Cuộc họp công bố kết quả kinh doanh Quý 2/2026 của NetEase (NTES): Doanh thu mảng trò chơi tăng 10%

Điểm tin chính

• NetEase đã công bố tổng doanh thu thuần quý 2/2026 đạt 30,1 tỷ RMB, trong đó bao gồm 25,0 tỷ RMB từ mảng trò chơi và các dịch vụ giá trị gia tăng liên quan.
• Doanh thu trò chơi trực tuyến tăng 10% so với cùng kỳ năm trước lên 24,5 tỷ RMB, nhưng giảm 2% so với quý trước do doanh thu giảm từ một số trò chơi tự phát triển và trò chơi nhận bản quyền.
• Biên lợi nhuận gộp của tập đoàn tăng lên 70,5% từ mức 64,7% của cùng kỳ năm trước. Biên lợi nhuận gộp mảng trò chơi và các dịch vụ liên quan đạt 76,1%, chủ yếu nhờ chi phí chia sẻ doanh thu với nền tảng giảm.
• Lợi nhuận ròng phi GAAP phân bổ cho cổ đông trong quý 2 đạt 7,7 tỷ RMB, với mức giảm so với cùng kỳ năm trước chủ yếu do lỗ đầu tư. Thu nhập phi GAAP đạt 1,78 USD trên mỗi cổ phiếu ADS.
• NetEase kết thúc tháng 6/2026 với 167,5 tỷ RMB tiền mặt ròng, tăng từ mức 153,5 tỷ RMB vào cuối năm 2025. Hội đồng quản trị đã thông qua mức cổ tức hàng quý là 0,48 USD trên mỗi cổ phiếu ADS.
• Ban lãnh đạo có kế hoạch tiếp tục đầu tư vào các trò chơi chất lượng cao và sử dụng AI để đẩy nhanh quá trình phát triển cũng như cải thiện trải nghiệm người chơi, đồng thời nhấn mạnh rằng các tựa game mới sẽ chỉ được phát hành sau khi đã hoàn thiện đầy đủ.

Dữ liệu tài chính cốt lõi

Tính đến ngày 30/6/2026, NetEase đã mua lại khoảng 24,8 triệu cổ phiếu ADS với tổng giá trị khoảng 2,3 tỷ USD theo chương trình mua lại cổ phiếu trị giá 5 tỷ USD hiện tại.

Kết quả kinh doanh và hoạt động

Trò chơi tiếp tục là động lực tăng trưởng chính. Mức tăng 10% so với cùng kỳ năm trước của doanh thu trò chơi trực tuyến là nhờ sự đóng góp tích cực hơn từ các tựa game tự phát triển. Tuy nhiên, so với quý trước, doanh thu đã giảm nhẹ do hiệu suất kém hơn từ một số trò chơi tự phát triển và trò chơi nhận bản quyền.

NetEase tiếp tục mở rộng và làm mới các thương hiệu game chủ lực lâu đời của mình thông qua nội dung mới, tích hợp đa nền tảng và vận hành dịch vụ trực tiếp (live-service). Eggy Party đã đạt 700 triệu người dùng đăng ký, trong khi số người dùng hoạt động hàng tháng duy trì trên 100 triệu. Tổng tiền thưởng cho nhà sáng tạo nội dung trong hệ sinh thái do người dùng tạo nội dung (UGC) đã đạt 200 triệu RMB.

Naraka: Bladepoint đã hợp nhất hệ sinh thái PC và di động trong quý và giới thiệu nội dung kỷ niệm lớn trong tháng 7. Marvel Rivals đã bổ sung các tướng mới, bản đồ, sự kiện và chế độ 18 đấu 18, đồng thời mở rộng hệ sinh thái thi đấu đối kháng thông qua các sự kiện dành cho người hâm mộ và giải đấu Mid-Season Finals.

Tăng trưởng doanh thu quý 2 của Youdao chủ yếu nhờ mảng dịch vụ học tập. Mảng kinh doanh này tiếp tục ứng dụng AI trong học tập, quảng cáo và dịch thuật, bao gồm một mô hình dịch thuật được nâng cấp mà ban lãnh đạo cho biết đã tăng tốc độ suy luận khoảng 80%.

