NetEase Inc (NTES) 2025 Q1 法說會逐字稿

Good day, and welcome to the NetEase first-quarter 2025 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Helen Wu. Please go ahead.

大家好，歡迎參加網易2025年第一季財報電話會議。今天的會議正在錄製中。現在，我想將會議交給 Helen Wu。請繼續。

Thank you, operator. Please note that today's discussion will contain forward-looking statements relating to the future performance of the Company and are intended to qualify for the Safe Harbor from liability as established by the US Private Securities Litigation Reform Act.

謝謝您，接線生。請注意，今天的討論將包含與公司未來業績有關的前瞻性陳述，旨在符合美國私人證券訴訟改革法案所規定的免於承擔責任的安全港條款。

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.

此類聲明並非對未來績效的保證，且受某些風險和不確定性、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的新聞稿和本次討論中提到的結果大不相同。

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 the announcements and filings on the Hong Kong Stock Exchange’s website. The Company does not undertake any obligation to update this forward-looking information except as required by law.

有關可能影響網易業務和財務業績的風險因素的一般性討論包含在公司向美國證券交易委員會提交的某些文件中，包括其 20-F 表年度報告，以及香港證券交易所網站上的公告和文件中。除法律要求外，本公司不承擔更新此前瞻性資訊的任何義務。

During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the first-quarter 2025 earnings news release issued earlier today.

在今天的電話會議中，管理階層還將討論某些非公認會計準則財務指標，僅供比較之用。有關非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務結果的調節，請參閱今天早些時候發布的 2025 年第一季財報新聞稿。

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’s senior management are Mr. William Ding, Chief Executive Officer; and Mr. Bill Pang, Vice President of Corporate Development.

提醒一下，本次會議正在錄製中。此外，投資者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。今天參加電話會議的網易高層包括執行長丁磊先生和企業發展副總裁彭志強先生。

I will now turn the call over to Bill, who will read the prepared remarks on William's behalf.

現在我將把電話轉給比爾，他將代表威廉宣讀準備好的演講稿。

Thank you, Helen, 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.

謝謝海倫，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，所有百分比都是基於人民幣。

We started 2025 with strong momentum. Innovative content and exceptional operations continue to underpin our growth. As we further globalize and diversify our expanding game portfolio, our total net revenue increased 7% year over year. Alongside the success of our new titles, our flagship titles continued to captivate players throughout the first quarter, reaching new record highs after decades of operations. This combination of new hits and long-time fan favorites drove our total net revenue from gaming and value-added services, up by 12% year over year to RMB24.0 billion.

我們以強勁的勢頭開啟了2025年。創新的內容和卓越的營運持續支撐我們的成長。隨著我們進一步全球化和多樣化我們不斷擴大的遊戲組合，我們的總淨收入同比增長了 7%。除了新遊戲的成功之外，我們的旗艦遊戲在第一季繼續吸引玩家，並在數十年的營運後創下了新的紀錄。新熱門遊戲和長期深受玩家喜愛的遊戲相結合，推動我們的遊戲和增值服務總淨收入年增 12%，達到 240 億元人民幣。

Several new titles have recently debuted globally, and more players around the world are embracing our games than ever before. We now have a rich and growing global portfolio of games that spans a range of diverse genres, reinforcing our competitive edge in the dynamic gaming landscape with innovations that elevate our offerings and the industry as a whole.

最近，全球推出了多款新遊戲，全球對我們的遊戲的喜愛程度比以往任何時候都要高。現在，我們擁有豐富且不斷成長的全球遊戲組合，涵蓋了不同類型的遊戲，並透過創新提升我們的產品和整個產業，從而增強了我們在動態遊戲領域的競爭優勢。

Starting with Marvel Rivals, its successful launch last December marked a major milestone in our portfolio and a meaningful step forward in our globalization journey. Backed by a critically acclaimed gaming experience and dedicated live operations, it has continued to build strong momentum among players worldwide.

從《漫威對手》開始，它於去年 12 月成功推出，標誌著我們產品組合的一個重要里程碑，也是我們全球化進程中邁出的重要一步。憑藉廣受好評的遊戲體驗和專注的現場運營，它在全球玩家中繼續保持強勁勢頭。

In the first quarter, player engagement remained high, and the launch of Season 2 in April brought renewed excitement. Themed around Hellfire Gala, a once-a-year celebration of mutant culture and identity, the seasonal update introduced a new map, new hero and fresh team-ups, welcoming both veteran players and newcomers to the living island.

第一季度，玩家參與度依然很高，而 4 月推出的第二季又帶來了新的興奮點。以地獄火盛會為主題，這是一年一度的變種人文化和身份慶典，季節性更新引入了新地圖、新英雄和新團隊，歡迎老玩家和新玩家來到這個生機勃勃的島嶼。

Following the update, Marvel Rivals reclaimed its number one position on Steam's global top seller chart. To deepen our connection with the player community, we are moving to a two-month season cadence starting with Season 3, while keeping the momentum high by introducing a new hero each month. With continous development and iteration, we are committed to delivering a distinctive and evolving gaming experience to players worldwide.

更新後，《Marvel Rivals》重新奪回 Steam 全球暢銷榜第一的位置。為了加深與玩家社群的聯繫，從第 3 季開始，我們將改為每兩個月一個賽季，同時透過每月推出一位新英雄來保持高勢頭。透過不斷的開發和迭代，我們致力於為全球玩家提供獨特且不斷發展的遊戲體驗。

Next is FragPunk, our fast-paced five-versus-five tactical shooter game, that has energized global fans with a sleek shooting experience, innovative shard cards, and bold art expression. Within just three days of its PC launch in March, the game achieved over 110,000 peak concurrent players and became number six on Steam's global top sellers chart. Building on this momentum, we launched Chapter 2 of Season 1 on April 29, with over 70 brand-new shard cards, along with updated heroes and maps. With the update, FragPunk also debuted on consoles, making the game available to an even broader player base. As we continue pushing the boundaries of the shooter experience with systematic innovation and upgrades, we are also growing the game’s community and hope to make FragPunk one of our evergreen titles.

接下來是 FragPunk，我們的快節奏五對五戰術射擊遊戲，它以流暢的射擊體驗、創新的碎片卡和大膽的藝術表現激發了全球粉絲的熱情。該遊戲於 3 月在 PC 平台上發布後僅三天，同時線上玩家數量就突破 11 萬人，並躍居 Steam 全球暢銷遊戲排行榜第六位。在此勢頭的基礎上，我們於 4 月 29 日推出了第 1 季第 2 章，其中包含 70 多張全新碎片卡以及更新的英雄和地圖。隨著更新，FragPunk 也在遊戲機上首次亮相，讓更廣泛的玩家群可以玩這款遊戲。隨著我們繼續透過系統創新和升級來突破射擊遊戲體驗的界限，我們也在不斷擴大遊戲社區，並希望將 FragPunk 打造成我們的常青遊戲之一。

We also just launched the much anticipated Once Human mobile edition on April 24. It quickly gained global attention, claiming the top spot on iOS download charts in more than 160 regions. The optimized handheld experience is highly valued by mobile players, as we retained the depth of the PC version while featuring cross-platform play, progression and rewards. Meanwhile, the mobile launch generated even more community enthusiasm across platforms, driving the game to the number five spot on Steam's top sellers chart. Across PC and mobile, our open world PvP and PvE phenomena is reaching more users.

