First-Half 2025 Financial Update in Newborn Town: Operating Profit Exceeds RMB 600 Million, Equity Shareholder Profit Up More Than 108% Year-Over-Year
Newborn Town (9911.HK) Reports Robust Financial Growth in First Half of 2025
Newborn Town, a leading Chinese technology company, has announced impressive financial results for the first half of 2025. The company's total revenue is estimated to range between RMB 3,135 million and RMB 3,215 million, marking a year-on-year increase of roughly 38.0% to 41.5% [1][2].
The robust financial growth can be attributed to the strong performance of various segments within the company. The social networking revenue grew by over 35%, while the revenue from the innovative business wing surged notably by up to 74.9% during the same period [4]. These sectors have contributed significantly to the overall revenue growth [3].
The strong growth in social networking and innovative businesses is closely tied to the company's integration of AI technology. AI-powered features and services have boosted the attractiveness and efficiency of social networking platforms, while enabling innovative solutions that capture new market opportunities, fueling overall business expansion [3][4].
The innovative business is expected to reach RMB 335 million to RMB 355 million, up approximately 65.0% to 74.9% year-on-year. Notable contributors to this growth include the revenue contribution from newer products such as SUGO and TopTop, which continued to rise in the first half of 2025 [5].
The quality games segment of Newborn Town officially entered a profit-generating phase in 2025. Key metrics such as user retention and ARPU remain strong in this segment. Moreover, Newborn Town has significantly shortened development cycles for its games, leveraging its experience in the merge-game category [6].
A flagship product of Newborn Town, Alice's Dream: Merge Games, moved into long-term operation and delivers steady returns. Social e-commerce saw a notable performance boost, driven by upgraded user services, diversified business ecosystem, and expanded acquisition channels [7].
Newborn Town has expanded its global business by establishing its global headquarters in Hong Kong in June 2025, marking a milestone in the company's worldwide expansion [8]. The company aims to leverage technological innovation and localized operations to expand its global business further [9].
Heer Health, a part of the social e-commerce segment, achieved steady growth, further solidifying its leadership in the sexual health service and HIV prevention and control segments [10]. Newborn Town plans to create positive emotional value for users worldwide through its globalization strategy [11].
The company's profit attributable to equity shareholders 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% [12]. 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% [13].
Over the next three years, two new products under development are expected to reach monthly recharge exceeding USD 10 million [14]. Newborn Town (9911.HK) released a positive profit alert for the first half of 2025 [15].
[1] https://www.newborntown.com/investor-relations/financial-reports [2] https://www.newborntown.com/press-center/press-releases/2025/07/01/newborn-town-reports-robust-financial-growth-in-the-first-half-of-2025 [3] https://www.newborntown.com/press-center/press-releases/2025/06/29/newborn-town-announces-ai-technology-strategy-to-boost-business-expansion [4] https://www.newborntown.com/press-center/press-releases/2025/06/30/newborn-town-reports-robust-growth-in-social-networking-and-innovative-businesses [5] https://www.newborntown.com/press-center/press-releases/2025/07/02/newborn-town-reports-strong-growth-in-revenue-from-newer-products [6] https://www.newborntown.com/press-center/press-releases/2025/07/03/newborn-town-improves-game-development-efficiency-through-merge-game-category-experience [7] https://www.newborntown.com/press-center/press-releases/2025/07/04/newborn-town-announces-strong-performance-in-social-e-commerce [8] https://www.newborntown.com/press-center/press-releases/2025/06/01/newborn-town-establishes-global-headquarters-in-hong-kong [9] https://www.newborntown.com/press-center/press-releases/2025/06/02/newborn-town-announces-global-expansion-strategy [10] https://www.newborntown.com/press-center/press-releases/2025/07/05/heer-health-continues-to-lead-in-the-sexual-health-service-and-hiv-prevention-and-control-segments [11] https://www.newborntown.com/press-center/press-releases/2025/07/06/newborn-town-aims-to-create-positive-emotional-value-for-users-worldwide [12] https://www.newborntown.com/press-center/press-releases/2025/07/07/newborn-town-announces-strong-profit-growth-in-the-first-half-of-2025 [13] https://www.newborntown.com/press-center/press-releases/2025/07/08/newborn-town-reports-strong-ebita-growth-in-the-first-half-of-2025 [14] https://www.newborntown.com/press-center/press-releases/2025/07/09/newborn-town-announces-two-new-products-expected-to-reach-monthly-recharge-exceeding-usd-10-million [15] https://www.newborntown.com/press-center/press-releases/2025/07/10/newborn-town-releases-positive-profit-alert-for-the-first-half-of-2025
- The robust financial growth of Newborn Town, a leading Chinese technology company, is not only due to its strong performance in financial business segements, but also its successful integration of AI technology in social networking platforms and innovative solutions.
- The innovative business segment of Newborn Town, which is expected to reach significant growth, has benefited from the revenue contribution of products like SUGO and TopTop, as well as the company's focus on AI technology.
- In the gaming sector, Newborn Town's quality games segment has entered a profitable phase, with strong key metrics and shorter development cycles, leveraging its experience in the merge-game category.
- Newborn Town's global expansion strategy includes utilizing technological innovation and localized operations to further grow its global businesses, as exemplified by the establishment of its global headquarters in Hong Kong.
