Hua Er Jie Jian Wen·2025-11-20 10:13Core 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]