Newborn Town Announces Q1 2025 Operating Data: Revenue Expected to Exceed RMB 1,500 Million, Up 41.5% to 48.1 %, Fueled by Explosive Growth in Social and Innovative Businesses

HONG KONG,April 24, 2025/PRNewswire/ -- Newborn Town Inc. (Newborn Town or the company, stock code: 09911.HK), a leading global social entertainment company, released its unaudited operating data for the first quarter of 2025.

For the three months ended31 March 2025, the company's total revenue is estimated to reachRMB 1,500 milliontoRMB 1,570 million, reflecting a year-on-year increase of approximately 41.5% to 48.1%. Revenue from social networking business amounted to approximatelyRMB 1,345 milliontoRMB 1,395 million, representing a year-on-year increase of approximately 39.1% to 44.3%. The innovative business saw a year-on-year growth of about 66.7% to 88.2%, as the segment's revenue recorded approximatelyRMB 155 milliontoRMB 175 million.

Social Networking Business Sees Explosive Growth Driven by AI Technology

According to the announcement, the significant growth in social networking business revenue was attributable to the proactive adoption of AI technology, which has contributed to the expansion of its diverse suite of social applications. Over recent years, Newborn Town has deepened the integration of AI into its business operations, guided by the strategy of"AI Empowerment + Localized Operations + Global Expansion", yielding increasingly tangible outcomes.

Earlier this year, Newborn Town introduced its self-developed multimodal algorithm model, Boomiix, which has enhanced user experiences and monetization potential through precise user behavior analysis and optimized recommendations. With continuous upgrades to Boomiix and its deeper integration across the business scenes and processes, the company's social apps have achieved comprehensive growth in the first quarter, along with improvements in both revenue scale and commercialization efficiency.

Noteworthy progress was seen in the market performance of the company's social products, SUGO and TopTop, which have bolstered their competitiveness. According to data from Sensor Tower, during the period fromJanuary 1 to March 31, 2025, SUGO and TopTop respectively ranked 9thand 14thin the social apps category on the App Store's revenue rankings for theMiddle East.

The company's diverse-audience social networkingbusinessalso delivered outstanding performance in overseas markets. By optimizing social features, nurturing community ecosystems, and hosting branded events, HeeSay solidified its leadership in key markets such asSoutheast Asia. Sensor Tower's data indicates that HeeSay ranked among the top 20 social apps by revenue on Google Play inSoutheast Asiaduring the first quarter of 2025.

Innovative Business: Quality Games PropelRevenueGrowth, While Social E-commerce Expands Rapidly

According to the announcement, the growth in revenue from the innovative business segment was driven by the steady development of social e-commerce and continuous contributions from quality games.

Newborn Town's quality games business began contributing revenue to the listed company in the fourth quarter of 2024, signifying a successful entry into the global gaming arena. With the increasing application of AI across all stages of game development and operations, the quality games business is poised to deliver further commercial value, reinforcing the company's second growth curve.

In the first quarter, Newborn Town's social e-commerce business also experienced rapid growth. This business, centered around Heer Health, a leading privacy-focused health e-commerce platform, achieved remarkable revenue growth in 2024, demonstrating robust potential in the company's innovative business segment.

Newborn Town Repurchased Over 100 Million Shares in Two Years

Amid rapid business growth, Newborn Town has intensified its share repurchase efforts. OnMarch 20, 2025, the company announced plans to allocate up toHKD 200 millionover the next two years to an independent professional trustee for the repurchase of company shares via a restricted share unit plan. Notably, this follows a similar-scale repurchase plan announced onDecember 13, 2024, underscoring the company's strong confidence in its business expansion potential.

According to an announcement onApril 17, 2025, the company has purchased over 100 million shares from the market over the past two years. The board believes that these repurchases reflect the company's confidence in its business outlook and prospects, ultimately benefiting the company and creating value for shareholders.

Newborn Town's strategy of"AI Empowerment + Multi-market Breakthrough"continues to deliver results, fueled by the all-around advancement in the company's product innovation, localized operation and business growth, as well as the AI-powered commercialization efficiency. As a result, the Company's social networking and innovative businesses—the dual growth engines of Newborn Town—are gaining momentum.

Moving forward, Newborn Town will strengthen its market presence in theMiddle Eastwhile expanding globally to create more positive emotional value for users.

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SOURCE Newborn Town