Core Insights - NetEase reported Q2 2025 net revenue of 27.9 billion yuan, a year-on-year increase of 9.4% [1] - Gross profit for the quarter was 18.1 billion yuan, reflecting a year-on-year growth of 13.3% [1] - Non-GAAP net profit attributable to shareholders was 9.5 billion yuan, up 21.8% year-on-year but down 15.2% quarter-on-quarter [1] Business Segments - The gaming segment remains the core of NetEase's business, accounting for 81.7% of total revenue, with net income from gaming and related services reaching 22.8 billion yuan, a 13.7% year-on-year increase [1] - Notable game performance includes "Identity V" and new titles like "Yanyun Sixteen Sounds" and "Marvel Duel," contributing to revenue growth, although there was a quarter-on-quarter decline due to various self-developed and licensed games [1][2] - NetEase Cloud Music, the second-largest business segment, reported net revenue of 2 billion yuan, a year-on-year decline of 3.5%, primarily due to a drop in social entertainment services [2] Other Business Highlights - NetEase Youdao achieved net revenue of 1.4 billion yuan, a year-on-year increase of 7.2%, marking its first profitable Q2 with an operating profit of 28.8 million yuan [3] - Youdao's revenue growth was driven by online marketing and learning services, although smart hardware revenue fell by 23.9% to 127 million yuan [3] - As of June 30, 2025, NetEase's net cash balance was 142.1 billion yuan, up from 116.1 billion yuan in the same period of 2024 [3]

8月14日，网易交出了一份数据不错的二季度财报，不过市场反应稍显冷静，截至发稿，网易美股盘前 跌幅超过8%。 财报显示，网易Q2净收入为279亿元，同比增加9.4%，归属于公司股东的净利润为86亿元，去年同期为 68亿元，同比增长超过26%。这一高增长部分原因是本季度确认了净汇兑收益，去年同期为净汇兑损失 近2.4亿元。 在提及AI时，丁磊表示，网易积极投入大量资源去适应和利用好AI，目前AI在网易的产品开发和运营 上效果是显然易见的，不久的将来，可以利用AI做出更生动有趣的游戏。 除游戏业务外，网易有道业务的净收入为14 亿元，同比增加7.2%。AI是有道业务的重点布局方向，二 季度，网易有道AI订阅服务销售额近8000万元，同比增长约30%。 二季度网易云音乐的净收入为20 亿元，同比减少3.5%。创新及其他业务净收入为17 亿元，同比减少 17.8%，原因是该分部中网易严选、广告服务和其他一些业务净收入减少。 二季度，网易研发投入44亿元。从市场动作来看，网易在押注具身智能。7月，网易伏羲旗下网易灵动 发布了首个为露天矿山挖掘机装车场景打造的具身智能模型——"灵掘"。网易相关负责人提到，网易在 2021 ...

北京商报讯（记者 吴其芸）8月14日，网易有道公布2025年二季度未经审计的财务报告，报告期内，网 易有道净收入14.2亿元，同比增长7.2%；经营利润为2880万元，首次实现二季度盈利。 网易有道方面表示，智能硬件业务在报告期内持续改善业务健康度。二季度推出的有道词典笔S7 Pro和 A7，正在逐步扩大对中端市场的覆盖范围。 网易有道CEO周枫透露，即将推出全新智能硬件新品。 ...

Financial Performance - Q2 revenue was 27.9 billion RMB, a year-on-year increase of 9.4%, but below the expected 28.4 billion RMB [1] - Gross profit was 18.1 billion RMB, a year-on-year increase of 12.5%, with a gross margin of 64.9% [1][9] - Net profit reached 8.6 billion RMB, a year-on-year increase of 27.25%, but a significant quarter-on-quarter decline of 16.5% [1][10] - The company announced a dividend of 0.57 USD per ADS and has executed a share repurchase plan of 2 billion USD [1] Core Business - Online gaming revenue was 22.8 billion RMB, a year-on-year increase of 13.7%, but a quarter-on-quarter decline of 5%, falling short of the market expectation of 23.37 billion RMB [2] - The gaming business's gross profit was 16.01 billion RMB, slightly exceeding expectations, indicating ongoing cost control pressures [3] - The game "Dream of Jianghu" reached a peak of 2.93 million concurrent players in August, showcasing the enduring appeal of this 20-year-old IP [4] Non-Gaming Business - Net revenue from NetEase Cloud Music was 2 billion RMB, a slight year-on-year decline of 3.5%, with a quarter-on-quarter increase of 5.3% [6] - Youdao's performance was relatively stable, with net revenue of 1.4 billion RMB, a year-on-year increase of 7.2% [7] - Revenue from innovative and other businesses was 1.7 billion RMB, a significant year-on-year decline of 17.8%, primarily due to decreased income from NetEase Yanxuan and advertising services [8] Profitability and Cash Position - The company maintained a strong cash position with net cash of 142.1 billion RMB, an 8.1% increase from the beginning of the year [10] - Operating cash flow was 10.9 billion RMB, although it declined by 10% quarter-on-quarter, still indicating a healthy level [10] Future Outlook - The CEO emphasized the importance of exploring new player experiences and expanding self-developed IP products, with upcoming titles like "Sea of Oblivion" and "Return to Tang" being critical for assessing innovation and international strategy [11] - The continued expansion of Blizzard games in the Chinese market, including new content for "Hearthstone" and the 20th anniversary of "World of Warcraft," may provide new growth opportunities for the company [11]