我們也於 4 月 24 日推出了備受期待的《Once Human》行動版。它迅速引起了全球關注，在超過 160 個地區的 iOS 下載排行榜上名列前茅。優化的掌上遊戲體驗受到行動玩家的高度重視，因為我們保留了 PC 版本的深度，同時具有跨平台遊戲、進程和獎勵。同時，行動端的發佈在各個平台上激發了更多的社群熱情，推動該遊戲在 Steam 暢銷榜上排名第五。在 PC 和行動裝置上，我們的開放世界 PvP 和 PvE 現象正在吸引更多用戶。

Where Winds Meet has continued to draw players into its immersive world since its breakout domestic launch in December. Its ability to blend subtle storytelling, a richly layered historical setting and high-fidelity graphics has made Where Winds Meet a game changer in the open-world Wuxia genre. We added more fresh content on March 28, introducing Hexi, a brand-new district set against a stunning desert landscape and attracting a drove of new players. By the end of March, more than 30 million players had joined the community and player engagement continues to be high, reinforcing the game's long-term potential. We are excited to build on its success and reach more players, with plans to launch the game in more regions across PC, mobile, and console platforms later this year.

自 12 月在國內推出以來，《風之交界處》持續吸引玩家進入身臨其境的世界。《風雲際會》將精妙的故事情節、層次豐富的歷史背景和高保真的圖像融為一體，成為開放世界武俠遊戲的顛覆者。我們在 3 月 28 日添加了更多新鮮內容，推出了河西，這是一個以令人驚嘆的沙漠景觀為背景的全新區域，吸引了大批新玩家。截至三月底，已有超過 3000 萬玩家加入了該社區，並且玩家參與度持續居高不下，增強了該遊戲的長期潛力。我們很高興能夠在其成功的基礎上再接再厲，吸引更多玩家，並計劃今年稍後在 PC、行動和遊戲機平台的更多地區推出該遊戲。

Blizzard titles also demonstrated robust performances, driven by strategically tailoring experiences for local communities. The return of each title in 2024 reignited player enthusiasm, driving engagement to historic highs. This was especially evident with Overwatch, which broke new records for peak concurrent players upon its relaunch on February 19. A brand-new Stadium mode was launched in China this April, alongside its global release. In addition, momentum has been ongoing for World of Warcraft and Hearthstone, both of which saw consistent popularity during Chinese New Year, with targeted in-game events and localized designs. Notably, World of Warcraft achieved leading sales through live commerce on social media, providing fans with an entertaining experience in a fresh way. Hearthstone came up with culturally resonant content such as alternative art cards or signature cards inspired by Chinese painting and World of Warcraft’s Suzhou embroidery-inspired mount. These creative designs rejuvenated the long-beloved IPs by infusing fresh elements that resonate with players, engaging both long-time fans and new players. In addition, Diablo 3 entered technical testing in April, paving the way for its re-entry into the Chinese market. Together, these successes demonstrate the strength of our operating capabilities and the close collaboration with our partners. Looking ahead, we are excited to bring players even more intriguing content, created and delivered with care by passionate teams and collaborators.

暴雪的遊戲也表現出色，這得益於其為當地社區量身定制的策略體驗。2024 年每款遊戲的回歸都重新點燃了玩家的熱情，將參與度推向了歷史最高水平。這一點在《鬥陣特攻》中表現得尤為明顯，該遊戲於 2 月 19 日重新上線後打破了同時線上玩家人數的新紀錄。今年 4 月，隨著全球發行，全新的體育場模式也在中國推出。此外，《魔獸世界》和《爐石戰記》也保持著良好的發展勢頭，這兩款遊戲在中國新年期間都保持著持續的人氣，並推出了有針對性的遊戲內活動和本地化設計。值得一提的是，《魔獸世界》透過社群媒體直播實現了銷量領先，為粉絲們帶來了全新的娛樂體驗。《爐石戰記》推出了一些具有文化共鳴的內容，例如受中國畫啟發的另類藝術卡或簽名卡，以及受蘇州刺繡啟發《魔獸世界》的坐騎。這些富有創意的設計透過注入新鮮元素來讓這些長期受人喜愛的IP煥發活力，引起玩家的共鳴，既吸引了老粉絲，也吸引了新玩家。此外，《暗黑破壞神3》已於4月進入技術測試，為其重返中國市場做好了準備。這些成功共同證明了我們強大的營運能力以及與合作夥伴的密切合作。展望未來，我們很高興能為玩家帶來更多有趣的內容，這些內容由充滿熱情的團隊和合作者精心創作和提供。

As we celebrate the success of our new and returned titles, our established NetEase games continue to play a vital role in our portfolio. Our long-standing, beloved titles serve as foundational pillars and steady sources of revenue with alluring content updates and continuous gameplay enhancements that deliver timeless appeal.

在我們慶祝新遊戲和回歸遊戲成功的同時，我們成熟的網易遊戲繼續在我們的產品組合中發揮著至關重要的作用。我們長期喜愛的遊戲是我們的基礎支柱和穩定的收入來源，其誘人的內容更新和持續的遊戲玩法增強具有永恆的吸引力。

The Fantasy Westward Journey franchise is a prime example. After decades of operations, it continues to be one of China's most influential brands. In the first quarter, we celebrated Fantasy Westward Journey mobile's 10th anniversary with a range of new content updates, including a crossover with renowned animation IP Digimon. The update sparked player engagement, signaling a remarkable beginning for its next decade. Westward Journey Online II, another cherished classic, also maintained healthy traction in the first quarter with festive Chinese New Year events and interactive live streaming that reignited player passion.

《夢幻西遊》系列就是一個典型的例子。經過數十年的經營，它仍然是中國最具影響力的品牌之一。第一季度，我們慶祝了夢幻西遊手遊十週年，推出了一系列新內容更新，包括與知名動畫IP數碼寶貝的連動。這次更新激發了玩家的參與，標誌著其下一個十年的非凡開端。另一款備受喜愛的經典遊戲《大話西遊2》在第一季也保持了良好的發展勢頭，中國新年活動和互動直播重新點燃了玩家的熱情。

Another example is our iconic asymmetrical battle arena game, Identity V. First introduced to global markets in 2018, the player base greatly expanded in the first quarter, achieving a new quarterly high on top of its record-breaking momentum in 2024. The excitement extended into April, with registered players surpassing 400 million globally during Identity V's seventh anniversary celebration.

另一個例子是我們標誌性的非對稱戰鬥競技場遊戲《第五人格》。該遊戲於 2018 年首次登陸全球市場，第一季玩家數量大幅擴張，在 2024 年創下歷史新高的基礎上，再創季度新高。這種興奮感一直延續到四月，在《第五人格》七週年慶典期間，全球註冊玩家數量突破了 4 億人。

Similarly, our action-based battle royale game, Naraka: Bladepoint, has built a strong global player base since 2021. The game saw new record revenue in the first quarter, with our updated PvE content. Players can now team up and confromt formidable villains side by side, adding another layer of play through strategy, skill building, and collaboration.

