NetDragon Announces 2024 Annual Financial Results, Fully Embraces the World of Artificial Intelligence
NetDragon reported its 2024 financial results, showing mixed performance with total revenue declining 14.8% YoY to RMB6.0 billion, while profit before tax increased 19.1% YoY to RMB756 million. The company increased its final dividend by 25% to HK$0.5 per share.
The gaming segment generated RMB3.9 billion in revenue (65.1% of total), down 6.0% YoY, while Mynd.ai contributed RMB2.1 billion (34.8% of total), declining 27.6% YoY. The company maintained strong liquidity with net cash up 13.3% YoY to RMB2.1 billion and operating cash flow of RMB1.1 billion.
Notable developments include the implementation of AI tools across gaming and education sectors, establishment of an AI Content Factory, and strategic partnership with Wenge Technology involving a RMB75 million investment. The company's flagship Eudemons IP saw MAU increase by 10.1% YoY, despite revenue decline. Mynd.ai faced industry challenges but launched new products including ActivPanel 10.
NetDragon ha riportato i risultati finanziari per il 2024, mostrando una performance mista con un fatturato totale in calo del 14,8% rispetto all'anno precedente, pari a 6,0 miliardi di RMB, mentre l'utile ante imposte è aumentato del 19,1% su base annua a 756 milioni di RMB. L'azienda ha aumentato il dividendo finale del 25% a 0,5 HKD per azione.
Il segmento gaming ha generato 3,9 miliardi di RMB in fatturato (65,1% del totale), in calo del 6,0% su base annua, mentre Mynd.ai ha contribuito con 2,1 miliardi di RMB (34,8% del totale), registrando un calo del 27,6% YoY. L'azienda ha mantenuto una forte liquidità con un cash netto aumentato del 13,3% su base annua a 2,1 miliardi di RMB e un flusso di cassa operativo di 1,1 miliardi di RMB.
Sviluppi notevoli includono l'implementazione di strumenti di intelligenza artificiale nei settori del gaming e dell'istruzione, la creazione di una Fabbrica di Contenuti AI e una partnership strategica con Wenge Technology che prevede un investimento di 75 milioni di RMB. Il principale IP di NetDragon, Eudemons, ha visto un aumento del MAU del 10,1% su base annua, nonostante il calo dei ricavi. Mynd.ai ha affrontato sfide nel settore ma ha lanciato nuovi prodotti tra cui ActivPanel 10.
NetDragon informó sus resultados financieros de 2024, mostrando un rendimiento mixto con ingresos totales que disminuyeron un 14,8% interanual a 6,0 mil millones de RMB, mientras que las ganancias antes de impuestos aumentaron un 19,1% interanual a 756 millones de RMB. La compañía incrementó su dividendo final en un 25% a 0,5 HKD por acción.
El segmento de juegos generó 3,9 mil millones de RMB en ingresos (65,1% del total), una caída del 6,0% interanual, mientras que Mynd.ai contribuyó con 2,1 mil millones de RMB (34,8% del total), disminuyendo un 27,6% interanual. La empresa mantuvo una fuerte liquidez con un efectivo neto que aumentó un 13,3% interanual a 2,1 mil millones de RMB y un flujo de caja operativo de 1,1 mil millones de RMB.
Los desarrollos notables incluyen la implementación de herramientas de IA en los sectores de juegos y educación, el establecimiento de una Fábrica de Contenidos de IA y una asociación estratégica con Wenge Technology que involucra una inversión de 75 millones de RMB. La IP insignia de la compañía, Eudemons, vio un aumento del MAU del 10,1% interanual, a pesar de la disminución de ingresos. Mynd.ai enfrentó desafíos en la industria, pero lanzó nuevos productos, incluyendo ActivPanel 10.
넷드래곤은 2024년 재무 결과를 발표하며 총 수익이 전년 대비 14.8% 감소한 60억 RMB를 기록한 반면, 세전 이익은 전년 대비 19.1% 증가한 7억 5600만 RMB를 기록했다고 전했습니다. 회사는 최종 배당금을 25% 증가시켜 주당 0.5 HKD로 책정했습니다.
