業績會第一現場

was live · ·

網易2025Q3業績直播

Key Takeaways (AI-Generated)

财务表现

- 第三季度总净收入达284亿元人民币，同比增长8%

- 游戏及相关服务收入同比增长12%至233亿元人民币

- 在线游戏净收入228亿元，环比增长3%，同比增长13%

- 非通用会计准则下归属股东净利润95亿元，同比增长27%

业务进展

- 《命运崛起》8月28日全球发布后登顶美国及近100个市场iOS下载榜首

- 《漩涡迷城》11月14日全球发布两天内达19万并发玩家峰值，Steam全球最受欢迎游戏第5名

- 《梦幻西游》网络版11月初创下358万并发玩家纪录

- 《蛋仔派对》7月三周年庆期间日活跃用户超3000万

下一季度业绩指引

- 董事会批准每股0.11美元或每ADS 0.57美元股息

- 50亿美元股份回购计划延长36个月至2029年1月9日

- 截至9月30日已回购约20亿美元股份

机会

- 市场扩张：成功将中国主题游戏推向全球市场，是唯一成功将正宗中国内容带到海外的中国大公司

- 产品创新：在《蛋仔派对》等游戏中开发AI功能，管理层称比海外同行有更多AI开发经验

- 战略合作：与暴雪继续合作本地化内容，包括中国专属服务器和新中国英雄

风险

- 市场竞争：《第五人格》暑期受竞品影响，特别是在低线城市

- 运营中断：游戏部门近期组织变动和人员流动，尽管管理层称不会影响日常运营

Full Transcript (AI-Generated)

Operator

Good day and welcome to the Net Ease Third Quarter 2025 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Brandy Piacenti. Please go ahead.

Brandy Piacenti

Thank you, operator. Please note that today's discussion will contain forward-looking statements relating to the future performance of the company and are intended to qualify for the safe Harbor from liability as established by the US Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors. Some of these risks are beyond the Company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion.

A general discussion of the risk factors that could affect Nettie's business and financial results is included in certain filings of the Company with the Securities and Exchange Commission, including its annual report on Form 20F, and in announcements and filings on the Hong Kong Stock Exchanges website. The Company does not undertake any obligation to update this forward-looking information except as required by law.

During today's call, management will also discuss certain non GAAP financial measures for comparison purposes only. For a definition of non GAAP financial measures and a reconciliation of GAAP to non GAAP financial results, please see the third quarter 2025 earnings release issued earlier today. As a reminder, this conference is being recorded.

In addition, an investor presentation and a webcast replay of this conference call will be available on the Net Ease corporate website at ir.netease.com. Joining us today on the call from Net Ease and senior management are Mr. William Dang, Chief Executive Officer, Mr. Gir Pong Hu, Executive Vice President and Mr. Bill Pong, Vice President of Corporate Development. I will now turn the call over to Bill, who will read the prepared remarks on William's behalf.

Bill Pong

Thank you, Randy, and welcome everyone to today's call. Before we begin, I would like to remind everyone that all percentages are based on RMB. The third quarter marked continued momentum and strong execution across our net ease family. By uniting creativity with exceptional operations, we created more meaningful connections with players driven by our diverse portfolio of games that expanded our global reach and reignited our player enthusiasm for Heat franchises.

Total revenues increased 8% year over year, reaching RMB 28.4 billion in the third quarter and revenues from our games and related VS grew 12% in the third quarter compared with the same period last year. Innovative creativity and long term operation remain the defining force behind Nettie's ongoing player engagement and global expansion. Whether for new launches or established titles, our teams are dedicated to delivering unexpected gaming experiences and responsive live services that are winning over players worldwide.

This strategic creative approach continues to gain traction overseas, amplifying the influence and excitement of multiple games in the third quarter, including our new releases, Desi Rising. Our new free to play mobile sci-fi RPG shooter quickly topped iOS download chart in the United States and other major Western markets following its global launch on August 28. The game has received widespread acclaim, securing leading positions on ILS download chart across nearly 100 markets worldwide.

Featuring Destiny's iconic powerful game gunplay across diverse mode, setting a new timeline. The game has earned positive feedback from long time fans while gaining traction within the broader shooter game community. The excitement continued in China, where Destiny Rising debuted on October 16th and immediately topped LS downloading chart. Join in players nationwide to experience the streaming shooting action at their fingertips.

Our rivals continue to activate superhero shooter fanbase around the world. Kicking off its fourth season on September 12th, the game introduced a wealth of refreshing new content, features, special events, and team maps. Following the update, they reached #3 on Steam's Global Top Seller chart. The new map Kunlun Heart of Heaven transport players to the Asian E, while the debut of Angela and eagerly anticipated Vanguard spurred excitement across the player community.

Additionally, inspired by Marvel Animations, Marvel Zombies, a limited time Pve Zombie mode was released featuring challenging bosses Zombie Namer and Queen of the Dead just in time for Halloween. Beyond the game, Marvel Rivals Ignite celebrated its Grand Finals at Dreamhat Atlanta, held in collaboration with ESL Physics Group. Elite players from around the world showcase their exceptional skills and strategies, drawing massive engagements in both on site and online and reflecting more Rivals growing appeal.

As we continue to enrich our global portfolio through diverse partnerships, our original titles are also gaining increasing momentum worldwide, delivering A distinctive survival open world experience to players globally. Once Human launched engaging updates in the third quarter, eagerizing its growing global community. On October 30th, the game introduced a major new scenario centered on the capture and the customization of deviations, alongside a significant refresh of the PvP experience that provides more intense combat options.