NetEase Cloud Music đã duy trì tỷ lệ DAU trên MAU ở mức trên 30% trong nửa đầu năm 2026. Ban lãnh đạo cũng báo cáo sự cải thiện so với cùng kỳ năm trước và so với quý trước về tỷ lệ duy trì và gia hạn hội viên, cùng với sự tăng trưởng của số lượng hội viên đăng ký trả phí.

Rủi ro và các yếu tố cần theo dõi

• Doanh thu trò chơi trực tuyến giảm 2% so với quý trước do một số tựa game tự phát triển và nhận bản quyền mang lại doanh thu thấp hơn.
• Lợi nhuận ròng phi GAAP quý 2 giảm so với cùng kỳ năm trước, chủ yếu do lỗ đầu tư.
• Ban lãnh đạo thừa nhận rằng một tựa game vừa ra mắt gần đây đã nhận phải nhiều sự chỉ trích từ người dùng tại Trung Quốc. Đường cong học tập ở giai đoạn đầu của game chưa được tối ưu giảm tải đủ mức, làm ảnh hưởng đến trải nghiệm ban đầu của người chơi.
• Thời điểm ra mắt các trò chơi hiện đang trong quá trình thử nghiệm vẫn phụ thuộc vào việc tiếp tục hoàn thiện và đánh giá của ban lãnh đạo về trải nghiệm người chơi.
• NetEase đang bước vào thể loại thế giới mở đô thị có tính cạnh tranh gay gắt hơn với Ananta, khiến sự phân hóa sản phẩm, chất lượng nội dung và thiết kế lối chơi trở thành những yếu tố thực thi quan trọng.

Điểm nhấn phiên hỏi đáp với chuyên gia phân tích

Ban lãnh đạo cho biết phản ứng của người chơi đối với tựa game mới ra mắt được thảo luận trong cuộc họp đang cải thiện sau các bản cập nhật nội dung thường xuyên và tối ưu hóa trải nghiệm. Đội ngũ phát triển dự định tinh giản nội dung giai đoạn đầu, giảm rào cản tiếp cận và tiếp tục phục vụ nhóm người chơi nòng cốt của trò chơi. Ban lãnh đạo bày tỏ sự tin tưởng vào tiềm năng dài hạn của tựa game nhưng không đưa ra triển vọng định lượng.

Về Ananta, ban lãnh đạo cho biết quá trình phát triển đang tiến triển đúng tiến độ và đội ngũ đang trau chuốt trải nghiệm lối chơi. NetEase có kế hoạch tạo nên sự khác biệt cho tựa game RPG thế giới mở đô thị này thông qua bản sắc cốt truyện, bối cảnh và thiết kế lối chơi.

Khi được hỏi làm thế nào NetEase dự định duy trì tăng trưởng với danh mục sản phẩm tinh gọn hơn và mức nền so sánh cao hơn của các trò chơi hiện có, ban lãnh đạo khẳng định lại sẵn sàng đầu tư vào các sản phẩm chất lượng cao. Ban lãnh đạo mô tả AI là một công cụ đòn bẩy có thể đẩy nhanh quá trình phát triển và cải thiện trải nghiệm người dùng.

Đối với hai trò chơi hiện đang trong quá trình thử nghiệm, ban lãnh đạo không đưa ra ngày ra mắt cụ thể. Ban lãnh đạo cho biết cả hai sản phẩm vẫn đang trong quá trình hoàn thiện tích cực và sẽ được phát hành khi đáp ứng được kỳ vọng của người dùng.

Toàn văn biên bản cuộc họp báo cáo kết quả kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Good day, and welcome to the NetEase Second Quarter 2026 Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Brandi Piacente. Please go ahead.

Brandi Piacente

Thank you, operator. Please note that today's discussion will contain forward-looking statements relating to the future performance attended to qualify for the safe harbor from liability as established by the U.S. Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors.

Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and this discussion. A general discussion of the risk factors that could affect NetEase's business and financial results is included in certain filings of the company with the Securities and Exchange Commission including its annual report on Form 20-F and in announcements and filings on the Hong Kong Stock Exchange's website. The company does not undertake any obligation to update this forward-looking information, except as required by law.

During today's call, management will also discuss certain non-GAAP financial measures, which should not be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP for a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the second quarter 2026 earnings news release issued earlier today. As a reminder, this conference is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on the NetEase corporate website at ir.netease.com.

Joining us today on the call from NetEase's senior management are Mr. William Ding, Chief Executive Officer; Mr. Hu Jiron, Executive Vice President; Ms. Aileen Bin Mo, Vice President of Finance; and Mr. Bill Palms, Vice President of Corporate Development. I will now turn the call over to Bill, who will read the prepared remarks on William's behalf. Bill?

