Q3 2025 NetEase Inc Earnings Call

November 20, 2025

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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 U S. Private Securities Litigation Reform Act such statements are not guarantees of future performance and are subject to certain risks and uncertainties.

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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.

Brandi Piacente: 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 NetEase'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 Exchange's website.

A general discussion of the risk factors that could affect <unk> business and financial results is included in certain filings of the company with the Securities and Exchange Commission, including its annual report on form 20-F, 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.

A general discussion of the risk factors that could affect NetEase'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 Exchange's 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.

Quarter 2025 earnings release issued earlier today.

Brandi Piacente: 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 Q3 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 NetEase corporate website at irr.netease.com. Joining us today on the call from NetEase's senior management are Mr. William Ding, Chief Executive Officer, Mr. Jue Wang, Executive Vice President, and Mr. Bill Pang, Vice President of Corporate Development. I will now turn the call over to Bill, who will read the prepared remarks on William's behalf.

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 <unk> corporate website at IR Dot <unk> Dot com.

For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the Q3 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 NetEase corporate website at irr.netease.com. Joining us today on the call from NetEase's senior management are Mr. William Ding, Chief Executive Officer, Mr. Jue Wang, Executive Vice President, and Mr. Bill Pang, Vice President of Corporate Development. I will now turn the call over to Bill, who will read the prepared remarks on William's behalf.

Joining us today on the call from <unk> Senior management are Mr. William Ding Chief Executive Officer, Mr. Jia Penghu Executive Vice President and Mr. Bill Palm Vice President of corporate development I will now turn the call over to Bill who will read the prepared remarks on William's behalf.

Thank you.

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, Mark continued momentum and strong execution across our Matt his family.

By uniting creativity with exceptional operations, we created more meaningful connections with players.

Bill Pang: Thank you, Brandi, and welcome everyone to today's call. Before we begin, I would like to remind everyone that all percentages are based on R&D. Q3 marked continued momentum and strong execution across our NetEase 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 key franchises, total revenues increased 8% year-over-year, reaching RMB 28.4 billion in Q3, and revenues from our games and related VAS grew 12% in Q3, compared with the same period last year. Innovative creativity and long-term operation remain the defining force behind NetEase'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.

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Four key franchises total revenues increased 8% year over year.

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In the third quarter compared with the same period last year.

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Innovative creativity and long term operation remained with defining force behind that is ongoing player engagement and global expansion.

Whether for new launches.

The titles our teams are dedicated to delivering unexpected gaming experiences.

Responsive life services.

Winning over players worldwide.

Innovative creativity and long-term operation remain the defining force behind NetEase'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.

That's the right thing our new free to play mobile classify LPG shooter quickly top I'll ask follow it's hard even at this stage is that other major western market, Florida. Its global launch on August 28.

Bill Pang: This strategic creative approach continued to gain traction overseas, amplifying the influence and excitement of multiple games in Q3, including our new releases. Destiny Rising, our new free-to-play mobile sci-fi RPG shooter, quickly topped the iOS download chart in the United States and other major Western markets following its global launch on 28 August 2025. The game has received widespread acclaim, securing leading positions on the iOS download chart across nearly 100 markets worldwide. Featuring Destiny's iconic, powerful gunplay across diverse modes set in a new timeline, the game has earned positive feedback from longtime fans while gaining traction within the broader shooter game community. The excitement continued in China, where Destiny Rising debuted on 16 October 2025 and immediately topped the iOS downloading chart, drawing in players nationwide to experience the thrilling shooting action at their fingertips. Marvel Rivals continues to captivate the superhero shooter fanbase around the world.

This strategic creative approach continued to gain traction overseas, amplifying the influence and excitement of multiple games in Q3, including our new releases. Destiny Rising, our new free-to-play mobile sci-fi RPG shooter, quickly topped the iOS download chart in the United States and other major Western markets following its global launch on 28 August 2025. The game has received widespread acclaim, securing leading positions on the iOS download chart across nearly 100 markets worldwide.

Whether for new launches or established titles, our teams are dedicated to delivering unexpected gaming experiences and responsive life services that are winning over players worldwide.

The game has received widespread acclaim.

Secured leading positions on iOS download chart across nearly 100 markets worldwide.

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This strategic creative approach continues to gain traction overseas, unifying the influence and excitement of multiple games. In the third quarter, including our new releases.

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Sci-fi RPG shooter quickly topped the iOS download chart in the United States and other major Western markets following its global launch on August 28th.

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The game has received widespread acclaim.

Immediately topped the iOS downloads chart.

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Featuring Destiny's iconic, powerful gunplay across diverse modes set in a new timeline, the game has earned positive feedback from longtime fans while gaining traction within the broader shooter game community. The excitement continued in China, where Destiny Rising debuted on 16 October 2025 and immediately topped the iOS downloading chart, drawing in players nationwide to experience the thrilling shooting action at their fingertips. Marvel Rivals continues to captivate the superhero shooter fanbase around the world.

Securing leading positions on iOS. Download our app across nearly 100 markets worldwide.

Carlo arrivals continue to captivate Super fuel shooter fan base around the world.

Kicking off its fourth season of September <unk>. The game introduced a wealth of refreshing new content features special events empty miles.

Featuring Destiny's iconic, powerful gameplay across diverse modes, settings, and a new timeline, the game has earned positive feedback from longtime fans while gaining traction within a broader shooter game community.

The excitement continued in China.

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Destiny Rising by Beauty was released on October 16th and immediately topped our living chart.

We reached number three our steams global top seller chart.

The new map equivalent part of hover transports players to Asian East, while the debuted of Angela.

Drawing in players nationwide to experience the streaming shooting action at their fingertips.

Bill Pang: Kicking off its fourth season on 12 September, the game introduced a wealth of refreshing new content, features, special events, and team-ups. Following the update, it reached No. 3 on Steam's global top-seller chart. The new map, Kunlun: Heart of Heaven, transported players to the Asian East, while the debut of Angela, an eagerly anticipated vanguard, spurred excitement across the player community. Additionally, inspired by Marvel Animation's Marvel Zombies, a limited-time PvE zombie mode was released, featuring challenging bosses, Zombie Neymar, and Queen of the Dead, just in time for Halloween. Beyond the game, Marvel Rivals Ignite celebrated its grand finals at DreamHack Atlanta, held in collaboration with ESL FACEIT Group. Elite players from around the world showcased their exceptional skills and strategies, drawing massive engagements both on-site and online, and reflecting Marvel Rivals' growing appeal.

Kicking off its fourth season on 12 September, the game introduced a wealth of refreshing new content, features, special events, and team-ups. Following the update, it reached No. 3 on Steam's global top-seller chart. The new map, Kunlun: Heart of Heaven, transported players to the Asian East, while the debut of Angela, an eagerly anticipated vanguard, spurred excitement across the player community. Additionally, inspired by Marvel Animation's Marvel Zombies, a limited-time PvE zombie mode was released, featuring challenging bosses, Zombie Neymar, and Queen of the Dead, just in time for Halloween.

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Marvel Rivals continues to captivate superhero and shooter fan bases around the world.

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Limited time Pve's Zombie mode was released.

Kicking off is four seasons of September 12th. The game introduced a wealth of refreshing new content features, special events, and team maps.

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It reached number 3 on Steam's global top seller chart.

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The new map of Heaven transports players to the Asian East, while the excitement surrounding Angela's diabetes and eagerly anticipated Vanguard spreads across the player community.

At least players from around the world showcase the exceptional skills and strategies, joining massive engagement and both onsite and online and reflecting lower rivals growing appeal.

Additionally, inspired by Marvel animations, Marvel Zombies—a limited-time PVE zombie mode—was released.

Beyond the game, Marvel Rivals Ignite celebrated its grand finals at DreamHack Atlanta, held in collaboration with ESL FACEIT Group. Elite players from around the world showcased their exceptional skills and strategies, drawing massive engagements both on-site and online, and reflecting Marvel Rivals' growing appeal.

Featuring challenging bosses, Zombie Neymar and Queen of Death, just in time for Halloween.

As we continue to enrich our global portfolio through diverse partnerships are all original titles are also gaining increasing momentum worldwide.

Beyond the game.

Marvel Rivals Ignite celebrated its Grand Finals at DreamHack Atlanta.

Delivering a distinctive survival open world experience to players globally was humor launched engaging our base in the third quarter <unk> its growing global community.

Held in collaboration with EA ESL Facebook.

Elite players from around the world showcase their exceptional skills and strategies.

October searches the game introduced a major new scenario centered on the capture of the customization of deviations alongside a significant refresh of the Pvp experience that provides more intense combat options.

Drawing massive engagements in both on-site and online, and reflecting Rivals' growing appeal.

Bill Pang: 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 Q3, energizing its growing global community. On 30 October 2025, the game introduced a major new scenario centered on the capture and customization of deviations, alongside a significant refresh of the PvP experience that provides more intense combat options. The highly anticipated collaboration event with the global hit game Palworld also went live on the same day, bringing popular Pals to a dedicated in-game island, which further invigorated the player community. We recently shared some of our upcoming international expansion plans at worldwide gaming events like Gamescom and the Tokyo Game Show 2025, generating even more excitement in the community with engaging player interactions.

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 Q3, energizing its growing global community. On 30 October 2025, the game introduced a major new scenario centered on the capture and customization of deviations, alongside a significant refresh of the PvP experience that provides more intense combat options. The highly anticipated collaboration event with the global hit game Palworld also went live on the same day, bringing popular Pals to a dedicated in-game island, which further invigorated the player community. We recently shared some of our upcoming international expansion plans at worldwide gaming events like Gamescom and the Tokyo Game Show 2025, generating even more excitement in the community with engaging player interactions.

As we continue to enrich our global portfolio through diverse partnerships, our original titles are also gaining increasing momentum.

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Popular pulse to a dedicated in game islands.

Delivering a distinctive survival open-world experience to players globally. Once Human launched, engaging updates in the third quarter, organizing and growing the global community.

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We recently shared some of our upcoming international expansion plans worldwide gaming events like games Com and the Taco games till 2025.

On October 30th, the game introduced a major new scenario centered on the capture and customization of deviations, alongside a significant refresh of the PvP experience that provides more intense combat options.

Generating even more excitement in the community with engaging player interactions.

We exited we're winning Smith at Gamescom 2025, showcasing our accretive ambition and cultural storytelling and next generation with our building in.

The highly anticipated collaboration event with a global Heat game went live on the same bed as the Power Wall.

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In China, we are going to me continuing to calculate which offense, which is the narrative for each setting authentic Chinese are Chinese martial arts theaters.

Innovative gameplay that combined single and multifamily.

Bill Pang: We exhibited Whirlwind Smith at Gamescom 2025, showcasing our creative ambition in cultural storytelling and next-generation wuxia worldbuilding. In China, Whirlwind Smith continued to captivate wuxia fans with its narrative-rich setting, authentic Chinese martial arts themes, and innovative gameplay that combines single and multiplayer. Each newly unveiled district not only engages our existing fans, but also attracts new players, driving continued growth in both revenue and monthly active users to new highs in Q3. On 14 November 2025, we brought Whirlwind Smith's Eastern-themed open world featuring dynamic combat to the global market on both PC and PlayStation 5. Within just two days, we achieved a peak of 190,000 concurrent players, securing the No. 5 spot among the most played games, and No. 4 position for top-seller globally on Steam. Additionally, it became one of the top 10 best-sellers across the United States, Germany, France, and several other regions on PlayStation.

We exhibited Whirlwind Smith at Gamescom 2025, showcasing our creative ambition in cultural storytelling and next-generation wuxia worldbuilding. In China, Whirlwind Smith continued to captivate wuxia fans with its narrative-rich setting, authentic Chinese martial arts themes, and innovative gameplay that combines single and multiplayer. Each newly unveiled district not only engages our existing fans, but also attracts new players, driving continued growth in both revenue and monthly active users to new highs in Q3. On 14 November 2025, we brought Whirlwind Smith's Eastern-themed open world featuring dynamic combat to the global market on both PC and PlayStation 5. Within just two days, we achieved a peak of 190,000 concurrent players, securing the No. 5 spot among the most played games, and No. 4 position for top-seller globally on Steam. Additionally, it became one of the top 10 best-sellers across the United States, Germany, France, and several other regions on PlayStation.

We recently shared some of our upcoming international extension plans and worldwide gaming events like Gamescom. The topic of the game show, 2025, is generating even more excitement in the community with engaging player interactions.

Each newly unveiled district, not only engages our existing fans, but also attract new players driving continued growth in both revenue and the monthly active user to new highs in the third quarter.

We exhibited. We went to meet and games called 2025.

Showcasing our creative ambition in cultural storytelling and that next generation without world-building.

On November 14th we brought where wings eastern <unk> open while featuring dynamic comeback to the global market on both PC and Playstation five.

In China, we continue to calculate with our fans, which is narrative, which setting authentic Chinese, art Chinese, martial arts teams, and innovative gameplay that combines single and multi-purpose.

Within just two days, we achieved a peak of 190000 concurrent players secure the number five spot among the most played games a number four position for top seller globally Austin.

Its newly unveiled District not only engages our existing fans but also attracts new players, driving continued growth in both revenue and monthly active users to new highs in the third quarter.

Additionally, it 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 calculating we shall universe.

On November 14th, we brought Willing Meets Eastern Sea and Open World, featuring dynamic combat to the global market on both PC and PlayStation 5.

Even broader audience.

To further enhance community engagement. The mobile version has commenced pre registration and is set to launch soon.

Within just 2 days, we achieved a peak of 190,000 concurrent players.

Secure the number 5 spot among the most played games and the number 4 position for top seller globally on Steam.

Our highly anticipated title Atlanta also garner significant attention at the Tokyo game show.

Bill Pang: This underscores the widespread appeal of our captivating wuxia 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, Ananta, also garnered significant attention at the Tokyo Game Show. Players showed enthusiasm for in-depth game trailers and engaging hands-on playtesting. They were drawn in by the game's imaginative action design, high-fidelity visuals, and modern urban storytelling. Set in a dynamic and immersive city environment, Ananta blends high-energy action with open-world freedom, offering players an experience that goes well beyond conventional gameplay. We are pleased to see mounting 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.

This underscores the widespread appeal of our captivating wuxia 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, Ananta, also garnered significant attention at the Tokyo Game Show. Players showed enthusiasm for in-depth game trailers and engaging hands-on playtesting. They were drawn in by the game's imaginative action design, high-fidelity visuals, and modern urban storytelling. Set in a dynamic and immersive city environment, Ananta blends high-energy action with open-world freedom, offering players an experience that goes well beyond conventional gameplay. We are pleased to see mounting 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.

