Select Language:
Shares of NetEase declined despite reporting a 32% increase in net profit for the third quarter, driven partly by higher investment income and reduced foreign exchange losses. The company’s stock in Hong Kong dropped 2.7%, trading at HKD 206.80 (approximately USD 26.57) during midday, while the U.S. listed shares on NASDAQ closed slightly higher at USD 133.95 yesterday.
For the three months ending September 30, NetEase posted a net profit of 8.6 billion yuan (around USD 1.2 billion). Investment income saw a significant jump of 138% to 1.4 billion yuan, and foreign exchange losses decreased by 65% to 370 million yuan (about USD 52.1 million). Operating revenue rose by 8.2%, reaching 28.4 billion yuan (roughly USD 4 billion), with gaming and related services contributing 12% more, totaling 23.3 billion yuan. Online games made up 98% of this revenue.
Leadership indicated that the company intends to focus on enhancing its existing popular titles rather than pursuing new projects with uncertain outcomes. Management emphasized cautiousness regarding new ventures and a commitment to developing competitive content. Revenue growth from online games mainly stemmed from popular titles like Fantasy Westward Journey and Egg Party, along with newer releases such as Where Winds Meet and Marvel Rivals, as well as several proxy games launched last quarter.
The company remains dedicated to producing high-quality products, allocating additional resources to long-standing projects while also fostering innovation through support for creative teams. Regarding recent departures of senior staff, management stated that employee turnover is typical and does not disrupt daily operations. They explained that trimming teams that lag behind market trends and evolving user preferences is necessary for sustaining robust growth in core business segments.
Over the past two years, many mid-level executives have left, including Li Kaiming, head of the 10th division in NetEase Interactive Entertainment, who exited late last month to start his own business. Li and his team developed notable titles such as Infinite Borders.
As of September 30, the company’s cash and equivalents, including short-term and long-term deposits and balances, totaled 153.2 billion yuan (approximately USD 21.6 billion), up from 131.5 billion yuan at year’s end.
ChatGPT
Perplexity
Gemini AI
Grok AI
