[Performance Summary](index=1&type=section&id=Performance%20Summary) [Key Financial Indicators](index=1&type=section&id=Key%20Financial%20Indicators) In H1 2025, total revenue decreased by 6.0% to RMB 3.83 billion, while operating profit rose 40.8% to RMB 840 million and profit for the period surged 132.4% to RMB 1.88 billion, primarily due to a deferred tax credit, with adjusted net profit increasing 121.0% to RMB 1.95 billion Financial Summary for the Six Months Ended June 30, 2025 | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,827,117 | 4,070,493 | -6.0% | | Gross Profit | 1,392,485 | 1,425,731 | -2.3% | | Operating Profit | 844,506 | 599,933 | +40.8% | | Profit for the Period | 1,882,142 | 809,949 | +132.4% | | Adjusted Net Profit | 1,946,353 | 880,749 | +121.0% | - The significant increase in profit for the period was primarily due to the recognition of a deferred income tax credit of **RMB 849 million**, arising from a wholly-owned subsidiary's tax losses carried forward[3](index=3&type=chunk)[22](index=22&type=chunk) [Non-IFRS Measures Explanation](index=2&type=section&id=Non-IFRS%20Measures) The company utilizes adjusted operating profit and adjusted net profit as supplementary financial measures to exclude non-cash items, aiming to better reflect core operating performance and enable comparative analysis, with a reminder that these metrics should not replace IFRS-reported results - The company uses non-IFRS measures, such as adjusted operating profit and adjusted net profit, to eliminate the impact of certain non-cash items like share-based compensation expenses, providing a clearer view of operating performance[4](index=4&type=chunk) [Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=3&type=section&id=Business%20Review%20and%20Outlook) In H1 2025, the company focused on high-quality development of its core music ecosystem, enhancing user stickiness with DAU/MAU ratio stable above 30%, while member subscription revenue grew 15.2%, boosting gross margin to 36.4%, with future strategies centered on deepening content, product innovation, and community building to improve user monetization and profitability - User engagement metrics improved, with the daily active users to monthly active users ratio stable above **30%**, and increased listening time on mobile devices[6](index=6&type=chunk) - Member subscription revenue increased by **15.2%** year-over-year, primarily driven by the expansion of the subscriber base[8](index=8&type=chunk) - Gross margin improved from **35.0%** in the prior period to **36.4%**, benefiting from business scale expansion, strong monetization, and cost optimization[8](index=8&type=chunk)[22](index=22&type=chunk) - Future strategic priorities include expanding differentiated content, optimizing user experience, fostering community ecosystems, enhancing user monetization, and continuously optimizing costs[9](index=9&type=chunk)[11](index=11&type=chunk) [Detailed Core Strategies](index=4&type=section&id=Detailed%20Core%20Strategies) The company made significant progress in core strategy execution, expanding its copyrighted music library through collaborations with Korean labels and Chinese artists, fostering an independent musician ecosystem with over **819,000** registered artists, and enhancing user experience through product innovations like 'Shenguang Player' and extending services to multi-terminal scenarios including in-car systems - Expanded copyrighted content through collaborations with Korean labels RBW and StarShip Entertainment, and renowned Chinese musicians such as Li Jian and Lay Zhang[10](index=10&type=chunk) - As of June 2025, the platform had over **819,000** registered independent musicians who uploaded approximately **4.8 million** music tracks[12](index=12&type=chunk) - Self-produced rap tracks like 'Dilemma' and 'Mochouxiang' gained market popularity, demonstrating the company's strength in unique content creation[15](index=15&type=chunk) - Enhanced user experience through product innovations, such as launching the 'Shenguang Player' to improve audio-visual enjoyment, and expanding music consumption scenarios to in-car systems of brands like Jetour and Lynk & Co[20](index=20&type=chunk)[21](index=21&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) [Financial Performance Overview](index=8&type=section&id=Financial%20Performance%20Overview) During the reporting period, total revenue was RMB 3.83 billion, gross profit was RMB 1.39 billion, and gross margin expanded from 35.0% to 36.4%, with operating profit increasing to RMB 840 million primarily due to reduced promotion and advertising expenses, while net profit reached RMB 1.88 billion, up 132.4%, including RMB 849 million in deferred tax credits, and adjusted net profit was RMB 1.95 billion, up 121.0% - Gross margin expanded from **35.0%** in the prior period to **36.4%**, primarily due to increased online music service revenue and improved operational efficiency[22](index=22&type=chunk) - Operating profit increased from **RMB 600 million** to **RMB 840 million**, mainly due to a more prudent promotion strategy resulting in reduced promotion and advertising expenses[22](index=22&type=chunk) - Net profit significantly increased from **RMB 810 million** to **RMB 1.88 billion**, primarily due to the recognition of **RMB 849 million** in deferred income tax assets[22](index=22&type=chunk) [Revenue Analysis](index=8&type=section&id=Revenue%20Analysis) Total revenue decreased by 6.0% year-over-year, primarily due to a significant 43.1% decline in social entertainment services and other revenue resulting from a prudent operating strategy, while core online music service revenue showed strong performance, growing 15.9% to RMB 2.97 billion, with member subscription services being a key driver, reflecting healthy core business growth Revenue Composition (For the Six Months Ended June 30) | Revenue Category | 2025 (RMB millions) | 2024 (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | Online Music Services | 2,967.3 | 2,559.7 | +15.9% | | Social Entertainment Services and Others | 859.8 | 1,510.8 | -43.1% | | **Total** | **3,827.1** | **4,070.5** | **-6.0%** | - Member subscription service revenue within online music services increased from **RMB 2.14 billion** to **RMB 2.47 billion**, serving as the primary driver for online music service growth[23](index=23&type=chunk) [Cost and Expense Analysis](index=8&type=section&id=Cost%20and%20Expense%20Analysis) The company achieved significant cost control, with operating costs decreasing by 7.9% year-over-year, primarily due to reduced revenue sharing fees from lower social entertainment revenue, while sales and marketing expenses sharply declined by 55.8% reflecting a more prudent promotion strategy, and R&D expenses slightly decreased by 4.2%, indicating improved operational efficiency - Operating costs decreased by **7.9%** year-over-year to **RMB 2.43 billion**, primarily due to reduced revenue sharing fees as social entertainment service revenue declined[24](index=24&type=chunk) - Sales and marketing expenses significantly decreased by **55.8%** year-over-year to **RMB 163 million**, mainly due to reduced promotion