EQS Newswire: NewBornTown: Newborn Town Inc. (SEHK: 9911) Achieved 40.0% Growth in 2025 H1 Revenue, Profit Attributable to the Owners of the Company Surged by 117.8%

EQS Newswire / 28/08/2025 / 21:11 UTC+8

Newborn Town Inc. (SEHK: 9911) Achieved 40.0% Growth in 2025 H1 Revenue, Profit Attributable to the Owners of the Company Surged by 117.8%

[Hong Kong - 28 August 2025] Newborn Town Inc. (Newborn Town or the company, together with the subsidiaries as 'the Group', stock code: 09911.HK), a leading global social entertainment company, released its interim results for the first half of 2025. Fueled by explosive growth in social networking and innovative businesses, alongside enhanced AI integration, the Group achieved impressive results in the first half, with total revenue increasing by 40.0% year-on-year and profit attributable to the owners of the Company surging by 117.8% year-on-year.

Regarding the performance of its business segments, the social networking segment remained the Group's primary revenue driver. New products such as TopTop and SUGO continued to perform strongly, while flagship products like MICO and YoHo maintained stable profit contributions. The innovative business saw a robust 70.5% year-on-year revenue growth, driven by quality games and social e-commerce.

The MENA region, recognized as one of Newborn Town's key markets, continued to unlock huge business potential for the first half. Its core social products achieved over 60% YoY growth in business scale during this period.

Robust Growth across Financial Metrics boosted by "Social + Innovation" Dual Engines

For the six months ended 30 June 2025, the Group achieved revenue from contracts with customers of RMB 3,181million, representing a year-on-year increase of 40.0%. Gross profit reached RMB1,775million, up 55.6% year-on-year. Profit attributable to equity shareholders of the company was RMB489million, reflecting an impressive 117.8% year-on-year increase. Adjusted EBITDA totaled RMB 646 million, demonstrating a 44.0% year-on-year growth.

The social networking business continued its steady expansion, generating revenue of RMB2,834million, up 37.0% year-on-year. In particular, the companion-based social networking platform SUGO and gaming-oriented social networking platform TopTop delivered exceptional results, with revenue growth exceeding 100% for both. Meanwhile, profits for SUGO and TopTop grew by over 150% and 100% year-on-year, respectively.

Notably, TopTop's monthly recharge amount has surpassed US$10 million for the first half, making it the company's third product - after MICO and SUGO - to reach this milestone. This achievement not only reflects Newborn Town's strength in executing its core strategy of replication but also highlights the significant opportunity in cultivating a 'bush-like' product portfolio globally.

Revenue from the innovative business segment reached RMB347million, representing a year-on-year increase of 70.5%. The flagship games including Alice's Dream: Merge Games entered a phase of long-term operation, steadily contributing to the company's profit. Meanwhile, the social e-commerce platform, Heer Health, achieved profit growth of over 100% year-on-year, further consolidating its leading position in the HIV prevention and sexual health services sectors.

Rooted in the Middle East while Expanding Globally: MENA Market's Business Scale Surges Over 60%

The MENA region continued to serve as a strategic market for Newborn Town and unlocked strong commercial potential in the first half of 2025. According to the announcement, the business scale from the Group's core social networking products in the MENA region surged over 60% year-on-year in the first half of 2025, sustaining the strong growth momentum established in 2024.

This success underscores the Group's long-term commitment to the MENA region and the effectiveness of its refined operational strategies, further reinforcing its leadership in local markets. With multiple flagship products leading their respective categories, the Group is steadily advancing toward its strategic goal of complete market penetration in the MENA region.

Newborn Town's global business strategy continues to evolve, with its social networking business primarily focused on the MENA and SEA regions, while its quality games portfolio targets developed markets such as North America, Japan, and South Korea. SUGO, one of the company's flagship apps, completed its initial launch in several regions across Latin America and Europe, demonstrating strong market adaptability in both its business model and product design.

The first half of 2025 has been marked by both opportunities and challenges across global markets. In this context, Newborn Town's steady growth highlights the foresight and resilience of its "bush-like" strategy, further demonstrating the company's strong ability to achieve sustainable and organic growth.

Deeper AI Integration Fuels Sustainable Business Growth

In the first half of 2025, Newborn Town further integrated AI into its business operations, accelerating R&D efficiency, enhancing operational precision, and significantly improving the user experience of its social apps while optimizing the overall social ecosystem.

For example, SUGO achieved significant operational improvements driven by AI, with key metrics like average time spent per user, payment ratio and ARPU steadily showing growth.

AI also played a vital role in strengthening the Group's risk management system in its platforms, fostering a healthy social environment. This has a positive impact on strengthening user trust and satisfaction, improving new user acquisition, and enhancing overall user retention.

In addition to its AI integration efforts, Newborn Town has actively pursued the development of AI-powered products. In the first half of 2025, the company launched Aippy, an AI-driven no-code community that enables users to easily build websites, mini-games and other creative content, as well as interact with one another. Designed for users without programming background, Aippy is currently available on iOS.

Over the past years, Newborn Town has continued to upgrade its globalization strategy. Following the establishment of its regional headquarters in Riyadh in 2024, the Group officially opened its global headquarters in Hong Kong in June 2025.

Looking forward, by leveraging the pivotal role of its Hong Kong global headquarters, Newborn Town will collaborate closely with its global R&D and operation centers to scale its business and create positive emotional value to users worldwide.

About Newborn Town

Newborn Town has grown into a leading technology company which was listed on the Main Board of the Hong Kong Stock Exchange (HKEX) in 2019 under the stock code 9911. Committed to creating positive emotional values worldwide, Newborn Town has developed a diverse portfolio of applications in the social networking and entertainment sectors. Its social apps include MICO, YoHo, TopTop, SUGO and HeeSay, together with gaming products like Alice's Dream: Merge Games. These applications have achieved widespread acclaim, reaching over one billion users in over one hundred countries and regions.Newborn Town considers the Middle East and North Africa (MENA) region a key market and has also extended its influence in Southeast Asia, Europe, the United States, Japan, and South Korea. The company aims to become the world's largest social entertainment company.

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28/08/2025 Dissemination of a Financial Press Release, transmitted by EQS News.
The issuer is solely responsible for the content of this announcement.

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