NetEase Inc (NTES) 2024 Q4 法說會逐字稿

Good day, and welcome to the NetEase fourth quarter and fiscal year 2024 earnings conference call. Today's conference is being recorded.

大家好，歡迎參加網易2024財年第四季及全年業績電話會議。今天的會議正在錄影。

At this time, I would like to turn the conference over to Brandi Piacente.

此時，我想把會議交給布蘭迪‧皮亞琴特。

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, 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.

謝謝接線生。請注意，今天的討論將包含有關公司未來業績的前瞻性陳述，旨在符合美國《私人證券訴訟改革法案》規定的免責條款。此類聲明並非對未來績效的保證，並受某些風險、不確定性、假設和其他因素的影響。其中一些風險超出了公司的控制範圍，可能導致實際結果與今天新聞稿和本次討論中提到的結果有重大差異。

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 20-F and in announcements and filings on the website of the Hong Kong Stock Exchange. The company does not undertake any obligation to update this forward-looking information, except as required by law.

網易向美國證券交易委員會提交的某些文件中包含了可能影響其業務和財務業績的風險因素的一般性討論，包括其 20-F 表格年度報告以及香港聯合交易所網站上的公告和文件。除法律要求外，本公司不承擔更新此等前瞻性資訊的任何義務。

Today's discussion, 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 fourth quarter and fiscal year 2024 earnings news release issued earlier today.

在今天的討論中，管理階層還將討論一些非GAAP財務指標，僅用於比較目的。有關非GAAP財務指標的定義以及GAAP與非GAAP財務結果的調節，請參閱今天稍早發布的2024財年第四季財報新聞稿。

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 ir.netease.com. Joining us today on the call from NetEase senior management are Mr. William Ding, Chief Executive Officer; and Mr. Bill Pang, the Vice President of Corporate Development. I will now turn the call over to Bill, who will read the prepared remarks on William's behalf.

再次提醒，本次會議正在錄影。此外，投資人簡報和本次電話會議的網路直播回放將在網易公司網站ir.netease.com上提供。今天出席本次電話會議的網路主管有：執行長丁偉強先生和企業發展副總裁龐炳強先生。現在我將把電話交給比爾，他將代表威廉宣讀準備好的演講稿。

Thank you, Brandi, and thank you, everyone, for participating in today's call. Before we begin, I would like to remind everyone that all percentages are based on RMB.

謝謝布蘭迪，也謝謝大家參加今天的電話會議。在開始之前，我想提醒大家，所有百分比都是以人民幣為基準。

At NetEase, we are dedicated to innovation and strive for continuous breakthroughs across our businesses. While 2023 was a year of expanding our portfolio across various game genres, 2024 was about pushing boundaries with bold innovation and accelerating our brand awareness in the global market. These strategic steps reinforce our foundation for sustainable, long-term growth. By the end of the year, our total net revenues reached RMB105.3 billion, with RMB83.6 billion from games and related value-added services, both marking new record highs. Notably, this marks the 22nd consecutive year of revenue growth from our online games operations.

在網易，我們致力於創新，力求在各項業務中持續取得突破。2023 年，我們致力於拓展產品組合，涵蓋各種遊戲類型；而 2024 年，我們則著眼於透過大膽創新突破界限，並加速提升我們在全球市場的品牌知名度。這些策略舉措鞏固了我們實現永續長期成長的基礎。截至年底，我們的淨收入總額達到人民幣1053億元，其中遊戲及相關增值服務收入為人民幣836億元，兩項數據均創歷史新高。值得注意的是，這標誌著我們的線上遊戲業務連續第 22 年實現收入成長。

The successful launch of new blockbuster titles in the fourth quarter, advanced each of our growth drivers - innovation, diversification and globalization. By redefining gameplay and setting new industry standards for premium quality, we have created tremendous player enthusiasm. Our games captured attention across genres, within and beyond the traditional gaming community and on both domestic and global scales. Let's start today by reviewing our new games’ performances. Then we'll take a look at our broader portfolio and pipeline.

第四季新大片的成功推出，推動了我們所有成長動力——創新、多元化和全球化。我們透過重新定義遊戲玩法並為優質產品樹立新的行業標準，激發了玩家極大的熱情。我們的遊戲跨越各種遊戲類型，在傳統遊戲社群內外，在國內和國際範圍內都引起了廣泛關注。今天我們先來回顧一下我們新遊戲的表現。接下來，我們將檢視我們更廣泛的產品組合和研發管線。

Marvel Rivals, our fast-paced Super Hero shooting game, sparked massive excitement across global markets following its launch. It claimed the No.1 spot on Steam's top sellers chart within 4 hours of its release, attracting over 10 million players in its first 72 hours, and 20 million players in its first 12 days. With over 40 million players accumulated so far, Marvel Rivals is redefining the hero shooter experience through its unique art style, innovative combat system and ever-changing battlefields. Its key team-up abilities add a dynamic layer of immersive interactions among players, while recreating iconic Marvel moments with our fresh take that adds a new dimensions to the Marvel Universe. During the Season 1 update, Marvel Rivals once again topped Steam's top sellers and most-played charts. Our collaboration with Marvel Comics also brought Marvel Rivals to life for comic fans through an Infinity Comic series on Marvel Unlimited. The synergy not only amplified the game's momentum but also bridged the worlds of gaming and other media forms, captivating audience beyond the gaming community and solidifying Marvel Rivals as a cultrual phenomenon. With more Super Heroes and exciting events on the horizon, Marvel Rivals will continue to evolve. We are thrilled to bring even more new experiences to the game that keeps players engaged and inspired.

《漫威勁敵》是我們推出的快節奏超級英雄射擊遊戲，一經發布便在全球市場引起了巨大轟動。該遊戲在發布後 4 小時內便登上了 Steam 暢銷榜榜首，在最初的 72 小時內吸引了超過 1000 萬玩家，在最初的 12 天內吸引了 2000 萬玩家。漫威Rivals目前已累積超過4000萬玩家，憑藉其獨特的藝術風格、創新的戰鬥系統和不斷變化的戰場，正在重新定義英雄射擊遊戲體驗。它的關鍵團隊合作能力為玩家之間增添了動態的沉浸式互動，同時以我們全新的視角重現了標誌性的漫威時刻，為漫威宇宙增添了新的維度。在第一季更新期間，《漫威宿敵》再次榮登Steam暢銷榜和最受歡迎遊戲榜榜首。我們與漫威漫畫的合作也透過 Marvel Unlimited 上的 Infinity Comic 系列，為漫畫迷帶來了 Marvel Rivals 的故事。這種協同效應不僅增強了遊戲的勢頭，而且還連結了遊戲和其他媒體形式的世界，吸引了遊戲社群以外的觀眾，並將漫威宿敵鞏固為一種文化現象。隨著更多超級英雄和令人興奮的事件即將發生，《漫威宿敵》也將持續發展。我們很高興能為遊戲帶來更多全新體驗，讓玩家保持參與和熱情。

At the end of December, we launched our highly anticipated open-world action-adventure RPG, Where Winds Meet. Within 4 days of its PC launch in China, the game had amassed 3 million downloads and topped the iOS download chart for around two weeks following its mobile launch. The booming mobile version drove total players across PC and mobile to over 10 million within a week and over 15 million after two weeks. Rooted in a richly crafted world with a deep historical backdrop, Where Winds Meet innovatively introduces Chinese martial arts into an open-world exploration experience. On top of that, we pioneered a mode that caters to both single-player and multiplayer preferences, which reinterprets Wuxia stories in a brand-new way. Players can immerse themselves in the intertwined conflicts of ancient cities like Kaifeng, witnessing characters’ contrasting fates during historical changes, and develop social networks with other people along the journey. Building on the single-player experience, the game seamlessly integrates challenges that encourage social exchange. While continuously refining the experiences, we aim to create a compelling blend of solo and multiplayer elements, offering players diverse ways to experience the world. With the community’s high praise, we expect the audience for Where Winds Meet to continue expanding over time, with the game becoming another flagship evergreen title. Our plans to build on the game's initial success are underway. We are currently working to bring Where Winds Meet to console platforms and introduce the saga to players in more regions.

