Newborn Town Inc.(SEHK:9911) Announced Unaudited Revenue Growth of over 50% in 2024, with Business Growth Fueled by AI Technology

 

[Hong Kong – 20 Jan 2025] Newborn Town Inc., a leading global social entertainment company (Newborn Town or the company, stock code: SEHK 9911 ), released its unaudited operating data for 2024, with total revenue expecting to reach RMB 4,960 million to RMB 5,200 million, reflecting a year-on-year increase of approximately 50.0% to 57.2%. The social networking business achieved accelerated growth, with the revenue reaching about RMB 4,520 million to RMB 4,720 million, highlighting an increase of approximately 54.3% to 61.1% year-on-year. The innovative business saw a year-on-year growth of about 16.1% to 26.6%, as the revenue recorded approximately RMB 440 million to RMB 480 million.

 

According to the announcement, the growth in social networking business revenue was attributable to the rapid expansion of social apps fueled by AI technology, along with the consolidation of the financials from BlueCity after acquisition. Meanwhile, the growth of the innovative business was contributed by the quality games and social e-commerce business.

 

Global Social Entertainment Market Growth Accelerated by AI Technology

 

Newborn Town focuses on the pan-audience social networking business by deeply exploring target markets and driving product innovation, resulting in a thriving "bush-like" portfolio of social apps centered around MICO, YoHo, TopTop, and SUGO.

 

In addition, the integration of AI technology in business has been gradually deepened, leading to enhanced efficiency across research and development, operations, marketing, and advertising of the company’s social business. Newborn Town’s social networking business is transitioning to a high-quality growth model driven by product innovation, operational excellence, and sustainable growth, which focuses on comprehensive enhancements in user scale, revenue scale, and growth quality.

 

SUGO Achieved Remarkable Growth of Over 200% Year-on-year in Revenue

 

In 2024, Newborn Town recorded a record high in revenue, with a significant year-on-year growth. The achievement was driven by the strong performance of its diverse social app portfolio. Building on the stable contribution of revenue and profits from existing products, the newly launched products have achieved rapid growth. In particular, SUGO achieved the highest monthly recharge revenue in July, with its revenue growth exceeding 200% in 2024.

 

SUGO has experienced remarkable growth, thanks to its advanced social network recommendation mechanism powered by a deep learning model. Coupled with a commercialized framework built on precise user behavior analysis, the app has demonstrated exceptional market adaptability and commercialization efficiency since its launch. This has led to SUGO's explosive growth in 2024, making it the company's second social app with over USD 10 million in monthly recharge, following the success of MICO. The statistics from data.ai show that this promising app has consistently ranked among the best-selling social apps in Saudi Arabia, Turkey, the UAE, and several other countries over the past year.

 

Benefiting from the deep-rooted localization strength, tailored market strategies, and refined product operations targeting different users, Newborn Town has achieved steady growth in key markets like MENA and SEA with breakthroughs in markets such as Turkey, Japan, South Korea, Europe, and the United States.

 

HeeSay , the LGBTQ+ online community as an example, has further strengthened its global brand influence through user-centered theme events like LivelyLaugh, HeeSay Gala worldwide. It was recognized as the "10 Most Innovative Queer Dating Apps for 2024" by overseas media.

 

Currently, the social product portfolio is experiencing a thriving trend across global markets. Remarkably, the driving effects of its AI initiatives have begun to emerge. With the growth model of "social matrix + AI engine," it is expected to continue expanding its technology-driven impact and uncover greater value in the global social landscape.

 

Localization Efforts Intensified as Expansion in MENA Markets Continues

 

As one of the frontrunners in the Middle East's social entertainment sector, Newborn Town has spent many years establishing a strong foothold in the region. With a focused localization strategy and an expanding user base, the company has developed significant competitive advantages, reinforcing its role as a market leader.