William Ding

Thank you, Brandi, and welcome, everyone, to today's call. Before we begin, I would like to remind everyone that all percentages are based on RMB. In the first half of 2016, we delivered healthy growth across business segments. Total revenue reached RMB 30.1 billion in the second quarter, driven by the solid performance of our Games business. Our Games and related value-add services generated net revenues of RMB 25 billion, reflecting the broader appeal of our portfolio in both domestic and overseas markets. The strength of our portfolio stands from our sustained focus on innovation across the full life cycle of our games from original concept and development through long-term life operations.

By combining our engineering capabilities, creative design expertise and disciplined execution we bring new ideas to life and deliver fresh experiences across genres, platforms and markets. One recent example is CM relevance released in China in July. It showcases our ongoing emphasis on our original IP and genre innovation. Built on our in-house game engine, CO relevance combines a distinctive video style with an open world ocean fantasy setting. Players by combining label compact, extraction in play and road bike progression, the game creates varied adventures that unfold differently each time.

Across Sims Island, players encounter a wide cost of NPCs that bring each island to life through meaningful interactions and evolving story lines. A variety of brand and content collaborations have also expanded the games reach, extending its content ecosystem beyond the core gameplay experience. We are also preparing for the game's global rollout and look forward to introducing so relevance to players worldwide.

Our innovation efforts are not only limited to new launches. They extended across our estate titles, where we keep evolving gameplay systems, introducing new content and strengthening live operations to sustain player enthusiasm over time. Sort of justice launched its major adversely update, new world in June.

The comprehensive upgrade to the open water experience improved visual quality, streamlined cultivation system and refined in-game economy, creating a more enjoyable experience for both returning and new players. It also introduced [ the tally], highly immersive new region to expand exploration and add greater solid taking bets. The community response was strong with active players existing 10 million on launch day and concurrent users reaching a 2-year high, demonstrating the title's ongoing appeal.

Players continue to gravitate to identify with the steady cadence of life service updates, including adversary content, crossover events and new gameplay experiences. In June, the game introduced cryptic nodes, a new PVE mode that offers a lighter experience beyond its core PVP game plan, opening up new ways for the community to play.

This excitement carried into July with the launch of Season 44, introducing new seed cost teams and events alongside the latest paper bride crossover. This update sport active discussions across live streaming and social media platforms, helping keep the community engaged and reinforcing the game's long-term appeal.

During the second quarter, the area 3-point franchise unified SPC and mobile ecosystems. Players can now enjoy the games singleton come back seamlessly across devices while strengthening connections across its broader player community. Building on the increased connectivity, Naraka: Bladepoint kicked off its fifth anniversary celebration in July with a major content update that introduced all new land and unwater battlefields as well as a new underwater compact system. These additions refresh the game's core experience and drove strong player engagement across platforms. Anti party further solidified its position as China's leading party game destination.

They reached a new milestone 700 million registered users and monthly active users remained steadily above $100 million. In June, the game celebrated its fourth anniversary, bringing another wave of player activity. supported by diverse game site, a vibrant EGC ecosystem and reach state of life operations. This strong momentum continued into the summer with Eggy Party remaining among the top rank titles on both China's LS top download and [indiscernible]. I'm picking a #3 on the top grossing chart. Peak daily active users also reached a multiyear high for the summer period. UGC remains 1 of AceParts defining strength.

Over the past year, the ecosystem has continued to strive, supported by more powerful creation tools and the growing base of engaged creators. Total credit rewards reached a new milestone of RMB 200 million to date, reflecting both the vitality of this creator community and strong player demand for diverse user-generated content. Recent upgrade to the editor, including integration with multiple AI models have also made it easier for creators to learn, create and program.

Together, this effort expands what players can create and support EgParty's evolution from a stand-alone party game into a broader content platform. Our flagship MMR finance was journey online, continue to evolve across both its classic and unlimited servers. During the summer, its new expansion pack and [indiscernible] content further engage players, underscoring its timely popularity and a healthy community. Meanwhile, Canexus Journey Mobile carried its record-setting momentum into the second quarter. supported by refinements to the in-game economy and ongoing game citations.

