(Yicai) May 16 -- Shares in NetEase soared both in Hong Kong and New York today after the Chinese internet giant posted better-than-expected earnings results for the first three months, fueled by robust growth in its gaming business.

NetEase’s Hong Kong-traded shares [HKG:9999] soared 13 percent to close at HKD190 (USD24.32), close to the all-time high of HKD195.67 set in February 2021. Its US-listed stock [NASDAQ:NTES] surged 14.6 percent to finish the day at USD122.76 yesterday, also the second-highest level ever.

NetEase’s net profit surged 35 percent in the three months ended March 31 from the same period last year to CNY10.3 billion (USD1.4 billion), according to the earnings report released by the Hangzhou-based firm last night. While revenue jumped 7 percent to CNY28.8 billion (USD4 billion), smashing market expectations of CNY28.5 billion.

“We entered 2025 with solid momentum, fueled by our ongoing innovation and new titles that strengthen our reach across genres and resonate with players around the world," said Chief Executive Officer and Director William Ding. "In addition to the strong performance of our latest games, our long-standing franchises continue to thrive, powered by outstanding content updates and continuous gameplay enhancements that bring fresh takes to player experiences.”

Of the new titles mentioned by Ding, ‘Where Winds Meet’ is a martial arts open-world game launched in December last year which had amassed more than 30 million registered players as of the end March. Another standout title, ‘Marvel Rivals,’ is a team-based shooter game aimed at overseas players that topped the Steam sales chart after launching its second season last month, according to the financial report.

Thanks to the strong performance of these new releases, along with the steady growth of its long-term hits such as ‘Fantasy Westward Journey Online,’ ‘Infinite Borders’ and ‘Identity V,’ NetEase’s gaming and related value-added services revenue surged 12 percent year on year to CNY24 billion (USD3.3 billion).

‘Where Winds Meet’ is a major project for NetEase that has been five years in the making, Ding said at the earnings call. NetEase will continue to invest heavily to optimize the game’s visual quality and gameplay. At the same time, it will keep investing to expand its presence in overseas markets, he added.

Not all business segments saw growth, though. Online education platform Youdao logged a 7 percent dive in revenue to CNY1.3 billion (USD178.9 million), its music streaming service NetEase Cloud Music posted an 8 percent fall to CNY1.9 billion (USD256.1 million), and earnings from innovative and other businesses plunged 18 percent to CNY1.6 billion (USD223.8 million).

NetEase is also actively promoting the use of AI technology across its businesses. The company is using AI to help generate story content in games and improve interactions between players and non-playable characters so as to make the gaming experience more immersive, it said.

Editors: Dou Shicong, Kim Taylor