The highly anticipated collaboration events with the global Heat game Powerwall also went live on the same bed, bringing popular polls to a dedicated in game island which further evigrated the player community. We recently shared some of our upcoming international expansion plans at worldwide gaming events like Gamescon and the Talking Game Show 2025, generating even more excitement in the community with engaging player interactions.

We exhibited Whirlwind Smith and Gamescon 2025, showcasing our creative ambition in cultural storytelling and next generation without work building in China. Whirlwind Meet continue to captivate Wu Jiao fans with this narrative rich setting, authentic Chinese art, Chinese martial arts themes and innovative game play that combines single and multi permits. Each newly unveiled district not only engages our existing fans but also attract new players, driving continued growth in both revenue and monthly active user to new highs in the third quarter.

On November 14th, we brought Whirlwind, Smith's Eastern Sea and Open world featuring dynamic comeback to the global market on both PC and PlayStation 5. Within just two days, we achieved a peak of 190,000 concurrent players secure the number 5 spot among the most played games and #4 position for top seller globally on Steam. Additionally, they became one of the top 10 best seller across the United States, Germany, France and several other regions on PlayStation.

This underscores the widespread appeal of our captivating Wuxi universe to an even broader audience. To further enhance community engagement, the mobile version has commenced pre registration and is set to launch soon. Our highly anticipated title Atlanta also garnered significant attention at the Talker game show. Players showed enthusiasm for in depth game trailers and engaging hands on play testing.

They were joined by the game's imaginative action design, high fatality visuals and modern urban storytelling that is dynamic and immersive city environment. Atlanta lands high energy action with open world freedom also. Bring players and experience that goes well beyond conventional gameplay. We are pleased to see multi excitement and anticipation among this title, including recognition from the Japan Game Award 2025 Future Division, where it was named as one of the most promising upcoming games.

Our groundbreaking MMO, Sort of Justice went global across mobile and PC platform on November 7th, topping the iOS download chart in multiple regions. The intellectual release included AI powered MPCS and an intelligent face creation system. We showcased this at the Topic Game show in September, highlighting how emerging technologies are reshaping gameplay experiences. Sort of Justice also continued to engage domestic players in the third quarter, which is ever evolving gameplay and rich content with a global version.

Now live source of Justice is bringing its immersive world and cutting edge AI enhancement to broader international audience. On some of the new releases we are brought to the international stage. Our established game are also gaining steam in multiple regions worldwide. Our release, the car simulation game Racing Master, has continued to gain popularity overseas through localized content, making a highly resonated with players in Japan since it launched there last year.

Player engagement spiked in August during its anniversary celebration, with carefully designed in game content boosting the game's performance in Japan. Exciting E sports events like the Racing Master 2025 Legend Cup Finals held in Bangkok in August, brought passionate racers and fans from across Asia together, uniting Racing Masters distinctive global community. As firm believers in live operations, we stay closely attuned to players involving expectations across every title, and our domestic games continue to deliver strong performances.

Each game updates present new opportunities to entertain, engage and grow our communities. This approach continues to resonate with players, driving steady growth across our domestic portfolio for both new titles and games that has been around for decades. Fantasy Westward Journey Online, one of our long longest running flagship titles at 22 years and counting, amplifies our dedication to sustain high quality operations.

The game is built around an inclusive ecosystem that allows players of all types to find enjoyment. We continue to inject fresh vitality through new features and mechanics. In July, we launched our innovative Unlimited server, which offers classic gameplay under popular modern model that eliminates the entry barrier of upfront time based payments. This generated substantial enthusiasm from long time fans and new commerce alike, significantly boosting player engagement.

As a result, it has achieved 4 successive record, peaking concurrent player counts since the third quarter, reaching a height of 3.58 million in early November. Fantasy Was for Journey Mobile also continues to evolve as we regularly introduce new features that players love. To meet players demand. We launched our new casual server, which is designed for fun and streamlined play.

It offers Fantasy Was for Journey Mobile signature gameplay in a lighter format featuring simple progression, low threshold and intuitive controls. With a surge of new and returning players monthly active users reached a two year high in September. Another long beloved MMO, Qingxia continues to engage its community with deeply resonated updates. In October, we concluded close beta testing for Qingxia to Classic.

This version recreates the game's iconic art style and slower paced gameplay, allowing players to experience its distinctive Chinese cultural essence. Meanwhile, the existing Qianxia client will undergo a complete upgrade, with player progression seamlessly shared with Qianxia Wanxiang, the brand new cross-platform client powered by Visaya, or Flagship in house engine. The upgrade will both enhance graphic quality and expand access for players across PC and mobile platforms, allowing them to experience the Qianxia universe everywhere.

Identify stand base maintain the high engagement level in the third quarter, supported by our steady cadence of seasonal updates and partnerships. New characters released along with each season update, including Hunter of Curious and the survival of Lanterns in the third quarter, infused the new energy into Identity 5 distinctive World, reinforcing Identity 5 as a top destination for asymmetric gameplay fans.

In addition, the game's collaboration with the Palace Museum Classic on September 25th added the majestic rooftops of the Forbidden City to identify this manner, adding a new layer of cultural depth. Nike Party also experienced robust growth with the 3rd Anniversary Celebration in July sparking renewed enthusiasm across the player community. Daily active users exceeded 30 million and average play time hit record high, driving historical engagement.

