Netdragon Websoft Holdings Limited · HKEX:777
Netdragon Websoft — Q2 2025 Earnings Presentation
34 slides from Netdragon Websoft's earnings presentation, Aug 28, 2025
Slide 1: NetDragon Websoft Holdings Limited 2025 Interim Earnings Presentation
NetDragon Websoft Holdings Limited Stock Code: 777 HK 2025 Interim Earnings Presentation August 29, 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 1H25 Highlights Dr. Simon Leung, Group Vice Chairman 1H25 Financials Wood Lau, Group Interim CFO Gaming Lin Chen, Group Senior Vice President Mynd.ai Dr. Simon Leung, Group Vice Chairman Fully Embrace AI Dr. Simon Leung, Group Vice Chairman Outlook Dr. Simon Leung, Group Vice Ch
Slide 5: Key Highlights
Key Highlights Gaming Mynd.ai • Continual cost optimization to cope with the • Deploy the AI content factory comprehensively, as challenging market conditions caused by market R&D expenses of the gaming and application uncertainties in US and Europe services segment decreased by 26.7% YoY • Brining
Slide 6: Financial Highlights
Financial Highlights Wood Lau Group Interim CFO 5
Slide 7: Key Financial Highlights
Key Financial Highlights (RMB million) 1H2025 1H2024 YoY Notes Revenue 2,381 3,301 -27.9% Gaming and Application Services 1,738 2,121 -18.1% Optimization of Eudemons since Oct 2024 but the performance has been stabilized HoH Mynd.ai 641 1,180 -45.7% Extended demand adjustment & sold Singapore early
Slide 8: Segmental Financial Highlights
Segmental Financial Highlights (RMB million) Gaming and Application Services Mynd.ai 1H2025 1H2024 YoY 1H2025 1H2024 YoY Revenue 1,738 2,121 -18.1% 641 1,180 -45.7% Gross profit 1,498 1,849 -19.0% 163 351 -53.6% Gross profit margin (%) 86.2% 87.2% -1.0 ppts 25.4% 29.7% -4.3 ppts Core segmental profi
Slide 9: Lin Chen
Lin Chen Group Senior Vice President 8
Slide 10: Overall efficiency further enhanced driven by AI Content Factory
Overall efficiency further enhanced driven by the comprehensive deployment of AI Content Factory AI "AI + Gaming" Strategy Gains Cost & Efficiency: • AI boosted overall efficiency by 15%, with the initial AI Content Factory in operation; • R&D expenses of Gaming and Application Service segment decre
Slide 11: AI technology to transform game development & production
AI technology to transform game development & production Knowledge Base Construction Game Storyline, Characters, Maps, NPCs, Resource Narrative Quest Designer Scripter QA Tester Designer Configurations Review/Adjustment Review/Adjustment Review/Adjustment Review/Adjustment AI Quest Designer AI Quest
Slide 12: Fully leveraging AI to drive innovation in gaming experiences
Fully leveraging AI to drive innovation in gaming experiences Created the 2025 Spirit Eudemon Inspired by the Classic Character in Chinese Culture "Diaochan" Diaochan AI Chat Welcome back, my lord. Today, allow me to play zither and brew some tea for you... But before that, AI Chat Interaction to Te
Slide 13: Building the evergreen IP with healthy operation
Building the evergreen IP with healthy operation Pocket Version Revenue IP Revenue down 3.8% HoH MAU up 11.3% YoY up 6.7% HoH • Ongoing refinements in gameplay and • Significant increase in user engagement, • 10th-anniversary nostalgic marketing and content since October 2024 with MAU also recoverin
Slide 14: High-quality content strategy to drive user growth for Eudemons IP
Continue to execute the high-quality content strategy to drive user growth for Eudemons IP Beast Era & Future for Elephants Jiang Xiaoyu IP Snake Eudemons Anniversary Events & CS Family War Miss EO Collaboration Jan Feb Mar May Jun Jul Aug Sep Nov Dec 8月 Skin Set of the Year: Spirit Eudemon: Double
Slide 15: "Game+" achievements in the first half of 2025
"Game+" achievements in Through the “Game+” model, NetDragon actively supports China’s 14 th Five-Year Plan for cultural development, driving innovation in cultural tourism and the first half of 2025 supporting the inheritance of traditional culture, to expand our cultural dimension. Game + Cultural
Slide 16: Enhancing content quality and extending multi-dimensional IP value
Enhancing content quality and extending the multi-dimensional IP value Game + Intangible Cultural Heritage Forged a deep partnership with the World Heritage Site Yongding Tulou. In the second half of the year, we will bring Fuzhou's historic Three Lanes and Seven Alleys into the digital world, recre
Slide 17: The "Content + Esports" engine delivered rapid revenue growth