12 月底，我們推出了備受期待的開放世界動作冒險角色扮演遊戲《風之交匯處》。該遊戲在中國PC端上線4天內就獲得了300萬次下載，並在行動端上線後連續兩週位居iOS下載榜首。行動版的火爆發展使得PC和行動端玩家總數在一週內突破1000萬，兩週後突破1500萬。《風之交會》植根於精心打造的世界，擁有深厚的歷史背景，創新地將中國武術融入開放世界探索體驗中。除此之外，我們也開創了一種能夠同時滿足單人遊戲和多人遊戲偏好的模式，以全新的方式重新詮釋武俠故事。玩家可以沉浸在開封等古代城市錯綜複雜的衝突中，見證角色在歷史變遷中截然不同的命運，並在旅途中與其他人物建立社交網絡。在單人遊戲體驗的基礎上，遊戲無縫融入了鼓勵社交互動的挑戰。在不斷改進遊戲體驗的同時，我們致力於創造引人入勝的單人遊戲和多人遊戲元素的融合，為玩家提供體驗遊戲世界的多樣化方式。憑藉社群的高度評價，我們預計《風之交匯處》的受眾群體將隨著時間的推移而不斷擴大，這款遊戲將成為另一款經久不衰的旗艦級作品。我們正在製定計劃，以鞏固遊戲的初步成功。我們目前正在努力將《風之交匯處》帶到主機平台，並將這一系列作品介紹給更多地區的玩家。

In addition to our newest game launches, the return of Blizzard’s games to China has been highly successful, with their strong momentum throughout the fourth quarter. The return of World of Warcraft has consistently sparked tremendous enthusiasm from the community, supported by our diverse localized events that are driving the franchise to new heights. Shortly after Hearthstone's return, we quickly reorganized the highly anticipated Hearthstone Gold Series in China. The event set new records, drawing in over 10,000 fans in person, and more than 10 million players gathered to watch online. Just yesterday, Overwatch 2 made its return to China, reigniting player excitement. As the Blizzard portfolio gradually returns to the Chinese market, we are further strengthening our partnership with Blizzard, exploring localization opportunities and bringing more exciting content to China's robust game community.

除了我們最新推出的遊戲之外，暴雪遊戲重返中國市場也取得了巨大成功，並在第四季度保持了強勁的發展勢頭。《魔獸世界》的回歸一直激發著玩家社群的巨大熱情，而我們豐富多彩的在地化活動也為之增色不少，這些活動正將該系列遊戲推向新的高度。爐石戰記回歸後不久，我們迅速在中國重新組織了備受期待的爐石戰記黃金系列賽。該賽事創下新紀錄，現場吸引了超過 10,000 名粉絲，在線觀看人數超過 1000 萬。就在昨天，《鬥陣特攻2》重返中國市場，再次點燃了玩家們的熱情。隨著暴雪遊戲產品組合逐步回歸中國市場，我們將進一步加強與暴雪的合作關係，探索在地化機會，為中國蓬勃發展的遊戲社群帶來更多令人興奮的內容。

Whether developing or operating a title, we're always committed to innovation and operational excellence. We apply this across our portfolio and continue to see the results of our dedication reflected in our new and legacy franchises.

無論是開發還是營運遊戲，我們始終致力於創新和卓越營運。我們將這種理念應用於我們的所有業務組合中，並不斷看到我們的努力在新舊加盟店中得到體現。

With operations across decades, our beloved legacy franchises continue to set new records and amass fans, thrilling players with enduring popularity.

數十年來，我們備受喜愛的傳統系列遊戲不斷創造新紀錄，累積粉絲，以其持久的人氣令玩家興奮不已。

Fantasy Westward Journey continued to bring players fresh experiences through well-timed events and new content in the fourth quarter. The Qianbianwanhua expansion pack, featuring the iconic transformation abilities of Monkey King Sun Wukong, introduced all new skills and summoned beasts to the game. Meanwhile, the Spring Festival events, planned around the Year of the Snake, brought the community a vibrant New Year atmosphere. For Fantasy Westward Journey mobile, we continued to infuse new content into the game, which gained heightened popularity throughout the year and led to record-high revenue for 2024, nearly a decade after its launch.

在第四季度，《幻想西部之旅》透過適時推出的活動和新內容，持續為玩家帶來新鮮體驗。《千變萬花》擴充包以孫悟空標誌性的變身能力為特色，為遊戲引入了全新的技能和召喚獸。同時，圍繞著蛇年策劃的春節活動為社區帶來了充滿活力的新年氣氛。對於《幻想西遊記》手遊，我們不斷為遊戲注入新內容，該遊戲在一年內獲得了更高的人氣，並在推出近十年後的 2024 年創下了創紀錄的收入。

Westward Journey Online 2 also achieved record-high annual revenue, driven by enriched gameplay and activities, as well as a refreshed gaming experience powered by new servers. Players flocked to the in-game ceremony for Tang Dynasty Emperor Taizong and explored new maps and missions set in the thriving ancient citiy of Luoyang. Stepping into 2025, we also introduced our major new annual server update for Westward Journey Online mobile. We accompanied the update with a dual engagement sharing mechanism. It generated significant new community interest and further strengthened bonds among players while keeping long-time fans coming back for more.

西遊記Online 2也實現了創紀錄的年度收入，這得益於更豐富的遊戲玩法和活動，以及新伺服器帶來的煥然一新的遊戲體驗。玩家們湧入遊戲內唐太宗皇帝的加冕典禮，探索以繁榮的古城洛陽為背景的新地圖和新任務。邁入 2025 年，我們也推出了《西部之旅 Online》行動版的重大年度伺服器更新。此次更新還附帶了雙重互動分享機制。它激發了社區的濃厚興趣，進一步加強了球員之間的聯繫，同時也讓老球迷們持續關注。

Identity V is another testament to our long-term operational success with our established titles. After setting consecutive new quarterly records in the first three quarters, both in terms of player numbers and revenues, Identity V achieved record-high revenue in 2024. In the fourth quarter, we sustained intense player activity with our comprehensive operatiing strategies, which players love. For example, in November, we launched a cross-branding campaign with Persona 5 Royal, introducing the beloved Phantom Thieves of Hearts to our game. Fans appeared in droves for the crossover event, driving Identity V to No.2 on the iOS top-grossing chart.

《第五人格》再次證明了我們旗下現有遊戲系列的長期營運成功。在前三個季度連續創下玩家數量和收入的新季度紀錄後，《第五人格》在 2024 年實現了創紀錄的收入。第四季度，我們透過全面的營運策略，維持了玩家們喜愛的活躍度。例如，11 月，我們與 Persona 5 Royal 展開了跨品牌推廣活動，將深受喜愛的心之怪​​盜團引入我們的遊戲中。粉絲們蜂擁而至參加連動活動，推動《第五人格》在 iOS 暢銷榜上排名第二。

The Naraka: Bladepoint franchise also continued its impressive run with the action-based comebat community. With the December update, Naraka: Bladepoint partnered with CD Projekt RED for a special crossover on The Witcher 3: Wild Hunt, introducing 4 beloved characters through new costumes and in-game events. Most recently, our January collaboration with the King of Fighters brought iconic KOF characters, Athena and Mai Shiranui into our game, fueling high levels of player interest. Naraka: Bladepoint mobile has also been growing its player base since its launch in the third quarter and surpassed 50 million players in December.

