CICC has released a research report, reaffirming its 'Outperform' rating for NetEase Youdao and establishing a target price of $13. The report highlights that NetEase Youdao delivered outstanding performance in the second quarter of 2025, surpassing market expectations in both revenue and profit. This remarkable achievement can be attributed to the accelerated commercialization of the company's AI technologies and the optimization of its business structure, which led to Youdao achieving operating profitability for the first time in the second quarter. Financial statements reveal that Youdao's net revenue for the second quarter of 2025 amounted to RMB 1.42 billion, marking a 7.2% year-over-year increase. Additionally, the Non-GAAP net profit attributable to shareholders stood at RMB 12.52 million. Concurrently, operating profit reached RMB 28.8 million, representing a year-over-year increase of 7.5 percentage points, setting a new record for the same period in its history.