NetEase (NASDAQ:NTES) capped a year of steady growth with annual revenue reaching RMB112.6 billion ($16.1 billion), as the Chinese gaming giant successfully parlayed its legacy franchises into a broader AI-driven ecosystem.
For the fourth quarter ended Dec. 31, net revenues totaled RMB27.5 billion ($3.9 billion), supported by strong engagement across its core global gaming titles.
The company’s bottom line remained robust, with fiscal non-GAAP net income hitting RMB37.3 billion ($5.3 billion).
Management highlighted the aggressive integration of generative AI across its development pipeline, a move designed to shorten production cycles and enhance player interactivity.
This technological shift comes as NetEase seeks to defend its position as China’s second-largest publisher against intensifying competition from Tencent Holdings and emerging domestic studios.
NetEase’s balance sheet continues to provide a massive cushion for both investment and shareholder returns.
Net cash rose to RMB163.5 billion ($23.4 billion) by year-end.
In a clear signal to investors, the board approved a quarterly dividend of $0.232 per share and extended its share repurchase program to $5 billion.
To date, the company has bought back approximately 22.1 million American Depositary Shares for $2 billion, underscoring a commitment to returning value even as it navigates a maturing regulatory environment in China.
While gaming remains the primary engine, the company noted that AI tools are now deeply embedded in its "Innovative Businesses" and "Youdao" learning segments.