(Hong Kong, 28 August 2025) NetDragon Websoft Holdings Limited (“NetDragon” or the “Company”;Hong Kong Stock Code: 777), a global leader in building internet communities, today announced itsfinancial results for the first half of 2025. NetDragon’s management team will hold a conference calland webcast at 10:00am Hong Kong time on 29 August 2025 to discuss the results and recentbusiness development.

Dr. Dejian Liu, Chairman of NetDragon, commented: “We maintained stable operations despitetemporary challenges in the first half of 2025. The gaming business advanced its execution underthe established ‘Evergreen Operation Plan’. While this led to short-term revenue fluctuations,gaming performance has now stabilised, showing only a marginal HoH decline in revenue.Meanwhile, Mynd.ai business was affected by external factors including increased tariffs andsoftening demand in its key markets. While challenges persist, our efforts to streamline operationsand enhance cost efficiency have resulted in a 15.6% YoY reduction in the Company’s operatingexpenses with full impact anticipated in the second half of 2025 and beyond, paving the way forfuture profitability.”

“We are confident in our long-term sustainable growth and value-creation potential. With solidresults from multiple strategic investments and robust cash reserves, we are well positioned tofurther our commitment of enhancing shareholder returns. The Board of Directors has approved aninterim dividend of HKD0.5 per ordinary share, representing an increase of 25% YoY, and adistribution of no less than HKD600 million to our shareholders over the next 12 months through acombination of dividend payments and share repurchases (Shareholder Return Program).”

“For the longer term of development, we fully embraced the new artificial intelligence (AI) era andupheld our vision of ‘Infinite Growth’, while further advancing the execution of our dual-focusstrategy – ‘AI+Gaming’ and ‘AI+Education’. In the gaming sector, our evergreen flagship IPEudemons continued to elevate content quality and launched a series of crossover collaborationswith cultural heritage projects and public welfare initiatives, leading to sustained growth in userengagement. Meanwhile, our Conquer IP delivered solid progress in overseas expansion andcontent monetisation. The ‘Content+Esports’ engine for Heroes Evolved IP proved to be asignificant success. In the education sector, we implemented a systematic restructuring of ourdomestic EdTech businesses, sharpening our focus on core AI-powered projects such as country-level platforms, as well as the vocational education business. Our U.S.-listed subsidiary, Mynd.ai,successfully launched its next-generation integrated solution, ActivPanel 10® and PrometheanActivSuite® software, and reached an agreement to acquire an award-winning AI voice assistant

technology, leveraging our vast user base to further enhance our SaaS offerings. In addition, weintroduced Zhongke WengAI (“Wenge”), a leading AI large language model company in China, as astrategic shareholder of our Hong Kong-based subsidiary Cherrypicks to support its AI evolution. InAugust,CherrypicksandWengejointlyreleasedthreeco-developedAIapplications:theinternationalversionofX-Agent(AI-poweredzero-codeenterpriseagentfactory),WiSky(multilingual intelligence platform with AI-powered social listening for global decisions), and YoYa(multimodal creative studio with AI-powered all-in-one intelligent audio-video synthesis). Thismilestone marks the first time that China’s core AI technologies have been brought to globalmarkets under the lead of a Hong Kong enterprise. In early June, we unveiled our strategy ofempowering global digital education development through AI Content Factory at the United NationsHigh-level Expert Group Meeting in New York, as we move forward with partners to build a globaleducation metaverse platform.”

2025 First Half Financial Highlights

• Revenue was RMB2.4 billion, representing a 27.9% decrease YoY.
• Revenue from the gaming and application services was RMB1.7 billion, representing 73.0%of the Company’s total revenue and reflecting an 18.1% decrease YoY, but theperformance has stabilised with a 4.3% decrease HoH.
• Revenue from Mynd.ai business was RMB641 million, representing 26.9% of theCompany’s total revenue and a 45.7% decrease YoY, reflecting the extended demandadjustment caused by economic uncertainty.
• Gross profit was RMB1.7 billion, representing a 24.7% decrease YoY, whereas gross profitmargin increased 2.9 percentage points to 69.5% YoY.
• Operating expenses decreased by 15.6% YoY to RMB1.4 billion, reflecting the early impactof our cost reduction and efficiency improvement measures, which are expected to be fullyrealised in the second half of 2025.
• Profit attributable to owners of the Company was RMB30 million, representing a 92.5%decrease YoY, affected by an impairment loss of intangible assets as of 30 June 2025which is expected to fully reverse in the second half of 2025 based on the current marketprice, as well as one-off expenses associated with the staff optimisation plan. Excludingthese two items, the decrease in adjusted profit attributable to owners of the Companysignificantly narrowed.
• The Company declared an interim dividend of HKD0.5 per ordinary share for the six monthsended 30 June 2025.