《納拉卡：刀鋒》系列遊戲在動作類遊戲玩家群中也持續保持著強勁的成長動能。在 12 月的更新中，《納拉卡：刀鋒》與 CD Projekt RED 合作，在《巫師 3：狂獵》中進行了一次特別的聯動，透過新的服裝和遊戲內活動引入了 4 位深受喜愛的角色。最近，我們一月份與《拳皇》的合作將標誌性的《拳皇》角色雅典娜和不知火舞帶入了我們的遊戲中，激發了玩家們的高度興趣。Naraka: Bladepoint 手遊自第三季推出以來，玩家數量也一直在增長，並在 12 月突破了 5000 萬玩家。

For Eggy Party, we continue to nurture its dynamic UGC ecosystem. The community is highly connected, fueling vigorous supply and demand for content creation. The platform consistently adds diverse game modes to build on its rich content offerings, allowing players to enjoy relaxing and heartwarming moments with their Eggy buddies. So far, we have successfully introduced several popular game modes, including MOBA, asymmetric battle arena, werewolf, pet-keeping and farm management. Each captiavted a large audience within the Eggy Party community.

對於 Eggy Party，我們將繼續培育其充滿活力的使用者生成內容生態系統。社群聯繫緊密，推動了內容創作的旺盛供需。平台不斷增加各種遊戲模式，豐富其內容，讓玩家可以與他們的 Eggy 夥伴一起享受輕鬆溫馨的時刻。目前，我們已經成功推出了幾種熱門遊戲模式，包括 MOBA、非對稱戰鬥競技場、狼人殺、寵物飼養和農場經營。每一部作品都吸引了許多 Eggy Party 社群的觀眾。

Our innovative MMO Justice mobile, maintained its large and active player base in the fourth quarter. In late December, Justice mobile hosted a groundbreaking virtual concert for its cross-year celebration, immersing players in festivities and inviting them to participate in an interactive feast. The event created a truly unforgettable audiovisual experience by merging cutting-edge technology with ancient art. Beyond conventional concerts, all players could join as their in-game characters, embarking on an exploratory journey through various immersive scenes. The concert ignited considerable buzz among players, attracting over 3 million concurrent viewers online. The robust community engagement and related-themed content updates propelled Justice mobile to No.2 on the iOS top-grossing chart shortly after the event.

我們創新的 MMO 手遊《正義》在第四季度保持了龐大而活躍的玩家群。12 月下旬，Justice 手遊舉辦了一場突破性的虛擬音樂會，慶祝其跨年慶典，讓玩家沉浸在節日氣氛中，並邀請他們參與互動盛宴。這項活動將尖端科技與古代藝術結合，創造了真正令人難忘的視聽體驗。除了傳統的音樂會之外，所有玩家都可以以遊戲角色的身份加入，踏上探索各種沉浸式場景的旅程。這場音樂會引起了球員們的極大關注，吸引了超過 300 萬在線觀眾同時觀看。活動結束後不久，強大的社群參與度和相關主題內容更新推動 Justice 行動應用程式在 iOS 暢銷榜上迅速攀升至第二名。

Since its launch in July, Once Human has cultivated a dedicated survival player fanbase around the world, and we continue to build on this. The new PvP and PvE scenarios we introduced in the fourth quarter sparked a player surge. The spike in total concurrent players drove Once Human to rank on Steam's top 10 most played chart and to No.3 on Steam's top sellers chart. Anticipation on the much-awaited mobile version is also mounting. We now have over 10 million preregistrations as we finalize the game's mobile version for its global launch this April. With the addition of a mobile version, we expect to attract even more fans worldwide.

自 7 月推出以來，《Once Human》已在全球培養了一批忠實的生存遊戲玩家粉絲，我們將繼續在此基礎上發展壯大。我們在第四季度推出的全新 PvP 和 PvE 場景引發了玩家數量的激增。同時線上玩家總數的激增使《Once Human》躋身 Steam 最受歡迎遊戲排行榜前 10 名，並在 Steam 暢銷遊戲排行榜上名列第三。備受期待的行動版也越來越令人期待。目前，該遊戲的行動版本已完成開發，將於今年四月在全球發布，預註冊用戶已超過 1000 萬。行動版本的推出，預計將吸引全球更多粉絲。

Adding to our ever-expanding and increasingly diverse portfolio, we have a great lineup of new titles in our pipeline, with several new games planned to hit key markets in the coming months.

為了不斷擴大和日益多元化的產品組合，我們推出了一系列優秀的新遊戲，其中幾款新遊戲計劃在未來幾個月內登陸主要市場。

The global launch for FragPunk, our fast-paced 5v5 tactical shooter game, is set to begin on March 6. We expect the game to become a dynamic force in shooting experiences for fans worldwide, featuring an innovative free card system with shifting combat dynamics and a colorful punk art style. Through meticulous game development, FragPunk is set to disrupt the traditional shooting experience with all-new rule-breaking gameplay that we think players will love.

我們的快節奏 5v5 戰術射擊遊戲 FragPunk 將於 3 月 6 日在全球正式上線。我們期望這款遊戲能夠成為全球射擊遊戲愛好者體驗中的一股強大力量，它擁有創新的自由卡牌系統、不斷變化的戰鬥動態以及色彩鮮豔的龐克藝術風格。透過精心的遊戲開發，《FragPunk》將以全新的、打破規則的遊戲玩法顛覆傳統的射擊體驗，我們相信玩家會喜歡這種玩法。

Next up is Destiny: Rising, which successfully concluded its first closed alpha test in December. The community's broad enthusiasm won Destiny: Rising the Pocket Gamer’s annual Most Anticipated Game Award. Using the valuable insights we gained from early testing in target regions, we are currently working to make the game even better. Our goal is to bring this fresh shooting adventure, set in an alternate Destiny timeline, to mobile players around the globe.

接下來是《天命：崛起》，遊戲已於 12 月成功完成了首次封閉 Alpha 測試。玩家社群的廣泛熱情為《天命：崛起》贏得了 Pocket Gamer 年度最受期待遊戲獎。利用我們在目標地區早期測試中獲得的寶貴經驗，我們目前正在努力使遊戲變得更好。我們的目標是將這款設定在另一個《天命》時間線中的全新射擊冒險遊戲帶給全球行動玩家。

Lastly, I'd like to highlight our Super Hero team-based tactical RPG, MARVEL Mystic Mayhem. It just finished closed beta cross-country testing in January with a unique art style, rich cast of characters, and varied and rewarding gameplay that thrilled the community. Sweepingly positive player feedback gives us confidence that players will love the Mystic Mayhem experience as they fight with beloved Marvel characters across various bizarre dreamlands.

最後，我想重點介紹一下我們的超級英雄團隊戰術角色扮演遊戲《漫威神秘混亂》。該遊戲於 1 月結束了全國範圍的封閉測試，其獨特的藝術風格、豐富的角色陣容以及多樣化且富有挑戰性的遊戲玩法令玩家社群興奮不已。玩家們的正面回饋讓我們相信，玩家們會喜歡《神祕混亂》這款遊戲，他們將與深受喜愛的漫威角色一起在各種奇怪的夢境世界中戰鬥。

As many of you know, we have been steadily expanding into new game categories over recent years. Diversifying our portfolio has allowed us to carve a path beyond the traditional MMO games that defined our early journey in the gaming industry. Along the way, we have achieved significant milestones and gained invaluable insights into genres that were once new to us. Each successful vertical we enter reinforces our ability to craft impactful games across diverse categories. Moreover, our diversified game portfolio has strengthened our global presence, enabling our games to reach and resonate with audiences worldwide. As we expand our game offerings, uphold superior quality and stay agile in our operational iterations, we're confident that we can continue captivating global audiences with new innovative titles and grow our international reach.

