Summary of NetEase Inc. (NTES) Conference Call Company Overview - **Company**: NetEase Inc. (NTES) - **Market Cap**: $97.0 billion - **Enterprise Value**: $77.6 billion - **Industry**: Gaming, Entertainment & Healthcare Tech in China Key Points and Arguments 1. **Stock Performance**: NetEase's share price has increased by 74% year-to-date and 19% following the 2Q25 results, outperforming the broader Chinese Internet sector [1][12] 2. **Evergreen Titles**: The success of legacy games, particularly the Fantasy Westward Journey (FWJ), has driven better-than-expected sales growth, with FWJ's PC version reaching a record 3.15 million concurrent players, a 15% increase from three months ago [2][16] 3. **Market Strategy**: The removal of prepaid game cards and the introduction of a simplified gameplay version have lowered entry barriers, attracting new and returning players, especially among younger demographics [2][16] 4. **Future Growth**: Anticipated strong results in 2H25 from legacy titles and a favorable product cycle in 2026 with potential blockbusters like Sea of Remnants and Ananta [1][18] 5. **Revenue Forecasts**: Revenue projections for 2025E have been raised to RMB 115,857.2 million, reflecting a 10% year-over-year growth [4][30] 6. **Earnings Per Share (EPS)**: EPS estimates for 2025E have been increased by 2-3% due to stronger game revenue growth and improved gross profit margins from higher-margin titles [18][30] 7. **Valuation Metrics**: Current valuation stands at 16-17X 12-month forward P/E, with target prices raised to $161 for NTES and HK$252 for 9999.HK [1][18] 8. **Marketing Efforts**: Proactive marketing strategies have contributed to the resurgence of Eggy Party, which is expected to show solid year-over-year growth [3][16] Additional Important Insights 1. **User Engagement**: The introduction of KOLs (Key Opinion Leaders) livestreaming FWJ has expanded its audience, particularly among younger players [2][16] 2. **Deferred Revenue**: Deferred revenue (excluding Youdao) is expected to maintain a 20% year-over-year growth level for 2H25 [24] 3. **Competitive Position**: NetEase's defensive business model has allowed it to extend the Evergreen game franchise effectively, positioning it well for future growth despite a lack of new titles [16][18] 4. **Upcoming Events**: Key upcoming events include Ananta's update at the Tokyo Game Show and the first round of testing for Sea of Remnants, which is expected to launch in 2026 [17][18] Financial Highlights - **EBITDA Growth**: Projected EBITDA growth of 23.1% for 2025E [11][30] - **Dividend Payout**: Dividend payout ratio is expected to remain around 36.6% for 2025E [14][30] - **Cash Flow**: Anticipated free cash flow of RMB 41,926.7 million for 2025E [15][30] This summary encapsulates the key insights and projections regarding NetEase Inc. as discussed in the conference call, highlighting its strong market position, growth potential, and strategic initiatives.

Core Insights - The article highlights the top short-selling stocks in the market, indicating significant investor sentiment and potential market movements [1][2][3] Short Selling Ratios - The top three stocks with the highest short-selling ratios are New World Development-R (80016) and Li Ning-R (82331) at 100.00%, followed by AIA Group-R (81299) at 92.90% [1][2] - Other notable stocks include BYD Company-R (81211) at 91.45% and China National Offshore Oil Corporation-R (80883) at 71.40% [2] Short Selling Amounts - Alibaba-SW (09988) leads in short-selling amount with 5.602 billion, followed by Tencent Holdings (00700) at 2.725 billion and Baidu Group-SW (09888) at 2.062 billion [3] - Other significant amounts include Meituan-W (03690) at 1.088 billion and Pop Mart International (09992) at 879 million [3] Deviation Values - Li Ning-R (82331) has the highest deviation value at 35.57%, followed by AIA Group-R (81299) at 28.24% and China National Offshore Oil Corporation-R (80883) at 27.47% [1][3] - Other notable deviation values include BYD Company-R (81211) at 25.22% and New World Development-R (80016) at 24.06% [3]