Players so enthusiasm for in depth game trailers and engaging hands on pre testing.

Additionally, it became one of the top 10 bestsellers across the United States, Germany, France, and several other regions on PlayStation.

We are joined by the game's imagine native action design high fatality visuals are more than urban stellar talent.

This underscores the widespread appeal of our captivating Wuhan Universe to add an even broader audience.

Steady a dynamic and immersive city environment Atlanta blends of high energy action was opened more freedom offering players and experience that goes well beyond conventional gameplay.

To further enhance community engagement, the mobile version has command pre-registration and is set to launch soon.

Our highly anticipated title ananta.

Attention at the talker game show.

We are pleased to see multi excitement and anticipation amount this title.

Players showed enthusiasm for in-depth game trailers and engaging hands-on playtesting.

Including recognition from the Japan game of war, 20th quantify future Division.

It was named as one of the most promising upcoming tests.

They will draw in by the game's imaginative action design, high-fidelity visuals, and modern urban storytelling.

Our groundbreaking MMO sort of justice.

When global across mobile and PC platform on November 7th.

Talking to iOS download chart in multiple regions.

That is a dynamic and immersive city environment. Ananta blends high-energy action with an open world, offering players an experience that goes well beyond conventional gameplay.

The international relief, including AI powered Mpc's and an intelligent faced creation system.

We are pleased to see multi-assignments and anticipation among this title.

We have showcased this topic game show in September.

Highlighting how emerging technologies are reshaping gameplay experiences.

Bill Pang: Our groundbreaking MMO, Sword of Justice, went global across mobile and PC platforms on 7 November 2025, topping the iOS download chart in multiple regions. The intentional release included AI-powered NPCs and an intelligent face creation system. We showcased this at the Tokyo Game Show in September, highlighting how emerging technologies are reshaping gameplay experiences. Sword of Justice also continued to engage domestic players in Q3, with its ever-evolving gameplay and rich content. With the global version now live, Sword of Justice is bringing its immersive world and cutting-edge AI enhancements to a broader international audience. On top of the new releases we have brought to the international stage, our established games are also gaining steam in multiple regions worldwide. Our realistic car simulation game, Racing Master, has continued to gain popularity overseas through localized content, making it highly resonate with players in Japan since it launched there last year.

Our groundbreaking MMO, Sword of Justice, went global across mobile and PC platforms on 7 November 2025, topping the iOS download chart in multiple regions. The intentional release included AI-powered NPCs and an intelligent face creation system. We showcased this at the Tokyo Game Show in September, highlighting how emerging technologies are reshaping gameplay experiences. Sword of Justice also continued to engage domestic players in Q3, with its ever-evolving gameplay and rich content. With the global version now live, Sword of Justice is bringing its immersive world and cutting-edge AI enhancements to a broader international audience. On top of the new releases we have brought to the international stage, our established games are also gaining steam in multiple regions worldwide. Our realistic car simulation game, Racing Master, has continued to gain popularity overseas through localized content, making it highly resonate with players in Japan since it launched there last year.

Including recognition from the Japan Game Award 2025 Future Division, where it was named as one of the most promising upcoming games.

Sort of Justice also continued to engage domestic players in the third quarter, which is ever evolving gameplay and rich content.

Our groundbreaking MMO, sort of Justice.

When global across mobile and PC platform on November 7th.

With a global version now live sort of Justice is bringing is immersive world and a cutting edge AI enhancements to broader in casual audience.

Talking about the LS download chart in multiple regions.

The international release included AI-powered MPCs and an intelligent face creation system.

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We showcased this at the Target Game Show in September.

All the new releases, we are brought to the international stage.

Highlighting how emerging technologies are reshaping gameplay experiences.

Established game are also gaining steam in multiple regions worldwide.

Our real estate car stimulation game racing Master is continue to gain popularity overseas through localized content.

That's what I've Justice. Also, continue to engage domestic players in the third quarter, which is ever-evolving gameplay and rich content.

With the global version now live.

A highly resonated with players in Japan since it launched there last year.

Clearly engagements spike in August.

Sort of Justice is bringing its immersive world and cutting-edge AI enhancement to a broader international audience.

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Hosting the games performance in Japan.

The exciting esports events like the racing Master of 2025 Electric Cup finals held in Bangkok in August we brought passionate research and defense from across Asia together.

How about the new releases we are bringing to the international stage? Our established games are also gaining steam in multiple regions worldwide.

Our real estate car simulation game, Racing Master, has continued to gain popularity overseas.

Uniting racing Masters distinctive global community.

Bill Pang: Player engagement spiked in August during its anniversary celebration with carefully designed in-game content, boosting the game's performance in Japan. Exciting esports 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 Master's distinctive global community. As firm believers in live operations, we stay closely attuned to players' evolving expectations across every title, and our domestic games continue to deliver strong performances. Each game update presents 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 have been around for decades. Fantasy Westward Journey Online, one of our longest-running flagship titles at 22 years and counting, amplifies our dedication to sustain high-quality operations.

Player engagement spiked in August during its anniversary celebration with carefully designed in-game content, boosting the game's performance in Japan. Exciting esports 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 Master's distinctive global community. As firm believers in live operations, we stay closely attuned to players' evolving expectations across every title, and our domestic games continue to deliver strong performances. Each game update presents 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 have been around for decades. Fantasy Westward Journey Online, one of our longest-running flagship titles at 22 years and counting, amplifies our dedication to sustain high-quality operations.

Through localized content, we have achieved a highly vaccinated player base in Japan since its launch last year.

As firm believers in life operations.

We stay closely attuned to players evolving expectations across every title and our domestic games continue to deliver strong performances.

There was a clear engagement spike in August during its adversary celebration, with carefully designed in-game content.

Putting the game's performance in Japan.

Each game updates present, new opportunities to entertain and engage and grow our communities.

This approach continues to resonate with players driving steady growth across our domestic portfolio, where both new titles and games that has been around for decades.

Exciting esports 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 and creating a distinctive global community.

Fantasy westward journey online one of our long longest running flagship titles at 23 years and counting.

As firm believers in life operations, we stay closely attuned to players' expectations across every title, and our domestic games continue to deliver strong performances.

Amplifies, our dedication to sustain high quality operations.

Each game update presents new opportunities to entertain, engage, and grow our communities.

<unk> is built around an inclusive ecosystem that allows players of all types to find enjoyment.

We continuously inject fresh vitality through new features and mechanics.

This approach continues to resonate with players, driving steady growth across our domestic portfolio for both new titles and games that have been around for decades.

In July we launched our innovative limited a server, which offers classic gameplay under popular modern model that eliminates the entry barrier upfront time based payments.

Fantasy Westward Journey online.

Bill Pang: 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 a popular modern model that eliminates the entry barrier of upfront time-based payments. This generated substantial enthusiasm from longtime fans and newcomers alike, significantly boosting player engagement. As a result, it has achieved four successive record-breaking concurrent player counts since Q3, reaching a height of 3.58 million in early November. Fantasy Westward Journey Mobile also continues to evolve as we regularly introduce new features that players love. To meet player demands, we launched our new casual server, which is designed for fun and streamlined play. It offers Fantasy Westward Journey Mobile's signature gameplay in a lighter format, featuring simple progression, low thresholds, and intuitive controls.

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 a popular modern model that eliminates the entry barrier of upfront time-based payments. This generated substantial enthusiasm from longtime fans and newcomers alike, significantly boosting player engagement. As a result, it has achieved four successive record-breaking concurrent player counts since Q3, reaching a height of 3.58 million in early November. Fantasy Westward Journey Mobile also continues to evolve as we regularly introduce new features that players love. To meet player demands, we launched our new casual server, which is designed for fun and streamlined play. It offers Fantasy Westward Journey Mobile's signature gameplay in a lighter format, featuring simple progression, low thresholds, and intuitive controls.

This generated a substantial enthusiasm from longtime fans and newcomers alike Cigna.

One of our longest-running flagship titles at 22 years and counting amplifies our dedication to sustaining high-quality operations.

Significantly boosting player engagement.

The game is built around an inclusive ecosystem that allows players of all types to find enjoyment.

As a result, it has achieved four successive record, peaking concurrent player accounts since the third quarter.

We continue to inject fresh vitality through new features and mechanics.

Reaching a height of $358 million.

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Fantasy westward journey mobile also continues to evolve as we regularly introduce new features that players love.

In July, we launched our innovative unlimited server, which offers classic gameplay under a popular modern model that eliminates the entry barrier of upfront, time-based payments.

To meet the players female.

This generated substantial enthusiasm from longtime fans and newcomers alike.

Our new casual server.

Significantly boosting player engagement.

Which is designed for fun and streamlined flight.

It offers finished westward journey mobile signature gameplay.

Format between 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.

As a result, it has achieved four successive record-picking concurrent player counts. Since the third quarter, reaching a height of 3.58 million in early November.

Fantasy Westward Journey Mobile also continues to evolve as we regularly introduce new features that players love.

Another long develop MMO Kinshasa continuously engaged as communities with deeply resonate operators.

To meet players. See, man, we launched our new casual server.

Which is designed for fun and streamlined flight.

October we concluded close beta testing for change outs, where caustic.

This version of recreate the games iconic style at a slower pace gained claim allowing players to experience the extinctive Chinese culturally.

Bill Pang: With the surge of new and returning players, monthly active users reached a two-year high in September. Another long-beloved MMO, Tianxia, continues to engage its community with deeply resonant updates. In October, we concluded closed-beta testing for Tianxia 2 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 Tianxia client will undergo a complete upgrade, with player progression seamlessly shared with Tianxia Wanxiang, the brand-new cross-platform client powered by Messiah, our 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 Tianxia universe everywhere. Identity V's fanbase maintained a high engagement level in Q3, supported by our steady cadence of seasonal updates and partnerships.

With the surge of new and returning players, monthly active users reached a two-year high in September. Another long-beloved MMO, Tianxia, continues to engage its community with deeply resonant updates. In October, we concluded closed-beta testing for Tianxia 2 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 Tianxia client will undergo a complete upgrade, with player progression seamlessly shared with Tianxia Wanxiang, the brand-new cross-platform client powered by Messiah, our 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 Tianxia universe everywhere. Identity V's fanbase maintained a high engagement level in Q3, supported by our steady cadence of seasonal updates and partnerships.

It offers Phenis Westward, Journey mobile signature gameplay in a lighter format, featuring simple progression, low threshold, and intuitive controls.

Meanwhile, the existing changed our clients will undergo a complete upgrade with clear progression seamlessly share was changed out Wednesday.

With the surge of new and returning players, the active users reached a 2-year high in September.

The brand New cross platform client powered by <unk>, our 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 a change to our universe everywhere.

Players to experience distinctive Chinese cultural events.

I don't need to 510 base maintained the high engagement level in the <unk>.

Third quarter supported by our steady cadence of Stifel update and partnerships, new counters released along with each season update including Hunter off curious on the survival of Lumpiness in the third quarter the fuels, a new energy into added 85 distinctive well reinforcing.

Meanwhile, the existing CHA client will undergo a complete upgrade with player progression, seamlessly shared with the brand new cross-platform client powered by Visaya, our flagship in-house engine.

Reinforcing identify as a top destination for AC metric gameplay fast.

The upgrade will both enhance graphic quality and expand access for players across PC and mobile platforms, allowing them to experience the Chia Universe everywhere.

In addition, the games collaboration with the Palace Museum caustic on September 25th added logistic rooftops or the flip at the city to identify manner, adding a new layer of cultural depths.

Identify stand base. Maintain a high engagement level in the third quarter.

Bill Pang: New characters released along with each season update, including Hunter of Cuist and the Survivor of Lunterness in Q3, infused new energy into Identity V's distinctive world, reinforcing Identity V as a top destination for asymmetric gameplay fans. In addition, the game's collaboration with the Palace Museum Classic on 25 September 2025 added majestic rooftops of the Forbidden City to Identity V's banner, adding a new layer of cultural depth. Anki Party also experienced robust growth with its third-anniversary celebration in July, sparking renewed enthusiasm across the player community. Daily active users exceeded 30 million, and average playtime hit a record high, driving historical engagement levels. Two new gameplay modes quickly followed in September: Spooky Treasure Squad presents an intense extraction experience, and Crazy Farm introduces a casual and social farming simulator. Both were highly praised and attracted a wave of returning users during the National Day holiday.

New characters released along with each season update, including Hunter of Cuist and the Survivor of Lunterness in Q3, infused new energy into Identity V's distinctive world, reinforcing Identity V as a top destination for asymmetric gameplay fans. In addition, the game's collaboration with the Palace Museum Classic on 25 September 2025 added majestic rooftops of the Forbidden City to Identity V's banner, adding a new layer of cultural depth. Anki Party also experienced robust growth with its third-anniversary celebration in July, sparking renewed enthusiasm across the player community. Daily active users exceeded 30 million, and average playtime hit a record high, driving historical engagement levels. Two new gameplay modes quickly followed in September: Spooky Treasure Squad presents an intense extraction experience, and Crazy Farm introduces a casual and social farming simulator. Both were highly praised and attracted a wave of returning users during the National Day holiday.

Thank you party also experienced robust growth with a sort of anniversary celebration in July.

Sparking renewed enthusiasm across the player community.

Supported by our steady cadence of seasonal updates and partnerships, new characters have been released. Along with each season update, including Hunter of Curios and the Survival of Lunch, in the third quarter, we feel the new energy in identifying distinctive roles, reinforcing our identity as the top destination for asymmetric gameplay fans.

Daily active users exceeded $13 million.

And average play time hit a record high driving historical engagement level.

Two new game play both quickly followed in September Spooky Treasurer, Scott presents an intense extraction experience and increase the farm introduces a casual and social farming stimulator.

In addition, the games collaboration with the Palace Museum Classic on September 25th added the majestic rooftops of the Forbidden City to identify manner, adding a new layer of cockroaches.

Nike's party also experienced robust growth with a third anniversary celebration in July.

Both were highly space.

Sparking renewed interest in our player community.

We are way up on returning users due to the National day holiday.

Daily active users exceeded 30 million.

Meanwhile, we continue to evolve <unk> parties AI powered at BGC too.

And average playtime, hit record, high driving historical engagement level.

Okay.

Faster easier and more enjoyable.

2 new gameplay votes quickly followed in September.

We believe that together these innovations are keeping IV party fresh and this community inspired.

Thanks to this ongoing effort.

Spooky Treasure Squad presents an intense extraction experience and a crazy farm, introducing a casual and social farming simulator.