Financial Data and Key Metrics Changes - Total net revenue for the second quarter was RMB 27.9 billion or approximately USD 3.9 billion, representing a 9.4% year-over-year increase [34] - Gross profit for the second quarter was RMB 18.1 billion, up 13% year-over-year, with a total gross profit margin of 64.7% [36] - Non-GAAP net income attributable to shareholders for the second quarter totaled RMB 9.5 billion or USD 1.3 billion, up 22% year-over-year [39] Business Line Data and Key Metrics Changes - Revenue from games and related VAS rose 14% year-over-year, with net revenues from online games at RMB 22.1 billion, a year-over-year increase of 15% [34][36] - Net revenue from Youdao was RMB 1.4 billion, up 7% year-over-year, driven by enhanced utilization of AI technology [35] - Net revenue from NetEase Cloud Music was RMB 2 billion, up 6% from the previous quarter but down 4% year-over-year [35] Market Data and Key Metrics Changes - The player base for the game "Mystery and Mayhem" surpassed 1 million shortly after its launch, ranking number two in the US iOS download chart [9] - "Once Human" reached number four on Steam's global top seller chart following its major content update [11] - "Fantasy Westward Journey Online" achieved a new all-time high peak in concurrent players, surpassing 2.93 million [16] Company Strategy and Development Direction - The company is focused on expanding its global reach through innovative game offerings and high-quality content updates [6][27] - There is a commitment to continuous investment in content creation and product development to maintain a healthy gaming ecosystem [38] - The company aims to leverage AI technology across its operations and game development to enhance user experiences [78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term performance of "Where Wings Meet," indicating a stable monetization cycle [45] - The company sees significant potential for Blizzard titles in the Chinese market, emphasizing the importance of aligning with local tastes [52] - Management highlighted the importance of ongoing updates and community engagement to sustain player interest in existing titles [67] Other Important Information - The company approved a dividend of USD 0.57 per ADS and repurchased approximately 22.1 million ADS for a total cost of about USD 2 billion [40] - The company is actively refining several upcoming titles, including "Sea of Venomance" and "Blood Message," with plans for release in 2026 [24][25] Q&A Session Summary Question: Monetization success of "Where Wings Meet" - Management indicated that "Where Wings Meet" has exceeded initial expectations in both active players and monetization, with a promising potential for sustainable success [44] Question: Performance of "Once Human" - Management noted that significant updates have driven a rebound in performance, with a balanced user distribution between China and international markets [47] Question: Blizzard titles performance - Management confirmed that Blizzard titles have surpassed previous metrics and see potential for attracting new players through localized improvements [52] Question: Competitive landscape for shooting games - Management acknowledged the high expectations for quality in the shooting game genre and committed to continued investment in this area [55] Question: Recovery of evergreen titles - Management reported stable improvements in "Eggy Party" and "Fantasy Westward Journey Online," attributing recovery to continuous innovation and marketing efforts [66] Question: AI integration in games - Management emphasized ongoing investments in AI technology to enhance game development and operations, with future potential for AI-designed games [78] Question: Performance of "Mystery and Mayhem" - Management shared that "Mystery and Mayhem" received positive feedback post-launch, but acknowledged long-term growth challenges [83]

