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1121 | Dolphin Research Focus: 🐬 Macro/Industry 1. Last night's non-farm payroll data was released, presenting a 'split' scenario. On one hand, the number of jobs grew beyond expectations, while on the other hand, the unemployment rate unexpectedly rose to a four-year high, leading to a setback in the Federal Reserve's rate cut expectations. The VIX fear index surged significantly during the day. Meanwhile, after NVIDIA's earnings report, its stock initially surged but quickly retreated, causing tech stocks to collectively decline, with Chinese concept stocks simultaneously falling. Market sentiment spread to Asia-Pacific, and today, both Hong Kong and A-share markets are under pressure...

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The market is in distress; Xiaomi Rises Courageously｜Today's Important News Review

Conference Minutes

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The following are the Minutes of the 2025 Q3 earnings call for $NTES-S(9999.HK) NetEase (NTES.US) organized by Dolphin Research. For an interpretation of the financial report, please refer to &#34;NetEase: The Last Kneel Before the 'Pig Cycle'?&#34; 1. Review of Core Financial Data 1. Revenue Overview: Total net revenue: RMB 28.4 billion (approximately USD 4 billion), an 8% year-over-year increase. Net revenue from games and related value-added services: RMB 23.3 billion, a 12% year-over-year increase. Net revenue from online games: RMB 22.8 billion, a 3% quarter-over-quarter increase and a 13% year-over-year increase...

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NetEase (Minutes): Resources Focused on High-Confidence Products

Financial Analysis

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$NTES-S(09999.HK) $NetEase(NTES.US) released its Q3 2025 financial report for the Hong Kong stock market after hours on November 20th, Beijing time. Similar to Q2, it was another miss under full expectations. Considering that some institutions mentioned the risk of overly high expectations at the beginning of the month, some funds may have taken precautions. In the current emotional environment, the market is certainly dissatisfied with this performance. However, considering that the stock price has been adjusted for a long time, it may improve due to the resilience of the gaming sector and the expected improvement in the pipeline next year...

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SBC MEDICAL GROUP HOLDINGS INCRPRTD C/WTS 17/09/2029 (TO PUR COM)

NetEase: The Last Kneel Before the 'Pig Cycle'?

GAME

NetEase 3Q25 Quick Interpretation: Overall, the third-quarter performance fell short of Bloomberg consensus expectations, with the main expectation gaps in gaming revenue and sales expenses. However, the market may have already been somewhat prepared, as some institutions mentioned earlier this month that current market expectations were too high and that results might miss. Among the underperforming metrics, the only bright spot was deferred revenue, which provided some comfort: Despite a higher base, the year-on-year growth rate accelerated slightly compared to the previous quarter. Given that PC games and overseas games were the main sources of growth this quarter, Dolphin Research believes that the revenue expectation gap is likely related to changes in the deferred recognition cycle for games. The market may not be satisfied with this quarter's results, but since the stock price has been adjusting recently and the long-term resilience of games remains strong, the punishment might be somewhat mitigated. The most critical focus now is the launch plans and revenue targets for next year's two major games, &#34;Forgotten Sea&#34; and &#34;Infinity,&#34; and it is advisable to pay attention to the upcoming earnings call. 1. Slowing Game Growth: Third-quarter game growth did not accelerate as expected by the market compared to Q2. The expectation gap may primarily lie in PC games, although, in terms of absolute growth rates, the pressure is on mobile games. However, during the summer season in Q3, &#34;Eggy Party&#34; and &#34;Yan Yun: Sixteen Tones&#34; released content updates, driving domestic mobile game revenue back to positive growth. Overseas mobile games also performed well due to the contribution from the new game &#34;Destiny: Stars.&#34; Therefore, Dolphin Research speculates that market expectations for PC game revenue were too high. There is no reliable third-party data source for tracking PC games, so it is understandable that institutions had significant expectation gaps. Although there was growth from the Blizzard series games in Q3, competition in PC games intensified, especially from Tencent's titles like &#34;Delta Action,&#34; which may have had a 分流 effect. 2. Deferred Revenue Shows It Wasn’t That Bad: Notably, Q3 deferred revenue significantly exceeded market expectations, and its growth rate was better than seasonal changes in previous periods, similar to Q3 last year when Blizzard had just returned. Therefore, this quarter's revenue performance may also be related to the deferred recognition cycle. Generally, overseas games and PC games have slightly longer deferred cycles than domestic mobile games. The growth in Q3 mainly came from overseas mobile games and domestic PC game revenue. 3. Other Businesses Mostly Fell Short of Expectations: Among non-gaming businesses, Youdao Education and Cloud Music slightly missed Bloomberg expectations, but the larger drag was from Yanxuan. 4. Stable Gross Margin, High Expense Growth: On the profit side, gross margin remained relatively stable. Gaming and value-added services gross margin declined slightly quarter-on-quarter but increased by 1 percentage point year-on-year, mainly due to a higher proportion of self-developed games. Sales expenses surged 17% year-on-year in Q3 due to promotions for new games and summer version marketing for existing games, missing market expectations by nearly 500 million yuan. Additionally, administrative expenses returned to positive growth this quarter, but given the team optimization and restructuring efforts by NetEase since Q3, we do not expect sustained significant expansion in this expense item. Ultimately, Non-GAAP net profit was 9.5 billion yuan, which met expectations mainly due to adjustments for SBC expenses and items like investment income (up 800 million year-on-year). Core operating profit from the main business was 8 billion yuan, below market expectations. $NTES-S(09999.HK) $NetEase(NTES.US)

