NetEase Inc (NTES)

NetEase shares slip despite first-quarter earnings and revenue beat (NTES)May 21, 2026 6:21 AM
IH Market News NetEase (NASDAQ:NTES) reported first-quarter results ahead of analyst expectations, although the company’s shares fell around 2% following the release as investors focused on broader earnings trends and future growth prospects.The Chinese gaming and internet group posted adjusted earnings per share of RMB17.46, comfortably above analyst forecasts of RMB15.39.Quarterly revenue reached RMB30.6 billion (US$4.4 billion), exceeding the consensus estimate of RMB29.65 billion and marking a 6.1% increase compared with the same period in 2025.NetEase’s core gaming and value-added services division generated revenue of RMB25.7 billion (US$3.7 billion), up 6.9% year-on-year.Revenue from NetEase Cloud Music rose 6.6% to RMB2.0 billion (US$287.2 million), while education technology unit Youdao recorded a 3.8% increase in revenue to RMB1.3 billion (US$195.4 million).Meanwhile, revenue from innovative businesses and other operations declined 4.6% year-on-year to RMB1.5 billion (US$224.6 million).Gross profit increased 14.8% to RMB21.2 billion (US$3.1 billion), while total operating expenses rose 6.5% to RMB8.6 billion (US$1.2 billion).Adjusted net income attributable to shareholders reached RMB11.3 billion (US$1.6 billion), translating into adjusted basic earnings per ADS of US$2.56.“For the first quarter of 2026, we delivered another solid quarter across our established gaming portfolio, while continuing to make steady progress advancing our pipeline of new titles,” said William Ding, Chief Executive Officer and Director of NetEase.The company highlighted continued strong engagement across several major gaming franchises, including Fantasy Westward Journey, Identity V, Eggy Party, Sword of Justice and Where Winds Meet.NetEase also pointed to ongoing progress in its international expansion strategy through titles such as Where Winds Meet and Marvel Rivals, while noting that Blizzard titles continued to operate steadily in the Chinese market.NetEase stock price Original: NetEase shares slip despite first-quarter earnings and revenue beat (NTES)

NetEase Announces First Quarter 2026 Unaudited Financial ResultsMay 21, 2026 4:30 AM
PR Newswire (US) HONG KONG, May 21, 2026 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), a leading internet and game services provider, today announced its unaudited financial results for the first quarter ended March 31, 2026.First Quarter 2026 Financial HighlightsNet revenues were RMB30.6 billion (US$4.4 billion), an increase of 6.1% compared with the same quarter of 2025.Games and related value-added services net revenues were RMB25.7 billion (US$3.7 billion), an increase of 6.9% compared with the same quarter of 2025.Youdao net revenues were RMB1.3 billion (US$195.4 million), an increase of 3.8% compared with the same quarter of 2025.NetEase Cloud Music net revenues were RMB2.0 billion (US$287.2 million), an increase of 6.6% compared with the same quarter of 2025.Innovative businesses and others net revenues were RMB1.5 billion (US$224.6 million), a decrease of 4.6% compared with the same quarter of 2025.Gross profit was RMB21.2 billion (US$3.1 billion), an increase of 14.8% compared with the same quarter of 2025.Total operating expenses were RMB8.6 billion (US$1.2 billion), an increase of 6.5% compared with the same quarter of 2025.Net income attributable to the Company's shareholders was RMB10.7 billion (US$1.5 billion). Non-GAAP net income attributable to the Company's shareholders was RMB11.3 billion (US$1.6 billion).[1]Basic net income per share was US$0.48 (US$2.42 per ADS). Non-GAAP basic net income per share was US$0.51 (US$2.56 per ADS).[1][1] As used in this announcement, non-GAAP net income attributable to the Company's shareholders and non-GAAP basic and diluted net income per share and per ADS are defined to exclude share-based compensation expenses. See the unaudited reconciliation of GAAP and non-GAAP results at the end of this announcement.First Quarter 2026 and Recent Operational HighlightsSustained strong engagement and revenue performance across established titles, including the Fantasy Westward Journey franchise, Identity V, Eggy Party, Sword of Justice and Where Winds Meet, supported by high-cadence content updates and gameplay innovation.Advanced global expansion through key titles, such as Where Winds Meet and Marvel Rivals, amplifying their international reach and deepening player engagement.Blizzard titles maintained stable operations in China with a steady rollout of localized content."For the first quarter of 2026, we delivered another solid quarter across our established gaming portfolio, while continuing to make steady progress advancing our pipeline of new titles," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Our recent global launches have demonstrated strong cross-market appeal, supporting the continued execution of our international expansion strategy."Looking ahead, we will continue to strengthen our technological capabilities and focus on innovation across both content and development. By combining evolving technologies with our deep operating expertise, we aim to create exceptional content and experiences that exceed players' expectations and reach an even broader global audience," Mr. Ding concluded.First Quarter 2026 Financial ResultsNet RevenuesNet revenues for the first quarter of 2026 were RMB30.6 billion (US$4.4 billion), compared with RMB27.5 billion and RMB28.8 billion for the preceding quarter and the same quarter of 2025, respectively.Net revenues from games and related value-added services were RMB25.7 billion (US$3.7 billion) for the first quarter of 2026, compared with RMB22.0 billion and RMB24.0 billion for the preceding quarter and the same quarter of 2025, respectively. Net revenues from the operation of online games accounted for approximately 97.5% of the segment's net revenues for the first quarter of 2026, compared with 96.8% and 97.5% for the preceding quarter and the same quarter of 2025, respectively. The quarter-over-quarter and year-over-year increases were attributable to higher net revenues from self-developed games, such as the Fantasy Westward Journey franchise and Where Winds Meet.Net revenues from Youdao were RMB1.3 billion (US$195.4 million) for the first quarter of 2026, compared with RMB1.6 billion and RMB1.3 billion for the preceding quarter and the same quarter of 2025, respectively. The quarter-over-quarter decrease was mainly due to decreased net revenues from its learning services and smart devices.Net revenues from NetEase Cloud Music were RMB2.0 billion (US$287.2 million) for the first quarter of 2026, compared with RMB2.0 billion and RMB1.9 billion for the preceding quarter and the same quarter of 2025, respectively.Net revenues from innovative businesses and others were RMB1.5 billion (US$224.6 million) for the first quarter of 2026, compared with RMB2.0 billion and RMB1.6 billion for the preceding quarter and the same quarter of 2025, respectively. The quarter-over-quarter decrease was led by decreased net revenues from e-commerce and advertising businesses.Cost of RevenuesCost of revenues for the first quarter of 2026 was RMB9.4 billion (US$1.4 billion), compared with RMB9.9 billion and RMB10.3 billion for the preceding quarter and the same quarter of 2025, respectively. The quarter-over-quarter decrease was mainly due to lower product costs. The year-over-year decrease was mainly due to lower revenue-sharing costs related to platforms.Gross ProfitGross profit for the first quarter of 2026 was RMB21.2 billion (US$3.1 billion), compared with RMB17.7 billion and RMB18.5 billion for the preceding quarter and the same quarter of 2025, respectively.Operating ExpensesTotal operating expenses for the first quarter of 2026 were RMB8.6 billion (US$1.2 billion), compared with RMB9.4 billion and RMB8.0 billion for the preceding quarter and the same quarter of 2025, respectively. The variances in both the quarter-over-quarter and year-over-year results were primarily attributable to fluctuations in marketing expenses and general and administrative expenses.Other Income/(Expenses)Other income/(expenses) consisted of investment income/(loss), interest income, net exchange gains/(losses) and others. The quarter-over-quarter increase was mainly attributable to the gain from the disposal of certain long-term investments and lower investment impairment provisions in the first quarter of 2026. The year-over-year decrease was primarily due to fair value changes of equity security investments and higher foreign exchange losses recognized in the first quarter of 2026.Income TaxThe Company recorded a net income tax charge of RMB2.5 billion (US$365.9 million) for the first quarter of 2026, compared with RMB1.3 billion and RMB1.9 billion for the preceding quarter and the same quarter of 2025, respectively. The effective tax rate for the first quarter of 2026 was 18.9%, compared with 16.4% and 15.3% for the preceding quarter and the same quarter of 2025, respectively. The effective tax rate represents certain estimates by the Company as to the tax obligations and benefits applicable to it in each quarter.Net Income and Non-GAAP Net IncomeNet income attributable to the Company's shareholders totaled RMB10.7 billion (US$1.5 billion) for the first quarter of 2026, compared with RMB6.2 billion and RMB10.3 billion for the preceding quarter and the same quarter of 2025, respectively.Basic net income was US$0.48 per share (US$2.42 per ADS) for the first quarter of 2026, compared with US$0.28 per share (US$1.42 per ADS) and US$0.47 per share (US$2.35 per ADS) for the preceding quarter and the same quarter of 2025, respectively.Non-GAAP net income attributable to the Company's shareholders totaled RMB11.3 billion (US$1.6 billion) for the first quarter of 2026, compared with RMB7.1 billion and RMB11.2 billion for the preceding quarter and the same quarter of 2025, respectively.Non-GAAP basic net income was US$0.51 per share (US$2.56 per ADS) for the first quarter of 2026, compared with US$0.32 per share (US$1.61 per ADS) and US$0.51 per share (US$2.57 per ADS) for the preceding quarter and the same quarter of 2025, respectively.Other Financial InformationAs of March 31, 2026, the Company's net cash (total cash and cash equivalents, current and non-current time deposits and restricted cash, as well as short-term investments balance, minus short-term and long-term loans) totaled RMB167.5 billion (US$24.3 billion), compared with RMB163.5 billion as of December 31, 2025. Net cash provided by operating activities was RMB13.7 billion (US$2.0 billion) for the first quarter of 2026, compared with RMB14.8 billion and RMB12.1 billion for the preceding quarter and the first quarter of 2025, respectively.Quarterly DividendThe board of directors approved a dividend of US$0.144 per share (US$0.720 per ADS) for the first quarter of 2026 to holders of ordinary shares and holders of ADSs as of the close of business on June 5, 2026, Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars. For holders of ordinary shares, in order to qualify for the dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company's Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong, no later than 4:30 p.m. on June 5, 2026 (Beijing/Hong Kong Time). The payment date is expected to be June 15, 2026 for holders of ordinary shares and on or around June 18, 2026, for holders of ADSs.NetEase paid a dividend of US$0.232 per share (US$1.16 per ADS) for the fourth quarter of 2025 in March 2026.Under the Company's current dividend policy, the determination to make dividend distributions and the amount of such distribution in any particular quarter will be made at the discretion of its board of directors and will be based upon the Company's operations and earnings, cash flow, financial condition and other relevant factors.Share Repurchase ProgramOn November 20, 2025, the Company announced the extension of its previously approved share repurchase program of up to US$5.0 billion of the Company's ADSs and ordinary shares in open market or other transactions for an additional 36 months until January 9, 2029. As of March 31, 2026, approximately 23.2 million ADSs had been repurchased under this program for a total cost of US$2.1 billion.The extent to which NetEase repurchases its ADSs and its ordinary shares depends upon a variety of factors, including market conditions. These programs may be suspended or discontinued at any time.** The United States dollar (US$) amounts disclosed in this announcement are presented solely for the convenience of the reader. The percentages stated are calculated based on RMB.Conference Call NetEase's management team will host a teleconference call with a simultaneous webcast at 8:00 a.m. Eastern Time on Thursday, May 21, 2026 (Beijing/Hong Kong Time: 8:00 p.m., Thursday, May 21, 2026). NetEase's management will be on the call to discuss the quarterly results and answer questions.Interested parties may participate in the conference call by dialing 1-914-202-3258 and providing conference ID: 10054538, 15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-855-883-1031 and entering PIN: 10054538. The replay will be available through May 28, 2026.This call will be webcast live, and the replay will be available for 12 months. Both will be available on NetEase's Investor Relations website at http://ir.netease.com/.About NetEase, Inc.NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase") is a leading internet and game services provider centered around premium content. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of the most popular and longest-running mobile and PC games available in China and globally.Powered by one of the largest in-house game R&D teams focused on mobile, PC and console, NetEase creates superior gaming experiences, inspires players, and passionately delivers value for its thriving community worldwide. By infusing play with culture, and education with technology, NetEase transforms gaming into a meaningful vehicle to build a more entertaining and enlightened world.Beyond games, NetEase service offerings include its majority-controlled subsidiaries Youdao (NYSE: DAO), an intelligent learning and advertising solutions provider, and NetEase Cloud Music (HKEX: 9899), a well-known online music platform featuring a vibrant content community, as well as Yanxuan, NetEase's private-label consumer lifestyle brand.For more information, please visit: http://ir.netease.com/.Forward Looking StatementsThis announcement contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions. In addition, statements that are not historical facts, including statements about NetEase's strategies and business plans, its expectations regarding the growth of its business and its revenue and the quotations from management in this announcement are or contain forward-looking statements. NetEase may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that the online games market will not continue to grow or that NetEase will not be able to maintain its position in that market in China or globally; risks associated with NetEase's business and operating strategies and its ability to implement such strategies; NetEase's ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; potential changes in regulatory environment in the markets where NetEase operates; the risk that NetEase may not be able to continuously develop new and creative online services or that NetEase will not be able to set, or follow in a timely manner, trends in the market; risks related to evolving economic cycles and geopolitical tensions, including the direct or indirect impacts of national trade, investment, protectionist, tax or other laws or policies as well as export controls and economic or trade sanctions; risks related to the expansion of NetEase's businesses and operations internationally; risks associated with cybersecurity threats or incidents; and fluctuations in foreign currency exchange rates that could adversely affect NetEase's business and financial results. Further information regarding these and other risks is included in NetEase's filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. NetEase does not undertake any obligation to update this forward-looking information, except as required under applicable law.Non-GAAP Financial Measures NetEase considers and uses non-GAAP financial measures, such as non-GAAP net income attributable to the Company's shareholders and non-GAAP basic and diluted net income per ADS and per share, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").NetEase defines non-GAAP net income attributable to the Company's shareholders as net income attributable to the Company's shareholders excluding share-based compensation expenses. Non-GAAP net income attributable to the Company's shareholders enables NetEase's management to assess its operating results without considering the impact of share-based compensation expenses. NetEase believes that this non-GAAP financial measure provides useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose. NetEase also believes that the use of this non-GAAP financial measure facilitates investors' assessment of its operating performance.Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP net income attributable to the Company's shareholders is that it does not reflect all items of expense/ income that affect our operations. Share-based compensation expenses have been and may continue to be incurred in NetEase's business and are not reflected in the presentation of non-GAAP net income attributable to the Company's shareholders. In addition, the non-GAAP financial measures NetEase uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited.NetEase compensates for these limitations by reconciling non-GAAP net income attributable to the Company's shareholders to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. See the unaudited reconciliation of GAAP and non-GAAP results at the end of this announcement. NetEase encourages you to review its financial information in its entirety and not rely on a single financial measure.Contact for Media and Investors:
Email: ir @STUDZ75-3378NETEASE, INC.




UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)





 December 31,  
 March 31, 
 March 31, 
2025
2026
2026
 RMB  
 RMB  
 USD (Note 1) Assets




Current assets:




   Cash and cash equivalents47,167,904
50,815,211
7,366,659   Time deposits92,639,378
80,109,903
11,613,497   Restricted cash4,319,344
4,502,968
652,793   Accounts receivable, net5,337,819
6,492,901
941,273   Inventories689,183
546,030
79,158   Prepayments and other current assets, net7,658,346
6,212,901
900,682   Short-term investments22,803,503
39,978,723
5,795,698Total current assets180,615,477
188,658,637
27,349,760





Non-current assets:




   Property, equipment and software, net 8,425,327
8,311,363
1,204,895   Land use rights, net4,047,355
4,014,831
582,028   Deferred tax assets 2,831,423
2,894,530
419,619   Time deposits2,995,000
3,045,000
441,432   Restricted cash3,893
3,344
485   Other long-term assets22,496,585
24,469,340
3,547,309Total non-current assets40,799,583
42,738,408
6,195,768Total assets 221,415,060
231,397,045
33,545,528





Liabilities, Redeemable Noncontrolling Interests
    and Shareholders' Equity




Current liabilities:




   Accounts payable 643,164
780,921
113,210   Salary and welfare payables4,889,708
2,642,579
383,094   Taxes payable3,874,143
5,765,891
835,878   Short-term loans6,384,417
10,955,460
1,588,208   Contract liabilities20,514,540
21,811,530
3,162,008   Accrued liabilities and other payables16,062,984
15,480,778
2,244,242Total current liabilities52,368,956
57,437,159
8,326,640





Non-current liabilities:




   Deferred tax liabilities2,637,258
3,232,494
468,613   Other long-term liabilities1,304,837
1,377,929
199,758Total non-current liabilities3,942,095
4,610,423
668,371Total liabilities56,311,051
62,047,582
8,995,011





Redeemable noncontrolling interests 91,319
93,143
13,503





NetEase, Inc.'s shareholders' equity160,296,119
164,722,217
23,879,707Noncontrolling interests4,716,571
4,534,103
657,307Total equity165,012,690
169,256,320
24,537,014





Total liabilities, redeemable noncontrolling 
    interests and shareholders' equity    221,415,060
231,397,045
33,545,528





The accompanying notes are an integral part of this announcement.


 NETEASE, INC.







UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME



(in thousands, except per share data or per ADS data)







 Three Months Ended 

March 31,
December 31, 
March 31,
 March 31, 

2025
2025
2026
2026

 RMB 
 RMB 
 RMB 
 USD (Note 1) 








Net revenues
28,828,545
27,546,973
30,591,281
4,434,804Cost of revenues
(10,349,139)
(9,854,598)
(9,374,209)
(1,358,975)Gross profit
18,479,406
17,692,375
21,217,072
3,075,829








Operating expenses:







Selling and marketing expenses 
(2,695,597)
(3,888,256)
(3,441,485)
(498,911)General and administrative expenses
(956,337)
(1,050,701)
(636,597)
(92,287)Research and development expenses 
(4,386,313)
(4,434,260)
(4,482,157)
(649,776)Total operating expenses
(8,038,247)
(9,373,217)
(8,560,239)
(1,240,974)Operating profit
10,441,159
8,319,158
12,656,833
1,834,855








Other income/(expenses):







Investment income/(loss), net
692,751
(1,669,086)
5,472
793Interest income, net
1,060,886
1,002,404
890,267
129,062Exchange gains/(losses), net
1,803
(517,965)
(622,108)
(90,187)Other, net
255,315
485,863
438,978
63,638Income before tax
12,451,914
7,620,374
13,369,442
1,938,161Income tax
(1,905,143)
(1,250,430)
(2,523,838)
(365,880)Net income
10,546,771
6,369,944
10,845,604
1,572,281








Accretion of redeemable noncontrolling
    interests
(1,049)
(1,122)
(1,104)
(160)Net income attributable to noncontrolling
    interests and redeemable noncontrolling
    interests
(244,565)
(126,866)
(170,394)
(24,702)Net income attributable to the
    Company's shareholders
10,301,157
6,241,956
10,674,106
1,547,419








Net income per share *







Basic
3.25
1.96
3.34
0.48Diluted
3.21
1.93
3.31
0.48








Net income per ADS *







Basic
16.23
9.78
16.69
2.42Diluted
16.06
9.66
16.53
2.40








Weighted average number of ordinary
    shares used in calculating net income
    per share *







Basic
3,173,899
3,191,805
3,198,123
3,198,123Diluted
3,206,362
3,227,907
3,227,325
3,227,325








*  Each ADS represents five ordinary shares.







The accompanying notes are an integral part of this announcement.



 NETEASE, INC.







UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS





(in thousands)









 Three Months Ended 

 March 31, 
 December 31, 
 March 31, 
 March 31, 

2025
2025
2026
2026

 RMB  
 RMB  
 RMB  
 USD (Note 1) Cash flows from operating activities:







    Net income 
10,546,771
6,369,944
10,845,604
1,572,281    Adjustments to reconcile net income to net cash provided
        by operating activities:







    Depreciation and amortization
480,761
720,367
430,583
62,421    Fair value changes of equity security, other investments and
        financial instruments
(558,499)
1,308,861
1,117,717
162,035    Impairment losses on investments
89,071
857,796
344,871
49,996    Fair value changes of short-term investments
(201,609)
(283,560)
(385,395)
(55,871)    Share-based compensation cost
951,872
847,194
616,180
89,329    Allowance for expected credit losses
16,771
17,478
6,719
974    Losses/(gains) on disposal of property, equipment and software 
20,293
(20,063)
(565)
(82)    Unrealized exchange (gains)/losses
(28,453)
514,469
643,942
93,352    Losses/(gains) on disposal of long-term investments and subsidiaries
11,675
(273,438)
(1,071,442)
(155,326)    Deferred income taxes
328,272
204,920
532,257
77,161    Share of results on equity method investees
(18,668)
153,645
442,575
64,160    Changes in operating assets and liabilities: 







        Accounts receivable
(1,088,960)
594,561
(1,188,837)
(172,345)        Inventories
53,773
(51,881)
143,099
20,745        Prepayments and other assets
(295,178)
701,921
116,152
16,839        Accounts payable
(148,076)
(59,225)
134,445
19,490        Salary and welfare payables
(2,085,111)
1,859,384
(2,253,559)
(326,698)        Taxes payable
1,796,123
(436,268)
1,895,324
274,764        Contract liabilities
2,526,198
1,048,151
1,384,445
200,702        Accrued liabilities and other payables
(290,374)
749,075
(21,044)
(3,051)    Net cash provided by operating activities
12,106,652
14,823,331
13,733,071
1,990,876








Cash flows from investing activities:







    Purchase of property, equipment and software
(454,071)
(137,818)
(312,148)
(45,252)    Proceeds from sale of property, equipment and software
1,336
21,790
1,673
243    Purchase of intangible assets, content and licensed copyrights
(298,771)
(183,986)
(290,019)
(42,044)    Net changes of short-term investments with terms of three months or less
(6,138,556)
(400,836)
(15,766,308)
(2,285,635)    Purchase of short-term investments with terms over three months
(2,970,000)
(5,600,000)
(5,885,000)
(853,146)    Proceeds from maturities of short-term investments with terms over three months2,708,601
7,695,328
4,861,483
704,767    Investment/prepayment for investment in long-term investments and
        acquisition of subsidiaries
(90,966)
(1,617,947)
(3,204,395)
(464,540)    Proceeds from disposal of long-term investments and subsidiaries
77,428
624,662
1,353,947
196,281    Placement/rollover of matured time deposits
(49,601,807)
(39,787,587)
(30,608,133)
(4,437,247)    Proceeds from maturities of time deposits
43,926,482
39,781,381
42,018,869
6,091,457    Change in other long-term assets
(678)
(7,658)
65,909
9,555    Net cash (used in)/provided by investing activities
(12,841,002)
387,329
(7,764,122)
(1,125,561)








Cash flows from financing activities:







    Net changes from loans with terms of three months or less  
(2,254,415)
(56,405)
1,182,383
171,410    Proceeds of loans with terms over three months
2,747,550
92,700
6,134,520
889,319    Payment of loans with terms over three months
(2,935,677)
(975,000)
(2,620,900)
(379,951)    Net amounts received/(paid) related to capital contribution from or repurchase of
       noncontrolling interests shareholders
42,517
819
(23,418)
(3,395)    Net amounts paid related to repurchase of NetEase's ADSs/purchase of
        subsidiaries' shares      
(303,601)
(15,398)
(1,314,003)
(190,490)    Dividends paid to NetEase's shareholders
(5,584,532)
(2,575,287)
(5,156,320)
(747,509)    Net cash used in financing activities
(8,288,158)
(3,528,571)
(1,797,738)
(260,616)








    Effect of exchange rate changes on cash, cash equivalents and
        restricted cash held in foreign currencies
(56,932)
(175,895)
(340,829)
(49,410)Net (decrease)/increase in cash, cash equivalents and restricted cash               (9,079,440)
11,506,194
3,830,382
555,289Cash, cash equivalents and restricted cash, at the beginning of the period
54,474,923
39,984,947
51,491,141
7,464,648Cash, cash equivalents and restricted cash, at the end of the period
45,395,483
51,491,141
55,321,523
8,019,937








Supplemental disclosures of cash flow information:







    Cash paid for income taxes, net
1,206,555
1,068,868
1,464,650
212,330    Cash paid for interest expenses
97,424
18,313
78,326
11,355








The accompanying notes are an integral part of this announcement.