During the quarter, the game introduced a new equivalent progression system and an extraction gameplay move. These additions created fresh progression path and greater strategic debts, gaining real traction with players. In July, the summer treasury pavilion offered a wider selection of costumes and items pair to players' preferences driving robust commercial performance.

The launch of the origin server helped the Westward Journey returns build strong momentum in the second quarter. by preserving the iconic appeal of the Westwood Turney franchise while introducing a poultry mode interface and more relaxed game plan. the original server delivers a more accessible experience that players can enjoy anytime and anywhere, contributing to the title strong performance in Q2.

In-feed borders further reinforced its leading position in the Clingen through new innovative game play and initiative designed to address community needs. New features such as if border Q, a social deduction game mode were well received by players while its collaboration with Minecraft China to help the game reach broader and younger auditors. The launch of the highly anticipated special servers together with a series of pre-anniversary events ahead of its 11th anniversary generated renewed excitement across the community, demonstrating the titles in jury appeal and continued relevance in the strategic market.

Laid our success in the domestic market, we made additional steady progress in broadening our global reach. [indiscernible] has demonstrated a health growth trajectory, she's a successful launch, global launch last year. The player base continued to grow in the second quarter. with positive reviews on steam staying above 87%. In June, we bought this immersive open-world action RPG to even more places worldwide with the successful launch of Xbox.

The game also repeatedly ranked among the top 3 titles on Steam's global top seller chart following major content updates. This underscores the long-term potential of content-driven games and highlights our proven capabilities in delivering high-quality content and live operations. In the domestic market, [indiscernible] also expanded its clear community in the quarter with a major new region additions, including Tingo and Hangzhou, the Hunter expansion proved particularly popular and push the game to the #3 spot on China's LS top working chart.

This update brought distinctive local culture, fresh narrative and immersive exploration, driving year-over-year growth in quarterly revenue and achieving record high monthly active users. Marvel Rivals continue to build out its global success through a steady stream of seasonal content, live service updates and community initiatives. In June, the game introduced a refreshed 18 versus 18 mode setting Queenland Shenlong Arena, alongside new heroes, maps and events, the broadened game play variety.

Marvel Rival summer festival added further momentum with a wide selection of CM costumes for fan favorite characters, help pushing the game to #2 on global top seller chart and #1 in multiple regions, including the United States. Most recently, the franchise extended its reach beyond the screen through real-world touch points across major fan events. At San Diego Comicon in late July, more labels generated even more excitement among players with new announcements and interactive fund activities.

The Mid-Season Finals was later held in Los Angeles, attracting top players and fans while reinforcing the title's competitive ecosystem and long-term live services foundation. As we continue to grow our existing portfolio, we're also advancing the development of new titles and exploring fresh ideas across diverse genres, gameplay experiences and markets. NetEase is progressing steadily towards launch as a free spirited urban open wall RPG, the game invited players to experience a vibrant modern city through a variety of characters, lifestyles and activities providing a high degree of freedom in exploration and interaction.

With strong anticipation from player community, we will continue to share more updates as development progresses. Blood Message made a strong impression at the summer game fast, where overseas audience responded positively to the latest gameplay footage. The trailer has since generated around 40 million viewers globally with players creating its visual fidelity, distinctive story telling and cinematic combat. Our commitment to innovation and long-term operating capabilities also created value for partner titles. These titles performed well in China during the quarter, supported by localized operations and a steady stream of update.

Autoworld crap and Hearthstone continue to engage their long-standing communities in China. -- backed by consistent updates and initiatives tailored to the local market. Overwatch celebrated its tenth anniversary during the quarter with special content, rewards and activities that revitalize players and drove a significant increase in active users.

Diablo further expanded its presence in China through exclusive localized content, so life events and newly introduced Chinese methology SIM skins, driving solid growth in both active users and player retention during the second quarter. Together, this achievement reflects the breadth and strength of our portfolio for new releases to dissect titles across China and global markets through both our own IP and partner collaborations.

We aim to keep our games relevant and engaging through new ideas, ongoing content updates and disciplined life operations. while responding to evolving player expectations. This innovative mindset will continue to guide us as we build stronger communities and create even more compelling experiences for players worldwide.

Turning to our other businesses. You got further advance this CI native strategy and deepen AI-driven innovation across this ecosystem. In the second quarter, [indiscernible] launched its latest large language model confuso4, with substantially enhanced capabilities. The new model delivers stronger performance in visual mass and physics reasoning, particularly on complex diagrams onlower inference costs. [indiscernible] also upgraded its translation model with an efficient acceleration mechanism, increasing influence speed by approximately 80% beyond large language models, it further advanced its AI agent capabilities towards autonomous execution of complex real-world tasks, demonstrating stronger capabilities beyond simple cure injections.