如大家所知，近年來我們一直在穩步拓展新的遊戲類別。多元化我們的產品組合使我們能夠走出一條超越傳統大型多人線上遊戲的道路，而傳統大型多人線上遊戲正是我們遊戲產業早期發展歷程的基石。一路走來，我們取得了重要的里程碑式成就，並對曾經對我們來說很陌生的類型有了寶貴的見解。我們成功進入的每一個垂直領域都增強了我們在不同類別中打造有影響力遊戲的能力。此外，我們多元化的遊戲產品組合增強了我們的全球影響力，使我們的遊戲能夠觸及並引起全球玩家的共鳴。隨著我們不斷拓展遊戲產品線，堅持卓越品質，並在營運迭代中保持靈活，我們有信心能夠繼續以創新遊戲吸引全球玩家，並擴大我們的國際影響力。

Now, let's move to Youdao. With its continued focus on technology-driven innovation and profitability enhancement, Youdao's operating profit increased by over 10% year-over-year in the fourth quarter, and it achieved its first-ever annual operating profit in 2024.

現在，我們來看看有道。憑藉對技術驅動創新和盈利能力提升的持續關注，有道第四季度營業利潤同比增長超過10%，並於2024年實現了公司有史以來的首次年度營業利潤。

In the fourth quarter, learning services revenue declined as we further focused on long-term growth, balancing revenue and profitability. By prioritizing high-demand courses, we achieved healthy development and reinforced profitability. Notably, Youdao Linnshi’s flagship course, featuring tiered learning videos and AI-powered support, continued to thrive. With strong engagement and loyalty, it achieved a retention rate of over 70% in the fourth quarter.

第四季度，由於我們進一步專注於長期成長，平衡收入和獲利能力，學習服務收入下降。透過優先發展高需求課程，我們實現了健康發展並提高了獲利能力。值得注意的是，有道林世的旗艦課程，憑藉分級學習影片和人工智慧支持，繼續蓬勃發展。憑藉強大的用戶參與度和忠誠度，該公司在第四季度實現了超過 70% 的用戶留存率。

Recently, we launched Confucius-o1, China's leading step-by-step inference model for education. As a 14B lightweight model, it supports deployment on consumer-grade GPUs and delivers detailed problem-solving processes. With its high accuracy and robust reasoning capabilities, Confucius-o1 has been seamlessly integrated into our AI Learning Assistant, Mr. P AI Tutor, earning excellent user feedback and surpassing 100 million uses.

最近，我們推出了孔子-o1，這是中國領先的教育領域循序漸進推理模型。作為一款 14B 輕量級模型，它支援在消費級 GPU 上部署，並提供詳細的問題解決流程。憑藉其高精度和強大的推理能力，孔子-o1 已無縫集成到我們的 AI 學習助手 Mr. P AI Tutor 中，獲得了用戶的良好反饋，使用量已超過 1 億次。

Youdao's online marketing services have also continued to advance. Domestic performance-based advertising reached record-breaking revenues led by the gaming and AI tools sectors. Internationally, we recently established an official partnership with Google, laying a solid foundation for further expansion. We have also sharpened our technological edge in overseas KOL marketing. By developing an evaluation model, we can precisely match KOL selection with specific demand, driving high conversion rates.

有道的網路行銷服務也持續發展。國內成效廣告收入創歷史新高，其中遊戲和人工智慧工具領域表現突出。在國際上，我們最近與Google建立了正式的合作關係，為進一步擴張奠定了堅實的基礎。我們在海外KOL行銷方面的技術優勢也提升了。透過建立評估模型，我們可以將 KOL 選擇與特定需求精準匹配，從而提高轉換率。

Our smart devices segment maintained healthy growth. Our flagship Youdao Dictionary Pen solidified its leading position in the Double 11 online shopping festival, dominating the top position in its category on JD and Tmall’s sales charts for five consecutive years. Building on this success, we launched Youdao Dictionary Pen A7 Pro in January, featuring higher performance to further fuel ongoing growth.

我們的智慧型設備業務板塊保持了良好的成長動能。我們的旗艦產品有道字典筆在雙十一線上購物節中鞏固了領先地位，連續五年在京東和天貓的銷售排行榜上佔據同類產品榜首。以此成功為基礎，我們在1月推出了性能更高的有道字典筆A7 Pro，以進一步推動持續成長。

Turning to NetEase Cloud Music. NetEase Cloud Music continued to drive quality development across its music-centric ecosystem, nurturing its unique community and distinctive content offerings.

改用網易雲音樂。網路易雲音樂持續推動其以音樂為中心的生態系統的高品質發展，培育其獨特的社群和特色內容。

We continued reinforcing our signature music consumption experiences while expanding consumption scenarios and brand awareness. We launched and iterated several innovative features to improve how users enjoy and interface with music and music-inspired content in Q4. For example, our new feature, Lyric Books, allows users to highlight their favorite lyrics, create a personalized lyrics collection, and share their unique Lyric Book with others. Additionally, Lightbulb enhances users' music discovery journey, offering recommendations that flow naturally with each user's distinctive taste. These functions were highly popular with music fans and increased user engagement. Building on our compelling consumption experiences, we continued diversifying music consumption scenarios. For example, co-branding activities in collaboration with our games division helped expand our existing audience, while introduced and enhanced music-inspired social interaction features in games further extended our brand’s presence.

我們持續強化我們標誌性的音樂消費體驗，同時拓展消費場景並提升品牌知名度。我們在第四季度推出並迭代了多項創新功能，以改善用戶欣賞音樂和音樂相關內容的方式以及與音樂互動的方式。例如，我們的新功能「歌詞簿」允許用戶突出顯示自己喜歡的歌詞，創建個人化的歌詞收藏，並與他人分享他們獨特的歌詞簿。此外，Lightbulb 還增強了用戶的音樂發現之旅，提供符合每位用戶獨特品味的自然推薦。這些功能深受音樂愛好者的歡迎，並提高了用戶參與度。基於我們引人入勝的消費體驗，我們持續拓展音樂消費場景。例如，與遊戲部門合作的聯合品牌活動幫助我們擴大了現有受眾，同時在遊戲中引入和增強了受音樂啟發的社交互動功能，進一步擴大了我們品牌的影響力。

Expanding our music library also allows us to keep bringing users a diverse range of licensed and original music. In Q4, we deepened our partnership with Kakao Entertainment and strengthened our Chinese music collection this January by collaborating with the renowned artist Li Jian, bringing his full discography back to our platform, including many beloved classics. On the in-house music side, we stepped up our efforts as well. Several tracks gained widespread recognition in Q4, including the hit Follow. We're also growing our copyright collaboration with popular artists. In January, Hua Chenyu's digital album TIPPING POINT debuted on our platform, selling over 1 million copies within 24 hours.

擴充我們的音樂庫也使我們能夠繼續為用戶帶來各種各樣的正版音樂和原創音樂。第四季度，我們深化了與 Kakao Entertainment 的合作，並在今年 1 月透過與著名藝術家李健合作，加強了我們的中國音樂收藏，將他的所有音樂作品帶回我們的平台，其中包括許多深受喜愛的經典作品。在公司內部音樂方面，我們也加大了投入。第四季有多首歌曲獲得廣泛認可，其中包括熱門歌曲《Follow》。我們也不斷擴大與知名藝術家的版權合作。1月份，華晨宇的數位專輯《TIPPING POINT》在我們的平台上首發，24小時內銷售突破100萬張。

In Q4, we celebrated the 10th anniversary of our independent musician platform with special events highlighting our musicians’ journeys, helping to deepen connections between artists and fans. As of December, our platform boasted over 770,000 registered artists, making it one of China's top platforms for independent musicians.