同樣，我們的動作類大逃殺遊戲《Naraka: Bladepoint》自 2021 年以來已經建立了強大的全球玩家群。隨著我們更新的 PvE 內容，遊戲在第一季創下了收入新高。玩家現在可以組隊並肩對抗強大的惡棍，透過策略、技能培養和協作增加另一層遊戲樂趣。

Both Identity V Asian Games Version and Naraka: Bladepoint have also been named as the official eSports events for the 2026 Aichi-Nagoya Asian Games. Each is the first title in its genre to be included in the Asian Games, marking another breakthrough for domestically developed games on the international stage. Moreover, these veteran titles' abilities to reach new milestones highlight the strength of our long-term operations, premium content, crossover events and our increasing strength in esports operations.

《第五人格亞運會版》和《Naraka: Bladepoint》均被指定為 2026 年愛知-名古屋亞運會的官方電競項目。這三款遊戲皆為其類型遊戲首次入選亞運會，標誌著國產遊戲在國際舞台上取得另一個突破。此外，這些舊遊戲能夠達到新的里程碑，凸顯了我們長期營運、優質內容、交叉活動以及我們在電競營運方面日益增強的實力。

Moving on Eggy Party, the game further solidified its leadership in the party game genre with robust sequential growth in the first quarter. Excitement lit up Eggy Island on Chinese New Year's Eve, featuring a vibrant lineup of performances. Players jumped into the New Year celebrations, enjoying live entertainment, joining in activities with friends, and creating a night to remember. The addition of the beloved Chinese animation IP, Calabash Brothers added an extra layer of festivity, with Eggy Party attracting over 100 million players and new monthly players reaching a record high.

繼《Eggy Party》之後，該遊戲在第一季實現了強勁的連續成長，進一步鞏固了其在派對遊戲類型中的領先地位。除夕之夜，蛋島熱鬧非凡，精彩的表演節目不斷。玩家們投入新年慶祝活動中，享受現場娛樂，與朋友一起參加活動，創造一個難忘的夜晚。備受喜愛的國產動畫IP《葫蘆娃》的加入更是增添了濃濃的節日氣氛，《蛋蛋派對》累計玩家突破1億，月新增玩家數量再創新高。

As for our groundbreaking MMO game Justice Mobile, it continues to raise the bar for innovation. In March, we introduced Starry Dreamland, a virtual amusement park in the heart of the Wuxia-inspired world. Packed with familiar attractions and activities that resonate with the younger generation, this new setting quickly became a hit. Justice Mobile is also pushing technical boundaries. We continue to elevate the gaming experience, adding enhanced interaction with AI-powered NPCs, and improved lighting effects through cutting-edge graphics technology. We have also made it a lot easier and more fun for players to get creative. With our upgraded creation system, players can produce their own video clips using in-game animations, complete with custom scripts, character motions and voiceovers. It's a powerful tool that opens the door to a whole new level of creative expression.

至於我們開創性的 MMO 遊戲《Justice Mobile》，它繼續提高創新的標準。三月份，我們推出了星空夢幻樂園，位於武俠世界中心的虛擬遊樂園。這個新地方充滿了年輕一代熟悉的景點和活動，很快就受到了歡迎。Justice Mobile 也不斷突破技術界限。我們不斷提升遊戲體驗，增強與 AI NPC 的互動，並透過尖端圖形技術改善燈光效果。我們也讓玩家能夠更輕鬆、更有趣地發揮創意。透過我們升級的創作系統，玩家可以使用遊戲內動畫製作自己的影片剪輯，並配有自訂腳本、角色​​動作和畫外音。它是一個強大的工具，為全新的創意表達打開了大門。

Justice Mobile's strong momentum has expanded to more regions since its launch in Hong Kong, Macau and Taiwan last November, as has our leading basketball game, Dunk City Dynasty. Currently, Dunk City Dynasty is also targeting expansion to more regions across Western markets and Southeast Asia in May. Similarly, Racing Master has secured a solid position in Japan, Korea, and Southeast Asia, With the game topping the iOS download charts across multiple regions with each geographic launch. These solid operational metrics are a great indicator of what we can expect in other markets as we bring these titles to more regions.

《正義行動》自去年 11 月在香港、澳門和台灣推出以來，強勁的發展勢頭已擴展到更多地區，我們的主打籃球遊戲《扣籃城王朝》也是如此。目前，Dunk City Dynasty 還計劃在 5 月將業務擴展到西方市場和東南亞的更多地區。同樣，《賽車大師》在日本、韓國和東南亞佔據了穩固的地位，每次發布後，該遊戲都會在多個地區的 iOS 下載排行榜上名列前茅。當我們將這些遊戲帶到更多地區時，這些可靠的營​​運指標可以很好地預示我們對其他市場的期望。

As we work to build on the success of our existing games and introduce them to more players around the world, we have a range of exciting upcoming titles on the way. The new titles in our pipeline will continue to push the envelope of creativity and interaction, elevating our portfolio and the overall gaming experience we bring to our gaming communities.

在我們努力鞏固現有遊戲的成功並將其推向全球更多玩家的同時，我們即將推出一系列令人興奮的遊戲。我們即將推出的新遊戲將繼續突破創造力和互動性的界限，提升我們的產品組合以及我們為遊戲社群帶來的整體遊戲體驗。

MARVEL Mystic Mayhem, our Super Hero team-based tactical RPG, is currently preparing for its official worldwide launch. The Closed Beta Test 2.0 conducted in March, sparked massive passion within the community, where we gathered valuable feedback from players to aid in the final touches. With more details to be announced shortly, we eagerly anticipate introducing players to these exciting confrontations on a global scale.

我們的超級英雄團隊戰術角色扮演遊戲 MARVEL Mystic Mayhem 目前正準備在全球正式發布。3 月進行的 2.0 封閉 Beta 測試在社群中激發了巨大的熱情，我們收集了玩家的寶貴回饋以幫助完成最後的潤飾。更多細節即將公佈，我們熱切期待在全球範圍內向玩家介紹這些激動人心的對抗。

Some of our other titles under development include Destiny: Rising, our epic sci-fi RPG shooter game, featuring a new adventure set in an alternate Destiny timeline. This one is currently in active development and progressing as planned. Ananta, our highly anticipated metropolitical RPG, is also deep in development. The game draws on our years of experience in the gaming industry to deliver innovative gameplay shaped by deep player insights. Across our portfolio and pipeline, we're reaching more players through a wider range of genres and expanding our global footprint. We're launching new titles and building on the momentum of our existing hits with updates players love, all while delivering new, inspiring experiences that resonate with fans around the world. By continuing to reimagine what's possible in gaming, we help advance the industry as a whole. Our commitment to quality and innovation shapes each area of our business. Looking now at Youdao. With a relentless focus on technology-driven innovation integrated into the user experience, and a disciplined effort to foster long-term sustainability, Youdao achieved record-high first-quarter operating profit, maintaining the profitability momentum of previous quarters.

