Newborn Town (9911) investor relations material

Executive summary

• Revenue for H1 2026 reached USD606.9 million, up 37.0% year-over-year, with profit for the period at USD99.7 million, up 41.2% year-over-year.

• Social networking business contributed USD538.7 million in revenue (36.5% growth), while innovative business delivered USD68.2 million (41.2% growth).

• Gross profit rose 42.1% to USD351.0 million, with gross margin improving to 57.8% from 55.8% year-over-year.

• Adjusted EBITDA was USD111.1 million, up 23.6% year-over-year.

• AI integration and global expansion drove operational efficiency and market penetration, especially in MENA, Southeast Asia, Latin America, East Asia, Europe, and North America.

Financial highlights

• Revenue: USD606.9 million (+37.0% YoY); Gross profit: USD351.0 million (+42.1% YoY).

• Profit attributable to equity shareholders: USD99.3 million (+45.8% YoY); Adjusted profit: USD101.0 million (+18.7% YoY).

• Operating profit increased 33.4% to USD89.0 million.

• Cash and cash equivalents at period end: USD409.4 million.

• Total assets increased to USD729.5 million, liabilities-to-assets ratio improved to 34.4%.

Outlook and guidance

• Focus remains on global social entertainment sector, with continued investment in AI and product innovation.

• Plans to accelerate expansion in high-potential markets (Latin America, East Asia, Europe, North America) and deepen presence in MENA and Southeast Asia.

• Innovative business (niche games, short dramas, social e-commerce, AI applications) to be further developed as a key growth pillar.

• No interim dividend declared to support business expansion and R&D.