Financial Data and Key Metrics Changes - Total net revenue for Q2 2025 was RMB 27.9 billion (approximately USD 3.9 billion), representing a 9.4% year-over-year increase [33] - Gross profit for Q2 2025 was RMB 18.1 billion, up 13% year-over-year, with a total gross profit margin of 64.7% [35] - Non-GAAP net income attributable to shareholders for Q2 totaled RMB 9.5 billion (approximately USD 1.3 billion), up 22% year-over-year [38] Business Line Data and Key Metrics Changes - Revenue from games and related VAS rose 14% year-over-year, with net revenues from online games at RMB 22.1 billion, a year-over-year increase of 15% [33] - Net revenue from Youdao was RMB 1.4 billion, up 7% year-over-year, driven by enhanced utilization of AI technology [34] - Net revenue from NetEase Cloud Music was RMB 2 billion, up 6% from the previous quarter but down 4% year-over-year [34] Market Data and Key Metrics Changes - The player base for the newly launched game "Mystery and Mayhem" surpassed 1 million, ranking number two in the US iOS download chart [7] - "Once Human" reached number four on Steam's global top seller chart following a major content update [10] - "Fantasy Westward Journey Online" achieved a new all-time high peak in concurrent players, surpassing 2,930,000 [15] Company Strategy and Development Direction - The company is focused on expanding its gaming portfolio with innovative titles and enhancing existing franchises to maintain player engagement [27] - There is a commitment to leveraging AI technology across various business lines, including learning services and online marketing [28] - The company aims to strengthen its global presence by publishing games in different regions and adapting to local market preferences [77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term performance of "Where Wings Meet," indicating stable growth and a promising monetization cycle [44] - The company acknowledged challenges in sustaining growth for "Mystery and Mayhem" but is actively working on strategies to enhance its long-term viability [82] - Management highlighted the potential for Blizzard titles in the Chinese market, emphasizing ongoing improvements to attract new players [51] Other Important Information - The company approved a dividend of USD 0.11 per share and repurchased approximately 22.1 million ADS for a total cost of approximately USD 2 billion under its share repurchase program [39] - The effective tax rate for Q2 was 14.7%, reflecting the company's operational strategies and tax policies [38] Q&A Session Summary Question: Monetization success of "Where Wings Meet" and potential of "Once Human" - Management indicated that "Where Wings Meet" exceeded initial expectations in both active players and monetization, showing potential for sustainable success [42][43] - For "Once Human," significant updates contributed to a rebound in performance, with a balanced user distribution between China and international markets [46] Question: Performance of Blizzard titles and future growth - Management noted that Blizzard titles have surpassed pre-shutdown metrics, with ongoing efforts to attract new players and engage those who have not returned [51] Question: Competitive landscape for shooting games - The company acknowledged the high expectations for quality in the shooting game genre and committed to continued investment to remain competitive [54] Question: Effectiveness of Marvel Rivals' new strategy - Management observed an upward trend in daily active users and revenue following the launch of new seasonal content, indicating the effectiveness of their strategy [58] Question: Updates on "Sea of Remnants" - Management expressed high confidence in "Sea of Remnants" becoming a top-tier game, with further details to be shared closer to its launch [59] Question: Status of "Anata" and competition - "Anata" is in the mass production stage, with a focus on creating superior gaming quality to differentiate from competitors [67]

Core Viewpoint - The company's second-quarter performance was slightly below market expectations, primarily due to a slowdown in its gaming business, which remains its core revenue driver [3][6][8]. Financial Performance - Total revenue for Q2 was 27.9 billion RMB, a year-on-year increase of 9.4%, but below the expected 28.4 billion RMB [6]. - Gross profit reached 18.1 billion RMB, a year-on-year growth of 12.5%, maintaining a high gross margin of 64.9% [6][14]. - Net profit was 8.6 billion RMB, up 27.25% year-on-year, but down 16.5% quarter-on-quarter, influenced by fluctuations in investment income and increased operating expenses [6][15]. - The company announced a dividend of 0.57 USD per ADS and has executed a share buyback plan worth 2 billion USD [6]. Core Business - Online gaming revenue was 22.8 billion RMB, a year-on-year increase of 13.7%, but a quarter-on-quarter decline of 5%, indicating a slowdown in growth momentum [6][8]. - The gaming business's gross profit was 16.01 billion RMB, slightly exceeding expectations, highlighting ongoing cost control pressures [9]. - Notable product performance included "Dream of Dreams" achieving a peak concurrent player count of over 2.93 million, showcasing the enduring appeal of long-standing IPs [10]. Non-Gaming Business - Net revenue from NetEase Cloud Music was 2 billion RMB, a slight year-on-year decline of 3.5%, reflecting structural changes in user payment habits [11]. - Youdao's performance was relatively stable, with net revenue of 1.4 billion RMB, a year-on-year increase of 7.2% [12]. - Revenue from innovation and other businesses fell sharply by 17.8% to 1.7 billion RMB, primarily due to declines in NetEase Yanxuan and advertising services [13]. Cash Position and Profitability - The company maintained a strong cash position with net cash of 142.1 billion RMB, an 8.1% increase from the beginning of the year [16]. - Operating cash flow was 10.9 billion RMB, although it decreased by 10% quarter-on-quarter, still indicating a healthy cash flow situation [16]. Future Outlook - The CEO emphasized the importance of exploring new player experiences and expanding self-developed IP products, with upcoming titles like "Forgotten Sea" and "Return to Tang" being critical for assessing the company's innovation and international strategy [17]. - The ongoing expansion of Blizzard games in the Chinese market, including new content for "Hearthstone" and "World of Warcraft," is expected to provide new growth opportunities [17].

