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Korea Herald
5 days ago
- Business
- Korea Herald
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 ( 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. 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.
Korea Herald
25-07-2025
- Business
- Korea Herald
Newborn Town Reports First-Half 2025 Operating Data: Revenue Projected to Exceed RMB 3 Billion, Marking Over 38% Year-on-Year Growth
HONG KONG, July 25, 2025 /PRNewswire/ -- Newborn Town, a leading global social entertainment company, released its unaudited operating data for the first half of 2025. For the six months ending 30 June 2025, the company's total revenue is estimated to reach RMB 3,135 million to RMB 3,215 million, representing a year-on-year increase of approximately 38.0% to 41.5%. The social networking business segment continued to demonstrate robust financial performance, with revenue expected to reach approximately RMB 2,800 million to RMB 2,860 million, reflecting a year-on-year increase of approximately 35.4% to 38.3%. The innovative business segment is projected to experience explosive growth, with revenue expected to range between RMB 335 million and RMB 355 million, representing an increase of approximately 65.0% to 74.9% year-over-year. In the first half of 2025, Newborn Town's social networking business continued to exhibit robust, high-quality growth, with its "bush-like" product portfolio thriving in global markets. Second-mover products, such as SUGO and TopTop, saw impressive growth, while flagship products like MICO and YoHo remained consistent contributors to revenue. According to the company's announcement, revenue from the social networking business segment experienced a notable year-over-year increase, driven by AI-powered expansion across its diversified portfolio of social products. In recent years, Newborn Town has increasingly integrated AI technology into its core operations, improving user acquisition, localized operations, and monetization efficiency. This effort has accelerated significant growth in global markets. Additionally, the company has continually enhanced its self-developed multimodal algorithm model, Boomiix, which has contributed to improved user engagement and an enriched social experience. In the first half of 2025, SUGO reported steady growth across several key metrics, including average online time per user, average revenue per user (ARPU), and the paying user ratio, while TopTop's online community ecosystem continued to flourish. According to data from Sensor Tower, from January 1 to June 30, 2025, SUGO ranked 7th in the social app category by revenue in the Middle East, while TopTop ranked 10th among gaming apps on Google Play. In addition to maintaining steady growth in core markets like MENA and Southeast Asia, Newborn Town has worked to strengthen its global presence by exploring new opportunities. For example, SUGO's product features and business model have proven highly adaptable in emerging markets such as Latin America and Europe. Meanwhile, Newborn Town's diverse-audience social networking business has sustained solid development in global markets. Through deepening community engagement, iterating social features, and launching targeted brand campaigns, HeeSay has further cemented its leadership in Southeast Asia, boosting its brand influence. According to Sensor Tower, HeeSay ranked 16th in the social app revenue rankings on Google Play in Southeast Asia during the first half of 2025. Innovative Business Achieved Rapid Growth As the moat around the social networking business continues to strengthen, Newborn Town's second growth curve—driven by quality games and social e-commerce—has become increasingly evident. According to the announcement, revenue from the innovative business segment saw steady growth in the first half of 2025, fueled by strong traffic monetization, solid performance in social e-commerce, and contributions from high-quality games. In the first half of 2025, Alice's Dream: Merge Games and other key titles entered a phase of long-term operation, steadily contributing to the company's profits. Building on its success in the casual gaming sector and leveraging deeper AI integration across operations, Newborn Town has been able to reduce game development cycles and improve operational efficiency, creating a foundation for stronger growth in this segment. Additionally, the social e-commerce brand, Heer Health, continued its rapid expansion. By enhancing user services, building a diversified business ecosystem, and broadening acquisition channels, Heer Health has further solidified its leadership in the HIV prevention and sexual healthcare sectors. Since joining the JD Health platform in 2020, Heer Health has ranked as a top merchant in JD Health's anti-infection category for three consecutive years and has been consistently recognized as one of the most outstanding service providers annually. In June 2025, Newborn Town officially established its global headquarters in Hong Kong, marking a significant milestone in the company's worldwide expansion and signaling a new phase in its globalization strategy. Moving forward, the company will continue to be anchored in Hong Kong while maintaining a global outlook, leveraging technology to enhance social entertainment, exploring diverse opportunities in global markets, and creating positive emotional value for users worldwide.
