NetEase saw its share price weaken in Hong Kong trading on Thursday, hitting a near nine-month low after the Chinese videogame group reported disappointing fourth-quarter results that showed slowing top-line momentum.
Shares plunged as much as 5.3% to HK$184.7, a level not seen since late-May 2025. The move made NetEase a significant downward contributor to the Hang Seng index, which fell about 0.8% on the session. NetEases U.S.-listed shares fell 4% on Wednesday.
Earnings and revenue details
Net profit for the quarter dropped 29% year-on-year to 6.24 billion yuan ($902.9 million), missing the consensus estimate of 8.26 billion yuan. Revenue rose 3% to 27.55 billion yuan, broadly in line with expectations but reflecting a marked slowdown in growth compared with prior quarters.
The company said revenue was supported by newly released titles, including Fantasy Westward Journey and Where Winds Meet, with the latter noted as having gained major traction in Western markets. However, the incremental revenue was counterbalanced by higher operating expenses and investment losses, which eroded the companys bottom line.
Product pipeline and positioning
NetEase remains one of China's largest videogame companies, second in size to Tencent, and still lists a slate of anticipated releases. Upcoming titles highlighted by the company include Ananta and Sea of Remnants. The firms pipeline was noted in the results, but the quarterly performance underscores near-term pressure on profitability.
Market reaction and context
The share price movement in Hong Kong and the fall in U.S.-listed shares reflect investor response to the profit shortfall and the slowdown in revenue growth, alongside concerns about rising operating costs and investment-related losses. The stocks decline was substantial enough to weigh on the broader Hang Seng index during the session.
Bottom line
NetEase reported materially weaker net profit and slower revenue growth in the fourth quarter, with new game releases providing revenue support but higher expenses and investment losses offsetting gains. The market reacted by pushing the company's shares to their lowest levels since late-May 2025 in Hong Kong and trimming the U.S. listing.