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, /PRNewswire/ -- NetEase Cloud Music Inc. (HKEX: 9899 or the "Company"), a leading interactive music streaming service provider in China, today announced its financial results for the first half of 2026 ended June 30, 2026.Summary of Key Financial Metrics
(RMB in thousands, unless otherwise stated)
Six months ended 30 June
2026
2025
(Unaudited)
(Unaudited)
Revenue
3,958,706
3,827,117
Gross profit
1,474,409
1,392,485
Operating profit
746,232
844,506
Profit before income tax
930,894
1,068,060
Profit for the period
809,236
1,882,142(1)
Non-IFRS Measure(2):
Adjusted operating profit
796,652
905,360
Adjusted net profit
859,656
1,946,353(1)
Note:
(1) During the period ended 30 June 2025, the Group recognised a deferred income tax credit of RMB849.4 million which primarily arose from the recognition of deferred tax assets in respect of cumulative tax losses incurred by a wholly-owned subsidiary. These tax losses are available to be carried forward against future taxable income. Deferred tax assets relating to tax losses and temporary differences are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences or tax losses can be utilised.
(2) Adjusted operating profit and adjusted net profit are defined as operating profit and profit for the period attributable to the equity holders of the Company adjusted by adding back equity-settled share-based payments as appropriate. For details of the reconciliation of the operating profit and the profit for the period attributable to the equity holders of the Company to the adjusted operating profit and the adjusted net profit of our Group, see the section headed "Financial Review" below.
First Half 2026 Key Financial Highlights
Revenue was RMB4.0 billion, an increase of 3.4% compared with RMB3.8 billion for the same period of 2025. Online music services: Revenue from online music services was RMB3.1 billion, an increase of 3.4% compared with RMB3.0 billion for the same period of 2025. Revenue from sales of membership subscriptions increased to RMB2.6 billion from RMB2.5 billion for the same period of 2025. Social entertainment services and others: Revenue from social entertainment services and others was RMB891.3 million, an increase of 3.7% compared with RMB859.8 million for the same period of 2025. Gross profit was RMB1.5 billion, a slightly increase of 5.9% compared with RMB1.4 billion for the same period of 2025. Gross margin improved to 37.2% from 36.4% for the same period of 2025. This was primarily due to increased revenue from our online music services. Operating profit was RMB746.2 million, compared with RMB844.5 million for the same period of 2025. This was primarily due to the increase in promotion and advertising expenses to enhance brand awareness and user acquisition. Adjusted operating profit was RMB796.7 million, compared with RMB905.4 million for the same period of 2025. Net profit reached RMB809.2 million, compared with net profit of RMB1,882.1 million for the same period of 2025. Adjusted net profit reached RMB859.7 million, compared with adjusted net profit of RMB1,946.4 million for the same period of 2025. The decrease was primarily due to the deferred tax credit of RMB849.4 million for the six months ended 30 June 2025 arising from the initial recognition of deferred tax assets in respect of cumulative tax losses, as these losses were utilised against taxable profits in the current period. Business Overview
We began 2026 by further strengthening our core online music business, prioritising exceptional user experiences, distinctive content and our vibrant music community to support healthy, steady growth. We continued to diversify our content offerings, improve personalised recommendations and innovate product features, enhance the platform's aesthetic and emotional appeal and boost community engagement, while enriching our membership benefits. Our platform continues to be widely recognized by music enthusiasts, demonstrating steady improvement in user engagement and loyalty. These enhancements reinforce NetEase Cloud Music's distinctive community ecosystem and brand perception, underscoring the platform's inherent value and long-term sustainable growth potential.
