6-K
NetEase, Inc. (NTES)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of November 2025
Commission File Number: 000-30666
NETEASE, INC.
NetEase Building, No. 599 Wangshang Road
Binjiang District, Hangzhou, 310052
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Exhibit
Exhibit 99.1 - NetEase Reports Third Quarter 2025 Unaudited Financial Results
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| NETEASE, INC. | |
|---|---|
| By: | /s/ William Lei Ding |
| Name: | William Lei Ding |
| Title: | Chief Executive Officer |
Date: November 20, 2025
Exhibit 99.1
Contact for Media and Investors:
Email: ir@service.netease.com
Tel: (+86) 571-8985-3378
NetEase Announces****Third Quarter 2025 Unaudited Financial Results
Hangzhou, China, November 20, 2025 - NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, “NetEase” or the “Company”), a leading internet and game services provider, today announced its unaudited financial results for the third quarter ended September 30, 2025.
Third Quarter****2025 Financial Highlights
| · | Net revenues were RMB28.4 billion (US$4.0 billion),<br>an increase of 8.2% compared with the same quarter of 2024. |
|---|---|
| · | Games and related value-added services net revenues<br>were RMB23.3 billion (US$3.3 billion), an increase of 11.8% compared with the same quarter of 2024. |
| --- | --- |
| · | Youdao net revenues were RMB1.6 billion (US$228.8<br>million), an increase of 3.6% compared with the same quarter of 2024. |
| --- | --- |
| · | NetEase Cloud Music net revenues were RMB2.0<br>billion (US$275.9 million), a decrease of 1.8% compared with the same quarter of 2024. |
| --- | --- |
| · | Innovative businesses and others net revenues<br>were RMB1.4 billion (US$202.1 million), a decrease of 18.9% compared with the same quarter of 2024. |
| --- | --- |
| · | Gross profit was RMB18.2 billion (US$2.6 billion),<br>an increase of 10.3% compared with the same quarter of 2024. |
| --- | --- |
| · | Total operating expenses were RMB10.2 billion<br>(US$1.4 billion), an increase of 8.9% compared with the same quarter of 2024. |
| --- | --- |
| · | Net income attributable to the Company’s<br>shareholders was RMB8.6 billion (US$1.2 billion). Non-GAAP net income attributable to the Company’s shareholders was RMB9.5 billion<br>(US$1.3 billion).^[1]^ |
| --- | --- |
| · | Basic net income per share was US$0.38 (US$1.90<br>per ADS). Non-GAAP basic net income per share was US$0.42 (US$2.09 per ADS).^[1]^ |
| --- | --- |
^[1]^ As used in this announcement, non-GAAP net income attributable to the Company’s shareholders and non-GAAP basic and diluted net income per share and per ADS are defined to exclude share-based compensation expenses. See the unaudited reconciliation of GAAP and non-GAAP results at the end of this announcement.
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Third Quarter 2025 and Recent Operational Highlights
| · | Showcased strong long-term operating capabilities<br>with enduring player engagement across well-established titles. Notably, Fantasy Westward Journey Online achieved four successive<br>record peak concurrent player counts since the third quarter, reaching a height of 3.58 million. Multiple established titles strengthened<br>player appeal through innovative gameplay updates and crossover synergy events, including Fantasy Westward Journey mobile game, IdentityV, Eggy Party, Sword of Justice and Where Winds Meet. |
|---|---|
| · | Strengthened the global portfolio and pipeline<br>with new games across a variety of genres: |
| --- | --- |
| · | Destiny: Rising topped the iOS download<br>chart in multiple regions across Western markets with its August 28 global launch, as well as in China with its October 16 domestic<br>launch. |
| --- | --- |
| · | ANANTA sparked substantial enthusiasm<br>with its brand-new experience at Tokyo Games Show 2025’s playtesting session. |
| --- | --- |
| · | Sword of Justice and Where Winds Meethit global markets on November 7 and 14, respectively, bringing captivating, distinctive Wuxia worlds to players everywhere. |
| --- | --- |
| · | Sea of Remnants is advancing steadily<br>toward its planned 2026 launch. |
| --- | --- |
| · | Blizzard titles continued to deliver enhanced<br>experiences to Chinese players. World of Warcraft launched the long-awaited, China-exclusive Titan Reforged Server on November 18,<br>igniting strong enthusiasm among local players. Diablo II: Resurrected returned to China on August 27, followed by StarCraftII on October 28, while Diablo IV is scheduled to launch on December 12, to deliver another exceptional experience<br>to players in China. |
| --- | --- |
“We delivered another quarter of solid execution, underscoring our healthy growth in China and rising global appeal,” said Mr. William Ding, Chief Executive Officer and Director of NetEase. “Over the years, we have honed our innovation capabilities and proven them title after title by delivering exceptional gaming experiences. This edge has afforded us a strong domestic foundation to extend our distinctive, sophisticated games to players worldwide.
