Core Viewpoint - The recent withdrawal of NetEase games from OPPO's app store highlights a growing tension between game developers and traditional Android distribution channels, primarily due to high revenue sharing models that limit profit margins for developers [1][4][15]. Group 1: Game Withdrawal from OPPO - NetEase games, including popular titles like "Onmyoji: Yokai House" and "Fantasy Westward Journey," will cease operations on OPPO channels starting from November 2024, with a complete withdrawal expected by October 2025 [1]. - This trend of withdrawing from OPPO channels began last year and reflects a broader industry shift away from traditional Android distribution methods [1][4]. Group 2: Revenue Sharing Issues - The high revenue sharing model, often referred to as "Android tax," has become a critical issue for game developers, with reports indicating that Android channels take up to 50% of revenue, significantly higher than the 30% typically charged by platforms like Apple's App Store [6][15]. - The "hardcore alliance" established by major Android manufacturers in 2014 set a standard revenue share of 50% for game developers, which has persisted in the industry [8]. Group 3: Alternative Distribution Models - Developers are increasingly exploring alternative distribution methods, such as using platforms like TapTap, which do not charge revenue shares, allowing for greater profitability [10][12]. - Successful titles like "Genshin Impact" and "Awakening of Nations" have demonstrated that it is possible to achieve significant revenue without relying on traditional Android channels [12][14]. Group 4: Industry Evolution - The gaming industry is transitioning from a "traffic-driven" model to a "content-driven" model, where the quality of the game itself becomes the primary factor in attracting users [14]. - Despite the shift, the costs associated with customer acquisition through alternative channels have increased, as seen in NetEase's substantial advertising expenditures [14][15].

11月20日，网易（Nasdaq：NTES、HKEX：9999）发布截至9月30日的2025年第三季度财报，该季度公 司净营收为284亿元，同比增长8.2%；利润也同比增加，归属于网易公司股东的净利润为86亿元，上年 同期为65亿元。而不按美国通用会计准则，归属于网易公司股东的净利润为95亿元，上年同期为75亿 元。 按业务划分，第三季度网易的游戏及相关增值服务净收入为233亿元，同比增加11.8%；网易有道净收 入为16亿元，同比增加3.6%；网易云音乐净收入为20亿元，同比减少1.8%；创新及其他业务净收入为 14亿元，同比减少18.9%。 然而，关于具体技术细节与落地场景，丁磊并未展开说明。据了解，网易有道在"AI原生"战略深化与业 务结构聚焦的推动下，2025年前三季度累计经营利润同比增长近150%，在线营销服务净收入与AI订阅 服务销售额均创历史新高。 （文章来源：中国经营报） "对于现有的长青项目，我们要求团队持续优化、精益求精；对于具备长青潜力的新项目，我们将重点 投入、加大支持，不断打磨产品品质。同时，对于未能跟上市场节奏和用户需求的团队，我们会果断调 整，确保主干业务的茁壮成长。"丁磊说。 ...

Core Insights - NetEase's revenue growth in Q3 2025 was primarily driven by its game "Evergreen Games," achieving a net income of 28.4 billion yuan, a year-on-year increase of 8.2% [2] - The company reported a net profit of 9.5 billion yuan under non-GAAP standards, reflecting a significant year-on-year growth of 33.3% [2] Financial Performance - In Q3 2025, NetEase's net income reached 28.4 billion yuan, compared to 27.9 billion yuan in the previous quarter and 26.2 billion yuan in the same quarter last year [3] - Revenue from games and related services was 23.3 billion yuan, with a 2.2% increase from the previous quarter and a 11.5% increase year-on-year [3] - Online games accounted for approximately 97.6% of the revenue in this segment, up from 97.1% in the previous quarter and 96.8% year-on-year [3] Game Performance - The increase in online game revenue was attributed to self-developed games like "Dream of the Westward Journey" and "Reverse Water Cold," as well as several agency games [3] - "Dream of the Westward Journey" achieved a record high of 3.58 million concurrent players, marking a strong performance in long-term game operation [3][4] - The launch of the "Dream of the Westward Journey" free play server aimed to attract long-lost users and new players by simplifying gameplay and removing time-based charges [4][5] New Game Development - NetEase introduced several new games in Q3, including "Fate: Stars" and "Reverse Water Cold," which performed well in both domestic and international markets [6] - The company is focusing on the upcoming game "Forgotten Sea," which is being developed with a self-built engine and will be available on multiple platforms [7] Industry Context - Tencent's gaming revenue in Q3 was 63.6 billion yuan, with significant growth in both domestic and international markets, highlighting the competitive landscape [7] - Analysts noted that while NetEase's older games are evolving into IP extensions, Tencent's established titles continue to perform strongly, indicating differing strategies in a saturated market [8] Internal Adjustments - Following the return of CEO Ding Lei, NetEase has undergone organizational adjustments, including staff changes aimed at enhancing focus and efficiency [9][10] - The company is prioritizing long-term projects and optimizing resources towards successful teams while being decisive about underperforming ones [10]