게임 부문은 39억 RMB의 수익을 창출했으며(총 수익의 65.1%), 전년 대비 6.0% 감소했습니다. Mynd.ai는 21억 RMB를 기여했으며(총 수익의 34.8%), 전년 대비 27.6% 감소했습니다. 회사는 순 현금이 전년 대비 13.3% 증가한 21억 RMB로 강한 유동성을 유지했으며, 운영 현금 흐름은 11억 RMB입니다.
주요 발전 사항으로는 게임 및 교육 분야에 AI 도구를 도입하고 AI 콘텐츠 공장을 설립하며, 7500만 RMB의 투자를 포함한 Wenge Technology와의 전략적 파트너십이 있습니다. 회사의 주요 IP인 Eudemons는 수익 감소에도 불구하고 MAU가 전년 대비 10.1% 증가했습니다. Mynd.ai는 산업의 도전에 직면했지만 ActivPanel 10을 포함한 새로운 제품을 출시했습니다.
NetDragon a annoncé ses résultats financiers pour 2024, montrant une performance mitigée avec un chiffre d'affaires total en baisse de 14,8 % par rapport à l'année précédente, atteignant 6,0 milliards de RMB, tandis que le bénéfice avant impôts a augmenté de 19,1 % par rapport à l'année précédente, atteignant 756 millions de RMB. La société a augmenté son dividende final de 25 % à 0,5 HKD par action.
Le segment des jeux a généré 3,9 milliards de RMB de revenus (65,1 % du total), en baisse de 6,0 % par rapport à l'année précédente, tandis que Mynd.ai a contribué avec 2,1 milliards de RMB (34,8 % du total), enregistrant une baisse de 27,6 % par rapport à l'année précédente. L'entreprise a maintenu une forte liquidité avec un cash net en hausse de 13,3 % par rapport à l'année précédente, atteignant 2,1 milliards de RMB et un flux de trésorerie opérationnel de 1,1 milliard de RMB.
Les développements notables incluent la mise en œuvre d'outils d'IA dans les secteurs du jeu et de l'éducation, la création d'une usine de contenu IA et un partenariat stratégique avec Wenge Technology impliquant un investissement de 75 millions de RMB. La propriété intellectuelle phare de l'entreprise, Eudemons, a vu son MAU augmenter de 10,1 % par rapport à l'année précédente, malgré la baisse des revenus. Mynd.ai a fait face à des défis sectoriels mais a lancé de nouveaux produits, y compris ActivPanel 10.
NetDragon hat seine finanziellen Ergebnisse für 2024 veröffentlicht, die eine gemischte Leistung zeigen, wobei der Gesamtumsatz im Vergleich zum Vorjahr um 14,8% auf 6,0 Milliarden RMB gesunken ist, während der Gewinn vor Steuern um 19,1% im Jahresvergleich auf 756 Millionen RMB gestiegen ist. Das Unternehmen hat die endgültige Dividende um 25% auf 0,5 HKD pro Aktie erhöht.
Der Gaming-Sektor erzielte einen Umsatz von 3,9 Milliarden RMB (65,1% des Gesamtumsatzes), was einem Rückgang von 6,0% im Jahresvergleich entspricht, während Mynd.ai mit 2,1 Milliarden RMB (34,8% des Gesamtumsatzes) zu einem Rückgang von 27,6% im Jahresvergleich beigetragen hat. Das Unternehmen hielt eine starke Liquidität mit einem Nettokassenbestand, der im Jahresvergleich um 13,3% auf 2,1 Milliarden RMB gestiegen ist, und einem operativen Cashflow von 1,1 Milliarden RMB.
Zu den bemerkenswerten Entwicklungen gehören die Implementierung von KI-Tools in den Bereichen Gaming und Bildung, die Gründung einer KI-Inhaltsfabrik und eine strategische Partnerschaft mit Wenge Technology, die eine Investition von 75 Millionen RMB umfasst. Das Flaggschiff-IP von NetDragon, Eudemons, verzeichnete einen Anstieg der MAU um 10,1% im Jahresvergleich, trotz eines Rückgangs der Einnahmen. Mynd.ai sah sich branchenspezifischen Herausforderungen gegenüber, brachte jedoch neue Produkte wie ActivPanel 10 auf den Markt.