and advertising expenses[26](index=26&type=chunk) - Research and development expenses decreased by **4.2%** year-over-year to **RMB 379 million**, primarily due to improved operational efficiency from enhanced utilization of technological resources[28](index=28&type=chunk) [Non-IFRS Measures Reconciliation](index=10&type=section&id=Non-IFRS%20Measures%20Reconciliation) During the reporting period, adjusted operating profit was RMB 905 million, up 35.0% year-over-year, and adjusted net profit was RMB 1.946 billion, up 121.0%, with these adjustments primarily excluding the impact of approximately **RMB 60.85 million** in share-based compensation expenses (non-cash items) Reconciliation of Operating Profit and Net Profit to Adjusted Measures (For the Six Months Ended June 30) | Indicator (RMB thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Operating Profit | 844,506 | 599,933 | | Add: Share-based compensation expenses | 60,854 | 70,917 | | **Adjusted Operating Profit** | **905,360** | **670,850** | | Profit for the period attributable to equity holders of the Company | 1,885,499 | 809,832 | | Add: Share-based compensation expenses | 60,854 | 70,917 | | **Adjusted Net Profit** | **1,946,353** | **880,749** | [Unaudited Consolidated Financial Statements](index=11&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) [Consolidated Statement of Comprehensive Income](index=11&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported revenue of RMB 3.83 billion, gross profit of RMB 1.39 billion, operating profit of RMB 840 million, and profit for the period of RMB 1.88 billion, with basic earnings per share attributable to equity holders of the company at RMB 8.96 and diluted earnings per share at RMB 8.85, representing significant growth from the prior period Key Data from Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30) | Indicator (RMB thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 3,827,117 | 4,070,493 | | Gross Profit | 1,392,485 | 1,425,731 | | Operating Profit | 844,506 | 599,933 | | Profit for the Period | 1,882,142 | 809,949 | | Basic Earnings Per Share (RMB) | 8.96 | 3.88 | | Diluted Earnings Per Share (RMB) | 8.85 | 3.84 | [Consolidated Statement of Financial Position](index=13&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased to RMB 15.29 billion, total liabilities decreased to RMB 3.17 billion, and total equity rose to RMB 12.12 billion, indicating a robust financial position, with asset growth primarily driven by the recognition of RMB 849 million in deferred income tax assets and increased bank deposits, and cash and cash equivalents at RMB 2.08 billion Summary of Consolidated Statement of Financial Position | Indicator (RMB thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 2,475,532 | 1,630,064 | | Current Assets | 12,811,898 | 11,952,185 | | **Total Assets** | **15,287,430** | **13,582,249** | | Current Liabilities | 3,068,883 | 3,312,085 | | **Total Liabilities** | **3,170,808** | **3,400,736** | | **Total Equity** | **12,116,622** | **10,181,513** | - Non-current assets significantly increased, primarily due to the addition of **RMB 849 million** in deferred income tax assets[39](index=39&type=chunk) [Notes to Financial Statements](index=15&type=section&id=Notes%20to%20Financial%20Statements) [Revenue and Segment Information](index=16&type=section&id=Revenue%20and%20Segment%20Information) The company's revenue primarily derives from online music services and social entertainment services and others, with online music service revenue at RMB 2.97 billion and social entertainment services and other revenue at RMB 860 million during the reporting period, operating as a single segment with most revenue and non-current assets from China, and having one major customer A contributing over 10% of total revenue - The company's business is operated and managed as a single segment, thus no separate segment information is presented[47](index=47&type=chunk) - In H1 2025, customer A contributed **RMB 501 million** in revenue, accounting for **13.1%** of total revenue, becoming a major customer[49](index=49&type=chunk) [Taxation](index=17&type=section&id=Taxation) During the reporting period, the company recorded an income tax credit of RMB 814 million, compared to an expense of RMB 3.63 million in the prior period, primarily due to the recognition of RMB 849 million in deferred tax assets for a wholly-owned subsidiary's accumulated tax losses, and also recognized a top-up tax expense of RMB 30.7 million under OECD Pillar Two rules - The company recorded a total income tax credit of **RMB 814 million**, primarily from the recognition of **RMB 849 million** in deferred income tax assets[51](index=51&type=chunk)[56](index=56&type=chunk) - Due to the implementation of Pillar Two rules in Hong Kong, the Group recognized a top-up tax expense of **RMB 30.7 million** to ensure the effective tax rate is not lower than the **15%** global minimum tax rate[55](index=55&type=chunk) [Earnings Per Share](index=18&type=section&id=Earnings%20Per%20Share) Earnings per share significantly improved due to substantial net profit growth, with basic earnings per share at **RMB 8.96** for the six months ended June 30, 2025, a significant increase from **RMB 3.88** in the prior period, and diluted earnings per share at **RMB 8.85**, higher than **RMB 3.84** in the prior period Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Basic Earnings Per Share (RMB) | 8.96 | 3.88 | | Diluted Earnings Per Share (RMB) | 8.85 | 3.84 | [Corporate Governance and Other Information](index=20&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Compliance with Corporate Governance Code](index=20&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with all applicable provisions of the Corporate Governance Code during the reporting period, with one deviation: Mr. Ding Lei holds both Chairman and CEO roles, which the Board believes ensures consistent leadership and efficient strategic planning, with all major decisions made in consultation with the Board, including independent non-executive directors, without compromising power balance - The company deviates from Code Provision C.2.1 of the Corporate Governance Code, as the roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Ding Lei[65](index=65&type=chunk) - The Board believes that Mr. Ding Lei's dual role ensures leadership stability and decision-making efficiency, with power balance safeguarded through collective Board decisions[65](index=65&type=chunk) [Use of Proceeds and Dividends](index=21&type=section&id=Use%20of%20Proceeds%20and%20Dividends) As of June 30, 2025, approximately **HKD 3.16 billion** in net proceeds from the company's December 2021 global offering remained unutilized, held as short-term bank deposits, and are expected to be deployed within the next 18 months, while the Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - Approximately **HKD 3.16 billion** in net proceeds from the 2021 global offering remained unutilized as of the end of the reporting period, expected to be deployed within the next **18 months**[68](index=68&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[69](index=69&type=chunk)

