NTES NetEase

Margaret Shi IR Director of NetEase
William Ding Chief Executive Officer
Charles Yang Chief Financial Officer
Alex Yao JP Morgan
Kenneth Fong Credit Suisse
Alex Poon Morgan Stanley
Natalie Wu Haitong International
Thomas Chong Jefferies
Eddie Leung Bank of America Merrill Lynch
Call transcript
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Good day and welcome to the NetEase 2021 Second Quarter Earnings Conference Call. Today's conference is being recorded. At this time. I would like to turn the conference over to Margaret Shi, IR Director of NetEase. Please go ahead.

Margaret Shi

Operator. you, Thank discussion the the intended contain statements liability. forward-looking qualify Please performance today of to from harbor future the are the relating for note, safe will Company to and

U.S. established guaranteed and not and uncertainties, Private As and performance the Securities Reform factors. statements future certain Act. to subject other Litigation are assumptions, are Such risks by

their press discussion. materially Some the actual cause general Company control and report to from website required mentioned of the filings that of including those could risk with the this this The in by financial list and business Securities Hong could its Kong is of beyond Stock on which Exchange does obligation release and in of discussion annual XX-F except any Exchange. affect not undertake certain today's to is Commission, information, included A as law. and the differ and result, and on filings Company's Form Company update the the announcements factor results the forward-looking NetEase's this the

measures call, financial discuss Management also purposes comparison certain will non-GAAP today's only. During for

XXXX For Quarter release measures non-GAAP a the reconciliation definitions earnings, GAAP non-GAAP today. financial please see issued of a to earlier news and results, of financial Second

conference this is reminder, a As recorded. being

an will addition, of be presentation corporate replay investor at call In and available conference NetEase this webcast a website on the

remarks call of Financial Chief over read on the Senior is on prepared Officer. NetEase the call turn today from and Yen, now them. the who Officer, to Executive our Joining Mr. behalf will our William I'll us Ding, the Management team Charles Charles Mr. Chief

Charles Yang

in Margaret, and you, thank Thank participating everyone, for today's call. you,

the that remind would I based are to Before calculated we everyone all renminbi. percentages begin, like on

quarter, increase base high with XX% second continued momentum second in games, Our revenue an billion, up despite But RMB of gross a was comparable the year-over-year, XX.X X% in XX.X year-over-year. for billion, the representing total online RMB total net our of quarter revenues XXXX. in

and PC our remain engines online mobile growth for games. dual games Our

game side, the is PC the Royale in the next-generation of Battle one On hottest NARAKA games BLADEPOINT, our market.

July, of Western NARAKA in XXth. First the enthusiasm was seller in winning the well debut captivating and NARAKA for Steam, marking global and the graphics, became in With very BLADEPOINT's state-of-the-art new players global received on overseas China breakthrough best launch gameplay launched August players Chinese by weekly in followed BLADEPOINT among the a in quickly and hardcore us market. the markets.

of to will in by different opportunities content other on positive formats as continue including these into console we around games mobile and work trend more introducing the from and world, abroad. market cultures to this large game, start We the and tap look China versions

Journey Our growth two strong PC Westward nearly legacy and longevity TianXia titles, New to flagship Online, remarkable year-over-year show with particularly to operation. of decades continue FWJ,

spin-offs mobile and highlights introduced are holding title, an a performances second appeal Westward on longevity various its exciting keep widely the Fantasy during themes, progressively has Onmyoji including the few expansion users proprietary in LifeAfter way, users created players. young community of traditional Journey to social art with Touching impressed August, maps, quarter. and art demonstrate innovations young from in built appeal strong strong continue bringing there Arena our a These gameplay Arena, game characters, Online with has of on remains unprecedented the iconic some The major top chart. design, of and in games cyberpunk, doomsday across to of mobile and options. mobile users. LifeAfter and quarter, other We to our based gamers pack, new annual strong new this a strength Japanese the a China's the generation of each also category engaged to anime. back we type game world game, Chinese have with high-quality strong an game. players our Leveraging Westward mobile introduction more mobile packs. We This within Reverence Onmyoji And expansion extended Journey among the offering side. iOS Onmyoji IP, sophisticated continue been allow acclaimed has to explore download culture, regular our our skin

