丁磊仍在闷声发财，“AI”咋咋地

Core Insights - NetEase continues to generate significant profits quietly, with Q3 net revenue reaching 28.4 billion RMB, a year-on-year increase of 8.2%, and a non-GAAP net profit attributable to shareholders of 9.5 billion RMB, up 26.7% year-on-year [2][3] Financial Performance - The profit growth rate significantly outpaces revenue growth, a trend observed since 2025, with Q1 revenue at 28.8 billion RMB (up 7.4%), Q2 at 27.9 billion RMB (up 21.9%), and Q3 at 28.4 billion RMB [2][3] - Compared to other major companies like Tencent and Alibaba, NetEase's adjusted net profit growth rates are superior, with Tencent achieving 22%, 10%, and 18% growth in Q1, Q2, and Q3 respectively [3][4] Revenue Composition - In Q3, NetEase's gaming and related services generated 23.3 billion RMB, accounting for 82% of total revenue, with online games contributing 22.7 billion RMB, or 80% of total revenue [5][7] - The gaming sector remains the sole growth driver for NetEase, as other segments like NetEase Cloud Music and Youdao showed no growth, and other innovative business lines experienced declines [5][8] Strategic Direction - Despite the overall positive performance in gaming, NetEase has adopted a more conservative strategic approach, particularly in AI and technology sectors, unlike other major players aggressively pursuing AI investments [9][10] - R&D investment reached a record high of 16.5 billion RMB in 2023, up 44.8% year-on-year, but growth in R&D spending has slowed in 2024, indicating a shift in focus [11][13] AI Positioning - While other tech giants are heavily investing in AI, NetEase's efforts appear limited, with no significant presence in the top AI native applications as of September [13][15] - NetEase's AI applications are primarily focused on vertical scenarios rather than broad-based models, indicating a more cautious approach to AI integration [15]