Financial Data and Key Metrics Changes - Total revenues increased by 8% year over year, reaching RMB 28.4 billion in Q3 2025 [4][26] - Revenues from games and related VAS grew by 12% year over year, totaling RMB 23.3 billion [26] - Gross profit for Q3 2025 was RMB 18.2 billion, up 10% year over year, with a gross profit margin of 64.1% [28][30] - Non-GAAP net income attributable to shareholders was RMB 9.5 billion, or $1.3 billion, up 27% year over year [31] Business Line Data and Key Metrics Changes - Net revenues from online games were RMB 22.8 billion, up 3% quarter over quarter and 13% year over year [27] - Youdao's net revenue reached RMB 1.6 billion, representing a 15% increase quarter over quarter and a 4% increase year over year [27] - NetEase Cloud Music's net revenue was RMB 2 billion, stable quarter over quarter but down 2% year over year [27] Market Data and Key Metrics Changes - The new game "Destiny Rising" topped the iOS download chart in the U.S. and other major Western markets shortly after its launch [5] - "Where Winds Meet" achieved a peak of 190,000 concurrent players within two days of its global launch [9] - "Minecraft China Edition" reached 1.25 million concurrent players, marking a significant milestone in its eighth year of operation [23] Company Strategy and Development Direction - The company aims to advance development capabilities and global reach while scaling original IP into lasting franchises [26] - Focus on long-term development and providing diverse choices within existing games to meet community demands [35] - The strategy includes a prudent approach to launching new games, concentrating resources on successful products [46] Management Comments on Operating Environment and Future Outlook - Management noted that the gaming trend in China and overseas is positive, with successful experiences in international markets [36] - The company is confident in its ability to bring high-quality content and services to global gamers [36] - Management acknowledged the impact of competition but highlighted strategies to maintain engagement and growth [39] Other Important Information - The board of directors approved a dividend of $0.114 per share, or $0.57 per ADS [31] - The share repurchase program of up to $5 billion has been extended for an additional 36 months [32] Q&A Session Summary Question: Operational strategy for Fantasy Westward Journey - The longevity of Fantasy Westward Journey Online is attributed to its stable economy system and enriched gaming experiences [34] Question: Gaming trend in China and overseas expansion strategy - Successful experiences in overseas markets have been accumulated, with positive feedback on recent global releases [36] Question: Volatility in Identity V's growth and strategy for improvement - The impact of competition has eased, and new content and marketing campaigns are being prepared for the upcoming season [39] Question: Organizational changes in the game department - Recent adjustments are part of normal personnel turnover and aim to enhance focus and efficiency without impacting operations [45] Question: Integration of AI in games - The company has significant experience in using AI for game development and operations, focusing on enhancing user experience [48]

Core Insights - NetEase reported Q3 2025 net revenue of 28.4 billion yuan, with a non-GAAP net profit attributable to shareholders of 9.5 billion yuan, and R&D investment of 4.5 billion yuan, representing an R&D intensity of 16% [1] - The company focuses on user experience and innovation, emphasizing long-term resilience and the development of globally appealing products [1] Gaming Performance - NetEase's gaming and related value-added services generated net revenue of 23.3 billion yuan, with the classic IP "Fantasy Westward Journey" achieving a record high of 3.58 million concurrent users [1][3] - New game "Destiny: Stars" topped the iOS download charts in 19 regions on its launch day, while other popular IPs like "Egg Party" and "Reverse Water Cold" maintained strong growth [1][4][6] AI Integration - AI technology has become a crucial driver for business growth and user experience enhancement, with NetEase Youdao achieving a net revenue of 1.6 billion yuan in Q3, and a nearly 150% year-on-year increase in operating profit for the first three quarters of 2025 [1][11] - The integration of AI in various business segments has significantly improved production efficiency and created new content forms, with AI applications covering the entire game production process [9][10] Innovative Products and User Engagement - The company launched several innovative features in its music platform, such as the AI tuning master and personalized playlist generation, enhancing user experience [1][12] - NetEase's gaming titles continue to innovate, with "Reverse Water Cold" and "Egg Party" achieving significant user engagement and revenue growth [4][5] Global Expansion - NetEase is accelerating its global strategy, with multiple products receiving positive responses in overseas markets, including "Destiny: Stars" and "Reverse Water Cold" topping various international app store charts [6][7] - The company has received multiple nominations at the TGA 2025, marking a historic recognition of its global product quality [7]

