$NTES-S (09999.HK)$ Announcing the performance in the third quarter of 2024, the net income is 26.2 billion yuan (RMB), of which the net income from gaming and related value-added services is 20.9 billion yuan; net income from Youdao is 1.6 billion yuan, an increase of 2.2% year-on-year; net income from Netease Cloud Music is 2 billion yuan, an increase of 1.3% year-on-year; net income from innovation and other businesses is 1.8 billion yuan. Gross profit is 16.5 billion yuan, and the net income attributable to the company's shareholders is 6.5 billion yuan.

The announcement stated that the company has launched popular new products and successfully expanded existing games to new regions, further strengthening Netease's competitive advantage in broader markets and segmented categories.

"Identity V" mobile game has steadily increased in popularity since its launch in July, further meeting the growing demand of players for action competitive games. In September, it released a season update and ranked fourth on the iOS bestseller list. After launching in Japan in August, "Speed Drifters" quickly topped the free charts on Apple and Google's app stores. "World of Warcraft" and "Hearthstone" have returned to the Chinese market, with players' enthusiasm reaching unprecedented heights. Along with the active participation of players, the daily active users of "World of Warcraft" have increased by over 50% compared to before the suspension, while "Hearthstone" has achieved a significant increase of 150% in daily active users.

Popular games such as "Identity V" and "Speed Drifters" continue to be popular, demonstrating Netease Games' long-term operational capabilities. Highly anticipated in-development products like "Destiny: Rising" and "Marvel Magical Chaos" have been publicly unveiled, and "Marvel Duel" and "Yan Yun Sixteen Sounds" will also be launched in December, continuously enriching the game product matrix.

Youdao's profitability has significantly improved, achieving a year-on-year turnaround in operating profit. This is the first time in Youdao's history to achieve profitability in the third quarter, and the quarterly operating profit has also reached a historic high.

Netease Cloud Music continues to promote the high-quality development of the music-centric ecosystem, further expanding the subscriber base, and driving sustained healthy growth in online music revenue.

"In the process of diversification and globalization, we have continuously launched various new games to attract global players, achieving milestone breakthroughs," said Mr. Ding Lei, CEO and Director of Netease. "In the development journey of over 20 years, Netease Games has been enduring, with player experience always being our primary consideration for innovation and operation. We will continue to prioritize player needs, drive development with innovation, and deliver excellent gaming experiences to more players at home and abroad."

"In addition to gaming, netease cloud music and youdao are also growing steadily. Mr. Ding Lei summarized, 'We are committed to bringing unique, attractive, and influential product experiences to our user base, driving netease to continuously create success.'"