我們正在開發的其​​他一些遊戲包括《天命：崛起》，這是我們的史詩級科幻 RPG 射擊遊戲，以另一個《命運》時間線為背景展開了新的冒險。目前正在積極開發中，並按計劃進行。我們備受期待的都市政治角色扮演遊戲 Ananta 也正在深入開發中。遊戲借鑒了我們在遊戲產業多年的經驗，以深刻的玩家洞察力為基礎，提供創新的遊戲玩法。透過我們的產品組合和管道，我們透過更廣泛的遊戲類型接觸更多的玩家，並擴大我們的全球影響力。我們正在推出新遊戲，並在現有熱門遊戲的基礎上對玩家喜愛的遊戲進行更新，同時提供與全球粉絲產生共鳴的全新、鼓舞人心的體驗。透過不斷重新想像遊戲的可能性，我們幫助推動整個產業的發展。我們對品質和創新的承諾塑造了我們業務的每個領域。現在看看有道。有道堅持不懈地將技術驅動的創新融入用戶體驗，並致力於實現長期可持續發展，第一季營業利潤創歷史新高，保持了前幾季的盈利勢頭。

Learning services revenue declined in Q1, as we continued to prioritize core services with strong long-term potential. By focusing on high-demand subjects, we advanced quality operations and further strengthened the profitability. As a part of this effort, our online intelligent learning platform, Youdao Lingshi’s, upgraded its college entrance planning system to deliver more seamless and personalized guidance based on individual needs, driving exceptional user engagement and loyalty. By prioritizing AI technology in the development of our products and services, we have seen strong user reception and robust growth in AI subscription sales. Our existing applications continue to evolve, with our dictionary and translation services now delivering industry-leading accuracy and a smooth user experience, powered by our proprietary large language model, Confucius. This model innovatively integrates multiple models and leverage Online Direct Preference Optimization during training, which enhances its ability to generate responses that are aligned with users' preferences. This elevated experience has driven increasing engagement in our AI translation services.

由於我們繼續優先考慮具有強大長期潛力的核心服務，學習服務收入在第一季有所下降。聚焦熱點領域，推動優質經營，獲利能力進一步增強。作為這項努力的一部分，我們的線上智慧學習平台有道靈視升級了其大學入學規劃系統，根據個人需求提供更無縫和個人化的指導，從而提高了用戶參與度和忠誠度。透過在產品和服務開發中優先考慮人工智慧技術，我們看到了強勁的用戶反應和人工智慧訂閱銷售的強勁成長。我們現有的應用程式不斷發展，我們的字典和翻譯服務現在提供業界領先的準確性和流暢的用戶體驗，這得益於我們專有的大型語言模型孔子。該模型創新地融合了多種模型，並在訓練過程中利用了線上直接偏好優化（Online Direct Preference Optimization），增強了其產生符合用戶偏好的響應的能力。這種提升的體驗推動了我們 AI 翻譯服務的參與度不斷提高。

Youdao's online marketing services remain focused on high-quality growth. In the first quarter, sales from overseas grew sharply, driven by strengthened collaborations with overseas partners and KOLs. We also boosted operational efficiency through advanced technologies. For example, we launched Youdao MagicBox, a video creation tool that simplifies the production of high-quality advertising videos through intuitive inputs, making ad content creation easier and more time efficient.

有道的線上行銷服務仍然專注於高品質的成長。第一季度，受與海外合作夥伴及KOL加強合作的推動，海外銷售額大幅成長。我們也透過先進技術提高了營運效率。例如，我們推出了有道魔盒，這是一款影片創作工具，它透過直覺的輸入簡化了高品質廣告影片的製作，使廣告內容創作更容易、更省時。

Our smart devices segment maintained healthy year-over-year growth. Building on our leading position in China's dictionary pen market, we continue to bring new innovations to the industry. In the first quarter, we launched Youdao SpaceOne, a next-generation device equipped with a larger screen than dictionary pens and the ability to answer students' open-ended questions in real time, much like a human tutor. Powered by advanced large language models, Youdao SpaceOnecan accurately interpret images, respond with natural voice interactions and deliver highly accurate answers across a wide range of school grade levels. As our online businesses continue to explore avenues for delivering meaningful experiences in entertainment and learning, the NetEase family remains committed to enriching people's lifestyles with product and services that consistently impress our users with exceptional quality. Take Yanxuan as an example, its strong commitment to quality and innovation drove another quarter of healthy performance across our core product categories. In the first quarter, pet products and household cleaning items remained top sellers within their categories on major e-commerce platforms. Particularly, signature products maintained strong momentum, while new releases such as our car scent cup, a limited-addition New Year bathroom fragrance saw strong consumer demand. We were especially delighted that in March, one of our cat food products, specially formulated to support healthy fur, received the 2025 PET Orange Dot Award, a notable recognition from the pet industry.

我們的智慧型設備部門保持了健康的年增長。憑藉著在中國詞典筆市場的領先地位，我們不斷為產業帶來新的創新。在第一季度，我們推出了有道SpaceOne，這是一款下一代設備，配備了比字典筆更大的螢幕，能夠即時回答學生的開放式問題，就像人類導師一樣。有道SpaceOne採用先進的大型語言模型，可以準確解讀圖像，以自然的語音互動做出回應，並為各年級提供高度準確的答案。隨著我們的線上業務繼續探索在娛樂和學習方面提供有意義的體驗的途徑，網易家族仍然致力於透過產品和服務豐富人們的生活方式，不斷以卓越的品質打動我們的用戶。以嚴選為例，其對品質和創新的堅定承諾推動了我們核心產品類別又一個季度的良好表現。一季度，寵物用品、家居清潔用品持續保持各大電商平台暢銷榜首。尤其是主打產品保持強勁勢頭，而新品如汽車香薰杯、限量版新年浴室香氛等都受到消費者的強烈需求。我們特別高興的是，3 月份，我們的一款專為促進毛髮健康而配製的貓糧產品榮獲了 2025 年 PET 橙點獎，這是寵物行業的一項顯著認可。

Additionally, ESG initiatives are ongoing priorities for NetEase. Earlier today, we published our sixth annual ESG report outlining our progress toward sustainable growth, transparency and social responsibility. We believe that technology can both empower and inspire. Through AI-driven innovations, we're redefining entertainment experiences while modernizing traditional industries for safer, more efficient production. Our business growth reflects the trust our users place in us, further motivating our efforts to serve our communities. While our business has a limited environmental impact due to its predominantly online nature, we continue to enhance our carbon reduction efforts across our data centers and office campuses to strengthen operational resilience. In 2024, by prioritizing energy-saving measures within our operations, we successfully achieved a 16% reduction in greenhouse gas emissions compared to the previous year. Leading ESG rating organizations have also recognized our progress in sustainability. Notably, MSCI upgraded us from “A” to “AA ” in its latest assessment, designating NetEase as a leader among [232] (corrected by company after the call) companies in the global media and entertainment sector. S&P Global included us in its 2025 Sustainability Yearbook, and Sustainalytics has rated us as a low-risk company for the [past six] (added by company after the call) consecutive years. Each of these honors speaks to the dedication and ESG standards we uphold across our Company.

此外，ESG 計劃也是網易持續關注的重點。今天早些時候，我們發布了第六份年度 ESG 報告，概述了我們在永續成長、透明度和社會責任方面的進展。我們相信科技既能賦予力量，又能激發靈感。透過人工智慧驅動的創新，我們正在重新定義娛樂體驗，同時實現傳統產業的現代化，以實現更安全、更有效率的生產。我們的業務成長反映了用戶對我們的信任，進一步激勵我們努力服務社區。雖然我們的業務由於主要線上性質而對環境的影響有限，但我們將繼續加強資料中心和辦公園區的碳減排力度，以增強營運彈性。2024年，透過在營運中優先採取節能措施，我們成功實現了溫室氣體排放量與前一年相比減少16%。領先的ESG評級機構也認可了我們在永續發展方面的進展。值得注意的是，MSCI 在最新評估中將我們的評級從“A”上調至“AA”，將網易評為全球媒體和娛樂領域 [232] 家（電話會議後公司已更正）公司的領導者。標準普爾全球 (S&P Global) 將我們納入了其 2025 年可持續發展年鑑，而 Sustainalytics 連續 [過去六年] (電話會議後公司添加) 將我們評為低風險公司。每一項榮譽都體現了我們整個公司所秉持的奉獻精神和 ESG 標準。

As we look to the months ahead, we are encouraged by the global momentum we have established and the breadth of opportunities across our increasingly diversified game portfolio and broader NetEase family of businesses. With a robust pipeline of new releases, continued global expansion and ongoing enhancements to our most iconic franchises, we are well-positioned to sustain our growth and deepen our connection with players worldwide, creating more value for players, partners and shareholders.

