A：The company's business and financial results could be affected by certain risks that are detailed in its filings with the Securities and Exchange Commission, including its annual report on Form 20-F, and in an announcement and filings on the Hong Kong Stock Exchanges website.

A：The total revenue for the third quarter was RMB 28.4 billion, an increase of 8% year over year. Revenues from the company's games and related services grew 12% compared with the same year last year.

A：Key achievements of the company's games in the third quarter include the success of new releases like '10 writing' and 'a new free to play mobile Sci Fifi RPG shooter' that topped the iOS download chart in the United States and other major Western markets. The game 'rivals' continued to engage players with the introduction of new content and events, maintaining its position on Steam's global top seller chart. The company's original titles gained momentum with updates and events that drove revenue and monthly active user growth.

A：The company's established games are gaining steam worldwide with strong performances and updates that provide new opportunities for entertainment, engagement, and growth of their communities. This approach has continued to resonate with players, resulting in steady growth across the domestic portfolio for both new titles and long-standing games like 'China Westward Journey Online', which has been operational for 22 years and demonstrates the company's commitment to high-quality operations.

A：The new free to play mobile game '10 writing' received widespread acclaim and secured leading positions on iOS download charts across nearly 100 markets globally following its global launch on August 28. It topped the App Store's charts in the United States and other major Western markets.

A：The game 'rivals' is significant for its active superhero shooter fan base, which it continues to engage with new content, features, special events, and more. Its recent updates included the introduction of a new map, the debut of a new character, and a Halloween-themed event. The game's growing appeal is reflected in its performance on Steam and its successful grand finals at an international event.

A：The major update for the game 'once human' introduced a new scenario focused on the capture and customization of deviations and a significant refresh of the PVP experience. The update was tied to a collaboration event with a global heat gain power world, further enhancing the player community. The game achieved a peak of 190,000 concurrent players and secured top rankings on multiple platforms following its release.

A：The title 'Ananta' has garnered significant attention and excitement, especially after being featured at gaming events. It was applauded for its in-depth game trailers and engaging hands-on play testing. The game has been recognized for its imaginative action design, high-fidelity visuals, and modern urban storytelling. It was named as one of the most promising upcoming games at the Japan Game Awards 25 Future Division.

A：The key features of the Unlimited server that have contributed to player engagement include classic gameplay under a model that eliminates the entry barrier of upfront time-based payments, leading to substantial enthusiasm from fans and a significant boost in player engagement.

A：The Tianxia MMO has been updated with new features such as a complete client upgrade to a cross-platform client, powered by the company's flagship in-house engine, which enhances graphic quality and expands access for players across PC and mobile platforms. It signifies a deep engagement with the community and a commitment to enhancing the player experience.

A：The release of new characters and partnerships, such as the Hunter of Cist and the survival of Lanternist, as well as collaborations like the one with the Palace Museum, has infused new energy into Identicon's world and reinforced it as a top destination for asymmetric gameplay fans, contributing to high engagement.

A：Anki Party experienced robust growth with a three anniversary celebration in July, which sparked renewed enthusiasm and set a new average playtime record. The celebration included new gameplays and an EGC 2 that made design faster and more enjoyable, resulting in engagement levels returning to historical peak performance.

A：Aog introduced a nice anniversary celebration on September 10 with rich new content and gameplay updates shaped by player feedback, including the new character Yuki Gosen. The game's vitality and the strength of the company's long-term operation were demonstrated by its high placement in China's gross charts.

A：The Starcraft MDP has grown with new heroes and collaborations such as theArmor Hero in September and the Time Limited Return of Me in October. It has become the cornerstone of the e-sports ecosystem, with the 2020 I egola Asian Games' finals in October, driving increasing social media engagement.

A：The company has expanded its domestic portfolio with new, lighthearted experiences such as a game featuring magical creatures inspired by Chinese fairy tales, which has built a dedicated fan base. Worldcraft rolled out updates that sustained strong engagement and the game just launched a highly anticipated China exclusive server. The game has a milestone of over 1.5 million concurrent players.

A：Heartstone celebrated its 11th anniversary and amassed over 100 million registered players in China. The game ran a series of special anniversary events that drove participation from loyal fans and newcomers.

A：Udal executed its AI native strategy with a 40% year-over-year increase in learning services revenue. It partnered with the Yao Mathematical Science Center of the Xinhua University and provided technical support for a platform to identify mathematically gifted students. In the advertising business, Udal further developed its expertise in programmatic advertising and influence marketing, enriching its offerings with technology upgrades.

A：The total net revenue for the third quarter was 28.4 billion, marking a 8 percent increase year over year.