We continued to strengthen our music-centric community ecosystem, with enhancements to the user experience and strong brand perception driving higher user engagement and thus a larger daily active user base in the first half of 2026. Our DAU/MAU ratio remained above 30%, increasing both year-over-year and sequentially. The average daily mobile music listening time rose steadily, and community content consumption and interaction penetration rates also increased notably. In particular, we improved retention and renewal rates across our expanded membership base both year-over-year and sequentially, reflecting stronger user loyalty and connection to the platform. We remain dedicated to engaging young music lovers. Our distinctive music content and experiences, trendsetting aesthetics, and unique emotional appeal continue to drive positive word-of-mouth. We expanded our presence across devices and scenarios, including collaboration with NetEase Games, broadening with more channels to reach and engage young audiences.
We have built a diverse and distinctive content library by expanding copyrighted music and promoting original music. Earlier this year, we renewed partnerships with major labels such as Universal Music Group. We added content from Korean and Chinese labels, as well as OSTs and variety show music, and enhanced our signature genres. Notably, original artist Gareth.T's new song "Glass" (《玻璃》) achieved industry-leading streaming performance on our platform, highlighting strong user affinity for our core genres. We also deepened our collaboration with labels to optimise content distribution and co-create value. In parallel, we remained committed to promoting original Chinese music, with recent in-house releases such as "12.31" earning widespread acclaim. Our unique ecosystem of independent artists continues to grow, offering expanded avenues for music creation and promotion.
In terms of products, we remained focused on user needs, advancing innovation across music discovery and consumption experiences while revitalizing community engagement. In the first half of 2026, we further refined our new product framework, making music exploration more intuitive and engaging. We further upgraded our self-developed AI generative recommendation model, Climber, and launched innovative functions, such as "AI-inspired Playlist" (AI靈感歌單), to address users' diverse music discovery preferences. We also innovated features such as several new player interfaces and the MV playback entrance on the vinyl player page, enriching users' audio-visual music journey. Meanwhile, we further boosted community interaction by upgrading the "Listen Together" (一起聽) feature, launching voice comments and enhancing our image- and text-based community ecosystem.
In the first half of 2026, our subscription-based membership revenue sustained steady growth, driven by an expanded subscriber base, though partially offset by monthly ARPPU (average revenue per paying user) dilution due to changes in the subscriber mix. We further refined our membership benefits built around content, features, dress-up privileges, as well as artist-related offerings. In addition to premium content, we offer more distinctive emotional experiences and innovative ways for users to interact. These enhancements supported both users' willingness to pay for premium experiences and membership retention.
Looking ahead, we will remain committed to enhancing the music experience and deepening user engagement across our platform by expanding high-quality content offerings, advancing product and feature innovation, and further strengthening our community. Our strategic priorities include the following initiatives:
Further diversifying and enhancing our differentiated content offerings, with greater efficiency. We plan to deepen collaborations with copyright holders and strengthen our independent artist incubation and in-house music production capabilities, focusing on our signature music genres; Optimising music listening experiences and recommendation features to meet users' needs and deliver ultimate music experience; Nurturing our music-oriented community ecosystem and exploring innovative inter-person interaction via enhancements to our comprehensive product offerings, including broadening communicative scenarios and ecology; Cultivating our users' willingness to pay and subscribe to premium offerings by improving user experience, deepening user engagement, enhancing membership privileges and broadening consumption scenarios; and Improving profitability through continued cost optimisation, operating efficiency enhancement and disciplined cost control. Diverse and differentiated content ecosystem
We are committed to expanding our distinctive content library by further diversifying our content mix across both licensed tracks and original music. We actively promote original Chinese music by supporting independent artists and developing in-house music. At the same time, we continue to advance music genres that resonate strongly with our users, including hip-hop and Western music.
Enhancing partnerships with copyright holders
Throughout the Reporting Period, we further strengthened our copyrighted content ecosystem, maintaining a disciplined and collaborative approach to renew major labels, expand offerings particularly in signature genres and deepen collaborations with artists.
