On November 16th, NetEase released its financial report for the third quarter of 2023: net income of 27.3 billion yuan, a year-on-year increase of 11.6%; Under non GAAP, the net profit from continuing operations attributable to the company's shareholders was 8.6 billion yuan, a year-on-year increase of 15.7%.
In the third quarter, NetEase Games promoted innovation in business models and gameplay, and multiple products such as the mobile game "Cold Against the Current" exceeded market expectations, driving the net revenue of the gaming sector to 21.8 billion yuan. NetEase Cloud Music's net income in the third quarter was 2 billion yuan, and its gross profit margin further increased to 27.2%. Thanks to the implementation of AI (artificial intelligence) technologies such as the Confucius Education Model, NetEase Youdao's quarterly net income was 1.5 billion yuan, and its gross profit margin increased to 55.9%, a new high in the past two years. NetEase's innovation and other businesses had a net income of 2 billion yuan in the third quarter.
NetEase invested 4.3 billion yuan in research and development this quarter, with over 12 billion yuan invested in research and development in the first three quarters of this year. During the quarter, NetEase AI self-developed large models completed batch applications in core business and physical scenarios.