China’s tech giant NetEase has lost momentum in gaming, its most profitable sector.

NetEase shares dropped 6% when the market opened on May 17, US Eastern Time, after releasing its first quarter earnings after the market closed on May 16. The shares decreased to $250 from $266 the day before. Its diluted earnings per ADS, $0.91, missed analysts’ expectation of $1.99.

The company reported RMB 752 million net income for the first quarter ended on March 31, 81% down compared with RMB 3.9 billion for the same period last year. The decrease was mainly due to diminishing revenues from online game services, the company’s biggest source of income. Revenues from the sector were RMB 8.8 billion, 18.4% decrease compared with the first quarter of 2017. Revenues in gaming made up 62% of NetEase’s total revenues.

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Jiefei Liu

Jiefei Liu is a Beijing based tech reporter. She focuses on the union of tech and content creation and loves agriculture. You can write to her at Jiefei@technode.com