AG parties performance recover to historical peak level in both daily active user on average play time, which we expect will pave the way for smooth development in the coming years.

Bill Pang: Meanwhile, we continue to evolve Anki Party's AI-powered UGC to make smart designs faster, easier, and more enjoyable. We believe that, together, these innovations are keeping Anki Party fresh, and its community inspired. Thanks to this ongoing effort, we saw Anki Party's performance recover to historical peak levels in both daily active users and average playtime, 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 Ami?ji, one of China's earliest and most iconic anime-style games. On 10 September 2025, we launched its ninth-anniversary celebration, featuring rich new content and gameplay updates shaped by player feedback. A highlight was the new character, Yuki G?sen, whose beautifully crafted CG trailer gained widespread attention on social media from both longtime fans and a broader anime community.

Meanwhile, we continue to evolve Anki Party's AI-powered UGC to make smart designs faster, easier, and more enjoyable. We believe that, together, these innovations are keeping Anki Party fresh, and its community inspired. Thanks to this ongoing effort, we saw Anki Party's performance recover to historical peak levels in both daily active users and average playtime, 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 Ami?ji, one of China's earliest and most iconic anime-style games. On 10 September 2025, we launched its ninth-anniversary celebration, featuring rich new content and gameplay updates shaped by player feedback. A highlight was the new character, Yuki G?sen, whose beautifully crafted CG trailer gained widespread attention on social media from both longtime fans and a broader anime community.

Both were highly praised attractive ways of retaining users during the National Day Holiday.

Well, we continue to evolve. I partied AI-powered EGC to.

Another example of our player first philosophy and commitment to innovative high quality content is on the Ot one of Chinas earliest and most iconic anime style games.

Design faster, easier, and more enjoyable.

We believe that together, these innovations are keeping the active party fresh and this community inspired.

On September 10th we launched its nice anniversary celebration, featuring reach new content and gameplay updates shaped by player feedback.

The highlight was the new character Yoki Gaza.

Thanks to this ongoing effort, we saw Aggie parties' performance recover to historical peak levels in both daily active users and average playtime, which we expect will pave the way for smooth development in the coming years.

Who is beautifully crafted CG trailer gained widespread attention on social media from both longtime fast and the broader community.

It also broadly highlighted innovative use of sterile scope explained and to the animation tax to create and make us really visual effects.

Another example of our player-first philosophy and commitment to innovative, high-quality content is Ario, one of China's earliest and most iconic anime-style games.

With strong community support.

Quickly enter Chinas top towers crossing chart, demonstrating the vitality of this was due to IP and the strengths of our long term operation.

On September 10th, we launched our nice anniversary celebration featuring new content and gameplay updates shaped by player feedback.

It highlights a new character, Yuki Gohan.

Bill Pang: It was broadly heralded for its innovative use of stereoscopic screen and 2D animation text to create a naked-eye 3D visual effect. With strong community support, Ami?ji quickly entered China's top 10 iOS graphing chart, demonstrating the vitality of this enduring IP, and the strength of our long-term operations. Our commitment to engaging players, and continuous innovation, is also evident in Naraka: Bladepoint. In Q3, we rolled out new heroes and exciting collaborations, such as Armor Hero in September, and a time-limited return of Nier in October. Naraka: Bladepoint esports presents is also growing. The 2025 Naraka: Bladepoint Pro League (NBPL) autumn season marked its first professional league since being selected for the 2026 IHI Nagoya Asian Games, culminating its rolling finals in October.

It was broadly heralded for its innovative use of stereoscopic screen and 2D animation text to create a naked-eye 3D visual effect. With strong community support, Ami?ji quickly entered China's top 10 iOS graphing chart, demonstrating the vitality of this enduring IP, and the strength of our long-term operations. Our commitment to engaging players, and continuous innovation, is also evident in Naraka: Bladepoint. In Q3, we rolled out new heroes and exciting collaborations, such as Armor Hero in September, and a time-limited return of Nier in October. Naraka: Bladepoint esports presents is also growing. The 2025 Naraka: Bladepoint Pro League (NBPL) autumn season marked its first professional league since being selected for the 2026 IHI Nagoya Asian Games, culminating its rolling finals in October.

Our commitment to engaging players and continuous innovation.

Whose beautifully crafted CG trailer gained widespread attention on social media from both longtime fans and a broader anime community.

Evidence.

A couple of points.

In the third quarter, we rolled out a new heroes and exciting collaborations such as armour hero in September and a time limited retail familiar in October.

It was a broadly heritage for its innovative use of stereoscopic spring and text to create a naked-eye 3D visual effect.

non-GAAP eight esports present is also growing with.

The 2025 noncore three point, probably and BPL autumn season markets first professional league seems to be selected for the 2026, <unk> Asian games, culminating a floating finals in October.

With strong community support, our music quickly entered China's top charts, demonstrating the vitality of this enduring IP and the strength of our long-term operation.

Our commitment to engaging players and continuous innovation is also evident in our country Pointe.

Now is this past year <unk> has become the cornerstone of esports.

E sports ecosystem on China's top professionally for the title.

In the third quarter, we rolled out new Heroes and exciting collaborations, such as the Armored Hero in September and the time-limited return of Near in October.

Increasing social media engagements across major plan.

Esports present is also growing.

We continue to expand our domestic portfolio with new lighthearted experiences that appeal to a wider range of audience.

Bill Pang: Now in its fourth year, NBPL has become the cornerstone of Naraka's esports 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 audiences. Shouta Moshien, our MMO featuring magical, heartwarming creatures inspired by Chinese fairy tales, has built a dedicated fanbase 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 combat, and building a homeland for them to thrive in. Backed by our players, and supported by world-class partners and global teams, we are building enduring collaborations that keep expanding what's possible in gaming. Blizzard Titles continues to elevate the gaming experience for Chinese players.

Now in its fourth year, NBPL has become the cornerstone of Naraka's esports 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 audiences. Shouta Moshien, our MMO featuring magical, heartwarming creatures inspired by Chinese fairy tales, has built a dedicated fanbase 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 combat, and building a homeland for them to thrive in. Backed by our players, and supported by world-class partners and global teams, we are building enduring collaborations that keep expanding what's possible in gaming. Blizzard Titles continues to elevate the gaming experience for Chinese players.

So it's our most yes, our MMO featuring magical heartwarming creatures inspired by Chinese fairytales spilt.

The 2025 Narco 3 Point Pro League (NBPL) Autumn season mark is the first professional league. Since being selected for the 2026 Aini Goya Asian Games, culminating in the throwing finals in October.

<unk> built a dedicated fan base since its launch in August.

<unk> was a portrait interface for easy 100 play the game combines the joy of capturing and nurturing creators with strategic term based comeback.

Now in his fourth year, MDPL has become the cornerstone of Nara's esports ecosystem and China's top professional title, driving increasing social media engagement across major platforms.

And building a homeland for them to thrive in.

Yes.

We continue to expand our domestic portfolio with new, lighthearted experiences that appeal to a wider range of audiences.

Backed by all players and supported by World Class Partners and global teams we are building.

In jewelry collaborations that keep expanding what's possible and gaming.

Our MMO featuring magical heartwarming creatures inspired by Chinese fairy tales.

Has built a dedicated fan base since it launched in August.

Blizzard titles continue to elevate the gaming experience for Chinese players.

Our world class rollout updates across both classic and modern service during the third quarter.

Designed with a portrait interface for easy 100 play, the game combines the joy of capturing and nurturing creatures with strategic turn-based combat.

Sustaining strong engagement among longtime fans a new commerce alike.

To further enhance localized experience the game just launched the highly anticipated China exclusive tightened referred to server this week blending.

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?

Blending the nostalgia of classic expansions with more than gameplay elements, the new server fulfills players long awaited expectations and as we think of excitements.

Bill Pang: World of Warcraft rolled out updates across both classic and modern servers during Q3, sustaining strong engagement among longtime fans and newcomers alike. To further enhance the localized experience, the game just launched a highly anticipated China-exclusive Titan Reforged server this week. Blending the nostalgia of classic expansions with modern gameplay elements, the new server fulfills players' long-awaited expectations and has reignited excitement across the World of Warcraft community. Overwatch 2 has also recently introduced a new Chinese hero, Wuyang, further deepening the game's diverse roster of characters. Meanwhile, Hearthstone celebrated its 11th anniversary, amassing over 100 million registered players in China. A series of special anniversary events drove enthusiastic participation from both loyal fans and newcomers to the game. The Diablo franchise also continued to capture attention. Diablo II: Resurrected, the legendary remaster of the installment that helped define the franchise, returned to China on 27 August 2025.

World of Warcraft rolled out updates across both classic and modern servers during Q3, sustaining strong engagement among longtime fans and newcomers alike. To further enhance the localized experience, the game just launched a highly anticipated China-exclusive Titan Reforged server this week. Blending the nostalgia of classic expansions with modern gameplay elements, the new server fulfills players' long-awaited expectations and has reignited excitement across the World of Warcraft community. Overwatch 2 has also recently introduced a new Chinese hero, Wuyang, further deepening the game's diverse roster of characters. Meanwhile, Hearthstone celebrated its 11th anniversary, amassing over 100 million registered players in China. A series of special anniversary events drove enthusiastic participation from both loyal fans and newcomers to the game. The Diablo franchise also continued to capture attention. Diablo II: Resurrected, the legendary remaster of the installment that helped define the franchise, returned to China on 27 August 2025.

The titles continue to elevate the game experience for Chinese players.

The water across the community.

World of Warcraft rolled out updates across both Classics and modern servers during the third quarter.

Overwatch two has also recently introduced a new Chinese hero we are.

Sustaining strong engagement among longtime fans and newcomers alike.

Further deepen the games.

Rooster of characters.

Meanwhile, Hearthstone celebrated its <unk> anniversary.

To further enhance the localized experience of the game, we just launched a highly anticipated, China-exclusive Python reported server this week.

Mapping over 100 million registered players in China.

Yourself special anniversary events drove his asset participations from both loyal fans and newcomers to the game.

Blending the nostalgia of classic expansions with modern gameplay elements, the new server fulfills players' long-awaited expectations and has reignited excitement within the world-class community.

With the outflow franchise also continued to capture attention.

Overwatch 2 has also recently introduced a new Chinese hero. We are

Diablo III retroactive the legendary re master of the installment that helped define our franchise returned to China on August 27th.

Further deepen the game's diverse roster of characters.

New Easter season was released in October push the games daily active player base to a record high.

In parallel the outflow for the latest blockbuster, bringing the serious signature dark aesthetics to a new high.

Meanwhile, Hearthstone celebrated its 11th anniversary. It's amazing that there are over 100 million registered players in China. A series of special anniversary events drove enthusiastic participation from both loyal fans and newcomers to the game.

We'll launch in China on December 12.

But the Outlook franchise also continues to capture attention.

Furthermore, the genre defining a real time strategy game Starcraft II.

So return October.

Bill Pang: Newest season released in October pushed the game's daily active player base to record highs. In parallel, Diablo IV, the latest blockbuster bringing the series' signature dark aesthetic to a new height, will launch in China on 12 December 2025. Furthermore, the genre-defining real-time strategy game, StarCraft II, also returned on 28 October 2025, triggering excitement among fans. Minecraft China Edition, the localized version of the globally popular sandbox game, reached 1.25 million concurrent players on 17 August 2025, an impressive milestone in its eighth year of operation. Committed to nurturing its UGC 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.

Newest season released in October pushed the game's daily active player base to record highs. In parallel, Diablo IV, the latest blockbuster bringing the series' signature dark aesthetic to a new height, will launch in China on 12 December 2025. Furthermore, the genre-defining real-time strategy game, StarCraft II, also returned on 28 October 2025, triggering excitement among fans. Minecraft China Edition, the localized version of the globally popular sandbox game, reached 1.25 million concurrent players on 17 August 2025, an impressive milestone in its eighth year of operation. Committed to nurturing its UGC 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.

Diablo II: Resurrected, the legendary remaster of the installment that helped define the franchise, returned to China on August 27th.

Trigger excitement among fans.

Mine crowd, China edition, the localized version of a globally popular sandbox scanner.

New is the Season released in October, which pushed the game's daily active player base to a record high.

Reach of one.

Leading concurrent players almost <unk> an impressive milestone in this ACR of operation.

In parallel, Diablo 4, the latest blockbuster, brings the series' signature dark assets to a new high, and was launched in China on December 12.

Committed to nurturing a CGC ecosystem. The game continues to enhance accretion tools and expense exposure for company to creators now supporting over 300000 creators.

Furthermore, the genre-defining real-time strategy game StarCraft II also returned on October 28th, triggering excitement among fans.

By delivering enriched locally.

Locally tailored experiences Microsoft China edition as fostered a highly engaged and loyal player community.

Beyond about titles other globally renowned franchises in our portfolio also continue to strike in China.

Minecraft China Edition, the localized version of the globally popular sandbox game, reached an impressive milestone of 1.5 million concurrent players on August 17th, in its eighth year of operation.

Engaging vast creative creative community and expanding local ecosystems.

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.

Along with our expanding global presence and the evolving development capabilities are domestic community continue to thrive.

By delivering enriched.

Regardless of geographies, where genre will continue to put player first worked closely with our partners to deliver memorable high quality experiences across our beloved franchises and the existing new titles.

Bill Pang: Beyond the top titles, other globally renowned franchises in our portfolio also continue to thrive in China, engaging vast creative communities 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 will continue to put players first, and work closely with our partners to deliver memorable, high-quality experiences across our beloved franchises, and existing new titles still yet to come. Turning to Youdao, Youdao continues to solidly execute its AI-native strategy in Q3, with healthy development of both its education and advertising businesses. For learning services, Youdao Ling Shi grew gross billing by over 40% year-over-year in Q3. Notably, it partnered with the Yang Mathematical Science Center of Tsinghua University, providing technical support to a platform which is designed to identify and support mathematically gifted students.

Beyond the top titles, other globally renowned franchises in our portfolio also continue to thrive in China, engaging vast creative communities 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 will continue to put players first, and work closely with our partners to deliver memorable, high-quality experiences across our beloved franchises, and existing new titles still yet to come. Turning to Youdao, Youdao continues to solidly execute its AI-native strategy in Q3, with healthy development of both its education and advertising businesses. For learning services, Youdao Ling Shi grew gross billing by over 40% year-over-year in Q3. Notably, it partnered with the Yang Mathematical Science Center of Tsinghua University, providing technical support to a platform which is designed to identify and support mathematically gifted students.