• Segmental Financial Highlights

Gaming and Application Services Business

Revenue from our gaming and application services amounted to RMB1.7 billion in the first half of 2025, representing a decrease of 18.1% YoY and a slight decrease of 4.3% HoH. We remain committed to long-term operations and the development of evergreen IPs. While revenue experienced a temporary decline due to certain short-term factors, we continued to enhance player experience, drive user growth, and strengthen engagement – laying a solid foundation for the long- term sustainability of our gaming business. With the continued progress of business optimisation, segmental operating expenses have been effectively controlled, representing a decrease of 14.7% YoY, while core segmental profit rebounded HoH to RMB501 million, demonstrating strong resilience and positive recovery momentum.

In the gaming sector, the deployment of the AI Content Factory further enhanced operational efficiency: The overall workforce structure has been enhanced to further align with the AI era, thereby strengthening team capability and cohesion, which led to a 26.7% YoY reduction in R&D costs across the gaming and application service segment. Alongside cost optimisation, our “AI+” strategy has also significantly boosted our efficiency: different gaming teams under the same IP now collaborate more effectively through the AI Content Factory, achieving better integration and greatly enhancing cross-version content collaboration and automated generation capabilities. Our R&D and

1 Segmental operating expenses exclude unallocated expenses/income such as directors’ emoluments and certain administrative expenses that have been grouped into SG&A categories on the Company’s reported consolidated financial statements, but cannot be allocated to specific business segments for purpose of calculating the segmental profit (loss) figures in accordance with HKFRS 8.

innovation efforts also closely align with the AI trends: Our major new title, Code-MY, started itsclosed beta testing for IP users in August, with preparations for its official launch underway. Themobile game Code-Alpha is preparing to expand into multiple overseas markets. With the support ofAI Content Factory, our flagship IP Eudemons will be able to efficiently roll out multi-languageversions, opening new opportunities overseas. Meanwhile, Legend of Eudemons was successfullylaunched on several mini game platforms in the first half, further enhancing the IP’s influence. Inaddition, our other self-developed IPs such as Under Oath and Zero Online, are scheduled forrelease through publishing and licensing partnerships, bringing in additional revenue. Lookingforward, we are positioning the long-term R&D focus on AI-native games. We have already builtpreliminary capabilities in AIGC graphical design, multi-agent collaboration, intelligent NPC, closed-loop data iteration, data safety and compliance, planning to roll out prototypes by phases to lay thefoundation for next-generation gaming innovation.

In the application services sector, we further advance our strategy of fully embracing thenew AI era: Our domestic EdTech business will focus on core AI-powered projects such as country-level platforms, as well as vocational education business. In Thailand, our AI-driven vocationaleducation project collaborated with the Ministry of Higher Education, Science, Research, andInnovation (MHESI) was officially launched, providing nationwide training in fields such as newelectric vehicles for university students and the broader youth community. Supported by the WorldBank, we signed a cooperation agreement with the Ministry of Secondary Education of Cameroon(MINESEC) to enhance digital education in the country, with the aim of improving education equityand teaching quality. Our Hong Kong-based subsidiary Cherrypicks successfully secured strategicinvestment from Wenge and will serve as its sole overseas commercialisation and go-to-marketplatform, facilitating the rollout of China’s leading AI technologies in Hong Kong, Macau, andoverseas markets. Wenge’s “YaYi” large language model and its AI- Scientist Agent ranked firstacross two global AI Agent benchmarks in 2025, underscoring its world-class R&D capabilities. InAugust, Cherrypicks and Wenge jointly launched AI applications including social listening andmultimodal content creation tools globally. Leveraging Hong Kong’s position as an internationalinnovation and technology hub and its multilingual environment, these products will expand intooverseas markets such as Southeast Asia, Europe, and the U.S. Beyond creating new revenuestreams, this strategic partnership will further strengthen our AI capabilities and resources.