Yahoo
05-06-2025
- Business
- Yahoo
Newborn Town Sets up its Global Headquarters in Hong Kong Science Park
HONG KONG, June 5, 2025 /PRNewswire/ -- Newborn Town Inc. (Newborn Town or the company, stock code: a leading global social entertainment company, has officially announced the establishment of its global headquarters in Hong Kong. The launch ceremony, held on June 5th, was attended by several distinguished guests, including Dr. Chiang Hok Lai, Deputy Director-General from the Office for Attracting Strategic Enterprises ('OASES') and Ms. Gladys Oon, Director of Corporate Development Division from Hong Kong Science and Technology Parks Corporation ('HKSTP'), alongside key executives from Newborn Town, including Mr. Chunhe Liu, the Chairman ('Chairman Liu') and Mr. Pengliang Song, Senior Vice President, Mr. Linzhou Zheng, Vice President and Ms. Gloria Yu, Vice President. Newborn Town established its global headquarters in Hong Kong Science Park in the name of its subsidiary, Solo X Technology Limited. Regarding the strategic significance of establishing the global headquarters in Hong Kong, Chairman Liu emphasized, 'Hong Kong boasts a world-class business environment, a well-established capital market and access to top-tier talent. The decision to establish our global headquarters here represents a pivotal step in Newborn Town's worldwide expansion strategy, marking the beginning of an exciting new chapter for our company.' Founded in 2009, Newborn Town has embarked on its global expansion journey since 2013 and went public on the Main Board of the Hong Kong Stock Exchange in 2019. Over the years, the company has consistently upheld its commitment to globalization, establishing over 20 operational centers across a number of strategic markets, including the Middle East and Southeast Asia. Its flagship products—MICO, YoHo, TopTop, SUGO, and Alice's Dream: Merge Games—are now available in more than 150 countries and regions. During the launch ceremony, Mr. Pengliang Song outlined the company's future plans in Hong Kong, 'Our strategic focus will be twofold. Firstly, we aim to delve into the profound applications of artificial intelligence within the realm of social entertainment. Secondly, Secondly, we are dedicated to attracting global tech-savvy talent to drive collaborative initiatives between industry, academia, and research institutions.' Mr. Song also highlighted that Newborn Town established its MENA headquarters in Riyadh, Saudi Arabia in the second half of last year, strengthening its footprint in the Middle East. With the launch of its global headquarters in Hong Kong, a new chapter in Newborn Town's global expansion begins. 'We look forward to collaborating with the Government of the Hong Kong Special Administrative Region (HKSAR), industry peers, and investment institutions and beyond. Through these partnerships, we aim to drive innovative developments in society, positioning ourselves as a global technology enterprise that exerts a positive influence on the world.' It has been reported that Newborn Town places significant emphasis on integrating AI into its business operations. The self-developed multi-model algorithm, Boomiix, has already enhanced commercialization efficiency across several products of the company. Ms. Gladys Oon, Director, Corporate Development Division from HKSTP added: "AI is a vital pillar in Hong Kong's diverse industries. The involvement of Newborn Town will accelerate innovation, research and development, as well as the practical application of AI technologies within the realm of social entertainment, further contributing to the city's development. HKSTP attracts global tech enterprises and talents, offering comprehensive support and fostering cross-sector collaboration to position innovation and technology as a new engine of economic growth. " Looking ahead, Mr. Song concluded: "In a future where AI significantly enhances productivity, the demand for leisure and entertainment will grow, highlighting the importance of ongoing innovation." In his view, Newborn Town will remain dedicated to nurturing the global social entertainment ecosystem, leveraging the market insights and vast user service experience it has accumulated. "Let the 'shrubs' of our app portfolio flourish and grow abundantly, cultivating a business ecosystem that evolves into global 'emotional values forests'—a digital space where global users can unwind, be entertained, and seek connection and comfort. With this vision, Newborn Town is rooted in Hong Kong and sets our sights on the world. By leveraging technology to empower social entertainment, we aim to deliver positive emotional experiences to a broader global audience." View original content to download multimedia: SOURCE Newborn Town Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Korea Herald
05-06-2025
- Business
- Korea Herald
Newborn Town Sets up its Global Headquarters in Hong Kong Science Park
