NetDragon Websoft Holdings Ltd
HKEX:777
NetDragon Websoft Holdings Ltd
NetDragon Websoft Holdings Ltd. engages in building internet communities. The company is headquartered in Fuzhou, Fujian. The company went IPO on 2008-06-24. The firm has developed online and mobile games including Conquer, Demon, Blade of the Soul, and The Final Oath. The company also developed game development engines such as C3 and S3. The company also provides online and mobile Internet education. It’s business covers preschool education, basic education, higher education, vocational education, corporate training, non-academic and lifelong education. The Company’s educational products include 101 Education PPT, educational DIY VR editing software VR Creator+, Edmodo, JumpStart, Promethean, and 101 e-textbook. Games products include Magic domain, Conquer, Machine warfare, Tian Yuan, and Happy. Other products include Good Chinese Party Member, Cloud office, Buddhism Communication, Women's Unicom, star app, and more.
NetDragon Websoft Holdings Ltd. engages in building internet communities. The company is headquartered in Fuzhou, Fujian. The company went IPO on 2008-06-24. The firm has developed online and mobile games including Conquer, Demon, Blade of the Soul, and The Final Oath. The company also developed game development engines such as C3 and S3. The company also provides online and mobile Internet education. It’s business covers preschool education, basic education, higher education, vocational education, corporate training, non-academic and lifelong education. The Company’s educational products include 101 Education PPT, educational DIY VR editing software VR Creator+, Edmodo, JumpStart, Promethean, and 101 e-textbook. Games products include Magic domain, Conquer, Machine warfare, Tian Yuan, and Happy. Other products include Good Chinese Party Member, Cloud office, Buddhism Communication, Women's Unicom, star app, and more.
Revenue Decline: The company faced revenue challenges in the first half of 2024, with a notable decrease in Mynd.ai's revenue and slight negative growth in gaming.
Margins Improve: Gross margin rose from 62% to 66.6%, helped by cost efficiencies and lower component and freight costs.
Cost Savings: Sales and marketing expenses were cut by 20%, and admin expenses by 3.3%; excluding the Singapore acquisition, admin costs fell 11%.
Profit Impacted by Tax Provision: Net profit attributable to owners dropped 20% to RMB 400 million, mainly due to a one-time USD 40 million deferred tax provision; excluding this, net profit increased 24%.
EBITDA Growth: EBITDA grew by 12.9% and profit before taxation rose by 21%, reflecting improved cost management.
Strategic Shift: The company is moving further from hardware to a service-driven model, emphasizing SaaS and Classroom-as-a-Service.
Optimistic Outlook: Management remains cautiously optimistic, citing opportunities in AI, global markets, and upcoming product launches.
