Recently, the Hang Seng Tech Index has experienced significant volatility as three major e-commerce and local life service giants engaged in intense competition with massive subsidies in the food delivery market, resulting in substantial performance declines that have alarmed retail investors. This situation inevitably reminds investors of the hundreds of billions in refinancing completed by consumer electronics giants during their rapid stock price surges in the first half of the year. While the tech sector represents the progressive direction of "hardcore" technology, the cash-burning effects from subsidizing consumers and conducting R&D competition among various giants have become an unavoidable burden for sector investors.

However, within the Hang Seng Tech Index, a few companies have taken a contrarian approach, focusing on investor returns as their core business objective, with NetDragon (00777) being a prominent representative. NetDragon announced a shareholder return plan in August 2021, totaling up to US$300 million over 36 months. This plan was successfully executed through share buybacks and special dividends. From August 2021 to August 2024, NetDragon's share price rose from approximately HK$14.1 to HK$15.7 (ex-rights price), effectively shielding investors from losses during the broader market bear cycle. During the same period, the Hang Seng Index fell from 26,000 points to 17,000 points under the impact of the pandemic and economic adjustments, representing a decline of 36%. This well-timed shareholder return plan essentially provided NetDragon investors with relative returns of approximately 50% compared to the Hang Seng Index.

According to NetDragon's 2025 interim results announcement, management not only maintained the interim regular dividend at a relatively high level of HK$0.5, but also announced a new shareholder return plan of no less than HK$600 million over the next 12 months, which is expected to inject significant confidence into the market.

NetDragon's core gaming and application services segment showed stabilization and recovery in the first half, with core segment profits returning above RMB 500 million. The company maintained abundant cash reserves as of the end of June 2025, providing a solid foundation for future shareholder return commitments.

Additionally, NetDragon's long-term strategic investments in frontier technologies have generated favorable returns since the bull market beginning in September 2024. For example, its cornerstone investment in STARPLUS LEGEND (06683) IPO has seen overall valuation increases of more than threefold. NetDragon's strategic investment portfolio focuses on frontier technology ecosystems including AI, XR, robotics, and blockchain, while also paying close attention to emerging enterprises in the cultural creative industry.

One of its investments, ROKID, known as one of Hangzhou's "AI Seven Dragons," recently launched new AI glasses that secured over 200,000 orders across all platforms. Another investment, Hangzhou Shuaiku Network, a new media cultural creative talent IP platform, recently achieved outstanding performance on Douyin's group broadcasting platform.

These frontier investments are all developed around NetDragon's core gaming and education businesses, seeking full synergy with main operations while maintaining careful control and adjustment of overall position allocation. As a seasoned industry investor with strategic foresight, NetDragon's investment portfolio returns are expected to bring substantial potential special income opportunities to shareholders in the future.

Currently, NetDragon's dividend yield reaches 9% based solely on the annualized regular dividend of HK$1 per share, excluding buybacks. The new shareholder return plan of no less than HK$600 million, calculated against NetDragon's HK$6 billion market capitalization, represents a total shareholder return rate of 10%, providing compelling reasons for long-term value-oriented investors to consider buying.