HONG KONG, June 5, 2025 /PRNewswire/ -- Newborn Town Inc. (Newborn Town or the company, stock code: a leading global social entertainment company, has officially announced the establishment of its global headquarters in Hong Kong. The launch ceremony, held on June 5th, was attended by several distinguished guests, including Dr. Chiang Hok Lai, Deputy Director-General from the Office for Attracting Strategic Enterprises ('OASES') and Ms. Gladys Oon, Director of Corporate Development Division from Hong Kong Science and Technology Parks Corporation ('HKSTP'), alongside key executives from Newborn Town, including Mr. Chunhe Liu, the Chairman ('Chairman Liu') and Mr. Pengliang Song, Senior Vice President, Mr. Linzhou Zheng, Vice President and Ms. Gloria Yu, Vice President. Newborn Town established its global headquarters in Hong Kong Science Park in the name of its subsidiary, Solo X Technology Limited. Regarding the strategic significance of establishing the global headquarters in Hong Kong, Chairman Liu emphasized, 'Hong Kong boasts a world-class business environment, a well-established capital market and access to top-tier talent. The decision to establish our global headquarters here represents a pivotal step in Newborn Town's worldwide expansion strategy, marking the beginning of an exciting new chapter for our company.' Founded in 2009, Newborn Town has embarked on its global expansion journey since 2013 and went public on the Main Board of the Hong Kong Stock Exchange in 2019. Over the years, the company has consistently upheld its commitment to globalization, establishing over 20 operational centers across a number of strategic markets, including the Middle East and Southeast Asia. Its flagship products—MICO, YoHo, TopTop, SUGO, and Alice's Dream: Merge Games—are now available in more than 150 countries and regions. During the launch ceremony, Mr. Pengliang Song outlined the company's future plans in Hong Kong, 'Our strategic focus will be twofold. Firstly, we aim to delve into the profound applications of artificial intelligence within the realm of social entertainment. Secondly, Secondly, we are dedicated to attracting global tech-savvy talent to drive collaborative initiatives between industry, academia, and research institutions.' Mr. Song also highlighted that Newborn Town established its MENA headquarters in Riyadh, Saudi Arabia in the second half of last year, strengthening its footprint in the Middle East. With the launch of its global headquarters in Hong Kong, a new chapter in Newborn Town's global expansion begins. 'We look forward to collaborating with the Government of the Hong Kong Special Administrative Region (HKSAR), industry peers, and investment institutions and beyond. Through these partnerships, we aim to drive innovative developments in society, positioning ourselves as a global technology enterprise that exerts a positive influence on the world.' It has been reported that Newborn Town places significant emphasis on integrating AI into its business operations. The self-developed multi-model algorithm, Boomiix, has already enhanced commercialization efficiency across several products of the company. Ms. Gladys Oon, Director, Corporate Development Division from HKSTP added: "AI is a vital pillar in Hong Kong's diverse industries. The involvement of Newborn Town will accelerate innovation, research and development, as well as the practical application of AI technologies within the realm of social entertainment, further contributing to the city's development. HKSTP attracts global tech enterprises and talents, offering comprehensive support and fostering cross-sector collaboration to position innovation and technology as a new engine of economic growth. " Looking ahead, Mr. Song concluded: "In a future where AI significantly enhances productivity, the demand for leisure and entertainment will grow, highlighting the importance of ongoing innovation." In his view, Newborn Town will remain dedicated to nurturing the global social entertainment ecosystem, leveraging the market insights and vast user service experience it has accumulated. "Let the 'shrubs' of our app portfolio flourish and grow abundantly, cultivating a business ecosystem that evolves into global 'emotional values forests'—a digital space where global users can unwind, be entertained, and seek connection and comfort. With this vision, Newborn Town is rooted in Hong Kong and sets our sights on the world. By leveraging technology to empower social entertainment, we aim to deliver positive emotional experiences to a broader global audience."
Korea Herald
09-05-2025
- Business
- Korea Herald
Newborn Town's Price Target Hits HK$11, Fueled by Growth in the Global Emotional Value Market
HONG KONG, May 9, 2025 /PRNewswire/ -- CITIC Securities' research department has recently released its inaugural investment value analysis report on Newborn Town ( initiating coverage with a "buy" rating and a target price of HK$11. The report underscores Newborn Town's leading position in the global social entertainment industry. The report highlights Newborn Town's extensive operational experience overseas, particularly in the MENA region, and its successful strategy of replicating its product operations and market expansion experiences. The company's app portfolio is now entering a "harvesting phase," with promising growth potential ahead. CITIC Securities noted that Newborn Town, a global leader in social entertainment, has achieved robust growth in recent years. " Leveraging extensive experience in international markets, the company has effectively implemented its 'replication' strategy and efficiently executed its 'app portfolio' tactic. As a typical product-driven company, Newborn Town is now entering its 'harvesting phase, " the report states. The research report emphasizes that Newborn Town has a clear and synergistic business structure spanning three key segments.. Leveraging its middle platform system, a high proportion of local employees, the growth path combining investment and R&D efforts, and the rapid iteration of AI technology, Newborn Town is able to implement its 'replication' strategy swiftly. This enables the company's new products to accurately meet market demands, quickly establish a presence, and capture the first-mover advantage in the social networking markets at a relatively low cost. According to the report, Newborn Town's pan-audience social business has developed a healthy product hierarchy. The company currently boasts four flagship products. Its established products, MICO and YoHo contribute stable cash flow, while newer offerings, TopTop and