Level 2 new gameplay boats quickly followed in September. Spooky Treasure Squad presents an intense extraction experience and A Crazy Farm introduces a casual and social Farming Simulator. Both were highly placed and practical way of returning users during the National Day holiday. Meanwhile, we continue to evolve Aggie Party's AI powered agency to make the map design faster, easier and more enjoyable.

We believe that together these innovations are keeping Aggie Party fresh and this community inspired. Thanks to this ongoing effort, we saw Aggie Party's performance recover to historical peak level in both daily active user and average play time, which we expect will pave the way for smooth development in the coming years. Another example of our player first philosophy and commitment to innovative, high quality content is Onmyoji, one of China's earliest and most iconic anime style games.

On September 10th, we launched its nice anniversary celebration featuring rich new content and gameplay updates shaped by player feedback. The highlight was a new character, Yuki Ghoshen, whose beautifully crafted CG trailer gained widespread attention on social media from both long time fans and broader anime community. It was broadly heritage for its innovative use of stereoscopic screen and 2D animation tags to create a naked eye 3D visual effect.

With strong community support, Omniaoji quickly entered China's top 10 hours grossing chart, demonstrating the vitality of this endurance IP and the strength of our long term operations. Our commitment to engaging players and continuous innovation is also evident in the Archa Playpoint. In the third quarter, we rolled out the new heroes and exciting collaborations such as Armor Hero in September and the time limited return of Media in October.

The Archa Playpoint esports present is also growing. The 2025 Naraka 3 Point Pro League NBPL autumn Season marked its first professional league since being selected for the 2026 Ayichinigoya Asian Games, culminating its rolling finals in October. Now it's its fourth year, NBPL has become the cornerstone of Naraka's E sports ecosystem and China's top professional league for the title, driving increasing social media engagement across major platforms.

We continue to expand our domestic portfolio with new light hearted experiences that appeal to a wider range of audience. Our MMO, featuring magical, heartwarming creatures inspired by Chinese fairy tales has built a dedicated fan base since its launch in August. Designed with a portrait interface for easy one handed play, the game combines the joy of capturing and nurturing creatures with strategic turn based comeback and building a homeland for them to thrive in.

Backed by our players and supported by world class partners and global teams, we're building enduring collaborations that keep expanding what's possible in gaming. Blizzard titles continue to elevate the gaming experience for Chinese players. World of Warcraft rolled out updates across both Classic and Modern servers during the third quarter, sustaining strong engagement among longtime fans and newcomers alike.

To further enhance localized experience, the game just launched a highly anticipated. China exclusive Python recorder server this week. Blending the nostalgia of classic expansions with modern gameplay elements, the new server fulfills players long-awaited expectations. And as we guided excitement of the World Warcraft community, Overwatch 2 has also recently introduced a new Chinese hero, Wu Yang, further deepen the game's diverse rooster of characters.

Meanwhile, Hearthstone celebrated its 11th anniversary, amassing over 100 million registered players in China. A series of special anniversary events drove enthusiastic participations from both loyal fans and newcomers to the game. The Diablo franchise also continued to capture attention. Diablo 2 Resurrected, the legendary remaster of the installment that helped define the franchise return to China on August 27th.

Newest season, released in October, pushed the game's daily active player base to record high. In parallel, Diablo 4, the latest blockbuster bringing the series signature dark ascetic to the new high, were launched in China on December 12th. Furthermore, the genre defining real time strategy game StarCraft 2 also returned on October 28th, triggering excitement among fans.

Minecraft China Edition, the localized version of the globally popular sandbox game which are 1.5 million concurrent players, on August 17th, an impressive milestone in its eighth year of operation. Committed to nurturing its EGC ecosystem, the game continues to enhance creation tools and expand exposure for community creators. Now supporting over 300,000 creators by delivering enriched, locally tailored experiences, Minecraft China Edition has fostered a highly engaged and loyal player community.

Beyond above titles, other globally renowned franchises in our portfolio also continue to thrive in China, engaging vast creative, creative community and expanding local ecosystems. Along with our expanding global presence and evolving development capabilities, our domestic community continues to thrive regardless of geographies or genre. We'll continue to put Player 1st and work closely with our partners to deliver memorable, high quality experiences across our beloved franchises and existing new titles.

Still, year to call turning to Youdao Youdao continue to Execute its AI native strategy in the third quarter with healthy development of both its education and advertising businesses. For learning services, you without ensure grew gross billing by over 40% year over year in the third quarter. Notably, it partner with the Yao Mathematical Science Center of the Tsinghua University, providing Technical Support to a platform which is designed to identify and support mathematically gifted students.

The platform is currently being piloted in top tier schools with the National Royal Plan falling for the refinement without online marketing services achieved robust growth in third quarter. As we advance the use of AI across multiple advertising processes, we further enhance our expertise in programmatic advertising and influence marketing campaigns, elevating the efficiency and effectiveness of advertising for smart devices.

We continue to enrich our offerings with technology upgrades. In the third quarter, we launched a new tutoring path, U dot SpaceX, which features a series of intelligent capabilities such as precise scanning for long form and multi graphic problems to help students learn more effectively. Turning to Yanxuan, the business continued to perform well across major e-commerce platforms, led by steady developments in its core categories such as pet food, HomeSense and HomeGoods.