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featured X, more release, less weeks and China's China, Lagrange we iOS quarter urban new [Indiscernible] top landscapes chart diversify on grossing track up its self-developed space-themed game such recently, SLG debut Ace our iOS ago, XX reached offerings leveraging on a Ace the racing of also after to we . as portfolio. Infinite the second capabilities, Hangzhou Racer We on Shortly the climbing Dubai, genres than in and game strong real have in week. based Racer art and launched chart in growth as our in made our download expanded iOS a tops the top, graphic industry-leading in ten into and designs a Chinese Ace China. game. titles During top Two our first cities, Racer very our continue

games share and content reached chart, Chinese China of we Marvel Infinite and As following our XLG genre, Pokemon the that further genre, a the enrich Other game respect innovation. this recently domestic quickly iOS releases. market of the include portfolio Quest, will a in Lagrange Invincible, dynamic new the introduced Super after good launched downloads their of through game also earn games top hope we War. its many to them of new we These it game market of the players

years to excited held outside are ago, Japan made and see to Japan's Out Steam to opening very in with when game our particularly highest-grossing market, the Japanese the game net boosts NARAKA the and reaching chart, top leading channels. on one international well-known ever became higher Out and various we Knives when Chinese door local games official our name IP Western take iOS grossing expansion stage, of as milestone Moving Knives played made its the X NARAKA its we in achieved gains position China. concurrent to has new collaborations of of the milestones Over keep the overseas peak its overseas. as echelons upper following players place on emerged BLADEPOINT a continues which who by our will asset such developer a go be One Today, market. mainstream number And our Punch. the even to Eva s, On has has further users. alone, BLADEPOINT by XXX,XXX the global of include breakthrough

martial available initiatives elaborate such of and to such and NARAKA the release more players the August strong IP. great life diversified will like for thought-provoking gameplay, meet this to with Chinese global art seeing as partners, new Eastern engaging with Persian introducing start-off strong War to Rise Universal wizard of concept And BLADEPOINT players culture, the freshmen, have helped gain one designs knowledge Warriors substantially wizardry. western round to elements our feedback. of Taiwan. then on look and see As of globally. testing September which muskets canons. has These to It Mainland, spells, as global and broadens To Awakened, eager closed weapons western confirmed since one and players, appeal Lord Macau, We with as characters fuel Chinese amongst Pre-registration familiar greatly and be Lord fantasy exciting to global we by final titles, successively the for as become June for now across September Of beta title launch Potter player soon. on forward XXth is other with the Hong and magic the most potential of Furthermore, is set market's We the this The in is community Hogwarts market. the XXrd. Xth another game this Magic its various launch, share of The encouraging been mind regions, amazing coming in user the the impressing launched Harry look hardcore Kong, experience forward be for now anticipated Rings the very Rings well new learn

our testing China, For Beta excited July, in from had we feedback first user we are very Diablo about community. the Immortal in and the strong

game We will The keep goes working worldwide bring list players our on. to engaging experiences.

A titles exciting and have our a Nightmare well. other include of in PC game, other Breaker, pre-announced as a Chronicle. Ghost names few World handful pipeline We

to create has players mission world-class wavered. games for never Our

scaling relentlessly are terms technology. new highs, development of We game in

forward our breakthrough infrastructure. pace our is Messiah, we of with to our the mobile key This high-quality the game assets engine have up a engine games. to made game in-house artistic real-time Our the global flagship devices. algorithm one first a planning step within illumination and effects Recently, major speed in R&D into with development helping we've is significant our world-class world's engines, our are which implemented of of technology, greatly us visual bringing our one in

X.X Youdao, representing year-over-year. the a next quarter to were growth RMB XXX% our second billion revenues Turning in

committed In guidelines. As national an generations has intelligent for line is Company, to evolving the Youdao its with enhancing always been technology. through learning and advanced competitiveness young [Indiscernible]

hardware as devices. Steam non-academic costs, explore the In second offering. new further to our quarter, Our learning adult businesses, learning, expanded aim is Steam in smart strategic costs we and such opportunities

quarter-over-quarter. Youdao by For [Indiscernible] increased growing costs go more level Back classroom. and with XXX% revenues launched opportunities user's March meet integrating University And on sector, an premium our growth example, education the is in adult, the nearly advanced established needs. Cloud Net's towards MOOC, Youdao dedicated to learning for from further eye Youdao China courses NetEase adults, education a in adult division we our we

courses the adult our quarter. premium net an net and around its launched total for upgraded of revenues learning of version is English experiences. for course users in provide we of with to terms effective Meanwhile, XX% practical In accounted revenue immersive adults, more second