Locally tailored experiences in Minecraft: China Edition have fostered a highly engaged and loyal player community.

Beyond above titles. Other globally. Renowned franchises in our portfolio. Also, continue to strive in China.

Engaging, vast creative community and expanding local ecosystems.

Still yet to come.

Turning to you at all.

<unk> continued to solidly execute <unk> strategy in the third quarter.

Along with our expanding global presence and evolving development capabilities.

Our domestic community continues to thrive.

With healthy development of both is education and advertising businesses.

Learning services you at all in <unk> grew gross billings by over 40% year over year in the third quarter, notably a partner with the yellow Mathematical Science center of the Shanghai University.

Regardless of geographies or genre, we will continue to put players first and work closely with our partners to deliver memorable, high-quality experiences across our beloved franchises and existing new titles. Uh, still yet to come.

Providing technical support to our platform, which is designed to.

22 years old.

In support of mathematically gifted students.

You now continue to solidly execute its AI native strategy in the third quarter.

The platform is currently being piloted in top tier schools with a national rollout plan falling further refinements.

With the healthy development of both its education and advertising businesses.

You would also online marketing services achieved a robust growth in the third.

Third quarter.

We advanced the use of AI across multiple advertising processes, we further enhanced our expertise and programmatic advertising and influence the market marketing campaigns.

Bill Pang: The platform is currently being piloted in top-tier schools, with the national rollout plan following further refinements. Youdao's online marketing services achieved robust growth in Q3. As we advance the use of AI across multiple advertising processes, we further enhance our expertise in programmatic advertising and influencer marketing campaigns, elevating the efficiency and effectiveness of advertising. For smart devices, we continue to enrich our offerings with technology upgrades. In Q3, we launched a new tutoring pen, Youdao Space X, 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 continues to perform well across major e-commerce platforms, led by steady developments in its core categories, such as pet food, home sense, and home goods. Propelling technology-driven innovations, Yanxuan's product launches have consistently stood out in the market.

The platform is currently being piloted in top-tier schools, with the national rollout plan following further refinements. Youdao's online marketing services achieved robust growth in Q3. As we advance the use of AI across multiple advertising processes, we further enhance our expertise in programmatic advertising and influencer marketing campaigns, elevating the efficiency and effectiveness of advertising. For smart devices, we continue to enrich our offerings with technology upgrades. In Q3, we launched a new tutoring pen, Youdao Space X, 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 continues to perform well across major e-commerce platforms, led by steady developments in its core categories, such as pet food, home sense, and home goods. Propelling technology-driven innovations, Yanxuan's product launches have consistently stood out in the market.

Waiting the efficiency and effectiveness of advertising.

For Learning Services, you grew gross billing by over 40% year-over-year in the third quarter. Notably, we partnered with the Yao Mathematical Science Center of Qinghai University, providing technical support to a platform designed to identify and support mathematically gifted students.

For smart devices, we continue to enrich our offerings with technology upgrades in the third quarter, we launched a new 200 million pounds Yudof Space Act, which features a series of intelligence capabilities, such as precise scanning for long form and multi geographic problems to help students.

The platform is currently being piloted in top-tier schools, with a national rural plan falling for further refinements.

Little more effectively.

Turning to <unk> the.

We would also like to highlight our online marketing services, which achieved strong results in the 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.

The business continued to perform well across the major e-commerce platforms led by steady development in its core categories, such as pet food home.

And Homegoods.

Propelling technology innovations, yes, just product launches have consistently stood out in the market.

This new path forward product use.

For smart devices, we continue to enrich our offerings with technology upgrades. In the third quarter, we launched a new tutoring path without 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.

Find production process, making a smoother and easier for past to digest, earning it widespread praise for addressing common digestive issues.

turn into yen.

Across the night as family of businesses, we continue to build on our foundation of creativity quality and disciplined execution.

Like if I study development in its core categories, such as Passport, HomeSense, and Home Goods.

Bill Pang: Its new pet food product uses a refined production process, making it smoother and easier for pets to digest, earning it widespread praise for addressing common digestive issues. Across the NetEase 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 are 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 Q3 financial results. 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 in RMB, as otherwise stated.

Its new pet food product uses a refined production process, making it smoother and easier for pets to digest, earning it widespread praise for addressing common digestive issues. Across the NetEase 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 are 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 Q3 financial results. 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 in RMB, as otherwise stated.

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.

Propelling technology-driven innovations, Yas product launches have consistently stood out in the market.

Guided by innovation and the trust of our communities, we're shaping our future defined by meaningful growth and enduring impact.

This New Path food product uses a refined production process, making it smoother and easier for paths to digest, earning it widespread praise for addressing common digestive issues.

That concludes William's comments.

At Cross, the Neti family of businesses, we continue to build our foundation of creativity, quality, and disciplined execution.

I will now provide a brief review of our 2025 third quarter financial results.

For a limited time on today's call I'll be presenting abbreviated financial highlights.

Encourage you to read through our press release.

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.

Earlier today for further details as a reminder.

Okay.

As otherwise stated.

Guided by innovation and the trust of our communities, we're shaping a future defined by meaningful growth and enduring impact.

Total net revenue for the third quarter were RMB, $28 4 billion or $44 billion, representing a 8% increase year over year.

That concludes William's comments.

Total net revenue of four more games and related BS were RMB 23, 3 billion up.

12% year over year, specifically net revenues from online games, or RMB, $22, 8 billion up 3% quarter over quarter and 13% year over year.

I will now provide a brief review of our Q3 2025 financial results. 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 rights are...

Bill Pang: Total net revenue for Q3 will be RMB 28.4 billion, or $4 billion, representing an 8% increase year-over-year. Total net revenue from our games and related VAS will be RMB 23.3 billion, up 12% year-over-year. Specifically, net revenues from online games will be RMB 22.8 billion, up 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-developed games such as Fantasy Westward Journey Online and Sword of Justice, as well as certain licensed games. The year-over-year increase was attributable to higher net revenue from self-developed games such as Fantasy Westward Journey Online, Anki Party, and newly launched Whirlwind Smith and Marvel Rivals, as well as certain licensed games. Youdao's net revenue reached RMB 1.6 billion, representing a 15% increase quarter-over-quarter, driven by growth in smart devices and online marketing services.

Total net revenue for Q3 will be RMB 28.4 billion, or $4 billion, representing an 8% increase year-over-year. Total net revenue from our games and related VAS will be RMB 23.3 billion, up 12% year-over-year. Specifically, net revenues from online games will be RMB 22.8 billion, up 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-developed games such as Fantasy Westward Journey Online and Sword of Justice, as well as certain licensed games. The year-over-year increase was attributable to higher net revenue from self-developed games such as Fantasy Westward Journey Online, Anki Party, and newly launched Whirlwind Smith and Marvel Rivals, as well as certain licensed games. Youdao's net revenue reached RMB 1.6 billion, representing a 15% increase quarter-over-quarter, driven by growth in smart devices and online marketing services.

Otherwise stated.

The quarter over quarter increase in online games net revenue was due to higher net revenues from self developed games, such as Venezuelas ordering online and sort of justice as far as certain license game the.

Total net revenue for the third quarter will be R&B 28.4 billion, or $4 billion, representing an 8% increase year-over-year.

The year over year increase was attributable to a higher net revenue from self developed games, such as fantasy westward journey online Iga parking and newly launched <unk> needs and more reliable as well as certain license games.

To net revenue from our games and related vs will be 23.3 billion of 12% year-over-year. Specifically net revenues from online games or R&B 22.8 billion of 3% quarter or quarter and 13% year-over-year.

You would also net revenue reached RMB, one 6 billion, representing a 15% increase quarter over quarter driven by growth in smart devices online marketing services year over year revenue rose by 4% attributed to a higher contribution from online marketing services.

Quarterly increase in online games. Net revenue was due to higher net revenues from self-developed games such as Venice, West Virginia Online, and Sword of Justice, as well as certain licensed games.

Net is call music net revenue was RMB 2 billion stable quarter over quarter, but down 2% year over year, notably <unk>.

The year-over-year increase was actually attributed to higher net revenue from self-developed games such as Finance Westward, Journey Online ID Party, and the newly launched Whale Wings, as well as more arrivals and certain licensed games.

Revenue from membership subscriptions continue to show healthy growth, both sequentially and year over year revenues from social Entertainment services, others, those steel and lower compared with the same period last year stabilized quarter over quarter.

Bill Pang: Year-over-year, revenue rose by 4%, attributed to a higher contribution from online marketing services. NetEase Cloud Music's net revenue was RMB 2 billion, stable quarter-over-quarter, but down 2% year-over-year. Notably, revenue from membership subscriptions continued 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-over-quarter. Net revenues for innovative business and others were 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 a lesser extent, decreased net revenue from Yanxuan and certain other businesses. Gross profit for Q3 2025 was RMB 18.2 billion, up 10% year-over-year, primarily driven by increased net revenue from online games.

Year-over-year, revenue rose by 4%, attributed to a higher contribution from online marketing services. NetEase Cloud Music's net revenue was RMB 2 billion, stable quarter-over-quarter, but down 2% year-over-year. Notably, revenue from membership subscriptions continued 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-over-quarter. Net revenues for innovative business and others were 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 a lesser extent, decreased net revenue from Yanxuan and certain other businesses. Gross profit for Q3 2025 was RMB 18.2 billion, up 10% year-over-year, primarily driven by increased net revenue from online games.

Okay.

We reached $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 revenues for innovative businesses and others were RMB, one 4 billion down 15% quarter over quarter and 19% year over year.

The sequential decline was mainly driven by mentioned due to its high base during the six E Commerce Festival.

Year over year decrease reflected an increase in search of intersegment transactions elimination and to a lesser extent.

That is called music. Net revenue from R&B is $2 billion, stable quarter over quarter, but down 2% year-over-year. Notably, revenue from membership subscriptions continues to show healthy growth, both sequentially and year-over-year. Revenues from social entertainment, services, and others are still lower compared with the same period last year, but have stabilized quarter over quarter.

Decreased net revenue from the <unk> and sort of other businesses.

Gross profit for the third quarter of 2025 was RMB 18, 2 billion up 10% year over year, primarily driven by increased net revenue from online games. This.

Net revenues for innovative business and others who aren't the $1.4 billion are down 15% quarter over quarter and 19% year over year.

This quarter, our total gross profit margin was 64, 1% looking at our third quarter margin in more detail.

Decline was mainly driven by Yansen due to its high base during the 618 e-commerce festival. The year-over-year decrease reflected an increase in certain intercement transaction eliminations and, to a lesser extent,

Gross profit margin was 69, 3% in the front.

And we look at PFS 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.

Decreased net revenue from Yansen and certain other businesses.

Gross profit for the third quarter of 2025 was $18.2 billion, up 10% year-over-year.

Bill Pang: This quarter, our total gross profit margin was 64.1%. Looking at our Q3 margin in more detail, gross profit margin was 69.3% for online games and related VAS, compared with 68.8% in the same period of last year. The improvement was mainly driven by a higher mix of PC games in China, which typically has 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 declined gross profit margin of online marketing services. Gross profit margin for NetEase Cloud Music was 35.4% in Q3, versus 32.8% in the same period 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.

This quarter, our total gross profit margin was 64.1%. Looking at our Q3 margin in more detail, gross profit margin was 69.3% for online games and related VAS, compared with 68.8% in the same period of last year. The improvement was mainly driven by a higher mix of PC games in China, which typically has 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 declined gross profit margin of online marketing services. Gross profit margin for NetEase Cloud Music was 35.4% in Q3, versus 32.8% in the same period 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.

By increased net revenue from online games.

Our gross profit margin for <unk> was 42, 2% compared with 52% in the same period last year. The decrease was mainly due to the decline gross profit margin of online marketing services.

This quarter, our total gross profit margin was 64.1%. Looking at our third quarter margin in more detail.

Gross profit margin for Netease cloud music was 35, 4% in the third quarter versus 32, 8% in the same period 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.

The gross profit margin was 69.3% from the related balance sheet compared with 68.8% in the same period of last year. The improvement was mainly driven by a higher mix of PC games in China, which typically have higher margins.

Our innovative businesses 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 again, Sean on the higher revenue contribution.

Our gross profit margin for Yoda was 42.2%, compared with 50.2% in the same period last year. The decrease was mainly due to the decline in gross profit margin of online marketing services.

Gross profit margin for 90s car music was 35.4% in the third quarter, compared to 32.8% in the same period a year ago.

From innovative business with relatively stronger margins.

Bill Pang: For our innovative business and others, gross profit margin was 43.0%, compared with 37.8% in Q3 2024. Despite the impact of intersegment elimination mentioned earlier, the improvement was mainly driven by better margins at Yanxuan, and the higher revenue contribution from certain innovative business with relatively stronger margins. The total operating expenses for Q3 was RMB 10 billion, or 36% of our net revenues. Taking a closer look at our cost composition, our sales and marketing expenses as a percentage of total net revenue were 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 at 16% of total net revenues in Q3, compared with 16.9% for the same period last year, reflecting our consistent investment in content creation and product development.

For our innovative business and others, gross profit margin was 43.0%, compared with 37.8% in Q3 2024. Despite the impact of intersegment elimination mentioned earlier, the improvement was mainly driven by better margins at Yanxuan, and the higher revenue contribution from certain innovative business with relatively stronger margins. The total operating expenses for Q3 was RMB 10 billion, or 36% of our net revenues. Taking a closer look at our cost composition, our sales and marketing expenses as a percentage of total net revenue were 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 at 16% of total net revenues in Q3, compared with 16.9% for the same period last year, reflecting our consistent investment in content creation and product development.

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.

The total operating expenses for the third quarter.

Was RMB 10 billion was 36% of net revenues.

A closer look at our cost competition.

Our sales and marketing.

Our selling and marketing expenses as a percentage of total net revenue.

The 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 to maintain stable at 16% of total net revenues in the third quarter compared with 16, 9% for the same period last year, reflecting our consistent investments in <unk>.

Despite the impact of inter-segment elimination mentioned earlier, the improvement was mainly driven by better margins at Yansan and the higher revenue contribution from certain innovative businesses with relatively stronger margins.

The total operating expenses for the third quarter.

R&B accounted for $10 billion or 36% of our net revenues. Taking a closer look at our cost composition,

Creation and product development.

Our sales and marketing expenses are selling and marketing expenses as a percentage of total net revenue.

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 applicable policies and our operations.

Or 15.7%, compared with 14.5% for the same period last year, primarily due to an increase in market expenditure related to online games.

Our non-GAAP net income attributable to shareholders for the third quarter totaled RMB nine 5 billion.