“User experience remains the heart of our value system as we look to raise the bar for creativity and tech-inspired games while enriching and expanding our vibrant player community. Through close collaboration with partners and top talent around the world, we aim to create even greater value for players and sustain our momentum across markets,” Mr. Ding concluded.
2
Third Quarter****2025 Financial Results
Net Revenues
Net revenues for the third quarter of 2025 were RMB28.4 billion (US$4.0 billion), compared with RMB27.9 billion and RMB26.2 billion for the preceding quarter and the same quarter of 2024, respectively.
Net revenues from games and related value-added services were RMB23.3 billion (US$3.3 billion) for the third quarter of 2025, compared with RMB22.8 billion and RMB20.9 billion for the preceding quarter and the same quarter of 2024, respectively. Net revenues from the operation of online games accounted for approximately 97.6% of the segment’s net revenues for the third quarter of 2025, compared with 97.1% and 96.8% for the preceding quarter and the same quarter of 2024, respectively. The quarter-over-quarter increase in online games net revenues 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 revenues from self-developed games such as FantasyWestward Journey Online, Eggy Party and newly-launched Where Winds Meet and Marvel Rivals, as well as certain licensed games.
Net revenues from Youdao were RMB1.6 billion (US$228.8 million) for the third quarter of 2025, compared with RMB1.4 billion and RMB1.6 billion for the preceding quarter and the same quarter of 2024. The quarter-over-quarter increase was due to increased net revenues from its smart devices and online marketing services.
Net revenues from NetEase Cloud Music were RMB2.0 billion (US$275.9 million) for the third quarter of 2025, compared with RMB2.0 billion each for the preceding quarter and the same quarter of 2024.
Net revenues from innovative businesses and others were RMB1.4 billion (US$202.1 million) for the third quarter of 2025, compared with RMB1.7 billion and RMB1.8 billion for the preceding quarter and the same quarter of 2024, respectively. Results from this segment were mainly driven by net revenues from Yanxuan, advertising services and other value-added services, as well as certain inter-segment transaction eliminations. The quarter-over-quarter decrease was led by decreased net revenues from Yanxuan. The year-over-year decrease reflected an increase in certain inter-segment transaction elimination and, to a lesser extent, decreased net revenues from Yanxuan and certain other businesses.
Cost of Revenues
Cost of revenues for the third quarter of 2025 was RMB10.2 billion (US$1.4 billion), compared with RMB9.8 billion and RMB9.7 billion for the preceding quarter and the same quarter of 2024, respectively. Staff-related costs, revenue sharing costs and royalties for licensed games increased quarter-over-quarter and year-over-year.
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Gross Profit
Gross profit for the third quarter of 2025 was RMB18.2 billion (US$2.6 billion), compared with RMB18.1 billion and RMB16.5 billion for the preceding quarter and the same quarter of 2024, respectively.
Operating Expenses
Total operating expenses for the third quarter of 2025 were RMB10.2 billion (US$1.4 billion), compared with RMB9.0 billion and RMB9.3 billion for the preceding quarter and the same quarter of 2024, respectively. The quarter-over-quarter and year-over-year increases were primarily due to increased marketing expenditures related to online games.
Other Income/(Expenses)
Other income/(expenses) consisted of investment income, interest income, net exchange losses/(gains) and others. The quarter-over-quarter increase was mainly due to fair value changes of equity security investments in the third quarter of 2025. The year-over-year increase was primarily due to fair value changes of equity security investments and lower net exchange losses in the third quarter of 2025, compared with the same quarter of 2024.
Income Tax
The Company recorded a net income tax charge of RMB1.3 billion (US$184.9 million) for the third quarter of 2025, compared with RMB1.6 billion and RMB1.3 billion for the preceding quarter and the same quarter of 2024, respectively. The effective tax rate for the third quarter of 2025 was 13.0%, compared with 14.7% and 16.1% for the preceding quarter and the same quarter of 2024, respectively. The effective tax rate represents certain estimates by the Company as to the tax obligations and benefits applicable to it in each quarter.
Net Income and Non-GAAP Net Income
Net income attributable to the Company’s shareholders totaled RMB8.6 billion (US$1.2 billion) for the third quarter of 2025, compared with RMB8.6 billion and RMB6.5 billion for the preceding quarter and the same quarter of 2024, respectively.
Basic net income was US$0.38 per share (US$1.90 per ADS) for the third quarter of 2025, compared with US$0.38 per share (US$1.89 per ADS) and US$0.29 per share (US$1.44 per ADS) for the preceding quarter and the same quarter of 2024, respectively.
Non-GAAP net income attributable to the Company’s shareholders totaled RMB9.5 billion (US$1.3 billion) for the third quarter of 2025, compared with RMB9.5 billion and RMB7.5 billion for the preceding quarter and the same quarter of 2024, respectively.
4
Non-GAAP basic net income was US$0.42 per share (US$2.09 per ADS) for the third quarter of 2025, compared with US$0.42 per share (US$2.10 per ADS) and US$0.33 per share (US$1.65 per ADS) for the preceding quarter and the same quarter of 2024, respectively.