展望未來，我們對已建立的全球發展勢頭以及日益多樣化的遊戲組合和更廣泛的網易業務家族中的廣泛機會感到鼓舞。憑藉強大的新發行管道、持續的全球擴張以及對我們最具代表性的系列遊戲的持續增強，我們完全有能力維持成長並加深與全球玩家的聯繫，為玩家、合作夥伴和股東創造更多價值。

That concludes William's comments.

威廉的評論到此結束。

I will now provide a brief review of our 2025 first-quarter financial results. Given the limited time on today's call, I will be presenting some abbreviated financial highlights. We encourage you to read through our press release issued earlier today for further details.

現在我將簡要回顧我們2025年第一季的財務表現。由於今天電話會議的時間有限，我將簡要介紹一些財務要點。我們鼓勵您閱讀我們今天早些時候發布的新聞稿以了解更多詳細資訊。

Total net revenue for the first quarter were RMB28.8 billion, or USD4.0 billion, representing a 7.4% increase year-over-year. Meanwhile, current contract liabilities were RMB17.7 billion, up 16% quarter over quarter. Total net revenues from our games and related VAS were RMB24.0 billion, up 12% year over year. Specifically, net revenues from online games were RMB23.5 billion, up 14% quarter over quarter and 15% year over year. This growth was primarily driven by increased revenue contributions from key PC games, such as the newly launched titles Where Wind Meet and Marvel Rivals, as well as established mobile games like Identity V.

第一季總淨營收為人民幣288億元，約40億美元，較去年同期成長7.4%。同時，流動合約負債為人民幣177億元，季增16%。我們遊戲及相關增值服務的總淨收入為人民幣240億元，較去年同期成長12%。其中，網路遊戲淨收入為人民幣235億元，季增14%，年增15%。這一成長主要得益於主要 PC 遊戲（例如新推出的《風之交界處》和《漫威對手》）以及成熟手機遊戲（例如《第五人格》）的收入貢獻增加。

Specifically, net revenues from our PC games accounted for approximately 34% of our total online games revenues, representing an increase of 13% quarter over quarter and increase of 85% year over year. Youdao’s net revenues were RMB1.3 billion, representing declines of 7% year-over-year and 3% quarter-over-quarter. This was primarily due to strategic, structural improvements in the learning services segment, which is increasingly focusing on high-demand subjects.

具體而言，來自我們電腦遊戲的淨收入約占我們網路遊戲總收入的34%，季增13%，年增85%。有道淨收入為人民幣13億元，較去年同期下降7%，季減3%。這主要歸功於學習服務部門的策略性和結構性改進，該部門越來越關注高需求科目。

NetEase Cloud Music’s net revenues were RMB1.9 billion, declining 8% from the same period last year and 1% from the previous quarter. This was primarily due to decreased revenue from social entertainment services. Net revenues for innovative businesses and others were RMB1.6 billion, decreasing by 17% year-over-year and 29% quarter-over-quarter. The decline was mainly due to decreased net revenue from Yanxuan, advertising services and certain other businesses in this segment.

網易雲音樂淨營收為19億元人民幣，較去年同期下降8%，較上季下降1%。這主要是由於社交娛樂服務收入減少。創新業務及其他淨收入為人民幣16億元，較去年同期下降17%，季減29%。下降主要由於嚴選、廣告服務及該部門某些其他業務的淨收入下降。

Gross profit for the first quarter of 2025 was RMB18.5 billion, up 9% year-over-year and 14% quarter-over-quarter. This was primarily driven by increased net revenues from online games as mentioned above. Our total gross profit margin was 64.1% in the first quarter, compared with 63.4% for the same period in 2024. Specifically, in more detail, gross profit margin for our games and related VAS was 68.8%, compared with 69.5% in the same period last year. The change was primarily due to fluctuations in product mix. Total operating expense for the first quarter was RMB8.0 billion, or 28% of our net revenues. Taking a closer look at our cost composition: Our selling and marketing expenses as a percentage of total net revenue were 9.4%, compared with 15.0% for the same period last year, mainly due to decreased spending on gaming promotions during the quarter. Our R&D expenses as a percentage of total net revenues remained stable year-over-year at 15.2% in the first quarter, compared with 15.5% for the same period last year. We remain committed to investing in content creation and product development. The effective tax rate was 15.3% for the first quarter. As a reminder, the effective tax rate is presented on an accrual basis, depending on applicable policies and our operations. Our non-GAAP net income attributable to shareholders for the first quarter totaled RMB11.2 billion, or USD1.5 billion, up 32% year-over-year.

2025年第一季毛利為人民幣185億元，較去年同期成長9%，較上季成長14%。這主要是由於上述線上遊戲淨收入的增加。我們第一季的總毛利率為 64.1%，而 2024 年同期為 63.4%。具體而言，我們的遊戲及相關加值服務的毛利率為68.8%，而去年同期為69.5%。這項變化主要是由於產品組合波動所致。第一季總營運費用為人民幣80億元，佔淨收入的28%。仔細看看我們的成本組成：我們的銷售和行銷費用佔總淨收入的百分比為 9.4%，而去年同期為 15.0%，這主要是由於本季遊戲促銷支出減少。第一季度，我們的研發費用佔總淨收入的比例與去年同期的 15.5% 相比保持穩定，為 15.2%。我們將繼續致力於內容創作和產品開發的投資。第一季有效稅率為15.3%。提醒一下，有效稅率是按應計制列示的，取決於適用的政策和我們的營運。第一季度，我們非美國通用會計準則下的股東淨利潤為人民幣 112 億元（約 15 億美元），年增 32%。

Non-GAAP basic earnings per ADS for the quarter was USD2.44 or USD0.49 per share. Additionally, our cash position remains robust, with net cash of approximately RMB137.0 billion as of March 31, 2025, compared with RMB131.5 billion at the end of 2024.

本季非公認會計準則每股美國存託憑證基本收益為 2.44 美元，即每股 0.49 美元。此外，我們的現金狀況依然強勁，截至 2025 年 3 月 31 日，淨現金約為人民幣 1,370 億元，而 2024 年底為人民幣 1,315 億元。

In accordance with our dividend policy, we are pleased to report that our Board of Directors has approved a dividend of USD0.135 per share, or USD0.675 per ADS. Lastly, under our current USD5 billion share repurchase program, which started in mid-January of 2023, we had repurchased approximately 21.6 million ADS as of March 31, 2025, for a total cost of approximately USD1.9 billion.

根據我們的股息政策，我們很高興地報告，董事會已批准每股 0.135 美元或每 ADS 0.675 美元的股息。最後，根據我們目前的 50 億美元股票回購計畫（該計畫於 2023 年 1 月中旬啟動），截至 2025 年 3 月 31 日，我們已回購約 2,160 萬股 A​​DS，總成本約為 19 億美元。

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

感謝您的關注。我們現在想開始回答你們的問題。接線員，請說？

(Operator Instructions) Miranda Zhang, Bank of America.

