Netdragon Websoft Holdings Limited · HKEX:777
Netdragon Websoft — FY2024 Earnings Presentation
33 slides from Netdragon Websoft's earnings presentation, Mar 28, 2025
Slide 1: 2024 Annual Earnings Presentation
NetDragon Websoft Holdings Limited Stock Code: 777 HK 2024 Annual Earnings Presentation March 27, 2025
Slide 2: Disclaimer
Disclaimer This presentation is prepared by NetDragon Websoft Holdings Limited (the “Company”, together with its subsidiaries referred to as the “Group” in this presentation) solely for information purposes and is not to be construed as a solicitation of an offer to buy or sell any securities of the
Slide 3: Opening Remarks
Opening Remarks Dr. Simon Leung Group Vice Chairman 2
Slide 4: Agenda
Agenda Topic Speaker 2024 Highlights Dr. Simon Leung, Group Vice Chairman 2024 Financials Wood Lau, Group Interim CFO Gaming Lin Chen, Group Senior Vice President Mynd.ai Dr. Simon Leung, Group Vice Chairman Outlook Dr. Simon Leung, Group Vice Chairman Q&A 3
Slide 5: Key Highlights
Key Highlights Gaming Mynd.ai • The education sector will continue to face industry-wide challenges, with expectations of recovery in 2026 • Fully embrace "AI + Gaming" strategy, with R&D • Recently launched ActivPanel 10 and its modular personnel reduced by 14% in 2024, focusing on approach receive
Slide 6: Financial Highlights
Financial Highlights Wood Lau Group Interim CFO 5
Slide 7: Metrics Snapshot
Metrics Snapshot 65.2% 23.4% 756M RMB Gross Margin EBITDA Margin Proft Before Tax (up 3.3 ppts. YoY) (up 4.8 ppts. YoY) (up 19% YoY) 2.1B 1.1B 7.6% RMB RMB Net Cash Operating Cash Flow Dividend Yield (up 13% YoY) (>1B for six consecutive years) (2024 full year dividend/ Mar 26th market close) 6
Slide 8: Key Financial Highlights
Key Financial Highlights (RMB million) FY2024 FY2023 YoY Notes Revenue 6,047 7,101 -14.8% Gaming and Application Services 3,938 4,189 -6.0% Proactive optimization efforts in response to market demand evolution Mynd.ai 2,106 2,910 -27.6% Transformation period of IFPD market prolonged Gross Profit 3,9
Slide 9: Segmental Financial Highlights
Segmental Financial Highlights (RMB million) Gaming and Application Services Mynd.ai FY2024 FY2023 YoY FY2024 FY2023 YoY Revenue 3,938 4,189 -6.0% 2,106 2,910 -27.6% Gross profit 3,399 3,708 -8.3% 547 728 -24.9% Gross profit margin (%) 86.3% 88.5% -2.2 ppts. 26.0% 25.0% +1.0 ppts. Core segmental pro
Slide 10: Announced 2024 final dividend: 0.5 HKD/share, up 25% YoY
Announced 2024 final dividend: 0.5 HKD/share, up 25% YoY （Unit: HKD） 7.77* 1.43 1.14** 0.5 Our cumulative dividends have surpassed HKD 18 per share since our IPO, as we’ve distributed half-year dividends for eighteen years consecutively 0.8 0.8 0.8 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.35 0.07 0.22 0.25 0.2
Slide 11: Lin Chen
Lin Chen Group Senior Vice President 10
Slide 12: Fully embrace the "AI+Gaming" strategy, driving cost/efficiency gains
Fully embrace the “AI+Gaming” strategy, driving definitive cost/efficiency gains Cost Savings and Efficiency Enhancements: AI Organization: Set AI as the most • Number of R&D personnel down by 14% in 2024; • Develop the AI Content Factory in full scale; strategic initiative • Efficiency for single p
Slide 13: AI technology is set to revolutionize game development and production
AI technology is set to revolutionize game development and production Phase I - Tools Phase II – AI Agent Phase III – AI Organization and AI Content Factory Improve by 20-30% Improve by 30-50% Improve by 50%-200% Large Language Models （ChatGPT, Deepseek, etc.） AI Agent Platform AI Content Factory Kn
Slide 14: AI driven Product Innovation: elevating gameplay and user experience
“AI driven Product Innovation”: elevating gameplay and user experience Traditional Future Gaming Gaming Experience： Experience： 1. The world is fictional, and the sense of 1. The world is starting to approach reality; immersion is based on limited rules; 2. The experience is emergent; 2. The experie
Slide 15: Cultivating the EVERGREEN IP through sustainable operational excellence
Cultivating the EVERGREEN IP through sustainable operational excellence Eudemons - PC Eudemons - Mobile 1. Revenue down 6.7% YoY, as we proactively optimized the ecosystem and 1. Revenue down 12.9% YoY, mainly due to optimizations to certain co- payment strategy from the long-term operation perspect
Slide 16: High-quality content strategy for Eudemons – 2024 content updates
High-quality content strategy for Eudemons led to healthy user growth – 2024 content updates All-Round Eudemon: Major Event: Year of the Dragon Eudemons Major Event: Vigil of Winter Miss EO Contest: Aurora Plumage Ocean Chanter World Tree - Chapter of Rebirth Jan Mar Jun Jul Aug Sep Oct Nov Dec Spir
Slide 17: High-quality content strategy for Eudemons – 2025 content schedule
High-quality content strategy for Eudemons led to healthy user growth – 2025 content schedule Anniversary Expansion Closed Beta Spirit Eudemon Version Miss EO Curio Expansion Trendy Toy Carnival Horse Eudemons Cultural Heritage - Public Welfare Shandan Military Cultural Heritage - Liangzhu Museum Tr