The Learning Services segment continued its healthy development, driven by the strong performance of Jordan, popular features, including AI-powered English acid grading -- is recommendations and AI-based college emission advisers continue to enhance user satisfaction and drive higher user retention.

Within the segment, AI-driven subscriptions also maintained strong momentum. The advertising efficiency in Youdao's online marketing services also continued to improve. We recently launched a second-generation AI app placement optimizer further enhancing the user experience and advertising efficiency with more streamlined and automated features while capturing emerging opportunities in areas such as application and short-form dramas, Udo also made steady progress in client acquisition and retention.

Smart Devices segment sustained its focus on product innovation with the edotco pan maintaining a strong market position. In June, we launched the Udaan featuring an expanded library of 80 million awards and photo-based tutoring across the broadband drop subjects. -- during the 618 shopping vessel without Declan ranked #1 in sales on JD.com and Tmall, within this category for the seventh consecutive year.

Looking ahead, Udo will continue to execute its AI-native strategy across learning and advertising scenarios. For Nedis count music, we further developed its music-centric ecosystem in the first half of 2026, prioritizing exceptional user experiences, distinctive content and a vibrant music community to support healthy and steady growth. enhancement to user experience and strong brand perception continue to drive higher user engagement and expanding the daily active user base.

Our DAU versus MAU ratio remained above 30% in the first half of 2026, increasing both year-over-year and sequentially. The average daily mobile music listening time also rose steadily, with penetration rates of community content consumption and interactions improving notably. In particular, retention and renewal rates across our expanded membership base increased both year-on-year and sequentially, reflecting stronger user loyalty and deeper connection to the platform. We will also enrich our comprehensive and distinctive content library by expanding copyrighted music and promoting original music.

Earlier this year, we renewed the partnership with major labels such as Universal Music Group as well as adding new car and Chinese labels, OSTs and variety show music, while enhancing our signature genres. At the same time, we continue to promote original Chinese music with our recent in-house releases such as December 31, gaining widespread ac.

From the product process, we remain focused on user needs, advancing innovation across music discovery and consumption experiences while reclining our community by making music exploration more intuitive and engaging on the platform. We also launched innovative functions such as AI inspired playlists to address users' diverse music discovery preferences. Subscription-based membership grew as well, improving our music-oriented monetization.

We further refined membership benefit built around content, features, presentation privileges and office-related offerings, all of which enhance the performance overall value proposition and support ongoing membership growth.

Turning to Yanxuan. Yanxuan once again secured leading positions on e-commerce platforms across its key categories in the second quarter. New products in petfood, home sands and home goods categories performed well, generating healthy growth. Notably, the freshljy steamed [indiscernible] series which we launched last year with our differentiated steaming technology and fresh meat recipes continue to deliver solid sales while earning recognition from leading industry organizations.

In closing, across NetEase family of businesses, we remain committed to innovation and staying at the forefront of technology by integrating leading technologies into every stage of product development and operations. We create a compelling user experience that help shape industry trends. This approach continues to support sustainable growth across our business. games portfolio, in particular, it enhances the peer of both established titles and new releases, extending our success in China to broader global -- throughout the year, we will continue to foster an environment that empowers our developers to push creative boundaries.

As we advance our products with cutting-edge technology, we believe we are well positioned to create even more engaging experiences and enduring value for players, communities and shareholders. That concludes William's comments.

And I will turn the call over to Allen for more detailed discussion of our financial results. Thank you.

Aileen Bin Mo

Thank you, Bill. I will now provide a brief review of our 2026 interim financial results with a focus on the second quarter. Given the limited time on today's call, I will present some obliviate financial highlights. We encourage you to review our press release issued earlier today for further details.

As a reminder, all amounts are in RMB unless otherwise stated. Our total net revenue for the first half of 2025 were RMB 60.7 billion or USD 8.9 billion, representing a 7% increase year-over-year. For the second quarter, total revenue were RMB 30.1 billion or USD 4.4 billion.

During the first half, total net revenue from our games and the related VAS were RMB 15.7 billion, up 8% year-over-year. In the second quarter, net revenue grew 10% to reach RMB 25 billion. Specifically, net revenue from online games were RMB 49.5 billion for the first half, up 9% year-over-year.