- Profit before tax increased 19.1% YoY to RMB756 million
- Net cash position improved 13.3% YoY to RMB2.1 billion
- Final dividend increased 25% YoY to HK$0.5 per share
- Eudemons IP MAU grew 10.1% YoY
- Heroes Evolved PC version revenue grew 18.3% YoY
- Strategic RMB75 million investment from Wenge Technology
- Total revenue declined 14.8% YoY to RMB6.0 billion
- Gaming revenue decreased 6.0% YoY to RMB3.9 billion
- Mynd.ai revenue fell 27.6% YoY to RMB2.1 billion
- Mynd.ai recorded increased losses of RMB297 million vs RMB93 million in 2023
- Operating profit decreased 9.3% YoY to RMB745 million
- Profit attributable to owners declined 43.5% YoY to RMB311 million
Profit Before Tax Up
Final Dividend Increased by
Dr. Dejian Liu, Chairman of NetDragon, commented: "In 2024, global artificial intelligence (AI) technology continued to advance at a rapid pace, with developers achieving remarkable breakthroughs. As AI reshapes industries worldwide, we have proactively launched strategic initiatives to harness this wave of change. At the core of our vision is a dual-focus strategy—AI+Gaming and AI+Education—driving us toward "infinite growth"."
"In the gaming sector, we have seamlessly integrated cutting-edge AI tools to enhance production efficiency and elevate content quality, while also pioneering the development of "AI-native" games. Our flagship IP Eudemons has undergone a series of optimizations, further strengthening ecosystem balance and significantly enhancing the player experience, laying a solid foundation for its sustainable growth. In the education sector, we successfully won the tender to upgrade the "National Smart Education Platform Project" in July, reinforcing our commitment to supporting
"This year, we leveraged advanced AI tools to establish an automated production line ("AI Content Factory") and commenced the development of interactive educational games. By prioritizing interactive experiences and learner-driven engagement, we aim to enable immersive learning, redefine traditional teaching methodologies, and ultimately build an educational metaverse platform."
"Our total revenue for 2024 decreased by
"Our net cash increased by
Fiscal Year 2024 Financial Highlights
- Revenue was
RMB6.0 billion , representing a14.8% decrease YoY. - Revenue from gaming and application services was
RMB3.9 billion , representing65.1% of the Group's total revenue and a6.0% decrease YoY. - Revenue from Mynd.ai business was
RMB2.1 billion , representing34.8% of the Group's total revenue and a27.6% decrease YoY. - Gross profit was
RMB3.9 billion , representing a10.4% decrease YoY. - Core segmental profit[2] from the gaming and application services was
RMB925 million , representing a33.9% decrease YoY. - Core segmental loss[2] from Mynd.ai business was
RMB297 million , compared to a loss ofRMB93 million in 2023. - EBITDA was
RMB1.4 billion , representing a7.1% increase YoY. - Operating profit was
RMB745 million , representing a9.3% decrease YoY. - Profit before tax was
RMB756 million , representing a19.1% increase YoY. - Profit attributable to owners of the Company was
RMB311 million including an one-time non-cash deferred tax expense in Mynd.ai of RMB335 million, representing a43.5% decrease YoY fromRMB550 million in 2023. - Operating cashflow was
RMB1.1 billion , representing a5.7% decrease YoY. - The Company declared a final dividend of
HKD0.50 per ordinary share (2023:HKD0.40 per ordinary share), subject to approval at the coming annual general meeting.