Group 1 - MSCI announced the results of its index review for August 2025, including the addition of 14 stocks to the MSCI China Index and the removal of 17 stocks, effective after the market close on August 26 [1] - The adjustment reflects a significant increase in the inclusion of Hong Kong stocks, indicating strong recent performance in sectors such as technology, innovative pharmaceuticals, and new consumption [1] - Following the index changes, related stocks are expected to attract more incremental capital [1] Group 2 - Standard & Poor's maintained China's sovereign credit rating at "A+" with a stable outlook as of August 7 [1] - Several foreign institutions, including Deutsche Bank, Swiss Pictet Asset Management, Lobo Investment, and Legg Mason, have expressed positive views or overweight positions on Chinese assets recently [1]

Group 1 - The core viewpoint of the article highlights the growth and development of NetEase Cloud Music as a leading music community platform, emphasizing its focus on music discovery and sharing, and its significant user base of over 200 million monthly active users [2] - The company has a concentrated shareholding structure, with NetEase being the largest shareholder and founder Ding Lei holding nearly 30% of the shares as of the first half of 2025 [3] - The company has successfully reduced content costs, leading to an increase in gross margin to 33.7% in 2024, with a notable decrease in content service costs as a percentage of revenue from 98% in 2020 to 50% in 2024 [8] Group 2 - The music streaming industry is entering a mature phase, with the recorded music market in China growing at a rate of 9.6% year-on-year in 2024, making it the fifth largest market globally [9] - The complexity of the Chinese music industry is highlighted, with a fragmented copyright landscape and a long digital music industry chain involving multiple stakeholders [10] - The cessation of exclusive copyright models has led to a more competitive environment, with Tencent Music integrating mainstream copyrights and NetEase Cloud Music expanding its music library from 80 million in 2021 to 150 million in 2023 [12]