 NETEASE, INC.







UNAUDITED SEGMENT INFORMATION





(in thousands)


















 Three Months Ended 

 March 31, 
 December 31, 
 March 31, 
 March 31, 

2025
2025
2026
2026

RMB
RMB
RMB
USD (Note 1)Net revenues:







Games and related value-added services 
24,048,007
21,966,634
25,712,975
3,727,598Youdao
1,298,262
1,564,692
1,348,022
195,422NetEase Cloud Music
1,858,388
1,968,270
1,981,234
287,219Innovative businesses and others
1,623,888
2,047,377
1,549,050
224,565Total net revenues
28,828,545
27,546,973
30,591,281
4,434,804








Cost of revenues:







Games and related value-added services
(7,495,262)
(6,472,229)
(6,482,431)
(939,755)Youdao
(684,035)
(859,314)
(745,729)
(108,108)NetEase Cloud Music
(1,175,777)
(1,285,937)
(1,247,066)
(180,787)Innovative businesses and others
(994,065)
(1,237,118)
(898,983)
(130,325)Total cost of revenues
(10,349,139)
(9,854,598)
(9,374,209)
(1,358,975)








Gross profit:







Games and related value-added services
16,552,745
15,494,405
19,230,544
2,787,843Youdao
614,227
705,378
602,293
87,314NetEase Cloud Music
682,611
682,333
734,168
106,432Innovative businesses and others
629,823
810,259
650,067
94,240Total gross profit
18,479,406
17,692,375
21,217,072
3,075,829








The accompanying notes are an integral part of this announcement.



 NETEASE, INC.NOTES TO UNAUDITED FINANCIAL INFORMATIONNote 1: The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00 = RMB 6.8980 on the last trading day of March 2026 (March 31, 2026) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on March 31, 2026, or at any other certain date.Note 2: Share-based compensation cost reported in the Company's unaudited condensed consolidated statements of comprehensive income is set out as follows in RMB and USD (in thousands):
 Three Months Ended 
March 31,

December 31,
March 31,
March 31,
2025

2025
2026
2026
RMB

RMB
RMB
USD (Note 1)Share-based compensation cost included in:







Cost of revenues233,711

212,072
269,336
39,046Operating expenses718,161

635,122
346,844
50,283








The accompanying notes are an integral part of this announcement.



Note 3: The financial information prepared and presented in this announcement might be different from those published and to be published by NetEase's listed subsidiary to meet the disclosure requirements under different accounting standards requirements.Note 4: The unaudited reconciliation of GAAP and non-GAAP results is set out as follows in RMB and USD (in thousands, except per share data or per ADS data):


Three Months Ended


 March 31, 
 December 31, 
 March 31, 
 March 31, 
2025
2025
2026
2026
RMB
RMB
RMB
USD (Note 1)Net income attributable to the Company's shareholders10,301,157
6,241,956
10,674,106
1,547,419Add: Share-based compensation935,570
831,031
600,718
87,086Non-GAAP net income attributable to the Company's shareholders11,236,727
7,072,987
11,274,824
1,634,505







Non-GAAP net income per share *






Basic3.54
2.22
3.53
0.51Diluted3.50
2.19
3.49
0.51







Non-GAAP net income per ADS *






Basic17.70
11.08
17.63
2.56Diluted17.51
10.95
17.46
2.53







*  Each ADS represents five ordinary shares.






The accompanying notes are an integral part of this announcement.






  View original content:https://www.prnewswire.com/news-releases/netease-announces-first-quarter-2026-unaudited-financial-results-302778728.htmlSOURCE NetEase, Inc. Original: NetEase Announces First Quarter 2026 Unaudited Financial Results

NetEase to Report First Quarter 2026 Financial Results on May 21May 7, 2026 4:30 AM
PR Newswire (US) HONG KONG, May 7, 2026 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), a leading internet and game services provider, today announced that it will report financial results for the 2026 first quarter on Thursday, May 21, 2026, before the open of the U.S. markets.The earnings teleconference call with simultaneous webcast will take place at 8:00 a.m. Eastern Time on Thursday, May 21, 2026 (Beijing/Hong Kong Time: 8:00 p.m., Thursday, May 21, 2026). NetEase's management will be on the call to discuss the quarterly results and answer questions.Interested parties may participate in the conference call by dialing 1-914-202-3258 and providing conference ID: 10054538, 15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-855-883-1031 and entering PIN: 10054538. The replay will be available through May 28, 2026.This call will be webcast live and the replay will be available for 12 months. Both will be available on NetEase's Investor Relations website at http://ir.netease.com/.About NetEase, Inc.NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase") is a leading internet and game services provider centered around premium content. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of the most popular and longest-running mobile and PC games available in China and globally.Powered by one of the largest in-house game R&D teams focused on mobile, PC and console, NetEase creates superior gaming experiences, inspires players, and passionately delivers value for its thriving community worldwide. By infusing play with culture, and education with technology, NetEase transforms gaming into a meaningful vehicle to build a more entertaining and enlightened world.Beyond games, NetEase service offerings include its majority-controlled subsidiaries Youdao (NYSE: DAO), an intelligent learning and advertising solutions provider, and NetEase Cloud Music (HKEX: 9899), a well-known online music platform featuring a vibrant content community, as well as Yanxuan, NetEase's private-label consumer lifestyle brand.For more information, please visit: http://ir.netease.com/.Contact for Media and Investors:Investor Relations
Email: ir @STUDZ75-3378 View original content:https://www.prnewswire.com/news-releases/netease-to-report-first-quarter-2026-financial-results-on-may-21-302765277.htmlSOURCE NetEase, Inc. Original: NetEase to Report First Quarter 2026 Financial Results on May 21

NetEase, Inc. Announces Filing of Annual Report on Form 20-F for Fiscal Year 2025April 15, 2026 7:02 AM
PR Newswire (US)

HONG KONG, April 15, 2026 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or "the Company"), a leading internet and game services provider, today announced that it filed its annual report on Form 20-F for the fiscal year ended December 31, 2025. The annual report can be accessed on the Company's investor relations website at http://ir.netease.com/. The Company will provide a hard copy of its annual report containing the audited consolidated financial statements, free of charge, to its shareholders and ADS holders upon request. Requests should be directed to the IR Department, NetEase, Inc., Room 802, 8/F, China Life Centre, Tower A, One HarbourGate, No. 18 Hung Luen Road, Kowloon, Hong Kong, People's Republic of China at the contact information listed below.About NetEase, Inc.NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase") is a leading internet and game services provider centered around premium content. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of the most popular and longest-running mobile and PC games available in China and globally.Powered by one of the largest in-house game R&D teams focused on mobile, PC and console, NetEase creates superior gaming experiences, inspires players, and passionately delivers value for its thriving community worldwide. By infusing play with culture, and education with technology, NetEase transforms gaming into a meaningful vehicle to build a more entertaining and enlightened world.Beyond games, NetEase service offerings include its majority-controlled subsidiaries Youdao (NYSE: DAO), an intelligent learning and advertising solutions provider, and NetEase Cloud Music (HKEX: 9899), a well-known online music platform featuring a vibrant content community, as well as Yanxuan, NetEase's private-label consumer lifestyle brand.For more information, please visit: http://ir.netease.com/. Contact for Media and Investors:Investor Relations
Email: ir @STUDZ75-3378 



View original content:https://www.prnewswire.com/news-releases/netease-inc-announces-filing-of-annual-report-on-form-20-f-for-fiscal-year-2025-302743081.htmlSOURCE NetEase, Inc.

Original: NetEase, Inc. Announces Filing of Annual Report on Form 20-F for Fiscal Year 2025

NetEase Cloud Music Inc. Reports Fiscal Year 2025 Financial ResultsFebruary 11, 2026 4:55 AM
PR Newswire (US)

HANGZHOU, China, Feb. 11, 2026 /PRNewswire/ -- NetEase Cloud Music Inc. (HKEX: 9899 or the "Company"), a leading interactive music streaming service provider in China, today announced its financial results for the fiscal year 2025 ended December 31, 2025.Summary of Key Financial Metrics 
(RMB in thousands, unless otherwise stated)







Year ended 31 December

2025
2024

(Unaudited)
(Unaudited)Revenue
7,759,450
7,950,146Gross profit
2,769,592
2,681,512Operating profit
1,621,952
1,170,847Profit before income tax
2,067,738
1,570,255Profit for the year (1)
2,745,828
1,565,369Non-IFRS Measure (2):



Adjusted operating profit
1,733,749
1,309,418Adjusted net profit
2,860,007
1,700,078




