NetEase FY2026 Q1 Earnings Release

1Q26 Investor Presentation
Investor Relations
May 21, 2026
N e t E a s e

This announcement contains statements of a forward -looking nature. These statements are made under the “safe harbor” provisions of the
U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward -looking statements by term inology such as “will,”
“expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar expressions. In addition, stateme nts that are not
historical facts, including statements about NetEase’s strategies and business plans, its expectations regarding the growth o f i ts business and
its revenue and the quotations from management in this announcem ent are or contain forward -looking statements. NetEase may also make
forward -looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in announcements made on
the website of The Stock Exchange of H ong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written mat erials
and in oral statements made by its officers, directors or employees to third parties. The accuracy of these statements may be im pacted by a
number of business risks and uncertainties that could cause actual results to differ materially from those projected or antic ipa ted, including
risks related to: the risk that the online games market will not continue to grow or that NetE ase will not be able to maintai n i ts position in that
market in China or globally; risks associated with NetEase’s business and operating strategies and its ability to im plem ent s uch strategies;
NetEase’s ability to develop and manage its operations and business; com petition for, am ong other things, capital, technology an d skilled
personnel; potential changes in regulatory environment in the markets where NetEase operates; the risk that NetEase m ay not b e a ble to
continuously develop new and creative online services or that NetEase will not be able to set, or follow in a timely manner, tre nds in the
market; risks related to evolving economic cycles and geopolitical tensions, including the direct or indirect im pacts of nati ona l trade,
investment, protectionist, tax or other laws or policies as well as export controls and econom ic or trade sanctions; risks re lat ed to the
expansion of NetEase’s businesses and operations internationally; risks associated with cybersecurity threats or incidents; a nd fluctuations in
foreign currency exchange rates that could adversely affect NetEase’s business and financial results. Further information reg ard ing these and
other risks is included in NetEase’s filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. N etE ase
does not undertake any obligation to update this forward -looking inform ation, except as required under applicable law.
SAFE HARBOR STATEMENT

NetEase, Inc.
NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, “Ne tEase”) is a leading inte rnet and game ser vices provider center ed around premi um content. With
extensive offerings across its expanding g aming ecosystem, the Company develops an d operates some o f the most popular and lon ges t-running m obile
and PC game s available in China and globally.
Powered by o ne of the largest in -house gam e R&D teams focused on mobile, PC and console , NetEase creates super ior gaming experie nces, inspires
players, an d passionately delivers v alue for its thriving com munity worldwide. By infu sing play with culture, an d education w ith technology, NetEase
transform s gaming into a mea ningful vehicle to build a more entertaining and enlightened wor ld.
Beyond gam es, NetEase service offerings inc lude its majority -controlled s ubsidiaries Youd ao (NYSE: DAO), an in telligent learning and advertising solutions
provider , and NetEase Cloud Music (HKEX: 9899) , a well -known online music platform featu ring a vibrant conten t community, as well as Yanxuan ,
NetEase’s private -label consum er lifestyle brand. F or more information, please visit: http://ir.netease.com/.

MARKET SNAPSHOT
In USD
Notes: 1 Market Cap is calculated using the closi ng price on NASDAQ; Our mar ket cap is HK$575.6 billion based on the closing price on the Hong Kong Stock Exchange 2 Net cash refers to total cash and cash equivalents, curr ent and non -cur rent time deposits and restr icted cash, as well as short -term investments balance, m inus short -term and long -term loans 3 The r esult is based on the latest update in M arch 2026
$74.5
billion
Market Cap 1
(5/20/26)
Shares Outstanding,
Diluted ( 1Q26 )
3.2
billion
Basic Net Income per ADS
(GAAP) ( 1Q26 )
$2.42
Net Revenues
(1Q26 )
$4.4
billion
Net Income Attributable to the
Company’s Shareholders (GAAP)
(1Q26)
$1.5
billion
Net Cash 2
(3/31/26)
$24.3
billion
AAA
MSCI ESG Rating 3

3,486
3,185
3,728
1Q25 4Q25 1Q26
Online Games Related VAS
GAMES AND RELATED VALUE – ADDED SERVICES
Games and Related Value -added Services
Net Revenues
Note: 1 US$1.00 = RMB6.8980 on Mar ch 31, 2026. Same exchange rate i s appli ed to all years for illustr ative purposes
Online G ames
98% (1Q26 )
Related
VAS
USD mi llion 1

• Sustained strong engagem ent and revenue performance across established titles, including the Fantasy Westward Journey
franchise, Identity V , Eggy Party , Sword of Justice and Where W inds Meet , supported by high -cadence content updates and
gameplay innovation.
• Advanced global expansion through key titles, such as Where W inds Meet and Marvel Rivals, amplifying their international
reach and deepening player engagement.
• Blizzard titles maintained stable operations in China with a steady rollout of localized content.
ONLINE GAMES
PC & CONSOLE GAMES MOBILE GAMES
Flagship Self -Developed PC & Console Titles Self -Developed Mobile Games
Licensed Mobile Games From Overseas Developers
Mobile Games in Overseas Markets
Flagship Licensed Titles

