Group 1 - The 27th China Beijing International Science and Technology Industry Expo showcased over 800 technology companies and institutions, featuring more than 600 globally debuting and industry-first technological achievements [1] - AI technology is rapidly transforming industry dynamics, shifting from a "+AI" integration model to an "AI+" scenario-driven model, significantly reshaping production and lifestyle [1] - The "Beijing Action Plan for Promoting 'Artificial Intelligence+'" focuses on the precise implementation of "large models + vertical scenarios," driving the digital and intelligent transformation of enterprises [1] Group 2 - Companies are advised to anchor their strategies on "high-value scenario exploration and data asset accumulation," utilizing standardized solutions for general business scenarios and customized development tools for specific scenarios [2] - The education technology sector is witnessing innovation, with products like the AI answering pen from NetEase Youdao providing immersive learning experiences through deep reasoning engines [2] - The financial technology sector is also seeing deep AI penetration, with institutions showcasing applications of large models in credit risk control, wealth management, and intelligent investment research [2] Group 3 - General large models possess strong knowledge generalization and language understanding capabilities but have high resource consumption and training costs, while vertical models focus on specialized knowledge and offer better business adaptability [3] - The mainstream industry path is a collaborative architecture of "general models + industry-specific models," enhancing practical application effectiveness [3] - In the financial sector, vertical large models may become the main battlefield for differentiated competition, with data quality and specialized knowledge bases being core barriers [3] Group 4 - Several technology companies showcased collaborative innovation results in building an open-source ecosystem for AI, which significantly promotes technological innovation and knowledge sharing [4] - The open-source ecosystem enhances the accessibility of AI technology, allowing companies to invest more economically and flexibly in acquiring and deploying AI solutions [4] - Companies can focus on application selection and data and knowledge mining, generating more commercially valuable AI applications [4]

Market Capitalization Overview - The market capitalizations of various companies are listed, with notable figures including 74.11 billion, 88.55 billion, and 76.47 billion [2] - Companies such as SON, VIPS, and TAL have market caps of 72.19 billion, 60.28 billion, and 55.72 billion respectively [2] Stock Performance - Stock price changes are highlighted, with SON showing a decrease of 0.95 (-1.99%) while VIPS increased by 0.15 (+0.85%) [2] - Other companies like TAL and Lufax also experienced minor fluctuations, with TAL decreasing by 0.04 (-0.49%) and Lufax increasing by 0.96 (+3.75%) [2] Additional Company Insights - Companies such as Huya and Yatsen have market caps of 8.06 billion and 3.27 billion respectively, with stock price changes of -0.03 (-0.77%) and 0.00 (0.00%) [2] - The performance of companies like New Oxygen and Huami Technology is also noted, with market caps of 83.07 million and 37.63 million, showing no change in stock price [3] Summary of Smaller Companies - Smaller companies like Tuniu and Cheetah Mobile have market caps of 1.08 billion and 1.17 billion respectively, with Tuniu experiencing a slight decrease of -0.01 (-1.20%) [3] - The market cap of Baosheng E-commerce is reported at 2.02 billion, with a stock price increase of 0.17 (+5.18%) [3]

Core Viewpoint - The ongoing governance of personal information collection by applications is highlighted, with specific issues identified in 15 apps and 16 SDKs regarding transparency and compliance with personal information protection laws [1][2][7]. Group 1: Issues Identified - 15 apps, including popular ones like Moji Weather TV version and Youdao Premium Course, failed to list the SDKs used for personal information collection and did not accurately state the purposes, methods, and scope of data collection [1][3][5]. - 16 SDKs were found to lack clear rules for personal information collection and did not respond timely to user rights requests, leading to increased risks of data misuse and compliance violations [2][6][7]. - The lack of transparency in data collection practices violates the "notice and consent" principle outlined in the Personal Information Protection Law, potentially exposing users to risks such as data theft and unauthorized sharing [7][9]. Group 2: Company Responses and Compliance - Companies like Moji Weather and Youdao have acknowledged the issues and are working towards compliance, with Moji Weather indicating that the TV version is not their main product and will undergo necessary rectifications [4][8]. - Some apps, such as Tuhu Car Maintenance, have already updated their versions to comply with the requirements, while others like Youdao Premium Course have not yet made necessary updates [8][9]. - The need for companies to enhance their understanding of legal regulations and improve compliance practices is emphasized, as non-compliance can lead to significant operational risks and reputational damage [9][10]. Group 3: Recommendations for Improvement - Companies are advised to integrate privacy design principles during the development of apps and SDKs, including data minimization and encryption [10]. - Establishing a security assessment system for SDKs and implementing dynamic permission management mechanisms are recommended to enhance data protection [10]. - Regular compliance audits and the establishment of user rights response systems are crucial for ensuring user rights are adequately protected [10].