第四季度，我們舉辦了特別活動，慶祝獨立音樂人平台成立 10 週年，重點介紹我們音樂人的精彩歷程，幫助加深藝術家和粉絲之間的聯繫。截至12月，我們的平台擁有超過77萬名註冊藝術家，使其成為中國領先的獨立音樂人平台之一。

As we continued to improve our music-focused monetization, subscription-based memberships remained an important driver of online music revenue growth. To further optimize our premium offerings, we enhanced our content appeal, introduced cutting-edge features, added membership privileges for subscribers and refined our comprehensive pricing strategy. These efforts boosted subscriber growth and deepened engagement, laying a solid foundation for more sustainable growth.

隨著我們不斷改進以音樂為中心的獲利模式，訂閱會員制仍然是推動線上音樂收入成長的重要動力。為了進一步優化我們的高級產品，我們增強了內容吸引力，引入了尖端功能，增加了訂閱用戶的會員特權，並完善了我們的綜合定價策略。這些舉措促進了用戶成長，加深了用戶參與度，為更永續的成長奠定了堅實的基礎。

Finally, let's look at Yanxuan. Yanxuan continues to focus on key categories and drive growth through bestselling products. In 2024, core categories like pet products and home cleaning recorded solid growth, reinforcing their market leadership. Meanwhile, other key categories kept gaining popularity through star products. Our Zhongguo Da’e down jacket, known for exceptional quality and strategic marketing, remained a standout performer in the fourth quarter, breaking into the top 5 position for Men’s Wear on Tmall’s sales chart.

最後，我們來看看彥軒。Yanxuan 繼續專注於重點品類，並透過暢銷產品推動成長。2024年，寵物用品和家居清潔等核心類別實現了穩健成長，鞏固了其市場領導地位。同時，其他重點品類也憑藉著明星產品持續獲得人氣。我們的中國大羽絨服，以其卓越的品質和策略​​行銷而聞名，在第四季度依然表現出色，躋身天貓男裝銷售榜前5名。

Across our NetEase family of businesses, we pursue innovation that advances our company and the industries we serve. We are extending this to our global aspirations for our games as we further diversify our portfolio and bring beloved titles to fans worldwide in 2025 and beyond. We believe these initiatives will fuel lasting value creation across our business and for our players, partners and shareholders alike.

在網易集團旗下所有業務部門，我們致力於追求創新，以推動公司發展和我們所服務的產業進步。我們將把這個願景擴展到我們的全球遊戲領域，進一步豐富我們的產品組合，並在 2025 年及以後將深受喜愛的遊戲帶給世界各地的粉絲。我們相信這些舉措將為我們的業務以及我們的玩家、合作夥伴和股東創造持久的價值。

This concludes William's comments.

威廉的發言到此結束。

I will now provide a brief review of our 2024 annual results with a focus on the fourth quarter. Given the limited time of today's call, I will present some abbreviated financial highlights. We encourage you to read through our press release issued earlier today for further details.

接下來，我將簡要回顧我們 2024 年的年度業績，並將重點放在第四季度。鑑於今天電話會議時間有限，我將簡要介紹一些財務要點。我們建議您閱讀今天早些時候發布的新聞稿，以了解更多詳情。

As a reminder, all amounts are RMB unless otherwise stated.

再次提醒，除非另有說明，所有金額均為人民幣。

Our total net revenues for 2024 were RMB105.3 billion, or USD14.4 billion, representing a 2% increase year-over-year. For the fourth quarter, total revenues were RMB26.7 billion, or USD3.7 billion.

2024 年我們的淨收入總額為人民幣 1,053 億元，即 144 億美元，較去年同期成長 2%。第四季總收入為人民幣267億元，約37億美元。

For 2024, net revenues from games and related VAS were RMB83.6 billion, up 3% from 2023 and up 2% year-over-year in Q4 to RMB21.2 billion. Specifically, net revenues from online games were RMB80.4 billion, up 6% from 2023 and up 5% year-over-year in Q4 to RMB20.5 billion. Through 2024, our PC-client games delivered strong performances, achieving 17% year-over-year growth with an impressive 57% increase in Q4. The Q4 growth was primarily driven by titles such as Naraka: BladePoint, Westward Journey Online 2 and several licensed titles.

2024 年，遊戲及相關增值服務淨收入為 836 億元，比 2023 年成長 3%，比去年同期第四季的 212 億元成長 2%。具體而言，網路遊戲淨收入為人民幣804億元，比2023年成長6%，比上年同期第四季的人民幣205億元成長5%。截至 2024 年，我們的 PC 用戶端遊戲表現強勁，年成長 17%，第四季更是實現了令人矚目的 57% 的成長。第四季的成長主要得益於《Naraka: BladePoint》、《Westward Journey Online 2》以及幾款授權遊戲的推動。

While the positive momentum in PC games has shifted our revenue mix, mobile games remain a significant part of our business. In the fourth quarter, they accounted for approximately 65% of our total net revenues from online games operations, and for the full year, they made up about 73%.

雖然 PC 遊戲的積極發展勢頭改變了我們的收入結構，但行動遊戲仍然是我們業務的重要組成部分。第四季度，它們約占我們線上遊戲業務淨收入的 65%，全年約佔 73%。

Youdao's net revenues for 2024 were up about 4% for the year to RMB5.6 billion, primarily due to revenue growth from online marketing services. They declined 9.5% year-over-year in the fourth quarter to RMB1.3 billion, primarily due to a decline in learning services revenue as we focus on business that serves our long-term growth objectives with better profitability.

2024年，有道淨收入年增約4%，達到人民幣56億元，主要得益於網路行銷服務收入的成長。第四季年減 9.5% 至人民幣 13 億元，主要原因是學習服務收入下降，因為我們將重點放在能夠更好地服務於我們長期增長目標且盈利能力更強的業務上。

NetEase Cloud Music's net revenues were up a little over 1% at RMB8 billion for the full year and were RMB1.9 billion in the fourth quarter, a 5% decline year-over-year. As discussed in previous quarters, the decline reflects lower revenue from social entertainment services, which aligns with our refined focus on sustainably improving profitability.

網易雲音樂全年淨收入為人民幣80億元，較去年同期成長略超過1%；第四季淨收入為人民幣19億元，較去年同期下降5%。正如前幾季所討論的，這一下滑反映了社交娛樂服務收入的減少，這與我們更加註重可持續地提高盈利能力的策略相一致。

Net revenues for innovative businesses and others were RMB8.1 billion for the year and RMB2.3 billion for the quarter, down 6% and 17%, respectively, year-over-year. The decline was mainly due to decreased revenue contribution from Yanxuan, advertising services and some of our innovative businesses. For the year, our total gross profit margin was 62.5%. In the fourth quarter, our gross profit margin slightly decreased year-over-year to 60.8%. Looking at our fourth quarter margins in more detail:

創新業務及其他業務的全年淨收入為人民幣81億元，本季淨收入為人民幣23億元，較去年同期分別下降6%和17%。收入下降主要是由於燕軒、廣告服務以及我們一些創新業務的收入貢獻減少所致。本年度總毛利率為 62.5%。第四季度，我們的毛利率較去年同期略有下降，至 60.8%。更詳細地來看我們第四季的利潤率：

Gross profit margin was 66.7% for our games and related VAS, compared with 69.5% in the same period of last year. The decrease was primarily attributable to a higher proportion of net revenues from licensed games, which carry lower margins than our self-developed titles.

我們的遊戲及相關加值服務的毛利率為 66.7%，去年同期為 69.5%。下降的主要原因是授權遊戲的淨收入佔比較高，而授權遊戲的利潤率低於我們自主開發的遊戲。

Our gross profit margin for Youdao was 47.8%, compared with 49.9% in the same period of last year. The decrease was mainly due to reduced revenue contribution from learning services.

有道的毛利率為 47.8%，去年同期為 49.9%。下降的主要原因是學習服務收入貢獻減少。

Gross profit margin for NetEase Cloud Music was 31.9% in the fourth quarter, versus 30.3% in the same period a year ago. The margin improvement primarily resulted from increased revenue from membership subscriptions and continued cost management improvement.