Other Financial Information
As of September 30, 2025, the Company’s net cash (total cash and cash equivalents, current and non-current time deposits and restricted cash, as well as short-term investments balance, minus short-term and long-term loans) totaled RMB153.2 billion (US$21.5 billion), compared with RMB131.5 billion as of December 31, 2024. Net cash provided by operating activities was RMB12.9 billion (US$1.8 billion) for the third quarter of 2025, compared with RMB10.9 billion and RMB10.6 billion for the preceding quarter and the third quarter of 2024, respectively.
Quarterly****Dividend
The board of directors approved a dividend of US$0.1140 per share (US$0.5700 per ADS) for the third quarter of 2025 to holders of ordinary shares and holders of ADSs as of the close of business on December 5, 2025, Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars. For holders of ordinary shares, in order to qualify for the dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company’s Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17^th^ Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong, no later than 4:30 p.m. on December 5, 2025 (Beijing/Hong Kong Time). The payment date is expected to be December 16, 2025 for holders of ordinary shares and on or around December 19, 2025, for holders of ADSs.
NetEase paid a dividend of US$0.1140 per share (US$0.5700 per ADS) for the second quarter of 2025 in September 2025.
Under the Company’s current dividend policy, the determination to make dividend distributions and the amount of such distribution in any particular quarter will be made at the discretion of its board of directors and will be based upon the Company’s operations and earnings, cash flow, financial condition and other relevant factors.
Share Repurchase Program
The Company announced today that its previously approved share repurchase program of up to US$5.0 billion of the Company’s ADSs and ordinary shares in open market or other transactions will be extended for an additional 36 months until January 9, 2029. As of September 30, 2025, approximately 22.1 million ADSs had been repurchased under this program for a total cost of US$2.0 billion.
5
The extent to which NetEase repurchases its ADSs and its ordinary shares depends upon a variety of factors, including market conditions. These programs may be suspended or discontinued at any time.
** The United States dollar (US$) amounts disclosed in this announcement are presented solely for the convenience of the reader. The percentages stated are calculated based on RMB.
Conference Call
NetEase’s management team will host a teleconference call with a simultaneous webcast at 7:00 a.m. Eastern Time on Thursday, November 20, 2025 (Beijing/Hong Kong Time: 8:00 p.m., Thursday, November 20, 2025). NetEase’s management will be on the call to discuss the quarterly results and answer questions.
Interested parties may participate in the conference call by dialing 1-914-202-3258 and providing conference ID: 10051135, 15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-855-883-1031 and entering PIN: 10051135. The replay will be available through November 27, 2025.
This call will be webcast live and the replay will be available for 12 months. Both will be available on NetEase’s Investor Relations website at http://ir.netease.com/.
About NetEase, Inc.
NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, “NetEase”) is a leading internet and game services provider centered around premium content. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of the most popular and longest-running mobile and PC games available in China and globally.
Powered by one of the largest in-house game R&D teams focused on mobile, PC and console, NetEase creates superior gaming experiences, inspires players, and passionately delivers value for its thriving community worldwide. By infusing play with culture, and education with technology, NetEase transforms gaming into a meaningful vehicle to build a more entertaining and enlightened world.
Beyond games, NetEase service offerings include its majority-controlled subsidiaries Youdao (NYSE: DAO), an intelligent learning and advertising solutions provider, and NetEase Cloud Music (HKEX: 9899), a well-known online music platform featuring a vibrant content community, as well as Yanxuan, NetEase’s private-label consumer lifestyle brand.
For more information, please visit: http://ir.netease.com/.
6
Forward Looking Statements
This announcement contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar expressions. In addition, statements that are not historical facts, including statements about NetEase’s strategies and business plans, its expectations regarding the growth of its business and its revenue and the quotations from management in this announcement are or contain forward-looking statements. NetEase may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that the online games market will not continue to grow or that NetEase will not be able to maintain its position in that market in China or globally; risks associated with NetEase’s business and operating strategies and its ability to implement such strategies; NetEase’s ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; potential changes in regulatory environment in the markets where NetEase operates; the risk that NetEase may not be able to continuously develop new and creative online services or that NetEase will not be able to set, or follow in a timely manner, trends in the market; risks related to evolving economic cycles and geopolitical tensions, including the direct or indirect impacts of national trade, investment, protectionist, tax or other laws or policies as well as export controls and economic or trade sanctions; risks related to the expansion of NetEase’s businesses and operations internationally; risks associated with cybersecurity threats or incidents; and fluctuations in foreign currency exchange rates that could adversely affect NetEase's business and financial results. Further information regarding these and other risks is included in NetEase’s filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. NetEase does not undertake any obligation to update this forward-looking information, except as required under applicable law.
