---
title: "NetEase's R&D investment in 2024 is 17.5 billion yuan, and multiple businesses under its umbrella have announced the integration of DeepSeek"
description: "On February 20th, NetEase released its 2024 financial report, with total annual revenue of 105.3 billion yuan, R&D investment of 17.5 billion yuan, and an R&D intensity of 16.6%. NetEase Games, Cloud "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/228992452.md"
published_at: "2025-02-20T09:09:04.000Z"
---

# NetEase's R&D investment in 2024 is 17.5 billion yuan, and multiple businesses under its umbrella have announced the integration of DeepSeek

> On February 20th, NetEase released its 2024 financial report, with total annual revenue of 105.3 billion yuan, R&D investment of 17.5 billion yuan, and an R&D intensity of 16.6%. NetEase Games, Cloud Music, and Youdao performed strongly, achieving revenues of 83.6 billion yuan, 8 billion yuan, and 5.6 billion yuan, respectively. NetEase Cloud Music collaborated with Trip.com to hold an original music collection competition, and NetEase Youdao achieved profitability for the first time in a year. Multiple businesses integrated with DeepSeek to promote technological innovation

According to Zhitong Finance APP, on February 20, NetEase (09999) released its financial report for the fourth quarter and the entire year of 2024. The report shows that NetEase's performance in 2024 is robust, with total revenue of 105.3 billion yuan and Q4 revenue of 26.7 billion yuan. In 2024, research and development investment reached 17.5 billion yuan, with an R&D intensity of 16.6%, marking the fifth consecutive year that NetEase's R&D investment exceeds 10 billion yuan.

In the past year, NetEase's various businesses focused on the main line, and the boutique strategy achieved breakthrough progress.

NetEase Games continued to innovate its diversified product matrix, constantly updating and iterating in design, narrative, and immersive content, with several long-term boutique innovations reaching new highs, generating annual revenue of 83.6 billion yuan and Q4 revenue of 21.2 billion yuan.

NetEase Cloud Music further enriched its boutique music content, optimized user experience, and expanded its subscription membership scale, achieving annual revenue of 8 billion yuan and Q4 revenue of 1.9 billion yuan. Recently, NetEase Cloud Music and Trip.com launched the "Journey of Song" original music collection competition, offering a prize of 6 million yuan to global musicians for "city-themed music."

NetEase Youdao focused on driving innovation through technology applications to enhance profitability. Youdao's Q4 operating profit increased by 10.3% year-on-year, achieving annual profitability for the first time. In 2024, Youdao's revenue reached 5.6 billion yuan, with Q4 revenue of 1.3 billion yuan.

NetEase's innovation and other business segments generated revenue of 8.1 billion yuan in 2024, with Q4 revenue of 2.3 billion yuan. In 2024, the scale of NetEase Yanxuan Pro members grew by 35.5% year-on-year, with core categories such as pet products and household cleaning seeing double-digit year-on-year sales growth, maintaining a leading position. The annual sales of "China's Great Goose Down Jacket" saw a year-on-year increase of over double digits; NetEase Media improved quality and efficiency with AI, focusing on new content consumption businesses, with the NetEase News client seeing a 27% year-on-year increase in new creators in Q4. In November last year, the "Large-Scale Structured Data Intelligent Computing Platform and Industrialization" project jointly developed by NetEase Smart and Zhejiang University won the first prize in the Zhejiang Provincial Science and Technology Progress Award.

It is worth noting that recently, multiple businesses such as NetEase Youdao, NetEase Cloud Music, NetEase Smart, and the mobile game "Nishuihan" announced the integration of DeepSeek, quickly applying the integration of DeepSeek and self-developed AI technology to numerous products in education, music, enterprise services, games, and other fields.

**Consolidating the Diverse Product Matrix: Long-Term IP Breaks Records Again, Potential New Products Receive High Praise and Box Office Success**

Over the past year, relying on long-term operational capabilities, several boutique IPs from NetEase Games have reached new highs, with significant growth in PC games. Among them, the mobile game "Fantasy Westward Journey," which has been continuously operated for nearly 10 years, "Westward Journey 2," which has been around for over 20 years, and "Identity V," which has been running for over 6 years, all achieved new annual revenue highs. The PC game "Naraka: Bladepoint" also set a new record for annual revenue. Additionally, thanks to the outstanding performance of "Naraka: Bladepoint" and the agency games "World of Warcraft" and "Hearthstone," Q4 PC game revenue achieved a year-on-year growth of 57%. The return of "Overwatch" on February 19 will further boost player enthusiasm.

While long-term IPs are breaking records again, several new products launched have also received positive user feedback. In Q4, "The Sixteen Sounds of Yanyun" achieved over 3 million downloads within four days of its PC game launch, thanks to its narrative content, open-world gameplay, and immersive experience, and the mobile game maintained the number one position on the iOS download chart for about two weeks after its launch Currently, the total number of dual-end players has surpassed 15 million within two weeks, and preparations for console and overseas expansion have begun.

"Marvel Duel" unlocks new gameplay for cultural integration, rapidly topping the global bestseller list on Steam after its launch, thanks to scene destruction, iconic hero combo skills, and deep extensions of the Marvel Universe. The number of registered users has exceeded 40 million, and it ranks first in player numbers on the Discord community. Several well-known foreign gaming media, including IGN, have given it high scores, and a recent report from consulting firm Naavik indicates that the success of "Marvel Duel" marks a further breakthrough for Chinese manufacturers in overcoming barriers in the Western gaming market, showcasing a new paradigm of "China-US cooperation + IP empowerment."