Segmental Financial Highlights
FY2024 | FY2023 | Variance | ||||
(RMB million) | Gaming and | Mynd.ai business | Gaming and | Mynd.ai business | Gaming and | Mynd.ai business |
Revenue | 3,938 | 2,106 | 4,189 | 2,910 | -6.0 % | -27.6 % |
Gross Profit | 3,399 | 547 | 3,708 | 728 | -8.3 % | -24.9 % |
Gross Margin | 86.3 % | 26.0 % | 88.5 % | 25.0 % | -2.2 ppts | +1.0 ppts |
Core Segmental | 925 | (297) | 1,399 | (93) | -33.9 % | +219.4 % |
Segmental Operating | ||||||
- Research and | (1,227) | (202) | (1,186)
| (196)
| +3.5 % | +3.1 %
|
- Selling and | (488) | (266) | (463) | (327) | +5.4 % | -18.7 % |
- Administrative | (705) | (362) | (649) | (267) | +8.6 % | +35.6 % |
Gaming and Application Services
In 2024, revenue from our gaming and application services amounted to RMB3.9 billion, representing a decrease of
Throughout the year, we have continued to refine our "AI + Gaming" strategy, leveraging cutting-edge large language models such as GPT-4, Claude, Qwen, and Coze, while also developing proprietary capabilities based on DeepSeek architecture. We have also deepened the practical deployment of AI services like Midjourney and Hunyuan, integrating them into our production workflows. These efforts have culminated in the creation of an AI Agent Platform and the establishment of a comprehensive AI Content Factory tailored to our in-house development needs. By integrating AI across key areas—including art, programming, game design, testing, and customer service—we have enhanced operational efficiency, with certain game development processes achieving significant productivity gains. As a result, our gaming teams have been able to sharpen their strategic focus and optimize organizational structures, with the potential to effectively reduce our game development costs in 2025. Besides, we have launched our proprietary AI-powered cheat detection system and introduced AI companions, elevating the player experience to new heights. Beyond this, we are pushing the boundaries of AI-native gameplay and content innovation.
In 2024, our flagship IP Eudemons experienced some decline as a result of our proactive optimization measures. However, we remain committed to our high-quality content strategy, which has driven continued growth in user scale and engagement. The overall MAU for Eudemons IP increased by
Our Heroes Evolved IP made significant strides in its long-term refined operations and eSports ecosystem. The PC version has achieved revenue growth for two consecutive years, with an
For our Conquer IP, revenue performance in its core market,
In terms of pipeline, the highly-anticipated sequels to our flagship IP are progressing well. Eudemons Remake Version is set to launch in 2025, while Legend of Eudemons debuted on WeChat Mini Program in early 2025. Additionally, our new MMORPG mobile game, Miracland Saga (Code-Dragon), based on an entirely new IP, is scheduled for release in overseas markets through a publishing partner in 2025.
NetDragon recently signed a term sheet with Beijing Wenge Technology Co., Ltd. ("Wenge") to exclusively collaborate outside mainland
Our gaming and application services business remains the cornerstone of our AI+Gaming and AI+Education strategy. Looking forward, we will continue to embrace our motto of "infinite growth", further integrating advanced AI tools across all operations. We are committed to building a fully operational AI Content Factory. Meanwhile, we will actively explore next-generation frontiers such as "AI-native" games and "interactive educational games", capturing additional revenue streams brought by AI while continuing to enhance our efficiency in the new AI-era.
Mynd.ai
2024 marked our overseas education subsidiary Mynd.ai's first full year as a public company. Completing the sale of our non-strategic early childhood development business unit in October 2024, paying down debt, optimizing our cost structure, and initiating a share repurchase program were meaningful steps towards strengthening our company. Despite a number of industry-wide challenges in the education sector stemming from inflation, threat of tariffs and uncertainty around Federal funding for education, we were able to capitalize on our brand loyalty, significant install base of over one million classrooms and strong distributor and partner network to maintain our strong market presence.
