Yuecong (Marco) Zhang

Marco Zhang from Gelonghui Research requested details on the execution timeline for NIP Group's Abu Dhabi headquarters build-out and the anticipated P&L impact of the Abu Dhabi Gaming and Abu Dhabi Investment Office programs over the next few years. He also sought elaboration on the rationale behind the sizable goodwill and intangible asset impairments related to Ninjas in Pajamas in H1 2025, and whether investors should expect further similar charges. Finally, Mr. Zhang asked for an update on the progress and expected timeline for closing the additional asset purchase agreements to expand Bitcoin mining capacity.

Answer

Co-Founder and Co-CEO Hicham Chahine confirmed the Abu Dhabi HQ build-out is on schedule, with senior leadership relocated, and highlighted ongoing benefits from payroll and office subsidies, plus the $40 million Abu Dhabi Investment Office partnership, all positively impacting the P&L. Regarding impairments, Mr. Chahine explained they reflected a market cooldown in esports valuations since the merger and were non-cash, with no further impairment pressure expected. He also updated that the Tranche 2 Bitcoin mining acquisition is active, working towards customary closing conditions, and still targeting a December close.

Marco Zhang requested details on the execution timeline for the Abu Dhabi headquarters build-out and how the Abu Dhabi Gaming and Abu Dhabi Investment Office programs will impact NIP Group's P&L over the next few years. He also asked for the rationale behind the sizable goodwill and intangible asset impairments related to Ninjas in Pajamas in H1, and whether investors should expect further similar charges. Finally, Mr. Zhang sought an update on the progress and expected timeline for closing the additional asset purchase agreements (tranche two) for Bitcoin mining capacity.

Answer

Hicham Chahine, Co-Founder and Co-CEO, confirmed the Abu Dhabi HQ build-out is on schedule, with senior leadership relocated, and benefits from the DCT program already positively impacting payroll and office subsidies. He noted the $40 million ADIO partnership is activated and trending ahead of KPIs. Regarding impairments, Mr. Chahine explained they reflect a market cooldown in esports valuations since the merger, were non-cash, and no further impairments are foreseen. For tranche two, he stated the acquisition is active, targeting a December close, pending customary conditions.

Yuecong (Marco) Zhang from Gelonghui Research congratulated management on achieving net profit and asked for more details on the EngageLab business, seeking insights into its current performance and future strategic direction as a key growth driver.

Answer

CFO Shan-Nen Bong confirmed EngageLab's role as a primary growth engine, citing its 67% year-over-year revenue growth and service presence in over 45 countries. For its future state, Bong outlined a global expansion strategy focused on establishing localized teams in markets like Thailand and Japan to build on existing presences in Hong Kong, Singapore, and Malaysia, aiming to deepen market penetration and accelerate customer acquisition.

Yuecong (Marco) Zhang of Gelonghui Research inquired about the timeline to achieve quarterly net profit, considering the company's strong 38% revenue growth and seventh consecutive quarter of positive adjusted EBITDA, yet ongoing net losses.

Answer

CFO Shan-Nen Bong responded that the company is deliberately prioritizing long-term growth by investing in R&D and marketing, which currently impacts net profitability. He cited the 64% YoY growth in Financial Risk Management as a direct result of such investments. Bong stated that while they could achieve net profit by cutting these strategic expenses, it would compromise future growth. He affirmed their focus is on scaling the business, with the belief that sustainable profitability will naturally follow.

Yuecong (Marco) Zhang from Gelonghui Research inquired about the timeline to achieve quarterly net profit, noting the strong growth in revenue and gross profit alongside a seventh consecutive quarter of positive adjusted EBITDA.

Answer

CFO Shan-Nen Bong explained that the company is prioritizing long-term growth by making strategic investments in R&D and marketing, which currently impacts net profitability. He cited the 64% YoY growth in Financial Risk Management as a direct result of these investments. Bong stated that while they could achieve net profit by cutting these expenses, it would hinder future revenue growth. The current strategy is to scale the business, with the belief that sustainable profits will follow.

Yuecong (Marco) Zhang of Gelonghui Research asked when the company expects to achieve quarterly net profit, considering its strong revenue growth and seventh consecutive quarter of positive adjusted EBITDA but continued net losses.

Answer

CFO Shan-Nen Bong explained that the company is strategically reinvesting in R&D and marketing to fuel sustainable long-term growth, which currently impacts net profitability. He noted these investments directly contributed to the Financial Risk Management segment's 64% revenue growth. Bong stated that while they could achieve net profit by cutting these expenses, it would hurt future growth, and that profitability will naturally follow as the business continues to scale.