（操作員指示）美國銀行的米蘭達·張。

(spoken in foreign language) Thank you for taking my question. My question is about Identity V. So this game had a consistent and strong performance throughout last year, and is now one of the top-performing games among company's game portfolio.

（以外語說）感謝您回答我的問題。我的問題是關於第五人格 (Identity V) 的。因此，這款遊戲在去年全年表現穩定強勁，目前已成為該公司遊戲組合中表現最好的遊戲之一。

Can management share the reasons behind? And how to think about the game growth going forward after the company becomes higher? Any implications of the revival of your other games? Thank you.

管理階層能否分享背後的原因？當公司股價上漲後，您如何看待未來的遊戲成長？這對您的其他遊戲的復興有何影響？謝謝。

(interpreted) Thank you for your question. Yeah, you're right. Identify V, being a very unique asymmetric PvP game, has been there for six years. And during the past six years, we ever stopped keep investing, optimizing, and improving the game. And as a result, the game is not only very successful in China, it's actually in a very leading position in Japan as well.

（翻譯）感謝您的提問。是的，你說得對。《Identify V》是一款非常獨特的非對稱 PvP 遊戲，已經推出六年了。並且在過去的六年中，我們從未停止對遊戲的持續投入、優化和改進。因此，這款遊戲不僅在中國非常成功，而且在日本也處於領先地位。

You're right. Our other teams actually learned a lot from the hands-on experience of Identity V team regarding how to keep improving the continuous operation and improvement of our other games. Looking into the future, we'll keep investing more and more resources into the game Identity V and bring the fun of asymmetric PvP to more players. Thank you.

你說得對。我們的其他團隊實際上從《第五人格》團隊的實際經驗中學到了很多關於如何不斷改進我們其他遊戲的持續運作和改進。展望未來，我們將繼續在《第五人格》這款遊戲中投入更多資源，將非對稱PvP的樂趣帶給更多玩家。謝謝。

Lincoln Kong, Goldman Sachs.

林肯孔（Lincoln Kong），高盛。

(spoken in foreign language) Thank you management for taking my question. My question is about Marvel Rivals. So we have seen some user number of volatility in the recent months. How should we think about how to ensure the life cycle, the longevity of this IP?

（以外語說）感謝管理階層回答我的問題。我的問題是關於《漫威對手》的。因此，我們看到最近幾個月用戶數量有所波動。我們該怎麼去思考如何保證這個IP的生命週期、壽命？

I think the management was talking about shortening the season time length going forward and also introducing hero and the characters more frequently. So going forward, should we think about the adjustments in terms of the long-term operation and monetization strategy? Thank you.

我認為管理層正在談論縮短未來的賽季時間長度，並更頻繁地介紹英雄和角色。那麼未來我們是否應該考慮在長期營運和獲利策略方面的調整？謝謝。

(interpreted) Thank you for your question. As you mentioned, we introduced the Season 2 update in April, which achieved wide popularity among players and resulted in the significant growth of our operating metrics.

（翻譯）感謝您的提問。正如您所說，我們在 4 月推出了第二季更新，該更新受到了玩家的廣泛歡迎，並使我們營運指標顯著增長。

For season-based products, it's normal to observe fluctuations in operating metrics that align with the cadence of seasonal updates. And the process itself will actually also help solidify the user base. So starting from Season 3, we'll reduce the season update internal from 3 months to 2 months.

對於基於季節的產品，觀察與季節性更新節奏一致的營運指標波動是正常的。而這個過程本身其實也有助於鞏固用戶群。因此從第 3 季開始，我們將把季度更新間隔從 3 個月縮短至 2 個月。

And additionally, we will initialize Marvel Rivals esports event in May to develop our esports ecosystem. We believe that with more efficient content updates and our evolving esports ecosystem, we will see gradual improvement across all in-game metrics. Thank you.

此外，我們將於 5 月啟動 Marvel Rivals 電競賽事，以發展我們的電競生態系統。我們相信，隨著更有效率的內容更新和不斷發展的電子競技生態系統，我們將看到所有遊戲內指標的逐步改善。謝謝。

Felix Liu, UBS.

瑞銀的 Felix Liu。

(spoken in foreign language) Thank you management for taking our questions. Congratulations on the strong results and the strong performance of Marvel Rivals and FragPunk.

（以外語說）感謝管理階層回答我們的問題。恭喜 Marvel Rivals 和 FragPunk 取得優異成績和出色表現。

Can management share how you think about your latest strategy for overseas markets, given the backdrop of the strong performance of your domestically developed games and the news of shutdowns of some of your overseas studios? Thank you.

在你們國產遊戲表現強勁、部分海外工作室關閉的背景下，管理階層能否分享一下你們對海外市場最新策略的看法？謝謝。

(interpreted) Thank you for your question. Yeah, for a long period of time, we are actually paying a lot of attention to the overseas market, including European market, North American market, Japan, and the Korean markets. In the past period of time, we did close some of our overseas studios. But those decisions were purely made based on the positioning of the future product and the consideration of product quality.

（翻譯）感謝您的提問。是的，長期以來，我們實際上非常關注海外市場，包括歐洲市場、北美市場、日本和韓國市場。過去一段時間，我們確實關閉了一些海外工作室。但那些決定純粹是基於未來產品的定位和產品品質的考量。

As you can see since last December, our domestically made games, namely FragPunk and Marvel Rivals, they indeed achieved not bad results in overseas markets. And we believe this is in line with our judgment and our -- how we see the overseas market according to our plan. And we believe that in the future, NetEase will make more and more games suitable for global market. Thank you.

大家可以看到，從去年12月開始，我們的國產遊戲，像是FragPunk和Marvel Rivals，在海外市場確實取得了不錯的成績。我們相信這符合我們的判斷以及我們對海外市場的看法。我們也相信未來網易會做出越來越多適合全球市場的遊戲。謝謝。

Yang Liu, Morgan Stanley.

摩根士丹利的劉洋。

(spoken in foreign language) Where Winds Meet saw improving feedback and monetization. What has NetEase done here that’s proven effective, and what is the next step for this title operation? Thank you.

（用外語說）《風之交會》的回饋和貨幣化程度不斷提高。網易在這方面做了哪些有效嘗試，下一步的冠名運作是什麼？謝謝。

(interpreted) Thank you for your question. Where Winds Meet is a game that we spent five years to develop, an Asian Chinese historical background open-world game. When it was released in late December last year, it got a lot of acclaimed reviews from users. We actually pay a lot of attention to this game. It's a very important game to us.

（翻譯）感謝您的提問。《風之交界》是我們耗時五年開發的亞洲中國歷史背景的開放世界遊戲。去年12月底上市後，就獲得了不少用戶的好評。我們實際上非常關注這場比賽。這對我們來說是一場非常重要的比賽。

And in the future, we're going to keep investing in the game, namely further polishing the art representations and keep polishing the gameplays. So it will be a long-term game for us. When players play the game, we actually encourage players to play on PC because on the PC, it has a much better graphical presentations.

