Group 1 - The core viewpoint of the article is that NetEase's Q3 total net revenue was 28.4 billion yuan, representing a year-on-year growth of 8.2% and a quarter-on-quarter growth of 1.7%, which fell short of Citigroup and market expectations by 1.9% and 3% respectively, primarily due to lower-than-expected gaming revenue [1] - The non-GAAP net profit for the period was 9.5 billion yuan, with a profit margin of 33.5%, slightly below Citigroup's expectations by 0.5%, but generally in line with market expectations [1] - Citigroup noted that NetEase has never issued official earnings guidance, suggesting that the slight revenue miss and underperformance in gaming revenue do not constitute a disruptive impact [1] Group 2 - On a positive note, deferred revenue grew by 25% year-on-year, indicating that a significant portion of revenue recognized in Q3 may be pushed to subsequent quarters, which explains the slight revenue miss despite a seemingly strong gaming portfolio [1] - Citigroup set a target price of $158 for NetEase's U.S. stock and maintained a "Buy" rating [1]

Group 1: Company Updates - He Tongxue mentioned that his company might incur a loss of 1 to 2 million this year, attributing it to a controversial Weibo post that affected the brand image significantly [1] - Meizu responded to rumors about selling its headquarters, clarifying that it will not relocate as the lease is still long [2] - New Oriental's chairman, Yu Minhong, announced plans to take 20 outstanding employees and members to Antarctica next year, emphasizing the company's culture of allowing employee feedback [3] - Lenovo's CEO, Yang Yuanqing, revealed plans to launch a personal superintelligence system globally on January 6, which will integrate various devices and learn user habits [3] Group 2: Industry Developments - Guangdong province aims to strengthen the computing power industry and establish a significant semiconductor and integrated circuit hub by 2027 [4] - A report indicated that China's chip design industry sales are expected to reach 835.73 billion by 2025, growing by 29.4% year-on-year, driven by AI, electric vehicles, and rising memory prices [4] - Nvidia's CFO stated that the company is on track to achieve a revenue target of $500 billion from core AI chips over the next two years, with expectations for further growth [5] - NetEase reported Q3 revenue of 28.4 billion, with a net profit of 9.5 billion, driven by strong performance in gaming and AI services [5] - Lenovo's Q2 revenue reached 146.4 billion, marking a 15% year-on-year increase, with significant growth in its smart devices and infrastructure solutions [6] - Douyu reported Q3 revenue of 899.1 million, with a net profit increase of 232.8%, indicating improved profitability [7] Group 3: Financing and Market Activities - Newborn Intelligence completed over 100 million RMB in Series A financing, aimed at expanding sales and enhancing service systems [8] - Lingyi Technology submitted a listing application to the Hong Kong Stock Exchange [9] - WeRide's Robotaxi received a pure unmanned license in Switzerland, allowing it to operate on public roads, expanding its operational footprint internationally [10]

Core Insights - The article discusses the booming demand for talent in the short drama and animation industry, highlighting key recruitment trends and salary structures [3][9][19]. Group 1: Recruitment Trends - Major companies such as ByteDance, NetEase, and other leading internet firms are actively hiring for positions related to short dramas, with ByteDance offering the most diverse roles [3][4]. - The majority of job postings focus on content production roles, which account for over 70% of the total positions, indicating a significant demand for creative talent in the industry [9][10]. - AI-related positions are increasingly in demand, with over 23% of job postings related to AI short dramas and dynamic animations [9][10]. Group 2: Salary Structures - Salaries for short drama positions in first-tier and new first-tier cities typically range from 10K to 15K per month, with top roles offering up to 55K per month plus bonuses [19][21]. - Mid-sized companies in second and third-tier cities offer lower salaries, generally between 6K and 8K for similar roles [21]. Group 3: Geographic Distribution - Hangzhou is identified as the leading city for short drama production, hosting 189 related companies and a high demand for roles such as animation designers and storyboard artists [23][24]. - Other cities like Zhengzhou and Chongqing serve as secondary production bases, focusing on foundational creative tasks [25]. - Major cities like Guangzhou, Shenzhen, and Beijing are central to the commercialization of short dramas, with a high concentration of roles in advertising and user growth [26]. Group 4: Skills and Qualifications - The industry shows a preference for candidates with less than three years of experience, with nearly 80% of positions targeting this demographic [14][16]. - A significant portion of job postings (nearly 50%) only requires an associate degree, reflecting a trend that prioritizes skills over formal education [16][18]. - The demand for AI skills is becoming essential, with many roles requiring familiarity with AI tools and techniques [30]. Group 5: Future Competencies - The article emphasizes that by 2025, talent in the short drama industry will need to possess a combination of technical skills and commercial acumen, particularly in IP commercialization [29][31]. - Companies are encouraged to develop a robust talent cultivation system to remain competitive in the evolving landscape of the short drama sector [31].

