Reported Earnings • Apr 29
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: CN¥0.36 (up from CN¥0.21 in FY 2024). Revenue: CN¥6.89b (up 35% from FY 2024). Net income: CN¥934.5m (up 95% from FY 2024). Profit margin: 14% (up from 9.4% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.2%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Interactive Media and Services industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 74% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 20
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$10.22, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Interactive Media and Services industry in Hong Kong. Total returns to shareholders of 555% over the past three years. Announcement • Mar 27
Newborn Town Inc. (SEHK:9911) announces an Equity Buyback for HKD 300 million worth of its shares. Newborn Town Inc. (SEHK:9911) announces a share repurchase program. Under the program, the company will repurchase up to HKD 300 million worth of its shares. The repurchased shares will be held as treasury shares and are intended to be used for the Company’s share incentive schemes for employees; and/or to be cancelled directly in accordance with applicable laws, regulations and the Listing Rules. The funds for repurchase will be sourced from the Company’s distributable profits and internal funds. The program will be valid for 12 months. Reported Earnings • Mar 27
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: CN¥0.74 (up from CN¥0.42 in FY 2024). Revenue: CN¥6.89b (up 35% from FY 2024). Net income: CN¥934.5m (up 95% from FY 2024). Profit margin: 14% (up from 9.4% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.2%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Interactive Media and Services industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has increased by 69% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 27
Newborn Town Inc., Annual General Meeting, May 21, 2026 Newborn Town Inc., Annual General Meeting, May 21, 2026. New Risk • Mar 11
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 9.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to HK$11.07, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 11x in the Interactive Media and Services industry in Hong Kong. Total returns to shareholders of 628% over the past three years. Announcement • Mar 02
Newborn Town Inc. to Report Fiscal Year 2025 Results on Mar 26, 2026 Newborn Town Inc. announced that they will report fiscal year 2025 results at 4:00 PM, China Standard Time on Mar 26, 2026 Valuation Update With 7 Day Price Move • Feb 06
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to HK$9.76, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 14x in the Interactive Media and Services industry in Hong Kong. Total returns to shareholders of 393% over the past three years. Valuation Update With 7 Day Price Move • Dec 17
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to HK$11.02, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Interactive Media and Services industry in Hong Kong. Total returns to shareholders of 516% over the past three years. Reported Earnings • Aug 31
First half 2025 earnings released: EPS: CN¥0.39 (vs CN¥0.20 in 1H 2024) First half 2025 results: EPS: CN¥0.39 (up from CN¥0.20 in 1H 2024). Revenue: CN¥3.18b (up 40% from 1H 2024). Net income: CN¥489.3m (up 118% from 1H 2024). Profit margin: 15% (up from 9.9% in 1H 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 9.0% growth forecast for the Interactive Media and Services industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has increased by 81% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 29
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to HK$12.31, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 15x in the Interactive Media and Services industry in Hong Kong. Total returns to shareholders of 489% over the past three years. Announcement • Aug 18
Newborn Town Inc. to Report First Half, 2025 Results on Aug 28, 2025 Newborn Town Inc. announced that they will report first half, 2025 results on Aug 28, 2025 New Risk • Jul 05
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 15% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Profit margins are more than 30% lower than last year (9.4% net profit margin). Shareholders have been diluted in the past year (15% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jun 12
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to HK$11.06, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the Interactive Media and Services industry in Hong Kong. Total returns to shareholders of 279% over the past three years. Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to HK$8.17, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Interactive Media and Services industry in Hong Kong. Total returns to shareholders of 183% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$16.06 per share. Reported Earnings • Apr 24
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: CN¥0.42 (down from CN¥0.45 in FY 2023). Revenue: CN¥5.09b (up 54% from FY 2023). Net income: CN¥480.3m (down 6.3% from FY 2023). Profit margin: 9.4% (down from 16% in FY 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) also surpassed analyst estimates by 2.4%. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Interactive Media and Services industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Apr 08
