A：In the first half of 2025, NetEase Cloud Music's subscription membership revenue increased by 15% year-on-year, mainly benefiting from the rapid increase in the number of members and the steady increase in membership retention rate and activity. The company continues to optimize content, features, and exclusive membership rights system, stimulating users' willingness to pay for a premium experience. In addition, through continuously expanding copyright cooperation and deepening collaboration with record companies, it effectively supports the sale of high-quality albums, while also promoting physical album sales and special events at important milestones, enhancing the effectiveness of content distribution and commercialization.

A：In the first half of 2025, NetEase Cloud Music's core online music business maintained strong growth momentum. By continuously upgrading the outstanding music experience and the rich and unique content matrix, it has attracted a large number of music enthusiasts and actively promoted the development of Chinese original music. The company is committed to providing the ultimate user experience, including building a diverse content ecosystem, optimizing personalized recommendations, innovating product functions, and strengthening community interaction. These measures have effectively enhanced user attractiveness and participation, and the comprehensive upgrade of member benefits has further consolidated the size of the music community and enhanced commercial capabilities, thereby driving steady growth in profitability.

A：NetEase Cloud Music has always insisted on putting user needs at the core, closely focusing on upgrading and innovating product functions around user needs. In the first half of 2025, the NetEase Cloud Music app continued to be updated, optimizing visual design and improving user convenience. At the same time, by upgrading personalized recommendation algorithms and introducing innovative features such as the "God Light Player," it has brought users a more enjoyable music exploration journey and listening experience. At the community level, it has enriched a variety of interactive scenes, encouraging users to participate more deeply.

A：NetEase Cloud Music has built a comprehensive and unique music content matrix by improving its copyright library, supporting independent musicians, and enhancing its ability to produce original music. In 2025, the company will deepen its content strategy by introducing Korean content and enriching its Chinese-language copyright reserves. At the same time, it will continue to upgrade its musician ecosystem and self-made music strategy, with several self-made works such as "Dilemma" receiving widespread acclaim, promoting the development of Chinese-language original music.

A：Looking ahead to the future, NetEase Cloud Music will adhere to its long-term sustainable development goal, with user experience as its core focus. On one hand, it is committed to building a unique content ecosystem, launching high-quality original music; on the other hand, it will continue to explore cutting-edge technology, upgrade product functions, and create the ultimate music experience. Through forward-thinking initiatives, NetEase Cloud Music firmly believes it will continue to inject momentum into the platform's long-term development, and make further progress in areas such as content ecosystem, product innovation, brand communication, and commercialization.

A：NetEase Cloud Music focuses on promoting rap and other distinctive genres and regions. It has deeply engaged in the Chengdu New Air Show, showcasing the development of Chengdu rap music through offline themed displays and online Chengdu rap maps. In addition, NetEase Cloud Music has also launched the "2025 Chinese Rap Half-Year Chart", reviewing outstanding Chinese rap works from multiple perspectives in the first half of the year, and is committed to breaking down barriers within the music industry through authoritative selection, and helping musicians break through boundaries.

A：NetEase Cloud Music collaborates with platform musicians to create advertising songs for brands, such as Anzi and Jiumei Band creating "Celebrating the Lunar New Year with LeDao Cars," and Hugo Band ZALIVAD com's work used in advertisements or promotional videos for Salomon New Racing Carving, successfully promoting exposure for musicians and expanding commercial resources.

A：NetEase Cloud Music's multiple in-house studios focus on creating high-quality original music. Since 2025, they have successfully incubated and promoted many popular songs. On one hand, they specialize in creating unique categories, such as a variety of popular self-produced rap songs like "Dilemma" and "Mo Chou Xiang". On the other hand, they meticulously create high-quality music masterpieces, such as "Good Talk" which has gradually gained widespread recognition, showcasing the enduring charm and value of quality music works.

A：NetEase Cloud Music actively expands its audio content reserves to enrich users' all-round auditory experience. In the first half of 2025, podcasts focused on music derivative audio content, such as the podcast "Dear Music Treasure" created in collaboration with radio DJs, and the Music Friends Program, effectively boosted platform activity and music consumption. At the same time, audiobook content has also been enriched and is deeply loved by users.

A：NetEase Cloud Music continues to iterate and optimize its products in terms of innovation, enhancing user engagement and music interactivity. In terms of content discovery, it improves the accuracy of personalized content recommendations by optimizing the recommendation experience and efficiency. In terms of music consumption experience, it continuously upgrades the listening effects, such as introducing immersive lyrics display and halo player styles, simplifying product frameworks and expanding multi-platform product functions to optimize user experience. At the same time, it builds a unique music community to stimulate users' creativity and interactive participation.

