Newborn Town (9911) investor relations material

Executive summary

• Revenue rose 35.3% year-over-year to RMB6,889.0 million, driven by user growth and commercialization efficiency.

• Profit for the year increased 22.3% to RMB963.7 million; adjusted EBITDA up 26.1% to RMB1,214.8 million.

• Social networking business revenue grew 32.9% to RMB6,142.3 million; innovative business revenue surged 59.3% to RMB746.7 million.

• AI integration enhanced operational efficiency and product innovation across all business lines.

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

Financial highlights

• Gross profit increased 47.5% year-over-year to RMB3,847.3 million; gross margin improved to 55.8%.

• Operating profit rose 21.4% to RMB884.8 million; net finance income reached RMB68.7 million.

• Basic EPS was RMB0.74, up from RMB0.42; diluted EPS was RMB0.70.

• Cash and cash equivalents grew to RMB2,558.0 million; operating cash flow increased to RMB1,375.6 million.

• Total assets reached RMB4,394.2 million; liabilities-to-assets ratio decreased to 41.4%.

Outlook and guidance

• Plans to advance a diversified product matrix and accelerate global expansion, focusing on flagship products in key and emerging markets.

• Continued investment in AI technology and talent to drive product innovation and operational efficiency.

• Targeting rapid growth in innovative businesses, including AI applications, niche games, and social e-commerce.