7
Non-GAAP Financial Measures
NetEase considers and uses non-GAAP financial measures, such as non-GAAP net income attributable to the Company’s shareholders and non-GAAP basic and diluted net income per ADS and per share, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
NetEase defines non-GAAP net income attributable to the Company’s shareholders as net income attributable to the Company’s shareholders excluding share-based compensation expenses. Non-GAAP net income attributable to the Company’s shareholders enables NetEase’s management to assess its operating results without considering the impact of share-based compensation expenses. NetEase believes that this non-GAAP financial measure provides useful information to investors in understanding and evaluating the Company’s current operating performance and prospects in the same manner as management does, if they so choose. NetEase also believes that the use of this non-GAAP financial measure facilitates investors’ assessment of its operating performance.
Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP net income attributable to the Company’s shareholders is that it does not reflect all items of expense/ income that affect our operations. Share-based compensation expenses have been and may continue to be incurred in NetEase’s business and are not reflected in the presentation of non-GAAP net income attributable to the Company’s shareholders. In addition, the non-GAAP financial measures NetEase uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited.
NetEase compensates for these limitations by reconciling non-GAAP net income attributable to the Company’s shareholders to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. See the unaudited reconciliation of GAAP and non-GAAP results at the end of this announcement. NetEase encourages you to review its financial information in its entirety and not rely on a single financial measure.
8
NETEASE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| December 31, | September 30, | September 30, | |||
|---|---|---|---|---|---|
| 2024 | 2025 | 2025 | |||
| RMB | RMB | (Note 1) | |||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | 51,383,310 | 31,326,752 | |||
| Time deposits | 75,441,355 | 93,551,844 | |||
| Restricted cash | 3,086,405 | 8,654,295 | |||
| Accounts receivable, net | 5,669,027 | 5,962,060 | |||
| Inventories | 571,548 | 637,325 | |||
| Prepayments and other current assets, net | 6,416,868 | 6,863,085 | |||
| Short-term investments | 10,756,143 | 24,214,436 | |||
| Total current assets | 153,324,656 | 171,209,797 | |||
| Non-current assets: | |||||
| Property, equipment and software, net | 8,520,101 | 8,517,182 | |||
| Land use rights, net | 4,172,465 | 4,078,719 | |||
| Deferred tax assets | 1,113,435 | 2,612,046 | |||
| Time deposits | 3,025,000 | 2,845,000 | |||
| Restricted cash | 5,208 | 3,900 | |||
| Other long-term assets | 25,830,685 | 25,222,219 | |||
| Total non-current assets | 42,666,894 | 43,279,066 | |||
| Total assets | 195,991,550 | 214,488,863 | |||
| Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity | |||||
| Current liabilities: | |||||
| Accounts payable | 720,549 | 718,393 | |||
| Salary and welfare payables | 4,683,009 | 3,004,519 | |||
| Taxes payable | 2,759,185 | 4,312,685 | |||
| Short-term loans | 11,805,051 | 7,349,967 | |||
| Contract liabilities | 15,299,222 | 19,473,595 | |||
| Accrued liabilities and other payables | 14,400,641 | 15,229,406 | |||
| Total current liabilities | 49,667,657 | 50,088,565 | |||
| Non-current liabilities: | |||||
| Deferred tax liabilities | 2,173,117 | 2,212,733 | |||
| Long-term loans | 427,997 | - | |||
| Other long-term liabilities | 1,228,641 | 1,255,583 | |||
| Total non-current liabilities | 3,829,755 | 3,468,316 | |||
| Total liabilities | 53,497,412 | 53,556,881 | |||
| Redeemable noncontrolling interests | 84,272 | 89,465 | |||
| NetEase,Inc.’s shareholders’ equity | 138,685,606 | 156,256,172 | |||
| Noncontrolling interests | 3,724,260 | 4,586,345 | |||
| Total equity | 142,409,866 | 160,842,517 | |||
| Total liabilities, redeemable noncontrolling interests and shareholders’ equity | 195,991,550 | 214,488,863 |
All values are in US Dollars.
The accompanying notes are an integral part of this announcement.