Core Viewpoint - Youdao, Inc. is set to report its first quarter 2025 financial results on May 15, 2025, before U.S. market opens, highlighting its ongoing commitment to transparency and investor communication [1]. Group 1: Financial Reporting - The earnings teleconference call will occur at 6:00 a.m. Eastern Time on May 15, 2025, with management available to discuss results and answer questions [2]. - Dial-in details for the earnings conference call include toll-free numbers for the United States, Mainland China, and Hong Kong, ensuring accessibility for investors [2]. - A replay of the conference call will be available by phone one hour after the live call, accessible until May 22, 2025, providing additional opportunities for stakeholders to engage with the information [3]. Group 2: Company Overview - Youdao, Inc. is an AI-powered solutions provider focusing on artificial intelligence applications in the learning and advertising sectors, indicating a strategic positioning in a growing market [4]. - The company offers a range of services, including learning services, online marketing services, and smart devices, all leveraging advanced technologies [4]. - Founded in 2006 as part of NetEase, Inc., Youdao is backed by a leading internet technology company in China, enhancing its credibility and market presence [4].

Core Insights - The education industry in China is undergoing a significant transformation driven by policy adjustments and technological advancements, particularly in AI [1] - Companies are adopting diverse strategies to adapt to market changes, including building comprehensive education ecosystems and leveraging AI technology for breakthroughs [1] Performance Overview: Mixed Results and Growth Strategies - New Oriental reported a net revenue of $4.31 billion for the fiscal year 2024, a 43.9% increase year-on-year, with core education business revenue growing by 21.2% [2][3] - TAL Education achieved a net income of $2.25 billion, a substantial 51.0% increase year-on-year, with a net profit of $102 million, marking a turnaround from a loss [4][5] - Gaotu's revenue reached 4.54 billion yuan, a 53.8% increase, but the net loss expanded to 430 million yuan due to increased operational costs [6] - NetEase Youdao reported a net income of 5.6 billion yuan, a 4.4% increase, and achieved profitability for the first time with a net profit of 83 million yuan [6] - Xueda Education's revenue was 2.786 billion yuan, a 25.9% increase, with a net profit of 180 million yuan [6] - Excellent Education's revenue surged by 125.2% to 1.102 billion yuan, with a net profit of 192 million yuan [6] - Anlong Education's revenue was 1.230 billion yuan, a 27.32% increase, but it reported a net loss of 48.58 million yuan [6] - Thinking乐 Education achieved revenue of 852 million yuan, a 49.4% increase, with a net profit of 146 million yuan [6] - Kede Education's revenue was 795 million yuan, a 3.1% increase, with a net profit of 145 million yuan [6] - Dou Shen Education's revenue declined by 23.77% to 757 million yuan, but net profit increased significantly to 137 million yuan [6] Diverse Ecosystem Builders: New Oriental, TAL Education, Xueda Education - New Oriental focuses on core education business and has increased investment in quality education, particularly in non-subject tutoring and intelligent learning systems [10] - TAL Education is building a "hardware + content" ecosystem, enhancing user engagement and market competitiveness [10] - Xueda Education is expanding its personalized education services and integrating vocational education and cultural reading into its offerings [10] AI Technology as a Core Differentiator: NetEase Youdao, Excellent Education, Dou Shen Education - NetEase Youdao is leveraging AI to enhance content quality and user experience, achieving profitability for the first time [11] - Excellent Education has increased investment in AI technology, developing applications to improve teaching efficiency and student engagement [11] - Dou Shen Education launched its self-developed AI model and reduced operational costs, leading to a significant increase in net profit despite a decline in revenue [11] Differentiated Strategies to Capture Market Share: Gaotu, Thinking乐, Anlong Education, Kede Education - Gaotu's investment in R&D and technology is yielding returns, with non-subject tutoring services seeing over 150% growth [12] - Thinking乐 Education is successfully re-entering the Guangzhou market with a focus on small