Newborn Town (9911) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2026 reached USD606.9 million, up 37.0% year-over-year, with profit for the period at USD99.7 million, a 41.2% increase 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.

Financial highlights

• Profit attributable to equity shareholders was USD99.3 million, up 45.8% year-over-year; adjusted profit attributable to equity shareholders was USD101.0 million, up 18.7%.

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

• Selling and marketing expenses rose 64.0% to USD228.6 million; R&D expenses increased 33.9% to USD31.2 million.

• Cash and cash equivalents stood at USD409.4 million as of 30 June 2026.

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

Outlook and guidance

• Focus remains on global expansion, especially in Latin America, East Asia, Europe, and North America.

• Continued investment in AI to drive product innovation, operational efficiency, and new business models.

• Innovative business, including niche games and short dramas, will be further developed as a key growth pillar.

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