Expansive catalogue of music labels. In the first half of 2026, we continued to enrich our copyrighted music catalogue by renewing strategic partnerships with major record labels such as Universal Music Group, Warner Music and CJ Entertainment, and added extensive Chinese content from partners such as Forward Music (豐華唱片), as well as K-Pop titles from labels including DSP Media. As a result, our library now features a wider selection of hit tracks from artists including Faye Wong (王菲), YOUNG POSSE, Lee Hyori and LNGSHOT. We also expanded our OST offerings by incorporating TVB drama soundtracks and music from several popular variety shows. Amplifying offerings in signature music genres. We further enriched our music library with high-quality selections across our signature genres such as hip-hop and Western music. These included the latest releases from hip-hop artists such as BENZO (李大奔), Melo, Boss Shady (謝帝), and emerging artists including Echo, Chun (春), and BroFA. We also expanded audience engagement across these genres through targeted artist initiatives, including offline events for BENZO's (李大奔's) new album "MODEL" and artist IP-themed virtual outfits. Furthermore, we advanced our copyright collaborations with popular Western artists such as Madilyn Bailey, DEMXNTIA, and Emma Stevens. In-depth collaborations with copyright partners. We deepened our cooperation with music labels and fostered mutual value creation through tailored campaigns designed to expand the reach and engagement of new releases. Gareth.T's new song "Glass" (《玻璃》) surpassed 100 million cumulative plays on NetEase Cloud Music, demonstrating strong user affinity for our signature genres such as R&B. For Western artists, we collaborated with Bruno Mars on an exclusive badge campaign tied to album listening, complemented by offline events, generating over 15 million streams. Also, our comprehensive campaign supporting Kanye West's album launch generated nearly 20 million total streams. Online and offline artist-centric activities. We worked closely with labels and artists to deliver artist-centric campaigns both online and offline, engaging younger audiences. During the period, we launched a series of integrated online and offline events centered around the Mayday anniversary, Hua Chenyu's (華晨宇's) birthday, Chris Lee's (李宇春's) concert tour, BENZO's (李大奔's) new album release, among others. We also promoted ticketing collaborations for MAMAMOO's 12th-anniversary tour, providing fans with a premium ticketing experience while supporting SVIP membership conversions. Additionally, we rolled out the innovative "Lyric Stamp" (歌詞郵票) feature, introducing 16 themed sets tailored to different contexts and scenarios, and upgraded our "Listen Together" (一起聽) function with artist participation. Strengthening our leading independent artists' ecosystem
Beyond licensed content, we continued to strengthen our independent artist ecosystem, supported by initiatives covering creation, distribution and commercial opportunities. By the end of June 2026, more than 1.25 million registered independent artists had contributed over 7.3 million tracks to our platform.
Supporting musicians in content creation.Through collaborations with original musicians and deeper integration with NetEase Games IPs, we connect original music creation with the gaming ecosystem. These efforts have produced several hit tracks, including "For the Next Goal" (《為下一球》), a World Cup-themed song by rapper Wang Yitai (王以太) for eFootball. Enhancing musician visibility and commercial opportunities. We advanced the NetEase Cloud Music Original Campus Tour, launching in April at Nanjing Agricultural University and hosting a graduation event in June at Guizhou Normal University, connecting artists directly with student audiences. We expanded commercial exposure for independent artists through collaboration with brands and IPs. Through partnership with the "HOPICO Music Awards," we created more opportunities for our independent musicians to perform at popular music festivals. Via the special collaboration series with JD, we co-created three concerts across different cities and musical genres, featuring artists including Jude Chiu (裘德), Vanessa Jin (金玟岐) and Orange Ocean (橘子海樂隊). Developing and promoting differentiated in-house music
Our in-house studios focus on producing distinctive, high-quality original music content to enrich our content matrix. In the first half of 2026, they successfully produced and popularised multiple hit songs that gained traction both across our community and on external platforms, such as "12.31".
Diversified audio-based content offerings
In addition to music, we expanded our audio offerings to cater to users' diverse interests. In the first half of 2026, our growing audio content library drove increased user consumption, with average listening time per user continuing to rise steadily.