Consensus EPS estimates increase by 13% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from CN¥0.581 to CN¥0.654. Revenue forecast steady at CN¥6.33b. Net income forecast to grow 98% next year vs 15% growth forecast for Interactive Media and Services industry in Hong Kong. Consensus price target up from HK$6.24 to HK$7.57. Share price fell 17% to HK$5.07 over the past week. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$4.95, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 14x in the Interactive Media and Services industry in Hong Kong. Total returns to shareholders of 62% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$8.11 per share. Major Estimate Revision • Mar 28
Consensus revenue estimates increase by 13% The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from CN¥5.59b to CN¥6.30b. EPS estimate unchanged from CN¥0.58 at last update. Interactive Media and Services industry in Hong Kong expected to see average net income growth of 16% next year. Consensus price target up from HK$5.94 to HK$6.28. Share price rose 4.6% to HK$5.96 over the past week. Announcement • Mar 21
Newborn Town Inc., Annual General Meeting, May 21, 2025 Newborn Town Inc., Annual General Meeting, May 21, 2025. Reported Earnings • Mar 21
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: CN¥0.42 (down from CN¥0.45 in FY 2023). Revenue: CN¥5.09b (up 54% from FY 2023). Net income: CN¥480.3m (down 6.3% from FY 2023). Profit margin: 9.4% (down from 16% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.4%. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the Interactive Media and Services industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 95% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Announcement • Mar 07
Newborn Town Inc. to Report Fiscal Year 2024 Results on Mar 20, 2025 Newborn Town Inc. announced that they will report fiscal year 2024 results on Mar 20, 2025 Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$5.40, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 19x in the Interactive Media and Services industry in Hong Kong. Total returns to shareholders of 43% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$7.27 per share. Announcement • Jan 21
Newborn Town Inc. Provides Earnings Guidance for the Year 2024 Newborn Town Inc. provided earnings guidance for the year 2024. For the year, 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. New Risk • Jan 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Large one-off items impacting financial results. Shareholders have been diluted in the past year (21% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to HK$4.65, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 10x in the Interactive Media and Services industry in Hong Kong. Total returns to shareholders of 12% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$7.87 per share. New Risk • Jan 03
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 21% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (21% increase in shares outstanding). Announcement • Dec 28
Newborn Town Inc. Announces Board and Committee Changes The board of directors of Newborn Town Inc. announced that Mr. HUANG Sichen (‘Mr. HUANG’) has tendered his resignation in respect of his position as an independent non-executive Director of the Company, the chairman of the remuneration committee (the ‘Remuneration Committee’) and a member of each of the audit committee (the ‘Audit Committee’) and the nomination committee (the ‘Nomination Committee’) of the Board with effect from 27 December 2024, to pursue other career development opportunities. Mr. HUANG has confirmed that he has no disagreement with the Board and there are no other matters relating to his resignation that need to be brought to the attention of The Stock Exchange of Hong Kong Limited (the ‘Stock Exchange’) and the shareholders of the Company. The Board announced that Ms. CHEN Sichao (‘Ms. CHEN’) has been appointed as an independent non-executive Director of the Company with effect from 27 December 2024. Ms. CHEN Sichao, aged 42, possesses nearly two decades of experience in the capital markets. She has comprehensive expertise in derivatives trading, structured product design, and marketing, with a deep-rooted interest in cutting-edge technologies, and having accumulated extensive investment experience. From November 2005 to September 2007, she served as FX (Foreign Exchange) Trader at the Global Finance Department of the Bank of Communications Headquarters. Subsequently, from November 2007 to December 2008, she held the position of Product Manager at the Head Office of Bank of East Asia. Between December 2008 and July 2010, she was an Associate Director at the China Headquarters of Crédit Agricole, responsible for serving key corporate and financial institution clients in East China. From July 2010 to June 2013, Ms. CHEN served as the Chairperson of Yisi Art Co. Ltd., which is in the business of luxury collections, being in charge of its overall operations and strategic planning. Since June 2013, Ms. CHEN has been a Managing Partner at Spark Land Capital, a Silicon Valley-based fund, specialising in fund management and investments in innovative technologies. Ms. CHEN