A：The quarterly increase was attributed to higher net revenues from self-development games like Finance Online, GTA, and certain license gains. The yearly increase was due to higher net revenue from self-developed games such as Finance Online, Party, newly launched Willwin, and more revival, as well as certain license games.

A：Gross profit increased by 10% year over year, primarily driven by increased net revenue from online games. The gross profit margin for the third quarter was 64.1%, up from 62.9% in the same period last year.

A：The decline in net revenue for innovative business and others was mainly driven by Yanxi due to its high base during the 618 e-commerce festival.

A：The gross profit margin for the 'douyu' segment was 42.2%, compared to 50.2% in the same period last year, mainly due to the decline in the gross profit margin of online marketing services.

A：The gross profit margin for 90 music in the third quarter was 35.4%, up from 32.8% a year ago. The margin improvement was primarily driven by steady growth in the core online music business with lower contributions from social entertainment and other lower-margin services.

A：The effective tax rate for the third quarter was 13%. The non-GAAP net income to shareholders for the third quarter was RMB 9.5 billion, or $1.3 billion, marking a 27% year-over-year increase. The non-GAAP basic earnings per share for the quarter were $2.90 or 42 cents per share.

A：The company's previously approved share repurchase program for up to $5 billion has been extended for an additional 36 months, expiring on January 9, 2029.

A：The company believes it has the capability to bring more and more success cases in the overseas markets and provide high-quality cost and services to gamers. The company expresses confidence in its strategy for future success.

A：The company has recently rolled out 'Justice' in the global market, and three years ago, 'Breakpoint PC' was also launched on the global market. The company's games have big market expectations, and 'Justice' has been named one of the most promising upcoming games by the Japan Games Award 2025 Future Division. The company continues to expand its territory in the global market and emphasizes ongoing successes.

A：Warcraft and Hearthstone have returned to China for one year and are facing tough competition. The company plans to discuss performance metrics now versus one year ago and how they plan to drive sustainable growth in the future. They have not provided specific data in this transcript but suggest they are focused on improving performance through new content and marketing strategies, as well as working closely with partners to enhance the competitive offerings in the China market.

A：There has been volatility in growth and DAU in recent months for Identity 5. The company acknowledges this and mentions that during the summer holidays, there was a significant impact on general users in lower-tier cities. However, the impact has eased since the start of the school semester, and in September, the company reached a historical high in user engagement. The company is focusing on preparing new content and marketing campaigns for the Chinese New Year cycle. They are working on diverse gameplays to meet the varied demands from the community. The company's strategy moving forward is to deepen cooperation to sustain their unique competitive offerings in the China market, including working closely with partners like USTC. New business plans are in place for the upcoming game, which is expected to secure a significant market share and commercial performance in the ARPG segment.

A：The company acknowledges the increased competition in the ARPG genre, particularly from other products. The upcoming game is designed to have its own unique quality, and the company has outlined new business plans that they believe will secure a deserved market share and commercial success in the ARPG segment after launch. While specific details on monetization potential are not provided, the company's strategy includes focusing on a select few products that they have high confidence in, rather than a large number of new products with less confidence.

A：The showcased game at the Tokyo Game Show received significant attention on social media worldwide and was named one of the most promising upcoming titles by the Japan Games Award 2025 Future Division. The company plans to enhance the development process and intends to proceed with testing and launches as scheduled. They believe the blend of console-quality content, innovative strategy, and a focus on long-term care operations will secure a new position within the industry ecosystem. Market positioning and differentiation will be solidified through these efforts and further updates will be shared in due course.

A：The company has not provided specific dates for the next testing timing and the official launch timing of the showcased game in this transcript. They indicate that the development process is on track and that updates will be shared when the time comes.

A：The company's strategy is to focus on successful products and continue to concentrate on these rather than launching many new products without high confidence. They will be more cautious and prudent in selecting new products, ensuring each has a strong market presence. This focus on a select few products is seen as a core confidence for the company.

A：The recent adjustments and changes are part of the company's normal personnel turnover process carried out without impacting daily operations. These changes are aimed at making the organization more focused and efficient, with an emphasis on refining and optimizing existing high-quality products and developing new titles with evergreen potential into successful, long-lasting teams.

A：The company is focusing on the quality of new games and is particularly interested in the shooting game genre. It aims to differentiate itself in this genre by deploying significant resources in research and the integration of AI to refine the user experience and create breakthroughs in the industry.

A：'Sea of Re' is a very important product for the company, focusing on a unique gameplay experience with rich combinations between characters and classes, providing a fresh and unexperienced oceanic adventure to gamers. The company has a clear vision for this product and plans to launch it with a multi-faceted approach, emphasizing both mobile and console support.