PGC – audiobooks & radio dramas. We continued to expand our audiobook offerings by adding top-tier IP titles such as《斗羅大陸》and《元始法則》, alongside bestsellers like Mo Yan's (莫言's) new novel "People! !《人吶》," and the children's story "《貓平安逆襲傳奇》." Our in-house audiobooks like《靈境行者》have also become new hits on our platform. In terms of content cooperation, we have established stable partnerships with leading domestic copyright organizations – including Tomato Novel, and COL Group – consistently advancing our audiobook business toward higher quality and excellence. PUGC/UGC – podcast. Our podcast offerings focused on music-themed audio content and cultural podcast IPs, introducing over ten new podcast programs in the first half of 2026. We have partnered with Shan Jixiang (單霽翔) for his debut personal podcast "100 Events in the Century of the Palace Museum" (《故宮博物院百年百事》). We have also collaborated with musicians Li Runqi (李潤祺) and Si Nan (司南), as well as the well-known Japanese artist KOKIA, to produce music-themed podcasts. Additionally, we've welcomed hosts Chen Xiaonan (陳曉楠) and Li Sisi (李思思), author Liu Tong (劉同), and philosophy professor Chen Guo (陳果) to lead various podcast series. Furthermore, we launched a dedicated video podcast segment titled "Live Dialogues" (對話現場), featuring 13 high-quality video programs from labels such as "Midnightalks" (大內密談) and Story FM. Product innovation and community ecosystem
In the first half of 2026, we advanced personalised music discovery and listening experiences, introduced new AI-powered capabilities and expanded opportunities for users to interact around music, keeping our community vibrant. These enhancements improved user engagement, increased in-app music listening time, and drove greater user participation in community content, further deepening engagement across our platform.
Optimising users' music discovery and consumption experience
We continued to advance personalised recommendations and innovative features to make music discovery and listening more intuitive, personalised and engaging. In the first half of 2026, we introduced new features that give users more choices and better control over how they find, experience and interact with music.
Music content discovery and distribution. We are dedicated to providing users with a precise and personalised music journey. During the Reporting Period, we further refined the new framework within the NetEase Cloud Music App and expanded our AI-powered recommendation capabilities. The updated "Heartbeat Mode" (心動模式) page now displays the rationale behind song recommendations, providing users with greater context around personalised suggestions. We also upgraded Climber, our self-developed AI generative recommendation model, and introduced new, AI-powered music discovery features. For example, the AI-inspired playlist feature enables users to quickly generate custom algorithmic playlists, catering to diverse user needs. Enhancing the music consumption experience. We continued to broaden the ways users can personalise and experience music through new innovative audio-visual features. We launched several new player interfaces to drive consumption including the customisable "Diamond Player style" (鑽石播放器樣式), which features extensive DIY customisation options and has gained broad user adoption. We also promoted the "Full-Screen Cover" (全屏封面) player on the Heartbeat page and added direct access to music videos on the Vinyl Player page, offering a more immersive audio-visual experience. In addition, we introduced a series of AI-powered functions designed to create more personalised and emotionally engaging experiences, including the "AI Mood Tuner" (AI 情緒調音師) & "Mood Player" (情緒播放器), "AI Pet Player" (AI 寵物播放器), and "AIGC Personal Profile Backgrounds" (AIGC 個人主頁背景). Enhancing distinctive and evolving community
We further strengthened our distinctive and evolving music-oriented community by creating more ways for users to connect and interact around music. In the first half of 2026, we expanded and enhanced interactive scenarios across the platform, increasing the proportion of users consuming and interacting with community content. We upgraded the "Listen Together" (一起聽) feature, further strengthening the shared listening experience and sense of companionship for users, and introduced voice comments to enable richer interaction within comment sections. We also continued refining our music-inspired image- and text-based community ecosystem, which encouraged deeper community participation and engagement.
