HONG KONG, July 22, 2026 /PRNewswire/ -- Newborn Town, a leading global social entertainment company, released its unaudited operating data for the first half of 2026.

For the six months ended 30 June 2026, the company's total revenue is estimated to reach US$595 million to US$615 million, representing a year‑on‑year increase of approximately 34.3% to 38.8%, continuing a strong growth momentum. Revenue from social networking business amounted to approximately US$530 million to US$545 million, representing a year-on-year increase of approximately 34.2% to 38.0%. Revenue from innovative business recorded approximately US$65 million to US$70 million, representing a year-on-year increase of approximately 35.4% to 45.8%. This is the first time the company has presented its operating data in United States dollar.

Rapid Growth in Social Networking Business as Flagship Products Expand Globally

According to the announcement, revenue from social networking business continued to grow, mainly driven by the company's ongoing global expansion and full‑chain AI applications, supporting the steady growth of its flagship products.

Since the beginning of the year, the company has continued to expand its global footprint around its core social networking business, maintaining its leading position in various markets such as MENA and Southeast Asia, while accelerating expansion into high-growth and high-value markets including Latin America, Japan, South Korea, Europe and the United States, further reinforcing its position as a leading player in the global social entertainment industry.

The company's flagship products have made positive progress in new market expansion. TopTop continues to leverage its UGC ecosystem advantage, becoming a household-name app in GCC markets such as Saudi Arabia, and ranking among the top in its category globally. With continually improved product quality and deeper local operations, TopTop made significant progress in high‑value markets such as Japan and Europe. It also entered the iOS Top 10 free casual games in Japan for multiple times during the first half of the year, according to DianDian Data.

The company's diverse-audience social networking business also maintained steady growth. HeeSay, its global community platform, continued to strengthen its presence in Southeast Asia, consistently ranking among the Top 10 in social app in countries including Vietnam and the Philippines.

A recent research report noted that Newborn Town's core competitive moat lies in its highly localized and operation‑intensive barriers, its monetization model centered on social spending, and its ability to diversify risk through a "bush-like" portfolio of social apps. Together, these strengths form a differentiated advantage that is difficult for competitors to replicate in the short term.

AI Advancements Fuel Strong Momentum Across Innovation Business

The company's innovative business delivered strong growth momentum in the first half of the year, primarily driven by the rapid expansion of its short drama business, supported by AI-powered content production and operations.

In the first half of the year, the company steadily advanced its short drama business across multiple global markets, including Europe and the United States, while accelerating the integration of AI technology into short drama production. Playlet, its short-form drama app, continued to broaden its presence in high‑value markets such as the United States, Japan and South Korea, achieving significant growth in its user base. Earlier this year, Playlet became one of the first partner platforms to integrate Seedance 2.0.

According to TikTok's short drama Q1 revenue report, one of the company's hit titles ranked second on the platform by first-month revenue. With AI significantly improving short drama production efficiency, Newborn Town is well positioned to capitalize on its strengths in localized operations and user acquisition, while further enriching its social entertainment content ecosystem.

The company's other innovative businesses also maintained steady progress. Its quality games maintained solid momentum, with flagship titles sustaining long-term operations and generating stable profit contributions, while the commercialization of new titles progressed smoothly. The social e-commerce business continued to deepen its presence in specialized verticals and enhance its product and service capabilities, providing further support for the growth of the innovative business.

In recent years, the company has continued to deepen the application of AI technologies across the entire business chain, spanning R&D and operations, while steadily improving its AI capabilities.

Its self-developed multimodal algorithm model, Boomiix, continues to upgrade, improving the accuracy of social matching and the intelligence of operations.  The company's Siyu AI, an internal data intelligence platform, significantly shortened turnaround times for data queries, anomaly analysis, and report generation. Its proprietary AI-powered design platform KIVI has also greatly enhanced both the efficiency and diversity of content production, including virtual gifts and marketing creatives.

Alongside strengthening its underlying AI capabilities, the company continued to expand the commercial application of AI. Aippy, an AI-powered gaming community incubated by the company, secured tens of millions of US dollars in independent financing at a post-money valuation of US$250 million. The platform has recorded nearly four million downloads worldwide, with daily active users increasing approximately sixfold since the beginning of the year and user retention ranking among the industry's strongest.

Meanwhile, NUSD Pay, the company's AI agent payment initiative, commenced commercial operations, further broadening the range of AI-powered use cases. The company also continued to expand its strategic investment portfolio across the AI sector, investing in projects spanning world models and AI-native game engines, as well as AI interactive gaming and AI-powered advertising and marketing, further strengthening its AI application ecosystem.

During the first half of the year, the company continued its share repurchase and cancellation. In March, Newborn Town announced to allocate approximately HK$ 300 million over the next two years for share repurchases. During the reporting period, the company completed two rounds of share cancellations, involving an aggregate of approximately 10.206 million repurchased shares with total consideration of approximately HK$ 85.126 million. In addition, on July 9, the company announced that it had repurchased shares from the market under the NBT Restricted Share Unit Scheme to support its long-term employee incentive program, for a total consideration of approximately HK$39.838 million.

In March, Newborn Town was officially included in the list of eligible securities under the Stock Connect, further broadening access for mainland investors. Since its inclusion, the company has seen significantly stronger market attention and trading activity, with average trading value increased about twofold compared with the three months prior to inclusion. The company's shareholder base has continued to diversify, providing a solid foundation for its stable long-term growth.