網路易雲音樂第四季的毛利率為 31.9%，去年同期為 30.3%。利潤率的提高主要得益於會員訂閱收入的增加和成本管理的持續改善。

For our innovative businesses and others, gross profit margin was 37.8%, compared with 34.4% in the fourth quarter of 2023. The increase was primarily the result of margin improvement in Yanxuan.

對於我們的創新業務和其他業務，毛利率為 37.8%，而 2023 年第四季為 34.4%。此次成長主要是由於燕軒利潤率的提高。

The operating expenses for the fourth quarter were RMB8.5 billion, or 32% of our total net revenues. Taking a closer look at our cost composition.

第四季營運費用為人民幣85億元，佔總淨收入的32%。仔細分析一下我們的成本組成。

Our selling and marketing expenses as a percentage of total net revenues were 10.5% for the fourth quarter, compared with 15.6% for the same period last year, mainly due to decreased spending on gaming promotions during the quarter. On a full-year basis, selling and marketing expenses accounted for 13.4% of net revenues, relatively stable with 13.5% in 2023.

第四季度，我們的銷售和行銷費用佔總淨收入的 10.5%，而去年同期為 15.6%，這主要是由於本季度遊戲促銷方面的支出減少。從全年來看，銷售和行銷費用佔淨收入的 13.4%，與 2023 年的 13.5% 相比，相對穩定。

Our R&D expenses as a percentage of total net revenues also remained stable year-over-year at 16.7% in the fourth quarter compared with 16.5% for the same period last year. On a full-year basis, R&D expenses accounted for 16.6% of net revenues, up slightly from 15.9% in 2023.

我們的研發費用佔淨收入總額的比例也與去年同期相比保持穩定，第四季為 16.7%，而去年同期為 16.5%。從全年來看，研發費用佔淨收入的 16.6%，略高於 2023 年的 15.9%。

We remain committed to investing in content creation and product development. We are also seeing leverage in our R&D investments longer term.

我們將繼續致力於內容創作和產品開發的投資。我們也看到，從長遠來看，我們的研發投資也發揮了槓桿作用。

The effective tax rate was 15.3% for the full year and 13.4% for the fourth quarter. As a reminder, the effective tax rate is presented on an accrual basis, and the tax credits difer for each of our entities at different time periods, depending on applicable policies and our operations.

全年實際稅率為 15.3%，第四季實際稅率為 13.4%。需要提醒的是，實際稅率是按權責發生製計算的，並且根據適用的政策和我們的營運情況，我們每個實體在不同時期可獲得的稅收抵免也不同。

Our non-GAAP net income attributable to shareholders for the fourth quarter totaled RMB9.7 billion, or USD1.3 billion, up 31% year-over-year. Non-GAAP basic earnings per ADS for the quarter was USD2.09 or USD0.42 per share. For the full year, non-GAAP net income attributable to shareholders was up 3% to RMB33.5 billion, or USD4.6 billion, which is USD7.17 per ADS or USD1.43 per share.

第四季歸屬於股東的非GAAP淨利總計人民幣97億元，即13億美元，較去年同期成長31%。本季非GAAP基本每股收益為2.09美元，即每股0.42美元。全年歸屬於股東的非GAAP淨利潤成長3%至人民幣335億元，即46億美元，即每股ADS 7.17美元或每股1.43美元。

Additionally, our cash position remains strong. As of year-end, our net cash position was about RMB131.5 billion, compared with RMB110.9 billion at the end of 2023.

此外，我們的現金狀況依然強勁。截至年底，我們的淨現金部位約為人民幣1,315億元，而2023年底為人民幣1,109億元。

In accordance with our dividend policy, we're pleased to report that our Board of Directors has approved a dividend of USD0.244 per share, or USD1.22 per ADS, for the fourth quarter.

根據我們的股利政策，我們很高興地宣布，董事會已批准第四季度每股派息 0.244 美元，或每份美國存託憑證 (ADS) 派息 1.22 美元。

Lastly, under our current USD5 billion share repurchase program starting in mid-January last year, we had repurchased approximately 21.2 million ADSs as of December 31, 2024, for a total cost of approximately USD1.9 billion.

最後，根據我們目前從去年 1 月中旬開始的 50 億美元股票回購計劃，截至 2024 年 12 月 31 日，我們已回購約 2,120 萬股美國存託股份，總成本約為 19 億美元。

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

感謝您的關注。現在我們來回答大家的問題。

(Operator Instructions) Yang Bai, CICC.

（操作員指示）楊柏，中金公司。

(spoken in foreign language) I will translate myself. Concerning FragPunk, could management share more color on its data test achievements, current preparations for launching and post-launch operational priorities. What's the company's perspective on competition within the shooter game market segment. Thank you.

（用外語說）我會自己翻譯。關於 FragPunk，管理階層能否分享更多關於其資料測試成果、目前上線準備工作以及上線後營運重點的資訊？該公司如何看待射擊遊戲市場領域的競爭？謝謝。

(spoken in foreign language)

（用外語說）

Okay. I'll do the English translation. FragPunk has done the large-scale testing, in both domestic and overseas markets. The feedback met our expectations. Players gave high appraisal for our innovative gameplay and system design and provided a lot of valuable advisers as well. After months of iteration, we're now ready to launch. After launch. We will continue to monitor player feedback, update better levels, provide new characters and crackdown treating behaviors, building a healthy gaming environment for the players.

好的。我來做英文翻譯。FragPunk 已在國內和海外市場進行了大規模測試。反饋符合我們的預期。玩家們對我們創新的遊戲玩法和系統設計給予了高度評價，並提供了許多寶貴的建議。經過數月的迭代，我們現在準備發布了。發射之後。我們將繼續關注玩家回饋，更新更好的關卡，提供新角色，並打擊不良遊戲行為，為玩家創造健康的遊戲環境。

Currently, there are multiple well-performing shooting titles in the big shooting genre, which our R&D teams have also experienced in-depth. This actually reinforces our confidence in our game, no matter in the control feelings, the system design, or the hero narratives, and also its unique art style. Everything has its unique signature and will be appealing to existing and new players. We do have confidence that the game will be successful. Thank you.

目前，大型射擊遊戲領域有許多表現優異的射擊遊戲，我們的研發團隊也對這些遊戲進行了深入體驗。這實際上增強了我們對遊戲的信心，無論是在操控感、系統設計、英雄故事，還是其獨特的藝術風格方面。每件物品都有其獨特的特色，能夠吸引現有玩家和新玩家。我們有信心這場比賽會成功。謝謝。

Yang Liu, Morgan Stanley.

楊柳，摩根士丹利。

(spoken in foreign language) I will translate my question. First, congratulate on the positive feedback from the gamers on Where Winds Meet and we see quite positive metrics on retention, DAU, et cetera, but also, we hear a lot of feedback that expects the company to improve the cosmetics and also the multiplayer gameplay in the game.

（用外語）我會翻譯我的問題。首先，恭喜玩家們對《風之交匯處》給予了正面的回饋，我們看到了玩家留存率、日活躍用戶數等指標都相當積極，但同時，我們也聽到了很多回饋，希望公司能夠改進遊戲中的裝飾品和多人遊戲玩法。

So I would like to ask what is the next stage monetization strategy for this title? And where could we see improvements? And also, I would like to ask about the overseas launch plan for this title, when and what market. Thank you.

所以我想請問一下，這款遊戲的下一階段獲利策略是什麼？我們可以在哪些方面看到改進？另外，我還想問這款遊戲的海外發行計劃，何時發行以及將在哪些市場發行。謝謝。

(spoken in foreign language)

（用外語說）

Okay. Thank you for your question. I will do translation. Where Winds Meet is widely acclaimed since its launch, demonstrating a solid performance with robust metrics. The inclusion of both single player and multiple modes has catered diverse player demands. And the monetization strategy centered around cosmetics was widely welcomed. Furthermore, our content ecosystem featuring casual and low-pressure gaming experience lays a healthy foundation for long-term operations.

