VOBILE GROUP (03738): Mid-term net profit doubled, with a growth of 118.6%. AI-driven digital asset platform opens up a hundred billion level cash-out space.

On August 28, Vobile Group (03738), a leading SaaS provider of digital asset protection and trading worldwide, released its mid-term performance for 2025, showing impressive performance in several core financial indicators, demonstrating strong growth momentum and improved profitability. During the period, the company's revenue was HK$1.456 billion, a year-on-year increase of 23.4%; net profit was HK$101 million, a year-on-year increase of 118.6%; and the attributable net profit of the company's owners was HK$102 million, a year-on-year increase of 146.77%. Of particular note is the significant improvement in Vobile Group's profitability, with both gross profit margin and net profit margin increasing year-on-year to 44.1% and 7% respectively, an increase of 1.4 and 3.0 percentage points respectively. This reflects the company's continuous enhancement of operational efficiency while expanding its scale. It is believed that the continued high growth trend in performance reflects Vobile Group's solid and effective strategic execution, sustained strong growth momentum. From 2018 to 2024, the company steadily expanded with a compound annual growth rate of up to 65%. Not only is the core copyright protection business stable, but the company has also expanded its technology and services into multiple high-potential tracks such as micro-short films, music, and AIGC content, achieving multi-polar growth. The company's layout in the field of AI has always adhered to technological evolution and market demand, showing outstanding foresight and execution. In December 2024 and March 2025, the company successively launched the digital content asset trading platform Vobile MAX and the integrated audiovisual creation platform DreamMaker based on diversified AI models. The synergy between these two platforms not only strengthens the company's core hub position in the digital content industry but also marks its evolution from a traditional copyright protection service provider to an AI-driven content asset operation platform. Furthermore, Vobile Group's business expansion in the RWA direction in the content industry resonates with the global RWA and Web3.0 development trend. In June this year, Vobile Group successfully completed market testing for the Vobile MAX digital content asset trading platform. The platform is now capable of handling high concurrency verification and transaction capabilities for large-scale RWA assets such as micro-short films, effectively addressing the liquidity challenges of digital content assets and building a comprehensive infrastructure covering asset registration, verification, distribution, and revenue sharing. The continued high growth in performance and sustained release of SaaS scale effects indicate that Vobile Group's core markets in China and the US both have sustainable growth potential. Breaking down the business, Vobile Group's top revenue source is still value-added services. During the period, this business achieved revenue of HK$846 million, a year-on-year increase of 33.3%, accounting for 58.1% of total revenue. The explosive growth of AI tools in the first half of 2025 led to a significant increase in secondary-created content, which greatly increased the visibility of Hollywood IP managed by the company in secondary-created content on the internet. Under the company's existing business model, it can directly trace the rights and share revenue from this type of content. Subscription services maintained steady growth, achieving revenue of HK$610 million during the period, a year-on-year increase of 11.8%, accounting for 41.9% of total revenue. With the continued increase in global market attention to copyrights, the group's coverage of diverse content types expanding, and the increasing demand of copyright platform providers, Vobile Group's subscription services are expected to continue to maintain a good development trend. In terms of regions, Vobile Group's core markets in China and North America show strong development momentum. In North America, the company achieved revenue of HK$725 million during the period, a year-on-year increase of 26.8%, accounting for approximately 49.8% of total revenue. During the same period, revenue in China was HK$727 million, a year-on-year increase of 20.1%, accounting for about 49.9% of total revenue. The company actively participates in the national digital cultural and economic and digital trade construction, serving as a core technology service provider in major copyright protection and trading platform projects. In addition, the company has successfully assisted in the overseas expansion of emerging content forms such as micro-short films, with YouTube platform user coverage reaching nearly 12 million, demonstrating its ability to serve across markets. In the medium to long term, Vobile Group has sustainable growth potential in both markets. The North American market continuously targets high-value customer groups and emerging content categories based on its technological superiority and platform services. The Chinese market benefits from accelerated digital content infrastructure construction, deepening of copyright protection policies, and growth in overseas demand. Of note, the company has established itself in the Greater Bay Area of Guangdong-Hong Kong-Macao, further strengthening its regional layout. As a hub for national digital economic development and cross-border trade hub, the Greater Bay Area has gathered policies and innovation resources, and Vobile is expected to deepen its participation in regional copyright ecology and digital asset circulation mechanisms, opening up broader business space. AI-enabled content ecology expansion and ecosystem foundation construction drive multiple dimensions of business model upgrades. Multi-modal and generative artificial intelligence technologies are commercializing at an unprecedented speed, driving the digital content industry into a new stage of intelligent creation and interaction. The ability to generate and integrate various media forms such as text, images, videos, and audio has significantly enhanced, greatly improving the efficiency of cross-modal content creation and user experience. Currently, emerging applications such as generative video, AI composition, immersive interactive entertainment, and intelligent storytelling have gradually moved beyond the technology validation phase into the commercialization phase, enriching digital ecosystem content supply and activating the commercial value of long-tail markets. In this context, Vobile Group, with its deep accumulation in digital rights management, content asset operation, and AI-driven tool platforms, demonstrates significant first-mover advantage and business synergies. AI-generated content (AIGC), particularly the explosive growth of multi-modal content, not only has not impacted the company's traditional core business but has brought structural growth opportunities. Specifically, this trend has brought deep benefits in "directly enabling value-added businesses" and "platform ecosystem construction". Firstly, AI-driven content ecology expansion enhances copyright management and monetization capabilities. The surge in AI-generated content, especially secondary