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 ...

Core Viewpoint - The gaming industry is witnessing a trend where mobile game manufacturers are withdrawing from channel servers due to the criticized high revenue-sharing model imposed by Android channels, particularly OPPO [1]. Group 1: Industry Trends - Since October, several popular mobile games from NetEase have withdrawn from OPPO channel servers, including titles like "Fantasy Westward Journey," "Sky: Children of the Light," and "Big Talk Westward Journey" [1]. - Players are required to migrate their accounts and assets within a limited timeframe to continue playing on NetEase's official servers [1]. Group 2: Company Actions - The withdrawal from channel servers is part of a long-standing conflict within the industry regarding channel partnerships and revenue sharing [1]. - In 2021, NetEase's founder, Ding Lei, publicly criticized the high revenue-sharing model of Android channels during a financial report conference call [1].

本公告乃根據香港聯合交易所有限公司證券上市規則（「上市規則」）第13.09條及 證券及期貨條例（香港法例第571章）第XIVA部項下的內幕消息條文（定義見上市 規則）作出。 於2025年11月20日（香港時間交易時段結束後），本公司控股股東及母公司網易股 份有限公司（「網易」）（美國納斯達克上市公司，納斯達克代號：NTES，及香港聯 合交易所有限公司（「聯交所」）上市公司，港交所代號：9999），公佈截至2025年9 月30日止第三季度的未經審計財務業績（「網易業績公佈」）。網易業績公佈載有對 本公司2025年第三季度的財務表現的提述。網易業績公佈的副本分別可於聯交所 網站www.hkexnews.hk及網易網站http://ir.netease.com/查閱。 網易業績公佈所載的財務業績，包括與本公司相關者，已按美國公認會計準則編 製，該準則與國際財務報告準則（「國際財務報告準則」）不同。本公司採用國際財 務報告準則編製及呈列本公司的財務資料。因此，網易業績公佈所載的財務資料 與本公司已公佈及將公佈的財務業績不可直接比較。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 ...

Core Viewpoint - NetEase (NTES.US) reported a decline of 5.3% in pre-market trading, with shares priced at $126.35, following the release of its third-quarter earnings which fell short of market expectations [1] Financial Performance - The company reported third-quarter revenue of 28.36 billion yuan, representing a year-on-year increase of 8.2%, but below the market estimate of 29.22 billion yuan [1] - Gross profit for the quarter was 18.2 billion yuan, also missing the market forecast of 18.64 billion yuan [1] - Non-GAAP net profit attributable to shareholders was 9.5 billion yuan, up from 7.5 billion yuan in the same period last year [1] - Adjusted earnings per ADS from continuing operations were 14.73 yuan, slightly below the market expectation of 14.76 yuan [1] Research and Development - The company invested 4.5 billion yuan in research and development, with an R&D intensity of 16%, which is leading in the industry [1] Online Gaming Services - Net revenue from online gaming services was 23.3 billion yuan, falling short of the market estimate of 23.88 billion yuan [1] Other Revenue Streams - Revenue from innovative businesses and other sources was 1.4 billion yuan, showing a decline of 18.9% [1]

Group 1: Financial Performance - Net income for Q3 2025 was RMB 28.4 billion (USD 4 billion), an increase of 8.2% year-over-year [1] - Gross profit for the same period was RMB 18.2 billion (USD 2.6 billion), reflecting a year-over-year increase of 10.3% [1] - Net profit attributable to shareholders was approximately RMB 8.616 billion (USD 1.2 billion), showing a year-over-year growth of 31.77% [1] - Basic earnings per share for Q3 2025 was USD 0.38, with a quarterly dividend of USD 0.1140 per share [1] Group 2: Business Segments - Revenue from online games and related value-added services was RMB 23.3 billion (USD 3.3 billion), up from RMB 22.8 billion in the previous quarter and RMB 20.9 billion year-over-year [1] - Online games accounted for approximately 97.6% of the segment's revenue, compared to 97.1% in the previous quarter and 96.8% year-over-year [1] - The increase in online game revenue was driven by self-developed games such as "Dream of Dreams" and "Marvel Showdown," as well as several agency games [1] - Youdao's revenue for Q3 2025 was RMB 1.6 billion (USD 228.8 million), with a quarter-over-quarter increase attributed to smart hardware and online marketing services [1] Group 3: Other Business Segments - Net revenue from NetEase Cloud Music for Q3 2025 remained stable at RMB 2 billion (USD 275.9 million) compared to the previous quarter and year-over-year [2] - Revenue from innovation and other businesses was RMB 1.4 billion (USD 202.1 million), down from RMB 1.7 billion in the previous quarter and RMB 1.8 billion year-over-year [2] - The decline in this segment was primarily due to reduced revenue from NetEase Yanxuan and increased internal transaction offsets [2] Group 4: Share Buyback Program - The company announced an extension of its previously approved share buyback program, allowing for the repurchase of up to USD 5 billion of its American Depositary Shares and ordinary shares until January 9, 2029 [2] - As of September 30, 2025, approximately 22.1 million American Depositary Shares had been repurchased under this program, totaling around USD 2 billion [2]