Financial Data and Key Metrics Changes - Total revenues increased by 8% year over year, reaching RMB 28.4 billion in Q3 2025 [4][26] - Revenues from games and related VAS grew by 12% year over year, totaling RMB 23.3 billion [26] - Gross profit for Q3 2025 was RMB 18.2 billion, up 10% year over year, with a gross profit margin of 64.1% [28][30] - Non-GAAP net income attributable to shareholders was RMB 9.5 billion, or $1.3 billion, up 27% year over year [31] Business Line Data and Key Metrics Changes - Net revenues from online games were RMB 22.8 billion, up 3% quarter over quarter and 13% year over year [27] - Youdao's net revenue reached RMB 1.6 billion, representing a 15% increase quarter over quarter and a 4% increase year over year [27] - NetEase Cloud Music's net revenue was RMB 2 billion, stable quarter over quarter but down 2% year over year [27] Market Data and Key Metrics Changes - The new game "Destiny Rising" topped the iOS download chart in the U.S. and other major Western markets shortly after its launch [5] - "Where Winds Meet" achieved a peak of 190,000 concurrent players shortly after its global launch, securing a top position on Steam [8][9] Company Strategy and Development Direction - The company aims to advance development capabilities and global reach while scaling original IP into lasting franchises [26] - Focus on long-term development and providing diverse choices within games, particularly for successful titles like "Fantasy Westward Journey" [38] - The strategy includes a prudent approach to launching new games, concentrating resources on high-quality flagship products [60][68] Management Comments on Operating Environment and Future Outlook - Management noted that the gaming trend in China and overseas is positive, with successful experiences in international markets [44] - The company is confident in its ability to bring high-quality content and services to global gamers [45] - Management acknowledged the impact of competition but highlighted a recovery in metrics for "Identity V" since the start of the school year [51] Other Important Information - The company announced an extension of its share repurchase program for an additional 36 months [33] - Cash position remains robust, with net cash of approximately RMB 153.2 billion as of September 30, 2025 [32] Q&A Session Summary Question: Strategy for "Fantasy Westward Journey" and user demographics - Management highlighted the stable economy system and enriched gaming experiences as key factors for the game's longevity, with a focus on attracting both returning and new players [36][38] Question: Gaming trends in China and overseas expansion strategy - Management discussed successful titles in overseas markets and the unique position of NetEase in bringing authentic Chinese games to global audiences [44][45] Question: Performance of "Identity V" and future growth strategies - Management acknowledged recent volatility but noted a recovery in metrics and plans for new content and marketing campaigns [49][51] Question: Impact of organizational changes on game operations - Management stated that recent adjustments are part of normal personnel turnover and aim to enhance focus and efficiency without impacting daily operations [62][63] Question: Integration of AI in games and future game genres - Management emphasized the importance of AI in game development and operation, with a focus on high-quality flagship products rather than a large quantity of new releases [68]

Financial Data and Key Metrics Changes - Total revenues increased by 8% year over year, reaching RMB 28.4 billion in Q3 2025 [4][26] - Revenues from games and related VAS grew by 12% year over year, totaling RMB 23.3 billion [26] - Gross profit for Q3 2025 was RMB 18.2 billion, up 10% year over year, with a gross profit margin of 64.1% [28][30] - Non-GAAP net income attributable to shareholders was RMB 9.5 billion, or $1.3 billion, up 27% year over year [31] Business Line Data and Key Metrics Changes - Net revenues from online games were RMB 22.8 billion, up 3% quarter over quarter and 13% year over year [27] - Youdao's net revenue reached RMB 1.6 billion, representing a 15% increase quarter over quarter and a 4% increase year over year [27] - NetEase Cloud Music's net revenue was RMB 2 billion, stable quarter over quarter but down 2% year over year [27] Market Data and Key Metrics Changes - The new game "Destiny Rising" topped the iOS download chart in the U.S. and other major Western markets shortly after its launch [5] - "Where Winds Meet" achieved a peak of 190,000 concurrent players within two days of its global launch [9] - "Minecraft China Edition" reached 1.25 million concurrent players, marking a significant milestone in its eighth year of operation [23] Company Strategy and Development Direction - The company aims to advance development capabilities and global reach while scaling original IP into lasting franchises [26] - Focus on long-term development and providing diverse choices within existing games to meet community demands [35] - The strategy includes a prudent approach to launching new games, concentrating resources on successful products [46] Management Comments on Operating Environment and Future Outlook - Management noted that the gaming trend in China and overseas is positive, with successful experiences in international markets [36] - The company is confident in its ability to bring high-quality content and services to global gamers [36] - Management acknowledged the impact of competition but highlighted strategies to maintain engagement and growth [39] Other Important Information - The board of directors approved a dividend of $0.114 per share, or $0.57 per ADS [31] - The share repurchase program of up to $5 billion has been extended for an additional 36 months [32] Q&A Session Summary Question: Operational strategy for Fantasy Westward Journey - The longevity of Fantasy Westward Journey Online is attributed to its stable economy system and enriched gaming experiences [34] Question: Gaming trend in China and overseas expansion strategy - Successful experiences in overseas markets have been accumulated, with positive feedback on recent global releases [36] Question: Volatility in Identity V's growth and strategy for improvement - The impact of competition has eased, and new content and marketing campaigns are being prepared for the upcoming season [39] Question: Organizational changes in the game department - Recent adjustments are part of normal personnel turnover and aim to enhance focus and efficiency without impacting operations [45] Question: Integration of AI in games - The company has significant experience in using AI for game development and operations, focusing on enhancing user experience [48]