Core Insights - NetEase Cloud Music (09899) reported a revenue of approximately 7.759 billion yuan for 2025, with a gross profit of about 2.77 billion yuan, reflecting a year-on-year growth of 3.3% [1] - The annual profit reached approximately 2.746 billion yuan, marking a significant year-on-year increase of 75.4%, while the adjusted net profit was around 2.86 billion yuan, up by 68.2% [1] Group 1: User Engagement and Community Development - The company continues to expand and deepen its music-oriented community ecosystem, leading to growth in user scale and activity [1] - Daily active users (DAU) as a percentage of monthly active users (MAU) maintained above 30%, showing steady improvement compared to 2024 [1] - The average daily listening time for mobile users has also increased, indicating enhanced user engagement [1] Group 2: Content Strategy and Partnerships - The company has enriched its copyright music reserves and actively promoted original Chinese music, creating a diverse and unique content library [1] - In 2025, the company introduced content from Korean labels to supplement its Chinese music library, adding film soundtracks and variety show music [1] - The company deepened collaborations with labels for content promotion and music-centric activities, while its independent musician ecosystem continued to thrive [1] Group 3: Product Innovation and User Experience - The company prioritized user needs and focused on innovating music discovery and listening experiences [2] - In 2025, the core product framework was upgraded to enhance visual appeal and better meet diverse music discovery preferences [2] - The launch of the self-developed AI generative recommendation model "Climber" and features like Automix and "Shen Guang Player" provided an immersive audio-visual experience [2] Group 4: Revenue and Profitability - The monetization capability centered around music continued to achieve steady growth, with membership subscription revenue increasing by 13.3% due to a rise in membership scale [2] - The growing membership scale demonstrated stronger user stickiness, with improved retention and activity rates [2] - The company's gross margin reached 35.7% in 2025, significantly up from 33.7% in 2024, with operating profit increasing by 38.5% due to business scale growth and improved online music commercialization capabilities [2]

Core Insights - NetEase Cloud Music (09899.HK) reported annual performance for the year ending December 31, 2025, with revenue of RMB 7.76 billion and gross profit of RMB 2.77 billion [1] - The gross profit slightly increased by RMB 88.1 million, with the gross margin expanding from 33.7% to 35.7%, primarily due to increased online music service revenue and improved operational efficiency, despite a decline in social entertainment service revenue [1] - Operating profit for 2025 reached RMB 1.622 billion, up from RMB 1.171 billion in 2024, mainly due to reduced promotional and advertising expenses and increased government subsidies [1] - The net profit for 2025 was RMB 2.746 billion, compared to RMB 1.565 billion in 2024 [1] - During the reporting period, the company recognized deferred tax assets of RMB 747 million, mainly due to cumulative tax losses from a wholly-owned subsidiary, which can be carried forward to offset future taxable income [1] - Adjusted net profit for 2025, excluding the impact of equity settled share-based payments, was RMB 2.86 billion, compared to RMB 1.7 billion in 2024 [1]

Core Insights - NetEase Cloud Music (09899) reported a revenue of approximately 7.759 billion yuan for 2025, with a gross profit of about 2.77 billion yuan, reflecting a year-on-year growth of 3.3%. The annual profit reached around 2.746 billion yuan, marking a significant year-on-year increase of 75.4%, while the adjusted net profit was approximately 2.86 billion yuan, up by 68.2% [1] Group 1: User Engagement and Community Development - The company continues to expand and deepen its music-oriented community ecosystem, leading to growth in user scale and activity [1] - Daily active users (DAU) as a percentage of monthly active users (MAU) maintained above 30%, showing steady improvement compared to 2024 [1] - The average daily listening time for mobile users has also increased, indicating enhanced user engagement [1] Group 2: Content Strategy and Partnerships - The company has enriched its copyright music reserves and actively promoted original Chinese music, creating a diverse and unique content library [1] - In 2025, the company introduced content from Korean labels to supplement its Chinese music catalog, adding film soundtracks and variety show music, while further solidifying niche music categories such as rap and Western music [1] - The company deepened collaborations with labels in content promotion and music-centric activities, while its independent musician ecosystem continued to thrive [1] Group 3: Product Innovation and User Experience - The company prioritized user needs and continued to innovate in music discovery and listening experiences, upgrading its core product framework in 2025 to enhance visual appeal and meet diverse user preferences [2] - Personalized content distribution was advanced with the launch of the self-developed AI generative recommendation model, Climber, along with innovative features like Automix and "Shen Guang Player" [2] - The company expanded and enhanced community scenarios to encourage more active user participation and interaction [2] Group 4: Revenue and Profitability - The monetization capability centered around music continued to achieve steady growth, with membership subscription revenue increasing by 13.3% in 2025 due to a rise in membership scale, despite slight dilution from changes in membership structure [2] - The rapidly growing membership scale demonstrated stronger user stickiness, with improved retention rates and activity levels [2] - The company's profitability improved further in 2025, with a gross margin of 35.7%, significantly up from 33.7% in 2024, and operating profit increased by 38.5% year-on-year, driven by business scale growth and enhanced online music commercialization capabilities [2]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 NETEASE CLOUD MUSIC INC. 網易雲音樂股份有限公司 （於開曼群島註冊成立的有限公司） （股份代號：9899） 截至2025年12月31日止年度的 年度業績公告 董事會欣然宣佈本公司及其子公司（統稱「本集團」）截至2025年12月31日止年度 的未經審計合併業績。該等未經審計合併年度業績已由董事會的審計委員會連 同我們的管理層審閱。 一般附註 於本公告：(i)「我們」及「我們的」指本公司及倘文義另有所指，則指本集團； (ii)數字可能會約整至小數點後一位或兩位；及(iii)除另有所指外，所用匯率為 人民幣1元兌1.1071港元及0.1423美元。 2 管理層討論與分析 截至12月31日止年度 | | 2025年 | 2024年 | 變動(%) | | --- | --- | --- | --- | | | | （人民幣千元，百分比除外） | | | 收入 | 7,759,450 | ...

