网易云音乐(09899) - 2025 - 中期财报

Company Information Board of Directors and Committees The Board of Directors comprises Mr. Ding Lei (Chairman and CEO), two executive directors, one non-executive director, and three independent non-executive directors, with audit, remuneration, and nomination committees established - Board members include Chairman and CEO Mr. Ding Lei, two executive directors, one non-executive director, and three independent non-executive directors[5] - The Audit Committee, Remuneration Committee, and Nomination Committee are all established and chaired by independent non-executive directors[5] Key Contacts and Legal Information The company secretary is Ms. Wong Wai Yee, authorized representatives are Mr. Li Yong and Ms. Wong Wai Yee, auditor is PwC, registered in Cayman Islands with headquarters in Hangzhou, China, and legal counsel covers multiple jurisdictions - The company secretary is Ms. Wong Wai Yee, and authorized representatives are Mr. Li Yong and Ms. Wong Wai Yee[5] - The auditor is PricewaterhouseCoopers[5] - The company's registered office is in the Cayman Islands, its principal place of business in Hong Kong is in Causeway Bay, and its headquarters are in Hangzhou, China[5] - Legal counsel covers Hong Kong, US, China, and Cayman Islands law[6] Share and Banking Information The principal share registrar is in the Cayman Islands, Hong Kong share registrar is Hong Kong Registrars Limited, main bank is ICBC Hangzhou Branch, stock code is 9899, and investor relations website is ir.music.163.com - The principal share registrar is Maples Fund Services (Cayman) Limited, and the Hong Kong securities registrar is Hong Kong Registrars Limited[6] - The main bank is ICBC Hangzhou Branch[6] - The company's stock code is 9899, and the investor relations website is http://ir.music.163.com[6](index=6&type=chunk) Financial and Business Highlights IFRS Measures For the six months ended June 30, 2025, revenue decreased by 6.0% to RMB 3.8 billion, gross profit decreased by 2.3% to RMB 1.39 billion, while operating profit surged 40.8% to RMB 0.84 billion, and profit for the period increased 132.4% to RMB 1.9 billion For the six months ended June 30, 2025, IFRS Measures | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,827,117 | 4,070,493 | -6.0% | | Gross Profit | 1,392,485 | 1,425,731 | -2.3% | | Operating Profit | 844,506 | 599,933 | +40.8% | | Profit Before Income Tax | 1,068,060 | 813,578 | +31.3% | | Profit for the Period | 1,882,142 | 809,949 | +132.4% | Non-IFRS Measures Under non-IFRS measures, for the six months ended June 30, 2025, adjusted operating profit grew 35.0% to RMB 0.905 billion, and adjusted net profit increased 121.0% to RMB 1.946 billion, primarily adjusted by adding back equity-settled share-based payments For the six months ended June 30, 2025, Non-IFRS Adjusted Financial Metrics | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Adjusted Operating Profit | 905,360 | 670,850 | +35.0% | | Adjusted Net Profit | 1,946,353 | 880,749 | +121.0% | - Non-IFRS measures adjust operating profit and net profit by adding back equity-settled share-based payments (primarily share incentive expenses) to better reflect core operating performance[10] Management Discussion and Analysis Business Review In H1 2025, the company focused on high-quality development of its core music ecosystem, enhancing user engagement through content optimization, personalized distribution, innovative features, and community building, resulting in 15.2% growth in membership subscription revenue and a gross margin increase to 36.4% - The company is committed to high-quality development of its core music ecosystem, enhancing user attraction and engagement through content optimization, personalized distribution, innovative features, and community attributes[12] - Membership subscription revenue increased by 15.2% year-on-year, primarily due to subscriber growth, although average revenue per paying user was slightly diluted by changes in subscriber structure[14] - Gross margin reached 36.4% in H1 2025, a significant improvement from H1 2024, benefiting from business scale expansion, strong monetization of core online music services, and continuous cost optimization[14] User Growth and Engagement In H1 2025, the company maintained steady growth in total monthly active users, with the DAU/MAU ratio consistently above 30%, and increased mobile listening time and user engagement - Total monthly active users maintained a steady growth momentum in H1 2025[12] - The daily active users/monthly active users ratio grew steadily, remaining above 30%[12] - User mobile listening time increased, and engagement improved[12] Content Ecosystem and Original Music The company continuously enriched its unique content reserves, expanded licensed content including K-Pop labels and renowned Chinese musicians, and actively promoted original Chinese music, with self-produced tracks like 'Dilemma' gaining popularity - Continuously enriched unique content reserves and expanded licensed content, including popular K-Pop labels such as RBW and StarShip Entertainment[13] - Supplemented works by renowned Chinese musicians such as Li Jian, Zhang Yixing, Chen Chusheng, and Jike Junyi[13] - Actively promoted original Chinese music, with several self-produced tracks like 'Dilemma' gaining popularity both on and off the platform[13] Product Optimization and Innovative Features In H1 2025, the company upgraded its main product for enhanced visual appeal, simplification, and ease of use, delivering superior audio-visual experiences through advanced personalized distribution and innovative features like 'Shenguang Player,' while expanding interactive scenarios to boost user activity - Main product upgrades and optimization enhanced visual appeal, simplification, and ease of use[13] - Provided superior audio-visual experiences through advanced personalized distribution and innovative features like "Shenguang Player"[13] - Expanded and enhanced interactive scenarios, strengthened the music community, and increased user activity and engagement[13] Monetization and Profitability In H1 2025, the company's music-centric monetization capabilities grew steadily, with membership subscription revenue up 15.2%, gross margin rising to 36.4%, and improved profitability driven by subscriber growth, core business monetization, and cost optimization - Membership subscription revenue increased by 15.2% year-on-year, primarily due to subscriber growth[14] - Gross margin reached 36.4% in H1 2025, a significant improvement compared to the same period in 2024[14] - Profitability improved due to business scale expansion, strong monetization of core online music services, and continuous cost optimization[14] Future Strategic Focus The company's future strategy focuses on efficiently enriching differentiated content, optimizing music listening and recommendation, fostering a music-oriented community, enhancing user willingness to pay, and improving profitability through cost optimization and operational efficiency - Further enrich and enhance differentiated content with higher efficiency, deepen cooperation with copyright holders, and strengthen independent musician incubation and self-produced music capabilities[14] - Provide an ultimate music experience by optimizing music listening experience and recommendation features[14] - Cultivate a music-oriented community ecosystem, expand social scenarios and ecosystems, and explore innovations in the social domain[14] - Improve profitability through continuous cost optimization, operational efficiency enhancements, and strict cost control[14] Comprehensive and Differentiated Content Ecosystem The company continuously expanded its licensed and original music reserves, supporting independent musicians and self-produced music to promote original Chinese music, with over 819,000 registered independent musicians and 4.8 million tracks by June 2025, while also strengthening partnerships for K-Pop, Chinese, and niche genres - Continuously expanded unique content reserves, covering licensed tracks and original music, actively promoting the development of original Chinese music[16] - As of June 2025, the platform had over 819,000 registered independent musicians, who