learning’ and laying a strong foundation for scalable, intelligent and immersive learning experiences. Our US-listed subsidiary, Mynd.ai has reduced the segmental operating expenses by 21.1% YoY in 2025, whilst the adjusted EBITDA loss has been reduced by 61.8% QoQ in 4Q 2025. In gaming AIGC, we are actively incubating AI-native games, expanding into new genres and exploring the next-generation gaming experiences driven by AI as the core operational logic. Our flagship IP maintained solid profitability, with the core segmental profit margin of the gaming and application services reaching 27.4%, representing an increase of 3.9 percentage points YoY, whilst the profit scale remained solid. In AI+ strategic investments, we are focusing on unlocking the potential of AI computing power and AIGC production capacity. We will continue to invest in various frontier sectors such as AI and AR .’ ‘We have also established several significant strategic collaborations to support our long-term development. We have entered into a partnership with Volcengine, ByteDance’s cloud and AI service platform. Together, the two parties will build a deep competitive moat integrating technology, resources, and ecosystem in China’s higher education and vocational education sectors. By scaling the production of next-generation AIGC educational resources, we aim to create a globally co-created and shared innovative education ecosystem. We established a long-term cooperation with Thailand’s Ministry of Higher Education, Science, Research and Innovation (MHESI) to systematically advance an AI-driven ‘Learn-to-Career’ ecosystem in Thailand. With the support of the World Bank, we signed a cooperation agreement with Ministry of Secondary Education of Cameroon (MINESEC) to jointly promote the digital transformation of 250 schools across the country. In addition, our Hong Kong subsidiary Cherrypicks successfully secured the strategic investment from Zhongke WengAI, a leading AI enterprise in China and has repositioned as the exclusive overseas expansion platform and commercialisation partner for Zhongke WengAI in overseas markets. Supported by these strategic partners, We are well placed to accelerate our progress toward becoming a global leader in AIGC creation.’ ‘Our ongoing efforts in key aspects of sustainable development, such as environmental protection, social responsibility, and corporate governance, have continued to receive widespread recognition. Recently,