Solutions package helps NetDragon Websoft to speed up global expansion

NetDragon Websoft Holdings Ltd, a Chinese education and gaming company, is speeding up overseas expansion by offering "a package of" solutions to tap into the rising demand for online education globally amid the COVID-19 pandemic.

Xiong Li, CEO of NetDragon Websoft, said the company had opened a new chapter in foreign markets in the first half of this year and signed new contracts with education authorities from the United States and Thailand.

"Different from other education companies that focus on a single business, to offer a package of supply has become NetDragon's advantage in going overseas," he said.

The company's interim financial report said the company gained 2.82 billion yuan ($414 million) in revenue in the first half of this year, representing a year-on-year growth of 5.6 percent. Revenue from its education business hit 1.14 million yuan, having soared 40.3 percent year-on-year.

"An overall solution covers all learning procedures and is order-based, which is relatively low in cost. To a certain extent, we take our menu of various products to meet with different governments abroad to tap their demand," Xiong said.

NetDragon was founded in 1999. It used to be a leading online gaming provider, but has transformed in the past decade into a diversified business with a focus on education－Elernity－since 2010.

The Fuzhou, Fujian province-based company has developed and launched a string of integrated educational devices, including smart boards and panels as well as feedback and evaluation systems, with many of its products and services being sold to public schools and governments.

"Currently, the overseas revenue accounted for the education subsidiary's 70 percent of total revenue. In the overseas market, the payment willingness is much higher than that in the domestic market and there are merely restrictions on how long students can use electronic products," Xiong noted.

It has acquired a 100 percent stake in London-listed Promethean, whose products were already being used in 100 countries and regions, in JumpStart, an innovative education gaming firm, as well as global education community Edmodo.

"A group of governments in foreign countries showed the willingness of cooperation during the pandemic and hope that we can help them to transform education from offline to online," he said.

Some 56 countries and regions have closed schools temporarily due to the pandemic.

UNESCO estimated some 850 million young students across the world would find their academic schedules disrupted due to the impact of COVID-19.

UNESCO's estimate also delineated the extent of business opportunity for educational technology companies in China and elsewhere. The global body recently recommended dozens of online education apps or platforms.

In Egypt for instance, NetDragon will rolled out its online learning platform to over 22 million students and over 1 million teachers in the country.

Tarek Shawki, Egypt's minister of education and technical education, said: "The unprecedented times that we have found ourselves in mean that all governments around the world need to find innovative solutions to ensure the continued education of all learners.

"We find ourselves well positioned to be able to support distance learning and the rapid implementation of Edmodo as the platform to ensure that teachers, students and parents can collaborate and learn during this period."