Note:(1)  During the year ended 31 December 2025, the Group recognised a deferred income tax credit of RMB746.7 million which primarily arose from the recognition of deferred tax assets in respect of cumulative tax losses incurred by a wholly-owned subsidiary. These tax losses are available to be carried forward against future taxable income. Deferred tax assets relating to tax losses and temporary differences are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences or tax losses can be utilised.(2)  Adjusted operating profit and adjusted net profit are non-IFRS measures and are defined as operating profit and profit for the year attributable to the equity holders of the Company adjusted by adding back equity-settled share-based payments as appropriate. For details of the reconciliation of the profit for the year attributable to the equity holders of the Company to the adjusted net profit of our Group, see the section headed "Financial Review" below.Fiscal Year 2025 Key Financial HighlightsRevenue was RMB7.8 billion, a slight decrease of 2.4% compared with RMB8.0 billion in 2024.Online music services:Revenue from online music services was RMB6.0 billion, an increase of 12.0% compared with RMB5.4 billion in 2024.Revenue from sales of membership subscriptions increased to RMB5.1 billion from RMB4.5 billion in 2024, driven by continuous growth in monthly paying users of online music services with enhanced user experience, expanded membership benefits and enriched music community content.Social entertainment services and others:Revenue from social entertainment services and others was RMB1.8 billion, compared with RMB2.6 billion in 2024. The decrease was primarily attributed to a more prudent operational strategy in the social entertainment services. At the same time, we continued to focus on our core music business, with the intention of supporting long-term growth.Gross profit was RMB2,769.6 million, a slight increase of 3.3% compared with RMB2,681.5 million in 2024. This was primarily due to increased revenue from our online music services and continued improvement in operating efficiency, despite a decrease in revenue from our social entertainment services.Gross margin improved to 35.7% from 33.7% in 2024.Operating profit was RMB1,622.0 million, an increase of 38.5% compared with RMB1,170.8 million in 2024, which was primarily due to the decrease in promotion and advertising expenses and the increase in government grants.Adjusted operating profit was RMB1,733.7 million, an increase of 32.4% compared with RMB1,309.4 million for the same period of 2024.Net profit reached RMB2,745.8 million, compared with net profit of RMB1,565.4 million in 2024.Adjusted net profit reached RMB2,860.0 million, compared with adjusted net profit of RMB1,700.1 million in 2024.Business Overview Throughout 2025, we remained focused on driving high-quality development across our core music ecosystem. By continuously improving premium music experiences, we enhanced our appeal to a broad base of music lovers and deepened users' recognition and affinity for our platform. We also enhanced our differentiated content offerings and made further progress in developing original music. Guided by user needs, we continued to enrich the content ecosystem, refine personalized recommendations, innovate product features, and strengthen the community. These initiatives further boosted our appeal to users and engagement. Paired with upgraded membership benefits, they also supported growth in subscription-based memberships, reflecting our platform's sustainable development and long-term value.We continued to expand and deepen our music-oriented community ecosystem. In 2025, we achieved steady year-over-year growth in both active user base and overall engagement by improving user experience and enhancing brand awareness. Meanwhile, our DAU/MAU ratio (daily active user/monthly active user ratio) improved year over year, remaining above 30%, and average daily mobile music listening time continued to increase. Notably, our efforts to deliver premium content and experiences, along with the platform's trendsetting aesthetics and design, strongly resonated with young music enthusiasts, who are gradually becoming loyal users of our platform.We have built a diverse and distinctive content library by expanding our copyrighted music collection while actively promoting original Chinese music. In 2025, we introduced content from Korean labels, supplemented our Chinese music catalogue, added OST and variety show music, and further strengthened our signature genres, including hip-hop and Western music. We also deepened collaboration with labels in content promotion and artist-centric campaigns. Our unique independent artist ecosystem continued to grow, and our in-house works such as "Liang Nan («??»)" and "What Ifs («???»)" gained broad recognition both on and off the platform.From a product perspective, we continued to prioritize user needs and remained committed to innovation and excellence in music discovery and listening experience. In 2025, we further upgraded our core product framework to enhance its visual appeal and better support users' diverse music discovery preferences. We advanced personalized content distribution and introduced Climber, our self-developed AI-powered generative recommendation model. Our innovative features, such as Automix, "Magic Light Player" (?????) and landscape mode, deliver a more immersive audio-visual journey. We also expanded and enhanced community scenarios to encourage more active user participation and interactions.Our music-centric monetisation capabilities continued to deliver healthy growth. In 2025, subscription-based membership revenue increased by 13.3% year on year, driven by growth in the subscriber base, though slightly offset by a dilution in monthly ARPPU (average revenue per paying user) due to changes in subscriber mix. Importantly, our fast-growing subscriber base also demonstrated stronger stickiness, with higher retention and activity levels. By continuously enhancing membership benefits across content, features and customization, we strengthened users' willingness to pay for premium experiences.Alongside our growth in monetisation, we also further improved our profitability in 2025. Our gross margins reached 35.7%, representing a notable increase from 33.7% in 2024. In 2025, our operating profit increased by 38.5% year on year, which mainly benefited from the growth in our business scale, stronger online music monetisation, disciplined cost management and operating leverage.Looking ahead, we remain committed to enhancing the music experience and deepening user engagement across our platform by expanding our high-quality content offering, advancing product and feature innovation, and further strengthening our community. Our strategic priorities include the following measures:further diversifying and enhancing our differentiated content offerings with greater efficiency. We plan to deepen our collaboration with copyright holders and strengthen our capabilities in independent artist incubation and in-house music production, focusing on our signature music genres;fulfilling user needs by optimising the music listening experience and recommendation features to deliver the ultimate music experience;nurturing our music-oriented community ecosystem and exploring innovative inter-person interaction through enhancing our comprehensive product offerings, including broadening communicative scenarios and ecology;cultivating our users' willingness to pay and subscribe to premium offerings by improving user experience, deepening user engagement, enhancing membership privileges and broadening consumption scenarios; andimproving profitability through continued cost optimisation, operating efficiency enhancement and disciplined cost control.Diverse and differentiated content ecosystemWe are committed to expanding our distinctive content library by further diversifying our content mix across both licensed tracks and original music. We actively promote original Chinese music through continued support for independent artists and developing in-house music. At the same time, we continue to advance music genres that strongly resonate with our users, including hip-hop and Western music.Enhancing partnerships with copyright holdersThroughout the Reporting Period, we maintained a disciplined and collaborative approach, further growing our partnerships and deepening our collaborations with copyright holders in ways that support both parties' long-term interests.Expansive catalogue of music labels. In 2025, we further supplemented our copyright music library by introducing new content from K-Pop labels, including RBW, StarShip and Shofar Music. We also added popular tracks from popular Chinese artists such as Li Jian (??), Lay Zhang (???), Chen Chusheng (???), Jackson Yee (????), Xin Liu (???) and Miriam Yeung (???). In addition, we actively enriched our OST library by introducing content from TVB and added popular OSTs such as «???»and«????».Amplifying offerings in signature music genres. We further enriched our music library with high-quality selections across our signature genres, such as hip-hop, Japanese ACG and Western music. This included the latest releases from popular rappers and rock bands such as KeyNG (???), MaSiWei (???), MC HotDog (??), New Pants (???) and Reflector (???). We also partnered with Kadokawa and U/M/A/A, and collaborated closely with Deco*27 to bring more high-quality J-Pop and ACG music to our platform.In-depth collaborations with copyright partners. We strengthened cooperation with music labels to facilitate the promotion of high-quality releases. We played an instrumental role in the launches of Mariah Carey and Taylor Swift's new albums in China, both of which saw outstanding streaming performance on the NetEase Cloud Music platform. Through our enhanced partnerships, the new digital albums from Hua Chenyu (???), David Tao (??), Allen Ren (???) and Eason Chan (???) all delivered impressive sales results on our platform. We also executed a tailored campaign for JENNIE's digital album, featuring exclusive virtual and physical music cards, driving the sales performance.Online and offline artist-centric activities. We worked closely with labels and artists to deliver artist-centric campaigns across online and offline channels, effectively engaging young audiences and fan communities. These initiatives included online retrospective campaign paired with a large-scale offline activation for Hua Chenyu's 12th debut anniversary, flash mob events in four cities for BLACKPINK's 9th debut anniversary, as well as a series of online programs to celebrate i-dle and Mayday's anniversaries, the new partnerships with Jackson Yee and Lay Zhang, among other initiatives.Strengthening our leading independent artists' ecosystemBeyond licensed content, we continued to strengthen our unique independent artist ecosystem by providing end-to-end support across content creation, promotion and monetisation. By the end of 2025, more than 1,000,000 independent artists had contributed more than 5.6 million tracks to our platform.Expanding exposure for musicians and their work. We launched the "Original Sound Promoters" (?????) campus ambassador program, establishing a "discovery- appreciation-dissemination" mechanism to promote original content and build a music discovery and promotion network from the university student perspective. By collaborating with multiple brands and channels, we helped musicians reach a broader audience through a mix of online and offline initiatives. These included online music campaigns with "Where Winds Meet" (?????) and BYD, offline brand activities with Honor Music and Chanel's limited-edition perfume space, and pitching original songs for inclusion in shows such as "Singer 2025" and "The Rap of China 2025."Enhancing commercial resources for musicians. We connected musicians with brands and game partners to grow their commercial reach. We provided brands such as Audi, Chanel, Honor, China Mobile, TCL, Taobao and JD.com with access to musicians' performance and songwriting capabilities. We also collaborated with our musicians to supply customized songs or original tracks for games, including "Fantasy Westward Journey," "Where Winds Meet," "Identity V" and "Eggy Party," partnering with 13 popular games.Developing and promoting differentiated in-house musicOur in-house studios focus on producing original, high-quality music to enrich our content offerings. In 2025, our in-house studios have successfully produced and popularised multiple hit songs across our community and external platforms. We continued to build on our signature genres and received favourable reception for multiple in-house hip-hop releases, including "Liang Nan"(«??»), "Mo Chou Xiang" («???»),«??»,«??»and«??». Meanwhile, we remain dedicated to cultivating high-quality, well-crafted music content. Older in-house tracks, such as "Shi Hao" («??»), "You" («?») and "What Ifs" («???»), have gradually reached a broader audience and gained wider recognition. We also worked extensively with emerging artists to co- create popular songs, including«???»and«????». Additionally, our original project – the collaboration between MIYEON and Jike Juyi (????), titled "Glow Up" – has garnered widespread attention and sparked discussion internationally.Diversified audio-based content offeringsIn addition to music, we expanded our audio offerings to better serve users' diverse interests and listening needs. In 2025, our growing audio content library drove higher user consumption, resulting in a steady increase in average listening time per user.PGC – audiobooks & radio dramas. We continued to enrich our audiobook offerings with disciplined cost management. In 2025, we gained favourable reception with our in-house- produced audiobooks, such as«???»and«???». We also introduced more content for young audience and more ACG titles to meet user demand, including«???»,«?????»and«???». Furthermore, we co-developed the original radio drama«Eggy Party», which tapped into gamers' nostalgia while broaden the audience for audio content.PUGC/UGC – podcast. Our podcast offerings focus on music-themed audio content and cultural podcast IPs. Our co-produced series, "Dear Music – The Season of New Voices," explored the stories behind classic hit songs, and our music-inspired podcast "Music Neighbour Program" (??????) featured 105 musicians and influencers, including author Da Bing (??), physicist Li Miao (??), musicians Tayu Lo (???), Terry Lin (???), Sophia Huang (???) and Fan Fan (???), as well as the renowned label Modern Sky. We recently launched the "Podcast Bookstore Plan«??????»," which hosts expert-led podcast episodes organized around curated thematic book lists to build our cultural podcast IP, featuring guests such as Liang Yong'an (???), Feng Tang (??), Su Tong (??) and Xu Zhiyuan (???).Enhancing the podcast host ecosystem. In 2025, we introduced eight prominent podcast hosts, including Fan Deng (??), founder of the Fan Deng Reading APP (?? APP), Li Lei (??), a former CCTV host, and Guo Degang (???), a crosstalk performer. Among them, Guo Degang's supernatural-themed podcast series«?????»became a breakout hit on our platform, generating nearly 10 million listens.Product innovation and community ecosystemDuring the Reporting Period, we further enhanced users' premium music experience by driving product innovation and revitalizing our community ecosystem. In 2025, the NetEase Cloud Music App underwent continuous main updates, improving its visual appeal and better supporting users' diverse music consumption preferences. Our efforts have yielded improved user engagement, reflected in higher activity ratio and increased in-app music listening time. Our unique and evolving community continues to foster deeper music-driven resonance, inspiring greater user participation in both creating and engaging with community content.Optimising users' music discovery and listening experienceWe keenly focused on advancing personalised recommendations and innovative features which deliver a more intuitive and immersive music experience. In 2025, we made meaningful progress in both music discovery and listening experience for users, strengthening their engagement and enhancing the platform's overall value.Optimizing music content discovery and distribution. We are dedicated to providing users with a personalised music discovery journey. In 2025, we continued to enhance our product and recommendation capabilities, including: 1) rolling out continuous core product upgrades to better meet users' diverse music discovery preferences, such as the new "Heartbeat Mode" (????) homepage layout and the new "Search" tab featuring categorized browsing; 2) continuously refining the recommendation page to boost user engagement and listening time; 3) launching the "Heart Collection Playlist Classification" (??????) feature that allows users to filter songs by genre, artist, language, and more, supported by AI to uncover niche categories; 4) optimizing the "New Songs and New Albums" channel by streamlining new content delivery and improving the display of professional information. Additionally, we introduced Climber, our self-developed AI-powered generative recommendation model, which utilizes self-attention mechanisms to accurately capture user preferences.Enhancing the music consumption experience. We improved the music experience and addressed a wider range of audio-visual needs through innovative features. We launched the "Magic Light Player" (?????) to recreate live-concert-like experiences, and the "Lustrous Light Wave" (????) Player, which syncs music spectra with dynamic visual effects for a more immersive experience. Our newly added Automix feature enables intelligent, seamless playback with smooth transitions between songs. We also introduced a horizontal mode for the Vinyl Player, which significantly increased users' screen-on time. In addition, we launched a range of AI-powered features, including "AI Singing Assistant 2.0" for one-click MV creation, "AI Magic Player" for personalized player backgrounds, and "AI Song-writing" to instantly turn ideas into songs, further enriching the music experience with added creativity and convenience.Expanding music consumption scenariosIn 2025, we advanced our multi-terminal ecosystem to better address users' daily needs across a wide range of touchpoints. We extended in-car coverage to additional brands and models through new partnerships with Jetour, LYNK & CO, and more. Meanwhile, we continued to enhance multi- device functionality to enhance user engagement. For in-vehicle use, we added features such as "Heartbeat Mode" (????), "In-Car Radio" (??????), "Magic Light Mode," "Sing at Will" (???) and AudioVivid. For TV terminals, we introduced the new "Heartbeat" homepage interface and improved large-screen viewing aesthetics with innovative features such as "Record Wall," "Full Screen Cover" and "Sing at Will."Conference CallThe Company's management will host an earnings conference call at 7:00 p.m. Beijing/Hong Kong Time on Wednesday, February 11, 2026 (6:00 a.m. U.S. Eastern Time on the same day). Details for the conference call are as follows:Event Title: NetEase Cloud Music Inc. Fiscal Year 2025 Earnings Conference Call
Registration Link: https://s1.c-conf.com/diamondpass/10052762-ref312.htmlAll participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of dial-in numbers, an event passcode, and a personal access PIN, which will be used to join the conference call.A replay of the call will be accessible by phone at the following numbers and entering PIN: 10052762. The replay will be available through February 18, 2026.Chinese Mainland:400-120-9216Hong Kong:800-930-639United States:1-855-883-1031Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.music.163.com for 12 months following the call.About NetEase Cloud Music Inc.Launched in 2013 by NetEase, Inc. (NASDAQ: NTES; HKEX: 9999), NetEase Cloud Music Inc. (HKEX: 9899) is a well-known online music platform featuring a vibrant content community. Dedicated to providing an elevated user experience, NetEase Cloud Music Inc. provides precise, personalised recommendations, promotes user interaction and creates a strong social community. Its focus on discovering and promoting emerging musicians has made NetEase Cloud Music Inc. a destination of choice for exploring new and independent music among music enthusiasts in China. The platform has been recognised as the most popular entertainment app among China's vibrant Generation Z community.Please see http://ir.music.163.com/ for more information.Forward Looking StatementsThis press release contains forward-looking statements relating to the business outlook, estimates of financial performance, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realised in the future. Underlying these forward-looking statements are a lot of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements.Non-IFRS MeasureTo supplement our consolidated results, which are prepared and presented in accordance with International Financial Reporting Standards ("IFRS"), our Company uses adjusted operating profit and adjusted net profit as additional financial measures, which are not required by, or presented in accordance with IFRS. We believe that these measures facilitate comparisons of operating performance from period to period and company to company by eliminating the potential impact of items that our management does not consider to be indicative of our Group's operating performance, such as certain non-cash items. The use of these non-IFRS measures has limitations as an analytical tool, and shareholders and potential investors of our Company should not consider them in isolation from, as a substitute for, as an analysis of, or superior to, our Group's results of operations or financial condition as reported under IFRS. In addition, these non-IFRS financial measures may be defined differently from similar terms used by other companies, and may not be comparable to other similarly titled measures used by other companies. Our presentation of these non-IFRS measures should not be construed as an implication that our future results will be unaffected by unusual or non-recurring items.Investor Enquiries:Angela Xu
NetEase Cloud Music Inc.
music.ir@service.netease.com