The “Content + Esports" engine successfully delivered rapid revenue growth 10th Anniversary: Multi-Channel Promotion Boosts User Engagement Targeting new and returning players with precision, all key engagement metrics surpassed the peak levels of the past three years on the anniversary day. User en
Slide 18: Sharpen our R&D focus in the new AI era
Sharpen our R&D focus in the new AI era Major New Game Global Expansion Code-MY Eudemons Online Overseas (in Portuguese, Spanish, Arabic) Code-Alpha Existing IP Activation AI-Native UNDEROATHX, Zero Online, Legend of Eudemons Mid-to-Long Term Roadmap 17
Slide 19: Major new game Code-MY
Major new game Code-MY • New engine and technology, delivering upgraded art quality and gameplay experience; • Original senior design team, core gameplay, and classic nostalgia; • Proven business model with optimized solutions for key pain points; • Preliminary user data and feedback have verified o
Slide 20: Content production and global expansion empowered by AI
Content production and global expansion empowered by AI Eudemons Online & AI Translation Eudemons Online & Conquer Online AI Art Generation Conquer Online (Simplified Chinese) AI Adaptation (Multi-language) Heroes Evolved AI Art Generation Heroes Evolved AI Translation Heroes Evolved (PC) AI Adaptat
Slide 21: Pioneering AI-native games
Pioneering AI-native games Multi-NPCs Form Unique NPC Communities Interact with Players Smart NPCs Communities and Content to Generate Emergent Content AI-Generated Eudemons and Bosses AI AI-Generated + Content AI-Generated Quests and Gameplay Gaming AI-Generated Featured Servers AI + Gaming AI-Gene
Slide 22: Mynd.ai
Mynd.ai Dr. Simon Leung Group Vice Chairman 21
Slide 23: Proactive measures to counter the industry-wide adjustment period
Proactive measures to counter the industry-wide adjustment period Opex Savings Debt Reduction Cash Reserve Share of AP10 Gross Margin shipment in 1H25 in 2Q25 79M RMB 53M RMB 210M RMB 40% 31% 22
Slide 24: Continued bookings growth solidify our SaaS ecosystem
Continued bookings growth solidify our SaaS ecosystem ⚫ Total SaaS licenses grew 8% HoH in 1H25 ⚫ Solid expansion of Explain Everything in legacy channels ⚫ Share of SaaS bookings from ActivSuite picked up as next- gen hardware started to ship 23
Slide 25: Integrate AI voice assistant technology
Integrate AI voice assistant technology ⚫ Entry into an agreement to acquire an award-winning AI voice assistant technology, expected to complete in Q3 ⚫ Added the pivotal piece to our AI empowerment solution offerings ⚫ Based on advanced AI models, create a convenient voice system for teacher- stud
Slide 26: Extensive industry-wide accolades
Extensive industry-wide accolades 25
Slide 27: Fully Embrace AI
Fully Embrace AI Dr. Simon Leung Group Vice Chairman 26
Slide 28: Fully embrace AI - Cherrypicks
Fully embrace AI - Cherrypicks • Zhongke WengAI (“Wenge”) became the strategic shareholder of Cherrypicks and has appointed a director (Dr. Wang Lei, the founder of Wenge) to its board • Cherrypicks and Wenge will engage in exclusive collaboration outside mainland China to jointly develop and promot
Slide 29: Fully embrace AI – National Projects
Fully embrace AI – National Projects • In Thailand, our AI-driven vocational education project • Supported by the World Bank, we signed a cooperation collaborated with the Ministry of Higher Education, Science, agreement with the Ministry of Secondary Education of Research, and Innovation (MHESI) wa
Slide 30: Fully embrace AI – Education Metaverse
Fully embrace AI – Education Metaverse ⚫ Fully leverage our AI Content Factory to build AI computing power and high-quality educational contents to serve as the infrastructure of Global Education Metaverse ⚫ Collaborates with multiple long-term institutional partners to build the Dr. Liu Dejian, Fou
Slide 31: Outlook
Outlook Dr. Simon Leung Group Vice Chairman 30
Slide 32: Share Repurchase and Dividend Program of no less than HKD600 Million
Announcing Share Repurchase and Dividend Program of no less than HKD600 Million We remain confident in our short-term and long-term sustainable growth and value-creation potential Enhance Solid results from multiple strategic investments Capital and robust cash reserves Return + Invest in Distribute
Slide 33: Outlook
Outlook Gaming Mynd.ai ◆ Slight recovery of market, in addition to continual ◆ Continue to promote the in-depth cost optimization, business will approach EBITDA development of our AI + gaming strategy breakeven in Q4 with profitability in 2026 ◆ Focus on high-quality content and cultural ◆ AI empowe
Slide 34: Q&A – Investor Relations
Q&A Investor Relations Email：ir@netdragon.com 33
NetDragon Websoft Holdings — Q2 2025 Earnings Presentation on 6ix