Slide 18: Capturing the wave of content innovation: Gaming + Culture
Capturing the wave of content innovation: Gaming + Culture Collaboration with various projects of traditional Chinese cultural trends, famous intangible cultural heritages, and public welfare initiatives not only leveraged the advantages of our games in interactive visual expression but also gains v
Slide 19: User acceptance of our content and spending ratio continue to rise
The user acceptance of our content and the spending ratio continue to rise Eudemons - Mobile Year of the Dragon Eudemons comparing to Year of the Rabbit Eudemons increased by 11% in spending ratio, the Spirit Eudemon during the National Day Event saw 122% growth YoY in spending ratio Eudemons - PC *
Slide 20: Heroes Evolved: Long-term refined operations for evergreen game
Heroes Evolved: Long-term refined operations for “evergreen game” Player confidence continues to rise • Revenue increased by 18.3% YoY in 2024, ARPPU increased 12.3% YoY. Growth resumed for two consecutive years, returning to an upward trend; • In Aug 2024, a collaboration with the popular Chinese c
Slide 21: Conquer Overseas Version: cross-platform expansion drove revenue growth
Conquer Overseas Version: cross-platform expansion drove revenue growth Cross-platform ecosystem layout • Achieved interoperability between PC and Mobile, increasing new user growth and long-term retention Module based deployments • Better adapt to the diversity of regional user preferences, winning
Slide 22: Optimized pipeline based on the strategy of evergreen games
Optimized pipeline based on the strategy of evergreen games Eudemons Remake Version Eudemons PC: New Legend of Eudemons MMO PC game/ETA: 25H2 MMO PC game/ETA: TBC Mini-Program game/Launched New IP Miracland Saga (Code - Dragon) Nebula Rangers Code - NW MMO Mobile game /Publishing Partner Confirmed T
Slide 23: Mynd.ai
Mynd.ai Dr. Simon Leung Group Vice Chairman 22
Slide 24: IFPD market adjustment prolonged, efforts to enhance operational efficiency
IFPD market adjustment prolonged, multiple efforts to enhance operational efficiency Unit Freight Cost down 13% Revenue Gross Margin Unit Materials Cost down 4% Down 27.6% YoY Up 1.0 ppts YoY Operation Cost (supply chain) down 17% # of employee at year end down 15% 23
Slide 25: The market adjustment also means huge transformational opportunities
The market adjustment also means huge transformational opportunities Global edtech Market： ~300Billion USD Classroom technology devices as the key gateway to AI: • In the United States, the penetration rate of classroom technology devices in K12 classrooms has exceeded 90%, solidifying its role as e
Slide 26: Brand new solution to revolutionize the user experience
Brand new solution to revolutionize the user experience The New IFPD Model ActivPanel 10 - Freedom of Choice, Simplicity and Adaptability The ActivPanel SuiteTM Software - Enabling SaaS compatible to all OS environments 25
Slide 27: Business model evolving towards SaaS
Business model evolving towards SaaS Open OS environment for ActivPanel 10 ActivSuiteTM will consolidate our software offerings including Explain Everything Advanced The ActivPanel 10 purchase will come with two seats of ActivSuiteTM subscriptions Strive to establish ActivSuiteTM as the classroom ga
Slide 28: Active measures to optimize our balance sheet
Active measures to optimize our balance sheet Sale of Non-Strategic Assets Change of Operating ADS Offering Registration ADS Repurchases Assets/Liabilities Added 20M USD Added 32M USD Up to 50M USD 342K USD • Spinoff non-strategic assets • Sold down older inventories • Filed with SEC on Jul 17th 202
Slide 29: Outlook
Outlook Dr. Simon Leung Group Vice Chairman 28
Slide 30: Major strategic cooperation to enter the global AI service market
Major strategic cooperation to enter the global AI service market • Wenge to invest 75M RMB worth of cash and AI assets LLM ranking of AI Agent tests into Cherrypicks, our HK based subsidiary GPT-4.5-Preview 71.88 • NetDragon leverages its hunyuan-turbos 70.09 extensive experience and resources from
Slide 31: Commenced the development of interactive educational games
Commenced the development of “interactive educational games” Interactive Experience Immersive Learning • Highly interactive experience • Create highly realistic scenarios • Enhance learners’ proactiveness • Implement quality script design • Redefine traditional teaching • Immerse learners in this in
Slide 32: Outlook
Outlook Gaming Mynd.ai ◆ Adhere to the “AI+Gaming” strategy ◆ Continuously optimize the operational efficiency and capital structure ◆ Content first approach to ensure sustainable development of the flagship IP ◆ ADS buyback to stabilize market expectations ◆ Optimized pipeline to drive future growt
Slide 33: Q&A
Q&A Investor Relations Email：ir@netdragon.com 32
NetDragon Websoft Holdings — FY2024 Earnings Presentation on 6ix