Group 1 - NetEase reported Q3 revenue of 28.4 billion, a year-on-year increase of 8.2%, and an adjusted net profit of 9.5 billion, up 13% year-on-year, indicating steady growth despite a slow pace [1] - High valuations for NetEase are attributed to its consistent performance, which contrasts with more aggressive competitors that have struggled [1] - Goldman Sachs significantly raised its copper price forecast, predicting a decade-long bull market due to limited existing copper mine supply, with a projected timeline of ten years to achieve supply-demand balance [1]

Core Insights - NetEase Inc reported mixed fiscal third-quarter results with a revenue increase of 8.2% year-on-year to $3.98 billion, which missed the analyst consensus estimate of $4.11 billion [1] - The adjusted EPADS of $2.07 exceeded the analyst consensus estimate of $1.88 [1] Company Performance - CEO William Ding highlighted the company's solid execution and healthy growth in China, emphasizing their innovation capabilities and exceptional gaming experiences [2] - NetEase shares gained 1% to $135.26 following the earnings announcement [2] Analyst Ratings and Price Targets - Benchmark analyst Fawne Jiang maintained a Buy rating on NetEase and raised the price target from $145 to $158 [5] - Barclays analyst Jiong Shao maintained an Equal-Weight rating and raised the price target from $120 to $135 [5]

Group 1 - The article discusses the Asia Value & Moat Stocks research service, which targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1][2] - The 3rd quarter financial metrics of a company were below market expectations, primarily due to delays in sales recognition and growth investments in new games [1] Group 2 - The Value Pendulum is highlighted as an Asian equity market specialist with over a decade of experience, particularly in the Hong Kong market, focusing on deep value balance sheet bargains and wide moat stocks [2]

Group 1 - The Asia Value & Moat Stocks research service targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1][2] - The 3rd quarter financial metrics of a company did not meet market expectations, primarily due to delays in sales recognition and growth investments for new games [1]

Core Insights - The rapid growth of digitalization has led to an explosive demand for software application development, with traditional methods facing challenges such as long cycles, high costs, and technical barriers [1][3] - Low-code development has emerged as a solution, with NetEase Low-Code becoming a preferred choice for many enterprises due to its powerful features and performance [1][3] - The combination of NetEase Low-Code and the unique offerings of the Lisi brand provides robust support for enterprises' digital transformation [1][4] Low-Code Platform - NetEase Low-Code allows for rapid application development through a visual interface and minimal coding, significantly enhancing development efficiency compared to traditional methods [3] - Traditional development can take months or even years, while using NetEase Low-Code can reduce project completion time from six months to just one month [3] - The platform lowers technical barriers, enabling non-professional developers to participate in application development, thus integrating business and technology [3] - NetEase Low-Code offers strong flexibility and scalability, allowing for easy integration with other systems to meet diverse business needs [3] Lisi Brand - Lisi brand specializes in low-code development assistance, providing highly customizable products tailored to various industries and business processes [4] - The brand emphasizes data security, employing advanced encryption and security strategies to protect sensitive enterprise data [4] - Lisi offers a rich library of templates and components, enabling developers to quickly build applications that meet specific business requirements, enhancing both efficiency and quality [4] Combined Solutions - The integration of NetEase Low-Code and Lisi's products offers comprehensive and efficient digital solutions for enterprises [5] - Developers can leverage Lisi's templates and components on the NetEase Low-Code platform to quickly create applications that fulfill business needs [5] - Lisi's security mechanisms ensure that applications developed on the NetEase Low-Code platform maintain data security and reliability [5] Digital Transformation - Digital transformation is essential for enterprises' survival and growth, with the combination of NetEase Low-Code and Lisi providing an efficient pathway [6] - This combined solution allows enterprises to quickly build applications that enhance internal management efficiency and operational levels [6] - The digital applications also improve customer experience and strengthen market competitiveness [6] Case Study - A retail enterprise utilized the combined solutions of NetEase Low-Code and Lisi to develop an integrated sales management system, significantly improving sales efficiency and customer satisfaction [7] - As technology continues to evolve, both NetEase Low-Code and Lisi will upgrade their offerings to provide advanced digital solutions for enterprises [7] - Companies are encouraged to embrace digital transformation and leverage the advantages of NetEase Low-Code and Lisi for sustainable development [7]