holds a bachelor's degree in Engineering from Zhejiang University in the PRC in 2004, while she obtained a Master of Science degree from the University of Warwick in the United Kingdom in 2005. She was then conferred a Master of Business Administration degree by Cheung Kong Graduate School of Business in the PRC in 2013. The Board is announced that Ms. CHEN will take over the positions of the Board committees which were previously held by Mr. HUANG. The Board is announced that, upon the above changes, the positions held by each member of the Board in the committees of the Board are as follows: Audit Committee: Mr. CHI Shujin (Chairman); Ms. CHEN Sichao; Mr. GAO Ming. Remuneration Committee: Ms. CHEN Sichao (Chairlady); Mr. SU Jian; Mr. GAO Ming. Nomination Committee: Mr. LIU Chunhe (Chairman); Ms. CHEN Sichao; Mr. CHI Shujin. Valuation Update With 7 Day Price Move • Dec 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$4.15, the stock trades at a forward P/E ratio of 10x. Average trailing P/E is 18x in the Software industry in Hong Kong. Total returns to shareholders of 6.4% over the past three years. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$3.65, the stock trades at a forward P/E ratio of 8x. Average trailing P/E is 18x in the Software industry in Hong Kong. Total loss to shareholders of 16% over the past three years. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to HK$3.22, the stock trades at a forward P/E ratio of 8x. Average trailing P/E is 17x in the Software industry in Hong Kong. Total loss to shareholders of 30% over the past three years. Valuation Update With 7 Day Price Move • Sep 24
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to HK$3.12, the stock trades at a forward P/E ratio of 7x. Average trailing P/E is 11x in the Software industry in Hong Kong. Total loss to shareholders of 30% over the past three years. Reported Earnings • Sep 01
First half 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.16 in 1H 2023) First half 2024 results: EPS: CN¥0.20 (up from CN¥0.16 in 1H 2023). Revenue: CN¥2.27b (up 65% from 1H 2023). Net income: CN¥224.7m (up 21% from 1H 2023). Profit margin: 9.9% (down from 14% in 1H 2023). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 99% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Announcement • Aug 29
Newborn Town Inc. Appoints Li Yongjie as Chief Operating Officer Newborn Town Inc. announced that the appointment of Mr. LI Yongjie ("Mr. LI") as the Chief Operating Officer of the Company with effect from 29 August 2024. Mr. LI will be responsible for coordinating and aligning work efforts across various departments and teams, and implementing strategic initiatives to improve the Company's performance and development. Mr. LI Yongjie, aged 41, has over 17 years of experience in operations and organisational development, and a track record of working in renowned global technology companies. From July 2007 to April 2010, Mr. Li is in charge of Product Verification at Guangdong Nortel Communication Equipment Co. Ltd. He then took on the roles of Wireless Product Manager, Account Manager, and Country Manager at ZTE Corporation from April 2010 to June 2016. From July 2016 to June 2017, Mr. Li served as the Country Manager of Shenzhen Yike Technology Co. Ltd. From July 2017 onwards, Mr. Li has been serving as Vice President of International Operations at NBT Social Networking Inc., gaining valuable experience therefrom in business operations and change
management. Mr. LI obtained his bachelor's degree in engineering from Shenyang University of Technology in 2005 and his master's degree in software engineering from Sun Yat-sen University in 2007. Announcement • Aug 20
Newborn Town Inc. to Report First Half, 2024 Results on Aug 29, 2024 Newborn Town Inc. announced that they will report first half, 2024 results on Aug 29, 2024 Valuation Update With 7 Day Price Move • Jul 08
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to HK$3.79, the stock trades at a forward P/E ratio of 10x. Average trailing P/E is 14x in the Software industry in Hong Kong. Total loss to shareholders of 40% over the past three years. Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to HK$4.11, the stock trades at a forward P/E ratio of 10x. Average trailing P/E is 14x in the Software industry in Hong Kong. Total loss to shareholders of 39% over the past three years. Reported Earnings • Apr 27
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: CN¥0.45 (up from CN¥0.11 in FY 2022). Revenue: CN¥3.31b (up 18% from FY 2022). Net income: CN¥512.8m (up 294% from FY 2022). Profit margin: 16% (up from 4.6% in FY 2022). Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) exceeded analyst estimates by 60%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 26
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$3.11, the stock trades at a forward P/E ratio of 8x. Average trailing P/E is 14x in the Software industry in Hong Kong. Total loss to shareholders of 56% over the past three years. Reported Earnings • Mar 23
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: CN¥0.45 (up from CN¥0.11 in FY 2022). Revenue: CN¥3.31b (up 18% from FY 2022). Net income: CN¥512.8m (up 294% from FY 2022). Profit margin: 16% (up from 4.6% in FY 2022). Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) exceeded analyst estimates by 60%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Announcement • Mar 22
