NetEase Inc (NASDAQ: NTES) released its financial report for the second quarter of 2026 on the evening of August 20, revealing total net revenue of RMB 30.1 billion for the period. The innovation division, which encompasses e-commerce operations, generated net revenue of RMB 1.6 billion, reflecting a sequential quarter-on-quarter growth of 6 percent.
Within the pet care category, NetEase Yanxuan secured top-three and top-five rankings across JD.com and Taobao/Tmall channels respectively. The company's four key sub-segments, including cat food, dog food, pet snacks, and pet accessories, all recorded expansion, with dog food and pet snacks sustaining double-digit year-on-year growth. During the 618 shopping festival, NetEase Yanxuan dominated sales leaderboards across multiple platforms for pet brands, cat food, and dog food categories.
Among its standout products, the steamed pet food line, featuring proprietary emulsified steaming technology and fresh meat formulas, has sold over six million bags since launch. The product has earned multiple industry accolades, including the Orange Dot Award and the iBrandi Product Innovation Award. In the air freshening fragrance sector, second-quarter sales maintained double-digit year-on-year growth, with the air deodorizing fragrance, refrigerator deodorizer, and fragrance dehumidifier product lines collectively surging by more than 50 percent compared to the same period last year.
During the quarter, NetEase Yanxuan made its debut at the China Beauty Expo and was invited to join the CBE Brand Alliance Home Care Professional Committee. In the home furnishings segment, its latex pillows maintained the top position on Pinduoduo and ranked within the top three on Taobao/Tmall. Memory foam pillows claimed the second spot on JD.com's new product chart, while jelly quilts topped relevant rankings on JD.com, Pinduoduo, and Douyin. Additionally, its silk-like summer mats achieved the number one position on Douyin's summer mat popularity list.
NetEase Yanxuan also led the collaborative development of the industry standard for steamed dry pet food, which was officially released at the 2026 Pet Supply Chain Conference. To date, the company has participated in the formulation and publication of ten pet-related group standards, spanning pet accessories and pet food categories, positioning it among the leading enterprises in China for establishing pet industry standards. Furthermore, NetEase Yanxuan contributed to the national textile standardization technical committee's reference standards and the mandatory national standard GB 26396-2026 for safety specifications of cleaning products, both of which were officially published.