NetEase's Latest Financial Report: Earnings 3 Billion, High-Light Shadow
Recently, NetEase has had a bit of a rollercoaster ride.
In December 2024, Ding Lei returned to the "front line," and NetEase enjoyed a good period. In the first quarter of 2025, NetEase achieved a net profit of 103 billion yuan, but in the second quarter, NetEase's financial report was not as expected, with revenue falling short of market expectations.
On August 14th, NetEase released its second-quarter financial report. The data shows that NetEase generated revenue of 279 billion yuan, a year-on-year growth of 9.4%, and net profit attributable to shareholders of 86 billion yuan, a year-on-year increase of over 26%. The gross margin remained at 64.9% at a relatively high level. After the report was released, its US stock closed down more than 3.8%.
In the same quarter, NetEase's stock price soared, with its Hong Kong stock rising by more than 55%, and reaching a new high of 222.8 Hong Kong dollars per share.
In 2025, while the e-commerce and food delivery industries are fiercely competing, NetEase's market value has quietly surpassed that of Jingdong, Baidu, and Ctrip, ranking fifth among internet companies in China.
As for how to integrate AI into game development and operations, Ding Lei emphasized that NetEase is actively investing resources to adapt and utilize AI. The company has already seen the positive effects of AI in its products, and will continue to explore ways to use AI to create more engaging and interactive games.
In addition, NetEase has also increased investment in AI technology. According to the financial report, NetEase's R&D expenditures reached 44 billion yuan in the second quarter, accounting for 15.6% of total revenue. However, there are still challenges ahead in integrating AI into game development and operations.
As for the internal competition between Huyou and Leihuo, both sides have their own strengths and weaknesses, and it is not easy to determine which one will ultimately win. In any case, NetEase's future will be shaped by its ability to integrate AI into game development and operations.