One 3 billion in U S dollars up 27% year over year.

Bill Pang: The effective tax rate was 13% for Q3. As a reminder, the effective tax rate is presented on an accrual basis in accordance with operable policies and our operations. Our non-GAAP net income attributable to shareholders for Q3 totaled RMB 9.5 billion, or $1.3 billion, up 27% year-over-year. Non-GAAP basic earning per ADS for the quarter was $2.09, or $0.42 per share. Additionally, our cash position remains robust, with net cash of approximately RMB 153.2 billion as of 30 September 2025, compared with RMB 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 $0.114 per share, or $0.57 per ADS.

The effective tax rate was 13% for Q3. As a reminder, the effective tax rate is presented on an accrual basis in accordance with operable policies and our operations. Our non-GAAP net income attributable to shareholders for Q3 totaled RMB 9.5 billion, or $1.3 billion, up 27% year-over-year. Non-GAAP basic earning per ADS for the quarter was $2.09, or $0.42 per share. Additionally, our cash position remains robust, with net cash of approximately RMB 153.2 billion as of 30 September 2025, compared with RMB 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 $0.114 per share, or $0.57 per ADS.

non-GAAP basic earnings per ads for the quarter was $2 <unk> or 42, SaaS U S dollars per share.

Our R&D expenses remained stable at 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 fractured product development.

Yes.

Additionally, our cash position remains robust with net cash of approximately RMB $153 2 billion as of September <unk> 2025, compared with RMB $142 1 billion at the end of last quarter.

The effective tax rate was 13% for the third quarter. As a reminder, the effective tax rate is presented on a accrual basis in accordance with applicable policies and our operations.

On a non-GAAP net income attributable to shareholders for the third quarter total, R&B 9.5 billion, or $1.3 billion, representing a 27% year-over-year increase.

Yes quarters with our dividend policy. We are pleased to report that our board of directors has approved a dividend of 11 <unk> per share or <unk> 57, a SaaS U S dollar per avs.

Non-GAAP basic earnings per ADS for the quarter were $2.99, with a net income of $0.42 per share.

The company announced today that its previously approved share repurchase program of up to $5 billion for the companies and.

All the shares in the open market or other transactions will be extended for an additional six months 36 months until January nine 2029 as of September searches 2025, approximately $22 1 billion ABS has been repurchased under this program for a total cost of approximately 2 billion U S.

Additionally, our cash position remains robust with net cash of approximately ¥153.2 billion as of September 30, 2025, compared with ¥142.1 billion at the end of last quarter.

Bill Pang: The company announced today that its previously approved share repurchase program of up to $5 billion for the company's ADS and other shares in open market or other transactions will be extended for an additional 36 months until 9 January 2029. As of 30 September 2025, approximately 22.1 million ADS has been repurchased under this program for a total cost of approximately $2 billion. Thank you for your attention. We would now like to open the call to your questions. Operator, please. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question.

The company announced today that its previously approved share repurchase program of up to $5 billion for the company's ADS and other shares in open market or other transactions will be extended for an additional 36 months until 9 January 2029. As of 30 September 2025, approximately 22.1 million ADS has been repurchased under this program for a total cost of approximately $2 billion. Thank you for your attention. We would now like to open the call to your questions. Operator, please.

In accordance with our dividend policy, we're pleased to report that our board of directors as a proof. The dividend of 11.4 cents US dollars per share or 57 cents US dollar per ads.

<unk>.

Thank you for your attention we will now like to open the call to your questions operator. Please.

Thank you. Thank you Mr asked a question. Please press star one on your telephone.

<unk> announced if you wish to cancel your request please press star team. Thank.

If you're on a speakerphone please pick up the handset to ask your question.

The benefit of all participants on today's call. If you wish to ask your questions management in Chinese. Please immediately repeat your question in English. Please limit your questions to one is.

The company announced today that its previously approved share repurchase program of up to 5 billion US dollars for the company's ads and other shares in open market or other transactions, will be extended for an additional City 6 months. 36 months until January, 9th 2029, as of September 30th 2025 approximately 22.1 million ads has been repurchased under this program for total cost of approximately 2 billion US dollars.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question.

Thank you for your attention. We would now like to open the call to your questions. Operator, please.

If you have follow up questions. Please rejoin the queue.

Your first question comes from seeking Zhang with TICC.

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.

Okay. Thank you Glenn.

Bill Pang: 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 concerns Yu Qingzeng with CICC. ???????????????????????????????????????????PC????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Thanks management for taking my question and the congratulations on the start of Quarter. My question about your Fantasy Westward Journey. Given that Fantasy Westward Journey PC has consistently set new records for online player count since this summer, we would appreciate that the company sharing its operational strategy for this evergreen title. We have several follow-up questions on it. Firstly, what's the core driving factors behind the unlimited player server? Secondly, what's the user profile? What's the ratio of returning players to new players?

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 concerns Yu Qingzeng with CICC.

Additionally, Tina.

If you are on a speakerphone, please pick up the handset to ask your question.

<unk>.

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Xueqing Zhang: ???????????????????????????????????????????PC????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Thanks management for taking my question and the congratulations on the start of Quarter. My question about your Fantasy Westward Journey. Given that Fantasy Westward Journey PC has consistently set new records for online player count since this summer, we would appreciate that the company sharing its operational strategy for this evergreen title. We have several follow-up questions on it. Firstly, what's the core driving factors behind the unlimited player server? Secondly, what's the user profile? What's the ratio of returning players to new players?

So I think shadowing solution.

Your first question comes from King Zhang with cicc.

I'll tell you.

Beyond the Cleveland.

Thanks Stephen.

And say how are you.

So Joe Moore, She's just don't play for 2000 catastrophe and chunky chunky.

Thanks management for taking my question.

Congratulations on the solid content.

Question for Bob.

Do you have to estimate.

GTC Conference company sits in Europe.

I'll add to your comp.

Since the summer.

I appreciate that the company sharing its operational suggestion for these evergreen title.

And now we have several follow up questions I'll hit first.

Firstly, whats driving that kind of stuff.

In the past.

Second let me, let's say you're in that profile.

Operator can I ask two new plants.

And thanks, management, for taking my question, and congratulations on the story cut. Um, my question about your fantasy was World Journey. Given that WJP has consistently reset your record for online player accounts.

And lastly in this model.

Cause.

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Thank you.

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Move on to shield.

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The ability to Ashish who opened in Uganda.

Bill Pang: Lastly, is this model replaceable across other flagship titles? Thank you. ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????22???????????????????????????????????????????????????????????????????? Okay, I'll do the translation. The longevity of Fantasy Westward 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, a stable ecosystem, and innovative content. This commitment has been recognized and appreciated by our players as well, as you can see from the market. In the unlimited server, we have removed the upfront time-based payment, streamlined the gameplay and systems, and offered a lighter gameplay format, while preserving the core designs that have evolved in our classic server over time. Compared with the comprehensive and diverse in-game experience on the content, unlimited server offers enjoyable experiences in a more simple and direct manner. Unlimited server has a lower learning threshold, attracting a large number of long-lost users as well as brand new players. This is the main composition of unlimited server. At the same time, because of the high-quality experience of unlimited server, it has also brought additional new and returning users to our time-based server. As a classic game that has been operating for 22 years, Fantasy Westward Journey Online PC has always insisted on innovation and diversified fun experiences, continuously meeting the needs of players and the community. In the future, we will also strive for continuous development to provide a diversified choice for the vast number of players. Thank you.

Lastly, is this model replaceable across other flagship titles? Thank you.

Uh since this summer uh we would appreciate that. The company sharing its operational structure for this Evergreen title and we have several follow-up questions on it and firstly what's the code driving factors behind the unlimited player server and secondly uh what's the user profile? Uh what's the ratio of returning players to new players?

<unk> is a chance we achieve youll include Hugo Yoshida Luge Dean that you should assume.

William Ding: ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????22????????????????????????????????????????????????????????????????????

Bill Pang: Okay, I'll do the translation. The longevity of Fantasy Westward 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, a stable ecosystem, and innovative content. This commitment has been recognized and appreciated by our players as well, as you can see from the market. In the unlimited server, we have removed the upfront time-based payment, streamlined the gameplay and systems, and offered a lighter gameplay format, while preserving the core designs that have evolved in our classic server over time.

And lastly, is this model reflectable because of other flagship titles? Thank you.

You can assume that you wish you miro.

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Translation.

The longevity of Venezuelas journey.

<unk> is based on this highly stable economies system unique.

Unique.

You've reached gaming experiences, which are very we are in most other games.

For.

Our team has been dedicated to providing sustainable funding experience.

Stable ecosystem.

Innovative content.

This commitment has been recognized.

Issued by the.

Players as well.

Steve on the market in.

In the.

Unlimited server we.

We have removed the upfront time based payment stream lies.

Gameplay and systems offer a lighter gateway format.

Okay. Uh, I'll do the translation, uh, the longevity of FIS Sports Journey. Uh, online pc is based on is highly stable economic system and unique uh, in Rich gaming experience of which are very rare uh in most other games.

<unk> preserving the core designs.

Involved possibly silver overtime.

Our team has been dedicated to providing a sustainable funding experience, a stable ecosystem, and innovative content.

Compared with the comprehensive and diverse in-game experience on the content, unlimited server offers enjoyable experiences in a more simple and direct manner. Unlimited server has a lower learning threshold, attracting a large number of long-lost users as well as brand new players. This is the main composition of unlimited server. At the same time, because of the high-quality experience of unlimited server, it has also brought additional new and returning users to our time-based server.

Compared with the comprehensive and diverse gaming experience.

On the.

Content Unlimited server offers.

Enjoyable experiences in the single most important Eric manner.

With a smooth learning curve unlimited server has attractive both many former players back to the game as well as new players.

As a classic game that has been operating for 22 years, Fantasy Westward Journey Online PC has always insisted on innovation and diversified fun experiences, continuously meeting the needs of players and the community. In the future, we will also strive for continuous development to provide a diversified choice for the vast number of players. Thank you.

This commitment has been recognized, uh, and issued by the or players as well as you can see from the, from the market in the, uh, unlimited server. Uh, we have removed the upfront time based payment streamlines, the, uh, gameplay and systems. Offered a lighter gameplay format, well preserving, the core designs that have evolved in our plastic server over time.

This user.

Demographic of unlimited server actually also benefit the caustic server by introducing additional new and returning players.

Compared with the comprehensive and diverse in-game experience, uh, on the uh, uh,

Finish was purely online as a legacy JM has been operated for 23 years.

Bill Pang: With a smooth learning curve, unlimited server has attracted both many former players back to the game, as well as new players. This user demographic of unlimited server actually also benefits the classic server by introducing additional new and returning players. Fantasy Westward Journey Online as a legacy game has been operated for 22 years. We remain committed to the innovation and diversified experience to continue to meet the demands from our community. Looking ahead, we will continue to focus on long-term development, providing our broad player community with various choices in one game. Thank you. Your next question. Operator, next question, please. Comes from Thomas Chang with Jeffries. ??????????????????????????????????????????????????????????????????????????????????? Hi, good evening. Thanks management for taking my question. Can management comment about the gaming trend in China as well as overseas? On the other hand, can management also talk about the overseas expansion strategy? Thank you.

With a smooth learning curve, unlimited server has attracted both many former players back to the game, as well as new players. This user demographic of unlimited server actually also benefits the classic server by introducing additional new and returning players. Fantasy Westward Journey Online as a legacy game has been operated for 22 years. We remain committed to the innovation and diversified experience to continue to meet the demands from our community. Looking ahead, we will continue to focus on long-term development, providing our broad player community with various choices in one game. Thank you.

Content Unlimited Server offers enjoyable experiences in a simple, more direct manner.

We remain committed to the innovation.

Our diversified experience to meet continues to meet the demands from our community.

Uh, with a smooth learning curve, unlimited server, and a track record, both many former players have returned to the game as well as new players.

Looking ahead, we will continue to focus on long term development, providing our player community with virus choices in one game. Thank you.

This user demographic of unlimited servers actually also benefits the classic server by introducing additional new and returning players.

Your next question operator next question.

Comes from Thomas Chong with Jefferies.

Uh, Finance was 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 the continuous demands from our community.

Thanks James.

My name is Jose equally.

Hi, Michael This is Tom.

Operator: Your next question.

I appreciate the comment.

Looking ahead, we will continue to focus on long-term development, providing our broad player community with various choices in one game. Thank you.

Comment.

Ladies and gentlemen.

Goldman Sachs.

I think youll see data points on David.

Bill Pang: Operator, next question, please.

Operator: Comes from Thomas Chang with Jeffries.

Hi, Good evening, just with instruments for taking my question.

Thomas Chong: ??????????????????????????????????????????????????????????????????????????????????? Hi, good evening. Thanks management for taking my question. Can management comment about the gaming trend in China as well as overseas? On the other hand, can management also talk about the overseas expansion strategy? Thank you.

So our next question, operator, next question comes from Thomas Chong with Jefferies.

Sure we can comment on how the demand trends in China as well.

Overseas.

Can management also talk about the overseas expansion strategy. Thank you.

Well, then say hey, why Youll see.

Jean Gauteng.

Voice.

You were pretty helpful for them.

<unk> year.

Hi, good evening. Uh, thanks management for taking my question.

Okay. So he is from moment Jinan those soon.

Through April.

China.

Good evening.

Well Neal.

Fisherman. Comment about the demon trend in China, as well as offices. Um, on the other hand, can management also talk about the overseas expansion strategy? Thank you.

Plenty of shingle.

Bill Pang: ??????????????????????????????????????????????????????????????????????????12?????????????????????????15?????????16?????????????????????????????????????????????????????????????????????????????????????????????????????????16????????????????????????????????????????????????????????????????????????????????????????? Okay, I will do the translation. During our business operations process of doing business in overseas markets, we have accumulated successful experiences, which is powered by the strong development capability we have in-house here. For example, in Japan, we have Knives Out and Identity V, been very popular national level games. Last December, we released Marvel Rivals globally, super successful. Just 15 November this month, we released Whirlwind Smith in global markets. All this product achieved a very good level of success overseas, and we hear a lot of positive feedback from the community as well. What we see is that in the overseas market, NetEase is one of the most prominent game developing powerhouses in our industry. We are the only company that brings the purely, truly Chinese authentic online games to the global market.

William Ding: ??????????????????????????????????????????????????????????????????????????12?????????????????????????15?????????16?????????????????????????????????????????????????????????????????????????????????????????????????????????16?????????????????????????????????????????????????????????????????????????????????????????

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Do the translation.

During our business operations a process of <unk>.