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NETEASE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data or per ADS data)
| Three<br> Months Ended | Nine<br> Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||
| 2024 | 2025 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||
| RMB | RMB | RMB | (Note 1) | RMB | RMB | (Note 1) | ||||||
| Net revenues | 26,209,879 | 27,891,664 | 28,358,625 | 3,983,512 | 78,547,425 | 85,078,834 | 11,950,953 | |||||
| Cost of revenues | (9,733,274 | ) | (9,839,182 | ) | (10,181,020 | ) | (1,430,119 | (29,012,682 | ) | (30,369,341 | ) | (4,265,956 |
| Gross<br> profit | 16,476,605 | 18,052,482 | 18,177,605 | 2,553,393 | 49,534,743 | 54,709,493 | 7,684,997 | |||||
| Operating expenses: | ||||||||||||
| Selling and marketing expenses | (3,805,071 | ) | (3,578,174 | ) | (4,457,675 | ) | (626,166 | (11,329,012 | ) | (10,731,446 | ) | (1,507,437 |
| General and administrative expenses | (1,100,328 | ) | (1,056,578 | ) | (1,164,573 | ) | (163,587 | (3,388,244 | ) | (3,177,488 | ) | (446,339 |
| Research<br> and development expenses | (4,424,469 | ) | (4,356,646 | ) | (4,541,891 | ) | (637,996 | (13,054,944 | ) | (13,284,850 | ) | (1,866,112 |
| Total operating<br> expenses | (9,329,868 | ) | (8,991,398 | ) | (10,164,139 | ) | (1,427,749 | (27,772,200 | ) | (27,193,784 | ) | (3,819,888 |
| Operating<br> profit | 7,146,737 | 9,061,084 | 8,013,466 | 1,125,644 | 21,762,543 | 27,515,709 | 3,865,109 | |||||
| Other income/(expenses): | ||||||||||||
| Investment income, net | 578,398 | 328,444 | 1,379,402 | 193,763 | 861,363 | 2,400,597 | 337,210 | |||||
| Interest income, net | 1,282,766 | 953,490 | 936,706 | 131,578 | 3,746,582 | 2,951,082 | 414,536 | |||||
| Exchange (losses)/gains, net | (1,055,518 | ) | 114,037 | (373,812 | ) | (52,509 | (1,279,882 | ) | (257,972 | ) | (36,237 | |
| Other, net | 43,600 | 192,167 | 153,198 | 21,520 | 323,182 | 600,680 | 84,377 | |||||
| Income before tax | 7,995,983 | 10,649,222 | 10,108,960 | 1,419,996 | 25,413,788 | 33,210,096 | 4,664,995 | |||||
| Income tax | (1,289,545 | ) | (1,560,757 | ) | (1,316,356 | ) | (184,907 | (4,076,394 | ) | (4,782,256 | ) | (671,760 |
| Net income | 6,706,438 | 9,088,465 | 8,792,604 | 1,235,089 | 21,337,394 | 28,427,840 | 3,993,235 | |||||
| Accretion of redeemable noncontrolling<br> interests | (962 | ) | (1,051 | ) | (1,044 | ) | (147 | (2,880 | ) | (3,144 | ) | (442 |
| Net income<br> attributable to noncontrolling interests and redeemable noncontrolling interests | (167,041 | ) | (486,404 | ) | (175,883 | ) | (24,706 | (403,384 | ) | (906,852 | ) | (127,385 |
| Net<br> income attributable to the Company’s shareholders | 6,538,435 | 8,601,010 | 8,615,677 | 1,210,236 | 20,931,130 | 27,517,844 | 3,865,408 | |||||
| Net income per share * | ||||||||||||
| Basic | 2.04 | 2.70 | 2.70 | 0.38 | 6.52 | 8.64 | 1.21 | |||||
| Diluted | 2.03 | 2.67 | 2.67 | 0.38 | 6.46 | 8.55 | 1.20 | |||||
| Net income per ADS * | ||||||||||||
| Basic | 10.22 | 13.49 | 13.50 | 1.90 | 32.61 | 43.20 | 6.07 | |||||
| Diluted | 10.14 | 13.36 | 13.36 | 1.88 | 32.30 | 42.77 | 6.01 | |||||
| Weighted average number of ordinary shares<br> used in calculating net income per share * | ||||||||||||
| Basic | 3,198,646 | 3,188,634 | 3,191,231 | 3,191,231 | 3,209,298 | 3,184,651 | 3,184,651 | |||||
| Diluted | 3,224,110 | 3,214,681 | 3,223,497 | 3,223,497 | 3,238,834 | 3,214,910 | 3,214,910 |
All values are in US Dollars.
* Each ADS represents five ordinary shares.
The accompanying notes are an integral part of this announcement.