Propelling technology driven innovations, Yanxian's product launches have consistently stood out in the market. It's new pet food products use a refined production process, making it smoother and easier for pets to digest, earning it widespread praise for addressing common digestive issues across the Nettie family of businesses. We continue to build on a foundation of creativity, quality and disciplined execution.

Looking ahead, we are focused on advancing our development capabilities and global reach, scaling our original IP into lasting franchises and elevating every experience we deliver. Guided by innovation and the trust of our communities, we're shaping a future defined by meaningful growth and enduring impact. That concludes William's comments.

I will now provide a brief review of our 2025 third quarter financial result. Given the limited time of today's call, I'll be presenting abbreviated financial highlights. We encourage you to read through our press release issued earlier today for further details. As a reminder, all lines are as otherwise stated. Total net revenue for the third quarter were RMB 28.4 billion or 4 billion, four billion U.S. dollars, representing a 8% increase year over year.

Total net revenue from. And related, VS will RMB 23.3 billion, up 12% year over. Specifically, net revenues from online games will be 22.8 billion of 3% quarter over quarter and 13% year over year. The quarter over quarter increase in online games net revenue was due to higher net revenues from self development games such as Finance, Westward Online and Sort of Justice as well as certain license game.

The year over year increase was attributable to higher net revenue from self developed games such as Fantasy, Westward Journey Online, Aggie Party and newly launched Whirlwind Meet and Marvel Rivals as well as certain licensed games. The adult net revenue reached only 1.6 billion, representing a 15% increase quarter over quarter, driven by growth in smart devices and online marketing services.

Year over year revenue rose by 4%, attributed to a higher contribution from online marketing services. Net is called music's net revenue RMB 2 billion, stable quarter over quarter, but down 2% year over year. Notably, revenue from membership subscriptions continue to show healthy growth both sequentially and year over year. Revenues from social entertainment services and others, though still lower compared with the same period last year, stabilized quarter quarter.

Net revenues for innovative business and others for RMB 1.4 billion, down 15% quarter over quarter and 19% year over year. The sequential decline was mainly driven by Yanxuan due to its high base during the 618 e-commerce festival. The year over year decrease reflected an increase in certain intersegment transaction elimination and to lesser extent decreased net revenue from Yanxuan and certain other businesses.

Gross profit for third quarter of 2025 was RMB of 18.2 billion, up 10% year over year, primarily driven by increased net revenue from online games. This quarter, our total gross profit margin was 64.1%. Looking at our third quarter margin in more detail, gross profit margin was 69.3% from related BS compared with 68.8% in the same period of last year.

The improvement was mainly driven by higher mix of PC games in China which typically have higher margins. Our gross profit margin for Youdao was 42.2% compared with 50.2% in the same period last year. The decrease was mainly due to the decline gross profit margin of online marketing services. Gross profit margin for Nati's Com Music was 35.4% in the third quarter versus 32.8% in the same. A year ago.

The margin improvement was primarily driven by steady growth in our core online music business with lower contributions from social entertainment and other lower margin services for innovative business and others. Gross profit margin was 43.0% compared with 37.8% in the third quarter of 2024. Despite the impact of intersegment elimination mentioned earlier, the improvement was mainly driven by better margins at Yan Shuan and higher revenue contribution from certain innovative business with relatively stronger margins.

The total operating expenses for the third quarter was RMB 10 billion was 36% of our net revenues. Taking a closer look at our cost composition, our sales and marketing, our selling and marketing expenses as a percentage of total net revenue or 15.7% compared with 14.5% for the same period last year, primarily due to increased marketing expenditure related to online games.

Our R&D expenses maintained stable as 16% of total net revenues in the third quarter compared with 16.9% for the same period last year, reflecting our consistent investment in content creation and product development. The effective tax rate was 13% for the third quarter. As a reminder, the effective tax rate is presented on accrual basis in accordance with operable policies and our operations.

Our non GAAP net income attributable to shareholders for the third quarter totaled RMB 9.5 billion or 1.3 billion U.S. dollars of 27% year over year. Non GAAP basic earning per ADS for the quarter was $2.09 U.S. dollars or $0.42 U.S. dollars per share. Additionally, our cash position remains robust with net cash of approximately RMB of 153.2 billion as of September 30th, 2025, compared with RMB of 142.1 billion at the end of last quarter in accordance with our dividend policy.

We are pleased to report that our Board of Directors has approved a dividend of 11.4 cents U.S. dollars per share or $0.57 U.S. dollars per ADS. The company announced today that its previously approved share repurchase program of up to 5 billion U.S. dollars for the company's ADS and other shares in open market or other transactions will be extended for an additional 36 months, 36 months until January 9th, 2029, that's of September 30th, 2025.

Approximately 22.1 million ADS has been repurchased under this program for total cost of approximately 2 billion U.S. dollars. Thank you for your attention. We would now like to open the call to your questions. Operator, please.

Operator

Thank you. If you wish to ask a question, please press *1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press *2. If you're on a speakerphone, please pick up the handset to ask your question. For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English.

Please limit your questions to one at a time. If you wish to have follow up questions, please rejoin the queue. Your first question comes from Sue King Zhang with CICC.