好的。謝謝你的提問。我來做翻譯。《風之交會》自推出以來廣受好評，各項指標均表現穩健。遊戲同時包含單人模式和多種模式，滿足了玩家的不同需求。以化妝品為中心的獲利模式受到了廣泛歡迎。此外，我們以休閒輕鬆的遊戲體驗為特色的內容生態系統，為長期營運奠定了健康的基礎。

In the future, we will continue to focus on infusing new content, new maps to enrich our open-world experiences, creating diversified quality costumes and crafting various interesting and innovative single-play and multipart gameplay for gamers. And from time to time, we will talk to players face-to-face, collect their feedback to keep modifying and polishing our game.

未來，我們將繼續專注於注入新內容、新地圖，以豐富我們的開放世界體驗，打造多樣化的優質服裝，並為玩家精心打造各種有趣創新的單人及多章節遊戲玩法。我們會不時與玩家面對面交流，收集他們的回饋意見，以便不斷改進和完善我們的遊戲。

Regarding your question on the overseas plan, we notice that Where Winds Meet has received wide appraisal for its unique open-world style and unique interpretation of Wuxia content, which actually gained us widespread attention and anticipation from overseas audiences as well. Currently, we have started working on the overseas version, and we hope we could present that to overseas players within 2025. Thank you for your question.

關於您提出的海外計劃問題，我們注意到《風之交匯》憑藉其獨特的開放世界風格和對武俠內容的獨特詮釋獲得了廣泛好評，實際上也贏得了海外觀眾的廣泛關注和期待。目前，我們已經開始著手開發海外版本，並希望在 2025 年內將其呈現給海外玩家。謝謝你的提問。

Ritchie Sun, HSBC.

孫里奇，匯豐銀行。

(spoken in foreign language) I have two, but the first one is about Marvel Rivals. Regarding the 40 million users, can you share more about the paying propensity paying ratio? And what is the next growth strategy that we're looking at? Will we expand the marketing or eSports or even connectivity with the Marvel movies to further expand our user base? Thank you.

（用外語說）我有兩個，但第一個是關於漫威勁敵的。關於這 4,000 萬用戶，您能否分享一下付費傾向和付費比例的資訊？那麼，我們正在考慮的下一個成長策略是什麼？我們是否會拓展行銷、電子競技，甚至與漫威電影建立聯繫，以進一步擴大用戶群？謝謝。

(spoken in foreign language)

（用外語說）

Thank you for your question. Marvel Rivals, especially after Season 1, has gained wide appraisal from worldwide players. And this is a product we're going to keep investing both on development and marketing. And we do believe this is a product that we're going to keep operating, keep enhancing, keep investing for 10 years and beyond.

謝謝你的提問。Marvel Rivals，尤其是第一季之後，獲得了全球玩家的廣泛好評。我們將持續加大對這款產品的研發和行銷投入。我們堅信，我們將在未來 10 年甚至更長時間內繼續營運、不斷改進、持續投資這款產品。

And yes, we do have plans for eSports, And we're going to announce our eSports plans. Hope this eSportst plan can further enhance the overall gaming ecosystem. And to your question, yes, we're going to do a lot of crossover events and promotions with other media in the future. This is a key product we'll keep investing. Thank you for your attention.

是的，我們確實有進軍電競的計劃，我們將會公佈我們的電競計劃。希望這項電競計畫能進一步提升整個遊戲生態系統。至於你的問題，是的，未來我們會與其他媒體進行許多跨界活動和推廣活動。這是我們會持續投資的關鍵產品。感謝您的關注。

Alicia, Citigroup.

艾莉西亞，花旗集團。

(spoken in foreign language) So my question is related to Overwatch, given the games relaunch in China yesterday. So what are the company's current expectations for the game? And how will NetEase strike a balance between Marvel Rivalsl and Overwatch? Thank you.

（用外語說）我的問題與《鬥陣特攻》有關，因為這款遊戲昨天在中國重新上線了。那麼，該公司目前對這款遊戲有何預期？網易將如何平衡《漫威宿敵》和《鬥陣特攻》這兩款遊戲之間的關係？謝謝。

(spoken in foreign language)

（用外語說）

Thank you for your question. Regarding our expectations for Overwatch, it's similar to those for World of Warcraft and Hearthstone. We aim not only to just restore the operation as is, we aim to really revitalize the product and reach new highs. We are are encouraged to see that from day one of its launched, which is yesterday, from the data and the user feedback, that we are on that track.

謝謝你的提問。我們對《鬥陣特攻》的期望與《魔獸世界》和《爐石戰記》的期望類似。我們的目標不僅是恢復原有的營運模式，更是要真正重振產品，達到新的高度。令人鼓舞的是，從昨天（也就是上線的第一天）的數據和用戶回饋來看，我們正朝著這個方向前進。

Both Marvel Rivals and Overwatch are excellent superhero shooting games in this category. Both well designed and supported by outstanding development teams. We will strive to meet the diverse demands of each respective player community. We believe the market is large enough to accommodate two excellent games.

《漫威宿敵》和《鬥陣特攻》都是該類別中非常優秀的超級英雄射擊遊戲。設計精良，並由優秀的開發團隊提供支援。我們將努力滿足各個玩家群的不同需求。我們認為市場夠大，可以容納兩款優秀的遊戲。

Ritchie Sun, HSBC.

孫里奇，匯豐銀行。

(spoken in foreign language) Can you discuss how do the user and grossing trends look like for World of Warcraft and Hearthstone after a strong initial boost from the pent-up demand? And after this normalization, what is the next step to improve the longevity of these titles? Thank you.

（用外語說）請問在被壓抑的需求推動下，《魔獸世界》和《爐石戰記》在經歷了最初的強勁增長後，用戶數量和收入趨勢如何？在這項規範化之後，下一步該如何提高這些遊戲的壽命？謝謝。

(spoken in foreign language)

（用外語說）

Thank you for your question. 6 months after their returns, World of Warcraft and Hearthstone are still performing far better than any other time in the history. Of course, as you mentioned, that during the launch time, it's not uncommon that things will normalize, compared to the release time. We have closely collaborated with our partners at Blizzard on the upcoming content plan and we believe we will reignite players' engagement.

感謝您的提問。魔獸世界和爐石戰記回歸六個月後，其表現仍遠超以往任何時期。當然，正如您所提到的，在發布初期，情況會逐漸恢復正常，與正式發佈時相比，這並不罕見。我們與暴雪娛樂的合作夥伴就即將推出的內容計劃進行了密切合作，我們相信這將重新點燃玩家的參與熱情。

And for the long term, we have established a strong trust with Blizzard development team and are committed to addressing feedback from Chinese players to improve their gaming experience in the localized way. Thank you for your question.

從長遠來看，我們與暴雪開發團隊建立了牢固的信任，並致力於以在地化的方式回應中國玩家的回饋，以改善他們的遊戲體驗。謝謝你的提問。

Lincoln Kong, Goldman Sachs.

林肯·孔，高盛。

(spoken in foreign language) So my first question is about our overseas markets. After the Marvel Rivals success and also some of the adjustments of our overseas studios, how should we think about our future expansion strategy in the overseas markets? So we follow Marvel Rivals and Fragpunk more, those are self-developed games. How should we think about our advantage in the overseas markets?

