In the first half of the year, NTES (09999) achieved net revenue of approximately 60.7 billion yuan, an increase of 7.0% year-on-year. The long-term operation of games and the reserve of new products is strengthening for long-term development.

NTES (09999) announced its Q2 2026 results, with net revenue of RMB 30.1 billion (USD 4.4 billion), an increase of 7.9% year-on-year. Gross profit was RMB 21.2 billion (USD 3.1 billion), up 17.5% year-on-year. The net profit attributable to shareholders was RMB 7 billion (USD 1 billion). Under non-GAAP, net profit attributable to shareholders was RMB 7.7 billion (USD 1.1 billion). Among these, net revenue from games and related value-added services was RMB 25 billion (USD 3.7 billion), an increase of 9.7% year-on-year; Youdao's net revenue was RMB 1.5 billion (USD 216.2 million), an increase of 3.5%. For the first half of 2026, net revenue was RMB 60.7 billion (USD 8.9 billion), up 7.0% year-on-year. Gross profit was RMB 42.4 billion (USD 6.3 billion), an increase of 16.2% year-on-year. The net profit attributable to shareholders was RMB 17.7 billion (USD 2.6 billion), and under non-GAAP, net profit attributable to shareholders was RMB 19 billion (USD 2.8 billion). Among these, net revenue from games and related value-added services was RMB 50.7 billion (USD 7.5 billion), an increase of 8.3% year-on-year; Youdao's net revenue was RMB 2.8 billion (USD 414.9 million), an increase of 3.6%; NTES Cloud Music's net revenue was RMB 4 billion (USD 583.4 million), an increase of 3.4%. The "Fantasy Westward Journey" series, "Identity V," "Party Animals," "Nikita: The Outrun," and "The Sixteen Sounds of Yanyun" continue to perform strongly, thanks to rich content updates, innovative gameplay, and diverse community operations. Benefiting from solid long-term operational capabilities, NTES is steadily advancing its global expansion and enhancing player engagement. For example, "The Sixteen Sounds of Yanyun" and "Marvel Showdown" further expanded into multiple markets such as North America and Europe through new content and community-centered operational initiatives. Regarding new games, "The Sea of Oblivion" will launch in July 2026 in the Chinese market, while the development of "Infinite" and "Return to Tang" is proceeding in an orderly manner, with an increasingly rich product pipeline that is more diverse in categories, gameplay, and markets. Youdao is deeply engaged in an AI-native strategy, AI . In the second quarter, Youdao launched the "Confucius 4" model, achieving industry-leading mathematical reasoning capabilities at a lower inference cost than before. Additionally, its AI agent capabilities have been enhanced to support autonomous execution of complex office and learning tasks. NTES Cloud Music continues to improve its music-centric ecosystem by fostering unique communities and enriching its differentiated content supply around original music, further increasing community engagement. Meanwhile, the subscription member base continues to grow, driving the commercialization progress centered on music. "Our robust performance in the first half of 2026 fully demonstrates that players remain enthusiastic about NTES's new and classic games, showcasing our ability to create game content that combines distinct characteristics, fresh experiences, and lasting appeal," said Mr. Ding Lei, CEO and Chairman of NTES. "While strengthening long-term operational capabilities and new product reserves, we will further focus on original gameplay, cutting-edge technology, and global market expansion to pave the way for the company's sustainable growth." "Looking to the future, we will continue to create original content that leads industry trends, cultivate evergreen game brands, and build vibrant and sticky player communities. With solid and efficient execution capabilities and an ever-expanding global layout, we are committed to pushing creative boundaries, delivering excellent gaming experiences, and creating long-term value for players, partners, and shareholders," Mr. Ding Lei concluded.