Core Viewpoint - The competition in the online music industry is intensifying, with Tencent Music and NetEase Cloud Music focusing on monetizing fan engagement through emotional consumption and premium memberships, while new challenger Soda Music, backed by Douyin, is rapidly gaining market share [1][2][3]. Group 1: Financial Performance - Tencent Music reported significant revenue and profit growth, with a 17.1% increase in subscription revenue to 4.38 billion yuan, and a 46.9% increase in non-subscription revenue [15]. - NetEase Cloud Music experienced a 6% decline in revenue but a remarkable 132.4% increase in profit during the same period [16]. - Tencent Music's paid user count reached 124 million, up 6.3% year-on-year, with an ARPPU of 11.7 yuan, reflecting a 9.3% increase [8]. Group 2: User Engagement Strategies - Both Tencent Music and NetEase Cloud Music are focusing on monetizing their platforms by targeting more generous users through emotional value and premium membership offerings [5][6]. - Tencent Music has introduced interactive community features, such as Bubble, allowing fans to interact with their idols for a fee, enhancing user engagement [12]. - The platforms are also expanding their K-pop content libraries to attract dedicated fan bases, with Tencent Music investing 1.29 billion yuan in acquiring a stake in SM Entertainment [10]. Group 3: Competitive Landscape - Soda Music, leveraging Douyin's vast user base, has rapidly approached 100 million monthly active users, while Tencent Music has seen a decline in its monthly active users for 15 consecutive quarters [3][19]. - The competition is shifting towards offline events, with Tencent Music leading in organizing live performances and events, which are crucial for revenue generation [33][30]. - The dynamics of the music industry are changing, with a focus on short-form content and social media platforms like Douyin becoming essential for music promotion [23][27]. Group 4: Future Outlook - The online music market is expected to evolve, with the importance of live performances and international expansion becoming more pronounced for platforms like Tencent Music and Soda Music [32][36]. - The competition may not result in a three-way stalemate, as the strategies of Tencent Music and Soda Music align closely, potentially sidelining NetEase Cloud Music [39].

Group 1 - The core point of the article is that NetEase Cloud Music has officially stated that it does not have a "visitor record" feature, addressing user concerns about privacy [1][5] - Users can visit profiles and artist pages without generating any visitor records or other forms of tracking [1][5] - The platform emphasizes its commitment to user privacy, adhering to principles of user awareness, consent, and minimal necessity in data protection [5] Group 2 - There was a notable increase in user inquiries on social media regarding the potential introduction of a visitor record feature on NetEase Cloud Music [5] - A previous post from March 2024 raised questions about a symbol on the platform that users believed might indicate visitor tracking [5]

Core Viewpoint - The company reported a decline in revenue for 25H1 but showed significant growth in adjusted net profit, primarily due to deferred tax benefits and a strategic focus on online music business growth [1][2]. Financial Performance - The company achieved revenue of 3.83 billion yuan in 25H1, a year-over-year (yoy) decrease of 6.0% - Gross profit was 1.39 billion yuan, with a yoy decline of 2.3%, but the gross margin increased by 1.4 percentage points to 36.4% - Adjusted operating profit reached 910 million yuan, a yoy increase of 35.0% - Adjusted net profit was 1.95 billion yuan, reflecting a yoy increase of 121.0%, mainly due to the recognition of deferred tax credits amounting to 850 million yuan [1]. Cost Management - The company adopted a more prudent promotional strategy, leading to a reduction in promotional and advertising expenses - Sales, management, and R&D expenses were 163 million, 93 million, and 379 million yuan respectively, with yoy changes of -55.8%, +3.6%, and -4.2% - The sales expense ratio, management expense ratio, and R&D expense ratio decreased by 4.8 percentage points, increased by 0.2 percentage points, and decreased by 0.2 percentage points to 4.3%, 2.4%, and 9.9% respectively [1]. Business Focus - The online music business generated revenue of 2.967 billion yuan in 25H1, a yoy increase of 15.9% - Membership subscription revenue was 2.47 billion yuan, up 15.2% yoy, driven by strengthened music content and product optimization - Revenue from social entertainment services and other sources was 860 million yuan, down 43.1% yoy, due to cautious management of social entertainment business and ongoing optimization of business structure [1][2]. Content Ecosystem - As of June 2025, the number of registered independent musicians on the platform exceeded 819,000, with approximately 4.8 million tracks uploaded, creating a vast original content library - The company has demonstrated significant incubation capabilities, with songs produced in offline creation camps since 2021 accumulating over 6 billion total plays [1]. Strategic Partnerships - In 25H1, the company signed contracts with Korean labels RBW and StarShip to enrich its K-Pop content - Collaborations with top artists like Li Jian and Zhang Yixing were established, along with deep partnerships with Wang Jiaer for new releases [2]. Product Innovation - The company has simplified product interfaces and improved music recommendation systems, enhancing user experience and engagement - New features such as "Godlight Player" and "Music Card" were introduced, contributing to increased user activity with daily active users/monthly active users ratio remaining above 30% [2]. Future Revenue Projections - Projected revenues for the company are 7.94 billion, 8.60 billion, and 9.46 billion yuan for 2025E, 2026E, and 2027E respectively, with corresponding yoy changes of -0.1%, 8.3%, and 10.0% - Non-GAAP net profits are expected to be 2.91 billion, 2.50 billion, and 2.89 billion yuan for the same years, with yoy changes of 71.0%, -14.1%, and 15.8% respectively [3].