Beyond the gaming and application services business, the strategic value of the Company’sinitiatives in frontier technologies and the AI+ ecosystem continues to materialise: Ourinvestee in AI edge devices successfully launched a new generation of AI glasses, marking a keybreakthrough in consumer applications. In cultural creativity and IP operations, the influence of ourinvestee’s flagship IP portfolio further expanded, driving stronger commercialisation. Going forward,we will continue to focus our strategic investments on frontier technologies including AI, XR, robotics,and blockchain, as well as the cultural innovation sector, ensuring solid synergy effects with ourcore businesses.

Mynd.ai

Notwithstanding industry-wide softening throughout most of our key geographic markets, customerbudget uncertainties, and increased tariffs, we are focused on positioning Mynd.ai for future success.The introduction of our next-generation integrated solution, ActivPanel 10® and PrometheanActivSuite® software, is the first step in the transformation of our core offerings designed to enhancecybersecurity, facilitate a seamless “plug and play” experience with customers’ existing technology,and lower lifetime cost of ownership. The accelerated product portfolio evolution is further enabledand enhanced by our continued focus on various cost optimisation initiatives designed to improveour competitive positioning in the market and facilitate further investments in our business. On theinvestment front, we are very excited to highlight our entry into an agreement to acquire an award-winning AI voice assistant technology, which we expect to complete during the third quarter. Webelieve that this acquisition will allow us to accelerate and evolve our AI-enabled solution roadmapand significantly enhance the interaction of the full ecosystem of software and hardware offerings ina classroom.

The key financial highlights for Mynd.ai in the first half of 2025 are as follows:– Revenue of RMB641 million compared to RMB1,180 million for the same period in the prior year, with the decrease primarily driven by declines in customer spending due to budgetary reductionscaused by economic uncertainty– Core segmental loss of RMB195 million compared to a loss of RMB111 million for the same period in the prior year– Cash flow from continuing operations decreased by RMB239 million compared to the same period in the prior year, with cash reserves of RMB208 million as of June 30, 2025– Reduced outstanding indebtedness by RMB53 million since year end– Management continuing to implement cost saving measures to mitigate effects of education technology market headwinds

– End –

Management Conference Call and Webcast

NetDragon’s management team will hold a conference call and webcast at 10:00am HongKong time on 29 August, 2025 to discuss the results and recent business developments.

Details of the live conference call and webcast are as follows:

The live and archived webcast of the conference call will be available on the Investor Relationssection of NetDragon’s website at http://ir.nd.com.cn/en/category/webcast. Participants in the livewebcast should visit the aforementioned website 10 minutes prior to the call, then click on the iconfor “2025 Interim Results Presentation and Webcast” and follow the registration instructions.

About NetDragon Websoft Holdings Limited

NetDragon Websoft Holdings Limited (HKSE: 777) is a global leader in building internetcommunities, with a long track record of developing and scaling multiple internet and mobileplatforms that impact hundreds of millions of users. Over the desktop and mobile internet eras,NetDragon previously established China’s first online gaming portal, 17173.com, and China’smost influential smartphone app store platform, 91 Wireless.   Established in 1999, NetDragon is one of the most reputable and well-known online gamedevelopers in China with a history of successful game titles including Eudemons Online, ConquerOnline,Heroes Evolved and Under Oath. In the past 10 years, NetDragon has also achievedsuccess with its EdTech business both domestically and globally. Fully embracing the new AI era,NetDragon is driving its vision of “Infinite Growth” through a dual-focus strategy of “AI+Gaming” and“AI+Education”. With its AI Content Factory empowering operations and working with partners todevelop a global learning metaverse, NetDragon is committed to once again building a massiveuser community in the new AI era.

NetDragon’s overseas edtech business entity, currently a U.S.-listed subsidiary named Mynd.ai, is aglobal leader in interactive technology and its award-winning interactive displays and software canbe found in more than 1 million learning and training spaces across 126 countries.

For investor enquiries, please contact:
NetDragon Websoft Holdings Limited
Ms. Maggie Zhou
Senior Director of Investor Relations
Email：maggiezhou@nd.com.hk / ir@netdragon.com
Website：ir.netdragon.com