Core Insights - NetEase reported its Q3 financial results for the period ending September 30, 2025, showing a net revenue of 28.4 billion yuan, an increase of 8.2% year-over-year, and a net profit attributable to shareholders of 8.6 billion yuan, up 31.8% year-over-year [1] Group 1: Financial Performance - The company's gross profit for Q3 was 18.2 billion yuan, reflecting a year-over-year growth of 10.3% [1] - As of September 30, 2025, NetEase's net cash balance was 153.2 billion yuan, an increase from 131.5 billion yuan as of December 31, 2024 [1] - Non-GAAP net profit attributable to shareholders was 9.5 billion yuan, representing a year-over-year increase of 26.7% [1] Group 2: Business Segments - The gaming segment remains the core of NetEase's business, accounting for 82.04% of total revenue, with net revenue from games and related services reaching 23.3 billion yuan, a year-over-year increase of 11.8% [1] - Online games contributed 97.6% of the gaming revenue, driven by titles such as "Fantasy Westward Journey" and new releases like "Yanyun Sixteen Sounds" [1][2] - NetEase Youdao's net revenue was 1.628 billion yuan, a year-over-year increase of 3.6%, with online marketing services becoming the largest revenue source for the first time [4] Group 3: Game Development and Strategy - The company is focusing on high-quality game development, avoiding blind expansion into new products, and is committed to a more strategic approach in the coming years [2] - NetEase has closed at least seven overseas studios since 2024, including Jackalyptic Games and Bad Brain Game Studios, as part of a restructuring effort [2] - The game "Yanyun Sixteen Sounds" has shown strong performance overseas, reaching over 500,000 players within 40 minutes of launch and ranking in the top charts on Steam [3] Group 4: Other Business Segments - NetEase Cloud Music reported a year-over-year revenue decline of 1.8% to 2 billion yuan, while the "Innovation and Other" segment saw a more significant drop of 18.9%, with revenues of 1.4 billion yuan [4] - Youdao's online marketing services revenue grew by 51.1% to 740 million yuan, while learning services and smart hardware revenues declined significantly [4]

Core Insights - NetEase reported unaudited financial results for the third quarter of 2025, showing a net revenue of 28.4 billion RMB, an increase of 8.2% year-over-year, and a net profit attributable to shareholders of 8.6 billion RMB, remaining stable compared to the previous quarter and significantly up from 6.5 billion RMB year-over-year [2] - The Non-GAAP net profit reached 9.5 billion RMB, reflecting a year-over-year increase of 26.7% [2] Business Segments - The gaming and related value-added services remain the core revenue driver, contributing 23.3 billion RMB, which is an 11.8% increase year-over-year. Notably, the game "Fantasy Westward Journey" achieved record concurrent online users, peaking at 3.58 million [4] - New and existing products such as "Party Animals," "Yanyun Sixteen Sounds," and "Marvel Showdown" also contributed to revenue growth. In contrast, the innovative business and other segments saw a revenue decline to 1.4 billion RMB, down 18.9% year-over-year, primarily due to a drop in revenue from Yanxuan and increased internal transaction offsets [6] Cash Flow and Shareholder Returns - As of September 30, NetEase reported a net cash position of 153.2 billion RMB (approximately 21.5 billion USD) and a record operating cash flow of 12.9 billion RMB for the quarter. The company announced a quarterly dividend of 0.1140 USD per share (0.57 USD per ADS) and extended its 5 billion USD share repurchase plan until January 2029 [6] Management Insights - During the earnings call, the CEO elaborated on product operations and global strategies, highlighting the success of "Fantasy Westward Journey" due to the removal of time-based fees and system simplification, which attracted returning and new players [6] - The CEO emphasized that NetEase is the only major gaming company in China successfully promoting pure Chinese martial arts themes overseas, with positive responses for games like "Yanyun Sixteen Sounds" and "Naraka: Bladepoint." The anticipated new title "ANANTA" won the "Future Expectation Award" at the Tokyo Game Show and is on track for a 2026 release [6] - In response to analysts' concerns about the slowdown in new product releases, the CEO stated that the company will focus more on existing successful products, adhering to a "few but excellent" strategy. He also mentioned the deep integration of AI applications in products like "Party Animals" and "Naraka: Bladepoint," with plans to continue enhancing content creation and operational efficiency [7] Market Reaction - As of November 21, NetEase's stock price fell by 3.76%, closing at 204.6 HKD per share [8]