View original content:https://www.prnewswire.com/news-releases/netease-cloud-music-inc-reports-fiscal-year-2025-financial-results-302684933.htmlSOURCE NetEase Cloud Music

Original: NetEase Cloud Music Inc. Reports Fiscal Year 2025 Financial Results

NetEase Announces Fourth Quarter and Fiscal Year 2025 Unaudited Financial ResultsFebruary 11, 2026 3:30 AM
PR Newswire (US)

HANGZHOU, China, Feb. 11, 2026 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), a leading internet and game services provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025.Fourth Quarter 2025 Financial HighlightsNet revenues were RMB27.5 billion (US$3.9 billion), an increase of 3.0% compared with the same quarter of 2024.Games and related value-added services net revenues were RMB22.0 billion (US$3.1 billion), an increase of 3.4% compared with the same quarter of 2024.Youdao net revenues were RMB1.6 billion (US$223.7 million), an increase of 16.8% compared with the same quarter of 2024.NetEase Cloud Music net revenues were RMB2.0 billion (US$281.5 million), an increase of 4.7% compared with the same quarter of 2024.Innovative businesses and others net revenues were RMB2.0 billion (US$292.8 million), a decrease of 10.4% compared with the same quarter of 2024.Gross profit was RMB17.7 billion (US$2.5 billion), an increase of 8.7% compared with the same quarter of 2024.Total operating expenses were RMB9.4 billion (US$1.3 billion), an increase of 10.9% compared with the same quarter of 2024.Net income attributable to the Company's shareholders was RMB6.2 billion (US$892.6 million). Non-GAAP net income attributable to the Company's shareholders was RMB7.1 billion (US$1.0 billion).[1]Basic net income per share was US$0.28 (US$1.40 per ADS). Non-GAAP basic net income per share was US$0.32 (US$1.58 per ADS).[1][1] As used in this announcement, non-GAAP net income attributable to the Company's shareholders and non-GAAP basic and diluted net income per share and per ADS are defined to exclude share-based compensation expenses. See the unaudited reconciliation of GAAP and non-GAAP results at the end of this announcement.Fourth Quarter 2025 and Recent Operational HighlightsAfter years of concentrated, purposeful effort, achieved comprehensive integration of AI across the full game development and gameplay innovation cycle – from art and design to programming, animation and quality assurance – strengthening high volume, scalable production and enabling the smooth rollout of dynamic, AI-native gameplay features in multiple flagship titles.Sustained strong engagement across the Company's established franchises, demonstrating the durability of its long-term operating capabilities. Key titles, including the Fantasy Westward Journey franchise, Identity V, Eggy Party, Sword of Justice and Where Winds Meet, continued to introduce high-quality content and maintain healthy player communities.Further strengthened the game portfolio globally. Sword of Justice received a strong reception following its global launch, and Where Winds Meet gained traction on multiple platforms, surpassing 80 million cumulative players and delivering high engagement worldwide. Marvel Rivals also further expanded its global influence through player engagement and industry recognition.Blizzard titles delivered sustained engagement in China through enriched content and localized experiences, achieving record-high annual revenue and reaffirming NetEase's long-term commitment to the market."We concluded 2025 with another healthy quarter, reflecting the durability of our long-term game operations and the growing impact of our global titles," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "AI has become a foundational competency for our development and operations. We have been systematically applying AI throughout game development and gameplay, where it is already driving meaningful improvement in production efficiency and unlocking new interactive experiences for our players that were previously out of reach."Looking ahead, we remain focused on delivering exceptional experiences across the NetEase family of businesses. By fostering a creative talent ecosystem, deepening collaboration with partners worldwide and thoughtfully advancing our AI-application capabilities, we aim to further extend the longevity of our franchises while continuing to deliver innovative experiences to create even greater value for our global players and shareholders alike," Mr. Ding concluded.Fourth Quarter 2025 Financial ResultsNet RevenuesNet revenues for the fourth quarter of 2025 were RMB27.5 billion (US$3.9 billion), compared with RMB28.4 billion and RMB26.7 billion for the preceding quarter and the same quarter of 2024, respectively.Net revenues from games and related value-added services were RMB22.0 billion (US$3.1 billion) for the fourth quarter of 2025, compared with RMB23.3 billion and RMB21.2 billion for the preceding quarter and the same quarter of 2024, respectively. Net revenues from the operation of online games accounted for approximately 96.8% of the segment's net revenues for the fourth quarter of 2025, compared with 97.6% and 96.7% for the preceding quarter and the same quarter of 2024, respectively. The quarter-over-quarter decrease in online games net revenues reflected the fact that the prior quarter benefited from a high level of diversified events for the summer period. The year-over-year increase was attributable to higher net revenues from self-developed games, such as Fantasy Westward Journey Online and newly launched games Where Winds Meet and Marvel Rivals.Net revenues from Youdao were RMB1.6 billion (US$223.7 million) for the fourth quarter of 2025, compared with RMB1.6 billion and RMB1.3 billion for the preceding quarter and the same quarter of 2024, respectively. The year-over-year increase was due to increased net revenues from its online marketing services and learning services.Net revenues from NetEase Cloud Music were RMB2.0 billion (US$281.5 million) for the fourth quarter of 2025, compared with RMB2.0 billion and RMB1.9 billion for the preceding quarter and the same quarter of 2024, respectively.Net revenues from innovative businesses and others were RMB2.0 billion (US$292.8 million) for the fourth quarter of 2025, compared with RMB1.4 billion and RMB2.3 billion for the preceding quarter and the same quarter of 2024, respectively. Results from this segment were mainly driven by net revenues from Yanxuan, advertising services and other value-added services, as well as certain inter-segment transaction eliminations. The quarter-over-quarter increase was led by increased net revenues from Yanxuan, advertising services and several other businesses included within the segment. The year-over-year decrease reflected an increase in certain inter-segment transaction eliminations.Cost of RevenuesCost of revenues for the fourth quarter of 2025 was RMB9.9 billion (US$1.4 billion), compared with RMB10.2 billion and RMB10.5 billion for the preceding quarter and the same quarter of 2024, respectively. The quarter-over-quarter decrease was primarily driven by decreased revenue-sharing costs. The year-over-year decrease was mainly due to lower royalties for licensed games and lower revenue-sharing costs.Gross ProfitGross profit for the fourth quarter of 2025 was RMB17.7 billion (US$2.5 billion), compared with RMB18.2 billion and RMB16.3 billion for the preceding quarter and the same quarter of 2024, respectively.Operating ExpensesTotal operating expenses for the fourth quarter of 2025 were RMB9.4 billion (US$1.3 billion), compared with RMB10.2 billion and RMB8.5 billion for the preceding quarter and the same quarter of 2024, respectively. The variances in both the quarter-over-quarter and year-over-year results were primarily attributable to changes in marketing expenses related to online games.Other Income/(Expenses)Other income/(expenses) consisted of investment income/(loss), interest income, net exchange gains/(losses) and others. The quarter-over-quarter and year-over-year decreases were primarily attributable to fair value changes of equity security investments and greater exchange losses in the fourth quarter of 2025.Income TaxThe Company recorded a net income tax charge of RMB1.3 billion (US$178.8 million) for the fourth quarter of 2025, compared with RMB1.3 billion and RMB1.4 billion for the preceding quarter and the same quarter of 2024, respectively. The effective tax rate for the fourth quarter of 2025 was 16.4%, compared with 13.0% and 13.4% for the preceding quarter and the same quarter of 2024, respectively. The effective tax rate represents certain estimates by the Company as to the tax obligations and benefits applicable to it in each quarter.Net Income and Non-GAAP Net IncomeNet income attributable to the Company's shareholders totaled RMB6.2 billion (US$892.6 million) for the fourth quarter of 2025, compared with RMB8.6 billion and RMB8.8 billion for the preceding quarter and the same quarter of 2024, respectively.Basic net income was US$0.28 per share (US$1.40 per ADS) for the fourth quarter of 2025, compared with US$0.39 per share (US$1.93 per ADS) and US$0.39 per share (US$1.97 per ADS) for the preceding quarter and the same quarter of 2024, respectively.Non-GAAP net income attributable to the Company's shareholders totaled RMB7.1 billion (US$1.0 billion) for the fourth quarter of 2025, compared with RMB9.5 billion and RMB9.7 billion for the preceding quarter and the same quarter of 2024, respectively.Non-GAAP basic net income was US$0.32 per share (US$1.58 per ADS) for the fourth quarter of 2025, compared with US$0.43 per share (US$2.13 per ADS) and US$0.44 per share (US$2.18 per ADS) for the preceding quarter and the same quarter of 2024, respectively.Fiscal Year 2025 Financial ResultsNet RevenuesNet revenues for fiscal year 2025 were RMB112.6 billion (US$16.1 billion), compared with RMB105.3 billion for fiscal year 2024.Net revenues from games and related value-added services were RMB92.1 billion (US$13.2 billion) for fiscal year 2025, compared with RMB83.6 billion for fiscal year 2024. Net revenues from the operation of online games accounted for approximately 97.3% of the segment's total net revenues for fiscal year 2025, compared with 96.2% for fiscal year 2024. The year-over-year increase in online games net revenues was attributable to higher net revenues from Fantasy Westward Journey Online, Identity V and newly launched games Where Winds Meet and Marvel Rivals.Net revenues from Youdao were RMB5.9 billion (US$845.0 million) for fiscal year 2025, compared with RMB5.6 billion for fiscal year 2024.Net revenues from NetEase Cloud Music were RMB7.8 billion (US$1.1 billion) for fiscal year 2025, compared with RMB8.0 billion for fiscal year 2024.Net revenues from innovative businesses and others were RMB6.8 billion (US$973.6 million) for fiscal year 2025, compared with RMB8.1 billion for fiscal year 2024.Cost of RevenuesCost of revenues for fiscal year 2025 was RMB40.2 billion (US$5.8 billion), compared with RMB39.5 billion for fiscal year 2024. The year-over-year increase was primarily due to higher royalties for licensed games, which were partially offset by lower revenue-sharing costs.Gross ProfitGross profit for fiscal year 2025 was RMB72.4 billion (US$10.4 billion), compared with RMB65.8 billion for fiscal year 2024.Operating ExpensesTotal operating expenses for fiscal year 2025 were RMB36.6 billion (US$5.2 billion), compared with RMB36.2 billion for fiscal year 2024. The year-over-year increase was primarily due to higher marketing expenses and research and