Analysis of Ding Yingfeng's Retirement and Impact on NetEase's Game Business & Valuation

Ding Yingfeng officially retired on December 31, 2025, and will continue to support NetEase as an advisor; the company’s announcement emphasized his key role in building NetEase’s flagship self-developed products and R&D/operation systems, and this retirement arrangement did not affect the group’s daily management operation structure[1]. Before and after Ding Yingfeng’s retirement, NetEase’s game business maintained active communication with the outside world, reinforcing the “transition + inheritance” signal.

1. Short-term Market Reaction
   : As of now (December 27, 2025), NetEase’s stock price remains stable in the $138 range, with a market capitalization of approximately 88.1 billion yuan, and valuation metrics maintain a healthy level (TTM P/E 17.9x, ROE 24%)[0]. The market has not made negative valuation adjustments in response to Ding Yingfeng’s retirement, reflecting institutional investors’ confidence in NetEase’s overall operation and cash flow capabilities (operating profit margin/net profit margin are both above 30%, with a sound asset-liability structure and ample liquidity)[0].
2. Core Competitiveness and Valuation Support
   : The R&D system, self-developed IP incubation capabilities, and mature lifecycle operations (long-term operation, R&D capabilities, global distribution) formed during Ding Yingfeng’s tenure have created a “moat”, enabling the game business to have sustained high profitability and cash flow flexibility. Even with leadership changes, if the successor team can maintain the R&D pace and global promotion rhythm, the valuation is expected to remain at its current high level; conversely, if there is a significant slowdown in operational efficiency or international expansion rhythm, the market may re-examine its growth assumptions.

1. Product and Distribution Rhythm
   : Before Ding Yingfeng’s retirement, the Interactive Entertainment Division had launched several key works in 2025, among which the open-world martial arts masterpiece Where Winds Meet exceeded 15 million players globally in its first month, with a high proportion of overseas users, showing that overseas expansion has substantial execution capability and market acceptance[2]. The project is still in the stage of continuous updates and cross-platform expansion, relying on the R&D team and distribution system rather than a single executive.
2. Organizational Structure and Inheritance Mechanism
   : Under Ding Yingfeng’s leadership, NetEase completed the construction of multi-level product lines (mobile, PC, console, overseas) and R&D systems, establishing a R&D ecosystem based on project-based systems, matrix management, and technology platformization. As Ding Yingfeng transitions to an advisor role, these mechanisms can still be continuously promoted through the “relay” of senior vice presidents and business backbones; he himself can still provide remote support in strategy, talent, and cooperation.
3. Governance/Incentives and External Image
   : Ding Lei’s high evaluation of him and his continued role as an advisor after retirement reflect the company’s intention to retain core experience at the governance level, which helps stabilize team perception internally and maintain partner confidence externally.

1. Talent/Decision-Making Agility
   : Although senior experience remains, the new generation of leaders needs to quickly adapt and maintain overall coordination of strategic directions such as overseas distribution, AI games, and IP ecosystems to avoid interruptions in decision-making rhythm; the company may consider strengthening cross-business collaboration committees to fill the signal gap caused by the “absence of core figures”.
2. Content and Operation Rhythm
   : It is necessary to pay attention to whether continuous content updates, regional localization, and community operations can be promoted for global projects such as Where Winds Meet, especially when facing local competitors in European, American, and Southeast Asian markets, where execution capabilities need to be maintained.
3. Investor Communication
   : In the short term, NetEase should continue to strengthen external communication (including executive transition arrangements, product roadmaps, and game IP pipelines) to avoid market short-term concerns amplifying valuation correction pressure.

Overall, the impact of Ding Yingfeng’s retirement on NetEase’s valuation is relatively limited; his contributions have been partially solidified through organizational mechanisms, and the main risks lie in continuity management and the execution rhythm of new leaders. If the company can use his advisor role to strengthen strategic inheritance and maintain the global rhythm of popular games, it can continue to support the current valuation level. It is recommended to pay attention to the personnel arrangements of the Interactive Entertainment Division, product release rhythm, and overseas revenue proportion in future financial reports and management conference calls. For more in-depth and quantitative follow-up judgments, consider launching a “deep investment research model” to obtain more detailed industry prosperity, R&D pipeline, and operational efficiency data.

[0] Jinling API Data (Company Overview, Real-Time Market, Financial Analysis, Technical Analysis, 2025-12-27)
[1] Yahoo Finance – “NetEase Announces Management Change” (https://finance.yahoo.com/news/netease-announces-management-change-211500270.html)
[2] TechNode – “NetEase’s Where Winds Meet reaches 15 million global players within first month” (https://technode.com/2025/12/16/neteases-where-winds-meet-reaches-15-million-global-players-within-first-month/)