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NETEASE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Three<br> Months Ended | Nine<br> Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||
| 2024 | 2025 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||
| RMB | RMB | RMB | (Note 1) | RMB | RMB | (Note 1) | ||||||
| Cash flows from operating<br> activities: | ||||||||||||
| Net income | 6,706,438 | 9,088,465 | 8,792,604 | 1,235,089 | 21,337,394 | 28,427,840 | 3,993,235 | |||||
| Adjustments to reconcile net income<br> to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 520,567 | 428,427 | 617,872 | 86,792 | 1,720,447 | 1,527,060 | 214,505 | |||||
| Fair value changes of equity security,<br> other investments and financial instruments | (824,608 | ) | 55,715 | (1,965,526 | ) | (276,096 | (1,200,753 | ) | (2,468,310 | ) | (346,721 | |
| Impairment losses on investments | 529,668 | 161,463 | 1,616,146 | 227,019 | 868,826 | 1,866,680 | 262,211 | |||||
| Fair value changes of short-term<br> investments | (100,071 | ) | (344,604 | ) | (278,636 | ) | (39,140 | (289,176 | ) | (824,849 | ) | (115,866 |
| Share-based compensation cost | 978,139 | 946,395 | 902,201 | 126,732 | 2,951,495 | 2,800,468 | 393,379 | |||||
| Allowance for expected credit<br> losses | 36,022 | 153,179 | 180,085 | 25,296 | 56,903 | 350,035 | 49,169 | |||||
| (Gains)/losses on disposal of<br> property, equipment and software | (2,920 | ) | (30,920 | ) | 404 | 57 | (1,114 | ) | (10,223 | ) | (1,436 | |
| Unrealized exchange losses/(gains) | 1,050,644 | (165,662 | ) | 368,559 | 51,771 | 823,824 | 174,444 | 24,504 | ||||
| Gains on disposal of long-term<br> investments, business, subsidiaries and other financial instruments | (118,046 | ) | (141,078 | ) | (38,072 | ) | (5,348 | (272,647 | ) | (167,475 | ) | (23,525 |
| Deferred income taxes | 711,639 | (853,764 | ) | (933,553 | ) | (131,135 | (83,383 | ) | (1,459,045 | ) | (204,951 | |
| Share of results on equity method<br> investees | (28,466 | ) | 13,479 | 1,389,265 | 195,149 | 175,005 | 1,384,076 | 194,420 | ||||
| Changes in operating assets and<br> liabilities: | ||||||||||||
| Accounts receivable | 146,758 | 953,295 | (194,823 | ) | (27,367 | 198,525 | (330,488 | ) | (46,423 | |||
| Inventories | (39,285 | ) | (73,944 | ) | (45,582 | ) | (6,403 | 81,645 | (65,753 | ) | (9,236 | |
| Prepayments and other assets | (1,234,390 | ) | 583,484 | (889,519 | ) | (124,950 | (377,394 | ) | (601,213 | ) | (84,452 | |
| Accounts payable | 6,316 | 119,644 | 16,042 | 2,253 | (127,547 | ) | (12,390 | ) | (1,740 | |||
| Salary and welfare payables | (670,750 | ) | 920,662 | (566,362 | ) | (79,556 | (1,970,300 | ) | (1,730,811 | ) | (243,126 | |
| Taxes payable | 224,015 | (764,372 | ) | 517,353 | 72,672 | 33,137 | 1,549,104 | 217,601 | ||||
| Contract liabilities | 1,928,060 | (718,719 | ) | 2,579,424 | 362,330 | 2,231,822 | 4,386,903 | 616,225 | ||||
| Accrued liabilities<br> and other payables | 755,882 | 530,718 | 880,072 | 123,623 | 507,904 | 1,120,416 | 157,383 | |||||
| Net cash<br> provided by operating activities | 10,575,612 | 10,861,863 | 12,947,954 | 1,818,788 | 26,664,613 | 35,916,469 | 5,045,156 | |||||
| Cash flows from investing<br> activities: | ||||||||||||
| Purchase of property, equipment<br> and software | (379,520 | ) | (189,842 | ) | (283,645 | ) | (39,843 | (963,418 | ) | (927,558 | ) | (130,293 |
| Proceeds from sale of property,<br> equipment and software | 1,072 | 21,499 | 1,261 | 177 | 5,238 | 24,096 | 3,385 | |||||
| Purchase of intangible assets,<br> content and licensed copyrights | (222,247 | ) | (313,349 | ) | (190,983 | ) | (26,827 | (810,601 | ) | (803,103 | ) | (112,811 |
| Net changes of short-term investments<br> with terms of three months or less | 1,585,395 | 776,428 | (1,111,376 | ) | (156,114 | (4,207,245 | ) | (6,473,504 | ) | (909,328 | ||
| Purchase of short-term investments<br> with terms over three months | (3,675,000 | ) | (5,800,000 | ) | (7,270,000 | ) | (1,021,211 | (3,675,000 | ) | (16,040,000 | ) | (2,253,126 |
| Proceeds from maturities of short-term<br> investments with terms over three months | - | 5,745,454 | 1,426,005 | 200,310 | - | 9,880,060 | 1,387,844 | |||||