NetEase 3Q25 Investor Presentation Investor Relations November 20, 2025 SAFE HARBOR STATEMENT This announcement contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions. In addition, statements that are not histo ...

Core Insights - NetEase reported a net revenue of 28.4 billion yuan for Q3 2025, representing a year-on-year growth of 8.2% [2] - The net profit attributable to shareholders was 8.6 billion yuan, while the non-GAAP net profit attributable to shareholders was 9.5 billion yuan [2] Revenue Breakdown - NetEase Cloud Music generated a net revenue of 2 billion yuan in Q3, marking a year-on-year decline of 1.8%. This follows three consecutive quarters of revenue declines of 3.5%, 8.4%, and 5.3% respectively [2] - Revenue from games and related value-added services reached 23.3 billion yuan, showing a year-on-year increase of 11.8% [2] - Youdao's net revenue was 1.6 billion yuan, reflecting a year-on-year growth of 3.6% [2] - Revenue from innovation and other businesses amounted to 1.4 billion yuan, which is a year-on-year decrease of 18.9% [2]

Core Insights - The company reported a net revenue of 28.4 billion yuan in Q3, up from 26.2 billion yuan in the same period last year [1] - The net profit attributable to shareholders under non-GAAP was 9.5 billion yuan, compared to 7.5 billion yuan in the previous year [1] - Research and development expenditure reached 4.5 billion yuan, with an R&D intensity of 16%, leading the industry [1] - The net revenue from online gaming services was 23.3 billion yuan [1]

Core Insights - NetEase reported Q3 2025 net revenue of 28.4 billion yuan, with a non-GAAP net profit attributable to shareholders of 9.5 billion yuan, and R&D investment of 4.5 billion yuan, reflecting a R&D intensity of 16% [1][9] - The company emphasizes user experience and innovation, focusing on long-term growth and global expansion, particularly in gaming and AI technology [1][9] Financial Performance - Q3 net revenue from games and related services reached 23.3 billion yuan, with classic IP "Fantasy Westward Journey" achieving record online player numbers [1][3] - NetEase Youdao's Q3 revenue was 1.6 billion yuan, with a nearly 150% year-on-year increase in operating profit for the first three quarters of 2025 [1][11] - NetEase Cloud Music reported Q3 revenue of 2 billion yuan, introducing AI features to enhance user experience [1][11] Gaming Sector Highlights - The classic IP "Fantasy Westward Journey" saw its online player count peak at 3.58 million, marking a record high [3][4] - New games like "Destiny: Stars" topped the iOS download charts in 19 regions on launch day, showcasing strong market performance [1][6] - Popular original IPs such as "Reverse Water Cold" and "Egg Party" demonstrated significant growth, with "Reverse Water Cold" returning to the top of the iOS sales charts in China [4][6] AI Integration - AI technology is a key driver for business growth and user experience enhancement, with R&D investment reaching 4.5 billion yuan [1][9] - AI applications in gaming have improved production efficiency and player engagement, with significant advancements in NPC capabilities and user-generated content [10][11] - NetEase Youdao's AI subscription service sales approached 100 million yuan, marking a historical high, with AI-driven features enhancing user learning and work efficiency [11][12] Global Expansion - NetEase is accelerating its global strategy, with multiple products receiving positive responses in overseas markets [6][7] - The company achieved significant milestones with games like "Destiny: Stars" and "Reverse Water Cold," which topped download charts in various countries [6][7] - Upcoming titles such as "Infinite" and "Forgotten Sea" are generating anticipation, with "Infinite" winning the Future Expectation Award at the Tokyo Game Show 2025 [8]

