NetDragon Websoft Holdings (777) released a supplemental announcement detailing the acquisition and disposal of cryptocurrencies between January 2024 and October 2025. The Board stated that these transactions, once aggregated, exceed the 5% threshold under the Listing Rules, making them disclosable transactions.

NetDragon acquired a total of 27,996.18 Ethereum for US$80.21 million, transacted in multiple batches on the OSL Exchange. The earliest purchase took place on January 4, 2024, involving 14,654.49 Ethereum, equivalent to US$33.00 million. Subsequent Ethereum acquisitions occurred through January and October 2025. The disposals of Ethereum cumulatively totaled 15,297.58 units for US$51.71 million, while the disposals of USDT/USDC amounted to 54,205,987 tokens, equivalent to US$54.21 million. The Company reported an expected gain of approximately RMB121.00 million following the sale of Ethereum.

According to the announcement, NetDragon introduced internal investment policies governing its cryptocurrency trading to limit exposure, manage liquidity, and establish risk-control measures. The Company also clarified that USDT and USDC stablecoins serve as hedges against volatility and facilitate strategic portfolio adjustments.

The Board explained that non-compliance with the disclosure requirements resulted from misunderstandings regarding percentage ratio aggregation and the treatment of certain stablecoins as cash equivalents. NetDragon has outlined remedial actions, including enhanced internal compliance reviews, stricter monitoring of all cryptocurrency transactions, and regular Board oversight. The transactions qualify as disclosable but do not require shareholder approval under Chapter 14 of the Listing Rules.