Core Viewpoint - NetEase Cloud Music has officially stated that it does not have a "visitor record" feature, ensuring that user privacy is maintained during interactions on the platform [1][4]. Group 1 - Multiple users inquired on social media about the existence of a visitor record feature on NetEase Cloud Music, prompting the company's response [4]. - The official statement from NetEase Cloud Music confirmed that actions such as visiting user or artist profiles do not generate visitor records or any other form of tracking [1][4]. - The platform emphasizes its commitment to user privacy, adhering to principles of user awareness, consent, and minimal necessity in data protection [4]. Group 2 - In March 2024, a user raised concerns about a small eye icon on the dynamic sharing page, questioning its meaning, which indicates ongoing user interest in privacy features [4]. - A customer service representative from NetEase Cloud Music acknowledged the inquiry and mentioned that a small-scale test for dynamic view counts had been completed, but it would not be displayed further [4].

Investment Rating - The report maintains a "Buy" rating for NetEase Cloud Music, indicating a positive outlook for the company's stock performance in the coming months [7]. Core Insights - The core music business shows steady growth, with a rich content ecosystem continuously expanding [3]. - In H1 2025, the company reported revenues of 3.83 billion yuan, a year-over-year decrease of 6.0%, while adjusted net profit surged by 121.0% to 1.95 billion yuan, primarily due to deferred tax credits [4][5]. - The online music segment generated 2.967 billion yuan in revenue, reflecting a year-over-year increase of 15.9%, driven by a rise in paid subscribers [4]. Financial Performance - The company achieved a gross profit of 1.39 billion yuan in H1 2025, with a gross margin of 36.4%, an increase of 1.4 percentage points year-over-year [3]. - Sales, management, and R&D expenses were reported at 163 million, 93 million, and 379 million yuan respectively, with significant reductions in sales expenses by 55.8% [3]. - Revenue projections for 2025E, 2026E, and 2027E are 7.94 billion, 8.60 billion, and 9.46 billion yuan, with corresponding year-over-year growth rates of -0.1%, 8.3%, and 10.0% [7]. Content Ecosystem - As of June 2025, the number of registered independent musicians exceeded 819,000, contributing to a vast library of approximately 4.8 million tracks [5]. - The company has signed contracts with various labels to enhance its copyright library, including partnerships with Korean labels and collaborations with prominent artists [5]. Product Innovation - Continuous product innovation has improved user experience, with features like the "Godlight Player" and enhanced music recommendation systems [6]. - The platform maintains a daily active user to monthly active user ratio of over 30%, indicating strong user engagement [6].

Core Points - NetEase Cloud Music has officially stated that it does not have a "visitor record" feature, ensuring that user interactions such as visiting user or artist profiles do not generate any visitor records [2][5] - The platform emphasizes its commitment to user privacy and security, adhering to principles of "user awareness, user consent, and minimum necessity" in its privacy protection policies [5] - Previous user inquiries about a potential visitor record feature have been noted, with the company indicating that any related functionalities are still under evaluation and not currently available [5]

Core Points - NetEase Cloud Music emphasizes that it does not have a "visitor record" feature, ensuring user privacy when browsing others' profiles [1][3] - The platform reassures users that actions such as visiting user or artist profiles do not generate visitor records or any other form of tracking [3] - NetEase Cloud Music prioritizes user privacy and adheres to principles of "user awareness, user consent, and minimum necessity" in its privacy protection policies [3] User Privacy Assurance - The company highlights its commitment to safeguarding user privacy and will not disclose any personal information without authorization [3] - Users are encouraged to provide feedback and suggestions to enhance their experience on the platform [3]

Group 1 - The core point of the article is that NetEase Cloud Music officially stated it does not have a "visitor record" feature, ensuring user privacy and security [1][2] - Users can visit profiles and music artist pages without generating any visitor records or other forms of tracking [1][2] - The platform emphasizes its commitment to user privacy, adhering to principles of user awareness, consent, and minimal necessity in data protection [2] Group 2 - There was a public inquiry on social media regarding the potential introduction of a visitor record feature on NetEase Cloud Music, which sparked significant attention [2] - In March 2024, a user raised a question about a small eye icon on the dynamic sharing page, which led to further speculation about visitor records [2] - A customer service representative from NetEase Cloud Music acknowledged the inquiry and mentioned that a small-scale test for dynamic reading volume had been completed, but it would not be displayed [2]

Core Viewpoint - NetEase Cloud Music emphasizes that it does not have a "visitor record" feature, ensuring user privacy and data protection [1] Group 1 - NetEase Cloud Music clarifies that actions such as visiting user profiles or musician pages do not generate visitor records [1] - The platform prioritizes user privacy and adheres to the principles of "user awareness, user consent, and minimum necessity" in its privacy protection policies [1] - The company will not disclose any personal information without authorization [1]

Core Viewpoint - Daiwa's report indicates that NetEase Cloud Music (09899) is expected to outperform in the first half of 2025, driven by a one-time tax benefit and improved operating profit margins [1] Financial Performance - The company's gross margin for online music services is anticipated to exceed expectations, alongside lower-than-expected marketing expenses [1] - Daiwa has raised its net profit forecasts for the next two years by 117% and 42% respectively [1] Rating and Target Price - Daiwa maintains a "Outperform" rating for NetEase Cloud Music, increasing the target price from 105 HKD to 310 HKD [1] - The new target price corresponds to a 27 times earnings forecast for 2026 [1]