Expanding music consumption scenarios
We are committed to building a music consumption ecosystem across a broad range of scenarios, integrating music into everyday life, and making our music experience more accessible for younger audiences.
IoT layouts. In the first half of 2026, we continued to expand and refine a unified IoT multi-device experience, enhancing user reach and engagement. For in-vehicle use, we expanded our coverage to, among others, Chery, XPeng Robotaxi, and FAW Jiefang. For TVs, we introduced the "Spring Festival Lucky Journey" immersive experience and optimised the homepage layout and remote-control interface. For smartwatches, we added new player designs and watch faces. For PCs, we improved the desktop recommendation experience, added features like "AI Audio Master" (AI 調音大師) and enhanced compatibility for desktop use. Game collaborations. We continued to integrate NetEase Cloud Music into core gaming scenarios in NetEase Games' ecosystem, enriching in-game content experiences while conveying NetEase Cloud Music's brand essence, building cross-scenario user engagement and brand affinity. We expanded music features across diverse gameplay scenarios, providing users with multiple ways to access our music player within various game titles, including scenarios in Identity V, Where Winds Meet, Minecraft and Sky. Through these tailored collaborations, NetEase Cloud Music continues to strengthen its connections with younger users and enhance brand perception with this demographic. Conference Call
The Company's management will host an earnings conference call at 7:00 p.m. Beijing/Hong Kong Time on Thursday, August 20, 2026 (7:00 a.m. U.S. Eastern Time on the same day). Details for the conference call are as follows:
Event Title: NetEase Cloud Music Inc. First Half 2026 Earnings Conference Call
Registration Link: https://s1.c-conf.com/diamondpass/10056360-8au2z2.html
All participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of dial-in numbers, an event passcode, and a personal access PIN, which will be used to join the conference call.
A replay of the call will be accessible by phone at the following numbers and entering PIN: 10056360. The replay will be available through August 27, 2026.
Chinese Mainland:
400-120-9216
Hong Kong:
800-930-639
United States:
1-855-883-1031
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.music.163.com.
About NetEase Cloud Music Inc.
Launched in 2013 by NetEase, Inc. (NASDAQ: NTES; HKEX: 9999), NetEase Cloud Music Inc. (HKEX: 9899) is a well-known online music platform featuring a vibrant content community. Dedicated to providing an elevated user experience, NetEase Cloud Music Inc. provides precise, personalised recommendations, promotes user interaction and creates a strong social community. Its focus on discovering and promoting emerging musicians has made NetEase Cloud Music Inc. a destination of choice for exploring new and independent music among music enthusiasts in China. The platform has been recognised as the most popular entertainment app among China's vibrant Generation Z community.
Please see http://ir.music.163.com/ for more information.
Forward Looking Statements
This press release contains forward-looking statements relating to the business outlook, estimates of financial performance, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realised in the future. Underlying these forward-looking statements are a lot of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements.
Non-IFRS Measure
To supplement our consolidated results, which are prepared and presented in accordance with International Financial Reporting Standards ("IFRS"), our Company uses adjusted operating profit and adjusted net profit as additional financial measures, which are not required by, or presented in accordance with IFRS. We believe that these measures facilitate comparisons of operating performance from period to period and company to company by eliminating the potential impact of items that our management does not consider to be indicative of our Group's operating performance, such as certain non-cash items. The use of these non-IFRS measures has limitations as an analytical tool, and shareholders and potential investors of our Company should not consider them in isolation from, as a substitute for, as an analysis of, or superior to, our Group's results of operations or financial condition as reported under IFRS. In addition, these non-IFRS financial measures may be defined differently from similar terms used by other companies, and may not be comparable to other similarly titled measures used by other companies. Our presentation of these non-IFRS measures should not be construed as an implication that our future results will be unaffected by unusual or non-recurring items.
Investor Enquiries:
Angela Xu
NetEase Cloud Music Inc.
[email protected]
SOURCE NetEase Cloud Music