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1119 | Dolphin Research Key Focus: 🐬 Stocks 1, $Microsoft(MSFT.US), $NVIDIA(NVDA.US). Microsoft, NVIDIA, and AI startup Anthropic announced the establishment of a strategic partnership. Microsoft and NVIDIA jointly invested $15 billion in Anthropic, which committed to purchasing $30 billion worth of Azure computing power, forming a capital and technology-bound AI alliance among the three parties. Building a &#34;Capital - Computing Power - Model&#34; closed loop...

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Nio's intelligent driving chip supplied externally for the first time; Nvidia's earnings report countdown｜Today's important news review

Strategy Report

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Originally, in the mid-September Madrid negotiations, the U.S.-China talks resolved the long-standing major conflict over TikTok. However, Trump's emotional essay on a 100% tariff seemed to have set back the bilateral relations overnight. But following Trump's press inquiries, Vance's statements, and press conferences from China's Ministry of Commerce, the TACO transaction became almost a consensus expectation. In this article, Dolphin Research will elaborate more on how this TACO transaction differs from previous ones and what other insights can be drawn besides TACO. 1. This TACO...

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Trump 'Breaks Defense': Not Just TACO, Will There Be a Revaluation of Chinese Assets?

The following are the minutes of NetEase's Q2 2025 earnings call organized by Dolphin Research. For an interpretation of the financial report, please refer to &#34;NetEase's Volatility? Veterans Still Have Strong Capabilities.&#34; 1. Review of Core Financial Information: 1. Cash Flow: As of June 30, 2025, the company's net cash totaled approximately RMB 142.1 billion, compared to RMB 137 billion at the end of the previous quarter, indicating a strong cash position. 2. Shareholder Return Plan: (1) The board has approved a second-quarter dividend of $0.1140per share, or $0.57 per ADS...

NetEase (Minutes): Rich game reserves, future optimization of marketing resource allocation

$NTES-S(09999.HK) $NetEase(NTES.US) released its Q2 2025 financial report after the Hong Kong stock market closed on August 14, Beijing time. The overall performance was not bad, but it did not match the optimistic expectations and the valuation increase under positive sentiment before the financial report, so the market feedback was relatively negative, and there is a short-term need to digest the expectation gap. Specifically: 1. Game revenue was below expectations: Q2 game and value-added services combined grew by 13.7%, with the core game segment growing by 15%, which was below the market's positive expectations...

