On May 16, 2025, a conference call is held to discuss Netease's first quarter earnings for the year, with Helen Wu presiding over the call.

The discussion covers forward-looking statements regarding the company's future performance, noting risks and uncertainties. It highlights the inclusion of non-GAP financial measures for comparative purposes, with references to SEC filings and the commitment to update forward-looking statements as required by law.

The company reports a 7% year-over-year increase in total net revenue, driven by strong momentum in innovative content and exceptional operations. New titles and flagship games contribute to record-high revenues, while global launches and strategic updates enhance player engagement across diverse genres. Highlighted games include a successful December launch that gained critical acclaim and a fast-paced tactical shooter reaching over 100 million concurrent players, showcasing the company's competitive edge in the global gaming market.

The dialogue highlights significant achievements in the gaming industry, including the successful integration of culturally resonant content in popular games like World of Warcraft and Diablo II, the expansion of player bases for titles such as Fantasy Westward Journey Mobile and Naraka: Bladepoint, and the milestone of 400 million registered players for an iconic asymmetric battle arena game. Notably, Naraka: Bladepoint and another title have been selected as official eSports events for the upcoming Asian Games, marking a notable breakthrough for domestically developed games on the international stage. These successes underscore the strength of long-term operations, premium content delivery, and effective collaboration with partners.

In the first quarter, Aggie Party solidified its leadership in the party game genre with record-breaking player numbers, while Just Mobile pushed technological boundaries and expanded globally. Upcoming titles like Marvel Mystic Mayhem and Destiny Rising promise to further elevate the gaming experience.

Udah reported record-high Q1 operating profits, prioritizing core services and AI-driven innovations. The company upgraded its learning platform, enhanced AI translation services, and launched a new smart device, Udah Space One, showcasing advancements in technology and user experience.

The company experienced robust sales in pet products and household cleaning items, with notable awards and consumer demand, while maintaining a focus on ESG initiatives.

The company highlights its progress in sustainable growth, transparency, and social responsibility, emphasizing the role of AI in redefining entertainment and modernizing industries. Recognized for sustainability efforts, the company aims to further reduce environmental impact, expand its diversified game portfolio, and deepen connections with players globally.

The total net revenue for the first quarter reached $4.0 billion, with significant increases in PC games revenue and declines in learning services, social entertainment, and advertising services.

Tencent reported a 32% year-over-year increase in non-GAAP net income to $1.5 billion for Q1 2025, driven by higher gross profit from online games and improved margins. The company saw a gross profit margin of 64.1%, up from 63.4% in the previous year, with fluctuations in product mix affecting game-related margins. Operating expenses decreased, particularly in selling and marketing, which fell to 9.4% of total net revenue from 15.0% the prior year. R&D expenses remained stable. The effective tax rate was 15.3%, and the company's cash position was strong at approximately RMB Hood billion. A dividend of MP Lys US dollars per share was approved, and under the share repurchase program, $1.9 billion was spent repurchasing ads.

A participant inquires about the strong performance of Identity V, seeking insights into its growth and implications for the revival of other games in the company's portfolio.

Despite the current date being May 16, 2025, continuous investment, optimization, and improvement have maintained the game's leading position in both China and Japan. Learning from the experience of I5, other teams are enhancing the operations of various games, with plans to further invest in I5 to expand the asymmetric PvP experience to a broader audience.

Discussing recent user number volatility, management outlines plans to shorten seasonal updates from three to two months, introduce more frequent character updates, and initiate eSports events to solidify the user base and improve in-game metrics.

On May 16, 2025, a dialogue occurs during a business inquiry involving language misunderstandings, highlighting challenges in cross-cultural communication.

Despite the closure of some overseas studios, the company emphasizes its focus on the international market, highlighting the successful global performance of domestically developed games like Marvel Rivals. Plans indicate a commitment to creating more games suitable for global audiences.

Developed over several years, 'We Wining Meet' is a Chinese historical background open-world game that received acclaim upon its December release. The developers plan to continuously invest in polishing its art and gameplay, aiming for it to become an evergreen title over the next 5 to 10 years. Lessons from its success will be applied to enhance other products.

Despite conservative monetization, One Human Mobile achieved high download rankings and gained over 6 million users in its first week. The game's cross-play feature allows players to use the same account on both PC and mobile, leading to a 90% increase in concurrent PC users and a 500% rise in payments post-launch. Plans for enhancement include adding new gameplay modes and exploring the creation of private servers to cater to diverse player demands.

A discussion highlights the commitment to supporting a new FPS game through continuous updates, exploring gameplay expansions, and investing in overseas markets via tournaments, influencer collaborations, and IP crossovers to maintain and grow its player base.

The management discusses having ample resources accumulated over 20 years to effectively address both domestic and overseas markets simultaneously, highlighting ongoing efforts to better understand overseas gamer demands.

The company prioritizes passion and creativity in developing new gaming titles, planning to open its evaluation platform to external talents. With significant investment in eSports infrastructure and operations, it aims for long-term growth in the eSports sector, targeting inclusion in higher-level competitions like the Olympics.

The discussion highlights the significant role of AI in accelerating game content updates, shortening development times, and enhancing promotion strategies. The company emphasizes its long-term investment in AI technologies, noting its critical importance across various industries.