In the second quarter, online games net revenue were RMB 24.5 billion decreasing 2% quarter-over-quarter and increasing 10% year-over-year. The quarter-over-quarter decrease was mainly due to a slight decline in net revenue from certain sales development game and license games.

The year-over-year increase was attributable to higher net revenue from self-development games such as Santen veteran franchise and their win mid.

Youdao's net revenue increased 4% to RMB 2.8 billion for the first half of 2023. In the second quarter, net revenue were RMB 1.5 billion, up 9% quarter-over-quarter and 3% year-over-year. The quarter-over-quarter and year-over-year increases were mainly attributable to higher net revenue from its lending services segment.

Net contused net revenue increased 3% year-over-year to RMB 4.0 billion for the first half 2026. In the second quarter, net revenues were RMB 2 billion, remaining broadly stable quarter-over-quarter and year-over-year. Net revenues from the innovative business and others totaled RMB 3.2 billion for the first half of 2026.

In the second quarter, net revenue were RMB 1.6 billion, up 6% quarter-over-quarter and down 4% year-over-year. The quarter-over-quarter increase was mainly attributable to higher net revenue from the e-commerce business and several other business within this segment. The year-over-year decrease was mainly due to a modest decline in net revenue from the e-commerce business. For the first half, our gross profit margin was 9%.

In the second quarter, our gross profit margin increased year-over-year to 70.5% from 64.7% in the prior year period. Looking at our second quarter margin in more detail. Gross profit margin was 76.1% from our games and related compared with 70.2% in the same period of last year. The improvement was primarily driven by lower revenue sharing costs related to platforms.

Our gross profit margin for Youdao was 48.9% compared with 43.6% in the same period of last year. The increase was mainly driven by improved gross profit margin from its lending services segment. Gross profit margin for net base cloud mix were 37.4% compared with 36.1% in the same period last year.

The increase was primarily driven by lower channel fee rates along with the continued cost structure optimization. For our innovative business and others, gross profit margin was 43.4% compared with 42.3% in the second quarter of 2025.

The improvement was primarily driven by the higher contribution from higher-margin business within this segment. Total operating expenses for the second quarter were RMB 9.1 billion, representing 30% of our total net revenue. Taking a closer look at our expense composition. Our selling and marketing expenses accounted for 12.2% of total net revenue in the second quarter compared with 12.8% in the same period of last year, remaining generally stable year-over-year.

For the first half, the ratio was 11.7%, and remaining broadly in line with the same period last year. Our G&A expenses accounted for 2.7% of total net revenues in the second quarter. compared with 3.8% in the same period of last year. For the first half, the ratio was 2.4% compared with 3.5% in the same period of last year.

Our R&D expenses remain stable 4% of total net revenues in the second quarter compared with 15.6% in the same period of last year. reflecting our consistent investment in innovation and content development. For the first half, the ratio was 15.0%, and remaining broadly in line with the same period of last year.

The effective tax rate was 21.7% for the first half and 25.5% for the second quarter. As a reminder, the effective tax rate is presented on an accrual basis, and the tax credits vary across each of our entities at different time periods, depending on applicable policies and our operations. Our non-GAAP net income attributable to shareholders for the second quarter totaled RMB 7.7 billion or USD 1.1 billion with the year-over-year decline primarily attributable to investment losses. Non-GAAP basic earnings per ADS for the quarter was USD 1.78 or USD 0.36 per share. For the first half, non-GAAP net income attributable to shareholders was down 8% year-over-year to RMB 19 billion or USD 2.8 billion, which is USD 4.38 per ADS or USD 0.88 per share.

Additionally, our cash position remains strong as of June 30, 2026. Our total net cash position was RMB 167.5 billion compared with RMB 153.5 billion at the end of 2025. In accordance with our dividend policy, we are pleased to report that our Board of Directors has approved a dividend of USD 9.6 per share or USD 0.48 per ADS for the second quarter.

Lastly, under our current USD 5 billion share repurchase program we had repurchased approximately 24.8 million ADS as of June 30, 2026 for a total cost of approximately USD 2.3 billion. Thank you for your attention.

We would now like to open the call to your questions.

Operator

[Operator Instructions] The first question comes from Alicia Yap with Citigroup. Ms. Yap, please go ahead with your question. Is your phone needed accidentally?