Sue King Zhang

感谢管理层接受我的提问那恭喜这季度稳健的业绩表现那我的问题是关于梦幻西游的啊梦幻西游PC 版今年暑期至今是持续创下了同时在线人数的新高那想请公司分享一下对这款长青游戏的一个运营思路那也有几个小问题啊首先的话，畅玩服的一个核心驱动因素是什么然后它的用户画像是怎么样的回流的玩家和新玩家的比力如何那最后也想了解一下这种模式是否可以复制到其他旗舰产品上面啊谢谢

Thanks management for taking my question And congratulations on the solid quarter. My question about your fantastic westward journey, given that as WJPC has consistently set new record for online player count since this summer, we would appreciate that the company sharing its operational structure for this Evergreen title and we have several follow up questions on it. Firstly, what's the Co driving factors behind the unlimited player server? And secondly, what's the user profile? What's the ratio of returning players to new players? And lastly, is this model replicable across other flagship titles? Thank you.

Management

啊，梦幻西游具有极其稳定的经济系统，呃独特且非常丰富的游戏体验，这是其他很多游戏所不能提供的而且我们的团队一直坚持为提用户提供游戏的乐趣和稳定的游戏生态以及创新的游戏内容目前这些坚持也得到了用户的认可畅玩服务，我们去掉了时间收费，简化了系统和玩法在保留了时间服务多年积累下来的优化设计的同时也提进一步提供了减负的玩法设计相对于时间服务器所提供的完善且全面的游戏内容体验畅玩服给用户提供的乐趣来的更加简单直接畅玩服拥有更低的学习门槛，吸引了大量长期流失的用户以及全新的玩家这是畅玩服的主要构成同时，因为畅玩服优质的体验，也给我们这个收费服带来了额外的兴奋和回流梦幻西游端游作为一个运营了22年的经典游戏我们始终坚持创新和多样化的趣味体验，持续满足玩家和社区的需求，未来也力也会力求持续发展为广大游戏提供一个多样化的选择，谢谢

I'll do the translation. The longevity of Fantasy Sports Journey Online PC is based on its highly stable economy system and unique enriched gaming experiences, which are very rare in most other games. Our team has been dedicated to providing sustainable fun experience, stable ecosystem and innovative content. This commitment has been recognized and issued by the our players as well as you can see from the from the market.

In the Unlimited server, we have removed the upfront time based payment, streamlined the gameplay and systems offer a lighter gameplay format while preserving the core designs that have involved, you know, plastic server over time. Compared with the comprehensive and diverse in game experience on the content, Unlimited Server offers enjoyable experiences in the simple more simple manner with with a smooth learning curve.

Unlimited Server has attractive both many former players back to the game as well as new players this user. Demographic of unlimited server actually also benefit the classic server. By introducing additional new and returning players, Final Sports Journey Online as a legacy game has been operated for 22 years. You know, we remain committed to the innovation and diversified experience to meet continuously meet the demands from our community. Looking ahead, we'll continue to focus on long term development, providing our broad player community with various choices in one game. Thank you.

Operator

Your next question comes from Thomas Chong with Jefferies.

Thomas Chong

晚上好，谢谢管理层介绍我的提问，管理层可以对啊，中国以及海外游戏市场啊，未来的趋势的一个看法可以分享一下吗啊，另外的话管理层可以分享一下，我们在海外就係由施地個call Down 你嘅戰略hi good evening Thanks management for taking my question. Can management comment about the demon trend in China as well as overseas? On the other hand, can management also talk about the overseas expansion strategy? Thank you.

Management

呃，我们在海外游戏这个经营过程中啊，有非常丰富的啊成功的经验，而且这些成功的经验都是来自于公司内部强大的这个开发力量在日本我们有荒野行动和第五人格，那在去年十二月的时候我们在海外上线了漫威争锋啊，刚刚在这个月的15号，我们上线了燕云16生我这些产品在海外都取得了非常强烈的和成功的反响啊啊我，我们已经看到在海外的市场中，网易作为一个世界上最重要的游戏开发公司，我们所具备的能力啊我们是国内唯一一个把中国的题材带到海外取得成功的大型游戏公司我指的是夜夜云16生啊，这是一个完完全全的中国的啊武侠题材那在未来的路上啊，我相信我们在海外取得的成功会越来越多我们也会坚持不懈的用我们的力量去为全世界的游戏爱好者提供优质的内容的和优质的服务谢谢

I will do the translation. During our operation business operations process of doing business in oversea market, we have accumulated successful experiences which is powered by the strong development capability we have in house here. For example, in Japan, we have, you know, next out and identify been you know, very popular national network games. And last December we we released more rivals globally super successful. And just November 15th this month we released where wings meet in global market And all this product achieved a very good level of success oversea and we hear a lot of positive feedback from the committee as well in the what we see is that in the oversea market, Nettie is as one of the most prominent, you know, game developing powerhouses in. Our industry and we're we're the only company. That bring the purely truly Chinese authentic online games to global market for example, where we it's a it's a very Chinese, you know that and we're the only big successful companies that bring this level of authentic experience to the online gamers globally and receive very positive feedback. Looking ahead, we believe we have the capability to bring more and more success cases to Allsea market and provide gamers from the globe, you know, with more and more high quality content and services. We have confidence in that. Thank you, operator.

