On 25th March, Newborn Town Inc. (09911.HK) (the Company) held an online conference introducing the Company’s financial and operational performance in 2020 and strategy of development in 2021, and answering questions from shareholders and investors. The top management including Mr. Liu Chunhe, the Chairman and CEO, and Mr. Li Ping, the President, were present at the conference.
Newborn Town Inc. is a going-global internet company from China, whose core business is video and voice-chat social networking applications. The Company also explores mobile game app development. Its market coverage continues to expand all over the globe.
On the conference, Mr. Liu Chunhe introduced the main financial performance of Newborn Town Inc. in 2020: As of 31 December 2020, its total revenue reached RMB1,181.6 million, with a year-on-year growth of 203.2%.
Thereinto, revenue of in-app purchase was RMB657.5 million, with over 55-fold increase year-on-year, accounting for 55.6% of total revenue. Revenue of in-app traffic monetization business was RMB511.2 million, with a year-on-year growth of 120.3%, accounting for 43.3% of total revenue.
Profit for the year reached RMB114.3 million, with a year-on-year increase of 67.1%. And the adjusted net profit amounted to RMB154.9 million, with a year-on-year increase of 41.5%. During the year 2020, Newborn Town had outstanding financial performance, with both revenue and profit recording rapid growth.
As known, Newborn Town Inc. took the Middle East, North America, India, Pakistan and Southeast Asia as its main markets of social networking business. Since 2020, the Company expanded its target market to Europe, Japan and Korea, which have high potential of users’ value. Now, Newborn Town has a stable presence in the top 3 going-global social networking platforms of China.
There are three core social networking applications launched by the Company, a video communication app named Yiyo, a live streaming social networking app named MICO and a voice-chat social networking app named YoHo.
Yiyo is known as ‘a video version of Tinder’, which has accumulated over 50 million of downloads since launched and successfully entered the top 20 most downloaded social networking applications on Google Play. MICO has got the first place in 71 countries and regions in social networking applications downloads ranking of App Store, and entered top 10 in 84 countries and regions in that ranking of Google Play. YoHo has become the top 2 voice-chat social networking platforms in the Middle East region, and the top 10 best-selling social networking applications on Google Play in the Gulf Cooperation Council (GCC).
During 2020, the Company’s investment in R&D reached 58.53 million, with a year-on-year growth of 188.8%. Mr. Liu Chunhe said on the conference, Newborn Town would continue to raise input in products development, and the investment in R&D would be doubled in the year 2021. He also affirmed that the Company would keep digging deep in the global social networking field, making combination of its products and video and audio interacting forms, launching more diversified applications for global users.
In the year of 2020, the average monthly active users of the Company’s social networking applications reached 11.36 million, while the average monthly active users of its game applications reached 11.51 million.
On the conference, Mr. Liu Chunhe emphasized that Newborn Town would maintain its firm foothold in the global market and focus on social networking business. He said the total number of monthly active users of the Company’s products was expected to be doubled in the year of 2021.