the platform courses China million career efficiency. XXX devices remain net of with the In development. segment Education second major to increasing certified University source a continued RMB XXX% the have improve for in Learning studies generated Ministry academic for revenues revenue been mission MOOC by This addition, another XXX year-over-year. and courses learning Youdao of as quarter, recommended on

around we Pen learning quarter. said, second addition to addition dictionary expect existing as businesses KX, a in Chinese. our introduced in -K more the high-growth and whose to supportive the tutoring to Youdao to by school in be With We of Dictionary other Youdao of friendly that revenues also elementary English less Youdao version designed affordable, kids pen, accounted 's and for to K-XX it affected classes, has somewhat XX% recent after-school revenue experiment total regulations more and be arithmetic, pre new of

Looking continue sets will industry. ahead, national has are 's future the in the talented most confident and in comply with as to we teaching Youdao of Youdao development R&D strictly Youdao guidelines skill one and

our at slowdown. our business, have quarter successfully gross maintained user music momentum cloud industry-wide over an we the despite Looking past

quarter. networking functions DAU social second in membership While ratio to and above program our [Indiscernible] promotion over XX% advanced almost VIP quarter, year-over-year. the Owing in MAU doubled paying remained agent our ratio second line,

Playlist friends improvement. our users margin, milestone ongoing to to continue constant with listen to our innovation that also gross other our terms In segment time. the well over we to expansion year, users, same social time achieved the but increases at has new newly position music its quarter, multiple positive driving launched playlists additional Music operations. new margin margin our growth with business very a We together cloud received Together, music us function, and ever, Earlier as We in past opportunities. of by with continue In will engaged Furthermore, price-winning scale. allowing networking time. our to NetEase touch, marking been we Cloud and believe not users, product our another users with function our gave co-create keep only a users allowing it this through for music Sharing, this manage providing top-line see first [Indiscernible] Listen improvements the

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household and JD policy, our June day period, June of throughout and recorded of this food the promotion we list, In ESG XXXX efforts year, our as the ESG improvements XX XX ESG food sales achievements, During We report year. we category made cat ESG cat Yanxuan the both Tmall year. domestic our last report highest published daily started our topped for outlining June JD's and the the first promotion. on sales issued XXXX first and as early our

ahead pursue to effort forge community at ESG to being greater our the responsibilities, As our a Company to Company, create to responsible and its deeply committed initiatives value large. a for we keeping be we'll with will stakeholders continue our public and strengths social the will and we

Finally, celebrated our XXth we quarter, anniversary. during the

and we the us we to our past heart has at for know by future, It amazing hundreds of our that millions And of driver growth. journey. innovation key. As and are of our create adored future look review to Innovation be continue the products toward will services people. empowers been our is

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while base existing games such was for and accounted X% RMB roughly for the Our services, Net high Revelation accounted as second despite quarter. billion last in of games, and due benchmark. our revenue, roughly revenue up year-over-year, total from games, games year-over-year Fantasy mobile online revenues mobile The revenue Westward games net XX% to of Journey XX% launched revenue from Online. overseas total year's increase primarily XX.X newly

revenues others second the by XX% from billion increased net online RMB Youdao sale up reached driven due both RMB billion intelligent contribution Cloud growth X.X from Net revenues 's innovative mainly fast X.X NetEase Youdao businesses the devices. year-over-year, the and courses the of year-over-year, and were of up XXX% to for learning quarter, Music.

Overall, [Indiscernible] both by was For user momentum Cloud driven Music, membership growth as and margin profit expansion. with streaming revenues maintained paying profit the Game gross margin XX.X%. XX.X% for solid total follows, breakdown gross Services the was robust a

first as Dictionary as Musi and X.X which services last Youdao Cloud profit turns its gross compensation by of as The XX.X% product growth same gross was smart the structure. during was also the sales, generally growth compared faculty scale margin improvement The in learning on to time for margin, line learning such with others reminder, self-developed Substantial this XX.X% improved and to improved a economies carries year-over-year this positive compared quarter. of a of versus as GP last of NetEase gains, the The year. some saturation Youdao The and with mostly higher margin these margin gross is well Pen attributable as margin contributed optimization line. for driven revenue innovative another mainly businesses with due than number was continuous the its the hardware period of was XX.X% mix based stable, XX.X% As mobile year. significant to games, narrow licensed PC for games. gross was

were total of RMB post-operating expenses our quarter, net XX% second billion, revenue. or X.X the For

