HANGZHOU, China, Aug. 20, 2026 /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
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(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" ( ) 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 ), 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" ( ) 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 ( ), 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 ( ), 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 ( ), Melo, Boss Shady ( ), and
emerging artists including Echo, Chun ( ), and BroFA. We also expanded
audience engagement across these genres through targeted artist
initiatives, including offline events for BENZO's ( '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" ( ) 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 ( 's) birthday, Chris Lee's ( 's) concert tour,
BENZO's ( '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" ( )
feature, introducing 16 themed sets tailored to different contexts and
scenarios, and upgraded our "Listen Together" ( ) 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" ( ), a
World Cup-themed song by rapper Wang Yitai ( ) 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 ( ), Vanessa Jin ( ) and Orange Ocean ( ).
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 and , alongside
bestsellers like Mo Yan's ( 's) new novel "People! ! ," and the
children's story " ." Our in-house audiobooks like 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 (
) for his debut personal podcast "100 Events in the Century of the Palace
Museum" ( ). We have also collaborated with musicians Li Runqi ( ) and Si
Nan ( ), as well as the well-known Japanese artist KOKIA, to produce
music-themed podcasts. Additionally, we've welcomed hosts Chen Xiaonan (
) and Li Sisi ( ), author Liu Tong ( ), and philosophy professor Chen Guo
( ) to lead various podcast series. Furthermore, we launched a dedicated
video podcast segment titled "Live Dialogues" ( ), featuring 13
high-quality video programs from labels such as "Midnightalks" ( ) 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" ( ) 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" ( ), which
features extensive DIY customisation options and has gained broad user
adoption. We also promoted the "Full-Screen Cover" ( ) 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 ) & "Mood Player" ( ), "AI Pet Player" (AI ), and
"AIGC Personal Profile Backgrounds" (AIGC ).
Enhancing distinctive and evolving community
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