| Investment in long-term investments<br> and acquisition of subsidiaries | (226,086 | ) | (2,741,641 | ) | (95,169 | ) | (13,368 | (901,340 | ) | (2,927,776 | ) | (411,262 |
| Proceeds from disposal of long-term<br> investments, businesses, subsidiaries and other financial instruments | 1,541,338 | 784,855 | 1,554,537 | 218,365 | 2,467,443 | 2,416,820 | 339,489 | |||||
| Placement/rollover of matured<br> time deposits | (36,766,094 | ) | (27,980,605 | ) | (49,326,969 | ) | (6,928,918 | (133,100,536 | ) | (126,909,381 | ) | (17,826,855 |
| Proceeds from maturities of time<br> deposits | 37,546,192 | 33,617,510 | 30,600,384 | 4,298,410 | 138,806,413 | 108,144,376 | 15,190,950 | |||||
| Change in<br> other long-term assets | (125,911 | ) | (27,367 | ) | 75,342 | 10,583 | (333,079 | ) | 47,297 | 6,644 | ||
| Net cash<br> (used in)/provided by investing activities | (720,861 | ) | 3,892,942 | (24,620,613 | ) | (3,458,436 | (2,712,125 | ) | (33,568,673 | ) | (4,715,363 | |
| Cash flows from financing<br> activities: | ||||||||||||
| Net changes from loans with terms<br> of three months or less | (4,778,301 | ) | 2,017,570 | 536,886 | 75,416 | (7,263,080 | ) | 300,041 | 42,146 | |||
| Proceeds of loans with terms over<br> three months | 5,395,810 | 1,231,000 | 1,481,550 | 208,112 | 13,463,080 | 5,460,100 | 766,976 | |||||
| Payment of loans with terms over<br> three months | (3,100,520 | ) | (1,804,730 | ) | (5,879,605 | ) | (825,903 | (14,739,347 | ) | (10,620,012 | ) | (1,491,784 |
| Net<br> amounts (paid)/received related to repurchase of or capital contribution from noncontrolling interests shareholders | (8,394 | ) | 42,400 | 18,072 | 2,539 | 84,392 | 102,989 | 14,467 | ||||
| Net<br> amount (paid)/received related to repurchase of NetEase’s ADSs/purchase of subsidiaries’ ADSs and shares | (3,994,212 | ) | (355,563 | ) | 35,227 | 4,948 | (7,235,022 | ) | (623,937 | ) | (87,644 | |
| Dividends<br> paid to NetEase’s shareholders | (1,972,928 | ) | (3,082,122 | ) | (2,583,740 | ) | (362,936 | (9,182,743 | ) | (11,250,394 | ) | (1,580,333 |
| Net<br> cash used in financing activities | (8,458,545 | ) | (1,951,445 | ) | (6,391,610 | ) | (897,824 | (24,872,720 | ) | (16,631,213 | ) | (2,336,172 |
| Effect of<br> exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies | (68,136 | ) | (31,749 | ) | (117,878 | ) | (16,558 | (103,040 | ) | (206,559 | ) | (29,015 |
| Net increase/ (decrease) in cash,<br> cash equivalents and restricted cash | 1,328,070 | 12,771,611 | (18,182,147 | ) | (2,554,030 | (1,023,272 | ) | (14,489,976 | ) | (2,035,394 | ||
| Cash,<br> cash equivalents and restricted cash, at the beginning of the period | 21,855,316 | 45,395,483 | 58,167,094 | 8,170,683 | 24,206,658 | 54,474,923 | 7,652,047 | |||||
| Cash,<br> cash equivalents and restricted cash, at the end of the period | 23,183,386 | 58,167,094 | 39,984,947 | 5,616,653 | 23,183,386 | 39,984,947 | 5,616,653 | |||||
| Supplemental disclosures<br> of cash flow information: | ||||||||||||
| Cash paid for income taxes, net | 554,867 | 2,184,556 | 1,967,228 | 276,335 | 4,586,071 | 5,358,339 | 752,681 | |||||
| Cash paid for interest expenses | 165,881 | 64,366 | 207,879 | 29,201 | 465,279 | 369,669 | 51,927 |
All values are in US Dollars.
The accompanying notes are an integral part of this announcement.
11
NETEASE, INC.
UNAUDITED SEGMENT INFORMATION
(in thousands)
| Three<br> Months Ended | Nine<br> Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | September 30, | September 30, | September 30, | September 30, | ||||||
| 2024 | 2025 | 2025 | 2025 | 2024 | 2025 | 2025 | ||||||
| RMB | RMB | RMB | (Note 1) | RMB | RMB | (Note 1) | ||||||
| Net revenues: | ||||||||||||
| Games<br> and related value-added services | 20,864,036 | 22,806,459 | 23,327,508 | 3,276,796 | 62,380,233 | 70,181,974 | 9,858,403 | |||||
| Youdao | 1,572,541 | 1,417,541 | 1,628,524 | 228,757 | 4,286,121 | 4,344,327 | 610,244 | |||||
| NetEase Cloud Music | 1,999,163 | 1,968,729 | 1,964,063 | 275,890 | 6,069,656 | 5,791,180 | 813,482 | |||||
| Innovative<br> businesses and others | 1,774,139 | 1,698,935 | 1,438,530 | 202,069 | 5,811,415 | 4,761,353 | 668,824 | |||||
| Total net<br> revenues | 26,209,879 | 27,891,664 | 28,358,625 | 3,983,512 | 78,547,425 | 85,078,834 | 11,950,953 | |||||
| Cost of revenues: | ||||||||||||
