A：Since its establishment in 1999, NetDragon has gone through four stages of development. In the first stage (1999-07), as the pioneer and leader of China's independent development of online games, it successfully launched a number of self-developed national online games, such as Phantom Ranger, Conquest and Magic Domain, and accumulated a large number of users and successfully listed on the Hong Kong Stock Exchange. In the second stage (10 to 13 years), we seized the opportunity of wireless Internet business development, founded 91 wireless, the first mobile Internet application distribution platform in China, and then sold it to Baidu for rich cash returns. At the same time, we laid out the education business, such as the establishment of Chinese language education and the acquisition of overseas education and technology brand Prometheus. The third stage (16 to 25 years) realizes the two-wheel drive of games and education, becomes the exclusive technical partner of the intelligent education platform of primary and secondary schools of the Ministry of Education, splits the overseas education technology business into an independent AI listed company to AI slowly, and makes a number of strategic investments, especially in the fields of AI and cultural creation. The fourth phase (25 years to the present) is to fully embrace the AI strategy, deploy AI production centers, reshape traditional business processes and organizational structures, and promote the transformation of its projects and investment enterprises to the AI. NetDragon's vision is to become the world's leading AIGC creative organization, using its self-developed AI market center to become a global innovation leader in the fields of games, education and creative digital cultural content. In the field of games, it is committed to the long-term development of flagship IP and plans to lay out the research and development of more than 20 lightweight AI native games. In the field of education, we have made breakthroughs in product innovation and content production through the self-research AI production center, built a digital education content ecology with game-based learning as the core, and optimized overseas education and technology business in combination with AI and SaaS solutions. In Wen Chuang Track, we reached strategic cooperation with Volcano Engine under Byte Jumping, expand cooperation in animation, short dramas, live broadcasts and other pan-creative fields, and there will be more creative investment projects combined with AIGC in the future.

A：NetDragon has three evergreen flagship IPs, namely, Magic Domain, Conquest and Soul Blade, which occupy a place in the MMORPG, real-time strategy and MOBA segments respectively, especially in the field of electronic competition. The magic domain and conquest have maintained steady growth in the domestic and foreign markets, while the blade of the soul has made remarkable achievements in e-sports events by virtue of its strong competitiveness and moderate difficulty in operation. In 2025, the company's in-depth application of AI technology, research and development expenses decreased by 33% year-on-year, operating profit margin increased by 4 percentage points, AI in the game research and development of the workload accounted for 25%. In the future, it is planned to increase this proportion to 50%, reduce the size of R & D team by AI agent model, improve work efficiency, and realize fast delivery and fast development of lightweight games.

A：In the past, the team was large, the communication cost between different functions was high, and the iteration cycle was long. Now through the self-built AI creative center, production center and operation center, a fully agent-driven game R & D and production closed loop is realized, and one to three core creators can quickly iterate and polish products in units of days or even hours. The overall game AIGC strategy is dedicated to using AI to enable content production, increasing gameplay such as smart NPCs, and improving efficiency and profitability through operational model innovation.

A：This year, the company has made a comprehensive transformation. The research and development of traditional games has been upgraded to a AI native game research and development mode with 1 to 3 core creators as the core. It is expected that at least 10 AI games will be explored this year, covering light content but high commercial efficiency racetracks such as Sanxiao synthesis and rock light. At the same time, the company will try to combine games with other casual games and plan to use AI technologies to revive and AI historical classic IP.

A：The overseas business has been spun off. The global K12 classroom interactive display leader represented by Prometheus provides hardware and software interactive teaching and collaboration solutions, and has achieved significant market share and won honors in the global developed country market. The company also helped overseas education and technology subsidiaries to achieve AI upgrades. The proportion of SARS revenue has increased significantly in 25 years. It is expected to double in 26 years. The installation penetration rate of new generation products will continue to increase. In addition, the company acquired a number of AI applications in the leading educational technology sector of the North American market to expand the SARS matrix.

A：The company has fully applied the AI production center to greatly improve the production efficiency of educational AI content and reduce production costs. For example, a 45-minute AI interactive class takes only a few tens of minutes to produce, with a marginal cost of several hundred yuan. In the domestic and overseas markets, through national-level AI projects such as the National Wisdom Education Platform to accumulate experience and technical advantages, commercialize AI textbooks, courseware, and interactive educational games, services include Thailand, Africa and other places, and actively expand business Model and seek cooperation support from the World Bank.

