NetEase-S (09999) saw its shares rise more than 6% in morning trading. At the time of reporting, the stock was up 6.23%, trading at HK$182.40 with a turnover of HK$1.12 billion.

On May 21, NetEase released its financial results for the first quarter of 2026. The company reported revenue of RMB 30.6 billion, a year-on-year increase of 6.1%. Net profit attributable to shareholders was RMB 10.7 billion, up 3.6% compared to the same period last year. Gaming remains the primary revenue driver for NetEase, with online game services and related value-added services generating RMB 25.7 billion in Q1, a 6.9% year-on-year increase, accounting for nearly 84% of total revenue. The financial report noted that the growth was primarily driven by increased revenue from self-developed games such as the "Fantasy Westward Journey" series and "Where Winds Meet."

Analysis indicates that "The Forgotten Sea" is scheduled to begin a paid closed beta test on May 28, with expectations for a full launch during the summer season this year (as of May 21, pre-registrations across all platforms exceeded 22 million). Additionally, the company has a diverse pipeline of new titles in reserve, including "Infinity," "Shan Hai Qi Lü," and "Return to Tang." It is noted that the better-than-expected improvement in gross margin and stable shareholder returns provide a safety margin, while the upcoming product cycle and progress in globalization will be key variables to watch.