NETEASE MUSIC (09899) announced its 2025 financial performance, reporting revenue of approximately 7.759 billion yuan and a gross profit of about 2.77 billion yuan, representing a year-on-year increase of 3.3%. Annual profit reached around 2.746 billion yuan, up 75.4% compared to the previous year. The adjusted net profit was approximately 2.86 billion yuan, marking a significant growth of 68.2%.
The company continues to expand and deepen its music-oriented community ecosystem. Throughout 2025, enhancements in user experience and strengthened brand identity drove growth in both user base and platform activity. The ratio of daily active users to monthly active users remained above 30%, showing steady improvement from 2024. Average daily music listening time on mobile devices also increased.
Notably, the company's efforts to provide high-quality content and experiences, combined with its trend-setting aesthetics and design, resonated strongly with young music enthusiasts, who are increasingly becoming loyal users of the platform. By continuously enriching its licensed music library and actively promoting original Chinese-language music, the company has built a diverse and distinctive content repository. In 2025, it introduced content from Korean labels, complementing its Chinese music catalog, and expanded offerings of soundtracks and variety show music while further strengthening specialized genres such as rap and Western pop.
The company also deepened collaborations with labels in content promotion and artist-centered activities. Its unique independent musician ecosystem continued to gain momentum, with self-produced works like "Two Difficulties" and "What If" receiving widespread recognition both on and off the platform.
From a product perspective, the company maintained its user-first approach, focusing on innovation and excellence in music discovery and listening experiences. In 2025, it upgraded its core product framework to enhance visual appeal and better cater to diverse user preferences for music discovery. Personalized content distribution was advanced, and the company launched its self-developed AI-powered recommendation model, Climber. Innovative features such as smart transition Automix, the "Divine Light Player," and landscape mode delivered more immersive audio-visual experiences. Community scenarios were expanded and enhanced to encourage greater user participation and interaction.
The company's music-centric monetization capabilities continued to demonstrate robust growth. In 2025, membership subscription revenue increased by 13.3% year-on-year, driven by growth in subscriber numbers, although partially offset by a slight dilution in average revenue per paying user due to changes in membership structure. Importantly, the rapidly growing subscriber base exhibited stronger engagement, with improvements in both retention and activity levels. By continuously enhancing membership benefits in areas such as content, features, and customization, the company further encouraged users to pay for premium experiences.
Beyond commercial growth, profitability also improved in 2025. The gross profit margin reached 35.7%, a notable increase from 33.7% in 2024. Operating profit rose by 38.5% year-on-year, primarily benefiting from business scale expansion, improved monetization of online music services, prudent cost management, and operating leverage.