Newborn Town Inc., Annual General Meeting, May 21, 2024 Newborn Town Inc., Annual General Meeting, May 21, 2024. Announcement • Mar 09
Newborn Town Inc. to Report Fiscal Year 2023 Results on Mar 21, 2024 Newborn Town Inc. announced that they will report fiscal year 2023 results on Mar 21, 2024 New Risk • Mar 07
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Hong Kong stocks, typically moving 16% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment improves as stock rises 45% After last week's 45% share price gain to HK$2.56, the stock trades at a forward P/E ratio of 8x. Average trailing P/E is 9x in the Software industry in Hong Kong. Total loss to shareholders of 31% over the past three years. Valuation Update With 7 Day Price Move • Dec 05
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to HK$1.94, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 28x in the Software industry in Asia. Total returns to shareholders of 7.2% over the past three years. New Risk • Oct 19
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 9.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Oct 05
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$2.34, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 26x in the Software industry in Asia. Total returns to shareholders of 53% over the past three years. Major Estimate Revision • Sep 28
Consensus EPS estimates increase by 24% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has improved. 2023 revenue forecast increased from CN¥3.55b to CN¥3.66b. EPS estimate increased from CN¥0.203 to CN¥0.251 per share. Net income forecast to grow 77% next year vs 43% growth forecast for Software industry in Hong Kong. Consensus price target up from HK$3.05 to HK$3.14. Share price rose 13% to HK$2.03 over the past week. Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$1.87, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 29x in the Software industry in Asia. Total returns to shareholders of 18% over the past three years. Reported Earnings • Aug 26
First half 2023 earnings released: EPS: CN¥0.16 (vs CN¥0.073 in 1H 2022) First half 2023 results: EPS: CN¥0.16 (up from CN¥0.073 in 1H 2022). Revenue: CN¥1.37b (flat on 1H 2022). Net income: CN¥185.3m (up 124% from 1H 2022). Profit margin: 14% (up from 6.0% in 1H 2022). Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Aug 15
Newborn Town Inc. to Report First Half, 2023 Results on Aug 24, 2023 Newborn Town Inc. announced that they will report first half, 2023 results on Aug 24, 2023 Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$1.69, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 28x in the Software industry in Asia. Negligible returns to shareholders over past three years. Announcement • Aug 12
Newborn Town Inc. Provides Unaudited Consolidated Earnings Guidance for Half Year Ended 30 June 2023 Newborn Town Inc. provided unaudited consolidated earnings guidance for half year ended 30 June 2023. For the period the company expects the total revenue will remain largely stable as compared to that of the corresponding period in 2022, reaching approximately RMB 1,350 million to RMB 1,400 million, representing slight fluctuations ranging from a decrease of approximately 1.7% to an increase of approximately 1.9% as compared to that of the corresponding period in 2022; and the net profit for the half year ended 30 June 2023 will be approximately RMB 280 million to RMB 320 million, representing an increase of approximately 81.8% to 107.8% as compared to that of the corresponding period in 2022; profit attributable to the owners of the Company for the half year ended 30 June 2023 will be approximately RMB 160 million to RMB 200 million, representing an increase of approximately 92.8% to 141.0% as compared to that of the corresponding period in 2022. Announcement • May 30
Newborn Town Inc., Annual General Meeting, Jun 21, 2023 Newborn Town Inc., Annual General Meeting, Jun 21, 2023, at 10:00 China Standard Time. Location: 6/F, Tower B, Xiaoyun Road 33rd Building Chaoyang District Beijing China Agenda: To consider and adopt the audited consolidated financial statements of the Company and its subsidiaries and the reports of the directors and auditor for the year ended 31 December 2022; to re-elect the following retiring directors of the Company: Mr. LIU Chunhe, as an executive Director, Mr. LI Ping, as an executive Director, Mr. YE Chunjian, as an executive Director, Mr. SU Jian, as an executive Director, Mr. GAO Ming, as an independent non-executive Director, Mr. CHI Shujin, as an independent non-executive Director, Mr. HUANG Sichen, as an independent non-executive Director; to authorise the board of Directors to fix the remuneration of the Directors; to re-appoint PricewaterhouseCoopers as auditor of the Company and authorise the Board to fix its remuneration; and to consider other matters. Valuation Update With 7 Day Price Move • May 04
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$1.81, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 32x in the Software industry in Asia. Total returns to shareholders of 12% over the past three years. Reported Earnings • May 03