created content, directly leads to Hollywood IPs managed by Vobile emerging in highly entertaining, high-traffic, and high-view secondary-created videos. Under Rights ID business, Vobile's automated content recognition and revenue-sharing technology efficiently and accurately tracks the dissemination of AI secondary-created content on different platforms such as YouTube and Facebook, allowing for revenue sharing. This transforms the traditionally viewed "cost center" of intellectual property protection into a scalable profit "revenue center". Each identified secondary-created content piece that gains circulation and revenue can bring continuous income to the rights holder through revenue sharing mechanisms, while also generating technical service revenue for Vobile. In other words, AI content not only does not weaken Vobile's business logic but transforms its copyright management service from "passive protection" to "active operation", becoming an indispensable distribution infrastructure in the digital content value chain. The company has essentially become a key transaction hub and credit intermediary connecting original creators, secondary creators, platform providers, and end consumers in the AI content era. Secondly, Vobile Group fully embraces AI-native content, constructing a closed-loop digital asset circulation. If AI secondary created content has expanded the marginal revenue of Vobile's existing business, the rise of AI-native content drives its evolution into a higher-dimensional digital content asset operation platform. With the improvement of generative model capabilities, videos, music, virtual live streaming, interactive storytelling, and other original content created entirely by AI continue to increase in proportion. These content forms face challenges from complex rights ownership, difficult traceability, and lack of transaction mechanisms from inception, but Vobile's forward-looking Vobile MAX and DreamMaker platforms were designed to solve these pain points. The Vobile MAX platform, as a creation-oriented content platform for the AI era, provides end-to-end services ranging from rights verification to convenient monetization and can be seen as the "income engine" of the AI content era. The platform targets not only AI-involved content creators but also a vast number of traditional content producers. The platform is expected to reach more independent creators and small to medium-sized content institutions, bringing benefits to them. On the other hand, the DreamMaker platform offers a one-stop solution for creators from creative ideas to content monetization. As the industry's first platform that deeply integrates AI models with high-efficiency production tools, DreamMaker seamlessly integrates creative video production, intelligent copyright management, and various monetization paths, empowering independent creators to transform ideas into tangible works with lower barriers, higher quality, and faster speeds, while ensuring compliance and revenue security. The platform has already been opened to professional creators in the US, aiming to reshape the digital content creation ecosystem and inject fresh momentum into the creative economy. It is believed that the synergy between these two platforms creates a closed loop, with DreamMaker serving the "creation-rights" front end and Vobile MAX focusing on the "distribution-transaction-circulation" back end, collectively forming an operational system covering the entire lifecycle of AI content. This means that Vobile has evolved from just a copyright protection company to an AI-driven new type of digital content asset operator. Its business model has expanded from a simple service fee to include transaction commissions, revenue sharing, asset management, and other dimensions with greater potential for growth quality and valuation enhancement. From a valuation perspective, in the AIGC and digital content sectors, Vobile Group's current market-to-sales ratio of about 6.5 times is significantly lower than several peer companies. For example, TIANGE and MEITU have market-to-sales ratios higher than 14 times, with the former exceeding 60 times, reflecting the market's high valuation premium for conceptual period enterprises. In contrast, Vobile's valuation level is more pragmatic and has achieved solid profit growth. Additionally, the company's leading position in the next-generation digital infrastructure field, such as RWA asset platforms (Vobile MAX, DreamMaker), is becoming increasingly evident in terms of scarcity and platform value, demonstrating healthier growth quality and potential for valuation enhancement. Building a technological-platform-circulation ecological loop strategically positions RWA to unleash a new era of explosions. The securitization of real-world assets (RWA) is transitioning from conceptual validation to large-scale implementation, with assets such as real estate, bonds, commodities, and intellectual property accelerating their migration to the blockchain. This enhances transaction efficiency, reduces circulation costs, and increases asset liquidity. Global financial institutions, technology platforms, and regulatory bodies are collectively driving this trend and gradually constructing a hybrid ecosystem compatible with traditional finance and blockchain technology. Digital content assets, as ideal targets for the tokenization of real-world assets, possess natural digitized properties and high liquidity potential, making them an important development direction in the RWA field. During the performance meeting, Vobile Group stated that it combines characteristic data with revenue data to anchor the asset value of digital content. This approach not only has technological foresight but also provides a quantifiable valuation model for digital content assetization, greatly enhancing the feasibility and market credibility of RWA securitization. Leveraging its independently developed VDNA digital fingerprint and watermark technology, Vobile built a high-precision, high-reliability content recognition and rights mapping system. Through the Vobile MAX platform, the company systematically integrates the full chain of services from "rights verification - automated rules and revenue sharing - multi-platform distribution - transaction and circulation", achieving a complete loop from content to assets. The platform supports high-frequency, fine-grained lightweight transactions, significantly increasing asset liquidity and providing rights holders with real-time, transparent revenue penetration capabilities. Focusing on digital content RWA, in addition to the SaaS service fee model, Vobile Group is expected to gradually participate in multi-dimensional revenue distribution including asset transaction commissions, on-chain governance, and ecosystem incentives. From a capital perspective, Vobile Group is being redefined from a "traditional SaaS service provider" to a "leading digital asset infrastructure in the AI and RWA convergence field." This transformation not only explains its recent strong stock price performance but also opens up broader valuation space. The market is beginning to view it as a "water seller" in the digital content domain, where Vobile's core capabilities in rights verification, transaction, and revenue sharing will continue to benefit regardless of how AI technology evolves or content forms change.