Doing business in OSV market, we have accumulated a success.

Successful experiences.

<unk> is powered by the strong development capability, we have in house.

<unk> for example in Japan.

We have maxed out at 35.

Bill Pang: Okay, I will do the translation. During our business operations process of doing business in overseas markets, we have accumulated successful experiences, which is powered by the strong development capability we have in-house here. For example, in Japan, we have Knives Out and Identity V, been very popular national level games. Last December, we released Marvel Rivals globally, super successful. Just 15 November this month, we released Whirlwind Smith in global markets.

Very popular National network games.

Last December we.

We released our rivals.

Globally Super successful.

<unk>.

November 15th this months, where at least where it meets in global markets and <unk>.

All of this product.

Okay. Uh, I will do the translation uh, during our operation. This is operations, uh, process of uh uh, doing business in orc Market. We have accumulated uh, successful experiences uh which is powered by the strong development capability. We have uh, in-house here for example, in Japan.

Barry.

Good level of success overseas and we hear a lot of positive feedback from the committee as well.

We have, you know, knives out at Identify. They've been, you know, very popular at the national level games.

Given the what we see is out in the overseas markets and that is one of the.

And last December, we released more rivals.

Most prominent game developing powerhouses.

And in our industry.

All this product achieved a very good level of success overseas, and we hear a lot of positive feedback from the community as well. What we see is that in the overseas market, NetEase is one of the most prominent game developing powerhouses in our industry. We are the only company that brings the purely, truly Chinese authentic online games to the global market.

And we are all aware the only company.

Companies that bring b.

Purely truly Chinese authentic online games to global market for example, where we.

Globally, uh, super successful and just, uh, uh, uh, November 15th this month, we released, uh, wear Wings meets in Global Market and, uh, uh, all this product achieved very, uh, good level of success overseas and, uh, we hear a lot of positive feedback from the community as well.

Yeah.

Various Chinese.

Okay.

That helps.

We are the only big successful companies that bring this level for authentic experience should be online gamers globally and received very positive feedback.

Uh in the what we see is that in the overseas markets Nettie is as 1 of the uh most prominent, you know, game developing powerhouses uh in in our industry. Uh and we are all we're the only, uh, company that bring the

Looking ahead, we believe.

Bill Pang: For example, Where Winds Meet is a very Chinese Wuxia setup, 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 the overseas market, and provide gamers from the globe with more and more high-quality content and services. We have confidence in that. Thank you. Operator, next question. ???????????????????????????????????????????????????????????????????????PC???????????????????????????????????Anata??????????????9?25????????????????????????????????????????????????????????????????? Yeah, there are some further comments from William. One is that actually still in this month, we also rolled out our Sword of Justice into the global market. Of course, three years ago, we rolled out Naraka: Bladepoint PC on the global market. As you heard, we showed our games to the public for both Ananta and Sea of Remnant. The market has very big expectations.

For example, Where Winds Meet is a very Chinese Wuxia setup, 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 the overseas market, and provide gamers from the globe with more and more high-quality content and services. We have confidence in that. Thank you. Operator, next question.

We have the capability to bring more and more success cases to oversea market.

Purely, truly Chinese authentic online games to global marketing. For example, where we, it's a, it's a very Chinese... we are, you know,

<unk> provides gain.

Gamers.

From the globe.

With more and more high quality content and services, we have confidence in that thank you.

It's a, and we're the opening, uh, big successful companies that, uh, bring this level of authentic experience.

Operator.

Yeah.

Well what happened.

Should be online gamers globally and receive very positive feedback.

What's happening.

Typically yes, some niche a Honda Silvio.

Montana finish on your second half.

Signing Shan Shan.

Jim will tender PC.

Hi.

Yes, it should have had that a simple no chance and this is due mainly.

Um, looking ahead. Uh, we believe, uh, we have the capability to bring more and more success cases, uh, to OC market and, uh, provide, uh, Gamers, uh, from the globe, you know, uh, with more and more high quality cotton and services. We have companies in that, thank you.

William Ding: ???????????????????????????????????????????????????????????????????????PC???????????????????????????????????Anata??????????????9?25?????????????????????????????????????????????????????????????????

Bill Pang: Yeah, there are some further comments from William. One is that actually still in this month, we also rolled out our Sword of Justice into the global market. Of course, three years ago, we rolled out Naraka: Bladepoint PC on the global market. As you heard, we showed our games to the public for both Ananta and Sea of Remnant. The market has very big expectations.

Operator.

<unk> Samsung agenda, we shouldnt.

You accrued on it shrunk while missing.

Thank you. We also were harder stunting Yoshi, Samsung we tend not to dollar tree.

She Diana.

One got it in the toolkit.

Awesome.

And a few women winder type means we can go to 600 homes.

Gigi thank hurtful.

Right.

You included services.

Yes, there are some further comments from from William one is that actually.

Stuart.

And hopefully in this month's who also.

Rollout, our sort of justice into a global market and of course three years ago, we rolled out now if a breakpoint PC on global markets.

As you heard.

We showed our games to public before both Atlanta, and Seo Seo regiments.

<unk> very big expectations.

We showed an anti totally game show this year.

Yes.

<unk> has been named one of the most.

Promising upcoming games by the different games award trying to quantify future.

Division.

And that is we.

Both based in China and.

And we're also.

Our territory in the global markets.

Bill Pang: We showed Ananta at Tokyo Game Show this year, and it's been named one of the most promising upcoming games by the Japan Games Award 2025 Future Division. NetEase, we are based in China, and we are also carving our territory in the global market. That is what we have been doing. We have some successes, and we're going to keep doing. Thank you. Operator, next question. Comes from Richie Sun with HSBC. ??????????????????????????????????DAU???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????ARPG??????????????????????????????? Thank you management for taking my questions. Regarding Identity 5, we have seen the volatility in growth and DAU in recent months. Can management discuss the reasons behind it and the strategy to improve the performance? Secondly, World of Warcraft and Hearthstone have returned to China for one year already and are about to face tough comms.

We showed Ananta at Tokyo Game Show this year, and it's been named one of the most promising upcoming games by the Japan Games Award 2025 Future Division. NetEase, we are based in China, and we are also carving our territory in the global market. That is what we have been doing. We have some successes, and we're going to keep doing. Thank you. Operator, next question.

<unk>.

That is what do we have been doing we have some successes.

We're going to keep doing thank you.

Operator next question.

Comes from Ritchie from HSBC.

My future.

Glen can you manage that.

Or whatnot.

So that's the only.

Thank you.

Division. Uh, NetEase is we, uh, both based in China and, uh, and we're also, you know, carving our territory in the global market, uh, that, that.

Total da Youll find me and the board wont be calpine.

Do you like one is xiaomi is happening at <unk>.

That is, uh, what we have been doing. We have had some successes, and we're going to keep doing this. Thank you.

Hi, a whole shoot shot at <unk>.

Operator: Comes from Richie Sun with HSBC.

For the next question.

And then the one that you're sure Moshe yes sure.

Ritchie Sun: ??????????????????????????????????DAU???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????ARPG??????????????????????????????? Thank you management for taking my questions. Regarding Identity 5, we have seen the volatility in growth and DAU in recent months. Can management discuss the reasons behind it and the strategy to improve the performance? Secondly, World of Warcraft and Hearthstone have returned to China for one year already and are about to face tough comms.

Comes from with HSBC.

Sure.

Wait wait till <unk>.

Mindy you don't call that won't be the tissue Glen as handsome Fulton County, Scott Hamann balance sheet.

That's the outcome.

<unk>.

When it's.

Issues just in some time, maybe one on <unk>.

Detailed equate Thomas Kim <unk> Soo, Kim Jeong hwan.

One is hungry.

Douglas Filipino Shanghai T&D. Thank.

Thank you management for taking my questions.

<unk> identified we have seen some volatility in grossing NDA you in.

Recent months can management discuss the reasons behind it and the strategy to improve the <unk>.

Secondly, well profit hospital 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.

Diablo four is also coming back soon can management discuss demonetize monetization potential considering the more intense competition in the ARPG genre. Thank you.

Uh, thank you, management, for taking my questions. Uh, regarding Identity V, we have seen the volatility in grossing and do in recent.

Months can management discuss the reasons behind it and the strategy to improve the performance.

Dewatering cashless <unk> Yoshi since Ics <unk>.

Bill Pang: Can management discuss the performance metrics now versus one year ago and plans to drive sustainable growth in the future? Diablo IV is also coming back soon. Can management discuss the monetization potential considering the more intense competition in the ARPG genre? Thank you. ????????????????????????????????????????????????????????????9?????????????????????????????????????????????????????????????????????? ???????????????????????????????????????????????????????????? Okay, I will translate this part first. Indeed, it's true that there has been some influence from competing products during the summer holidays, particularly among general users in lower-tier cities. However, we also have noticed that the impact has eased since the start of back-to-school time. In fact, talking about September, Identity V's metric has reached historical highs starting from the new semester compared to the same period in previous years. While Q4 historically has never been the peak season for Identity V, the team is focusing on preparing new content and marketing campaigns for the Chinese New Year cycle.

Can management discuss the performance metrics now versus one year ago and plans to drive sustainable growth in the future? Diablo IV is also coming back soon. Can management discuss the monetization potential considering the more intense competition in the ARPG genre? Thank you.

Sui Shonda <unk> hotel in China, Eugene casually Trina.

We see momentum.

Terrific.

That's going to be.

Convenient at Wuxi is Thomas shingle anyway, decency to Shanghai DRAM goes through to the Guardian.

Secondly uh world Warcraft, and hotstone have returned to China for 1 year already. And about to face, tough comps and management. Discussed the performance metrics Now versus 1 year ago, and plans to drive sustainable growth in the future. And the Diablo 4 is also coming back soon, can management discuss the monetize monetization potential, considering the more intense competition in the arpg. Genre thank you.

William Ding: ????????????????????????????????????????????????????????????9?????????????????????????????????????????????????????????????????????? ????????????????????????????????????????????????????????????

So.

Those are the way women that we'd added <unk>.

<unk> will likely come down.

<unk> will go to one channel.

I'm not familiar with <unk>.

Women's hunting.

uh,

Global company in June of this year.

So that ramp up.

Thank you.

Okay I will translate.

Part first.

Indeed, it's true that there has been some influence from competing products during the summer holidays.

Particularly among general users in lower tier cities. However, we also have noticed that the impact has this has east seems to start off back to school.

Bill Pang: Okay, I will translate this part first. Indeed, it's true that there has been some influence from competing products during the summer holidays, particularly among general users in lower-tier cities. However, we also have noticed that the impact has eased since the start of back-to-school time. In fact, talking about September, Identity V's metric has reached historical highs starting from the new semester compared to the same period in previous years. While Q4 historically has never been the peak season for Identity V, the team is focusing on preparing new content and marketing campaigns for the Chinese New Year cycle.

And in fact talking about September.

<unk>.

<unk> has reached historical high.

Starting from the new semester compared to the same period in previous years.

Q4, historically has never been the peak season for identify.

The team is focusing on preparing new content and marketing campaign for the Chinese new year cycle.

Okay. Uh, I will transfer this, this part first. Uh, it's indeed. It's true. That there, there has been some influence from completing products uh, during the summer holidays, uh, particularly among General users in lower tier cities. However, uh, we also have noticed that the impact has, these has eased since the start of back to school.

During this period, we officer there are demands.

Other diversified demands on diversified game plays from community. So we have been preparing more comprehensive and large scale <unk> mode.

Time and, in fact, uh, talking about September, you know, uh,

While all the other hand.

Yes.

We were also working on the next heifers all per day.

Bill Pang: During this period, we observed there are diversified demands on diversified gameplays from the community. We have been preparing more comprehensive and large-scale side game modes. On the other hand, we are also working on the next chapters of the game. Yeah. ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????4????????????????????????????????????????ARPG????????????????????2???????????????????????RTS? Okay, thank you. As we approach the end of current expansion of World of Warcraft, it is indeed expected to see a decline in performance compared to its launch period. Meanwhile, Hearthstone has steadily maintained its cadence of expansion pack updates over the past years. With different operation strategies from the past, the performance of both games actually maintained higher status than when the operation closed previously. Moving forward, we'll continue to deepen our collaboration to sustain our unique competitive offerings in the China market. One specific example I want to give here is the Titan Reforged server of World of Warcraft.

During this period, we observed there are diversified demands on diversified gameplays from the community. We have been preparing more comprehensive and large-scale side game modes. On the other hand, we are also working on the next chapters of the game. Yeah.

Identifies, uh, metrics have reached historical highs, uh, starting from the new semester compared to the same period in previous years. Well, Q4 historically has never been the peak season for Identifies 5, and the team is focusing on preparing new content and marketing campaigns for the Chinese New Year cycle.

Okay.

Yes.

Okay.

And with the energy.

Jeff.

Got it.

Uh, during this period, we observed there are demands. Uh, are there diversified demands on diversified gameplay from the community? So we have been preparing more comprehensive and large-scale psychological modes. Uh, well, on the other hand with...

Essentially yes.

Gotcha Gotcha.

Santander.

Zhipeng Hu: ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????4????????????????????????????????????????ARPG????????????????????2???????????????????????RTS?

Bill Pang: Okay, thank you. As we approach the end of current expansion of World of Warcraft, it is indeed expected to see a decline in performance compared to its launch period. Meanwhile, Hearthstone has steadily maintained its cadence of expansion pack updates over the past years. With different operation strategies from the past, the performance of both games actually maintained higher status than when the operation closed previously. Moving forward, we'll continue to deepen our collaboration to sustain our unique competitive offerings in the China market. One specific example I want to give here is the Titan Reforged server of World of Warcraft.

Okay.

Yeah. Well, uh, we we we also, uh, working on the, uh, uh, next chapter of the game. Yeah.

Yeah.

Sure Yes.

Well.

Right.

Sure.

I would add.

Okay.

Yes.

But.

Sure Yes.

Yes.

So long.

Yes.

Just as good.

Good luck.

Yes.

Tom.

Synergy.

Got it.

Sure.

Gotcha.

Hi, all my questions.

This will be citizens.

Exactly the same chip.

Yeah.

The capex for this quarter.

AP.

So it is a matter of Sunshine.

Okay.

Uh huh.

Yes.

Okay. Thank you.

No.

Yes.

As we approach the end of current expansion on what oil crop. It is indeed expected to see decline in performance compared to this long term.

Um, I have a question.

Launch period. Meanwhile, Hearthstone has steady maintain its cadence of expansion pack updates over the past years.

With different <unk> strategy from the POS the performance of both games actually maintained higher then.

