Investment Rating - The investment rating for the company is "Outperform the Market" [5][26]. Core Insights - The company reported a revenue increase of 8% year-on-year, with a Non-GAAP net profit of 9.5 billion yuan, reflecting a 27% growth [1][9]. - Deferred revenue grew by 25%, indicating strong future revenue potential [2][26]. - The online gaming segment showed robust performance, with revenue reaching 22.8 billion yuan, a 13% increase year-on-year [2][14]. - The company is focusing on global expansion and the launch of new games, which are expected to drive future growth [2][17]. Financial Performance - In Q3 2025, the company achieved a gross margin of 64.1%, up 1.2 percentage points year-on-year [1][10]. - The total operating expense ratio was 36%, with a sales expense ratio of 15.7%, reflecting increased marketing spending [1][10]. - The forecasted adjusted net profits for 2025-2027 are 39.3 billion, 42.5 billion, and 46.7 billion yuan, respectively [26][28]. Game Performance - Classic games like "Dream of the Red Chamber" continue to attract players, showcasing the company's long-term operational capabilities [2][17]. - The highest concurrent player count for "Dream of the Red Chamber" reached 3.58 million, indicating strong player engagement [2][17]. - New game releases and global launches are anticipated to enhance the company's market presence [2][17]. Other Business Segments - Youdao's revenue increased by 4% year-on-year, with advertising services growing significantly by 51% [3][18]. - Net revenue from NetEase Cloud Music was 2 billion yuan, a 2% decline year-on-year, with a gross margin of 35.4% [3][23].