We the in to remain last stable is expenses a product revenue and Our net XX.X% If previous percentage selling were D which of the and expenses as revenue in from core of investing growth. exclude expenses marketing content XX.X%. were marketing quarter. development, net creation our selling at our of revenue we quarter with XX.X% year. RMB largely X.X billion, Youdao, and compared percentage second were committed to R& a

revenue, quarter. was in percentage a tax As XX.X% with effective XX.X% The the for accounted second rate net of XX.X% previous quarter. the expenses compared for R&D

the quarter effective different the X.X tax or $XXX and credit entities billion periods differs the the on depending on reminder, from our accrual tax is U.S. a basis, our GAAP time totaled each of As our attributable rate presented and million. policies - an at Non applicable for second net income operation. shareholders RMB to

per basic non-GAAP for X.XX Our X.XX earnings the $ were ADS U.S. or share.

strong. cash remains Our position

we short-term X.X and XXth, time end billion June a with cash very and dividend X.XX XXX our or investment has pleased of total of share with as $X.XXX our accordance of per In As non-current year. approved cash RMB RMB and to dollar that Directors balance the of current U.S. Board ADS. dividend equivalents, are policy, report compared deposits, totaled U.S. of billion our per last

our X.X Lastly, by of share of dollar a previously X.X the today, new US approved February board our approximately dollars board announced to U.S. cap been billion, dollars. increase the from of repurchase approval XXth, the June million cost authorized amount U.S. further approximately has amount to of program total a billion the approved for X of as total billion repurchased X XXth, amendment ADS repurchase under the

to the Thank Additionally, our of board like ADS questions. a not now your Xnd go the your Operator, exceed would to up million months, We open on to XX also call you to outstanding the U.S.$XX purchase approved of of September. to for a Youdao 's beginning share attention. has for Q&A. program period please


the for question today's to Chinese, in And your participants question. limit wish benefit to a Please English. in ask to Instructions] your [Operator repeat one immediately management if time. you questions question Again, to of a please at a call, Instructions] [Operator on ask you. all Thank

And Alex Morgan. wish from first go you to from the JP will If take follow-up a have Yao rejoin please Please question, the we queue. question now ahead.

Alex Yao

Sunday my Can in-game [Indiscernible] us impact of new about for policy introduction. indulgence . and I with Management, think we also, only new business? your minors gaming PM your Thank to question. the recently on specific at have And the taking -- They the cannot a financial PM impact we can how and a to X:XX policies teenager the Friday indulgence teenager should the time, Thank a how game the you. weekend? share should X:XX you, during you that the play policy to in-game protection? question game play operational i.e. think about on introduced from

Charles Yang

[Indiscernible] [Indiscernible]

Margaret Shi

Yes. the I'm such that allowed sure about requirements kids. many there teenagers anti-addiction hours X you a new read as of government on on is week games. play to the some have news has very issued only measures protection prudent the underage are

one the As decision. this full we're of companies in support largest gaming China, in of

have there negative from games away as will we requirements, a so Over certain the away far new as games are keep we And for the people, noticed that impact from on regulations the think industry new the years, past that teenagers teenagers, had children. has -- around then possible.

comes So And you. we this share would anything financially, with that to our together actually to requirement. and of we want X% also, companies you less Thank treat children. than under-aged support to revenue from like regulation

Charles Yang

people but companies just say China X%, law, XX. minors data, below age clarify, different of might are disclosed below [Indiscernible] for Alex, than at definition XX. according to is when Different the age to minors we less we have defining

total that of category it of gross billing, our for less For financial implication. than population, accounts X% games

Margaret Shi

you. Thank


Credit Please Kenneth take question our will Suisse. we And ahead. from go now from Fong next

Kenneth Fong

for questions. Thank two online and my the for this you, new exposure [Indiscernible] the can question. [Indiscernible] the for Margaret. One Thank limit game is underage. boost, have Charles you I regulation taking

question think should our investment impact the more While be and no should we in clearer that think about copyright potential Thank fleet the you. how we how forward, direction, financial content The music is, going longer-term forward? copyrights, going exclusivity about cultivation as second as short-term or and for for the with medium-term music will limited, well the pace, will limit growth?

Charles Yang

[Indiscernible] [indiscernible].

