Group 1 - The Nasdaq China Golden Dragon Index (HXC) fell by 3% on February 13, indicating a general decline in popular Chinese concept stocks [1][8] - Among the stocks that rose, Chunghwa Telecom increased by 0.82% and Huazhu Hotels Group rose by 0.23% [2][8] - Notable declines included TSMC down 1.60%, Alibaba down 3.40%, Pinduoduo down 4.16%, and Baidu down 4.64% [2][8] Group 2 - The US stock market closed lower on Thursday, with technology stocks leading the decline; the Nasdaq dropped over 2% [2][8] - The Dow Jones Industrial Average fell by 669.42 points, a decrease of 1.34%, closing at 49,451.98 points [2][8] - The S&P 500 index declined for the third consecutive trading day, dropping by 108.71 points or 1.57%, to close at 6,832.76 points [2][8] Group 3 - The list of top gainers included companies like Wu Xin Holdings, which surged by 36.29%, and Jiuzi New Energy, which rose by 31.93% [3][9] - Conversely, significant losers included Tencent Music down 10.57% and GMM down 17.43% [6][11]

Core Viewpoint - The article discusses how NetEase has chosen a pragmatic approach in the AI era, avoiding the costly competition of developing general-purpose AI models while focusing on application-level innovations and maintaining a strong R&D investment [3][20]. Group 1: Market Context - During the recent Spring Festival, major tech companies like Alibaba, Tencent, ByteDance, and Baidu spent over 4.5 billion yuan on "red envelopes," marking one of the most expensive tech competitions in history [2]. - NetEase, however, did not participate in this "red envelope war" or the race for large AI models, leading to questions about whether it is falling behind in the AI era [2][3]. Group 2: Business Strategy - NetEase's strategy is characterized by a focus on practical applications rather than competing in the foundational AI model space, which is seen as a more sustainable approach for most companies [3][20]. - The company has maintained a consistent R&D expenditure of over 15% of its revenue, with a projected R&D budget of 17.7 billion yuan for 2025, focusing on application layers rather than general model training [4][20]. Group 3: AI Integration in Products - NetEase has developed thousands of AI production pipelines that enhance various aspects of game development, achieving significant efficiency improvements, such as a 70% increase in design efficiency and a 50% boost in development efficiency through AI tools [6][8]. - The company has also applied AI in its educational and music platforms, enhancing user experience and operational efficiency without pursuing a general-purpose model [6][8]. Group 4: Financial Performance - In 2025, NetEase's total revenue is expected to reach 112.6 billion yuan, with operating profit at 35.8 billion yuan, driven primarily by its gaming segment, which saw a net revenue increase of 11% year-on-year [13][20]. Group 5: Future Growth Potential - The potential for growth in the gaming industry is seen in AI-native games, which are expected to generate over 30 billion yuan by 2027, contributing to a 10% market increase [13][20]. - NetEase's focus on integrating AI into its gaming products positions it well to capitalize on this emerging market, as it transitions from traditional gaming to AI-driven experiences [13][20].

在随后举行的财报电话会议上，网易管理层针对AI技术应用、海外市场拓展等关键议题进行了深入解 答。 网易CEO丁磊在会上指出，AI技术的引入虽然降低了游戏制作的准入门槛，但同时也提高了头部产品 成功的标准。他强调，当前商业化大作的核心竞争力已从单纯的产能优势，转变为对AI技术与复杂游 戏系统（包括数值体系、经济系统及社交生态）的整合能力。这种整合不仅需要深厚的设计功底，还依 赖于丰富的运营经验，构成了新进入者难以轻易突破的行业壁垒。 站长之家（ChinaZ.com）2月12日 消息:昨日，网易公布了其2025年第四季度及全年财务报告。报告显 示，网易在第四季度实现了275亿元的营收，全年营收总额更是达到了1126亿元，归母净利润同比增长 13.8%，达到338亿元。 丁磊进一步表示，网易将专注于打造最懂游戏的AI专家，而非盲目追求通用大模型的研发。他认为， 在垂直领域内，高质量的私有数据比算力更为关键，而应用场景的精准匹配则远胜于模型参数的规模扩 张。基于这一理念，网易将继续加大在垂类模型、AI原生玩法创新以及人才队伍建设方面的投入力 度。 ...