The financial report shows that NetEase will launch more global and diversified new products to further enrich its product matrix. The multiplayer tactical shooting game "FragPunk," set to launch globally on March 7, reconstructs shooting rules with card strategy and is expected to become a new force in the esports field; "Destiny: Rising," rated as the "Most Anticipated Game of the Year," has completed its first round of testing, receiving recognition from core players for its quality; the new Marvel IP title "MARVEL Mystic Mayhem" has concluded testing in multiple countries, receiving positive feedback from testers for its RPG experience in the Strange Dream realm. Additionally, the mobile version of "Seven Days World" will enter global open beta testing in April, with global reservations expected to exceed 20 million by December 2024.

Recently, several brokerage firms, including Goldman Sachs, CICC, and JP Morgan, have expressed optimism about NetEase's performance, giving it an "overweight" rating or raising target prices, believing that by 2025, NetEase's product line will be strengthened, and its game reserves will be rich, providing breakthrough potential in niche markets.

**Annual R&D Investment Intensity Reaches 16.6%: AI Innovates Industrial Ecology with Comprehensive Access to DeepSeek**

NetEase is committed to continuous investment in content creation and product development, with an R&D investment of 17.5 billion yuan in 2024, achieving an R&D investment intensity of 16.6%. Recently, multiple businesses under NetEase have quickly responded to the DeepSeek wave, integrating DeepSeek into many products.

Youdao, a subsidiary of NetEase, has utilized the deep reasoning capabilities of DeepSeek-R1 to upgrade and optimize multiple products, including Youdao Xiaop, Youdao Dictionary, and Youdao Zhiyun, and has innovatively launched a new category of AI Q&A pen, SpaceOne. As the first AI-native learning hardware in China, Youdao SpaceOne deeply integrates the reasoning model capabilities of DeepSeek-R1, combining AI capabilities with educational scenarios and knowledge base advantages to unlock new ways of in-depth explanation for subject difficulties.

NetEase Cloud Music announced that its podcast generation tool developed for creators has completed full capability access to DeepSeek-R1, resulting in further improvements in creation quality. Additionally, NetEase Cloud Music will actively explore various fields, including intelligent song recommendations, music information searches, and musician creation assistance, based on the DeepSeek-R1 large model and its own AI technology capabilities.

Recently, NetEase Fuxi's "Youling·Yisheng Zhuxiang" platform has launched the full version of DeepSeek, integrating various businesses under NetEase Smart, including integrated communication, service marketing, digital content risk control, intelligent data analysis, and intelligent development At the same time, the intelligent NPC "Shen Qiuxuo," powered by DeepSeek, officially joined the mobile game "Nishuihan" as the first large model intelligent life form with a virtual image, capable of deep emotional communication with players. In addition to DeepSeek, the game previously partnered with NetEase Fuxi to launch the first in-game AI large model arena, which has gathered large models from five well-known AI companies in China for its first phase.

While continuously upgrading applications in line with the AI wave, NetEase AI is also accelerating its integration with the real industry. In November, NetEase's robot brand NetEase Lingdong signed a strategic cooperation agreement with Xugong, launching the "Blackout Construction Site" and the multi-machine "Shepherd" product model. It is understood that the NetEase Lingdong loading robot can operate automatically in an unmanned and completely dark environment, achieving 24-hour uninterrupted production, and has been implemented in projects such as the 104 National Highway mixing station and Gansu Road and Bridge Group.

**Actively fulfilling social responsibility: "AI + Minor Protection" upgraded with 8 million yuan in materials to support Tibet**

In 2024, while achieving business breakthroughs, NetEase continues to fulfill its corporate social responsibility, promoting the deep integration of digital technology innovation and social value.

In the field of minor protection, NetEase Games further upgraded its minor protection platform, optimizing the function for parents to bind game accounts, enhancing operational convenience, and helping parents efficiently manage their children's gaming time and spending behavior. According to statistics, the platform helped parents complete a total of 560,000 related operations during the winter vacation. In addition, after the pioneering launch of the "AI Patrol" minor protection system, NetEase Games continued to upgrade the system, using advanced AI real-name authentication technology combined with real-time inspections based on user behavior characteristics to more accurately identify underage users misusing adult accounts, ensuring a healthy growth environment for minors.

In terms of public welfare, NetEase's actions in the fourth quarter demonstrate its corporate social responsibility. After the 6.8 magnitude earthquake in Dingri County, Tibet, NetEase urgently donated 8 million yuan worth of cold-resistant and living supplies to support rescue and resettlement efforts. The game "Identity V" donated 8.33 million yuan to the China Disabled Persons' Welfare Foundation through the public welfare item "The Girl Who Lights Up Stars"; "Nishuihan" collaborated with the Yuan Longping Rice Institute Expert Station in Xingan League to donate 1 million yuan worth of "Yuan's Dream" rice in the name of players, providing free lunches for over 10,000 children in 91 schools

### Related Stocks

- [NTES.US - NetEase](https://longbridge.com/en/quote/NTES.US.md)
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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
