Newborn Town's AI Strategy Fuels Near-Doubling of Annual Net Profit

HONG KONG – March 04, 2026 – Newborn Town Inc. (09911.HK), a global social entertainment company, has signaled a year of explosive growth, forecasting that its net profit for 2025 will nearly double, driven by the deep integration of artificial intelligence across its expanding portfolio of social and gaming applications.

In a positive profit alert issued this week, the Hong Kong-listed firm projected its net profit attributable to owners for the year ended December 31, 2025, to land between RMB900 million and RMB940 million. This represents a staggering year-on-year increase of 87.5% to 95.8%. Total revenue is also set for robust growth, expected to range from RMB6,760 million to RMB7,000 million, an increase of 32.8% to 37.5% from the previous year. The announcement underscores a successful strategy that has not only boosted the top and bottom lines but has also captured significant attention from capital markets.

The AI Engine Driving Unprecedented Growth

At the heart of Newborn Town's remarkable performance is a deliberate and comprehensive AI strategy. The company has moved beyond simply adopting off-the-shelf solutions, instead developing a suite of proprietary AI platforms that are now deeply embedded in its operations, from product development to user monetization. This technological advantage is credited as the primary catalyst for its financial success.

A key component of this strategy is Boomiix, the company's self-developed multimodal algorithm model. Through ongoing iterations, this model has significantly enhanced the commercialization potential of Newborn Town's core social products. By optimizing content recommendations and user interactions, Boomiix has directly improved key performance indicators such as payment conversion rates and Average Revenue Per User (ARPU), creating a more efficient and profitable user ecosystem.

Internally, the company has streamlined its operations with the launch of Siyu AI, a data intelligence platform. This tool empowers teams to access comprehensive data insights within 15 minutes, a dramatic improvement in efficiency for processes like data queries, anomaly detection, and report generation. This acceleration of the data-to-decision pipeline allows for more agile and responsive business strategies.

Complementing these platforms is KIVI, an AI-powered design platform that automates and enhances creative functions. From producing virtual gifts that drive in-app purchases to generating marketing assets for user acquisition campaigns, KIVI has reduced development costs and time, further bolstering the company's operational efficiency and profit margins.

Global Footprint Expands from MENA to Japan

While its technology stack provides the engine, Newborn Town's growth is being realized on the global stage. The company has successfully executed a localized expansion strategy, establishing strongholds in key overseas markets, particularly in the Middle East, North Africa (MENA), and more recently, Japan.

The social gaming platform TopTop has emerged as a star performer. In 2025, it not only sustained growth in its user base and revenue but also gained critical acclaim, being named the "Best Social Game Platform" at the prestigious Sensor Tower APAC Awards. This award recognizes its innovation in the burgeoning "social + gaming" segment. Leveraging a differentiated product and a highly localized approach, TopTop also successfully penetrated the competitive Japanese market, climbing into the top tier of the country's App Store charts.

Meanwhile, the company's foundational social products continue to deliver stable returns. The live-streaming platform MICO and the voice-based social app YoHo have maintained strong positions within their respective niche markets, contributing consistent revenue and profit. The company's diverse-audience social networking portfolio, which includes the flagship product HeeSay, has also seen steady development through enhanced user lifecycle management and community-building initiatives like HeeSay GALA and HeeCares.

This global push is being coordinated from the company's new global headquarters, officially established in Hong Kong in June 2025. This hub works in concert with global R&D and operations centers to drive continued overseas expansion.

Diversification Creates New Pillars of Growth

Beyond its core social networking business, Newborn Town is successfully cultivating a "second growth curve" through strategic diversification. Its innovative businesses segment, which includes quality games and social e-commerce, is rapidly becoming a significant contributor to the company's overall success.

For 2025, revenue from this segment is projected to be between RMB730 million and RMB770 million, reflecting a remarkable year-on-year growth of 55.7% to 64.2%. The quality games business, which first began generating revenue in 2024, has now reached a profitability phase. With flagship titles transitioning into long-term operation and AI integration shortening development cycles, this division is providing a stable and growing profit stream.

The company is also making significant strides in social e-commerce. Its Heer Health platform has solidified its position in the sexual health services field. In a notable 2025 initiative, Heer Health expanded its product portfolio and collaborated with insurance and pharmaceutical firms to launch China's first critical illness insurance product specifically for people living with HIV, showcasing an innovative approach that blends commercial activity with social responsibility.

Wall Street Takes Notice as Market Recognition Soars

Newborn Town's strong financial performance and strategic execution have not gone unnoticed by the financial community. The company is gaining significant traction in capital markets, a trend highlighted by its inclusion in the Hang Seng Composite Index on February 13, 2026. This milestone reflects growing market recognition of its business growth and investment value, and it makes the stock eligible for inclusion in tracker funds.

Analysts have taken a largely positive stance, with a general "Buy" consensus recommendation and CICC initiating coverage with an "Outperform" rating. The company's management has also demonstrated strong confidence in its future, executing share repurchases totaling approximately HK$260 million during 2025. The Board stated the buyback reflects its confidence in the company's long-term prospects and is intended to enhance shareholder value.

Looking ahead, the inclusion in the Hang Seng index opens the door for potential eligibility for the Stock Connect program. Such a development would allow mainland Chinese investors to trade Newborn Town's shares, which could significantly enhance the stock's liquidity, market visibility, and overall valuation. This prospect, combined with its proven AI-driven growth model and successful diversification, positions Newborn Town as a formidable and evolving player in the global technology landscape.