（用外語說）那麼我的第一個問題就是關於我們的海外市場。在《漫威勁敵》取得成功以及我們對海外工作室進行了一些調整之後，我們應該如何思考未來在海外市場的擴張策略？所以我們更關注 Marvel Rivals 和 Fragpunk，這些都是我們自己開發的遊戲。我們該如何看待在海外市場的優勢？

The second question is about the AI in the game. So after the success of DeepSeek and its huge influence on dropping costs. How would NetEase integrate our AI into our current game portfolio as well as our future pipeline? Could management share with us more around gameplay innovations, user interactions, production efficiency or cost discipline, any aspects related to AI.

第二個問題是關於遊戲中的人工智慧。因此，在DeepSeek取得成功並大幅降低成本之後。網易將如何將我們的人工智慧技術融入我們現有的遊戲產品組合以及未來的產品線中？管理層能否與我們分享更多關於遊戲玩法創新、用戶互動、生產效率或成本控制等方面的信息，以及任何與人工智慧相關的方面？

(spoken in foreign language)

（用外語說）

Okay. I will do the translation. So to your question, we realize that the user demands and their preferences in overseas markets are not the same as those in China. And we actually pay a lot of attention to support our overseas studios, to support the creators in the overseas markets to create content that meets the local demands in the overseas markets. So there's no change on our commitment and our strategy to support the really high-quality studios and master creators to create very creative games for overseas markets. That's the answer to the first question.

好的。我來翻譯。所以對於您的問題，我們意識到海外市場的使用者需求和偏好與中國市場的使用者需求和偏好並不相同。我們非常重視支持海外工作室，並支持海外市場的創作者創作符合海外市場本地需求的內容。因此，我們支持真正高品質的工作室和大師級創作者為海外市場打造極具創意的遊戲的承諾和策略並沒有改變。這就是第一個問題的答案。

And the second question, regarding AI. AI is and will significantly increase the efficiency in the R&D process throughout the development pipeline. There's no doubt about that. We have been doing that and we're going to do that in the future. And also, there are many, many other applications of AI in gaming. For example, in games, it could help users to better engage with the content and for new gamers to get onboard more easily, and we're exploring that in a massive way as well. And we believe AI is going to make huge positive contributions in the R&D process and the creative process for the gaming industry. We are very positive about that. Thank you for your question.

第二個問題是關於人工智慧的。人工智慧已經並將繼續顯著提高整個研發流程的效率。這點毋庸置疑。我們過去一直這樣做，將來也會繼續這樣做。此外，人工智慧在遊戲領域還有許多其他應用。例如，在遊戲中，它可以幫助使用者更好地參與遊戲內容，並讓新玩家更容易上手，我們也正在大力探索這方面的可能性。我們相信人工智慧將在遊戲產業的研發過程和創作過程中做出巨大的正面貢獻。我們對此非常樂觀。謝謝你的提問。

Lei Zhang, Bank of America.

張磊，美國銀行。

(spoken in foreign language) My first question is regarding the game of Ananta that got game approval recently. Should we expect it to be launched in 2025? And given the competitive landscape of ACG games, how should do we think about its positioning and the differentiation strategy here?

（用外語）我的第一個問題是關於最近獲得遊戲批准的 Ananta 遊戲。我們應該期待它在 2025 年發布嗎？鑑於 ACG 遊戲的競爭格局，我們應該如何看待它的定位和差異化策略？

Secondly, just want to follow-up on the sales and marketing expenses, which had a meaningful reduction in Q4, so I want to know the driver and whether we have changed the sales and marketing strategy? And going forward, how should we look at the sales and marketing trend in 2025? Thank you.

其次，我想跟進一下銷售和行銷費用，該費用在第四季度大幅下降，所以我想知道其原因以及我們是否改變了銷售和行銷策略？展望未來，我們該如何看待 2025 年的銷售和行銷趨勢？謝謝。

(spoken in foreign language)

（用外語說）

So I will translate the first question first. Yes. So we have completed an offline test for Ananta this January. And the feedback is honestly quite positive. The development is progressing smoothly and on track and the team is growing in an orderly manner as well. For competition, we believe competition is a good thing. And it actually reflects that there's interests in the market in this genre of games, and there are unmet demands there.

那我先翻譯第一個問題。是的。今年一月，我們完成了 Ananta 的離線測試。而且反饋確實相當正面。開發工作進展順利，一切都在按計畫進行，團隊也有序壯大。我們認為競爭是件好事。這實際上反映出市場對這類遊戲感興趣，並且存在尚未滿足的需求。

As long as we meet the players’ expectations, we're confident that we can deliver outstanding products. Currently, we are focusing on refining our content and keep developing the product. And we plan to invite more players for testing when we are ready.

只要我們滿足玩家的期望，我們就有信心能夠提供出色的產品。目前，我們正專注於完善內容並持續開發產品。我們計劃在準備好後邀請更多玩家參與測試。

(spoken in foreign language)

（用外語說）

So regarding the marketing spending decrease in Q4. As you know, we keep innovating our marketing engine and exploring more efficient ways, tools and mechanism for our marketing operations. And this actually is a reflection of our improved efficiency in terms of marketing operations. Thank you.

所以，關於第四季行銷支出下降的問題。如您所知，我們不斷創新行銷引擎，探索更有效率的方式、工具和機制來進行行銷活動。這實際上反映了我們在行銷營運方面效率的提高。謝謝。

Felix Liu, UBS.

瑞銀集團的劉菲利克斯。

(spoken in foreign language) Let me translate myself. My question is on the news of recent organizational changes. We noted there have been quite a few changes within both of our domestic and overseas studios. Could management share the reasons and consideration behind these changes? And how should we think about your mid- and long-term investment plan for new games?

（用外語說）讓我自己翻譯一下。我的問題是關於最近有關組織架構變動的新聞。我們注意到，我們的國內和海外工作室都發生了一些變化。管理階層能否分享一下這些變動的原因和考量？那麼我們該如何看待您在中長期內對新遊戲的投資計畫呢？

(spoken in foreign language)

（用外語說）

Okay. I will do the do the translation. When we allocate resources among different products across different studios, no matter for our domestic or our overseas studios, we pay a lot of attention on a lot of key attributes. for example, the quality of the work, and whether the work is going to meet the demands of players when the work is released to the market in the future, as well as the production efficiency of the work and everything. So if we can foresee that when the product faces market years later, it's likely not welcomed by players, we will very firmly hit the brakes.

好的。我會負責翻譯。當我們在不同工作室的不同產品之間分配資源時，無論是國內工作室還是海外工作室，我們都會非常關注許多關鍵屬性。例如，作品的質量，作品未來上市後是否能滿足玩家的需求，以及作品的製作效率等等。因此，如果我們預見到幾年後當產品上市時，它可能不會受到玩家的歡迎，我們將堅決踩下煞車。

And if some products are of really high quality and meet the future market demands, actually, we're going to double down. So it's all about the product itself, the quality, the development efficiency, and whether it’s going to meet the ever-growing user expectations, because game development is a long cycle, a three-year, four-year, five-year cycle. When we initiate a project, we have some assumptions. And during that development process, we'll keep monitoring to see if the product is going to be able to meet the future demands, and make resource allocation adjustments accrodingly. That's a normal part during the course of game development. We have been doing in that way for a long time. Thank you for your question.

如果某些產品品質確實很高，並且符合未來的市場需求，那麼我們實際上會加倍投入。所以一切都取決於產品本身、品質、開發效率，以及它是否能夠滿足不斷增長的用戶期望，因為遊戲開發是一個漫長的周期，一個三年、四年、五年的周期。當我們啟動一個專案時，我們會有一些假設。在開發過程中，我們將持續監控產品是否能夠滿足未來的需求，並據此調整資源分配。這是遊戲開發過程中的正常環節。我們一直以來都是這樣做的。謝謝你的提問。

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

問答環節到此結束。我謹將會議交還給布蘭迪·皮亞琴特，請她作總結發言。

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

再次感謝您今天蒞臨。如果您還有其他疑問，請隨時直接聯繫我們，祝您有美好的一天。謝謝。