A：In the field of cultural creation, the company mainly has its own development team and has achieved remarkable results in games and education. At the same time, it signed a framework agreement on AI ecology and joint innovation with Volcano Engine. With the help of computing power and model support, it took the lead in accessing Class C 2.0 among AIGC creative enterprises. It invested in excellent enterprises such as Shuaiku Network and Animation IP. It plans to expand to AIGC comic drama, AIVR network performance, AIGC animation and short drama and other fields to tap more investment opportunities and empower network enterprise groups through computing power and AIGC technology, create new value points for investors.

A：The company invested in Hangzhou Shuaiku in June 2003 and currently holds 46% of the shares. Shuaiku has achieved rapid growth from the end of 2003 to 24 and 25 years, becoming a first-mover and leading enterprise in the field of short video live broadcast, and has been strongly supported by the tremolo platform. At double eleven last year, Shake Sound Mall also invited Shuai Cool's performance team to perform live, driving the rapid growth of the total live stream and contributing tens of millions of net profits to the company's network alliance.

A：The company led the investment of rock (rock)20 million US dollars at the end of 2003. At present, the shipment volume of the company's new generation products is growing rapidly. It is expected that the IPO may be in Hong Kong in the third and fourth quarters of this year, which may bring investment income to the company.

A：Innovations is a third-party mobile application development enterprise in Hong Kong. It occupies an absolute monopoly position in Hong Kong's large B- end and G-end customer markets, and many well-known commercial APPs are developed by it. The company is promoting the transformation of innovative thinking to an international AI solution service provider, introducing Chinese science and technology as a large model partner, and plans to deepen strategic cooperation after the listing of Chinese science and technology. Innovative thinking has been transformed into the exclusive technical partner of large models and AI products of Chinese science and technology in Hong Kong and Macao markets and future overseas markets, and released three overseas AI products in August last year.

A：The company has made progress in the research and development of the digital human AI interaction system, which has recently been rated as a typical case of the national meta-universe, and is expected to be able to invest in some cultural and creative enterprises and other fields such as education, games, enterprise services, etc. In addition, the AI production line used in the company has been closely integrated with the AI agent, and it is expected that the product will be introduced to the external market at the right time. Since its listing in 2007, the company has continued to pay dividends, with regular semi-annual dividends without interruption and special dividends arranged for specific periods. For example, special dividends were paid after the sale of 91 to Baidu and when the overseas education business was spun off. In the future, the Company is committed to increasing its dividend payout ratio and shareholder return to ensure stable shareholder returns. As of the end of August 25, the cumulative shareholder return has reached HK $0.6 billion, and the shareholder return is not expected to be less than HK $0.6 billion in 26 years, while considering share repurchase and additional income sharing.

A：The strong profit margin and cash flow of the main business, the operating profit of more than 0.9 billion yuan in the game and application services business in 25 years, and the total net cash and liquidity investment of about 2 billion billion yuan, all ensure that high shareholder returns can be maintained in the future.

A：Overseas subsidiaries are currently experiencing industry challenges, but the first quarter showed a pick-up trend compared to the fourth quarter, and are expected to reach break-even in 26 years, mainly due to market recovery, continued cost optimization and the use of AI services to enhance the attractiveness of SaaS services. In the gaming business, we will continue to drive our AI strategy to ensure that infrastructure IP continues to grow over the long term, with new games planning to grow at scale through native approaches.

A：The company's strategic positioning is AIGC creative organization, games and education in the production side has a high commonality, especially with the help of AI technology, resources and skills can be reused. The company will use AI technology to improve the efficiency and productivity of its games and education business around AIGC. Although AI technology makes production capacity more decentralized, the success of product commercialization still depends on the integration capacity of mature large or medium-scale factories. With its long-term accumulation in the commercialization and scale of digital cultural content, the company has a clear advantage over small teams.

A：Corporate dividends and strategic investments do not take up too much energy from the core team because they are essentially a matter of arranging the capital structure of the enterprise. The company has an annual cash flow of about 1 billion yuan, 0.5 billion of which will be distributed to shareholders. The rest will be used for projects such as cutting-edge investment, IP linkage, short video and live broadcast technology promotion. At the same time, it will also share AI capabilities with network enterprises to enhance the competitiveness of the whole group.

A：In the past few years (22, 23, 24), the company's R & D investment was roughly about 1.2 billion, but in 25 years, R & D investment has declined. The Company's cash flow, net of R & D investment, will pay dividends and invest the remaining funds in projects, stocks, funds and wealth management to maintain a steady growth in net cash and investments and hope to achieve additional investment income.