而未來，我們也將持續對遊戲進行投入，包括進一步打磨美術表現，不斷完善遊戲玩法。所以這對我們來說將是一場長期的比賽。當玩家玩遊戲時，我們實際上鼓勵玩家在 PC 上玩，因為 PC 上的圖形呈現效果要好得多。

Where Winds Meet, the success so far has provided us a lot of hands-on experiences. And we're going to learn from these experiences and deploy them into other products to help our other products to be successful. We believe Where Winds Meet in the coming 5 to 10 years, it's going to be one of our evergreen titles. Thank you.

風之交匯處迄今為止的成功為我們提供了許多實踐經驗。我們將從這些經驗中學習，並將其應用到其他產品中，以幫助我們的其他產品成功。我們相信，在未來 5 到 10 年內，《Where Winds Meet》將成為我們的常青作品之一。謝謝。

Ritchie Sun, HSBC.

孫紅雷，匯豐銀行。

(spoken in foreign language) Thank you management for taking my questions. Congrats on a very robust quarter of results. My question is about Once Human. The mobile version has done well in the download rank, but monetization remains quite conservative.

（以外語說）感謝管理階層回答我的問題。恭喜本季業績非常強勁。我的問題是關於 Once Human 的問題。行動版本在下載排名中表現良好，但貨幣化仍然相當保守。

So how would management raise the performance of Once Human and its potential, and what are the key competitive edge and differentiation of this product? And what are the plans to further enhance the commercialization going forward? Thank you.

那麼管理階層該如何提升Once Human的效能和潛力，而這款產品的關鍵競爭優勢和差異化優勢又是什麼呢？未來有什麼計畫可以進一步加強商業化？謝謝。

(interpreted) Thank you for your question. Once Human Mobile launch was very successful. It's achieved top downloading spot 166 regions on iOS. In the first week, we got more than 6 million new users.

（翻譯）感謝您的提問。Human Mobile 的推出一度非常成功。它在 iOS 166 個地區的下載量排名第一。第一周，我們就獲得了600多萬新用戶。

Regarding what you observed on the grossing chart, one of the nature of this game is that it's a cross-play game. Players, they can choose to play on PC or mobile using the same account. So a lot of top players, they play on both sides and choose to pay on the PC side. Actually, after the mobile version launched, from the PC side, the concurrent user, they increased by 90%, and payment actually [drove] by 500%. And it's the payment on PC actually increased -- the payment ratio from PC actually is more than 50%.

根據您在總收入榜上觀察到的情況，這款遊戲的本質之一是它是一款跨平台遊戲。玩家可以選擇使用同一個帳號在電腦或手機上進行遊戲。因此，許多頂級玩家都在兩邊玩，並選擇在 PC 端付費。實際上，在行動版本推出後，從PC端來看，同時線上用戶增加了90%，而付費實際上增加了500%。而且 PC 上的支付實際上有所增加——PC 上的支付比例實際上超過了 50%。

And that's why this -- you see when we launched the mobile game, actually, the Steam’s run count was one of the top set of charts. And so probably , the players play on PC actually kind of impacted the top grossing chart ranking on mobile.

這就是為什麼——當我們推出手機遊戲時，Steam 的運行次數實際上位居排行榜前列。因此，玩家在 PC 上玩遊戲實際上可能會影響行動裝置上最暢銷遊戲排行榜的排名。

For the specialty of the same, this is kind of a script-based, seasonal-based game. That's one difference compared to other SOC type of game. In the future, we're going to further satisfy the gamers' demands from two angles. One is we're going to add new gameplays, new scripted-based gameplays that can further satisfy the demand from users from PvE kind of exploration or PvP kind of confrontation.

就其特殊性而言，這是一種基於腳本、基於季節的遊戲。這是與其他 SOC 類型遊戲的一個不同之處。未來，我們將從兩個角度進一步滿足玩家的需求。一是我們會加入新的玩法，新的基於腳本的玩法，可以進一步滿足用戶對PvE類探索或PvP類對抗的需求。

And the other front that we're exploring is we're going to explore the prioritized ecosystem. Some of the SOC players , they have demands to, for example, open their private servers. So that's a different kind of gameplay experience, and we're going to explore how to satisfy this kind of demand. Thank you.

我們正在探索的另一個面向是探索優先生態系統。一些SOC玩家，他們有要求，例如開放他們的私人伺服器。這是一種不同的遊戲體驗，我們將探索如何滿足這種需求。謝謝。

Yang Liu, Morgan Stanley.

摩根士丹利的劉洋。

(spoken in foreign language) FragPunk's popularity declined fast after the launch stage. What can NetEase do to help FragPunk to differentiate better in the overseas FPS game competition? Thank you.

（外語）FragPunk 的受歡迎程度在發布階段之後迅速下降。網易可以做些什麼來幫助FragPunk在海外FPS遊戲競賽中更好地脫穎而出？謝謝。

(interpreted) Thank you for your question. FragPunk was actually created by a new team. From a new team perspective, we are satisfied with its performance so far. First, the game actually has a solid foundation. Its innovative card mechanism allows for rapid updates and iterations regarding gameplay modes.

（翻譯）感謝您的提問。FragPunk 實際上是由一個新團隊創建的。從新團隊的角度來看，我們對它迄今為止的表現感到滿意。首先，這款遊戲其實有著堅實的基礎。其創新的卡牌機制，可實現遊戲模式的快速更新和迭代。

We have been telling the team that it's important that we keep engaged in this market and keep refreshing and seeking for opportunities for gameplay expansions. We're committed to supporting this product in the long run -- to support the long-term operations. To achieve this, we encourage the team to make sure that we have a very solid stable, team and give the team more room and more time to keep growing.

我們一直告訴團隊，繼續參與這個市場並不斷更新和尋找遊戲擴展的機會非常重要。我們致力於長期支持該產品——以支持長期營運。為了實現這一目標，我們鼓勵團隊確保我們擁有一支非常穩固、穩定的團隊，並給予團隊更多的空間和更多的時間來不斷成長。

From the market operation perspective, we'll continue to invest into overseas markets, maintaining visibilities through all sorts of vehicles, like including tournaments, including collaborations with influencers, and other IP crossovers. This will maintain our loyal player base, while we're seeking for breakthrough opportunities. Thank you.

從市場營運的角度來說，我們會持續投入海外市場，透過各種方式維持知名度，例如賽事、與網紅的合作、IP跨界等等。這將維持我們忠實的玩家基礎，同時我們正在尋求突破的機會。謝謝。

Thomas Chong, Jefferies.

湯瑪斯‧張 (Thomas Chong)，傑富瑞 (Jefferies)。

(spoken in foreign language) Thanks management for taking my question. My question is about business allocation. Can management comment about the allocation of resources in the domestic and overseas markets over the next few years? Thank you.

（以外語說）感謝管理階層回答我的問題。我的問題是關於業務分配的。管理層能否評論一下未來幾年國內和海外市場的資源配置？謝謝。

(interpreted) Yeah. From NetEase's perspective, we believe we do have sufficient resources to do both the domestic and overseas markets at the same time. From the 20-years history we have been doingin this business, we have accumulated a lot of tools, tool chains and talent.

（翻譯）是的。從網易的角度來看，我們相信我們確實有足夠的資源同時開展國內和海外市場。從我們從事這項業務的20年歷史中，我們累積了大量的工具、工具鏈和人才。

Of course, we have shortcomings as well, for example, like how to understand the demand from overseas gamers. On that part, we'll keep improving. But from a resource allocation perspective and execution perspective, we do have sufficient resources to do both markets. Thank you.