Margaret Shi


it's about of think a government. for nation, we as We the think and question, top growth a priority the to need think for first Company, the of about the need that think -- society. healthy the long-term greatness wholesome to for the our On we our children, And responsibility.

just not audience and in in made positive -- appeal is Well, not making it's in a So we not have games we has noticed the saying decision. are -- are to as globe. adults from might going second about interested do to the your interested profit sincere that around just announcements are And a to we high-quality announced a as that appeal making answer you relinquishing announcement They certainly and s exclusivity, through thing TME, another. TME the minors. question, hope that to be one -- and

want to industry to industry. companies to industry to want funding. news balanced label work sincerity wholesome, and and stakeholder we ultimate to together this in to Here, appeal in and and the co-create sufficient partner every the appeal We with opportunity the at one a NetEase with

William Ding


Margaret Shi

and that we industry, users. for relating have the antitrust like anticipated I the is warmly also says bodies very add and regulatory and policy The antitrust to positive, Thank is right policies. regulations clear which the that by you. very to welcomed decision the and what are entire very signal made exciting a would to thankful

Kenneth Fong

Thank you.

Margaret Shi

Thank you, Kenneth.

Next question.


the Please ahead. And Morgan will from take Poon question next we from Stanley. Alex go now

Alex Poon

especially all How we of and games, should BLADEPOINT, in . contribution game you these fourth [Indiscernible] of Potter, the growth And BLADEPOINT the translate game I'll Rings, pipeline myself. etc. and My is Nightmare related Harry in the Thank quarter? revenue the to Lord very NARAKA the strong including strong very Breaker, the starting much. question [Indiscernible]. half, second these games are about titles. from think

Charles Yang

I'll your Thank you, directly in English. question answer Alex.

new achievement breakthrough This know, think the not excited BLADEPOINT in summer, was another a -- I platform. witness. on may Steam this and major already a again, to made new have also you the launched only NARAKA very As we game genre is but

is I of the other here -- latter launch few Rings, games. Potter, emphasize the to one few to the with September, others are of going in want and is and of reiterate games, receptivity longevity all user year. that quality we month games these the the and thing the half be NetEase Lord this busy. in always the appreciation though, games, a The of of Harry to set at NetEase, a Next

much across and We well think earlier confident our of of is as financial really the games. as to are gaining so market than one offerings downs William rather or secret will the the global new effort continue in what we launching two, the we of more the categories initiatives, open tricks genre expansion through diversify different these relentless are rather other quarter ups and any interested share And not or echo in measures. quality continue on, that our very to gaming particular in but games commented the to advance gamers winning content, the heart our

Alex, your So hopefully, that question. answers

Alex Poon

Charles. , you. Thank [Indiscernible]


International. Haitong next will go from ahead. Wu we Natalie from question now take the Please And

Natalie Wu

Charles solid Ms. my My for and is taking congratulations game regarding [Indiscernible] another NARAKA. [Indiscernible] question and Thanks, quarter. on Margaret question the

success another strategic coming shift will there on percentage more and also, focus Thank game? And and you. from future? of any wondering should our out longevity this of the And the versions will investment And just for in then potential in of the revenue see What genre will be derivative future? expectation this have NARAKA what's of the model. revenue we So regarding also, revenue how the the come game RT-based model. the Managements copy-based

Charles Yang

[Indiscernible] [Indiscernible] [Indiscernible] . .

Margaret Shi

from Doctor you, [Indiscernible] Yes, of now copy-based they for the Mix come Thank also you. also Do game and with sales in-game purchase. Natalie. Thank right

the encouraging to of very in-game have As which a of the created -- in-game that items our have players, today, very sale items attractive caused items. we've been

purchases sales. basis actually So today, in-game the than more our copy contribute

we'll continue to our that appeal forward, more to create users. in-game items assumptions of Going worldwide

keep in long-term In longevity, to continue campaigns we number ranged our game. actually Today, to introduce interesting very we have users. terms for -- a of content and new gameplays, China we of characters, to will plan exciting new the host have those abroad this the a eSports

are So longevity the of we this very with confident game.

to to at of, game. the campaigns the we're -- different we discussions we on terms keep Christmas time, also the have formats strategy equal various game. the on around entertainment, And the the working -- a around mobile launch same have of In keep keep on going game of version to world going creating onto And around viral interest creating consoles we this host high and time, team this of game. we the that, actually

that's -- plan So BLADEPOINT. you. we have so for holistic a very Thank NARAKA

Charles Yang

Natalie, of last part to for -- any there we whether And your strategy. games our is question, whether inspiration overall the

BLADEPOINT, think us diversification, terms only breakthrough gives extra achieved but distribution in by I in NARAKA different of the confidence platforms. not genres, in-game also

