| Summary of the Group's operating segment results |
The CODM uses net revenues and gross profit to assess performance for each segment and in competitive analysis by benchmarking to the Group’s competitors. The CODM also uses net revenues and gross profit to allocate resources during the budgeting review process. There was no significant transaction between reportable segments for the years ended December 31, 2023, 2024 and 2025. | | | | | | | | | For the year ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | Net revenues: | | | | | | | Games and related value-added services | | 81,565,449 | | 83,622,643 | | 92,148,608 | Youdao | | 5,389,208 | | 5,625,919 | | 5,909,019 | NetEase Cloud Music | | 7,866,992 | | 7,950,146 | | 7,759,450 | Innovative businesses and others | | 8,646,510 | | 8,096,528 | | 6,808,730 | Total net revenues | | 103,468,159 | | 105,295,236 | | 112,625,807 | | | | | | | | Cost of revenues: | | | | | | | Games and related value-added services | | (25,938,865) | | (26,142,623) | | (27,910,861) | Youdao | | (2,621,746) | | (2,877,428) | | (3,292,191) | NetEase Cloud Music | | (5,764,322) | | (5,268,634) | | (4,989,858) | Innovative businesses and others | | (6,079,832) | | (5,199,467) | | (4,031,029) | Total cost of revenues | | (40,404,765) | | (39,488,152) | | (40,223,939) | | | | | | | | Gross profit: | | | | | | | Games and related value-added services | | 55,626,584 | | 57,480,020 | | 64,237,747 | Youdao | | 2,767,462 | | 2,748,491 | | 2,616,828 | NetEase Cloud Music | | 2,102,670 | | 2,681,512 | | 2,769,592 | Innovative businesses and others | | 2,566,678 | | 2,897,061 | | 2,777,701 | Total gross profit | | 63,063,394 | | 65,807,084 | | 72,401,868 |
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| Schedule of disaggregation of net revenues by timing of revenue recognition |
The following table set forth the disaggregation of net revenues by timing of revenue recognition for the years ended December 31, 2023, 2024 and 2025 (in thousands): | | | | | | | | | For the year ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | A point in time | | 27,140,994 | | 24,144,017 | | 20,540,213 | Over time | | 76,327,165 | | 81,151,219 | | 92,085,594 | Total Net revenue | | 103,468,159 | | 105,295,236 | | 112,625,807 |
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| Schedule of total depreciation and amortization expenses of property, equipment and software recorded under cost of revenues by segment |
The following table presents the total depreciation and amortization expenses of property, equipment and software recorded under cost of revenues by segment for the years ended December 31, 2023, 2024 and 2025 (in thousands): | | | | | | | | | For the year ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | Games and related value-added services | | 223,156 | | 246,422 | | 277,271 | Youdao | | 9,275 | | 9,119 | | 6,718 | NetEase Cloud Music | | 2,452 | | 3,027 | | 699 | Innovative businesses and others | | 60,126 | | 47,084 | | 106,380 | Total depreciation and amortization expenses of property, equipment and software | | 295,009 | | 305,652 | | 391,068 |
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