當然我們也有不足的地方，例如如何了解海外玩家的需求。在這方面，我們會不斷改進。但從資源配置角度和執行角度來看，我們確實有足夠的資源來涵蓋這兩個市場。謝謝。

Xueqing Zhang, CICC International Corporation.

張學慶，中金國際股份有限公司。

(spoken in foreign language) Thank you, management for taking my questions, and congratulations on the solid quarter. I have two questions. My first one is about your new titles.

（以外語說）感謝管理層回答我的問題，並祝賀本季業績穩健。我有兩個問題。我的第一個問題是關於你的新頭銜。

We have noticed several new titles also achieved great performances. Which key evaluation metrics are prioritized during the product ideation and approval phases within the Company? And how shall we expect the pipeline in one to two years?

我們注意到幾款新遊戲也取得了出色的表現。在公司內部的產品構思和核准階段，哪些關鍵評估指標被優先考慮？我們預計一到兩年內管道建設會如何？

My second question is a follow-up one on esports. Congratulations on Identity V and Naraka being selected for the 2026 Asia Games for the first time. May I ask whether management plans to take this opportunity to develop international esports operations? And what's the company's long-term strategy for the esports games? Thank you.

我的第二個問題是關於電子競技的後續問題。恭喜第五人格和Naraka首次入選2026年亞運。請問管理階層是否計劃藉此機會開展國際電競業務？那麼公司對於電競遊戲的長期策略是什麼？謝謝。

(interpreted) Yeah. So thank you for the questions. We'll answer the first question first. Over the past 25 years, we have accumulated a lot of experience, tools, and talent. And our talent, our teams, they're really passionate about gaming.

（翻譯）是的。感謝您的提問。我們先回答第一個問題。在過去的 25 年裡，我們累積了大量的經驗、工具和人才。我們的人才、我們的團隊都對遊戲充滿熱情。

And talk about -- when we talk a new project, we welcome all sorts of talents with thinking -- creative thinking about game ideas. When we consider a new product case, actually, the first attribute that we consider is whether or not the core team members are passionate about gaming, are they passionate about the specific game project they're proposing, including how to execute them out over years. And if they satisfy all this threshold, we'll actively evaluate and think about this product.

說到——當我們談論一個新項目時，我們歡迎各種有思想的人才——對遊戲創意有創造性的思考。當我們考慮一個新產品案例時，實際上，我們考慮的第一個屬性是核心團隊成員是否對遊戲充滿熱情，他們是否對他們提出的特定遊戲專案充滿熱情，包括如何在多年內執行這些專案。如果他們滿足所有這些門檻，我們就會積極評估並考慮該產品。

Of course, we do have an internal evaluation system. And in the future, actually, we'll open theis platform to more game lovers outside -- talent outside if they want to join us if they have creative ideas. We welcome them.

當然，我們確實有一個內部評估體系。事實上，在未來，我們會向更多的外部遊戲愛好者、外部人才開放這個平台，只要他們有創意，願意加入我們。我們歡迎他們。

Specifically about the pipeline in the next couple of years, rest assured, don't need to worry. We have other very good product that our pipeline has not been announced yet. Thank you. (spoken in foreign language)

具體到未來幾年的管道，請放心，不必擔心。我們還有其他非常好的產品，但我們的管道尚未公佈。謝謝。（用外語說）

(interpreted) Yeah. So thank you for your question and interest about our product in the Asian Games. For a longer time, we have been actually paying a lot of attention to esports. At this time, two of our products have been selected. That's a testimony of not only the quality of the games, but also the gamer base of the games. And the -- we hope our self-developed game not stop as being part of Asian Games. We hope them to be included in higher level on esports on big games.

（翻譯）是的。感謝您對我們亞運產品的提問與關注。事實上，我們長期以來一直非常關注電子競技。目前，我們的兩款產品已被選中。這不僅證明了遊戲的質量，也證明了遊戲的玩家基礎。並且——我們希望我們自主開發的遊戲不會停止成為亞運的一部分。我們希望他們能夠被納入大型電子競技的更高水準。

Talking about esports operation, in Hangzhou, we have the largest e-sports stadium. And we continuously run esports tournaments here. And we also -- in Shanghai, we have our own private esports stadium which is one of the biggest. And we have continuous esports operation based there as well. In the long run, we're going to -- in the long term, continue to invest into esports operations. Thank you.

說到電競運營，在杭州，我們擁有最大的電競館。我們在這裡持續舉辦電競錦標賽。我們在上海也有自己的私人電競館，它是最大的電競館之一。我們也在那裡持續開展電子競技業務。從長遠來看，我們將繼續投資電子競技營運。謝謝。

And operator, for the sake of time, we have time for one more question.

接線員，由於時間關係，我們還有時間再回答一個問題。

Alicia Yap, Citigroup.

花旗集團的 Alicia Yap。

(spoken in foreign language) Thanks management for taking my questions. With the help of AI, it seems like game studios are able to produce content updates very quickly and then also shorten the overall development time for the expansion pack.

（以外語說）感謝管理階層回答我的問題。在人工智慧的幫助下，遊戲工作室似乎能夠非常快速地製作內容更新，從而縮短擴充包的整體開發時間。

Will that affect and change how NetEase’s plans to expansion pack release timing and also the game promotion targeting, as AI increasingly taking a more important part of the game development and game publishing? Thank you.

隨著人工智慧在遊戲開發和遊戲發行中扮演越來越重要的角色，這是否會影響和改變網易的擴充包發佈時間規劃以及遊戲推廣目標？謝謝。

(interpreted) Thank you for your question. We actually have been using AI in our game development and gamers experience for a long time, at least five years -- in the past five years. So we never stopped investing into technologies, including AI technologies. And a lot of this result actually has been deployed in -- applicated in our game development and content production.

（翻譯）感謝您的提問。實際上，我們在遊戲開發和遊戲玩家體驗中使用人工智慧已經很長時間了，至少有五年了——在過去的五年裡。所以我們從來沒有停止對科技的投資，包括人工智慧技術。事實上，許多成果已經應用在我們的遊戲開發和內容製作中。

For AI, in general, we believe it's not specifically attached to -- specific one companies. It should be a whole industry kind of thing. In the whole industry, everyone are -- will be actively adopting AI technology. Just every company with their different contracts, maybe the breadth or the deepness, how they apply AI technology, might be different.

對於人工智慧，一般來說，我們認為它並不是專門針對某家特定的公司。這應該是整個行業的事情。在整個行業中，每個人都將積極採用人工智慧技術。只是每家公司都有不同的合同，也許廣度或深度，他們如何應用人工智慧技術，可能會有所不同。

I want to emphasize again, actually, AI is pretty important, not only to game industry and to many other businesses as well. It's been greatly important thing. Thank you.

我想再次強調，其實人工智慧非常重要，不僅對遊戲產業，對許多其他產業也都很重要。這是一件非常重要的事情。謝謝。

And that concludes the question-and-answer session. I would like to turn the conference back over to Helen Wu for any additional or closing comments.

問答環節到此結束。我想將會議交還給 Helen Wu，請她發表任何補充或結束評論。

Thank you once again for joining us today. If you have any further questions, please feel free to contact us directly. Have a nice day. Goodbye.

再次感謝您今天加入我們。如果您還有其他問題，請隨時直接與我們聯繫。祝你今天過得愉快。再見。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。