NetEase has released its financial results for the first quarter of 2026. The company demonstrated steady performance with net revenues of RMB 30.6 billion and R&D expenditures of RMB 4.5 billion. On a non-GAAP basis, net profit attributable to the company's shareholders was RMB 11.3 billion.

Company executives, including CEO Ding Lei, Executive Vice President Hu Zhipeng, Financial Vice President Mo Bin, and Group Vice President Pang Dazhi, participated in the subsequent earnings conference call to discuss the results and answer analyst questions.

The following are key excerpts from the analyst Q&A session:

Goldman Sachs Analyst Lincoln Kong: I have two questions regarding NetEase's new games. The first is about "Forgotten Sea." Could management share the latest progress on "Forgotten Sea"? What user feedback has been received so far, particularly regarding gameplay, monetization design, or payment models? Have there been any recent changes to the product in these areas? Also, what is the current global and cross-platform launch plan?

My second question concerns the game "Infinity." I am curious about management's competitive strategy in the "open-world" gaming segment, especially within the sub-genres leaning towards anime-style and life simulation. Several relatively similar new games from peers have launched this year, and a major title like GTA is scheduled for release later this year. Could management share how you plan to ensure "Infinity" successfully stands out and attracts incremental users?

Ding Lei: I will address your first question. During the two-month technical test for "Forgotten Sea," we gathered valuable feedback from many players. Currently, the project team is actively preparing for the upcoming "Dawn" test. In this round of testing, we will showcase a more comprehensive game world and additional gameplay details to fully advance the product launch plan for the third quarter.

Regarding monetization, the design will be integrated with the overall gameplay, focusing on characters, cosmetics, and payments as core elements, aiming to deliver a content-rich experience with low burden. More details will be shared in our subsequent testing and promotional activities.

Hu Zhipeng: I will answer your second question regarding "Infinity."

I will address this in several parts. First, concerning the competitive landscape: We do not shy away from competition, but we place greater emphasis on differentiation. The "open-world" segment in 2026 is very crowded, and users have abundant choices. However, from another perspective, this indicates the strong development and high user demand within this genre.

Competition is not a zero-sum game. A good product should aim to expand the market, not be confined to a fixed scope. Looking at the positioning of "Infinity," it chooses the direction of an urban open world. There is a fundamental difference in IP development, narrative structure, and urban life gameplay compared to traditional open-world RPGs or anime-style action games. We are not creating a reskin but an open-world product set on a modern military stage, driven by life experience. The competitive barrier in this direction lies not in map size or combat complexity, but in whether players can truly feel they are living in this world. The design of highly urban experiences—such as shopping, socializing, exploring, and managing—is our core differentiation.

Currently, the team is focused on refining the content quality of the product. We believe users consistently have a strong demand for innovative and high-quality products. Ultimately, what determines a product's existence is not the company or basic profits, but whether the product can provide a unique, high-quality experience. We prefer to invest more time in getting the quality right.

Finally, and most importantly, for "Infinity," we hope to achieve some breakthrough improvements within the framework of an open urban world. This means our art style, thematic tone, and gameplay design are aimed at a broader audience of social players, rather than confining ourselves to fixed labels.

In summary, the unique urban open-world positioning, the relentless pursuit of content quality, and an unbounded approach to user adaptation are the pathways for "Infinity." The competition is undoubtedly intense, but we have a clear direction.