Economic Data - The People's Bank of China will release January CPI and PPI on February 11 [1] - The National Bureau of Statistics will publish the monthly report on January commodity residential sales price index on February 13 [1] - Financial data including January social financing and new RMB loans will also be released next week [1] - In the US, December retail sales month-on-month will be announced on February 10, followed by January unemployment rate and non-farm employment data on February 11 [1] Earnings Reports - The US earnings season continues with several notable companies reporting next week, including BP, Barclays, Marriott, Coca-Cola, and AstraZeneca on February 10 [2] - Other companies such as NetEase, Youdao, and Total will report on February 11, while TripAdvisor and Hyatt will report on February 12 [2] - In Hong Kong, SMIC will report earnings on February 10, followed by Budweiser APAC and NetEase Cloud Music on February 11 [2] New Stock Issuance - One new stock, Tongbao Optoelectronics, will be available for subscription on February 9, with Ai De Technology listing on the Beijing Stock Exchange on February 10 [2] - Several new stocks will list in Hong Kong, including Lanke Technology on February 9 and Aixin Yuanzhi on February 10 [2] Stock Unlocking - A total of 33 restricted stocks will be unlocked next week, with a total market value exceeding 36 billion yuan, led by Hunan YN with 24.096 billion yuan [3][10] Central Bank Operations - The central bank will have 4.055 billion yuan of reverse repos maturing next week, with specific amounts maturing each day [3][10] Government Bonds - The Ministry of Finance will issue the first phase of RMB government bonds in Hong Kong on February 11, with a scale of 14 billion yuan [13]

Core Viewpoint - NetEase Cloud Music has significant user payment potential, with a current online music payment rate of 21.4%, compared to Spotify's 39%, indicating room for improvement in monetization strategies [1] Group 1: Company Performance - The company is expected to achieve revenues of 7.935 billion, 8.692 billion, and 9.585 billion yuan from 2025 to 2027, with net profits of 2.684 billion, 2.215 billion, and 2.541 billion yuan respectively [1] - The company is projected to have an EPS of 12.32, 10.17, and 11.66 yuan for the years 2025 to 2027, with a PE ratio of 16 times in 2026 [1] - In 2023, the company turned profitable for the first time, with a gross margin recovery from -114.74% in 2018 to an expected 33.73% in 2024, marking a shift from growth through scale to value-driven monetization [1] Group 2: Industry Landscape - The global recorded music market is expected to reach 29.6 billion dollars in 2024, growing at 4.8% year-on-year, with streaming accounting for 69% of the market [2] - China is projected to grow at 9.6% in 2024, surpassing mature markets in the US and Europe, driven by enhanced copyright protection and local music innovation [2] - The competitive landscape in the online music sector shows Spotify leading globally with a 32% user share, while Tencent's platforms dominate domestically, with NetEase Cloud Music holding a 19% monthly active user share [2] Group 3: Strategic Advantages - The company differentiates itself through a community-driven music consumption model, focusing on social experiences rather than traditional tool-based platforms [1] - The content strategy includes a diverse range of genres and a significant number of independent artists, with 774,000 independent musicians and 4.4 million original songs nurtured through initiatives like the "Stone Plan" and "Cloud Ladder Plan" [3] - The company has established a high-engagement ecosystem, with 1.2 billion music reviews and an average daily listening time of 78.9 minutes per user, leading the industry in user stickiness [3]