补充一下，我再补充一下，对我再补充一下我们在这个月也上线了逆水寒的手游，在海外市场啊目前的反响也是很好啊在三年前我们还上线了永劫无间的PC 端在海外啊，也是取得了很大的成功目前整个市场对我们明年即将上线的无限大阿纳塔也有巨大的期望我们这一次在9月25号的东京游戏展上无限大取得了最成功，呃，最期待的呃，玩家的一个作品啊这个大赏啊，呃，所以我们在网易在在立足中国的市场的同时也积极的在开拓啊，海外啊，这个用户的这个市场

From William. One is that actually still also in this month we also rolled out our sort of justice into global market and of course three years ago we rolled out now have breakpoint PC on global market and as you heard the. We showed our games to public for both Atlanta and CF. The market has very big expectations. We showed an anti total game show this year and it's it's been named one of the most, you know, promising upcoming games by the Japan Games World 2025 future division net is we both based in China and we are also, you know, carving our territory in the global market. That is what we have been doing. We have some successes and it's we're going to keep doing. Thank you, operator.

Operator

Next question comes from Richie San with HSBC.

Richie San

管理层，谢谢你们接受我的提问呢啊，想先问一下呃第五人格，呃，在近几个月在收入和dau 方面的波动比较大啊请问管理层能否说明一下背后的原因，还有后续的一些改善的策略那另外呢，就是啊，魔兽世界还有炉石的，其实回归中国市场已经把一年了啊即将面临呃，比较高的同比的基数啊，管理层能否分享一下他们当前的表现的指标和一年前相比有什么变化未来如何持续实现增长另外呢，呃，暗黑四呢，即将回归，在当前arpg 市场竞争比较激烈的背景下管理层如何看待，呃，这个作

Thank you, management, for taking my questions. Regarding Identity 5, we have seen the volatility in grossing and DAU in recent months. Can management discuss the reasons behind it and the strategy to improve the performance? Secondly, World Warcraft and Hearthstone have returned to China for one year already and about to face tough comps. Can management discuss the performance metrics now versus one year ago and plans to drive sustainable growth in the future and the Diablo 4 is also coming back soon, Can management discuss the monetization potential considering the more intense competition in the ARPG genre? Thank you.

Management

呃第五人格在暑期受到一些竞品的影响，尤其是在一些下层市场是有影响的但开学后这个影响已经开始回退了啊实际数据是我们开学后就九月份后第五人格的数据比历年的同期创了新高另外第四季度向来不是第五人格数据的高点，无论是内容还是宣发都在为我们的未来的春节做一个准备啊在未来我们会看到喜欢第五人格美术风格的玩家会对玩玩法层面有更多的需求我们的产品会逐步考虑满足这些用户需求的玩法谢谢

I will translate this, this part first. It's indeed it's, it's true that there there has been some influence from completing products during the summer holidays, particularly among general users in lower tier cities. However, we also have noticed that the impact has eased, has eased since the start of back to school time. And in fact, talking about September, you know, Identify metric has reached historical high starting from the new semester compared to the same. In previous years.

While Q4 historically has never been the peak season for Identify, the team is focusing on preparing new content and marketing campaigns for the Chinese New Year cycle. During this. We observed there are demands, other diversified demands on diversified game plays from community. So we have been preparing more comprehensive and large scale side game modes. Well, on the other hand with yeah, we, we, we, we're also working on the next efforts of the game. Yeah.

呃，我要回答一下关于，呃，就是暴雪游戏的问题嗯，那这个暴雪游戏回复了一年多，魔兽世界目前呢处于南美末期那么相比开服如果下降是比较合理的，传说依然以来呢一直保持一个正常的资料片上线的节奏，但由于运营方式不一样魔兽世界和炉之传说表现依然是远高于官服前的数据，那未来会会通过更加深入的能够开发保持两款产品在中国市场独一无二的竞争呃，我想前两天刚刚开服的泰坦时光服，这是一个非常好的例证这是一个由东方团队和远方团队共同设定计划目标一同研发的一个新的版本产品出去非常的效果嗯暗黑破坏神四是具有独树一帜的品质我们有崭新的商业计划，我们相信呢，在开服之后这个产品获得AP arpg 市场应有的份额和商业表现另外，星际争霸二上线之后也创造了历史最高的一个活跃度激活了RPS

Thank you. Yeah, as we approach the end of current expansion World of Warcraft, it is indeed expected to see decline in performance compared to this launch launch period. Meanwhile, Hearthstone has a steady maintenance cadence of expansion updates over the past years with different operation strategy from the past. The performance of both games actually maintained higher than status than one was when the operation closed previously.

Moving forward, we'll continue to deepen our collaboration to sustain our unique competitive offerings in the China market. And one specific example we want to give here is the Titan Reforge server of World Cup that indeed was initiated by together by our Chinese team and the US team. Together we set the target and design together and and develop specific for this demands and the result is is very good. So that is one example to see by working closer. By working closer together, we can achieve better result compared to the past.

Talking about Diablo, Diablo 4 has its own unique quality and we have brand new business plans in place for it. We believe it it it will secure its deserved market share and commercial performance in the ARPG segments after launch. In addition, StarCraft 2 has achieved record high user engagement since its launch if using you know vitality into the RTS genre. Thank you. Operator, next question please.

Operator

Your next question comes from Alicia Yap with Citigroup.

Alicia Yap

嗨，嗯，谢谢接受我的提问管理层晚上好啊，我想跟进一下这个啊，我们刚刚说到的这个无限大啊最近在这个东京电玩啊电玩展这边展出啊，就是也刚刚管理层也说到其实整个反馈也很不错，很好，然后想具体啊就呃细说一下啊，用户的一些呃反馈，呃，如果能够再具体说一下然后另外呢就是怎么思考啊这个无限大这款游戏在市场上的定位和差异化然后我们看到游戏内其实也包含了很丰富的内容和创新的玩法啊然后也想管理层说一下有没有一个关于下一次这个测试和二六年正式上线时间的最新的进展可以分享好自己翻译一下so Just wanted to follow up any management earlier mentioned, Anata was recently showcased at the Tokyo Game Show and has a pretty good, you know, feedback. So just wanted to know, you know, more details about the user feedback and then how should we think about the market? And also the differentiation of this game. And then it also seems that. The game included previous and rich content and also the innovative gameplay. So you know any, any comments on that? And then are there any updates regarding the next testing timing and also the official launch timing in 2026 that you can share? Thank you.