188
227
195
80 86 92 98 104 110 116 122 128 134 140 146 152 158 164 170 176 182 188 194 200 206 212 218 224 230 236
1Q25 4Q25 1Q26
Net Revenues
YOUDAO
Youdao
Net Revenues
USD mi llion 1
• Youdao continued to iterate its Confucius large
language model and more deeply embed AI
throughout its ecosystem.
• Learning services segment made steady progress,
supported by strong growth in Youdao Lingshi and
AI -driven subscription offerings.
• Online marketing services benefited from increased
demand for performance -based advertising, as AI –
driven tools enhanced targeting and streamlined
content production.
• Smart devices segment maintained its fiscal
discipline, prioritizing SKU profitability over volume.
Note: 1 US$1.00 = RMB6.8980 on Mar ch 31, 2026. Same exchange rate i s appli ed to all years for illustr ative purposes

NETEASE CLOUD MUSIC, INNOVATIVE BUSINESSES AND OTHERS
• 163.com Portal & Wangyi Xinwen App: Delivering quality content
across news, sports, technology, fashion, and entertainment
• Leading private -label consumer lifestyle brand in China
• Continued to strengthen its brand presence with highly popular
products in focused categories
• Maintained leading sales positions on e -commerce platforms for
categories like pet products and household cleaning products
NetEase
Yanxuan
Wang yi
Xin wen
• China’ s leading e -mail service provider since 1997 E-mail
Services
NetEase Cloud Music
• One of the leading online music platforms in China,
featuring an interactive content community for music
enthusiasts in terms of user scale and engagement
• Provide community -centric online music services and
social entertainment services
• Leveraging our iconic cornerstone product, NetEase
Cloud Music , and ancillary, social entertainment products,
such as LOOK Live Streaming , Sheng Bo and Yin Jie ,
we empower music enthusiasts with a wide variety of
technology -driven tools to discover, enjoy, share and
create diverse music and music -inspired content and to
interact with each other
• Net revenu es from NetEase Cloud M usic were RMB2.0
billion(US$287 .2 million) for the first quarter of 2026,
compared with RMB2.0 billion and RM B1.9 billion for the
preceding quarter and the sa me quarter of 202 5,
respectively.
Innovative Businesses and Others
• Net revenu es from innovative bu sinesses and others we re RMB1.5 billion
(US$224.6 m illion) for the first qu arter of 2026, com pared with RMB2.0
billion and RM B1.6 billion for the preceding quarter and the same quarter of
2025, res pectively. The q uarter -over -quarter d ecrease was led by de creased
net revenues from e -commerce and advertising busin esses.
NetEase Clo ud Mu sic Business

5.1 5.8
7.4
2.0
FY20 23 FY20 24 FY20 25 1Q26
15.0 15.3 16.3
4.4
FY20 23 FY20 24 FY20 25 1Q26
FINANCIAL HIGHLIGHTS
Net Revenues Net Income Attributable to Shareholders (GAAP)
Operating Cash Flow
Value Returned to Shareholders
US$ FY2023 FY2024 FY2025 1Q26
Dividend per
ADS (declared) $2.56485 $2.58525 $2.97500 $0.720
Total Dividends
(declared) $1,649 m $1,651 m $1,896 m $461 m
Share Buyback $687 m $1,230 m $93 m $127 m
4.3 4.3
4.9
1.5
FY20 23 FY20 24 FY20 25 1Q26
Notes: 1 US$1.00 = RMB6.8980 on March 31, 2026. Same exchange r ate is applied to all year s for illustrative purposes 2 Total dividends (declar ed) equal to dividend per ADS (declared) multiplied by each quarter ’s corresponding weighted average number of ADS outstanding, basic
USD bil lion 1
2

ESG PERFORMANCE
MSCI Ratings S&P Global ESG Score Sustainalytics Ratings
Last Updated: March 2026
According to MSC I’s evaluation,
NetEase is a leader among over 200
companies in the media & entertainment
industry
AAA
Last Updated: January 2026
NetEase has been selected as a
member of the 2022 Dow Jones
Sustainability World Index and Dow
Jones Sustainability Emerging Markets
Index. The Company is also included
in the S&P Global Sustainability
Yearbook 2025 and 2022
50 14.3
Last Updated: August 2025

NetEase is rated as a low -risk
company

NetEase was included in
Sustainalytics ’ list of ESG Top -Rated
Companies in 2023

BALANCE SHEET SUMMARY

UNAUDITED INCOME STATEMENT SUMMARY
Note: Al l percentages are calculated based on numbers in mi llions except per ADS data

THANK YOU