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 ended 31 March 2025, the company’s total revenue is estimated to reach RMB 1,500 million to RMB 1,570 million, reflecting a year-on-year increase of approximately 41.5% to 48.1%. Revenue from social networking business amounted to approximately RMB 1,345 million to RMB 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 approximately RMB 155 million to RMB 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 from January 1 to March 31, 2025, SUGO and TopTop respectively ranked 9th and 14th in the social apps category on the App Store’s revenue rankings for the Middle East.
The company’s diverse-audience social networking business also 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 as Southeast Asia. Sensor Tower’s data indicates that HeeSay ranked among the top 20 social apps by revenue on Google Play in Southeast Asia during the first quarter of 2025.
Innovative Business: Quality Games Propel Revenue Growth, 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. On March 20, 2025, the company announced plans to allocate up to HKD 200 million over 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 on December 13, 2024, underscoring the company’s strong confidence in its business expansion potential.
According to an announcement on April 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 the Middle East while expanding globally to create more positive emotional value for users.