Core Viewpoint - NetEase's Q3 performance fell short of expectations, with total revenue and adjusted EBITDA growing by 8.2% and 9.8% year-on-year to 28.4 billion and 8.9 billion respectively, missing estimates by 3.6% and 11.5% [1] Group 1: Financial Performance - Total revenue for Q3 reached 28.4 billion, reflecting an 8.2% year-on-year increase [1] - Adjusted EBITDA amounted to 8.9 billion, showing a 9.8% year-on-year growth [1] - Both revenue and EBITDA figures were below the estimates provided by the bank [1] Group 2: Gaming Revenue Insights - The recovery in online gaming revenue was slower than anticipated, with a year-on-year growth rate of 12.7% [1] - Key games such as "Fantasy Westward Journey," "Party Animals," and "Yun Yun Sixteen Sounds" contributed to the underperformance [1] - The personal computer gaming segment may be affected by a high base, as Blizzard games are set to return in Q3 2024, while new mobile games have not generated strong momentum [1] Group 3: Future Outlook - The company is focusing on fewer but higher-quality game developments, which may lead to increased volatility in gaming revenue [1] - There is an expectation for improved gaming revenue growth by 2026 with the release of major games [1] - The bank has raised its adjusted net profit forecasts for the next two years by 1% to 2%, while maintaining a target price of $140 for U.S. stocks and an "outperform" rating [1]

高盛发表研究报告指，网易第三季业绩逊于预期，但结构性增长仍然不变。网易专注于丰富现有常青游 戏组合，并搭配少量优质新游戏的策略，已开始展现成效。该行相信，网易将能充分发挥其研发实力， 强化海外业务增长；维持网易美股评级160美元，H股目标价250港元。 ...

Core Insights - The gaming sector showed strength on November 21, with the gaming ETF (159869) experiencing a near 1% increase, and notable gains from stocks like Fuchun Co. and Giant Network [1] - NetEase reported Q3 2025 earnings, revealing a net income of 28.4 billion yuan and a net profit of 9.5 billion yuan, with gaming revenue reaching 23.3 billion yuan [1] - The collaboration between "Delta Action" and "Counter-Strike: Future" is set to enhance player engagement and collectible value [1] Group 1 - The gaming ETF (159869) reached a product scale of 11.077 billion yuan as of November 20, allowing investors to easily invest in leading A-share gaming companies [1] - NetEase's classic product "Fantasy Westward Journey" achieved a record high in concurrent users, while new games like "Fate: Stars" topped the iOS download charts in 19 regions on launch day [1] - The gaming sector is expected to benefit from AI, content, and commercialization model transformations, with a focus on top gaming companies exploring AI and gaming integration [2] Group 2 - Major products such as "Honor of Kings" and "Delta Action" are anticipated to strengthen their market position through frequent content updates [2] - The gaming ETF (159869) tracks the Zhongzheng Animation and Gaming Index, reflecting the overall performance of A-share listed companies in the animation and gaming industry [2]

Core Viewpoint - The gaming sector is experiencing significant growth, with notable increases in stock prices and revenue for key players like NetEase, which reported strong financial results for Q3 2025. Group 1: Financial Performance - NetEase reported a net revenue of 28.4 billion yuan for Q3 2025, representing an 8.2% year-over-year increase [1] - The company's net profit attributable to shareholders reached 8.6 billion yuan, showing a 32% year-over-year growth [1] - Research and development expenses amounted to 4.5 billion yuan, with an R&D intensity of 16% [1] Group 2: Gaming Business Highlights - The gaming and related value-added services revenue for Q3 was 23.3 billion yuan, an increase of 11.8% year-over-year, contributing 82% of total net revenue [1] - Online games accounted for 97.6% of the net revenue in this segment, driven by popular titles such as "Dream of the Red Chamber" and new releases like "Yanyun Sixteen Sounds" [1] - The game "Dream of the Red Chamber" achieved a peak concurrent user count of 3.58 million, marking the fourth record high since its launch [2] Group 3: New Game Releases - Since the beginning of 2025, NetEase has launched approximately 9 new games, with "Yanyun Sixteen Sounds" gaining popularity both domestically and in the European and American markets [2] - The game reached a peak of over 190,000 concurrent users on Steam, entering the Top 4 of the global best-selling games list [2]