 

In 2024, Newborn Town has continued to strengthen its localization advantages, deepening its presence and capitalizing on the growth potential within the MENA region, ensuring sustained success as it continues to penetrate this strategic market.

 

The MENA market has become a fertile ground for the company to cultivate blockbuster products, with several apps ranking among the top local downloads. TopTop, the game-oriented social app that gained widespread popularity in the region , achieved revenue growth of over 100% in 2024. This success was attributable to TopTop's strategic focus on enhancing user experience and its refined operational strategy designed to engage local audiences.

 

In addition, Newborn Town's flagship social apps—MICO, YoHo, and SUGO—remain dominant in the MENA market. Notably, SUGO has consistently secured the #1 spot in the social networking category by revenue. According to Sensor Tower's previous revenue rankings for social networking apps in the MENA region, four of Newborn Town's flagship apps ranked among the top 10, underscoring the company's strong market presence and sustained performance in the region.

 

Through multiple-themed market events and continuous updates to products and services, Newborn Town has further solidified its localization advantages. A key milestone in this effort came in 2024 when the company was granted the Regional Headquarters License by Saudi Arabia's Ministry of Investment (MISA). On September 26th, Newborn Town and MISA co-hosted the celebration event in Riyadh under the theme 'To Connect, Explore, and Thrive Together,' jointly discussing the outlook behind the region's booming online social entertainment industry.

 

Quality Games Business Contributed to Revenue Growth, Entering Profitability Phase

 

Newborn Town's innovative business also experienced robust growth, driven by the continued rapid expansion of its social e-commerce segment and revenue contribution of quality games. Notably, the company's self-developed quality games, published by external teams, generated approximately RMB 705 million in recharge - an impressive increase of about 80.4% compared to 2023. This marks a key milestone for Newborn Town, as the quality games business has officially entered a profitability phase, contributing revenue to the company for the first time.

 

Fueled by the ongoing integration of AI technology across its business processes, Newborn Town has continued to make strides in the quality games sector. Among its standout titles, Alice's Dream: Merge Games had performed exceptionally well, consistently ranking among top-performing games as evaluated by leading data analytics organizations.

 

Following its strong performance in global market expansion, this flagship title of Newborn Town has earned numerous accolades and also forged a deep partnership with the technology company AppLovin. This collaboration aimed to leverage AI-driven solutions to enhance precision in customer acquisition efforts, further solidifying the game's reputation as a benchmark in the industry.

 

The revenue contributions from its quality games business have signaled the company's successful efforts in this sector. These results validate the promising potential of its global expansion strategy for quality games. With ongoing advancements in the integration of AI technologies across all stages of game development and operations, Newborn Town is poised to cement its second growth curve.
 

In 2024, Newborn Town demonstrated remarkable growth in its global competitiveness, rising to the 4th place on Diandian's ranking of non-game Chinese publishers based on overseas revenue in December. Reaffirming its confidence in its business outlook, Newborn Town has repurchased 67,934,000 shares from the beginning of 2024 to January 19, 2025, amounting to over HK$230 million. Looking ahead, Newborn Town will continue to prioritize its growth in the MENA region while maintaining its global expansion strategy so as to create positive emotional values for users worldwide.

 

About Newborn Town 

Newborn Town has grown into a leading technology company which was listed on the Main Board of the Hong Kong Stock Exchange (HKEX) in 2019 under the stock code 9911. 

Committed to creating positive emotional values worldwide, Newborn Town has developed a diverse portfolio of applications in the social networking and entertainment sectors. Its social apps include MICO, YoHo, TopTop, SUGO and HeeSay, together with gaming products like Alice's Dream: Merge Games. These applications have achieved widespread acclaim, reaching over one billion users in over one hundred countries and regions.Newborn Town considers the Middle East and North Africa (MENA) region a key market and has also extended its influence in Southeast Asia, Europe, the United States, Japan, and South Korea. The company aims to become the world's largest social entertainment company. 

 

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