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Chinese internet and games provider NetEase's (9999) net profit dropped 6.6 percent year-on-year to 17.7 billion yuan (HK$20.65 billion) for the first six months of this year, despite the rebost growth in the games segment.
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Revenue rose 7 percent to 60.7 billion yuan during the period.
Games and related value-added services income increased by 8.3 percent to 50.7 billion yuan, thanks to self-developed games, such as the Fantasy Westward Journey franchise, Where Winds Meet and Eggy Party.
Its internet technology subsidiary Youdao saw a 3.6 percent increase in revenue, reaching 2.8 billion yuan, mainly driven by its learning services and online marketing services.
Revenue from NetEase Cloud Music (9899) inched up 3.4 percent to 4 billion yuan, primarily due to higher net revenues from online music services, driven by growth in sales of membership subscriptions.
In contrast, innovative businesses and others' net revenues fell 4 percent to 3.2 billion yuan, dragged down by its e-commerce business.
Its US-listed shares decreased 3.3 percent in the pre-trading market.
"Our robust performance in the first half of 2026 reflects players' growing enthusiasm for both our newly launched and established games, underscoring our ability to create distinctive and refreshing experiences with lasting appeal,: said William Ding Lei, chief executive and director of NetEase.
The company will remain committed to creating original content that shapes industry trends, building evergreen franchises, and cultivating vibrant communities that sustain player engagement in the future, he added.