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: CN¥0.11 (up from CN¥0.29 loss in FY 2021). Revenue: CN¥2.80b (up 19% from FY 2021). Net income: CN¥130.1m (up CN¥416.4m from FY 2021). Profit margin: 4.6% (up from net loss in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.0%. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 26% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 68 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 24
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: CN¥0.11 (up from CN¥0.29 loss in FY 2021). Revenue: CN¥2.80b (up 19% from FY 2021). Net income: CN¥130.1m (up CN¥416.4m from FY 2021). Profit margin: 4.6% (up from net loss in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.0%. Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 27% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 62 percentage points per year, which is a significant difference in performance. Buying Opportunity • Feb 03
Now 21% undervalued Over the last 90 days, the stock is up 62%. The fair value is estimated to be HK$2.66, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 70% over the last 3 years. Meanwhile, the company became loss making. Announcement • Jan 18
Newborn Town Inc. Provides Revenue Guidance for the Year Ended 31 December 2022 Newborn Town Inc. provided revenue guidance for the year ended 31 December 2022. For the year ended 31 December 2022, the Company's total revenue is expected to reach approximately RMB 2,770 million to RMB 2,830 million, achieving the growth target. Buying Opportunity • Jan 12
Now 25% undervalued Over the last 90 days, the stock is up 46%. The fair value is estimated to be HK$2.71, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 70% over the last 3 years. Meanwhile, the company became loss making. Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Ming Gao was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Announcement • Oct 20
Newborn Town Inc. Provides Revenue Guidance for the First Three Quarters of 2022 Newborn Town Inc. provided revenue guidance for the first three quarters of 2022. The company's revenue is expected to reach RMB 2.06 billion to RMB 2.11 billion (approx. USD 290 million) in the first three quarters, up about 25% year on year. Reported Earnings • Aug 26
First half 2022 earnings released: EPS: CN¥0.07 (vs CN¥0.037 in 1H 2021) First half 2022 results: EPS: CN¥0.07 (up from CN¥0.037 in 1H 2021). Revenue: CN¥1.37b (up 32% from 1H 2021). Net income: CN¥82.7m (up 121% from 1H 2021). Profit margin: 6.0% (up from 3.6% in 1H 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 48%, compared to a 29% growth forecast for the Software industry in Hong Kong. Announcement • Aug 16
Newborn Town Inc. to Report First Half, 2022 Results on Aug 25, 2022 Newborn Town Inc. announced that they will report first half, 2022 results on Aug 25, 2022 Announcement • Aug 03
Newborn Town Inc. Provides Earnings Guidance for the Half-Year Ended 30 June 2022 Newborn Town Inc. provided earnings guidance for the half-year ended 30 June 2022. The board of directors of the company informed the shareholders of the company and potential investors that, based on the preliminary review of the unaudited consolidated management accounts of the Group for the half-year ended 30 June 2022 and other information currently available to the Group, it is expected that, as compared to the corresponding period in 2021: total revenue for the half-year ended 30 June 2022 is expected to be approximately RMB 1,350 million to RMB 1,400 million, representing an increase of more than 30% as compared to that for the corresponding period of 2021; net profit for the half-year ended 30 June 2022 is expected to be approximately RMB 145 million to RMB 165 million, representing an increase of approximately 5% to 20% as compared to that for the corresponding period of 2021; profit attributable to the owners of the company for the half-year ended 30 June 2022 is expected to be approximately RMB 75 million to RMB 95 million, representing an increase of approximately 103% to 157% as compared to that for the corresponding period of 2021. Announcement • Jul 21
Newborn Town Inc. Provides Financial Guidance for the First Half of 2022 Newborn Town Inc. provided financial guidance for the first half of 2022. In the first half of 2022, the company's revenue is expected to reach RMB 1,350 to 1,400 million, a year-on-year growth of approximately 30%. Recent Insider Transactions • May 19
Co-Founder & Executive Chairman recently bought HK$267k worth of stock On the 16th of May, Chunhe Liu bought around 100k shares on-market at roughly HK$2.67 per share. This was the largest purchase by an insider in the last 3 months. This was Chunhe's only on-market trade for the last 12 months. Reported Earnings • Apr 28
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: CN¥0.29 loss per share (down from CN¥0.04 profit in FY 2020). Revenue: CN¥2.36b (up 100% from FY 2020). Net loss: CN¥286.3m (down CN¥326.0m from profit in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Over the next year, revenue is forecast to grow 47%, compared to a 30% growth forecast for the industry in Hong Kong. Board Change • Apr 27
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. 3 independent directors (4 non-independent directors). Co-Founder & Executive Chairman Chunhe Liu is the most experienced director on the board, commencing their role in 2018. Independent Non-Executive Director Ming Gao was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Announcement • Apr 01
