HONG KONG, August 26th, 2021 / PRNewswire / – Newborn Town (9911.HK), the world’s largest social networking company in China, gave his interim results on. known August 25, 2021. With the rapid development of social networking products, the group recorded significant sales and profit growth. In particular, sales from the value-added service business grew significantly.
Newborn Town also announced the change of Chief Executive Officer (CEO). Mr. Li ping, the former President, has been named the Group’s new CEO. Mr. Liu Chunhe, the chairman, will focus on the group’s strategies, organizational structure and social value to continue to create greater and longer-term value for the company’s development.
1H 2021 sales over 1 billion RMB and net profit increased 40 times
Newborn Town’s report shows that the company’s total sales have been met 1.04 billion RMB for the six months to end June 30th 2021, which corresponds to an almost 6-fold growth compared to the previous year, of which the turnover from the value-added service business is around. reached 0.82 billion RMB, which corresponds to a growth of over 50 times compared to the previous year and accounted for 79.1% of total sales.
The company’s annual surplus reached approx RMB 0.14 billionwhich is an increase of 40x year over year, while adjusted EBITDA is almost 8 times year over year. has risen RMB 0.18 billion.
During the first half of the year, the company increased investment in product research and development, expanded its R&D team to 276 members, and R&D expenses almost quadrupled year over year. In the meantime, the group’s operational efficiency has improved significantly, resulting in a turnover of per employee 2.02 million RMB.
The significant growth in sales and earnings was driven by the rapid development of the social networking business. In the first half of 2021, the average number of monthly active users (MAU) of the company’s social products reached 17.41 million, an increase of 38% over the second half of 2020. Continuous increase in the average revenue per user (ARPU) of social Networking products.
The story goes on
Social products enjoy great acceptance worldwide and significant growth in developed markets
In the past two years, Newborn Town has been actively expanding into developed markets. In the first half of the year, its social products grew in developed markets such as Europe, North America, Japan and South Korea with continuous increase in utility.
The flagship product MICO is among the top 5 top-selling social applications in Canada, Sweden, Switzerland, Belgium, Portugal and other developed countries. Additionally, the social voice chat product YoHo has also made it onto the list of the top 10 top-selling social apps in the United States. France and other European and North American countries. These remarkable results have demonstrated the strong competitiveness of the Group’s social products in developed markets.
Co-Founder and Past President Mr. Li Ping appointed as new CEO
On August 25, the Newborn Town Board of Directors appointed Mr. Li ping as the new CEO with full responsibility for running the company. And Mr. Liu Chunhe, who has resigned as CEO of the group, will continue to serve as chairman, focusing on the group’s strategies, organizational structure and social value to continue to create greater and longer-term value for the company’s development.
Mr. Li ping joined Newborn Town in 2011 and is a co-founder of the company. Prior to that, he held several positions including Chief Operating Officer (COO) and President of the company.
He has a thorough understanding of the global internet market and is experienced in product development, operations and market expansion. It was once selected as “Forbes 30 Under 30 Asia” and “Hurun China Under 30s To Watch”.
In 2013 Mr. Li ping Led the design and development of the company’s first global product, Solo Launcher, which quickly garnered more than 100 million users. The development team has been certified by Google as a “Global Top Developer”. In 2015 Mr. Li ping created and patented the Shuffle advertising model, which started a new trend in the industry.
Over the years, Mr. Li ping has led Newborn Town in its expansion into the world market, developing dozens of epic social and gaming products, establishing the AI engine and user scenario engine, and creating the global traffic ecosystem, resulting in the group’s continued business contributed to growth.
With a view to the future, he will be fully responsible for the management of the group and lead the group to more success and faster development.
Focus on scaling up for massive growth
During the presentation of the interim results on 26. Li ping said the company is eager to expand its business and continue to increase investments for comprehensive growth.
In terms of product planning, the company will continue to dig deep into the open social networking sector and strategically focus on the development of video and audio products. The company will optimize core products and improve longevity and retention, which will drive massive growth in user base, revenue and profits.
In terms of market development, the company will continue to expand into developed markets and put additional resources into doing business North America, Europe, Japan and South Koreato expand the user base and product popularity. The group will also strive to open up additional potential markets to further improve its global layout of its social networking business.
The company will seek to capitalize on the demographic dividend of young generations worldwide, with a niche focus on young people like Generation Z, as well as researching new technologies and business models.
All in all, Newborn Town saw rapid growth in the first half of the year with breakthroughs in revenue, net income and user base. As the company continues to improve its strategic planning for long-term development and investment, sustained, rapid and extensive growth in business size can be expected.
Cision
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SOURCE Newborn Town Inc.
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