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NetDragon Websoft (777) investor relations material
NetDragon Websoft H1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Gaming segment achieved half-over-half growth, driven by operational resilience of flagship IPs, AI-powered innovation, and stabilization despite year-over-year decline.
AI Workforce OS and moyu AI ecosystem were launched, supporting significant cost reductions and operational efficiency across gaming and education.
Mynd.ai faced headwinds in the U.S. and Europe but narrowed core segmental loss by 35.4% YoY and grew SaaS revenue by 30% YoY.
Interim dividend of HKD 0.5 per share declared, with net cash and liquid investments at RMB 3,478 million as of June 2026.
Financial highlights
Total revenue for H1 2026 was RMB 2.1 billion, down 12.2% YoY; gaming and application services contributed RMB 1.6 billion (down 8.8% YoY, up 3.1% HoH); Mynd.ai revenue was RMB 505 million (down 21.2% YoY).
Gross profit was RMB 1.5 billion, down 11.7% YoY; gross margin for gaming and application services was 83.3%.
Profit attributable to owners was RMB 36 million, up 20% YoY; adjusted profit (excluding impairment and one-off items) was RMB 254 million, down 8% YoY.
Operating profit rose 24.1% YoY to RMB 144 million.
Interim dividend per share remained stable at HKD 0.5.
Outlook and guidance
Cautiously optimistic for H2 2026, expecting continued growth in gaming, further AI integration, and cost optimization in education.
AI-native games and SaaS expansion anticipated; plans to enhance product offerings and expand language editions for key gaming IPs.
Market recovery signs in North America; slow recovery expected in the Middle East and Europe, with 2027 seen as a stronger recovery year.
- Profitability rebounded in H2 2025 as AI and cost controls offset a 26% revenue decline.777
H2 2025 - Revenue down 27.9% YoY; cost cuts, AI focus, and higher dividend support future growth.777
H1 2025 - Revenue fell 10.3% YoY, but EBITDA rose 12.9% and new games and SaaS drive future growth.777
H1 2024 - Profit before tax up 19.1% YoY despite revenue drop, with strong AI-driven cost savings.777
H2 2024
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