class sizes and diverse course offerings [12] - Anlong Education is implementing a five-year strategic plan to enhance operational efficiency despite reporting a net loss [13] - Kede Education maintains stable revenue through diversified operations, focusing on vocational education and training [13] Conclusion - The financial reports of education companies in 2024 highlight two main transformation trends: "policy-driven market shifts" and "technology-enabled efficiency revolutions" [14] - Companies like New Oriental and TAL Education are leveraging brand and capital advantages, while others like Xueda and Excellent Education are establishing barriers in niche markets [14]

Market Capitalization Overview - The market capitalizations of various companies are listed, with TAL Education Group at 11.882 billion, Vipshop at 8.481 billion, and others showing significant values [2]. - Notable increases in market value include SouFun Technology with a rise of 9.49% and 6.96% for Lufax Holding [2]. Company Performance - TAL Education Group shows a slight decrease of 0.25% in its stock price, while Vipshop and SouFun Technology have increased by 6.38% and 7.51% respectively [2]. - Other companies like JD.com and iQIYI also show positive stock performance, with increases of 7.38% and 9.29% respectively [2]. Sector Analysis - The data indicates a mixed performance across the sector, with some companies experiencing growth while others face declines [2][3]. - Companies such as Huami and Mogujie show varied performance, with Huami experiencing a slight increase of 3.14% while Mogujie saw a decrease of 5.30% [3]. Investment Insights - The overall market sentiment appears to favor companies with strong growth metrics, as evidenced by the significant percentage increases in market value for several firms [2][3]. - The data suggests potential investment opportunities in companies that are showing consistent growth in their market capitalizations and stock prices [2].

Core Viewpoint - The article discusses concerns raised by parents regarding the copyright status of English textbooks shared on personal cloud storage platforms, particularly focusing on the case of NetEase Youdao Listening Treasure, which allegedly lacks proper copyright authorization for the materials it offers [1][3][4]. Group 1: Copyright Issues - Parents have questioned the legitimacy of the resources available on NetEase Youdao Listening Treasure, particularly whether the shared materials have proper copyright, as the licensing for certain textbooks has expired [1][3]. - Beijing Publishing Group confirmed that the copyright for the Beijing version of the English textbook used by NetEase Youdao has not been renewed after its expiration on August 31, 2024 [3][4]. - The company has stated that any unauthorized use of its copyrighted materials, including those shared on personal cloud platforms, constitutes infringement [4][5]. Group 2: Resource Sharing and Official Channels - NetEase Youdao claims that the resources shared on its cloud platform are user-generated and not officially sanctioned, although parents have reported that customer service directed them to these resources as if they were official [7][8]. - There is a contradiction in NetEase Youdao's statements regarding the source of shared materials, with customer service indicating that user-uploaded files are not available for public sharing unless users become "cooperative users" [8][10]. Group 3: Content Review and Responsibility - Concerns have been raised about who is responsible for reviewing the user-generated content shared on the platform, with NetEase Youdao stating that it employs a content review system but not addressing the accountability for the shared resources [10][11]. - Experts suggest that companies should take on the responsibility of ensuring that all learning resources comply with legal and ethical standards, rather than placing the burden on consumers to verify content [10][12]. - The article highlights the need for stricter regulatory measures and clearer responsibilities for companies in managing educational content, especially as online learning becomes more prevalent [12][13].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 Youdao, Inc. No. 399, Wangshang Road, Binjiang District Hangzhou 310051, People's Republic of China +86 0571-8985-2163 (Address of Principal Executive Offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20- F ☒ Form 40-F ☐ EXHIBIT INDEX | Exhibit No. | De ...

