Newborn Town reports surging profits, strong growth in first half 2025

Newborn Town Inc. recorded a substantial financial uplift for the six months ended June 30, 2025. Revenue from contracts with customers surged by 40.0% to 3,181.3 million yuan, up from 2,271.9 million yuan in the same period last year. Gross profit also saw a significant increase of 55.6% to 1,775.1 million yuan, compared to 1,141.0 million yuan in 2024. Profit attributable to equity shareholders of the company more than doubled, rising by 117.8% to 489.3 million yuan, from 224.7 million yuan previously. Adjusted EBITDA grew by 44.0% to 645.7 million yuan.

The growth was primarily fueled by the social networking business, which generated 2,834.3 million yuan in revenue, a 37.0% increase, and the innovative business, which soared by 70.5% to 347 million yuan. The company attributes this performance to continuous user engagement, deepened localized operations, diversified product portfolios, and the leveraging of AI technology to enhance efficiency and user experience. Strategic investments in niche games and social e-commerce also played a crucial role.

The company's total assets increased to 3,889.7 million yuan as at June 30, 2025, from 3,583.0 million yuan at December 31, 2024. Net cash inflow from operating activities also improved significantly to 539.4 million yuan, up from 358.7 million yuan for the same period in 2024, demonstrating strong operational cash generation.