Group 1: Podcast Industry Growth - The podcast format, originally from abroad, is transitioning from niche culture to mainstream in China, with platforms like Xiaohongshu providing significant traffic support for video podcasts [1] - Xiaohongshu will offer random exposure benefits ranging from 50,000 to 300,000 views for videos tagged with 随时随地视频播客, encouraging more creators to participate [1] - The podcast industry is seeing increased involvement from major platforms, with traditional audio platforms like Ximalaya and Lizhi, as well as music streaming services like QQ Music and NetEase Cloud Music, entering the podcast space [4][9] Group 2: Platform Initiatives and Trends - Xiaoyuzhou, a leading podcast platform, has experienced significant growth, adding 46,196 new podcast programs and 484,134 episodes in 2024, indicating the expanding influence and commercial value of podcasts [4] - Bilibili has launched a "Video Podcast Out of Circle Plan," which includes a 1 billion-level traffic boost and free recording spaces in major cities, aiming to support creators transitioning to video [9] - The audience for Bilibili's video podcasts has grown to over 40 million, with viewing time increasing from 6.9 billion minutes to 25.9 billion minutes, a growth of over 270% [9] Group 3: AI Integration in Podcasting - Bilibili's internal AI tool, codenamed "H," aims to streamline the video creation process for podcast creators, reducing content generation time significantly [10] - ByteDance and Tencent are also developing AI podcast tools, with ByteDance's model enabling quick transformation of text into dialogue-style podcasts, while Tencent's AI podcast feature allows users to convert various content formats into audio [11][12] - The competition between content platforms and tech companies highlights a shift towards standardizing podcast production, raising questions about the future of human-centric podcast content [12]

Core Viewpoint - MSCI announced the results of its quarterly index review, which includes the addition and removal of several stocks in the MSCI China Index and MSCI Global Standard Index, effective after market close on August 26 [1][7]. Group 1: New Additions to MSCI China Index - The MSCI China Index added 14 stocks, including Horizon Robotics-W, Lao Pu Gold, NetEase Cloud Music, Sangfor Technologies, and Citic Bank [1][3]. - Among the newly added stocks, Citic Bank is the largest by market capitalization in the MSCI Emerging Markets Index [1]. Group 2: Stocks Removed from MSCI China Index - A total of 17 stocks were removed from the MSCI China Index, including Yingjia Gongjiu, Oriental Yuhong, Supor, and Hisense Home Appliances [1][9][10]. Group 3: Implications of Index Changes - The inclusion of new stocks in the MSCI China Index is expected to attract significant passive investment flows on the effective date [7]. - The MSCI China A-Shares Onshore Index also saw adjustments, adding five stocks, including Citic Bank and Giant Network [10].