The key financial highlights for Mynd.ai in 2024 are as follows:
- Revenue of
RMB2.1 billion for the full year, compared toRMB2.9 billion in the prior year with the decrease primarily driven by the headwinds in the global education market due to budget uncertainties in the US because of the new government, and economic conditions inEurope because of wars inUkraine ,Russia and theMiddle East . - Gross Margin improved 1.0 percentage points versus 2023 to
26.0% , largely due to optimization of cost of materials, warranty, and freight costs - Adjusted EBITDA loss totaled of
RMB172 million , compared toRMB78 million - Cash balance at year-end of
RMB541 million , compared toRMB650 million in 2023 - Reduced outstanding indebtedness at year-end by
RMB148 million - Repurchased 151,923 American Depositary Shares, representing 1,519,230 ordinary shares, pursuant to our share repurchase program
Our financial performance in 2024 reflects our commitment to improving operational efficiency to help combat significant industry headwinds impacting our interactive flat panel display business. Year over year, we made improvements in our gross margin. Although we expect economic headwinds to continue during 2025, we are actively responding by continuing to optimize our operating cost structure, enhancing our go-to-market strategy and expanding our portfolio of product offerings. We are excited about the warm reception that our recently launched ActivPanel 10 and its modular infrastructure have received, and believe that the freedom of choice, simplicity, and adaptability that it provides to our customers will better position Mynd.ai to more effectively compete in the market.
Management Conference Call and Webcast
NetDragon's management team will hold a conference call and webcast at 10:00 am
Details of the live conference call and webcast are as follows:
Webcast | https://webcast.roadshowchina.cn/ejVKbERKU09udU9aZHNtMys2dHRldz09 |
International | +852 2112 1888 |
Mainland China HK ( | 4008 428 338 +852 2112 1888 |
US | +1 866 226 1406 |
0800 032 2849 | |
Passcode | 3201527# |
The live and archived webcast of the conference call will be available on the Investor Relations section of NetDragon's website at http://ir.nd.com.cn/en/category/webcast. Participants of the live webcast should visit the aforementioned website 10 minutes prior to the call, then click on the icon for "2024 Annual Results Conference Call and Webcast" and follow the registration instructions.
About NetDragon Websoft Holdings Limited
NetDragon Websoft Holdings Limited (HKSE: 0777) is a global leader in building internet communities, with a long track record of developing and scaling multiple internet and mobile platforms that impact hundreds of millions of users, including previous establishments of
Established in 1999, NetDragon is one of the most reputable and well-known online game developers in
For investor enquiries, please contact:
NetDragon Websoft Holdings Limited
Ms. Maggie Zhou
Senior Director of Investor Relations
Email:maggiezhou@nd.com.hk / ir@netdragon.com
Website:ir.netdragon.com
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | |||
FOR THE YEAR ENDED 31 DECEMBER 2024 | |||
2024 | 2023 | ||
RMB million | RMB million | ||
Revenue | 6,047 | 7,101 | |
Cost of revenue | (2,105) | (2,703) | |
Gross profit | 3,942 | 4,398 | |
Other income and gains | 398 | 264 | |
Impairment loss under expected credit loss model, net of reversal | 2 | (3) | |
Selling and marketing expenses | (758) | (807) | |
Administrative expenses | (1,164) | (1,199) | |
Research and development costs | (1,429) | (1,382) | |
Other expenses and losses | (249) | (446) | |
Share of results of associates and joint ventures | 3 | (4) | |
Operating profit | 745 | 821 | |
Interest income on pledged bank deposits | 13 | - | |
Exchange gain (loss) on pledged bank deposits, financial assets at fair value through profit or loss, convertible and exchangeable bonds and derivative financial instruments | 5 | (21) | |
Fair value change on financial assets at fair value | 67 | 75 | |
Fair value change on derivative financial instruments | 87 | 28 | |
Finance costs | (161) | (268) | |
Profit before taxation | 756 | 635 | |
Taxation | (642) | (188) | |
Profit for the year | 114 | 447 | |
Other comprehensive (expense) income for the year, net of income tax: | |||
Item that may be reclassified subsequently to profit or loss: | |||