Financial Performance - Net revenue for Q2 was 27.9 billion RMB, a year-on-year increase of 9.4%, but below the expected 28.4 billion RMB [4] - Gross profit was 18.1 billion RMB, a year-on-year increase of 12.5%, but also below expectations [4] - Net profit reached 8.6 billion RMB, a year-on-year increase of 27.25%, but a significant quarter-on-quarter decline of 16.5% [6] - The company maintained a high gross margin of 64.9% [6] - Cash position remains strong with net cash of 142.1 billion RMB, an 8.1% increase from the beginning of the year [6] Core Business Performance - The gaming and related services segment generated net revenue of 22.8 billion RMB, a year-on-year increase of 13.7%, but a quarter-on-quarter decline of 5% [2][4] - The gross profit from the gaming business was 16.01 billion RMB, slightly exceeding expectations, indicating ongoing cost control pressures [3] - The online music segment reported net revenue of 2 billion RMB, a slight year-on-year decline of 3.5% [5] - The innovative and other businesses segment saw a significant decline in revenue, down 17.8% year-on-year, primarily due to drops in revenue from various services [5] Product and Market Dynamics - Notable new product launches in overseas markets include "Out of Bounds" and "Marvel's Secret Wars," which achieved high download rankings but have not yet translated into significant revenue [3] - The classic IP "Fantasy Westward Journey" reached a peak of 2.93 million concurrent players, showcasing the enduring appeal of the brand [3] - Upcoming titles such as "Forgotten Sea" and "Return to Tang" are expected to test the company's innovation and international strategy [7] Cost and Expense Management - Total operating expenses amounted to 9 billion RMB, a quarter-on-quarter increase of 12.5%, driven by higher marketing expenditures in the gaming sector [6] - The company faces pressure on profitability due to increased operating costs and fluctuating investment income [6]

Financial Performance - NetEase's market capitalization was $854 billion as of August 13, 2025[9] - Net revenues for 2Q25 reached $39 billion[9] - Net income attributable to the company's shareholders for 2Q25 was $12 billion[9] - Basic net income per ADS (GAAP) for 2Q25 was $188[9] - Net cash as of June 30, 2025, amounted to $198 billion[9] Revenue Breakdown (2Q25) - Games and related value-added services generated $3184 million in net revenues[12] - Youdao's net revenues were $198 million[20] - NetEase Cloud Music's net revenues reached $275 million[23] - Innovative businesses and others contributed $237 million in net revenues[26] Games Performance - Online games accounted for 97% of games and related value-added services revenue in 2Q25[12] - Fantasy Westward Journey Online reached over 293 million peak concurrent players in August[18] ESG Ratings - NetEase received an AA rating from MSCI[9, 40] - NetEase's Sustainalytics rating indicates a low-risk company[40]

Core Insights - NetEase reported Q2 2025 net revenue of 27.9 billion yuan and a non-GAAP net profit attributable to shareholders of 9.5 billion yuan, with R&D investment of 4.4 billion yuan, representing an R&D intensity of 15.6% [1] - The company continues to focus on product quality and global expansion, driving long-term stable growth [1] Group 1: Gaming Performance - NetEase's gaming and related value-added services net revenue reached 22.8 billion yuan, with classic IP "Fantasy Westward Journey" achieving a record high in simultaneous online users [1][4] - New game releases such as "Yanyun Sixteen Sounds" and "Seven Days World" have shown strong performance, while the upcoming titles like "Forgotten Sea" and "Return to Tang" are generating significant market interest [3][4] - The company’s long-term IPs continue to perform well, with "Fantasy Westward Journey" and "Identity V" maintaining high rankings on iOS charts [4][5] Group 2: Innovation and R&D - NetEase invested 4.4 billion yuan in R&D, focusing on technological innovation across various sectors including gaming, music, and education [6][7] - The launch of the world's first engineering machinery embodied intelligent model "Lingjue" demonstrates the company's commitment to technological advancement [6] - NetEase Youdao's AI-driven services have improved user retention rates and sales, showcasing the effectiveness of AI in enhancing core business competitiveness [7] Group 3: E-commerce and Media - NetEase's e-commerce segment, particularly NetEase Yanxuan, saw a net revenue increase to 1.7 billion yuan, with popular products leading sales [2] - The media division has enhanced user engagement through AI-native creative assistance, resulting in a 25% increase in daily active creators on the news platform [2] Group 4: Social Responsibility and Safety Measures - The company has initiated a "Summer Minor Protection Special Action" to create a safer online environment for minors, implementing measures to limit high-age user account creation [8][9] - NetEase has actively participated in developing safety guidelines for AI services aimed at minors, contributing to industry-wide safety management efforts [9]