On September 9, NTES declined 3.03% in regular trading, trading at HKD 182.4 per share, with turnover of HKD 605 million. The stock continued its downward adjustment amid lingering concerns over second-quarter profit pressures and broader sector weakness.

The decline comes as the market continues to digest NTES's Q2 earnings, which showed net revenue of RMB 30.1 billion, up 7.9% year-over-year and above expectations. However, net profit attributable to shareholders fell 18.8% to RMB 6.98 billion, primarily weighed down by approximately RMB 2.95 billion in net investment losses and a sharp rise in the effective tax rate from 14.7% to 25.5%. At the operating level, gross margin improved to 70.5%, with game segment gross margin hitting a record 76.1%, driven by higher PC revenue contribution and channel optimization. Non-GAAP net profit also declined 18.7% to RMB 7.75 billion. Multiple brokerages have maintained or upgraded their ratings on NTES to Buy, citing improving operational profitability and a strong game pipeline.

Within the Interactive Home Entertainment sector, stocks broadly declined. KINGSOFT fell 3.48%, XD INC dropped 5.87%, NETDRAGON slid 2.93%, TANWAN lost 1.68%, while BOYAA gained 2.18%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)