Core Viewpoint - The article emphasizes the importance of identifying value investment opportunities in Asia, particularly focusing on stocks with significant discrepancies between market price and intrinsic value, as well as companies with strong competitive advantages [1] Group 1: Investment Strategy - The research service targets value investors looking for Asia-listed stocks that are undervalued, specifically deep value balance sheet bargains and wide moat stocks [1] - Deep value balance sheet bargains include assets purchased at a discount, such as net cash stocks, net-nets, and low price-to-book (P/B) ratio stocks [1] - Wide moat stocks refer to high-quality businesses with sustainable competitive advantages, including "Magic Formula" stocks and hidden champions [1] Group 2: Market Focus - The primary focus is on the Hong Kong market, where the analyst has over a decade of experience in both buy and sell-side roles [1] - The investment group provides monthly updates and watch lists to assist investors in identifying potential opportunities [1]

NetEase, Inc. ( NTES ) isn’t exactly a household name here, but it’s actually a big deal in China. The company has been around for almost 30 years. Over time, it has built a strong position in aI focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity markets.Analyst’s Disclosure: I/we have no stock, option or sim ...

Core Insights - NetEase, Inc. (NTES) reported Q4 fiscal 2025 non-GAAP earnings of $1.57 per ADS, missing estimates by 22.66% and down 24.2% year over year [1][9] - Revenues reached $3.94 billion, a 7.5% year-over-year increase, but fell short of estimates by 3.82% [1] Segment Performance - Games and related value-added services revenues increased by 3.4% year over year to RMB22.0 billion ($3.1 billion), driven by self-developed games and new launches [2] - Youdao revenues grew 16.8% year over year to RMB1.6 billion ($223.7 million), supported by online marketing and learning services [3] - NetEase Cloud Music saw a 4.7% year-over-year rise in revenues to RMB2.0 billion ($281.5 million) [3] - Innovative businesses and others experienced a 10.4% year-over-year decline in revenues to RMB2.0 billion ($292.8 million) due to increased inter-segment transaction eliminations [4] Financial Highlights - Gross profit increased 8.7% year over year to RMB17.7 billion ($2.5 billion) [5] - Total operating expenses rose 10.9% year over year to RMB9.4 billion ($1.3 billion) [5] - Net income attributable to shareholders was RMB6.2 billion ($892.6 million), with non-GAAP net income at RMB7.1 billion ($1.0 billion) [5] - The effective tax rate increased to 16.4% from 13.4% year over year [5] Strategic Developments - The integration of artificial intelligence across the game ecosystem is enhancing production scalability and supporting AI-driven gameplay innovations [6] - Strong engagement in established franchises like Fantasy Westward Journey and new titles has maintained healthy player communities [7] - Global portfolio expansion is evident, with titles like Sword of Justice and Where Winds Meet achieving significant player engagement [8] Cash Flow and Balance Sheet - As of December 31, 2025, net cash increased to RMB163.5 billion ($23.4 billion) from RMB153.2 billion ($21.5 billion) as of September 30, 2025 [11] - Net cash provided by operating activities rose to RMB14.8 billion ($2.1 billion) from RMB12.9 billion ($1.8 billion) in the previous quarter [12] - A quarterly dividend of $0.232 per share ($1.16 per ADS) was declared for Q4 2025 [12]

对于暴雪娱乐来说，2026年是一个「大年」。 《暗黑破坏神 4》新资料片和《魔兽世界》"至暗之夜"会在今年上线，还有《守望先锋》的十周年庆典活动，以及阔别已久的暴雪嘉年华也将重磅回归。 看上去一切都在向好的方向发展，如今的暴雪娱乐，跟两年前的动荡形成了鲜明的对比。 2024及之前的几年，这家老牌游戏巨头并不好过，高层动荡，短短数年几度换帅，中国市场停摆，公司整体经历多轮裁员、多个在研项目被砍。加上微软 收购后，公司还面临文化重建的压力。 Johanna Faries Johanna上任后，暴雪恢复了与网易的合作，并且力求让公司的战略布局和产品节奏保持稳定，比如，去年底在彭博社的采访中，Johanna提出，暴雪要确 保每个自然年至少推出1到2个"重磅发布"。 前不久，葡萄君对Johanna进行了独家专访。 谈及中国市场，她非常认可与网易的合作，并表示合作已进入新阶段，还详细跟葡萄君介绍了常规月度沟通机制，表示双方管理层之间也保持着高频交 流，尽力促进合作的顺畅。 Johanna本人也非常重视中国市场，在她的年度工作规划中，给中国市场专门划出了一个独立板块。 在公司治理上，Johanna也展现出了不同于前几任掌舵 ...

