NIP Group Inc.

For the first half of 2025, NIP Group reported total revenue of USD 61.2 million, up 55.5% year over year. Talent management revenue increased 110.6% year over year, events production revenue rose 30.1% year over year, and esports team operations contributed USD 3.8 million. The company posted a gross loss of USD 1.2 million, with gross margin of minus 2% versus 6% in the prior-year period. Net loss was USD 136.3 million versus USD 4.7 million a year ago, driven mainly by USD 106.3 million of goodwill impairment and USD 19.5 million of intangible asset impairment. Excluding those items, adjusted EBITDA was negative USD 7.1 million versus negative USD 2.6 million last year. Looking ahead, management expects positive adjusted EBITDA in the second half of 2025 and said Western esports should break even or slightly profit on an adjusted EBITDA basis in H2 2025, with improvement continuing into early 2026. The mining business is expected to add a meaningful new revenue stream, with management saying Tranche 2 is targeted to close in December and total installed mining capacity should reach 11.3 exahash per second once completed.

Mario Ho framed the first half as a period of “recalibration, rebuilding and disciplined execution” and said the company is moving into a dual-engine model anchored by entertainment and mining/digital assets. He emphasized better esports cost structures, a healthier sponsorship pipeline, and a stronger events business that is expanding beyond esports into music festivals and broader live entertainment. His tone was confident and forward-looking, especially on Abu Dhabi, where he described the headquarters and incentive framework as a long-term strategic advantage.

Zhiyong Li highlighted the core financials: USD 61.2 million in first-half revenue, a USD 1.2 million gross loss, minus 2% gross margin, and a USD 136.3 million net loss driven primarily by noncash impairments. He stressed that the USD 106.3 million goodwill impairment and USD 19.5 million intangible impairment do not affect operating cash flow and are not expected to recur in the second half. On capital allocation and liquidity, management said the balance sheet remains solid, the cost structure is leaner, and the company plans to fund needs by selling only part of mined Bitcoin while retaining the rest as digital assets. He also pointed to the 30% payroll subsidy, office subsidies, and up to USD 40 million of ADIO incentives as support for future cash flow and operating leverage.

Analysts pressed management on whether the music-and-events model is replicable and how margins should trend; Mario said the Beijing festival validated the concept, called it highly replicable in China and selected international markets, and said the second-half pipeline includes more festivals and concerts with improving margins. On esports, management said weak first-half results were mostly timing-related due to delayed league confirmation letters and softer sponsorships, but expects normalization in the second half and said competitive performance is improving, especially in Counter-Strike. On the mining business, questions focused on economics, differentiation, and the Abu Dhabi build-out; management said the company benefits from acquired existing infrastructure, lower upfront capex, supportive government partnerships, and no forced monthly coin sales, and confirmed Tranche 2 is still targeted to close in December.