development investments for games and related value-added services.Other Income/(Expenses) The year-over-year decrease was mainly due to net exchange losses recorded in fiscal year 2025 compared with net exchange gains recorded in fiscal year 2024, as well as lower interest income recognized in fiscal year 2025.Income TaxesThe Company recorded a net income tax charge of RMB6.0 billion (US$862.7 million) for fiscal year 2025, compared with RMB5.5 billion for fiscal year 2024. The effective tax rate was 14.8% for fiscal year 2025, compared with 15.3% for fiscal year 2024.Net Income and Non-GAAP Net Income Net income attributable to the Company's shareholders for fiscal year 2025 totaled RMB33.8 billion (US$4.8 billion), compared with RMB29.7 billion for fiscal year 2024.Basic net income was US$1.52 per share (US$7.58 per ADS) for fiscal year 2025, compared with US$1.33 per share (US$6.63 per ADS) for fiscal year 2024.Non-GAAP net income attributable to the Company's shareholders for fiscal year 2025 totaled RMB37.3 billion (US$5.3 billion), compared with RMB33.5 billion for fiscal year 2024.Non-GAAP basic net income was US$1.68 per share (US$8.38 per ADS) for fiscal year 2025, compared with US$1.50 per share (US$7.49 per ADS) for fiscal year 2024.Other Financial InformationAs of December 31, 2025, the Company's net cash (total cash and cash equivalents, current and non-current time deposits and restricted cash, as well as short-term investments balance, minus short-term and long-term loans) totaled RMB163.5 billion (US$23.4 billion), compared with RMB131.5 billion as of December 31, 2024. Net cash provided by operating activities was RMB50.7 billion (US$7.3 billion) for fiscal year 2025, compared with RMB39.7 billion for fiscal year 2024.Quarterly DividendThe board of directors approved a dividend of US$0.232 per share (US$1.16 per ADS) for the fourth quarter of 2025 to holders of ordinary shares and holders of ADSs as of the close of business on March 16, 2026, Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars. For holders of ordinary shares, in order to qualify for the dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company's Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong, no later than 4:30 p.m. on March 16, 2026 (Beijing/Hong Kong Time). The payment date is expected to be March 25, 2026 for holders of ordinary shares and on or around March 27, 2026, for holders of ADSs.NetEase paid a dividend of US$0.114 per share (US$0.57 per ADS) for the third quarter of 2025 in December 2025.Under the Company's current dividend policy, the determination to make dividend distributions and the amount of such distribution in any particular quarter will be made at the discretion of its board of directors and will be based upon the Company's operations and earnings, cash flow, financial condition and other relevant factors.Share Repurchase ProgramOn November 20, 2025, the Company announced that its previously approved share repurchase program of up to US$5.0 billion of the Company's ADSs and ordinary shares in open market or other transactions will be extended for an additional 36 months until January 9, 2029. As of December 31, 2025, approximately 22.1 million ADSs had been repurchased under this program for a total cost of US$2.0 billion.The extent to which NetEase repurchases its ADSs and its ordinary shares depends upon a variety of factors, including market conditions. These programs may be suspended or discontinued at any time.** The United States dollar (US$) amounts disclosed in this announcement are presented solely for the convenience of the reader. The percentages stated are calculated based on RMB. Conference Call NetEase's management team will host a teleconference call with a simultaneous webcast at 7:00 a.m. Eastern Time on Wednesday, February 11, 2026 (Beijing/Hong Kong Time: 8:00 p.m., Wednesday, February 11, 2026). NetEase's management will be on the call to discuss the quarterly results and answer questions.Interested parties may participate in the conference call by dialing 1-914-202-3258 and providing conference ID: 10052758, 15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-855-883-1031 and entering PIN: 10052758. The replay will be available through February 18, 2026.This call will be webcast live and the replay will be available for 12 months. Both will be available on NetEase's Investor Relations website at http://ir.netease.com/.About NetEase, Inc.NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase") is a leading internet and game services provider centered around premium content. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of the most popular and longest-running mobile and PC games available in China and globally.Powered by one of the largest in-house game R&D teams focused on mobile, PC and console, NetEase creates superior gaming experiences, inspires players, and passionately delivers value for its thriving community worldwide. By infusing play with culture, and education with technology, NetEase transforms gaming into a meaningful vehicle to build a more entertaining and enlightened world.Beyond games, NetEase service offerings include its majority-controlled subsidiaries Youdao (NYSE: DAO), an intelligent learning and advertising solutions provider, and NetEase Cloud Music (HKEX: 9899), a well-known online music platform featuring a vibrant content community, as well as Yanxuan, NetEase's private-label consumer lifestyle brand.For more information, please visit: http://ir.netease.com/.Forward Looking StatementsThis announcement contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions. In addition, statements that are not historical facts, including statements about NetEase's strategies and business plans, its expectations regarding the growth of its business and its revenue and the quotations from management in this announcement are or contain forward-looking statements. NetEase may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that the online games market will not continue to grow or that NetEase will not be able to maintain its position in that market in China or globally; risks associated with NetEase's business and operating strategies and its ability to implement such strategies; NetEase's ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; potential changes in regulatory environment in the markets where NetEase operates; the risk that NetEase may not be able to continuously develop new and creative online services or that NetEase will not be able to set, or follow in a timely manner, trends in the market; risks related to evolving economic cycles and geopolitical tensions, including the direct or indirect impacts of national trade, investment, protectionist, tax or other laws or policies as well as export controls and economic or trade sanctions; risks related to the expansion of NetEase's businesses and operations internationally; risks associated with cybersecurity threats or incidents; and fluctuations in foreign currency exchange rates that could adversely affect NetEase's business and financial results. Further information regarding these and other risks is included in NetEase's filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. NetEase does not undertake any obligation to update this forward-looking information, except as required under applicable law.Non-GAAP Financial Measures NetEase considers and uses non-GAAP financial measures, such as non-GAAP net income attributable to the Company's shareholders and non-GAAP basic and diluted net income per ADS and per share, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").NetEase defines non-GAAP net income attributable to the Company's shareholders as net income attributable to the Company's shareholders excluding share-based compensation expenses. Non-GAAP net income attributable to the Company's shareholders enables NetEase's management to assess its operating results without considering the impact of share-based compensation expenses. NetEase believes that this non-GAAP financial measure provides useful information to investors in understanding and evaluating the Company's current operating performance and prospects in the same manner as management does, if they so choose. NetEase also believes that the use of this non-GAAP financial measure facilitates investors' assessment of its operating performance.Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP net income attributable to the Company's shareholders is that it does not reflect all items of expense/ income that affect our operations. Share-based compensation expenses have been and may continue to be incurred in NetEase's business and are not reflected in the presentation of non-GAAP net income attributable to the Company's shareholders. In addition, the non-GAAP financial measures NetEase uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited.NetEase compensates for these limitations by reconciling non-GAAP net income attributable to the Company's shareholders to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. See the unaudited reconciliation of GAAP and non-GAAP results at the end of this announcement. NetEase encourages you to review its financial information in its entirety and not rely on a single financial measure.Contact for Media and Investors:
Email: ir @STUDZ75-3378  NETEASE, INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)
 December 31,  
 December 31,  
 December 31,  
2024
2025
2025
 RMB  
 RMB  
 USD (Note 1) Assets




Current assets:




   Cash and cash equivalents51,383,310
47,167,904
6,744,921   Time deposits75,441,355
92,639,378
13,247,255   Restricted cash3,086,405
4,319,344
617,658   Accounts receivable, net5,669,027
5,337,819
763,298   Inventories571,548
689,183
98,552   Prepayments and other current assets, net6,416,868
7,658,346
1,095,128   Short-term investments10,756,143
22,803,503
3,260,858Total current assets153,324,656
180,615,477
25,827,670





Non-current assets:




   Property, equipment and software, net 8,520,101
8,425,327
1,204,806   Land use rights, net4,172,465
4,047,355
578,764   Deferred tax assets 1,113,435
2,831,423
404,888   Time deposits3,025,000
2,995,000
428,279   Restricted cash5,208
3,893
557   Other long-term assets25,830,685
22,496,585
3,216,968Total non-current assets42,666,894
40,799,583
5,834,262Total assets 195,991,550
221,415,060
31,661,932





Liabilities, Redeemable Noncontrolling Interests
    and Shareholders' Equity




Current liabilities:




   Accounts payable 720,549
643,164
91,971   Salary and welfare payables4,683,009
4,889,708
699,219   Taxes payable2,759,185
3,874,143
553,996   Short-term loans11,805,051
6,384,417
912,959   Contract liabilities15,299,222
20,514,540
2,933,540   Accrued liabilities and other payables14,400,641
16,062,984
2,296,976Total current liabilities49,667,657
52,368,956
7,488,661





Non-current liabilities:




   Deferred tax liabilities2,173,117
2,637,258
377,123   Long-term loans427,997
-
-   Other long-term liabilities1,228,641
1,304,837
186,589Total non-current liabilities3,829,755
3,942,095
563,712Total liabilities53,497,412
56,311,051
8,052,373





Redeemable noncontrolling interests 84,272
91,319
13,058





NetEase, Inc.'s shareholders' equity138,685,606
160,296,119
22,922,040Noncontrolling interests3,724,260
4,716,571
674,461Total equity142,409,866
165,012,690
23,596,501





Total liabilities, redeemable noncontrolling 
    interests and shareholders' equity    195,991,550
221,415,060
31,661,932





The accompanying notes are an integral part of this announcement.   NETEASE, INC.
















UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share data or per ADS data)




 Three Months Ended 
Year Ended


















December 31, 

September 30, 
December 31,
 December 31, 
 December 31, 
December 31,
December 31,


















2024

2025
2025
2025
2024
2025
2025


















 RMB 

 RMB 
 RMB 
 USD (Note 1) 
RMB
RMB
USD (Note 1)

















































Net revenues
26,747,811

28,358,625
27,546,973
3,939,165
105,295,236
112,625,807
16,105,276
















Cost of revenues
(10,475,470)

(10,181,020)
(9,854,598)
(1,409,189)
(39,488,152)
(40,223,939)
(5,751,947)
















Gross profit
16,272,341

18,177,605
17,692,375
2,529,976
65,807,084
72,401,868
10,353,329

















































Operating expenses:































Selling and marketing expenses 
(2,818,645)

(4,457,675)
(3,888,256)
(556,013)
(14,147,657)
(14,619,702)
(2,090,590)
















General and administrative expenses
(1,162,381)

(1,164,573)
(1,050,701)
(150,248)
(4,550,625)
(4,228,189)
(604,623)
















Research and development expenses 
(4,469,868)

(4,541,891)
(4,434,260)
(634,091)
(17,524,812)
(17,719,110)
(2,533,799)
















Total operating expenses
(8,450,894)

(10,164,139)
(9,373,217)
(1,340,352)
(36,223,094)
(36,567,001)
(5,229,012)
















Operating profit
7,821,447

8,013,466
8,319,158
1,189,624
29,583,990
35,834,867
5,124,317

















































Other income/(expenses):































Investment (loss)/income, net
(506,077)

1,379,402
(1,669,086)
(238,676)
355,286
731,511
104,605
















Interest income, net
1,174,333

936,706
1,002,404
143,342
4,920,915
3,953,486
565,341
















Exchange gains/(losses), net
1,535,312

(373,812)
(517,965)
(74,068)
255,430
(775,937)
(110,958)
















Other, net
278,952

153,198
485,863
69,477
602,134
1,086,543
155,374
















Income before tax
10,303,967

10,108,960
7,620,374
1,089,699
35,717,755
40,830,470
5,838,679
















Income tax
(1,385,014)

(1,316,356)
(1,250,430)
(178,809)
(5,461,408)
(6,032,686)
(862,663)
















Net income
8,918,953

8,792,604
6,369,944
910,890
30,256,347
34,797,784
4,976,016

















































Accretion of redeemable noncontrolling
    interests
(1,039)

(1,044)
(1,122)
(160)
(3,919)
(4,266)
(610)
















Net income attributable to noncontrolling 
    interests and redeemable noncontrolling 
    interests
(151,435)

(175,883)
(126,866)
(18,142)
(554,819)
(1,033,718)
(147,820)
















Net income attributable to the
    Company's shareholders
8,766,479

8,615,677
6,241,956
892,588
29,697,609
33,759,800
4,827,586

















































Net income per share *































Basic
2.76

2.70
1.96
0.28
9.28
10.59
1.52
















Diluted
2.73

2.67
1.93
0.28
9.19
10.48
1.50

















































Net income per ADS *































Basic
13.81

13.50
9.78
1.40
46.40
52.97
7.58
















Diluted
13.67

13.36
9.66
1.38
45.95
52.42
7.50

















































Weighted average number of ordinary       shares used in calculating net income 
   per share *































Basic
3,174,113

3,191,231
3,191,805
3,191,805
3,200,453
3,186,454
3,186,454
















Diluted
3,206,100

3,223,497
3,227,907
3,227,907
3,230,602
3,218,174
3,218,174

















































*  Each ADS represents five ordinary shares.
















The accompanying notes are an integral part of this announcement.


  NETEASE, INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

 Three Months Ended 
Year Ended

 December 31,  
 September 30, 
 December 31, 
 December 31, 
 December 31, 
 December 31, 
 December 31, 

2024
2025
2025
2025
2024
2025
2025

 RMB  
 RMB  
 RMB  
 USD (Note 1) 
 RMB  
 RMB  
 USD (Note 1) Cash flows from operating activities:













    Net income 
8,918,953
8,792,604
6,369,944
910,890
30,256,347
34,797,784
4,976,016    Adjustments to reconcile net income to net cash provided
        by operating activities:













    Depreciation and amortization
697,447
617,872
720,367
103,011
2,417,894
2,247,427
321,378    Fair value changes of equity security, other investments and
        financial instruments
358,852
(1,965,526)
1,308,861
187,165
(841,901)
(1,159,449)
(165,799)    Impairment losses on investments
422,801
1,616,146
857,796
122,663
1,291,627
2,724,476
389,595    Fair value changes of short-term investments
(241,431)
(278,636)
(283,560)
(40,549)
(530,607)
(1,108,409)
(158,500)    Share-based compensation cost
931,444
902,201
847,194
121,147
3,882,939
3,647,662
521,609    Allowance for expected credit losses
12,031
180,085
17,478
2,499
68,934
367,513
52,554    (Gains)/losses on disposal of property, equipment and software 
(3,644)
404
(20,063)
(2,869)
(4,758)
(30,286)
(4,331)    Unrealized exchange (gains)/losses
(1,542,986)
368,559
514,469
73,568
(719,162)
688,913
98,513    Losses/(gains) on disposal of long-term investments,
        business, subsidiaries and other financial instruments
232
(38,072)
(273,438)
(39,101)
(272,415)
(440,913)
(63,050)    Deferred income taxes
404,109
(933,553)
204,920
29,303
320,726
(1,254,125)
(179,337)    Share of results on equity method investees and revaluation results
        from previously held equity interest
(19,437)
1,389,265
153,645
21,972
155,568
1,537,721
219,891    Changes in operating assets and liabilities: 













        Accounts receivable
517,850
(194,823)
594,561
85,021
716,375
264,073
37,762        Inventories
42,135
(45,582)
(51,881)
(7,419)
123,780
(117,634)
(16,821)        Prepayments and other assets
(432,196)
(889,519)
701,921
100,373
(809,590)
100,708
14,401        Accounts payable
218,689
16,042
(59,225)
(8,469)
91,142
(71,615)
(10,241)        Salary and welfare payables
1,759,382
(566,362)
1,859,384
265,888
(210,918)
128,573
18,386        Taxes payable
154,651
517,353
(436,268)
(62,385)
187,788
1,112,836
159,133        Contract liabilities
(209,626)
2,579,424
1,048,151
149,884
2,022,196
5,435,054
777,202        Accrued liabilities and other payables
1,022,944
880,072
749,075
107,116
1,530,848
1,869,491
267,334    Net cash provided by operating activities
13,012,200
12,947,954
14,823,331
2,119,708
39,676,813
50,739,800
7,255,695














Cash flows from investing activities:













    Purchase of property, equipment and software
(311,982)
(283,645)
(137,818)
(19,708)
(1,275,400)
(1,065,376)
(152,347)    Proceeds from sale of property, equipment and software
9,295
1,261
21,790
3,116
14,533
45,886
6,562    Purchase of intangible assets, content and licensed copyrights
(120,387)
(190,983)
(183,986)
(26,309)
(930,988)
(987,089)
(141,151)    Net changes of short-term investments with terms of three months or less
3,798,989
(1,111,376)
(400,836)
(57,319)
(408,256)
(6,874,340)
(983,017)    Purchase of short-term investments with terms over three months
(4,560,000)
(7,270,000)
(5,600,000)
(800,789)
(8,235,000)
(21,640,000)
(3,094,479)    Proceeds from maturities of short-term investments with terms over three months2,853,778
1,426,005
7,695,328
1,100,418
2,853,778
17,575,388
2,513,247    Investment/ prepayment for investment in long-term investments and
        acquisition of subsidiaries
(201,686)
(95,169)
(1,617,947)
(231,363)
(1,103,026)
(4,545,723)
(650,030)    Proceeds from disposal of long-term investments, businesses,
        subsidiaries and other financial instruments
355,142
1,554,537
624,662
89,325
2,822,585
3,041,482
434,926    Placement/rollover of matured time deposits
(21,691,769)
(49,326,969)
(39,787,587)
(5,689,549)
(154,792,305)
(166,696,968)
(23,837,349)    Proceeds from maturities of time deposits
40,570,700
30,600,384
39,781,381
5,688,662
179,377,113
147,925,757
21,153,102    Change in other long-term assets
(73,553)
75,342
(7,658)
(1,095)
(406,632)
39,639
5,668    Net cash provided by/(used in) investing activities
20,628,527
(24,620,613)
387,329
55,389
17,916,402
(33,181,344)
(4,744,868)














Cash flows from financing activities:













    Net changes from loans with terms of three months or less  
606,092
536,886
(56,405)
(8,066)
(6,656,988)
243,636
34,840    Proceeds of loans with terms over three months
457,000
1,481,550
92,700
13,256
13,920,080
5,552,800
794,040    Payment of loans with terms over three months
-
(5,879,605)
(975,000)
(139,423)
(14,739,347)
(11,595,012)
(1,658,065)    Net amounts received related to capital contribution from or repurchase of
       noncontrolling interests shareholders
51,614
18,072
819
117
136,006
103,808
14,844    Net amount (paid)/received  related to repurchase of NetEase's ADSs/
        purchase of subsidiaries' ADSs and shares      
(1,595,093)
35,227
(15,398)
(2,202)
(8,830,115)
(639,335)
(91,424)    Dividends paid to NetEase's shareholders
(1,982,595)
(2,583,740)
(2,575,287)
(368,261)
(11,165,338)
(13,825,681)
(1,977,046)    Net cash used in financing activities
(2,462,982)
(6,391,610)
(3,528,571)
(504,579)
(27,335,702)
(20,159,784)
(2,882,811)














    Effect of exchange rate changes on cash, cash equivalents and
        restricted cash held in foreign currencies
113,792
(117,878)
(175,895)
(25,153)
10,752
(382,454)
(54,690)Net increase/(decrease) in cash, cash equivalents and restricted cash               31,291,537
(18,182,147)
11,506,194
1,645,365
30,268,265
(2,983,782)
(426,674)Cash, cash equivalents and restricted cash, at the beginning of the period
23,183,386
58,167,094
39,984,947
5,717,771
24,206,658
54,474,923
7,789,810Cash, cash equivalents and restricted cash, at the end of the period
54,474,923
39,984,947
51,491,141
7,363,136
54,474,923
51,491,141
7,363,136














Supplemental disclosures of cash flow information:













    Cash paid for income taxes, net
603,514
1,967,228
1,068,868
152,846
5,189,585
6,427,207
919,078    Cash paid for interest expenses
24,343
207,879
18,313
2,619
489,622
387,982
55,481














The accompanying notes are an integral part of this announcement.  NETEASE, INC.UNAUDITED SEGMENT INFORMATION(in thousands)


 Three Months Ended 
Year Ended

 December 31,  
 September 30, 
 December 31, 
 December 31, 
 December 31, 
December 31,
December 31,

2024
2025
2025
2025
2024
2025
2025

RMB
RMB
RMB
USD (Note 1)
RMB
RMB
USD (Note 1)Net revenues:













Games and related value-added services 
21,242,410
23,327,508
21,966,634
3,141,187
83,622,643
92,148,608
13,177,075Youdao
1,339,798
1,628,524
1,564,692
223,748
5,625,919
5,909,019
844,979NetEase Cloud Music
1,880,490
1,964,063
1,968,270
281,459
7,950,146
7,759,450
1,109,587Innovative businesses and others
2,285,113
1,438,530
2,047,377
292,771
8,096,528
6,808,730
973,635Total net revenues
26,747,811
28,358,625
27,546,973
3,939,165
105,295,236
112,625,807
16,105,276














Cost of revenues:













Games and related value-added services
(7,075,562)
(7,151,130)
(6,472,229)
(925,516)
(26,142,623)
(27,910,861)
(3,991,201)Youdao
(699,045)
(940,661)
(859,314)
(122,880)
(2,877,428)
(3,292,191)
(470,777)NetEase Cloud Music
(1,279,951)
(1,269,289)
(1,285,937)
(183,887)
(5,268,634)
(4,989,858)
(713,540)Innovative businesses and others
(1,420,912)
(819,940)
(1,237,118)
(176,906)
(5,199,467)
(4,031,029)
(576,429)Total cost of revenues
(10,475,470)
(10,181,020)
(9,854,598)
(1,409,189)
(39,488,152)
(40,223,939)
(5,751,947)














