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NetDragon Websoft Holdings Limited(HKSE: 0777)

NetDragon Websoft Holdings Limited (Stock Code: 777.HK), established in 1999 and headquartered in Fuzhou, Capital of Fujian Province of China, is a world’s leading creator of online community. With leading economic indicators within the domestic industry,NetDragon is honored ‘the Key Software Enterprises under the National Planning Arrangement’, ‘National Cultural Industry Model Base’, and ‘the Key Enterprises of National Cultural Export’. Besides holding a spot on the list of “National Top 30 Cultural Enterprises” for three years in a row, the Company has ranked on “Chinese Top 100 Technology Enterprises” for five years in a row, edging herself into the Forbes Global 2000, and jumping to the 3rd place on Forbes’ “China’s Listed Potential Enterprises Top 100”. NetDragon has nearly 7,000 staff worldwide, and is named “Outstanding Employer” twice, as one of the best companies to work for in China.

The core businesses of NetDragon maintain a leading position in the market. The Company published 17173.com - China’s top online game portal, Eudemon Online and Conquer Online - the self-developed flagship games with great popularity, 91 Wireless - the world’s most influential and popular smartphone service platform, and many other brilliant products. In 2013, NetDragon announced the sale of 91 Wireless to Baidu, which marked the biggest merger and acquisition in China’s internet history at that time.

NetDragon is a prominent developer, operator and publisher of online games in China, and also the first Chinese game company that successfully expanded into overseas markets. To date, the Company has released more than 50 self-developed online games and quality mobile apps, such as Eudemon Online, Conquer Online, Heroes Evolved, and Tiger Knight, in English, French, Spanish, Arabic and other 11 kinds of languages, covering more than 180 countries, with over 65 million registered oversea users, and rising to be the largest Chinese online game operator in America, Arab and other countries. With a persistent focus on enhancing her core competence through self-dependent innovation, NetDragon has developed game engines independently, such as C3 and S3, as one of the very few companies that are able to develop a whole series of 2D, 2.5D and 3D products, and is cited as a model for public service of online games. Moreover, NetDragon introduced Virtual Reality (VR) technology to game development, and released an epochal war game, Tiger Knight VR, which immerses players deeply in the magnificent battle scenes of ancient China through the combination of action game and virtual reality. NetDragon was constantly awarded “Overseas Expansion Award for National Games”, “Top 10 Chinese Game Developers”, “Top 10 Chinese Game Operators”, “Top 10 Chinese Marketing Companies” and “Golden Plume Award” by the State Administration of Press, Publication, Radio, Film and Television, and was selected to “the Key Enterprises of National Cultural Export” by the Commerce Department. In 2016, her Heroes Evolved was named the “Best Self-developed E-sport” by the General Administration of Sport.

NetDragon has grown into a principal force in global internet and mobile internet education industry, striving to forge a high-valued online education company and promote the development and innovation of global education. With the establishment of a wholly-owned subsidiary, Elernity, NetDragon announced her aims to build the largest and the most complete service platform system for education market segments by growing hardware, software, platform and resources. At present, her education business scope covers preprimary education, basic education, higher education, vocational education, enterprise training, non-degree and life-long education. Relying on her technology and knowledge on mobile internet, the Company launched the world’s first K12 education tablet, 101 Pad. By integrating open educational cloud platform and worldwide educational resources, the Company developed “101 Smart Classroom”, which provides overall intelligent teaching and learning solutions exclusive for K12 education, and “101 Education PPT” for more convenient planning and teaching of lessons. In addition, NetDragon has cooperated with several authoritative educational institutions, including People’s Education Press (PEP), National Center for Education Technology (NCET), Beijing Normal University (BNU), Harvard University, East China Normal University and Central China Normal University, in the research and development of smart learning, and has entered into a strategic partnership with British Broadcasting Corporation (BBC), Person Education - the largest educational publisher in America, American-based National Geographic, and French-based eduMedia to integrate tons of excellent educational resources worldwide.

In recent years, NetDragon has been accelerating a global layout of education strategies. In 2015, NetDragon acquired Suzhou Chivox, a leading intelligent voice technology provider in China, to enrich her education products after integrating Chivox‘s top-rated technologies, which have unique value for speech assessment, automatic speech recognition (ASR) and language teaching. In the same year, NetDragon completed the acquisition of Promethean, a global educational giant, and successfully integrated the later educational hardware products like Whiteboard and Activtable to NetDragon’s “101 Smart Classroom”, realizing innovative blending of technologies. Through a series of strategic investment on education, NetDragon has delivered its educational services to more than 1 million classrooms, 2 million teachers and 30 million students in over 100 countries worldwide.

NetDragon has taken an early lead in the VR market, and is the first to set industrial models. In 2016, NetDragon was entrusted by the local government with the construction of China (Fujian) VR Industrial Base. This world-oriented project will cover software development, hardware production, content resources sharing, talent training, app experience, and all other businesses related to VR industry. By taking advantage of Fujian’s link role in “The Belt and Road Initiative”, NetDragon has made great contributions to shape Fuzhou into the core area of Chinese VR industry. Her focus is on integration of global resourcesin order to create a VR ecosystem in which VR/AR technologies are applied to game, education, housing and many other areas for an industrial upgrading. To further promote her VR/AR strategies, NetDragon acquired Cherrypicks Alpha, and then entered into a partnership with ARHT Media, which brought NetDragon distinctive AR technologies and provided a solid basis for seizing a significant portion of the VR/AR market. NetDragon’s VR business is blooming in many areas with dozens of products and solutions, such as 101 VR Immersion Classroom, 101 VR Maker Classroom. Her VR Editor, as the world’s first education-oriented DIY VR editing software, contains a large number of 3D materials. To their credit, NetDragon has also built the world’s largest VR experience center, which allows more people to truly feel VR’s wide prospects of application and charm, and lays the foundation of future business while spreading AR and VR knowledge.

NetDragon always adheres to the guiding influence of core socialist values in its enterprise culture, constantly creating social benefits. As one of the initiators of anti-addiction system in China, NetDragon takes an active part in the development and spread of the system in online games. The Company advocates civilized internet and the idea of health entertainment, and gives an active involvement in the construction of self-examination system proposed by the Ministry of Culture. The original animation with a theme on traditional culture, The Adventure of Afu, re-interprets of the book Di Zi Gui with a modern science concept. The animation targets school children at different ages and disseminates traditional moral culture to the society. In addition, the Company collaborated closely with the YBC office to follow the Youth Business International model, which has provided trainings for nearly 100,000 people. Fujian NetDragon Youth Business Foundation has been established to provide venture creation training, interest-free loans, mentorship program, and many other non-profit services. Under the leadership of Fujian Communist Youth League, the ‘Youth Development Service Platform’ and Fujian Youth Federation Communication Platform have been established by NetDragon to provide services to the teenagers by using new media, which dramatically strengthens the cohesion of youth associations and attracted the attention of the CYL Central Committee. Through practical actions, NetDragon implements the core socialist valuesand contributes wisdom and strength to the flourish and development of Haixi cultural industry.