NetEase Reports Second Quarter 2018 Unaudited Financial Results – NetEase, Inc

What happened: Chinese leading internet and online game services provider NetEase reported an unaudited profit of RMB 2.1 billion for the second quarter ended June 30, a 30% decrease compared with the same period last year. Online game services, the biggest segment of NetEase’s revenues, increased 6.7 percent compared with the second quarter of 2017, and e-commerce net revenues increased 75.2 percent.

Why it’s important: NetEase seems to be recovering from the unsatisfying earnings last quarter. In the first quarter, NetEase’s profit dropped 81%, compared with the first quarter of 2017 and now the decrease has narrowed to 30%. The increasing gaming revenues were mainly due to the strong performance of their existing games Chu Liu Xiang, Knives out and Identity V. and Yanxuan, drove the growth of NetEase’s e-commerce segment. In the second quarter, Gaming made up 61.8% of the total revenues and e-commerce 27%.

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

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