Phần hỏi đáp

Alicis a Yap

Yes, how long -- can you hear me now? [Foreign Language] So can management show the latest performance of Raman and also the expected growing for the next quarter? What aspects are currently doing well? And then what adjustments are planned in the future to further improve the games performance?

William Ding

[Foreign Language] So one of the elements ability in China market, we did receive a lot of user feedback and among which our a certain amount are critics. -- review what we -- all the feedback we receive, we like that where we're trying to explore a very bold video style and the rod-like game, which is the kind of novel open-world experience. We did not sufficiently lower the learning curve for players in the early stages, which, to some extent, affected the initial player experience. So that's feedback we have heard and been taken. So in the meantime, our team has prepared a substantial amount of large high-quality amount of content and which provide the foundation of the long-term operation and sustainable player community operation.

After this initial feedback around along with the high cadence of content update and experience optimization, we believe we have seen growing recognition from the players group of the gate games, core gameplay and cotton quality, which with discussions back to the games content and our ongoing operations the overall sentiment and satisfaction is continuing to improve.

Looking ahead, we will continue to serve our core players of the skin well and keep optimization, keep optimizing the experience problems we heard from players. In the meantime, we will streamline the early-stage game content, make sure the innovative game play could be better and wider accepted and experienced by the players. We are confident in the long-term potential of the game. Thank you for your question.

Operator

The next question comes from Xueqing Zhang with CICC. Please go ahead.

Xueqing Zhang

[Foreign Language] Can management update us on the development progress of Enanta with several competing titles targeting the urban open-world general. How does the company plan to differentiate the game and stand as further competition. Thank you.

William Ding

[Foreign Language] is well on track with this development as the team is now key polishing the game experience. We will unveil the game's latest progress at the Games can next week, so please stay tuned. In terms of competition, we believe Enanta has its own distinctive strengths as an urban open-world experience. The strength comes from the product's unique identity, is seen and it's gameplay design as well, which can offer players a fresh experience that stands apart from other open world urban games in the market.

Ultimately, we believe that the high-quality content the distinctive narrative identity, the innovative gameplay and sulphonation design will be the key to build a successful being a key part of the -- behind the success of products. Thank you for your question. Operator next question, please.

Operator

Your next question comes from Lincoln Kong with Goldman Sachs.

Lincoln Kong

[Foreign Language] So congrats on the very solid in the second quarter. So over the past 1 or 2 years, actually, the company proactively reduced the number of new conscious to focus the resources on the key titles. I mean while like a new release that we mean smart arrival delivered a very strong performance. So looking ahead, with a relatively lean of new games and the higher baseline for our existing portfolio have this company plan to drive further business growth. So what will be the primary growth driver and operating strategy moving forward?

William Ding

Okay. IWell, first of all, regarding the really high-quality products, we're not hesitated to keep investment in. And we're actually going to keep investments investing to keep building really high-quality quality level of premium products, premium quality of products. Of course, when doing new product, we need to make sure that we have a clear vision as well as the making sure the quality is definitely top notch.

And secondly, now as of today with the help of AI capabilities, which we believe is an amplifier that we believe we can expedite the development speed and as well as leveraging AI capabilities to improve the user experience on user playing out there. we have confidence that with the help of AI tools, we can build more high-quality products than most of our peers in the industry, providing a high-quality experience to our players. That's do something we have confidence in, and that's our view. And thank you for your question.

Operator

Your next question comes from Ritchie San with HSBC. Please go ahead.

Ritchie Sun

[Foreign Language] Thank you management for taking my question. So recently that you test games undergoing testing beneath the MIS and also Tamachi how do you -- does management view the monetization potential of these 2 games? And when can these games be launched?

William Ding

[Foreign Language] So thank you for your question. Both of the products you mentioned are still ongoing intensive refinement. And one is on the refinements approach stage that we believe will satisfy the users' demand and we will release them. As the gene developer, we believe player experience is a key of everything. We believe delivering an excellent experience is the foundation of achieving commercial success. Thank you for your question.

Operator

And that concludes the question-and-answer session. I would like to turn the conference back over to Brandi Piacente for any additional or closing comments. Andy, please go ahead with your closing comments.

Brandi Piacente

Thank you. Sorry for that. Thank you once again for joining us today. And if you have any further questions, please feel free to contact us. Thank you again. This concludes the conference. You may disconnect your line. Thank you.