1. What are NetEase-S's Q4 performance expectations? As of December 10, 2025, according to quarterly performance forecasts, the company's Q4 consensus revenue is projected at RMB 26.9–30.3 billion, representing year-over-year growth of 0.6%–13.5%. Net profit is expected to range between RMB 7.6–11.6 billion, with a YoY change of -13.5% to +32.2%. Adjusted net profit is forecasted at RMB 8.5–10.0 billion, reflecting a YoY change of -12.7% to +3.1%. Investors should monitor whether actual results exceed expectations upon the earnings release.

2. Latest Analyst Views on NetEase-S Hua'an Securities noted that NetEase-S reported Q3 2025 revenue of RMB 28.4 billion, up 8.2% YoY, with gross margin improving by 1.2 percentage points to 64.1%. Adjusted net profit rose 26.7% YoY to RMB 9.5 billion, with net margin increasing by 4.9 percentage points to 33.5%.

- **Gaming**: Revenue grew 11.8% YoY to RMB 23.3 billion, driven by strong performance from *Fantasy Westward Journey* (PC) and *Justice Online*. *Fantasy Westward Journey* (PC) set a new peak concurrent user record of 3.58 million. Overseas, *Destiny: Stellar* topped download charts in multiple regions, with *Diablo IV* and other titles set for release. - **Youdao (Education)**: Revenue rose 3.6% YoY to RMB 1.63 billion, supported by AI integration, including the launch of the new AI-powered Youdao Q&A Pen SpaceX. - **Cloud Music**: Revenue declined 1.8% YoY to RMB 1.96 billion, though the introduction of AI-powered sound-master features enhanced user experience.

Kaiyuan Securities highlighted that NetEase-S's Q3 2025 revenue reached RMB 28.4 billion (+8.2% YoY), with net profit attributable to shareholders up 31.8% YoY to RMB 8.6 billion. Gross and net margins improved by 1.2 and 5.4 percentage points, respectively, to 64.1% and 31.0%. Contract liabilities grew 25% YoY to RMB 19.5 billion, indicating potential for sustained earnings growth. The company forecasts 2025–2027 net profits of RMB 35.7/38.3/42.9 billion, with current P/E ratios of 16.6x/15.5x/13.8x.

**Risk Warning**: The data or cases presented are for reference only and should not be the sole basis for investment decisions. Stock investments carry risks, including market volatility, corporate performance, and policy changes. Investors should conduct thorough research and assess risk tolerance before investing.