Core Insights - NetEase reported Q2 2025 net revenue of 27.9 billion yuan, a year-on-year increase of 9.4% [1] - Gross profit for the quarter was 18.1 billion yuan, reflecting a year-on-year growth of 13.3% [1] - Non-GAAP net profit attributable to shareholders was 9.5 billion yuan, up 21.8% year-on-year but down 15.2% quarter-on-quarter [1] Business Segments - The gaming segment remains the core of NetEase's business, accounting for 81.7% of total revenue, with net income from gaming and related services reaching 22.8 billion yuan, a 13.7% year-on-year increase [1] - Notable game performance includes "Identity V" and new titles like "Yanyun Sixteen Sounds" and "Marvel Duel," contributing to revenue growth, although there was a quarter-on-quarter decline due to various self-developed and licensed games [1][2] - NetEase Cloud Music, the second-largest business segment, reported net revenue of 2 billion yuan, a year-on-year decline of 3.5%, primarily due to a drop in social entertainment services [2] Other Business Highlights - NetEase Youdao achieved net revenue of 1.4 billion yuan, a year-on-year increase of 7.2%, marking its first profitable Q2 with an operating profit of 28.8 million yuan [3] - Youdao's revenue growth was driven by online marketing and learning services, although smart hardware revenue fell by 23.9% to 127 million yuan [3] - As of June 30, 2025, NetEase's net cash balance was 142.1 billion yuan, up from 116.1 billion yuan in the same period of 2024 [3]