(Yicai) Nov. 21 -- NetEase, a leading Chinese mobile games maker, reported a 32 percent jump in profit for the third quarter from a year ago, partly thanks to higher income from investments and a drop in foreign exchange losses.

Net profit was CNY8.6 billion (USD1.2 billion) in the three months ended Sept. 30, the Hangzhou-based firm said in an earnings report late yesterday. Investment income surged 138 percent to CNY1.4 billion, while forex losses shrank 65 percent to CNY370 million (USD52.1 million).

Operating revenue rose 8.2 percent to CNY28.4 billion (USD4 billion). Gaming and value-added services income gained 12 percent to CNY23.3 billion, with online games accounting for 98 percent of that.

Gaming revenue growth was mainly powered by classic titles such as Fantasy Westward Journey and Eggy Party, new titles such as Yan Yun Sixteen Tones and Marvel Rivals, and several proxy games, NetEase noted.

NetEase will stay focused on improving its existing successful games, and will not spread effort across many uncertain new projects, executives said on the firm’s earnings conference call. NetEase will take a very cautious approach to new projects, only launching content that is competitive, they added.

The company’s shares [HKG: 9999] finished 3.8 percent lower at HKD204.60 (USD26.28) each in Hong Kong today amid a broad market decline. In New York-listed stock [NASDAQ: NTES] closed 0.4 percent higher at USD133.95 yesterday.

NetEase's commitment to creating quality games remains unchanged, the executives noted, so more resources will flow to evergreen projects, but the company will also support innovative teams given the opportunity.

With regard to the relatively frequent departures of mid-level and senior executives in recent years, management said staff turnover is normal and does not affect daily operations. NetEase decisively prunes teams that fail to keep up with market trends and user demands to ensure vigorous core business growth, they said.

Many middle-ranked managers have exited NetEase over the past two years, with the latest being Li Kaiming, head of the 10th division of NetEase Interactive Entertainment, who left to start his own business late last month. Li and his team developed top games such as Infinite Borders‌.

After deducting short-term and long-term borrowings, NetEase's cash and cash equivalents, current and non-current time deposits, and balances stood at CNY153.2 billion (USD21.6 billion) as of Sept. 30, up from CNY131.5 billion at the end of last year, according to the company.

Editors: Tang Shihua, Martin Kadiev