Newborn Town Inc. Issues Significant Profit Alert for FY2025 on Strong AI-driven Growth

Key Financial Highlights

• Substantial Revenue Growth: Newborn Town Inc. expects total revenue for the year ended 31 December 2025 to reach approximately RMB 6,760 million to RMB 7,000 million. This represents a robust increase of 32.8% to 37.5% compared to the previous year.
• Soaring Profits: The profit attributable to equity shareholders is projected to be in the range of RMB 900 million to RMB 940 million, marking a substantial year-on-year increase of 87.5% to 95.8%.
• Improved Adjusted EBITDA: The company anticipates adjusted EBITDA of RMB 1,180 million to RMB 1,220 million, an increase of 22.5% to 26.7% over 2024.

Drivers of Financial Performance

The management attributes these outstanding results primarily to the deepening application and optimisation of AI technology across the entire business chain. The company has also benefited from the sustained and steady growth of its diversified social products, which have been significantly enhanced by the use of AI.

Additionally, the completion of the acquisition of non-controlling interests in NBT Social Networking Inc. in December 2024 has further strengthened the company’s financial position and contributed to the sharp increase in profit attributable to shareholders.

Other Information and Cautions

• The financial figures disclosed are based on unaudited consolidated management accounts and other information currently available to the board. The actual audited results may differ from these estimates.
• The final results for FY2025 are expected to be published by the end of March 2026.
• Shareholders and investors are advised to exercise caution when dealing in the company’s shares, given that this announcement contains inside information that could materially affect the share price.

Potential Share Price Impact

The strong double-digit growth in both revenue and profitability, combined with the strategic acquisition and successful AI integration, are highly price-sensitive developments. These results signal that Newborn Town Inc. is entering a new phase of accelerated growth and profitability, underpinned by technology-driven innovation. Investors should closely monitor further disclosures as the audited results are finalized.

Management Statement

The announcement is issued by Mr. Liu Chunhe, Chairman of the Board, on behalf of the company. The company’s executive directors include Mr. Liu Chunhe, Mr. Li Ping, Mr. Ye Chunjian, and Mr. Su Jian, with independent non-executive directors Mr. Chen Yuyu, Mr. Chi Shujin, and Ms. Chen Sichao.

Disclaimer: This article is based on a profit alert announcement and unaudited management accounts from Newborn Town Inc. Actual results may differ once audited financials are released. Investors should exercise caution and not base investment decisions solely on this preliminary information.

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