In China: Jeffrey Wang Youdao, Inc. Tel: +86-10-8255-8163 ext. 89980 E-mail: [email protected] Piacente Financial Communications Helen Wu Tel: +86-10-6508-0677 E-mail: [email protected] Youdao, Inc. (NYSE: DAO) is strategically positioned as an AI-powered solutions provider specializing in artificial intelligence applications for the learning and advertising verticals. Youdao now mainly offers learning services, online marketing services and smart devices – all powered by cutting-edge technologies. Youdao w ...

VIE Structure and Financial Impact - In 2022, 2023, and 2024, revenues generated by the VIEs accounted for 70.1%, 77.0%, and 73.4% of total net revenues, respectively[30]. - As of December 31, 2024, total assets of the VIEs and their subsidiaries represented 48.8% of the consolidated total assets[30]. - Cumulative capital contributions made by Youdao, Inc. to PRC subsidiaries amounted to US$126.2 million as of December 31, 2024[36]. - The VIEs transferred RMB2,944.2 million, RMB3,287.5 million, and RMB3,091.2 million (US$423.5 million) to PRC subsidiaries as service fees in 2022, 2023, and 2024, respectively[36]. - As of December 31, 2024, the outstanding balance of service fees owed by the VIEs to PRC subsidiaries was RMB739.5 million (US$101.3 million)[37]. - Youdao, Inc. did not make any loans to the VIEs in 2022, 2023, and 2024, with the VIEs funding operations primarily through cash generated from activities[35]. - The company’s ability to pay dividends depends on the service fees paid by the VIEs to its PRC subsidiaries[54]. - Current PRC laws impose restrictions on foreign ownership of companies engaging in value-added telecommunication services, necessitating the use of VIE structures[54]. - The company relies on contractual arrangements with VIEs to conduct business in China, which may be subject to regulatory changes affecting enforceability[209]. - The company's PRC subsidiaries are considered foreign-invested enterprises and cannot provide certain services directly, necessitating the use of VIE structures[211]. Regulatory Environment and Compliance - The PCAOB's ability to inspect audit firms in mainland China and Hong Kong remains a risk, potentially affecting trading of Youdao's securities under the HFCAA[31]. - The company is closely monitoring regulatory developments regarding necessary approvals from the CSRC and other PRC regulatory authorities for overseas listings[48]. - The Overseas Listing Trial Measures require domestic companies to fulfill filing procedures for overseas securities offerings, effective March 31, 2023[48]. - The company is not required to undergo a cybersecurity review by the CAC for maintaining its listing status on the NYSE[45]. - The company has not been involved in any investigations or cybersecurity reviews initiated by the CAC as of the date of the annual report[46]. - As of the date of the annual report, the company has not received any regulatory objections from the CSRC regarding its listing status[48]. - The company is subject to regulatory scrutiny under the Outbound Investment Rule, which restricts U.S. investments in certain technology sectors related to China, effective January 2025[156]. - The CAC's Revised Cybersecurity Review Measures mandate cybersecurity reviews for platform operators with over one million users' personal information aiming to list abroad[198]. - The CAC's Provisional Administrative Measures for Generative AI Services took effect on August 15, 2023, requiring security assessments for generative AI products[128]. - The CAC's Measures for Labeling AI-Generated Content will be effective from September 1, 2025, mandating labeling of AI-generated content[128]. Financial Performance and Risks - The company reported net losses of RMB745.9 million and RMB550.1 million in 2022 and 2023, respectively, but achieved profitability in 2024 with a net income of RMB75.2 million (US$10.3 million)[96]. - The company generated net revenues of RMB672.4 million, RMB1,331.9 million, and RMB1,975.0 million (US$270.6 million) from online marketing services in 2022, 2023, and 2024, respectively[104]. - As of December 31, 2023, the company had working capital deficits of RMB1,799.3 million, which improved to RMB1,460.2 million (US$200.0 million) by December 31, 2024[100]. - The company faces significant legal and operational risks due to its operations