On May 23rd, NetEase released its first quarter financial report for 2024. During the reporting period, NetEase achieved a revenue of 26.9 billion yuan and a net profit attributable to shareholders of 8.5 billion yuan (Non GAAP). Among them, revenue from games and related value-added services reached 21.5 billion yuan, while revenue from long-term operating products such as "Fantasy Westward Journey" mobile game and "The Fifth Personality" reached new highs. Self developed new products accelerated full platform and global distribution, and multiple types of products together formed a strong content base.
NetEase Cloud Music has made efforts to support original content, create self-made music, and purchase copyrights, resulting in a continuous increase in content influence. NetEase Youdao focuses on the development of three high potential businesses driven by AI, with a revenue of 1.4 billion yuan and a significant improvement in profits. The revenue of the innovation sector was 2 billion yuan, and NetEase Media accelerated the integration of AI services and UGC creation. The proportion of UGC content in NetEase News client increased by 30.5% year-on-year.
NetEase has maintained high intensity research and development investment for a long time, promoting cross industry technology empowerment. As of Q1, the company's R&D investment intensity has exceeded 15% for seven consecutive quarters, The AI big model is deeply integrated into the four major industries of gaming, education, music, and industry, and plays a role in the new quality productivity of cutting-edge technology.
In the fields of education, advertising, and music assisted creation, New progress has been made in the commercialization and scenario implementation of AI. Driven by AI technologies such as the first education model in China, such as "Confucius", NetEase Youdao's three high growth potential businesses have developed rapidly. The gross profit margin of digital content services has exceeded 70% for three consecutive quarters, and the net revenue of online marketing has increased by 126% year-on-year The sales of AI subscription services increased by 140% year-on-year.
NetEase is also promoting AI and other technologies to serve industrial construction, urban traffic management, and other physical areas of people's livelihood, innovating and providing digital upgrade solutions. The loading robot based on the NetEase Fuxi industrial model transformation has been implemented in scenarios such as Nanjing Port and the largest precast beam mixing plant in Asia. It is expected to help the construction site reduce 50% of safety risks and save 75% of construction costs. NetEase Yunxin has independently developed real-time audio and video technology, integrating it into remote law enforcement platforms for traffic police in multiple regions across the country, supporting the police to handle traffic accidents in real-time and efficiently, promoting a year-on-year increase of 213% in law enforcement efficiency.
NetEase values the ESG concept and its practice. In late April, NetEase released its 2023 ESG report. Based on its innovative achievements in sustainable operations, low-carbon energy conservation, and other fields over the past year, NetEase has continued to build a diverse, inclusive, and fair corporate culture. NetEase has once again been selected for the Bloomberg 2023 Gender Equality Index and continues to maintain the ESG "A" rating from the international authoritative ESG rating agency MSCI and the "low-risk" ESG rating from Morning Star Sustainalytics.
NetEase CEO Ding Lei stated that in 2024, NetEase will continue to strengthen its research and development capabilities, focus on product and content polishing, explore markets through innovation and category expansion, and work together with global talents and partners to create value.