Market Performance - The three major indices in the Hong Kong stock market all rose by over 1.1%, with the Hang Seng Index gaining 1.16% to surpass 26,000 points, the Hang Seng China Enterprises Index increasing by 1.13%, and the Hang Seng Tech Index rising by 1.71% [1] Sector Performance - Large technology stocks collectively surged, with Baidu rising by 8% and Alibaba increasing by 5.44%, reportedly using self-developed chips to train AI models [1] - Other tech stocks such as NetEase and Kuaishou rose nearly 3%, Tencent increased by over 2%, JD.com rose by 1.46%, Xiaomi by about 1%, and Meituan closed flat [1] - Education stocks saw significant gains, with the Ministry of Finance announcing a budget of 100 billion yuan for childcare subsidies and 20 billion yuan for gradually implementing free preschool education, leading to a surge in stocks like Yuhua Education, which soared over 43% [1] - Biopharmaceutical stocks rebounded after a previous decline, while sectors such as property, gold, military, property management, heavy infrastructure, and insurance stocks also saw increases [1] Weak Performers - Local consumer stocks in Hong Kong showed weak performance, with Apple-related stocks, coal stocks, home appliance stocks, sports goods stocks, dairy stocks, and photovoltaic stocks generally declining [1] - Nearly 30 stocks in the market experienced declines of over 10%, with the small-cap stock Kaisheng Holdings leading the decline at 21.7% [1]

最后咱们快速过几个焦点个股，大家也能感受下市场的热度：网易昨天盘中刚创了历史新高，它家《命运》手游在美区iOS下载榜霸榜好几天了，盘前还 涨了1%；阿里刚上的"高德扫街榜"，一天就有4000万用户，直接成了国内最大的美食榜；蔚来又拿到10亿美元融资，小鹏的飞行器在阿联酋拿到了飞行 证，咱们国内的科技和车企也在悄悄发力。 作为干了20年财经记者、又蹲守中长线投资的老炮，帮主得跟大家掰扯掰扯，这波美股涨得这么猛，到底是跟风炒情绪，还是有真东西在支撑？核心就 一个事儿：市场现在几乎认定，美联储下周三开会，十有八九要降息了。 说到底，今天美股这波新高，本质是市场提前给降息"打了预防针"。但大家别光盯着眼前的涨幅，中长线看，下周美联储到底降多少、会后声明怎么说， 才是真正的关键。毕竟咱们做投资不是赌短期涨跌，得跟着政策和经济趋势走。跟着帮主，咱们慢慢把这波行情的来龙去脉摸清楚，不慌不忙做判断。 更有意思的是就业端，昨天每周失业金申请人数飙到26.3万，创了快三年新高，比预期多了快3万。加上前几天PPI还意外降了0.1%，这一串数据摆在一 起，等于告诉美联储：经济增速在放缓，就业也有点松劲，是时候松松货币政策了。所以现在 ...

Summary of the Gaming Industry Conference Call Industry Overview - The gaming industry has shown significant growth in the first half of 2025, with 17 core gaming companies experiencing an average revenue growth rate of 12%-18%, with a notable acceleration in Q2 [1][3][9]. - The domestic self-developed online game market reached a revenue of 140.5 billion yuan, marking a 19% year-on-year increase, the highest since 2021 [1][12]. Key Insights - **Revenue and Profit Growth**: Companies like ST Huatuo and Jiubite reported revenue growth rates of 80% and 100%, respectively, with profit growth exceeding 80% and 20% [1][10]. Overall, the gaming sector's profit performance has improved, driven by revenue increases, higher gross margins, and reduced expense ratios [1][10]. - **Gross Margin Improvement**: The gaming sector's gross margin increased from 65% in Q1 2023 to 69% in Q2 2025, attributed to improved operational efficiency, contributions from new games, and user migration to official channels [1][11]. - **User Spending**: The average spending per game user was 248 yuan, a 13% increase year-on-year, driven by increased playtime and willingness to spend [3][16]. Market Dynamics - **Supply and Demand**: The revival of the gaming industry is attributed to a significant increase in the number of domestic game approvals, with 166 new approvals in August 2025, doubling from 2023 [2][5][13]. The approval cycle has also shortened to about three months [2][5]. - **AI Integration**: AI technology has significantly impacted the gaming industry, reducing R&D costs from 48% in Q1 2023 to 29% in Q2 2025, enhancing productivity and profitability [1][7][26]. - **Marketing Strategies**: Companies are shifting towards content marketing and reducing reliance on traditional Android channels, which has alleviated sales costs and channel sharing pressures [6][22]. Competitive Landscape - **Head and Mid-Tier Companies**: The competitive pressure from leading companies on mid-tier firms has eased, allowing mid-tier companies to find opportunities for growth by focusing on their strengths [19][20]. - **Innovation and Performance**: Mid-tier companies are narrowing the innovation gap with leading firms, with notable performances in specific genres [21]. Future Outlook - **Sustained Growth**: The gaming sector is expected to maintain its growth momentum, with several new games set to launch during key holiday periods, which will likely reflect positively in Q3 financial reports [8][31]. - **Valuation Projections**: Current valuations are around 20 times earnings, with expectations to rise to 25 times in the next year, driven by improved fundamentals and potential breakthroughs in AI applications [32][33]. Notable Companies and Products - **Tencent**: Achieved over 20% revenue growth in Q2, with strong contributions from both domestic and overseas markets. Upcoming titles include "Honor of Kings World" and "One Person Under" [34]. - **Jiubite**: The core product "Zhang Jian Chuan Shuo" is expected to generate significant revenue, with a stable performance in the market [38]. - **ST Huatuo**: Currently in a profit release cycle with promising projects, expected to reach a market cap of 180-200 billion yuan [37]. - **Perfect World**: Set to launch "Yihuan," an innovative open-world game, by the end of 2025 [40]. Conclusion The gaming industry is experiencing a robust recovery with strong revenue and profit growth, driven by favorable market conditions, technological advancements, and strategic shifts in marketing and operations. The outlook remains positive, with significant opportunities for both established and emerging companies.