BLADEPOINT tapped community, very a successful gamer instance, NARAKA the For Steam particularly is Western global, that has platform. via the the game into

global next question, please. I think market. and that gives us the towards more experience and know-how of developing publishing especially future games, Operator,


Thank you.

from ahead. from go question Jefferies. next take Chong, will We Please Thomas now our

Thomas Chong

My my Thanks, taking is . Potter. [Indiscernible] about first [Indiscernible] management, for Harry questions. question

can having and that versus would regulatory this and strategies, my regulations our game in [Indiscernible] And the get the live shared the the that attract Given streaming our going expectation then just users? is market question second to be the in days. Given stringent worldwide, launched a be strategy reasons grateful. fandom China game is we about way culture these Any more Any for the measures government sense the want market? of on color for marketing overseas to be about is domestic about

affect also live-streaming our a Just Thank our business, will how culture of get want and to outlook? the you. music fandom sense

Charles Yang

I on question. directly question will your you, your Thank on first second Potter in Thomas. Harry will comment answer English. William And

from is set in of September, Xth which launch to it greater Potter, China on Harry the is the highly For now, X anticipated. area about days

popularity this game first the the be in That's it launch, answer community. of and huge appeal global image global hopeful game and amongst confident we your we're that question. international very Potter domestically the further high-quality With will to Given the that Harry game IP, market. the NetEase are both success, a strong the gamer the brand can reinforce

William Ding


Margaret Shi

the recent of regulations on So entertainment actually in industry. support we are the

NetEase an the minimal, that the that about we strategic is because music. Music creating us For Cloud somewhat priority, for for goal us is made impact think original

independent And in Thank those So to you. helping talented China. is our focus individuals are create on musicians music.

Thomas Chong


Charles Yang

Operator, next question, please. Thank you, Thomas.


Thank you.

will ahead. the Please of Leung, We Lynch. question America now take Bank Eddie from Merrill go from next

Eddie Leung

[Indiscernible] [Indiscernible] .

X have We questions.

a first we the recently. understand get key software tax that subsidiaries for couldn't enjoy rate on certain approval the tax -- is The of Internet rate, one companies to preferential

So markets. just tax regarding any game secondly, impact NetEase wonder see then And if on overseas the the would rate?

we on So so, [Indiscernible] Thank color expect the more you. to overseas studios. if NetEase set future up any And plan? more

Charles Yang

you, Eddie. questions interest of English. your directly Thank in Well, answer me let time, the in two

the tax in et development on changes, year. games, have our software not industries, rate, as the this this no qualification. cetera, by key longer XX-F Tax certain Certain in this we that disclosed will earlier earlier policy issued Bureau be announced already new there a are including for eligible the is year, Firstly, tax fact e-commerce,

a As result, no longer we XX% can enjoy tax preferential the rate.

implication businesses, roughly grants to we XX% will us. of qualification entitled the NetEase, these for tax us have, about speaking, net-net, which tag for preferential X% specifically high tax believe game we're changes still a However, to rate, rate

So rate XXXX, XX%. our is tax overall effective around

a XXXX, . tax in low for year, be this XX will somewhere [Indiscernible] rate full-year labor our level, the full think I year

overseas from X Secondly, for we've ambition to our of XX% overseas time. years' least achieve to previously X our game gross expansion, the in our gaming a billing market announced contributed at

that. NARAKA achieve we a have. year. this to of achievements BLADEPOINT is the that track we on well very achieved have matter are exciting We

format collaboration, us up we Europe. overseas studios. in market market, us now international are be require into tap the or the very our own diversified, overseas format can strategies The the standalone Canada, necessarily proactively up studios doesn't set and in For Japan, setting of or for to in to our very rather

with We strengths. are other's world, also global very jointly the are the around or community. gains shift supplementing active that targeting in collaborating players for gamer co-developed some world-class developed each In cases,

very regard. NetEase think very, remains very and active open-minded, in I practical, this very

Eddie Leung

you. [Indiscernible] . Thank

Charles Yang

us today. Operator, all conclude Eddie. the in call let interest you, Thank much. the of very you Thank time,


Thank you.

Margaret Shi

us I'll finish concluding Thank today. those Thank for Maybe you you, just again once again with [Indiscernible] once joining marks.

us at contact Have directly questions, [Indiscernible] please have a any relation. day. If to free great you Thank feel you.

Charles Yang

you. Thank


today's and you concludes your for gentlemen, ladies Thank And call. participation. this

disconnect. now may You