The state has been one was.

One the operating cost.

Previously moving forward, we'll continue to deepen our cooperation.

To sustain our unique competitive offerings in the China market and one specific example are willing to give here is the Titan reported server auto club that indeed, it was initiated by together by our Chinese team.

Okay. Uh, thank you. Uh, yeah. As we approach the end of the current expansion of watercraft, it is indeed expected to see a decline in performance compared to this launch period. Meanwhile, Hearthstone has a steady maintenance cadence of expansion pack updates over the past years.

In the U S team together.

We set the target and designed together.

Uh with different operation strategy from the past, the performance of both games, actually maintain the higher than uh status than uh 1 was uh 1 1 1, the operation closed.

And.

Yes.

<unk> developed specific for this demands and resolve this.

Very good. So that's just one example to see up by working closely by working closer together, we can achieve better results compared to the past.

Bill Pang: That indeed was initiated together by our Chinese team and the US team together. We set the target and design together and developed specific for this demand. The result is very good. That is one example to see by working closer together, we can achieve better results compared to the past. Talking about Diablo, Diablo IV has its own unique quality, and we have brand new business plans in place for it. We believe it will secure its deserved market share and commercial performance in the ARPG segment after launch. In addition, StarCraft II has achieved record-high user engagement since its launch, infusing vitality into the RTS genre. Thank you. Operator, next question, please. Your next question comes from Alicia Yap with Citigroup. ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????26???????????????????????. Just wanted to follow up.

That indeed was initiated together by our Chinese team and the US team together. We set the target and design together and developed specific for this demand. The result is very good. That is one example to see by working closer together, we can achieve better results compared to the past. Talking about Diablo, Diablo IV has its own unique quality, and we have brand new business plans in place for it. We believe it will secure its deserved market share and commercial performance in the ARPG segment after launch. In addition, StarCraft II has achieved record-high user engagement since its launch, infusing vitality into the RTS genre. Thank you. Operator, next question, please.

Talking about Diablo Diablo four has its own unique quality and we have brand new business plans in place for it we believe.

Uh, previously moving forward, we'll continue to deepen our collaboration, uh, to sustain our unique competitive offerings in the China market and 1 specific example. Uh, we want to give here is the Titan reforge server of World Cup that indeed was initiated by, uh, together by our, uh, Chinese team and and and the usdm together, uh, we set the target.

It will secure deserved market share on the commercial performance of the RPG.

RPG segment. After launch in addition, the Starcraft II has achieved record high user engagement since its launch infusing.

Battology into the Rts genre. Thank you.

And design together. Uh, and, uh, uh, and develop specific for this, uh, demands, and the result is, uh, is very good. So that is one example, uh, to see if by working closer together, we can achieve a better result compared to the past.

Operator next question please.

Your next question comes from Alicia Yap with Citigroup.

Hi, Sanjay.

So what <unk> learned plenty, Joe why Shawn Hall.

Well that sounds benzene is ashok.

Silicon Jim Jaye.

<unk> the airline today and Thats for sure.

Operator: Your next question comes from Alicia Yap with Citigroup.

Sure.

Boddington, you'll start Archie here.

Uh 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 was Secure uh it's deserved market share and Commercial performance. If the arpg segments after launch uh in addition, stockcraft 2 has achieved record high user engagement since this launch, if you think uh uh you know uh Vitality uh into the RTS genre. Thank you, operator. Next question, please.

Yeah.

Oh is that Get's too.

Your next question comes from Alicia Yap with Citi Group.

So why is that.

Equal farm quite a liquid and then go down slightly.

Below the line I just shipped so much call talk about within Badger.

Sure.

Hi.

Hello.

<unk> for the knee.

That's one thing.

Oh, yes.

Why is that you'll now go quietly.

Sure sure.

So this is from Tien tsin that Jason Thank you Marco.

Tom.

So just wanted to follow up I think management mentioned.

Um, hi, um, uh to uh,

Amato was recently showcased at the Tokyo game show.

Pretty good.

So just wanted to know.

More details about the user feedback.

Uh huh.

How should we think about our market positioning and also the differentiation of the system and then it also seems that became in crude at pretty decent rich content and also the innovative game play.

Alicia Yap: ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????26???????????????????????. Just wanted to follow up.

Bill Pang: I think management earlier mentioned Ananta was recently showcased at the Tokyo Game Show and has pretty good feedback. I just wanted to know more details about the user feedback, how should we think about the market positioning, and also the differentiations of this game. It also seems that the game included pretty decent rich content and innovative gameplay. Any comments on that? Are there any updates regarding the next testing timing and the official launch timing in 2026 that you can share? Thank you. ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? We showcased the latest update and play testing of Ananta at the Tokyo 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 2025 Future Division.

I think management earlier mentioned Ananta was recently showcased at the Tokyo Game Show and has pretty good feedback. I just wanted to know more details about the user feedback, how should we think about the market positioning, and also the differentiations of this game. It also seems that the game included pretty decent rich content and innovative gameplay. Any comments on that? Are there any updates regarding the next testing timing and the official launch timing in 2026 that you can share? Thank you.

Any comments on that and then.

Updates regarding next testing timeline and also the Ossetian launched.

Sure. Thank you.

Oh yeah.

Hey, Jonathan.

Consultation genes, so aneel that changeover I say on a go forward or not.

Yes.

These events, which as you asked whether or not you have any yossi dagan, who actually that you don't own.

Um, so just wanted to follow up. I think management earlier mentioned, uh, anata was recently, showcased at the, uh, Tokyo game show and, uh, had a pretty good, uh, you know, feedback. So just wanted to know, um, you know, more details about the user feedback and then, uh, how should we think about the market positioning, and also the differentiations of this game. And then it also seems that, uh, the game included, uh, pretty decent Rich content, and also the Innovative gameplay. So, um, you know, any any comments on that and then, are there any updates? We

Shuang <unk> junior Chongqing, Shanghai, <unk>, Chongqing anymore citizens and <unk> each of them changing their attempting somehow.

Regarding the next testing timing and also the official launch timing in 2026 that you can share. Thank you.

Turning to ensure equal sharing and habits into Wuhan.

<unk> hosted a switchover Sunshine thoughtfully Docetaxel boutique to agency.

Financial countries, yes.

Yes, we showcased the.

Latest update on <unk> testing of the TARP redemption.

Which attracted significant attention on social media across the world.

Champion.

One of the most promising upcoming titles by the Japan came at $100 five future Division.

We believe with a blend of cost of quality content innovative monetization strategy as well.

Bill Pang: We showcased the latest update and play testing of Ananta at the Tokyo 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 2025 Future Division.

Our focus on long term operations.

We anticipate the B became will secure a new position within the industry ecosystem. We're currently.

Planning to further enhance our development process.

Bill Pang: We believe with a blend of console quality content, innovative monetization strategy, as well as our focus on long-term operations, we anticipate the game will secure a new position within the industry ecosystem. We are currently planning to further enhance our development process. The development process is on track now, and we will proceed with testing and launches as scheduled. When the time comes, we have further updates to share. Yeah, thank you. Operator, next question, please. Your next question comes from Jia Langshi with Nomura. ????William MD???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 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?

We believe with a blend of console quality content, innovative monetization strategy, as well as our focus on long-term operations, we anticipate the game will secure a new position within the industry ecosystem. We are currently planning to further enhance our development process. The development process is on track now, and we will proceed with testing and launches as scheduled. When the time comes, we have further updates to share. Yeah, thank you. Operator, next question, please.

Process is on track now.

We'll pursue was touching on launches are scheduled and.

Onetime comps for.

For the update to share.

Thank you.

Operator next question please.

Your next question comes from <unk> Shah with Nomura.

A latest update and play testing of Atlanta at the top of the game show, uh, which attracted significant attention on social media across the world. Uh, we need 1 of the most promising upcoming titles, uh, by the Japan game award 2025 future division. Uh, we believe with a blend of council quality content, Innovative monetization strategy, as well as our, uh, focus on long-term operations. Uh, we, we anticipate the, uh, the, the game will secure a new position within the industry ecosystem.

Like a Halloween MTR.

Got it.

Tony domain, two <unk> chemicals.

And not to continue.

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, uh, when the time comes, we have an update to share. Yeah.

Debbie changing in Salt Lake Utah.

Thank you.

Operator: Your next question comes from Jia Langshi with Nomura.

Operator next question, please.

On the counterpoint hospitals returns, yet, but what's your sort of.

Accounting guidance, how long you can assume that youll hear.

Your next question comes from J longi with neura.

Jialong Shi: ????William MD???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 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? If NetEase does not launch as many new games each year, what will be the growth driver for your online gaming business? Thank you.

Input producers coming younger kind of well when <unk> NAND Juanita Tate don't Youll hear within John but I think thats only a publisher somehow whats the design.

uh,

We noticed from media into the number of new games pipeline every year is smaller than in the past few years.

If our observation is correct just wonder why does your current strategy towards 19 lymphoma into the market and if that is does not announce at many new games each year, what will be the growth driver for your online gaming business. Thank you.

uh, bye.

Yeah.

With that uncertainty.

Okay.

Phase one I'm trying to say.

Eugene yield initiatives have been coming to work.

Bill Pang: If NetEase does not launch as many new games each year, what will be the growth driver for your online gaming business? Thank you. ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Okay, I will do the translation. The whole company will be very focused on our success products, and among the already success products, we'll keep refining and keep focusing. We don't want to distract too much focus onto chartering many new products which we don't have super confidence. For new projects, we'll look at new products more prudently and more focused, making sure that whatever new product we're building, it has its confidence power in the content market. We actually don't see this to contradict with each other. We believe being focused is one of the core competencies a company needs to have. That's our view. Thank you. Your next question.

So he is from all the time in EMEA, when we changed from Signor China Central.

The biology of the Queensland you need.

Um, we noted from media. It seems to us that the number of new games in your pipeline every year is smaller than in the past few years. Um, if our observation is correct, just wonder what is your current strategy towards 19 new games into the market. And if that is, uh, does not launch as many new games each year, what would be the growth driver for your online gaming business? Thank you.

Sure.

William Ding: ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Jake Bauer predominant she Michelle Kevin at the Xinjiang Phase two soon.

Uh,

Ramon <unk>.

<unk> time machine machine.

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Thanks, so much.

So you said that the supermarket.

uh,

What are the essentials.

Hey, Jonathan.

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Pushing the.

Sure.

Okay, I will do the trick.

<unk>.

The company will be very focused on our success products.

Among the already success product will keep refining and keep focusing on.

We don't want to distract too much focus I'll answer too.

For.

Two charter many many new product, which we don't have super confidence.

Bill Pang: Okay, I will do the translation. The whole company will be very focused on our success products, and among the already success products, we'll keep refining and keep focusing. We don't want to distract too much focus onto chartering many new products which we don't have super confidence. For new projects, we'll look at new products more prudently and more focused, making sure that whatever new product we're building, it has its confidence power in the content market. We actually don't see this to contradict with each other. We believe being focused is one of the core competencies a company needs to have. That's our view. Thank you.

For new product.

Okay, uh, I'll do the translation. Uh,

you know, uh,

We'll look at product more prudently and more.

More focus.

Making sure that whatever new product we're building it.

It is a confidence power in the continent.

Market, we actually don't see this to contradict which another we believe be the focus.

One of the.

Our core confidence a company need to have.

As all of you. Thank.

Thank you.

And our next next question please.

It comes from Felix Liu with UBS.

the company will be, uh, very focused on our success products and among the already success product, you know, will keep refining and keep keep focusing. Uh, we don't want to distract too much, you know, focus on on to, uh, to Charter many, many new products, which we don't have super confidence, uh, for new product. Uh, we will look at new product more prudently. And, uh, uh, more more focused, uh, making sure that whatever new product we're building, uh, it has, uh, its competence power, uh, in the constant.

Ladies and gentlemen.

Tissue claims they can call Felicia Gaiam Kendall.

Jim Scheel here, we'll go one each year.

Thank you Juan <unk>.

Market, we actually don't see this contributing. Uh, which another we believe, uh, being focused is, uh, is one of the, uh, uh, core competencies the company needs to have.

Operator: Your next question.

That's our view.

Thank you.

Operator: Next question, please. Comes from Felix Liu with UBS. ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Thank you, management, for taking my question. My question is on the recent news of organizational changes in your game department. Will these changes impact the near-term operations of the related games? How does management think about the current organizational structure under the context of your game strategy, and should we expect more changes to come? Thank you. ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????28??????????????????????????????????????????????????? Okay, I will do the translation. Regarding the recent adjustment and changes, it's part of the company's normal personnel turnover process, and that's been carried out without impacting daily operations of our game. That's rest assured. The adjustment is aiming to make the organization more focused and efficient, allowing us to keep concentrating on creating enduring, high-quality products. For example, for existing evergreen titles, we ask our teams to stay focused, continuously refining and optimizing the games.

Bill Pang: Next question, please.

Operator: Comes from Felix Liu with UBS.

So youll see us got it.

You know, our next question. Next question, please.

Felix Liu: ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Thank you, management, for taking my question. My question is on the recent news of organizational changes in your game department. Will these changes impact the near-term operations of the related games? How does management think about the current organizational structure under the context of your game strategy, and should we expect more changes to come? Thank you.

That's still achievable.

That's what his adult with Chipotle youll come toward the calgon.

Comes from Felix Leo with UBS.

Thank you management for taking my question. My question is on the recent organizational.

Organizational change.

Jim Department.

While these changes impact our near term operations related games, and how does management think about the current organizational structure.

And under the context of your game strategy and should we expect more changes to come. Thank you.

um,

Oh.

Sure.

Let me pick.

<unk> outcome of Hana.

Ladies and gentlemen.

You see the Jimmy I think Shimon.

This alone.

Congrats centric culture.

<unk>.

Thank you management for taking my question. Uh, my question is on the recent news of uh organizational change in your game department. Um well these changes impact the new term operations of the related games and how this 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.

<unk> Yoshida San changed that thinking.

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China in total.

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ah, uh, what

You may all come from a system to you. So you want to finish with our current data when we have done a short trip out to the long term.

While each lead Scania as our team continued to invest in some of the OPM hopefully by Q3 unchanged.

Touching sham.

In conjunction with the Chili's.

do you want?

Okay, I will do the translation.

According to the recent adjustment and changes it's a part of the company's normal personnel turnover process.

We carried out without impacting the operations overcame.

Just rest assured.

The adjustment is AA.

Aiming to make the operation more focused efficient.