Newborn Town Inc., Annual General Meeting, May 23, 2022 Newborn Town Inc., Annual General Meeting, May 23, 2022. Reported Earnings • Apr 01
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: CN¥0.29 loss per share (down from CN¥0.04 profit in FY 2020). Revenue: CN¥2.36b (up 100% from FY 2020). Net loss: CN¥286.3m (down CN¥326.0m from profit in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Over the next year, revenue is forecast to grow 47%, compared to a 30% growth forecast for the industry in Hong Kong. Announcement • Mar 23
Newborn Town Inc. to Report Fiscal Year 2021 Results on Mar 31, 2022 Newborn Town Inc. announced that they will report fiscal year 2021 results on Mar 31, 2022 Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment deteriorated over the past week After last week's 18% share price decline to HK$3.78, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 24x in the Software industry in Asia. Total returns to shareholders of 6.5% over the past year. Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment improved over the past week After last week's 15% share price gain to HK$4.60, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 26x in the Software industry in Asia. Total loss to shareholders of 50% over the past year. Announcement • Feb 06
Newborn Town Inc. has completed a Follow-on Equity Offering in the amount of HKD 350.9908 million. Newborn Town Inc. has completed a Follow-on Equity Offering in the amount of HKD 350.9908 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 92,366,000
Price\Range: HKD 3.8
Transaction Features: Subsequent Direct Listing Announcement • Jan 18
Newborn Town Inc. Provides Earnings Guidance for the Year 2021 On 16 January, Newborn Town announced its unaudited operating data and revenue information of 2021. For the past 12 months ended 31 December 2021, the Company's total revenue is estimated to reach RMB 2,300 to 2,400 million, an increase of over 95% compared with 2020. The value-added service revenue (In-app purchase revenue) presented a leapfrog rise of about 200% year-on-year, reaching RMB 2,000-2,100 million. In 2021, the Company's value-added service (mainly from its social networking products) achieved a significant breakthrough in developed markets including Europe, North America, Japan and Korea. In terms of user scale, the accumulative downloads of its social products reached 344 million as of 31 December 2021, an increase of approximately 15.38% compared with 30 September 2021. The monthly active users of the Company's social products reached approximately 21.79 million in December 2021. Reported Earnings • Sep 26
First half 2021 earnings released: EPS CN¥0.037 (vs CN¥0.003 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: CN¥1.04b (up CN¥888.1m from 1H 2020). Net income: CN¥37.4m (up CN¥34.0m from 1H 2020). Profit margin: 3.6% (up from 2.3% in 1H 2020). The increase in margin was driven by higher revenue. Reported Earnings • Aug 27
First half 2021 earnings released: EPS CN¥0.037 (vs CN¥0.003 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: CN¥1.04b (up CN¥888.1m from 1H 2020). Net income: CN¥37.4m (up CN¥34.0m from 1H 2020). Profit margin: 3.6% (up from 2.3% in 1H 2020). The increase in margin was driven by higher revenue. Executive Departure • Aug 27
Independent Non-Executive Director Xiya Pan has left the company On the 26th of August, Xiya Pan's tenure as Independent Non-Executive Director ended after 1.7 years in the role. We don't have any record of a personal shareholding under Xiya's name. A total of 3 executives have left over the last 12 months. The current median tenure of the management team is 2.25 years. Reported Earnings • Apr 17
Full year 2020 earnings released: EPS CN¥0.04 (vs CN¥0.082 in FY 2019) The company reported a decent full year result with improved revenues, although earnings and profit margins were weaker. Full year 2020 results: Revenue: CN¥1.18b (up 203% from FY 2019). Net income: CN¥39.7m (down 42% from FY 2019). Profit margin: 3.4% (down from 18% in FY 2019). The decrease in margin was driven by higher expenses. Executive Departure • Apr 08
CFO & Executive Director has left the company On the 1st of April, Kui Wang's tenure as CFO & Executive Director ended after 1.8 years in the role. We don't have any record of a personal shareholding under Kui's name. A total of 2 executives have left over the last 12 months. Executive Departure • Apr 08
Independent Non-Executive Director has left the company On the 1st of April, Rong Liu's tenure as Independent Non-Executive Director ended after 1.3 years in the role. We don't have any record of a personal shareholding under Rong's name. A total of 2 executives have left over the last 12 months. Reported Earnings • Mar 25
Full year 2020 earnings released: EPS CN¥0.04 (vs CN¥0.082 in FY 2019) The company reported a decent full year result with improved revenues, although earnings and profit margins were weaker. Full year 2020 results: Revenue: CN¥1.18b (up 203% from FY 2019). Net income: CN¥39.7m (down 42% from FY 2019). Profit margin: 3.4% (down from 18% in FY 2019). The decrease in margin was driven by higher expenses. 