Management

好，我要回答这个问题，那么无线大，呃，刚刚也讲了在东京电玩展展上，我们放出了最新的进展和示范内容呃，在全球的社交媒体上，我们都获得了巨大的感想嗯，并且在展会期间是获得了日本游戏大奖的未来期待奖那么我们期望用主机级的内容质量创新的商业和长期运营模式的组合能够创造一种全新的产品生态位呃，产品近期会进一步提升研发的进度，目前呃，我们的进度是符合预期的，呃，后续的测试和上线都会都是在进一步计划以内逐一进行啊适当时候我们会放出消息

We showcase the latest update and play testing of another at the Talker Game show which attracted significant attention on social media across the world, winning one of the most promising upcoming titles by the Japan Game Award 20.5 Future division. We believe with a blend of console quality content, innovative monetization strategy as well as our focus on long term operations, we we anticipate the the the game will secure a new position within the industry ecosystem. We're currently you know planning to further enhance our development process. The development process is on track now and we'll proceed with testing and launches as scheduled. And when time comes we have for the update to share. Yeah. Thank you. Operator, next question, please.

Operator

Your next question comes from Jia Longshi with Nomura.

Jia Longshi

呃，晚上好，谢谢接受我的提问，嗯，我从我们从一些媒体渠道观察到就是咱们公司每年啊发行的这个新的游戏啊对比前些年似乎是少了许多啊我不确定我们这样的观察是不是正确，如果是正确的话就是想请教一下网易现在新的游戏呃，核心布局的思路是怎么样的呃展望未来几年，网易在推动游戏业务增长的这个总体策略是什么我自己翻译一下，嗯 We noticed from media, it seems to us the number of new games in your pipeline every year is smaller than in the past few years. If our observation is correct, just wonder what is your current strategy towards launching new games into the market and if that is does not launch as many new games each year, what will be the growth driver for your online gaming business? Thank you.

Management

呃，我我回答你这个问题第一个就是整个公司会非常专注在已经有的那些成功产品中啊在这些成功的产品里面，我们要精益求精，要更加专注啊呃，不要这个分散精力去搞一些呃这个把握不大的新项目第二个呢对于新项目我们会非常的谨慎和重视，我们一定要做出自己产品新游戏啊有竞争力的内容到到市场上去啊，呃，所以这两个是不矛盾的呃，我觉得专注是一家公司应有的核心的优势谢谢

I will do the translation. You know the whole company will be very focused on our success products and among the already success products, you know we'll keep refining and keep keep focusing. We don't want to distract too much, you know, focus on on to to charter many, many new product which we don't have super confidence for new project. We'll look at product more prudently and more more focus making sure that whatever new product we're building, it has its confidence power in the constant market. We actually don't see this to contradict each other. We believe being focused is, is one of the core confidence a company need to have. That's our view. Thank you.

Operator

Your next question please comes from Felix Liu with UBS.

Felix Liu

我的提问啊，我的问题是关于最近公司的一些人员变动呃，我们注意到近期游戏业务有部分高管离职呃，想请问啊，此类变动是否会影响相关游戏的短期运营啊另外在目前的这个游戏战略背景下，公司会如何看待现有的组织架构啊以及未来是否会有更多的 Thank you management for taking my question. My question is on the recent news of the organizational change in your game department. Will these changes impact the near term operations of the related games and how does management think about the current organizational structure in in the in under the context of your game strategy and should we expect more changes to come? Thank you.

Management

啊啊，我想这些人员的流动是比较正常的啊是在不影响我们日常游戏运营的前提下进行的目的是让我们整个组织呢变得更加专注高效能够集中力量打造网易游戏的长青和精品啊对于我们目前的长青项目，我们要求团队啊，不断精进优化，对于具备长青品质的新项目我们会向重大的力量加大投入，不停的这个优化产品啊对于没有跟上市场节奏用户需求的团队，我们要果断的修剪确保主干的茁壮成长网易成立28年，打造精品的原则始终没有变我们会把更多的资源倾倾泻给长青项目也会给有创新肯创新的团队更多的机会

I'll do the translation. Regarding the recent adjustment and changes, It's it's part of the company's normal personnel turnover process and this has been carried out without impacting the operations of our game. That's just rest assured. The adjustment is aiming to make the operation more focused and efficient, allowing us to concentrate keep concentrating on creating enduring high quality product.

For example, the for existing Evergreen titles. We ask our team to stay focused, continuously refining and optimizing the games for new titles that show Evergreen potentials will allocate sufficient resources to develop them into Evergreen long lasting successful games. However, for teams that are not keeping pace with the market trends or user demands, we also must trim decisively to make sure helps development our core initiatives.

Net ease has been, you know especially for 28 years and our commitment to creating high quality products has remained unchanged. We'll allocate more resources to Evergreen titles and provide more opportunities to teams who are creative and willing to innovate. Thank you, operator. Next question please.

