Sou Hu Cai Jing·2025-11-21 11:03Core Insights - NetEase reported unaudited financial results for the third quarter of 2025, showing a net revenue of 28.4 billion RMB, an increase of 8.2% year-over-year, and a net profit attributable to shareholders of 8.6 billion RMB, remaining stable compared to the previous quarter and significantly up from 6.5 billion RMB year-over-year [2] - The Non-GAAP net profit reached 9.5 billion RMB, reflecting a year-over-year increase of 26.7% [2] Business Segments - The gaming and related value-added services remain the core revenue driver, contributing 23.3 billion RMB, which is an 11.8% increase year-over-year. Notably, the game "Fantasy Westward Journey" achieved record concurrent online users, peaking at 3.58 million [4] - New and existing products such as "Party Animals," "Yanyun Sixteen Sounds," and "Marvel Showdown" also contributed to revenue growth. In contrast, the innovative business and other segments saw a revenue decline to 1.4 billion RMB, down 18.9% year-over-year, primarily due to a drop in revenue from Yanxuan and increased internal transaction offsets [6] Cash Flow and Shareholder Returns - As of September 30, NetEase reported a net cash position of 153.2 billion RMB (approximately 21.5 billion USD) and a record operating cash flow of 12.9 billion RMB for the quarter. The company announced a quarterly dividend of 0.1140 USD per share (0.57 USD per ADS) and extended its 5 billion USD share repurchase plan until January 2029 [6] Management Insights - During the earnings call, the CEO elaborated on product operations and global strategies, highlighting the success of "Fantasy Westward Journey" due to the removal of time-based fees and system simplification, which attracted returning and new players [6] - The CEO emphasized that NetEase is the only major gaming company in China successfully promoting pure Chinese martial arts themes overseas, with positive responses for games like "Yanyun Sixteen Sounds" and "Naraka: Bladepoint." The anticipated new title "ANANTA" won the "Future Expectation Award" at the Tokyo Game Show and is on track for a 2026 release [6] - In response to analysts' concerns about the slowdown in new product releases, the CEO stated that the company will focus more on existing successful products, adhering to a "few but excellent" strategy. He also mentioned the deep integration of AI applications in products like "Party Animals" and "Naraka: Bladepoint," with plans to continue enhancing content creation and operational efficiency [7] Market Reaction - As of November 21, NetEase's stock price fell by 3.76%, closing at 204.6 HKD per share [8]