Group 1 - Zai Ding Pharmaceutical increased by over 11% [1] - GDS Holdings rose by over 7% [1] - Hesai Technology, Kingsoft Cloud, and Alibaba each saw an increase of over 4% [1] - NIO experienced a rise of over 3% [1] - Baidu, NetEase, and Manbang Group all increased by over 2% [1]

每经AI快讯，热门中概股大涨，再鼎医药涨超11%，万国数据涨超7%，金山云、阿里巴巴涨超4%，蔚 来涨超3%，百度、网易、满帮涨超2%。 ...

来源：滚动播报 牛津工业涨17.0%，Q2业绩超预期。Adobe涨1.1%，推出首个AI智能体套件。联合包裹跌1.8%，美银下 调了该股评级。百济神州涨3.2%，高盛称"美国拟加强审查中国创新药"影响有限。网易涨1.5%，昨日 盘中股价创历史新高，《命运》手游连续多日霸榜美国iOS手游下载榜榜首。 ...

Core Viewpoint - NetEase (NTES.US) continues to rise, with a pre-market increase of 1.54% to $148, following a record high of $145.895 during the previous trading session, marking a year-to-date increase of approximately 67% [1] Company Performance - The stock closed up 1.29% at $145.75 after reaching an all-time high [1] - The significant rise in stock price reflects strong market performance and investor confidence [1] Product Launch - On August 28, NetEase launched its first official sci-fi shooting mobile game based on the "Destiny" IP, titled "Destiny: Rising" [1] - The game quickly gained traction in the global market, leveraging the popularity of the "Destiny" IP, exceptional art design, deep strategic gameplay, and immersive storytelling [1] Market Impact - "Destiny: Rising" has consistently topped the iOS mobile game download charts in the United States, indicating strong consumer interest and engagement [1] - Within just four days of its launch, the game ranked 10th on the August growth chart, highlighting its potential as a breakout hit for 2025 [1]

Summary of Key Points Core Viewpoint - As of September 11, a total of 127 stocks reached their 52-week highs, indicating a strong market performance with notable leaders in the list [1]. Group 1: Top Performers - The top three stocks with the highest increase rates are: - Kaizhi International (02122) with a high rate of 98.05% and a closing price of 0.305 [1] - Green Heart Group (00094) with a high rate of 35.80% and a closing price of 0.080 [1] - Vision Holdings (00862) with a high rate of 33.33% and a closing price of 0.056 [1] Group 2: Additional Notable Stocks - Other notable stocks that reached their 52-week highs include: - KFM Kind (03816) with a high rate of 24.14% and a closing price of 0.530 [1] - Deutsche Commercial Property Services (02270) with a high rate of 20.00% and a closing price of 2.960 [1] - Xiangke Electric (02381) with a high rate of 19.17% and a closing price of 0.140 [1] Group 3: 52-Week Low Performers - The 52-week low performers include: - Oriental Payment Group Holdings with a closing price of 0.062 and a low rate of -7.69% [4] - Meizhong Jiahe with a closing price of 3.050 and a low rate of -6.25% [4] - TL Natural with a closing price of 0.244 and a low rate of -5.62% [4]