NetEase shares plunged to a nine-month low in Hong Kong, dropping 5.3% to HK$184.7 after the Chinese gaming giant reported disappointing Q4 results. The 6.24 billion yuan ($902.9 million) net profit missed analyst expectations by 22%, falling 29% year-on-year despite revenue growth.

Revenue climbed 3% to 27.55 billion yuan, but growth decelerated sharply from previous quarters. New releases like Fantasy Westward Journey and Where Winds Meet boosted sales, yet these gains were negated by rising operating expenses and investment losses, squeezing profit margins.

As China's second-largest gaming company behind Tencent, NetEase faces mounting pressure to deliver from its upcoming titles Ananta and Sea of Remnants. The disappointing earnings signal challenges in China's competitive gaming market, where rising costs and slower growth are becoming the new normal.

The stock decline also dragged down Hong Kong's Hang Seng Index by 0.8%, reflecting investor concern across the Chinese tech sector. NetEase's U.S.-listed shares fell 4% on Wednesday, extending the pain for international investors tracking the company's performance across both markets.