NetDragon Pivots to AI Ecosystem as Gaming Profits Climb

The Hong Kong-based firm posted revenue of RMB2.1 billion for the period, a 12.2% decline compared to the previous year. Despite the top-line contraction, the company achieved a 24.1% rise in operating profit, reaching RMB144 million. This improvement stems largely from aggressive cost-cutting measures and the deployment of AI, which now handles 35% to 40% of the company's internal workload across 269 distinct roles.

Gaming remains the core engine of the business, contributing RMB1.6 billion to total revenue. The segment saw a 10.3% increase in core profit sequentially, bolstered by the resilience of evergreen titles like Eudemons, which surpassed 3 million monthly active users. Meanwhile, Mynd.ai, the company's U.S.-listed education subsidiary, narrowed its core segmental loss by 35.4% year-over-year. To maintain investor confidence, the Board has approved an interim dividend of HKD0.50 per share, supported by a cash and liquid investment position of RMB1.8 billion. The company is now focusing on the rollout of moyu AI, an ecosystem designed to assist in content creation and educational design, marking a strategic move to secure long-term growth beyond its traditional entertainment and edtech foundations.