A：In the first half of 2025, NetEase Cloud Music deepened its exploration of multi-scene user needs, with the IOT scale steadily increasing and continuous optimization of multi-end experiences. By partnering with automotive brands to enhance coverage on car platforms and improving the functionality of multi-end products, such as launching heart-beating mode and audio vivid sound effects. In addition, the experiences on TV and desktop platforms were also optimized to ensure immersive and diverse music experiences for users in different scenarios. In the first half of 2025, NetEase Cloud Music's online music revenue increased by 16% year-on-year, while subscription member revenue increased by 15% year-on-year, highlighting the platform's high value to users and the sustainability and potential of its business model. By constantly improving the member content library, optimizing allocation and distribution, and expanding member benefits, more users have been successfully converted into loyal paying customers.

A：We have launched a series of exclusive benefits for members, including music functions, social functions, and dressing privileges. In terms of music functions, AI assists with singing 2.0 supports one-click MV creation, and the AI magic player allows users to upload photos to generate personalized player backgrounds. In addition, we continuously upgrade exclusive member sound quality and sound effects to provide an excellent listening experience. In terms of social functions, features such as double pet, double music housing analysis, and other functions enhance user interaction and member conversion. At the same time, we have also introduced a series of exclusive member dressing privileges and community dressing, such as co-branded skins, IP skins introduced by IT/IP, original IP skins, avatar ornaments, and personalized member identification, allowing users to show their identity in the community.

A：We actively expand external member cooperation. Since early 2025, we have established new membership cooperation with platforms such as iQiyi, Ele.me, Xunlei, and Qingju Bike, aiming to promote content and product development, expand and upgrade member benefits, and achieve steady and enduring growth. At this stage, we focus on expanding our membership base, cultivating users' music consumption habits through high-quality content and excellent experiences. In the long run, this will help to drive continuous growth in subscription member revenue and create more diverse commercial possibilities.

A：In the first half of 2025, the total revenue of the company was 38.3 billion RMB, a decrease of 6% compared to the first half of 2024. Among them, revenue from online music services increased to 29.7 billion RMB, while revenue from social entertainment services and other sources decreased to 8.6 billion RMB. Gross profit decreased from 14.3 billion RMB in the first half of 2024 to 13.39 billion RMB in the first half of 2025, and the gross profit margin increased from 35% to 36.4%. Sales and marketing expenses significantly decreased, and research and development expenses also decreased, resulting in an adjusted operating profit of 9.1 billion RMB, an increase of 35% compared to the first half of 2024.

A：NetEase Cloud Music's product iteration is ongoing, and user feedback is widely listened to throughout the process. Each iteration undergoes gray testing to ensure optimization before full release. While innovating, past inappropriate features are also optimized to improve the community experience. The Divine Light Mode and Landscape Mode introduced in the first half of this year have received positive feedback from users, and the user experience is constantly being optimized on multiple terminals such as in-car, computer, iPad, and PC. The team actively responds to user feedback on social media every day and makes improvements.

A：NetEase Cloud Music's primary mission is to provide users with rich and diverse, enjoyable music content. In addition, we have noticed the demand for user participation in offline music activities, and have collaborated with companies such as Ctrip to expand offline fan economics, such as the jointly organized "Singing Journey" event. In terms of original content, we are not only a platform for the development of independent Chinese music artists but also utilize tools such as AI to help more music enthusiasts unleash their creativity. Furthermore, in the first half of this year, we have introduced Japanese music, Li Jian, and other outstanding musicians and copyright holders to the platform.

A：Long audio and music offer different consumption experiences, similar to new storybooks, providing users with narrative content, while music is more like leisurely company. Netease Cloud Music grasps both hands, satisfying the needs of different users, producing a lot of self-made podcast content, encouraging podcast users to share information on topics such as technology and finance. The company recognizes the importance of long audio and music, striving to achieve balanced development in both areas.

A：The growth and profit of NetEase Cloud Music will not be in conflict. The platform provides a high-quality audio-visual experience, leading users to naturally choose NetEase Cloud Music. The original high-quality songs prove the users' demand for high-quality content, and the company will continue to strive to enhance the overall user experience.

A：This year, NetEase Cloud Music has received praise in community operations and content marketing, attracting a large number of new users through a series of activities, and the activity level has also significantly increased. In the future, the company will continue to aggressively expand new users, not only limited to first and second-tier cities, but also plans to promote quality music to third, fourth, and fifth-tier cities, allowing more users to access familiar classic music and the latest excellent music works, achieving diversification and wide coverage of user groups.

A：As a commercial company, increasing revenue mainly relies on expanding user base and raising the price for individual users. However, frequent price increases may lead to user dissatisfaction. NetEase Cloud Music is making efforts to expand its user base and provide good services to users, while price increases are a very cautious measure. Despite frequent price hikes in the industry, the company will prioritize the growth of paying users and carefully evaluate and implement price increase strategies at the appropriate time.