Exhibit 99.1 Contact for Media and Investors: Email: ir@service.netease.com Tel: (+86) 571-8985-3378 NetEase Announces Third Quarter 2025 Unaudited Financial Results Hangzhou, China, November 20, 2025 - NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), a leading internet and game services provider, today announced its unaudited financial results for the third quarter ended September 30, 2025. Third Quarter 2025 Financial Highlights Third Quarter 2025 and Recent Operational Highlights ...

Core Financial Metrics - Total revenue for Q3 reached 28.4 billion RMB, representing a year-on-year growth of 8.2% [2] - Gross profit was 18.2 billion RMB, with a year-on-year increase of 10.3% [2] - Net profit stood at 8.6 billion RMB, flat compared to the previous quarter, but up 32.3% year-on-year [2] - Non-GAAP net profit was 9.5 billion RMB, reflecting a year-on-year growth of 26.7% [2] - Operating expenses totaled 10.2 billion RMB, up 9.7% year-on-year, with a significant quarter-on-quarter increase of 13.3% due to higher game marketing expenditures [2] - Cash flow from operations improved significantly, reaching 12.9 billion RMB [2] Core Business Performance - The gaming segment accounted for 82% of total revenue, generating 23.3 billion RMB, with a year-on-year growth of 11.8% [2][3] - Notable contributions came from popular games such as "Fantasy Westward Journey" and "Marvel Duel" [2][3] - The online gaming revenue represented 97.6% of the gaming segment, an increase from 96.8% in the same period last year [2] Non-Gaming Business Challenges - Youdao's revenue was 1.6 billion RMB, with a slowdown in growth to 3.6% year-on-year, attributed to regulatory challenges in the education sector [4] - Cloud Music reported revenue of 2 billion RMB, down 1.8%, facing strong competition from Tencent Music [5] - Innovative business and other revenues fell to 1.4 billion RMB, a decline of 18.9%, linked to increased internal transaction offsets and a downturn in the e-commerce segment [5]

Core Insights - The article highlights the investment philosophy and business strategies of Duan Yongping, a prominent figure in both the manufacturing and investment sectors, often referred to as "China's Warren Buffett" [3][19]. Group 1: Investment Philosophy - Duan emphasizes that investing is fundamentally about understanding the company rather than merely speculating on stock prices, stating "buying stocks is buying companies" [17]. - His successful investment in NetEase, where he bought shares at a time when the stock was undervalued, exemplifies his approach of understanding the business model and market potential [18]. - Duan has only truly understood a few companies over the years, including Apple and Moutai, indicating a selective and informed investment strategy [18]. Group 2: Business Principles - Duan advocates for a principle-based approach to business, focusing on doing the right things and maintaining a calm mindset, which he refers to as "本分 + 平常心" (being principled and having a calm heart) [13]. - He established a "not-to-do list" for his company, which includes avoiding OEM production and not engaging in dishonest practices, thereby streamlining operations and reducing errors [14][15]. - His experience with the company Step by Step (步步高) illustrates the importance of brand building over competing in low-margin OEM markets [14]. Group 3: Personal Background and Career - Duan Yongping's journey began in Jiangxi, China, and he faced various challenges in his early life, which shaped his decision-making and independence [9]. - After a successful career in manufacturing, he retired early to focus on family and investment, believing that financial freedom comes from doing what one loves without being driven solely by money [10][11]. - His transition from CEO to investor reflects a strategic shift towards leveraging his expertise in understanding business dynamics rather than managing day-to-day operations [10][11].

经济观察网 11月20日，网易发布2025年第三季度财报。财报显示，网易2025年Q3营收284亿元，同比增 加8.2%；毛利润为182亿元，同比增加10.3%；归属于公司股东的净利润为86亿元。 来源：经济观察网 ...