Newborn Town Issues Positive Profit Alert for First-Half 2025: Adjusted Operating Profit Surpasses RMB 600 Million, while the Profit Attributable to the Company's Equity Shareholders Increases over 108% YoY

HONG KONG, Aug. 6, 2025 /PRNewswire/ -- On August 6th, Newborn Town (9911.HK) released a positive profit alert for the first half of 2025. The Group achieved rapid revenue expansion alongside a substantial increase in profit, driven by the dual-engine growth of its social networking and innovative businesses.

For the six months ended June 30th, 2025, the Group's total revenue is estimated to reach RMB 3,135 million and RMB 3,215 million, representing a year-on-year increase of approximately 38% to 41.5%. Profit attributable to equity shareholders of the company is expected to range from RMB 470 million to RMB 510 million, reflecting a year-on-year increase of approximately 108.9% to 126.7%. Adjusted EBITDA is projected to range from RMB 630 million to RMB 670 million, showing a year-on-year increase of 40.6% to 49.6%.

AI Applications Intensify: Products with "Tens of Millions" Monthly Recharge Set to Expand in Three Years

In the first half of 2025, the social networking business delivered robust profit growth. According to the announcement, the growth was driven by the continued expansion of diversified social products supported by AI technology, as well as the complete consolidation of NBT Social Networking Inc.'s financials following the acquisition of its non-controlling interests in December 2024.

Newborn Town's global product portfolio continued to scale across markets. While flagship products like MICO and YoHo remained as steady contributors of profit and cash flow, the revenue contribution from newer products such as SUGO and TopTop continued to rise in the first half of 2025.

During this period, Newborn Town also made significant strides in key markets like MENA. Through refined operational strategies, Newborn Town has enhanced user experience and monetization efficiency, further unlocking the market's vast potential. Meanwhile, the company has been deepening its "product replication + country replication" strategy to actively explore new markets. Currently, some products have already successfully entered these new regions.

AI continues to empower the Group's products with deeper applications across operational scenarios. The self-developed multimodal algorithm Boomiix continues to be upgraded, enhancing social matching precision and intelligent operations, particularly effective in user acquisition across new markets and long-tail user engagement. Each key part of the R&D function of the company also applied AI technology to improve efficiency. For example, the self-development internal AIGC tools adopted by the design team have significantly enhanced efficiency in areas like virtual gift remix, animation effects addition and graphic design.   

With deeper market understanding, stronger localized operations, and broader AI integration, the Group is accelerating the pace of blockbuster product incubation. Over the next three years, two new products under development are expected to reach monthly recharge exceeding USD 10 million, further expanding the scale of the social networking business.

The Group's diverse-audience social networking business sustained solid development in global markets. Through iterating social features and deepening content ecosystems, user experience and engagement depth under the business segment further improved. In addition, brand campaigns and social responsibility initiatives have elevated overall brand awareness and influence. At the beginning of 2025, HeeSay GALA events were held in Thailand and the Philippines, encouraging users to co-create vibrant, diverse community ecosystems with HeeSay.

Innovative Business Accelerated Growth, with Global Expansion Entering a New Phase

In the first half of 2025, as the moat around the social networking business continues to strengthen, Newborn Town's second growth curve - powered by quality games and social e-commerce - has become increasingly mature. Revenue from the innovative business is expected to reach RMB 335 million to RMB 355 million, up approximately 65.0% to 74.9% year-on-year.

According to the announcement, the growth was driven by solid traffic monetization and social e-commerce performance, as well as contributions from quality games, which began monetizing in Q4 2024. 

Social e-commerce saw a notable performance boost, driven by upgraded user services, diversified business ecosystem, and expanded acquisition channels. In the first half of 2025, Heer Health achieved steady growth, further solidifying its leadership in the sexual health service and HIV prevention and control segments.

Following its initial revenue contribution last year, Newborn Town's quality games segment officially entered a profit-generating phase in 2025. Flagship product, Alice's Dream: Merge Games moved into long-term operation, delivering steady returns. Leveraging its experience in the merge-game category, the Group has significantly shortened development cycles. Key metrics such as user retention and ARPU have remained strong, while new game development is progressing smoothly.

In June 2025, Newborn Town officially established its global headquarters in Hong Kong, marking another milestone in the company's worldwide expansion and signaling a new chapter in its globalization strategy.

Moving forward, the company will leverage Hong Kong as a strategic global hub, working closely with its R&D and operations centers worldwide. Through technological innovation and localized operations, Newborn Town will further expand its global business and create positive emotional value to users worldwide.

SOURCE Newborn Town