| Games<br> and related value-added services | (6,503,146 | ) | (6,792,240 | ) | (7,151,130 | ) | (1,004,513 | (19,067,061 | ) | (21,438,632 | ) | (3,011,467 |
| Youdao | (783,085 | ) | (808,181 | ) | (940,661 | ) | (132,134 | (2,178,383 | ) | (2,432,877 | ) | (341,744 |
| NetEase Cloud Music | (1,343,921 | ) | (1,258,855 | ) | (1,269,289 | ) | (178,296 | (3,988,683 | ) | (3,703,921 | ) | (520,287 |
| Innovative<br> businesses and others | (1,103,122 | ) | (979,906 | ) | (819,940 | ) | (115,176 | (3,778,555 | ) | (2,793,911 | ) | (392,458 |
| Total cost<br> of revenues | (9,733,274 | ) | (9,839,182 | ) | (10,181,020 | ) | (1,430,119 | (29,012,682 | ) | (30,369,341 | ) | (4,265,956 |
| Gross profit: | ||||||||||||
| Games<br> and related value-added services | 14,360,890 | 16,014,219 | 16,176,378 | 2,272,283 | 43,313,172 | 48,743,342 | 6,846,936 | |||||
| Youdao | 789,456 | 609,360 | 687,863 | 96,623 | 2,107,738 | 1,911,450 | 268,500 | |||||
| NetEase Cloud Music | 655,242 | 709,874 | 694,774 | 97,594 | 2,080,973 | 2,087,259 | 293,195 | |||||
| Innovative<br> businesses and others | 671,017 | 719,029 | 618,590 | 86,893 | 2,032,860 | 1,967,442 | 276,366 | |||||
| Total gross<br> profit | 16,476,605 | 18,052,482 | 18,177,605 | 2,553,393 | 49,534,743 | 54,709,493 | 7,684,997 |
All values are in US Dollars.
The accompanying notes are an integral part of this announcement.
12
NETEASE, INC.
NOTES TO UNAUDITED FINANCIAL INFORMATION
Note 1: The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00 = RMB7.1190 on the last trading day of September 2025 (September 30, 2025) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on September 30, 2025, or at any other certain date.
Note 2: Share-based compensation cost reported in the Company’s unaudited condensed consolidated statements of comprehensive income is set out as follows in RMB and USD (in thousands):
| Three<br> Months Ended | Nine<br> Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | September 30, | September 30, | September 30, | September 30, | |
| 2024 | 2025 | 2025 | 2025 | 2024 | 2025 | 2025 | |
| RMB | RMB | RMB | USD (Note 1) | RMB | RMB | USD (Note 1) | |
| Share-based<br> compensation cost included in: | |||||||
| Cost of revenues | 306,283 | 291,326 | 267,472 | 37,572 | 881,167 | 792,509 | 111,323 |
| Operating expenses | |||||||
| Selling<br> and marketing expenses | 36,365 | 37,300 | 29,063 | 4,082 | 97,099 | 98,941 | 13,898 |
| General<br> and administrative expenses | 247,440 | 207,202 | 209,916 | 29,487 | 823,426 | 678,377 | 95,291 |
| Research<br> and development expenses | 388,051 | 410,567 | 395,750 | 55,591 | 1,149,803 | 1,230,641 | 172,867 |
The accompanying notes are an integral part of this announcement.
Note 3: The financial information prepared and presented in this announcement might be different from those published and to be published by NetEase’s listed subsidiary to meet the disclosure requirements under different accounting standards requirements.
Note 4: The unaudited reconciliation of GAAP and non-GAAP results is set out as follows in RMB and USD (in thousands, except per share data or per ADS data):
| Three<br> Months Ended | Nine<br> Months Ended | ||||||
|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | September 30, | September 30, | September 30, | September 30, | |
| 2024 | 2025 | 2025 | 2025 | 2024 | 2025 | 2025 | |
| RMB | RMB | RMB | USD (Note 1) | RMB | RMB | USD (Note 1) | |
| Net<br> income attributable to the Company’s shareholders | 6,538,435 | 8,601,010 | 8,615,677 | 1,210,236 | 20,931,130 | 27,517,844 | 3,865,408 |
| Add: Share-based<br> compensation | 960,706 | 930,921 | 886,380 | 124,509 | 2,897,543 | 2,752,871 | 386,693 |
| Non-GAAP<br> net income attributable to the Company’s shareholders | 7,499,141 | 9,531,931 | 9,502,057 | 1,334,745 | 23,828,673 | 30,270,715 | 4,252,101 |
| Non-GAAP net income per share * | |||||||
| Basic | 2.34 | 2.99 | 2.98 | 0.42 | 7.42 | 9.51 | 1.34 |
| Diluted | 2.33 | 2.96 | 2.95 | 0.41 | 7.35 | 9.41 | 1.32 |
| Non-GAAP net income per ADS<br> * | |||||||
| Basic | 11.72 | 14.95 | 14.89 | 2.09 | 37.12 | 47.53 | 6.68 |
| Diluted | 11.63 | 14.81 | 14.73 | 2.07 | 36.77 | 47.05 | 6.61 |
* Each ADS represents five ordinary shares.
The accompanying notes are an integral part of this announcement.
13