in China, which could materially affect its business and the value of its securities[70]. - Recent regulatory changes in the PRC private education industry have adversely impacted Youdao Computer's business, particularly in the after-school tutoring sector, with new requirements for non-profit registration and restrictions on fundraising[81]. - The company faces intense competition for qualified talent in China, and the loss of key employees could disrupt operations and harm business growth[161]. - The company faces risks associated with rapid technological changes and competition, which could materially affect its business and financial condition[90]. - The company may incur additional expenses to adapt its business model to comply with evolving regulations and laws in the PRC[144]. - The company may struggle to comply with new laws and regulations, risking material penalties that could adversely affect operations and prospects[234]. Product Development and Market Strategy - New product offerings, including Youdao Dictionary Pen X7 and Youdao SpaceOne, are in initial development stages and have not yet generated significant revenues, posing risks to future growth[86]. - The company launched its large language model (LLM), Confucius, in 2023, which is China's first LLM specifically for the education sector[88]. - The company plans to explore additional monetization opportunities, including offering new technology solutions and subscription options to increase user spending[91]. - The company introduced new intelligent learning products, such as Youdao Dictionary Pen A7 Pro and Youdao Dictionary Pen X7[92]. - The company launched its own large language model, Confucius, in 2023, integrating AI into product offerings, but faces uncertainties regarding commercialization and regulatory compliance[124]. Operational Challenges and Risks - The company faces risks related to third-party payment processing, including potential fraud and user data leakage, which could materially affect its business[186]. - The company does not currently have any business insurance coverage, which may result in substantial costs and resource diversion in the event of disruptions[187]. - The company is exposed to risks from negative publicity, which could harm its reputation and financial condition[130]. - The company relies heavily on information technology systems, and any failure or security breach could disrupt operations and lead to significant costs[140]. - The company may face significant disruptions to its business operations if the VIEs lose their licenses, approvals, and assets, which could adversely affect financial condition and results[228]. Shareholder and Governance Issues - NetEase, the controlling shareholder, owns 67.2% of the total voting power, which may lead to decisions that are not aligned with the interests of other shareholders[204]. - The company has limited experience operating as a stand-alone public entity, facing enhanced compliance requirements that may incur substantial costs[202]. - Any negative developments in NetEase's market position or financial condition could adversely impact the company's reputation and business[203]. - Conflicts of interest may arise between the shareholders of the VIEs and the company, potentially affecting the performance of contractual arrangements[226]. Inventory and Asset Management - As of December 31, 2023, inventory accounted for approximately 16.7% of total current assets, decreasing to 11.8% by December 31, 2024[129]. - The company faces risks related to inventory management, including potential losses from excessive or obsolete inventory due to demand forecasting inaccuracies[129]. Legal and Regulatory Compliance - The PRC Data Security Law and Personal Information Protection Law were enacted, effective September 1, 2021, and November 1, 2021, respectively, to enhance cybersecurity and data protection regulations[142]. - Network platform operators with over one million users' personal information must undergo a cybersecurity review before any public offering in foreign countries[142]. - The company is required to obtain various licenses and approvals to conduct its operations in China, including a Value-Added Telecommunications Business Operating License[149]. - The company has completed re-filing for certain educational apps to comply with new regulatory requirements[150].