Chinese game maker NetEase (9999) posted an 11.3 percent rise in adjusted net profit to 37.3 billion yuan (HK$42.2 billion) last year, but the fourth quarter figure missed analysts’ expectations.
NetEase dropped 4 percent in the US pre-market trading following the results.
Net revenues for 2025 grew by 6.9 percent year-on-year to 112.6 billion yuan, of which, net revenues from games and related value-added services climbed by 10.2 percent to 92.1 billion yuan, according to a filing on Wednesday.
In the last quarter, NetEase’s adjusted net income plunged by 26.8 percent to 7.1 billion yuan despite net revenues rising by 3 percent to 27.5 billion yuan.
Games and related value-added services net revenues were 22.0 billion yuan in the quarter, up by 3.4 percent from the same quarter of 2024.
Chief executive William Ding Lei said the company has been systematically applying AI throughout game development and gameplay, where it is already driving meaningful improvement in production efficiency and unlocking new interactive experiences for players that were previously out of reach.