Bill Pang: Okay, I will do the translation. Regarding the recent adjustment and changes, it's part of the company's normal personnel turnover process, and that's been carried out without impacting daily operations of our game. That's rest assured. The adjustment is aiming to make the organization more focused and efficient, allowing us to keep concentrating on creating enduring, high-quality products. For example, for existing evergreen titles, we ask our teams to stay focused, continuously refining and optimizing the games.

Allowing us to concentrate.

Keep concentrating on creating enduring a high quality product.

For example.

Our existing evergreen titles.

Our team to stay focused continuously refining and optimizing their games.

For new titles that show Evergreen potentials, we'll allocate sufficient resources to develop them into evergreen locking success.

Okay. Uh, I'll do the translation, um, regarding the recent adjustment and changes. Uh, it's it's a part of the company's normal Personnel, 10 hour process, and that's, uh, that's been carried out without impacting, uh, daily operations of our game. Uh, that's that's rest assured. Um, The Adjustment is aiming to make the operation more focused and efficient allowing us

Successful games.

However for <unk> that are not keeping pace with the market trends.

To concentrate, uh, keep concentrating on creating enduring, high-quality products.

User demand, we also must trim decisively to make sure a healthy development of our core initiatives.

Operator: For new titles that show evergreen potentials, we'll 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 a healthy development of our core initiatives. NetEase has been here 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. Your next question comes from Linking Kong with Goldman Sachs. ?????????????????????AI????????????????????????????????AI????????????????AI?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Thank you, management, for taking my question. My first question is about AI. We have actually seen some of the games like Anki Party or Sword of Justice Mobile have already integrated with AI applications.

For new titles that show evergreen potentials, we'll 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 a healthy development of our core initiatives. NetEase has been here 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.

Matt has been especially for 20 years, and our commitment to creating a high quality product has remained unchanged.

Uh, for example, the, uh, for existing Evergreen titles, uh, we ask our teams to stay focused continuously, uh, refining and optimizing the games.

Allocate more resources to evergreen titles.

Providing more opportunities to teams, who are accretive and waiting to innovate.

Thank you.

Operator next question please.

Your next question comes from linking Hong with Goldman Sachs.

Uh, for new titles that show evergreen potential, we will allocate sufficient resources to develop them into evergreen, long-lasting, uh, successful games. Um, however, for teams that are not keeping pace with market trends, uh, and user demands, uh, we also must trim decisively to ensure a healthy development of our, uh, co-initiatives.

Sure Glenn it's initial with Nomura.

<unk>.

Sure.

You cannot you should end up hopefully our initial Hudson you managing your Bousada suddenly Isom Gwen Asia Joshua.

<unk> consider each AISI women tissue yield associated with it.

Uh, Natives has been, you know, especially for 28 years. Uh, and our commitment to creating high-quality products has remained unchanged. We allocate more resources to Evergreen titles and provide more opportunities to TMS who are creative and waiting to innovate.

Operator: Your next question comes from Linking Kong with Goldman Sachs.

Thank you.

Operator next question, please.

<unk>, which is on the chip.

Lincoln Kong: ?????????????????????AI????????????????????????????????AI????????????????AI?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Thank you, management, for taking my question. My first question is about AI. We have actually seen some of the games like Anki Party or Sword of Justice Mobile have already integrated with AI applications.

From a mix issue.

Your next question comes from Lincoln Kong with Goldman Sachs.

Thank you Moshe initiated shelf apps.

Tara Hassan.

Jonathan <unk> of this year.

Telephonics CFO Michele.

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Choose option available.

Each of you in the <unk>.

Thank you management for taking my question. So my first question is about AI. So we have actually seen.

Some of the games like Yankee Party. Just this mobile has already integrated with applications. So going forward for our existing portfolio and our new games, how should we think about that can bring additional opportunities to our gamers.

And the second question is in terms of the future new games.

For.

Given that the company now focus more on quality.

Of those new games, so how should we think about the potential important game genre going forward.

Operator: Going forward, for our existing portfolio and the new games, how should we think about AI can bring additional opportunities to our gamers? The second question is in terms of the future new games. Given that the company now focuses more on quality of those new games, how should we think about the potential important game genre going forward? Specifically, for the shooting game genre, globally, I think we have seen a rapid growth. How would NetEase sort of differentiate ourselves in this shooting genre? Thank you. ??????AI???????????????????????????????????????????????????????????? ??AI??????????????????????????????????AI??????????????????????????AI????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Okay, I will do the translation. First of all, regarding the question on AI, we have been using AI in development, and AI is very important in game development and operation. We have accumulated tons of hands-on experience in this area.

Going forward, for our existing portfolio and the new games, how should we think about AI can bring additional opportunities to our gamers? The second question is in terms of the future new games. Given that the company now focuses more on quality of those new games, how should we think about the potential important game genre going forward? Specifically, for the shooting game genre, globally, I think we have seen a rapid growth. How would NetEase sort of differentiate ourselves in this shooting genre? Thank you.

Specifically for the shooting game genre globally, I think we have seen a rapid growth.

So how would you sort of differentiate yourself in this genre. Thank you.

Uh, thank you for taking my question. So my first question is about uh AI. Uh, so we have actually seen um some of the games like icky party or just a mobile has already integrated with AI applications. So going forward, uh, for our existing portfolio and a new games, how should we think about AI can bring additional uh, opportunities uh, to our Gamers? Um, and the second question is, in terms of the uh, future new games. Um,

Given that company now, focus more on quality uh, of those new games. Um, so how should we think about the potential important game genre going forward?

Thanks.

And as you point therefore to.

But obviously you have to begin with.

The new charter.

William Ding: ??????AI???????????????????????????????????????????????????????????? ??AI??????????????????????????????????AI??????????????????????????AI?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

They want to fund capital ratio dipped later would you there's alpha.

Specifically, um, like for the shooting game genre, uh, globally. I think we have seen a rapid growth. Um, so uh, how would the next set of uh, differentiate ourself uh, in this, uh, shooting genre. Thank you.

Okay.

Yes.

Yes, it will move.

Hi, Farquhar.

Yes.

Based on tenure.

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AI.

EMEA.

Closings for Neenah.

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Sure.

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<unk> come in.

Okay.

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Yes sure.

<unk>.

Chief Financial Officer.

Sure.

Treaties some of your own.

What does that set a floor.

Geographical talked laid out.

Thank you Sean.

Okay.

Yeah.

uh,

Thanks, Craig.

Sure.

Thank you.

Sure.

Hopefully not.

Download achieved.

Sure.

Anything soon.

Thanks.

Thank you Antonio.

Right.

I know you received from Samsung.

Jean.

<unk>.

So just on trade obviously, the shipping fail congrats.

So we see them.

EMEA.

Yes.

Okay.

Turning to Ccs.

Uh, have I share something?

Yes.

Okay.

Okay Altos translation.

First of all regarding the question.

Okay.

Hey, guys.

We have been using.

And development.

Yeah, it's very important in game development and operation and we have accumulated.

Bill Pang: Okay, I will do the translation. First of all, regarding the question on AI, we have been using AI in development, and AI is very important in game development and operation. We have accumulated tons of hands-on experience in this area.

Tons of time got it.

This area and compared especially compared to.

Many of our peer companies.

Okay, uh, translation. Uh, first of all, regarding the question on, uh,

From <unk>, we have more hands on experience in this area we have deployed.

Massive resources in the research of AI and how to use AI.

Uh, we have been using AI in development and, uh,

In the process can development innovation at operation.

Operator: Especially compared to many of our peer companies from overseas, we have more hands-on experience in this area. 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 guide us on how we should deploy technologies. We do not think we have time here today for the detailed specific user experience explanations. Regarding your next question on the future direction of product, as we explained, we will focus on concentrating resources on building really high-quality flagship products, the product that we have conviction on the success. We will not do aggressively, blindly open many products. That is not our direction. We will do focused, targeted approach to do new products.

Especially compared to many of our peer companies from overseas, we have more hands-on experience in this area. 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 guide us on how we should deploy technologies. We do not think we have time here today for the detailed specific user experience explanations.

Actually the user experience.

It's the best answer.

Two two.

To guide us on how we should deploy technologies.

<unk> technologies, but we don't think we have time here today for a detailed specific user experience.

Our exploration.

Regarding your next question on the future direction of product as we explained.

Yeah. It's very important uh in game development and and operation. And we have accumulated uh tons of time in this area and uh, compared especially compared uh to uh you know many of our uh peer companies uh from from overseas we have more hands-on experience in this area. We we have deployed uh massive resources in the research of AI and how to use AI uh, in the process of game development, Innovation and operation.

We'll focus on the.

Concentrating resources.

<unk> really high quality flagship products the <unk>.

<unk>.

We have.

<unk>.

Yes.

Conviction on the.

Regarding your next question on the future direction of product, as we explained, we will focus on concentrating resources on building really high-quality flagship products, the product that we have conviction on the success. We will not do aggressively, blindly open many products. That is not our direction. We will do focused, targeted approach to do new products.

August success.

Uh, actually the user experience, uh, is the best answer uh, to to to uh, to guide us on how we should deploy uh Technologies. Uh but we we don't think we have time, uh, here today for the detailed specific user experience uh uh explanations.

Want to.

Aggressively blindly opened many product thats not our production will be focused or will do focused targeted approach.

Regarding your next question on the future direction of our product, as we explained, we'll focus on the...

Two new.

Correct.

In the future coming years.

We believe that is.

Compared to most many other companies.

Our industry.

Globally.

One of the.

Companies Thats clear.

Clear vision on the future.

Theater products.

Operator: In the future coming years, we believe NetEase, 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. Your next question, Mr. Liu with Morgan Stanley. ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Let me translate 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 competitors for this game? And what NetEase can do to differentiate? Thank you. ????????????????????????????????????????????????????????????????????PC???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Okay, I will do the translation. First of all, the Sea of Remnant is a very important product to us. We focus on that very much.

In the future coming years, we believe NetEase, 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.

We will make.

Grant breakthroughs.

Thank you.

Operator next question. Please your next question.

Leann.

With Morgan Stanley <unk>.

Concentrating, resources, um, um, building really high quality Flagship products, uh, the product that, uh, uh, we have, uh, uh, convinced, uh, uh, conviction on the, uh, on the success. Uh, we want to do, you know, uh, aggressively blindly open many products. That's, that's not our. Our direction will be, uh, focused on FOC, will will do focused targeted approach, uh, to the new Pro product, and in the future coming years. Uh, we believe, uh, net is, uh, compared to most many other companies in in our industry, uh, globally. Uh, we're 1 of the, uh, uh,

So anytime.

Anytime you.

<unk>.

The wound tissue Clay you answer hydropower Yoshida.

Uh, companies that has Clear Vision on the uh, future Innovations, future products, and we will make, uh, ground break rules.

Number one in Guangzhou, China clients.

Operator: Your next question, Mr. Liu with Morgan Stanley.

Yes, if I can do usually there's always answered yet.

Thank you. Uh, operator, next question, please.

Your next question is.

Oh sure.

Yes.

As you should be on the 30th homeless annual mill P. J.

Yang Liu: ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Let me translate 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 competitors for this game? And what NetEase can do to differentiate? Thank you.

With Morgan Stanley.

The whole team.

Looking towards how you want.

Let me translate my question. My question is about the sea of remnant this a new game.

<unk> this year about.

R&D development and expected launch timing and what will be the commercial strategy for this title.

Is there any direct peers or competitor for this game.

Net east can do to differentiate thank you.

Well, maybe you answer some of your wishes.

Yeah, uh, let me translate my question. Uh, my question is about the Sea of Remnant. This new game, could management share about the, uh...

So you answer.

Tycho so EMEA yield please.

Yes.

Yeah.

So the Aoc tayo.

<unk> E <unk>.

However, when the <unk>.

Melissa you created some PC dinosaur.

William Ding: ????????????????????????????????????????????????????????????????????PC????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Bill Pang: Okay, I will do the translation. First of all, the Sea of Remnant 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. The game is built on our self-developed game engine to 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.

You bet.

Expected, uh, 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, uh, uh, Native can do to differentiate? Thank you.

So that's it.

Youll see that <unk>.

One fact that needle.

Which actually will face unchanged to that Jason.

Wish I can tell you.

What are you seeing there.

Since you're there.

For me.

To me that doses.

Yes.

This is al.

Hello.

Hi.

How much of it yet.

Well thats helpful for the tree, so let's see it.

Yes.

Okay.

Hi, Sean agenda.

Tissue.

Oh.

Okay, I will do the translation.

First of all the <unk>.

Very important product to us.

We focus on that very much.

The team Barry reached development and operational experience in the company.

And the game is viewed ourself.

Develop game changing or support both PC mobile and cargo as well.

On the detailed game play I'm confident we.

Okay, I will do the transaction. Um,

We believe we have a clear decisions on how to do that we believe is going to be a fresh experience in the markets.

Operator: The team has very rich development and operation experience in the company. The game is built on our self-developed game engine to 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 salient 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. That concludes the question and answer session. I would like to turn the conference back over to Brandi Piacente for any additional or closing remarks. Thank you once again for joining us today.

Going to be a multi character cultivation kind of tight but not.

The traditional.

Wait.

The the selling experience.

On the ocean as well as the.

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 salient 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.

Reached combination between characters and cautious we believe it will bring a fresh.

And the experienced.

Ocean experience to the gamers.

Thank you.

And that concludes the question and answer session I would like to see.

The conference back over to Brandi piacente for any additional or closing remarks.

Thank you once again for joining us today, if you have any further questions. Please feel free to contact us directly and have a great day. Thank you.

first of all, the, uh, sea of relevance is, uh, uh, very important product to us. Uh, we, we, we focus on that that very much the, uh, the team is very rich development and operation experience in the company, uh, and the game is built on our self uh developed game engine for support both PC, uh, mobile and console as well, uh, on the detailed gameplay and content. Uh, we believe we have a clear decisions on how to do that. We believe it's going to be a, a fresh experience in, in the market. Uh, it's going to be a multi character cultivation kind of, uh, type. Uh, but not the, uh, the traditional, uh, way, uh, the, uh, the the, uh, setting experience, uh, on the, on the ocean, as well as the, uh, uh, uh, Rich combination, uh, between characters and classes. Uh, we believe it will bring a fresh, uh, un unexperienced. Uh, uh, ocean experience to the game.

Thank you.

Operator: That concludes the question and answer session. I would like to turn the conference back over to Brandi Piacente for any additional or closing remarks.

Brandi Piacente: Thank you once again for joining us today.

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

Operator: If you have any further questions, please feel free to contact us directly. Have a great day. Thank you.

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

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.

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