Newborn Town releases its 2022 Interim Results; Breakthrough in core social networking business, accelerated diversified growth – QNT Press Release

HONG KONG, Aug 30, 2022 – (ACN Newswire) – On August 25, Newborn Town Inc. (9911.HK) released its 2022 interim results. For the half ended June 30, the Company’s total revenue reached RMB 1,374 million, up 32.3 % YoY; adjusted EBITDA reached RMB 210 million, up 19.5% YoY; profit attributable to the owner of the Company reached RMB 83 million, up 121.3% YoY.

The Company’s successful model of social networking business continues to be replicated around the world. Its social networking revenue reached RMB 1,266 million, a growth of 52.4% YoY, indicating a steady breakthrough in the core business. At the same time, with the smooth progress of refined games, the Company’s revenue from its innovative businesses totaled RMB 108 million, a rise of 91.7% compared to H2 2021, marking an accelerated diversified development.

– ‘Replication in Products’ + ‘Replication in Markets’ showing social networking products spread globally

Newborn Town has long focused on global open social networking, and has built an audio and video social networking product matrix, including MICO, an open social platform, YoHo, an audio-based social product, and Yumy, a video-matching social product. As of June 30, the Company’s social products had accumulated 419 million downloads. Average MAUs (monthly active users) in the second quarter reached 23.09 million, representing an increase of 27% YoY.

With years of experience in exploring global markets as well as audio and video technology, Newborn Town has distilled a “replicable” model for its social networking business.

In terms of the products, the Company has accumulated successful experiences and applied those to new products, so as to promote fast growth and to expand their commercialization space. For instance, launched last year, Yumy has seen gross profit and become one of the top 10 best-selling social networking apps in 50 countries/regions after continuous optimization of its business model. It is a typical case of “Replication in Products”.

In terms of markets, Newborn Town landed in new markets rapidly while consolidating its leading position in the markets where the Company has established a competitive edge. By now, YoHo, the product which started from the MENA region, has been successfully replicated in the market …