Operator

Your next question comes from Lincoln Kong with Goldman Sachs.

Lincoln Kong

谢谢管理层接受我的提问啊那我第一个问题是想问这个AI 和游戏啊呃，其实我们也看到就是蛋仔派对啊，逆水寒其实里面已经有不少的这种AI 相关的一些常识了呃，从后续公司对于这个AI 在我们这些已有的这些游戏组合和可能的这些新游戏上的这个啊赋能的一些机会啊，不知道现在有没有一些新的一些啊想法和思考嗯，然后第二我还想再简单的问一下咱们这个未来的一些这个游戏的一些啊重点开发的一些方向，因为刚才也说到，就是我们现在已经要采取更精品化的这些啊开发的策略嘛那未来对于可能的一些啊，创新的方向，我们是会去更多的关注呢啊我会有哪些品类呢啊，那么相关的其实这个设计的品类就是全球啊包括我们的这个军队，其实他们都做的很强啊，我不知道我对这种品类我们网易这边的话后续的这些布局和差异化会有怎样的一些思路

Thank you management for taking my question. So my first question is about AI. So we have actually seen some of the games like Aggie Party or Justice Mobile has already integrated with AI applications. So going forward for our existing portfolio and the new games, how should we think about AI can bring additional opportunities to our gamers? And the second question is in terms of the future new games, given that company now focus more on quality of those new games. So how should we think about the potential important game genre going forward specifically like for the shooting game genre globally, I think we have seen a rapid growth. So how would an ease to server differentiate ourselves in this shooting genre? Thank you.

Management

呃，对，就是关于呃，AI 应用我们的一些一些观点包括对现有的游戏和未来游戏上怎么应用，以及刚才问了一下这个未来内容的方向包括对设计品类的布局的想法吧，对那个AI 对我们游戏的开发和运营是非常重要我们比海外的团队，国外的团队有更多AI 开发层面和运营层面的积累我们部署了大量的资源在研究AI 如何应用在游戏开发创新和运营层面啊我觉得用户的体验是对我们这个方向最好的回答啊具体怎么用啊我，我就在这里不做这个不做回答了第二个就是说在未来的游戏开发方面，公司会采取精品化和有把握的方向啊我们不会盲目的去啊开发一些产品一定是有的放矢啊重点投入啊，在未来几年的游戏方向上，我相信网易比世界上绝大多数游戏公司都有更加清晰的把握我们也会在这个方面取得重大的突破，谢谢

I'll do translation. First of all, regarding the question on AI, we have been using AI in development and yeah, it's very important in game development and and operation and we have accumulated tons of hands on in this area and compared especially compared to you know many of our peer companies from from overseas, we have more hands on experience in this area. We, we have deployed massive resources in the research of AI and how to use AI in the process of game development, innovation and operation.

Actually, the user experience is the best answer to to, to to guide us on how we should deploy technologies. But we, we don't think we have time here today for the detailed specific user experience explanations. Regarding your next question on the future direction of of product, as we explained, we'll focus on the concentrating resources on building really high quality flagship products. The product that we have conviction on the on the success.

We won't do you know aggressively blindly open many project that's that's not our direction will be focused on will do focused targeted approach to do new project and in the future coming years. We believe Nettie's compared to most many other companies in our industry globally. We're one of the companies that has clear vision on the future innovations, future products and we will make grand breakthroughs. Thank you. Operator, next question, please.

Operator

Your next question comes from Yang Liu with Morgan Stanley.

Yang Liu

呃，晚上好管理层，呃，感谢提问的机会，呃我的问题是关于，呃，遗忘之海这款游戏的呃，能不能请管理层分享一下这款新游戏的研发进度和预预计的上线时间然后这款游戏在商业化上会采取什么样的策略然后目前有没有比较直接的竞品，然后会如何和竞品做差异化呃，let me translate my My question, my question is about the Sea of Remnant this new game. Could management share about the R&D development and expected launch timing and what will be the commercial strategy for this title? And is there any direct peers or competitor for this game and what net ease can do to differentiate? Thank you.

Management

啊，我们对遗忘之海这个游戏非常重视啊做遗忘之海的团队在公司里面也有非常丰富的开发经验和运营经验呃，这个游戏采用网易自研的引擎开发，我们同时会上PC 端手机端和这个主机端啊呃至于说这个游戏的具体的玩法和内容啊，我相信我们有非常清晰的这个决策啊呃，我相信这是一款令人耳目一新的啊开放世界的啊，多角色养成类的游戏啊，而而不是传统的222次元风格好吧啊，而且海上的航行体验和通过非常丰富的角色和职业的组合，构成更加多样的战斗流派带来不一样的海上世界的体验谢谢

I will do the translation. First of all, the steel brandament is a very important product to us. We focus on that very much. The team has very rich development and operation experience in the company. And the game is built on our self developed game engine will support both PC, mobile and console as well on the detailed gameplay and content. We believe we have clear decisions on how to do that.

We believe it's going to be a fresh experience in the market. It's going to be a multi character cultivation kind of type, but not the traditional way. The the sailing experience on the ocean as well as the rich combination between characters and classes we believe will bring a fresh, unexperienced ocean experience to the gamers. Thank you.

Operator

And that concludes the question and answer session. I would like to turn the conference back over to Brandy Piacenti for any additional or closing remarks.

Brandy Piacenti

Thank you once again for joining us today. If you have any further questions, please feel free to contact us directly. Have a great day. Thank you.

Details at NetEase IR

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