Exchange differences arising on translation of foreign | 26 | 43 | |
Reclassification of cumulative translation reserve upon disposal of a foreign operation | (6) | - | |
Item that will not be reclassified to profit or loss: | |||
Fair value change on equity instruments at fair value through | (26) | (22) | |
Other comprehensive (expense) income for the year | (6) | 21 | |
Total comprehensive income for the year | 108 | 468 | |
Profit (loss) for the year attributable to: | |||
- Owners of the Company | 311 | 550 | |
- Non-controlling interests | (197) | (103) | |
114 | 447 | ||
Total comprehensive income (expense) for the year | |||
- Owners of the Company | 301 | 570 | |
- Non-controlling interests | (193) | (102) | |
108 | 468 | ||
RMB cents | RMB cents | ||
Earnings per share | |||
- Basic | 58.60 | 103.00 | |
- Diluted | 58.60 | 103.00 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||
AT 31 DECEMBER 2024 | ||||
2024 | 2023 | |||
RMB million | RMB million | |||
(Restated) | ||||
Non-current assets | ||||
Property, plant and equipment | 2,315 | 2,422 | ||
Right-of-use assets | 394 | 380 | ||
Investment properties | 50 | 60 | ||
Goodwill | 312 | 325 | ||
Intangible assets | 784 | 868 | ||
Interests in associates and joint ventures | 50 | 43 | ||
Equity instruments at fair value through other comprehensive |
8 |
45 | ||
Financial assets at fair value through profit or loss | 516 | 453 | ||
Loan receivables | 29 | 12 | ||
Other receivables, prepayments and deposits | 288 | 351 | ||
Deferred tax assets | - | 433 | ||
4,746 | 5,392 | |||
Current assets | ||||
Properties under development | 70 | 70 | ||
Properties for sale | 272 | 280 | ||
Inventories | 238 | 405 | ||
Financial assets at fair value through profit or loss | 191 | 38 | ||
Loan receivables | 125 | 79 | ||
Trade receivables | 454 | 702 | ||
Bills receivables | 1 | - | ||
Other receivables, prepayments and deposits | 469 | 492 | ||
Tax recoverable | 39 | 39 | ||
Pledged bank deposits | 1,114 | 315 | ||
Bank deposits with original maturity over three months | 215 | 329 | ||
Cash and cash equivalents | 2,498 | 2,241 | ||
5,686 | 4,990 | |||
Current liabilities | ||||
Trade and other payables | 1,284 | 1,518 | ||
Contract liabilities | 454 | 491 | ||
Lease liabilities | 58 | 76 | ||
Provisions | 113 | 127 | ||
Derivative financial instruments | 21 | 107 | ||
Bank borrowings | 1,729 | 1,033 | ||
Convertible and exchangeable bonds | 295 | 256 | ||
Convertible note | 396 | 357 | ||
Tax payable | 64 | 80 | ||
4,414 | 4,045 | |||
Net current assets | 1,272 | 945 | ||
Total assets less current liabilities | 6,018 | 6,337 | ||
Non-current liabilities | ||||
Other payables | 5 | 37 | ||
Lease liabilities | 71 | 45 | ||
Bank borrowings | - | 1 | ||
Deferred tax liabilities | 76 | 80 | ||
152 | 163 | |||
Net assets | 5,866 | 6,174 | ||
Capital and reserves | ||||
Share capital | 39 | 39 | ||
Share premium and reserves | 5,788 | 5,856 | ||
Equity attributable to owners of the Company | 5,827 | 5,895 | ||
Non-controlling interests | 39 | 279 | ||
5,866 | 6,174 | |||
[1] Excluding share-based payments expense and redundancy expense |
[2] Core segmental profit (loss) figures are derived from the Company's reported segmental profit (loss) figures (presented in accordance with HKFRS 8), but exclude non-core/operating, non-recurring or unallocated items including government grants, intercompany finance costs, impairment loss (net of reversal), write off of intangible assets, reversal of impairment loss of intangible assets, write-down of inventories, fair value change and exchange gain on financial assets at fair value through profit or loss, fair value change and exchange loss on derivative financial instruments, interest expense, exchange loss and redemption loss on convertible and exchangeable bonds, gain on disposal of subsidiaries, fair value loss on investment properties, waiver of other payables, underprovision of tariff expenses in previous years and redundancy payments. |
[3] Segmental operating expenses exclude unallocated expenses/income such as directors' fee and salaries, amortisation and exchange difference that have been grouped into SG&A categories on the Company's reported consolidated financial statements, but cannot be allocated to specific business segments for purpose of calculating the segmental profit (loss) figures in accordance with HKFRS 8. |
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SOURCE NetDragon Websoft Holdings Limited