Core Viewpoint - MSCI announced the results of its August index quarterly review, which includes the addition and removal of several stocks in the MSCI China Index, reflecting recent strong performance in sectors such as technology, innovative pharmaceuticals, and new consumption [1]. Summary by Category Additions to MSCI China Index - 14 stocks were added to the MSCI China Index, including notable companies such as: - Lao Pu Gold (06181) - WuXi AppTec (02268) - Meitu (01357) - NetEase Cloud Music (09899) - 3SBio (01530) - Horizon Robotics (09660) - Global Data (09698) - Kintor Pharmaceutical (06990) - 5 additional A-shares including: - Zhinan (300803.SZ) - CITIC Bank (601998.SH) - Giant Network (002558.SZ) - Ailis (688578.SH) - Jingwang Electronics (603228.SH) [1][3][5]. Removals from MSCI China Index - 17 stocks were removed from the MSCI China Index, including: - Hisense Home Appliances (00921) - Zhongsheng Holdings (00881) - Yingjia Wine (603198.SH) - Oriental Yuhong (002271.SZ) - 13 additional stocks including: - Supor (002032.SZ) - Chihong Zn & Ge (600497.SH) - Morning Light Co. (603899.5H) - and others [1][3][5]. Global Index Changes - The MSCI Global Standard Index added 42 stocks and removed 56 stocks, with the largest new additions being Rocket Lab (USA), SoFi Technologies (USA), and Affirm Holdings (USA) [5]. - The top three new additions to the MSCI Emerging Markets Index include CITIC Bank, Dian Swastatika Sentosa, and Lao Pu Gold [5].

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: 2025年7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: 2025年8月5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 ...

Core Viewpoint - NetEase Cloud Music's stock rose over 5%, indicating strong market performance and investor confidence in its growth potential [1] Group 1: Company Performance - As of the latest report, NetEase Cloud Music's stock price reached 258.6 HKD with a trading volume of 422 million HKD [1] - According to Dongwu Securities, by June 2025, the iOS Daily Active Users (DAU) to Monthly Active Users (MAU) ratio for NetEase Cloud Music is projected to reach 42%, second only to Spotify's 50%, indicating high user engagement [1] - The company has successfully maintained low customer acquisition costs and user churn rates, contributing to sustained user growth and extended growth duration [1] Group 2: Market Position and Strategy - NetEase Cloud Music is focusing on its core music business and continuously optimizing product experience, which is expected to drive user growth [1] - Compared to industry leaders, NetEase Cloud Music has shown excellent growth in its paid user rate, although its Average Revenue Per Paying User (ARPPU) remains significantly lower than the industry average, indicating room for improvement in monetization [1] - The company is targeting the consumption potential of younger demographics and is enhancing its offerings through "differentiated content + exclusive rights + cross-scenario interaction," which is expected to narrow the ARPU gap with leading platforms and expand its growth boundaries [1]

Core Viewpoint - NetEase Cloud Music's stock rose over 5%, closing at 258.6 HKD with a trading volume of 422 million HKD, indicating strong market interest and confidence in the company's growth potential [1] Group 1: User Engagement and Growth - According to Dongwu Securities, by June 2025, NetEase Cloud Music's iOS DAU/MAU is expected to reach 42%, second only to Spotify's 50%, reflecting high user engagement and stickiness [1] - The company benefits from social interaction, positive feedback loops, and brand effects, which have led to lower customer acquisition costs and user churn rates, driving continuous user growth and extending growth duration [1] Group 2: Market Position and Revenue Potential - Comparatively, NetEase Cloud Music shows excellent growth in paid user rates, although its ARPPU (Average Revenue Per Paying User) remains significantly lower than industry standards, indicating substantial room for improvement in monetizing individual users [1] - The company is focusing on the younger demographic with strong consumption potential and is enhancing its offerings through "differentiated content + exclusive rights + cross-scenario interaction," which is gradually narrowing the ARPU (Average Revenue Per User) gap with leading platforms, potentially broadening growth boundaries and entering a new cycle of rising payment metrics [1]

东吴证券发布研报称，根据Sensor Tower，2025年6月网易云音乐IOS端DAU/MAU达42%，仅次于 Spotify的50%水平，用户粘性相对较高。该行认为，社交、互动正反馈与品牌效应强化了产品的用户粘 性，实现了较低的获客成本和用户流失率，驱动用户规模持续增长，成长久期得以延长。公司聚焦音乐 主业持续优化产品体验，有望驱动用户规模增长，对标国内外音乐流媒体平台付费墙较低商业化空间广 阔。 招商证券指出，对比国内外行业龙头，网易云在付费率增速上表现优秀，但目前ARPPU值仍显著低于 业内水平，单用户价值挖掘存在明显提升空间，公司聚焦消费潜力较强的年轻群体，且深化"差异化内 容+专属权益+跨场景联动"，正逐步缩小与行业头部平台的ARPU值差距，有望进一步拓宽增长边界， 完善生态闭环，进入新一轮付费指标上升周期。 智通财经APP获悉，网易云音乐(09899)尾盘涨超5%，截至发稿，涨5.64%，报258.6港元，成交额4.22亿 港元。 ...