#China #Hangzhou #Netease Cloud Music #Chinese Music #Interactive Music

NetEase Cloud Music Inc. Reports Fiscal Year 2025 Financial Results

On February 11, 2026, NetEase Cloud Music Inc. (HKEX: 9899), renowned as one of China's leading interactive music streaming service providers, released its comprehensive financial results for the fiscal year 2025, which ended on December 31, 2025. The company experienced both significant accomplishments and some challenges in the past year, reflecting its commitment to enhancing user experiences while navigating the evolving landscape of music consumption.

Key Financial Metrics Overview

In FY2025, NetEase Cloud Music generated a revenue of RMB 7.76 billion, reflecting a marginal decline of 2.4% compared to RMB 7.95 billion in the previous year, 2024. The slight decrease was influenced by a downturn in social entertainment services revenue. However, the company reported improvements in key profit metrics, demonstrating its resilience in the competitive music industry.

Profitability Highlights

• - Gross profit reached RMB 2.77 billion, marking a 3.3% increase from previous levels, bolstered by the strong performance of online music services.
• - Operating profit saw a significant rise of 38.5%, amounting to RMB 1.62 billion, largely due to reduced marketing expenses and increased government grants. This robust operating performance is indicative of the company's focus on operational efficiency.
• - The net profit surged to RMB 2.75 billion, nearly doubling from RMB 1.57 billion in 2024, underscoring improved profitability across the board.

Revenue Breakdown

Online Music Services

One of the standout performers for NetEase was its online music services division, which generated RMB 6.0 billion and achieved a 12.0% increase from RMB 5.4 billion in 2024. Membership subscription revenue was a key driver, totaling RMB 5.1 billion, boosted by a rising number of paying users and enriched membership benefits.

Social Entertainment Services

Conversely, revenue from social entertainment services dipped to RMB 1.8 billion from RMB 2.6 billion in 2024, attributed to a strategic shift toward prioritizing core music offerings over social entertainment ventures.

Focus on Quality and User Engagement

In 2025, NetEase Cloud Music concentrated on enhancing its core music ecosystem, emphasizing high-quality content and user experience. Key initiatives included:

• - Elevating Music Experiences: The company focused on improving its digital music offerings, enriching user interaction, and creating a vibrant community around music. As a result, its daily user engagement metrics saw consistent year-over-year growth.
• - Diverse Content Library: Efforts to diversify content through collaborations with iconic music labels and independent artists yielded a vast selection of music genres and styles, attracting varied audience demographics.
• - Innovative Features: Implementations such as the new AI-powered recommendation model showcased the company’s commitment to personalizing user experience and increasing music discovery efficiency.

Looking Forward

As NetEase Cloud Music gears up for the upcoming fiscal year, it aims to maintain its growth trajectory by:

• - Further Diversifying Content: The company plans to amplify its content offerings, particularly in original music production and partnerships with copyright holders to expand their library.
• - Enhancing User Experience: Continuous enhancements in music discovery features and product innovation will remain priorities to fulfill evolving user needs.
• - Fostering Community Engagement: Strengthening its music-oriented community ecosystem will be pivotal for nurturing long-term user loyalty and subscription growth.

With these strategies in place, NetEase Cloud Music is committed to not only growing its user base but also cultivating a robust community of music enthusiasts, thereby reinforcing its status as a premier platform for music streaming in China.

Conclusion

NetEase Cloud Music's results for FY2025 illustrate the complexities of the digital music landscape, highlighting both challenges and triumphs in a year marked by significant changes in the industry. By focusing on quality content, innovative solutions, and deepening community ties, NetEase aims to continue its successful journey in the dynamic world of music streaming.