NetEase 'Jumping Up and Down'? Veterans Still Have Hard Power

NetEase 2Q25 Quick Interpretation: Second-quarter performance slightly missed expectations, with the main discrepancies in gaming and selling expenses. The performance itself is not bad, but after last quarter's significant outperformance, the market has been continuously raising expectations for NetEase. Additionally, with the improvement in the revenue of 'Eggy Party' in July, the new high in monthly DAU of 'Fantasy Westward Journey', and the approval of the license for 'Diablo 6', as of yesterday, NetEase's valuation has recovered from 13x in Q1 to 16x (with the stock price at a high corresponding to 18x), a 27% increase, ranking among the top in major Chinese concept stocks. When high expectations are unmet, and the pipeline of new games in the second half is lackluster (with no absolute blockbusters, and low market expectations for 'Destiny: Stars' due to concerns about the current oversupply of shooting games and intense competition), the market naturally feels disappointed with this not-so-impressive performance. 1. Gaming below expectations: Q2 growth was 13.7%, with core gaming growing by 15%. After Q1, market expectations were actually not low, with some optimistic forecasts seeing 16-17% growth. The growth during the period mainly benefited from the incremental contributions of several new PC games such as 'Marvel Duel', 'Seven Days World', 'FragPunk', and the evergreen mobile game 'Identity V'. Deferred revenue was 17 billion, up 25% year-on-year (with a low base last year), down 4% quarter-on-quarter, which is a normal trend considering past seasonal changes. 2. Significant increase in marketing expenses: Another dissatisfaction may be the substantial increase in selling expenses. Since the internal anti-corruption review started in the second half of last year, Q4 and Q1 selling expenses were directly reduced by one-third year-on-year. The company stated that this was due to optimized promotion strategies, while emphasizing that marketing expenses would fluctuate significantly with game launch plans. However, regardless of the real reason, the market originally expected this trend to last for a cycle, so the sudden increase before a full-year cycle was unexpected. In the second quarter, NetEase still had some new games, but due to the relatively few mobile games with inherent popularity, the demand for promotion increased, and the impact of preheating for several game anniversary events in the second half of the year caused short-term fluctuations in spending. Dolphin Research believes that the increase in marketing expenses should not be viewed too negatively. For a gaming company, only during the bottom cycle is it necessary to be particularly restrained with expenses. For a gaming company like NetEase with a multi-product matrix, short-term revenue gaps can be quickly filled through operational means. Yesterday, Tencent's financial report also indicated that evergreen games have a high bottom-line and value re-exploration capability. However, in the competition between Tencent and NetEase, Tencent, with its channel advantage, still has the upper hand in ROI of investment. Ultimately, under GAAP, core operating profit was 9.1 billion, up 30% year-on-year, but the profit margin was 32.5%, down more than 3 points quarter-on-quarter, which is larger than the usual seasonal fluctuations. 3. In other businesses, Youdao's revenue exceeded expectations, and Cloud Music met expectations, with subscription revenue growing steadily by 16%, and the gross margin optimization speed slowing at 36%. $NTES-S(09999.HK) $NetEase(NTES.US)

Below is the $NetEase(NTES.US) Q1 2025 earnings call Minutes. For the Quick Interpretation of the earnings report, please refer to &#34;NetEase: From Defense to Offense? Don’t Underestimate the ‘Old Tree Sprouting New Shoots’!&#34; 1. Key Earnings Highlights Recap: 2. Detailed Earnings Call Content 2.1. Key Information from Management: 2.1.1: Game &#34;Marvel Rivals&#34;: The successful launch in December last year marked a significant milestone in our product portfolio and a meaningful step forward in our globalization efforts. Thanks to the highly praised gaming experience and dedicated operations team, it continues to build strong momentum among global players...

NetEase (Minutes): Don't worry too much about the future Pipeline

Blizzard's Diablo 4 Launched in China

Yan Yun Shiliusheng International Server Pre-registrations Exceed 5 Million, Launching on December 12th

First Shanghai Securities Maintains a Buy Rating and Sets Target Price for NetEase

Netease Collaborates with Police to Crack Down on Cheating in 'Swan Song'

Netease Announces End of New Content Development for Genshin Impact: Card Game

NetEase donates HKD 10 million for Hong Kong fire emergency relief and post-disaster recovery

Morgan Stanley and Bernstein Maintain Overweight Rating on NetEase

Guosen Securities Maintains Buy Rating for NetEase with Price Target

NetEase's ''Yanyun Shiliu Sheng'' Thrives Abroad with High Praise

BofA Securities Predicts NetEase Revenue Growth of 8% and Maintains Buy Rating

Daiwa 下调 Netease 2026-2027 年收入预测并上调目标价

NetEase Q3 Earnings Below Expectations, Gaming Business Strong, Analysts Raise Price Target

BOC International Maintains Buy Rating for NetEase But Cuts Price Target

Goldman Sachs Publishes Report on NetEase's Q3 Earnings and Future Growth Prospects

Citi Raises NetEase's US Stock Target Price

Bernstein Analyst Maintains Buy Rating on NetEase

NetEase CEO Responds to Fewer Game Releases and Senior Departures: Focus on Existing Successful Products

NetEase released FY2025 Q3 earnings on November 20 Pre-Market EST, actual revenue USD 3.983 B (forecast USD 4.095 B), actual EPS USD 1.8751 (forecast USD 1.9066)

NetEase released FY2025 9 Months Earnings on November 20 Pre-Market (EST), with actual revenue of USD 11.84 B and EPS of USD 5.9461