公司3Q25《梦幻西游》PC及手游、《蛋仔派对》等产品暑期内表现良好，体现公司长青游戏运营能 力。公司也在业绩会表示会把更多资源倾斜给长青项目，同时会给有创新力的团队更多机会。 关注全球化能力验证及新游节奏 新游《命运：群星》8月28日/10月16日分别在海外和中国市场发行，游戏入选亦2025TGA最佳移动游戏 提名。《燕云十六声》、《逆水寒》手游分别于11月14/7日在全球发行，其中《燕云十六声》上线首日 玩家规模超200万，登陆Steam全球游戏畅销榜Top4。新游方面，公司公告表示《遗忘之海》将于2026 年上线，同时储备有《无限大》《归唐》等产品。该行建议关注网易本土团队全球化能力升级，及重点 新游进展。 3Q25业绩 公司3Q25收入同增8%至284亿元，Non-GAAP归母净利润同增27%至95亿元，公司3Q25每股分红0.114 美元(0.57美元/ADS);同时宣布目前在运行的回购计划(不超过50亿美元)有效期延长至2029年1月，该计 划截至3Q25末已回购共20亿美元。此外，公司本季度实现投资收益13.8亿元增厚利润，相应抵消营销费 用开支增加对利润端的影响。 游戏及增值服务收入同增12% ...

Group 1 - The Hong Kong stock market opened lower today, with the Hang Seng Technology Index dropping by 2.21%, and the Hang Seng Internet ETF and Hang Seng Technology Index ETF falling by 2% and 1.6% respectively [1] - Despite the declines, there has been a net inflow of funds into the Hang Seng Technology Index ETF totaling 4.472 billion yuan over 16 trading days from October 30 to November 20, during which the index fell by 10.11% [1] - The Hang Seng Internet ETF also saw a net inflow of 2.518 billion yuan over the same period, despite a 10.24% decline [1] Group 2 - Recent adjustments in the Hong Kong stock market are attributed to factors such as the "AI bubble theory," tightening liquidity in the US market, and profit-taking by institutions after a more than 20% increase in the Hang Seng Technology Index this year [1] - The Hang Seng Technology Index has experienced a cumulative decline of over 18% since October 3, which may present a buying opportunity [1] - Positive factors include strong Q3 financial results and Q4 guidance from Nvidia, which may help alleviate concerns regarding the "AI bubble," along with Alibaba's upcoming financial report on November 25 [1] Group 3 - The Hang Seng Internet ETF has a weight of over 80% in leading internet stocks, with an AI content exceeding 90%, including major companies like Alibaba, Tencent, NetEase, JD.com, and Baidu [2]

Investment Rating - The report maintains a "Buy" rating for the company [7][5][31] Core Insights - The company's total revenue for Q3 2025 increased by 8% year-on-year to 28.4 billion RMB, slightly below consensus expectations by 3% [1][7] - Deferred revenue exceeded expectations by 3%, with a quarter-on-quarter increase of 2.5 billion RMB, primarily driven by "Fantasy Westward Journey" [1][2] - Adjusted net profit attributable to shareholders grew by 27% year-on-year to 9.5 billion RMB, surpassing consensus expectations by 1% [1][5] - The report anticipates significant improvement in revenue for Q4, driven by the launch of "Fantasy Westward Journey" and other new game releases [1][2] Revenue and Profitability - Q3 gaming and value-added services revenue rose by 12% year-on-year to 23.3 billion RMB, with gaming revenue increasing by 13% [2][12] - The gross margin for gaming and value-added services improved by 0.5 percentage points to 69.3% [2][12] - The report projects game revenue growth of 13% and 8% for 2025 and 2026, respectively [1][5] Game Performance and Updates - "Fantasy Westward Journey" launched a new play mode that significantly increased player engagement, with peak concurrent players reaching 3.58 million [1][13] - The international version of "Yanyun" performed well, reaching 2 million players on its first day on Steam, and is expected to generate 1-1.5 billion RMB in its first year [3][5] - "Egg Party" saw a notable increase in revenue, with iOS revenue growing by 122% year-on-year in October [2][22] Future Outlook - The company has adjusted its revenue forecasts downward for 2025-2027, primarily due to slowing growth in mobile game revenue [5][31] - The adjusted net profit forecasts for 2025, 2026, and 2027 are set at 39.3 billion RMB, 41.8 billion RMB, and 46.1 billion RMB, respectively [5][31] - The target price for the company is set at 170.12 USD, corresponding to an 18.3x PE ratio for 2026 [5][36]