SUGO delivered explosive growth in 2024, with revenues increasing by over 100% and 200% year-on-year respectively. CITIC Securities forecasts that, in the short term, TopTop and SUGO are expected to achieve around 50% year-on-year revenue growth in 2025. The company is well-positioned to develop blockbuster products in the medium to long term, leveraging its proven replicability to sustain its business growth. Newborn Town's diverse-audience social business is rapidly expanding in global markets. According to Frost & Sullivan, the global LGBTQ+ population is projected to reach 660 million by 2026, characterized by high income, significant consumption power, and a strong demand for online social interaction. With a high barrier to entry, Newborn Town has secured a significant first-mover advantage by establishing a large and engaged user base. CITIC Securities believes that the company's LGBTQ+ social platform, HeeSay shows significant growth potential. With its expansion into markets such as Southeast Asia, Japan, and South Korea, coupled with its live streaming feature, HeeSay is expected to achieve even greater market penetration. CITIC Securities projects a compound annual growth rate (CAGR) of approximately 25% in revenue from 2025 to 2027. As Newborn Town's social business continues to strengthen, the company has successfully developed a second growth curve by expanding into innovative areas such as mobile gaming and social e-commerce. CITIC Securities believes that by strategically targeting the casual gaming sector—an untapped market with significant potential—and leveraging its innovative product designs and flexible operational strategies, Newborn Town's merge game Alice's Dream: Merge Games has outperformed expectations and is now generating revenue for the listed company. Looking ahead, CITIC Securities projects that, with the accumulation of successful experience, Newborn Town will be able to launch new quality games with shorter recovery cycles, thereby creating another growth curve for the company. CITIC Securities also pointed out the impressive performance of Newborn Town's social e-commerce business. "There's a growing demand for online purchases of HIV medications and sexual wellness products in China. Heer Health, an e-commerce platform focused on the 'Internet + AIDS prevention' scenario, has become the leading online distributor of certain HIV medications, with roughly 50% of the domestic market share. The platform drives growth through its large user base, extensive distribution channels, and rapid delivery capabilities." Target Price Raised to HK$11, Driven by Strong Growth Potential in the Global Emotional Value Sector CITIC Securities sees substantial room for growth in the global social media market. According to Grand View Research, the global social networking market is projected to reach US$310.37 billion by 2030. Notably, regions such as the Middle East and Southeast Asia are recognized as high-potential markets, with low penetration rates yet strong user engagement, making them key areas for future growth. The research report highlights that, driven by the growth of industries like oil, countries in the MENA region enjoy high per capita GDP. However, factors such as the natural environment, religious customs, and cultural norms limit offline social entertainment options, creating a significant demand for online alternatives. With a user base that enjoys both wealth and leisure time, the market for social applications in the MENA region presents substantial growth potential. According to Verified Market Research, the Middle East media and entertainment market is projected to reach US$82 billion by 2032. Meanwhile, Southeast Asia, with its youthful, internet-savvy population and fast-improving digital infrastructure, is expected to see the GMV of digital entertainment reach US$3.4 billion by 2025. CITIC Securities observes that Newborn Town is strategically targeting the social networking segment for strangers, a space currently lacking dominant competitors. As Generation Z becomes the dominant user group, the demand for personalized social networking experiences continues to rise, blurring the lines between social networking and entertainment. Consequently, social products that cater to individual user preferences are likely to see higher user retention. Newborn Town has already established flagship products in live streaming, gaming, and voice chat, and is anticipated to expand further into other sub-segments in the future. The research report highlights Newborn Town's strong financial performance, characterized by sustained growth and robust cash flow. From 2020 to 2024, the company's revenue increased from RMB1.18 billion to RMB 5.09 billion, representing a CAGR of 44.1%. At the same time, the company's profitability has significantly improved, with gross margins for its social business continuing to rise. Operating cash flow remains healthy, and the company's cash reserves are substantial, ensuring ample resources for future expansion. CITIC Securities has highlighted Newborn Town's promising long-term growth, forecasting net profits of RMB 949 million, RMB1.215 billion, and RMB 1.519 billion for 2025-2027. The current price corresponds to price-to-earnings (PE) ratios of 11x, 8x, and 7x, respectively. By using both comparable valuation and discounted cash flow (DCF) methods, CITIC Securities has set a target price of HK$11 per share. Looking ahead, with continued advancements in AI technology, expansion into emerging markets, and the growing momentum of the emotional value sector, Newborn Town well-positioned to reinforce its leadership in the global social entertainment industry. For long-term investors, the current valuation presents an attractive opportunity.