Core Insights - NetEase reported steady growth in its core gaming business and significant advancements in AI technology, although Q4 profits fell short of expectations, causing short-term market fluctuations [2][6] Financial Performance - In 2025, NetEase achieved total revenue of 112.6 billion RMB, a year-on-year increase of approximately 7%, with net profit attributable to shareholders reaching 33.8 billion RMB, up about 14% [8] - For Q4 2025, revenue was 27.5 billion RMB, showing a modest year-on-year growth of about 3%, while net profit for the quarter was 6.2 billion RMB, a significant decline of approximately 29% compared to the previous year [12] Business Segments - The gaming and related value-added services generated net income of 92.1 billion RMB, with online gaming net income reaching 89.6 billion RMB, reflecting a year-on-year growth of about 11% [8] - Other business segments included Youdao with revenue of 5.9 billion RMB (up 5%), NetEase Cloud Music with revenue of 7.8 billion RMB (slight decline), and innovation and other businesses with revenue of 6.8 billion RMB (also a slight decline) [8] R&D and AI Integration - NetEase's R&D investment reached 17.7 billion RMB in 2025, marking the sixth consecutive year of exceeding 10 billion RMB [9] - The company has integrated AI throughout its game development and operations, enhancing efficiency by over 300% in certain areas, creating a significant competitive advantage [11] Market Reaction and Future Outlook - Following the Q4 results, NetEase's stock price fell by 2.97%, with NetEase Cloud Music experiencing a 9.23% drop [13] - Despite short-term pressures, analysts remain optimistic about NetEase's long-term prospects, projecting a 13% compound annual growth rate for gaming revenue from 2026 to 2027, driven by new game releases [13][14] - The board approved a quarterly dividend of 1.16 USD per ADS and extended a 5 billion USD stock buyback plan until January 2029, with approximately 22.1 million ADS repurchased at a cost of 2 billion USD by the end of 2025 [14]

Core Insights - The gaming industry is experiencing a shift during the Spring Festival, with a noticeable decrease in the launch of new blockbuster games compared to previous years [1][2][3] - Major companies like Tencent, NetEase, and miHoYo are focusing on retaining existing players rather than aggressively promoting new titles, indicating a strategic pivot towards "user retention" [1][5][27] Group 1: Market Trends - The number of new game launches during the Spring Festival is significantly lower, with established titles like "Sandstone Town Time" and "Little Nightmares" relying on their successful PC versions for traction [2][3] - The cost of acquiring new users has more than doubled compared to previous years, making it less viable to invest in new games during a highly competitive period [5][29] - The focus has shifted from attracting new users to enhancing the experience for existing players, with companies offering substantial in-game benefits and events [5][30] Group 2: Marketing Strategies - Major games are launching significant Spring Festival events to engage existing users, such as "League of Legends Mobile" offering new year benefits and "Honor of Kings" providing free skins and discounts [7][9][11] - Companies are extending their marketing efforts beyond online platforms to include offline activities, creating immersive experiences for players [12][16][18] - The trend of focusing on existing user engagement rather than new user acquisition reflects a more mature approach to sustainable growth in the gaming industry [31][32]

Core Viewpoint - NetEase's Q4 2025 performance fell short of expectations, with revenue growing 3% year-on-year to 27.5 billion yuan and non-GAAP net profit declining significantly by 27% [1] Group 1: Financial Performance - Revenue for Q4 2025 reached 27.5 billion yuan, reflecting a 3% year-on-year increase [1] - Non-GAAP net profit experienced a substantial decline of 27% [1] Group 2: Analyst Rating and Price Target - Despite the disappointing performance, the firm maintains a "Buy" rating for NetEase [1] - The target price has been adjusted down from 276 HKD to 250 HKD [1] Group 3: Future Prospects - The company has promising game reserves that are expected to drive the next phase of global growth [1] - The highly anticipated game "Forgotten Sea" is scheduled for official release in Q3 2026, with technical testing having started on February 5, showing encouraging player engagement [1] - The second promotional trailer for "Forgotten Sea" garnered over 10 million views shortly after its release, indicating strong market interest and attention [1] - Another large-budget urban open-world project, "Infinity," is also in steady development [1]