Core Viewpoint - The report from Northeast Securities highlights the untapped user payment potential of NetEase Cloud Music, indicating a significant room for improvement in its online music payment rate compared to international competitors like Spotify [1] Group 1: Company Performance - In 2023, NetEase Cloud Music achieved its first profitable year, with a gross margin recovery from -114.74% in 2018 to an expected 33.73% in 2024, marking a shift from a growth model based on scale investment to one driven by content value [1] - The company is projected to generate revenues of 7.935 billion, 8.692 billion, and 9.585 billion yuan from 2025 to 2027, with net profits of 2.684 billion, 2.215 billion, and 2.541 billion yuan respectively, and an EPS of 12.32, 10.17, and 11.66 yuan, corresponding to a PE of 16 times in 2026 [1] Group 2: Industry Landscape - The global recorded music market is expected to reach $29.6 billion in 2024, growing at 4.8% year-on-year, with streaming accounting for 69% of the market, indicating strong growth potential [2] - In 2022, China entered the top five global music markets, with a projected growth rate of 9.6% in 2024, surpassing mature markets in the US and Europe, driven by enhanced copyright protection and local music innovation [2] - The competitive landscape in the online music sector is clear, with Spotify leading globally at 32% user share, while Tencent's platforms dominate domestically, and NetEase Cloud Music holds a 19% monthly active user share, leveraging community engagement and original content to appeal to Gen Z users [2] Group 3: Growth Drivers - NetEase Cloud Music's growth is driven by a three-pronged approach: content, community, and technology [3] - The content strategy includes a diverse copyright portfolio covering various genres and the incubation of 774,000 independent musicians and 4.4 million original songs through initiatives like the "Stone Plan" and "Cloud Ladder Plan" [3] - The community aspect shows high engagement, with 1.2 billion music reviews and a daily average listening time of 78.9 minutes per active user, leading to a DAU/MAU ratio exceeding 30%, indicating strong user retention [3] - Technologically, the company leads in personalized recommendations and has developed the "NetEase Tianyin" AIGC platform to lower content creation barriers, enhancing user experience across multiple devices [3]

Core Viewpoint - The report from Citi indicates that the Chinese internet industry is expected to perform strongly by 2025, driven by AI trends led by DeepSeek, with growth anticipated to continue into 2026, particularly in the competitive landscape of AI and generative video applications [1] Industry Summary - The competition between China and the United States in AI models, applications, cloud services, and autonomous driving (Robotaxi) is expected to intensify [1] - Despite geopolitical challenges, the Chinese gaming and e-commerce sectors are experiencing rapid growth in overseas markets, although there is a cautious outlook for the domestic e-commerce sector [1] Investment Strategy - Citi favors sectors such as AI, gaming, and health, predicting a year-on-year revenue growth of 12% and an adjusted EBIT growth of 29% for the industry [1] - The report suggests that China is likely to lead in the global application of AI [1] Valuation Insights - The report highlights that the current forecasted adjusted P/E ratio for the sector in 2026 is 16.1 times (13.7 times for 2027), which represents a discount of approximately 40% compared to U.S. peers, indicating attractive valuation [1] Preferred Stocks - Citi lists six preferred stocks for 2026, including Tencent Holdings (00700), Xiaomi Group-W (01810), Alibaba-W (09988), NetEase-S (09899), Kuaishou-W (01024), and JD Health (09618) [1] - The report specifically notes optimism regarding Alibaba's cloud business, Tencent's AI applications, and Xiaomi's consumer-grade AI devices [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2026年1月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 網易雲音樂股份有限公司 呈交日期: 2026年2月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09899 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | USD | | 0.0001 | USD | | 100,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 1,000,000,000 | USD | | 0.0001 | USD | | 100,000 | 本月底法定/註冊股本總 ...

Group 1 - The AI social platform Moltbook has gained significant popularity overseas, featuring 1.5 million AI agents engaging in discussions across thousands of forums, mimicking human social patterns [1][3] - Tencent's AI platform Yuanbao launched a cash red envelope activity on February 1, leading to a surge in downloads, topping the iPhone app rankings on the same day [2][3] - The advancements in large model reasoning and multi-modal capabilities indicate a strong foundation for human-like interactions in AI social platforms, suggesting a pathway from niche applications to broader social engagement [1][3] Group 2 - Google announced the public testing of its world model Genie3, allowing users to create real-time interactive virtual worlds through natural language dialogue, enhancing game development accessibility [4] - The launch of Taptap Maker by Xindong Company enables game creators to develop games directly within a chat interface, significantly lowering the barriers to game development [4] - The gaming sector is expected to benefit from AI advancements, with recommendations to focus on companies with strong platform attributes, including Xindong Company and others [4]