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Gaming giant NetDragon to build up interactive learning business through China’s Silk Road plan

The Fuzhou-based company is looking to record an operating profit at the end of this year, rebounding from two consecutive annual losses.

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From left: Jumpstart chief executive officer David Lord; group chief financial officer Ben Yam; group vice chairman Simon Leung; Cherrypicks chief executive officer Jason Chiu; and Promethean chief executive officer Vin Riera at the media presentation of NetDragon Websoft on Tuesday. Photo: Jonathan Wong

Online gaming giant NetDragon Websoft aims to fast-track growth for its interactive learning business through China’s Silk Road plan, following its US$25.6 million acquisition of American educational products company JumpStart.

“As we grow further in [mainland] China, we have embraced the Belt and Road Initiative to boldly go into new emerging markets,” said Liu Dejian, the founder and chairman of Hong Kong-listed NetDragon, at the firm’s Capital Markets Day programme on Tuesday.

Liu highlighted a key technology of NetDragon’s interactive learning business by appearing at the event’s venue in Wan Chai as a hologram, beamed live from the company’s headquarters in Fuzhou, capital of Fujian province.

He pointed out that building online communities, which is at the heart of NetDragon’s online gaming business, has also driven its efforts in the interactive learning market since 2014.

The purchase of JumpStart, which makes learning games for children and is a partner of entertainment studios like DreamWorks Animation, marks NetDragon’s latest big-ticket acquisition after its US$130-million takeover of London-listed learning technologies provider Promethean World in 2015.

As we grow further in [mainland] China, we have embraced the Belt and Road Initiative to boldly go into new emerging markets
Liu Dejian, chairman NetDragon

In between those two transactions, NetDragon last year bought cherrypicks alpha – the augmented and virtual reality research arm of its local subsidiary Cherrypicks – for US$6 million in cash and shares, and a C$5 million (US$3.8 million) investment in Toronto-based ARHT Media, developer of the interactive hologram technology used for Liu’s presentation on Tuesday.

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