Gross profit:













Games and related value-added services
14,166,848
16,176,378
15,494,405
2,215,671
57,480,020
64,237,747
9,185,874Youdao
640,753
687,863
705,378
100,868
2,748,491
2,616,828
374,202NetEase Cloud Music
600,539
694,774
682,333
97,572
2,681,512
2,769,592
396,047Innovative businesses and others
864,201
618,590
810,259
115,865
2,897,061
2,777,701
397,206Total gross profit
16,272,341
18,177,605
17,692,375
2,529,976
65,807,084
72,401,868
10,353,329
The accompanying notes are an integral part of this announcement.  NETEASE, INC.NOTES TO UNAUDITED FINANCIAL INFORMATIONNote 1: The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00 = RMB 6.9931 on the last trading day of December 2025 (December 31, 2025) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 31, 2025, or at any other certain date.Note 2: Share-based compensation cost reported in the Company's unaudited condensed consolidated statements of comprehensive income is set out as follows in RMB and USD (in thousands):
Three Months Ended
 Year Ended 
December 31, 

September 30,
December 31,
December 31,
December 31, 
December 31,
 December 31,
2024

2025
2025
2025
2024
2025
2025
RMB

RMB
RMB
USD (Note 1)
RMB
RMB
USD (Note 1)Share-based compensation cost included in:













Cost of revenues304,687

267,472
212,072
30,326
1,185,854
1,004,581
143,653Operating expenses













  Selling and marketing expenses7,435

29,063
33,725
4,823
104,534
132,666
18,971  General and administrative expenses246,424

209,916
238,298
34,076
1,069,850
916,675
131,083  Research and development expenses372,898

395,750
363,099
51,922
1,522,701
1,593,740
227,902














The accompanying notes are an integral part of this announcement.Note 3: The financial information prepared and presented in this announcement might be different from those published and to be published by NetEase's listed subsidiary to meet the disclosure requirements under different accounting standards requirements.Note 4: The unaudited reconciliation of GAAP and non-GAAP results is set out as follows in RMB and USD (in thousands, except per share data or per ADS data)
Three Months Ended
Year Ended 
December 31, 

September 30, 

December 31,  
December 31,  
December 31, 
December 31,

December 31, 
2024

2025
2025
2025
2024
2025
2025
RMB

RMB
RMB
USD (Note 1)
RMB
RMB
USD (Note 1)Net income  attributable to the Company's shareholders8,766,479

8,615,677
6,241,956
892,588
29,697,609
33,759,800
4,827,586Add: Share-based compensation915,489

886,380
831,031
118,836
3,813,032
3,583,902
512,491Non-GAAP net income attributable to the Company's shareholders9,681,968

9,502,057
7,072,987
1,011,424
33,510,641
37,343,702
5,340,077














 Non-GAAP net income per share *













Basic3.05

2.98
2.22
0.32
10.47
11.72
1.68Diluted3.02

2.95
2.19
0.31
10.37
11.60
1.66














 Non-GAAP net income per ADS *
 













Basic15.25

14.89
11.08
1.58
52.35
58.60
8.38Diluted15.09

14.73
10.95
1.57
51.85
57.99
8.29














*  Each ADS represents five ordinary shares.The accompanying notes are an integral part of this announcement.  



View original content:https://www.prnewswire.com/news-releases/netease-announces-fourth-quarter-and-fiscal-year-2025-unaudited-financial-results-302684830.htmlSOURCE NetEase, Inc.

Original: NetEase Announces Fourth Quarter and Fiscal Year 2025 Unaudited Financial Results

NetEase Cloud Music Inc. to Report Fiscal Year 2025 Financial Results on February 11, 2026January 28, 2026 9:13 AM
PR Newswire (US)

HANGZHOU, China, Jan. 28, 2026 /PRNewswire/ -- NetEase Cloud Music Inc. (HKEX: 9899 or the "Company"), a leading interactive music streaming service provider in China, today announced that it will report its financial results for the fiscal year of 2025 ended December 31, 2025 on Wednesday, February 11, 2026, after the Hong Kong market closes.The Company's management will host an earnings conference call at 7:00 p.m. Beijing/Hong Kong Time on Wednesday, February 11, 2026 (6:00 a.m. U.S. Eastern Time on the same day). Details for the conference call are as follows:Event Title: NetEase Cloud Music Inc. Fiscal Year 2025 Earnings Conference Call
Registration Link: https://s1.c-conf.com/diamondpass/10052762-ref312.htmlAll participants must use the link provided above to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of dial-in numbers, an event passcode, and a personal access PIN, which will be used to join the conference call.A replay of the call will be accessible by phone at the following numbers and entering PIN: 10052762. The replay will be available through February 18, 2026.Chinese Mainland:400-120-9216Hong Kong:800-930-639United States:1-855-883-1031Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.music.163.com for 12 months following the call.About NetEase Cloud Music Inc.Launched in 2013 by NetEase, Inc. (NASDAQ: NTES; HKEX: 9999), NetEase Cloud Music Inc. (HKEX: 9899) is a well-known online music platform featuring a vibrant content community. Dedicated to providing an elevated user experience, NetEase Cloud Music Inc. provides precise, personalised recommendations, promotes user interaction and creates a strong social community. Its focus on discovering and promoting emerging musicians has made NetEase Cloud Music Inc. a destination of choice for exploring new and independent music among music enthusiasts in China. The platform has been recognised as the most popular entertainment app among China's vibrant Generation Z community.Please see http://ir.music.163.com/ for more information.Investor Enquiries:Angela Xu
NetEase Cloud Music Inc.
music.ir@service.netease.com



View original content:https://www.prnewswire.com/news-releases/netease-cloud-music-inc-to-report-fiscal-year-2025-financial-results-on-february-11-2026-302672417.htmlSOURCE NetEase Cloud Music

Original: NetEase Cloud Music Inc. to Report Fiscal Year 2025 Financial Results on February 11, 2026

NetEase to Report Fourth Quarter and Fiscal Year 2025 Financial Results on February 11January 28, 2026 8:30 AM
PR Newswire (US)

HANGZHOU, China, Jan. 28, 2026 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), a leading internet and game services provider, today announced that it will report financial results for the fourth quarter and fiscal year 2025 on Wednesday, February 11, 2026, before the open of the U.S. markets.
The earnings teleconference call with simultaneous webcast will take place at 7:00 a.m. Eastern Time on Wednesday, February 11, 2026 (Beijing/Hong Kong Time: 8:00 p.m., Wednesday, February 11, 2026). NetEase's management will be on the call to discuss the quarterly results and answer questions.Interested parties may participate in the conference call by dialing 1-914-202-3258 and providing conference ID: 10052758, 15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-855-883-1031 and entering PIN: 10052758. The replay will be available through February 18, 2026.This call will be webcast live and the replay will be available for 12 months. Both will be available on NetEase's Investor Relations website at http://ir.netease.com/.About NetEase, Inc.NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase") is a leading internet and game services provider centered around premium content. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of the most popular and longest-running mobile and PC games available in China and globally.Powered by one of the largest in-house game R&D teams focused on mobile, PC and console, NetEase creates superior gaming experiences, inspires players, and passionately delivers value for its thriving community worldwide. By infusing play with culture, and education with technology, NetEase transforms gaming into a meaningful vehicle to build a more entertaining and enlightened world.Beyond games, NetEase service offerings include its majority-controlled subsidiaries Youdao (NYSE: DAO), an intelligent learning and advertising solutions provider, and NetEase Cloud Music (HKEX: 9899), a well-known online music platform featuring a vibrant content community, as well as Yanxuan, NetEase's private-label consumer lifestyle brand.For more information, please visit: http://ir.netease.com/.Contact for Media and Investors:Investor Relations
Email: ir @STUDZ75-3378 



View original content:https://www.prnewswire.com/news-releases/netease-to-report-fourth-quarter-and-fiscal-year-2025-financial-results-on-february-11-302672098.htmlSOURCE NetEase, Inc.

Original: NetEase to Report Fourth Quarter and Fiscal Year 2025 Financial Results on February 11

NTES reports 2/20

BABA, NTES, or NIO: Which Chinese Stock Can Deliver the Highest Upside? https://www.tipranks.com/news/article/baba-ntes-or-nio-which-chinese-stock-can-deliver-the-highest-upside $NTES $NIO $BABA

NTES new 52 week high

NTES new 52 week high

NTES new 52 week high

how could you tell new buyers are flocking iino ntes? by charts or reporting by brokerage?

DAO is a subsidiary of NTES, and it will ipo this month.
What Does anyone here think of DAO?

News: $NTES 2 Asian Stocks That Will Benefit From 5G Cloud Gaming

Many analysts believe that 5G and cloud computing could "put a gaming console into the cellphone" just as 4G put DVDs into smartphones by making video streaming possible. Given that the gaming console market is worth tens-of-billions-of-dollars per year, there is a massive new market for compan...

In case you are interested NTES - 2 Asian Stocks That Will Benefit From 5G Cloud Gaming

Bullish into earning Wednesday

The BULLS are still in charge of the NTES stock price, despite the sell off in Chinese stocks in May, NTES had managed to stabilize and hold key support on continued high volume . We remain long into earnings Wednesday, with confidence that the improved conditions in the gaming sector within China will produce great results and guidance.

Buyers still flocking into Netease.

Since our last analysis on NTES the price has continued to climb on great volume . The overall picture is getting better and better with Chinese regulators lifting bans on more licensed games. We are long and will continue to be so with very little resistance above until the $330 region. Earnings are approaching on the 15th May so a small pullback is quite likely as some profit taking kicks in.

$NTES Buyers still flocking into Netease. Amazon had a lovely turnaround today amid all the selling pressure we have explained on our chart our set up for the long trade tomorrow, hopefully it is understandable.

NLST
#Netlist

NetEase Kaola ranked China's No.1 cross-border import retail e-commerce platform for sixth consecutive time

PR Newswire

HANGZHOU, China, Aug. 31, 2018



HANGZHOU, China, Aug. 31, 2018 /PRNewswire/ -- NetEase Kaola today announced that it again ranked as the No.1 cross-border import retail e-commerce platform in China as of June 30, 2018 followed by Tmall Global and JD Worldwide.[1] According to iiMedia Research Group's independent August 2018 research report, Netease Kaola has held its No.1 ranking for six consecutive times, with 26.2% market share in the first half of 2018.

In the report, analysts from iiMedia stated that NetEase Kaola's continuous success was generated from its high reputation and large user base, which were built on cost-effective, high-quality and trustworthy products.

"We are proud to see that NetEase Kaola is leading the market and is benefitting from the growing trend of consumption upgrades in China," said Ms. Zhang Lei, CEO of NetEase Kaola, "We have been committed to providing Chinese consumers with high-quality products from established international brands at competitive prices since the very first day. And we will continue that successful momentum by upgrading our supply chain, warehousing and logistics, as well as further improving the online shopping experience for our customers through the application of new technologies."

NetEase Kaola's competitive edge lies in its unique model. It establishes strong relationships with international brands and directly purchases most of its inventory from brands overseas, bypassing intermediaries and local distributors to lower costs, the benefit of which is passed down to consumers. In addition, NetEase Kaola provides a one-stop solution for foreign manufacturers to enter the China's complex market. By handling cross-border logistics, warehousing, online operations and after-sales services, NetEase Kaola enables foreign manufacturers to reach Chinese consumers on a broader and faster scale.

NetEase Kaola currently cooperates with more than 5,000 brands from 80 countries covering apparel, maternity and infant care, household appliances, personal care, health care and other major categories of products.

While enhancing its dominant position in the cross-border e-commerce market, NetEase Kaola is targeting the entire high-quality e-commerce market. With the growing trend of consumption upgrades among the rising middle class in China, high-quality e-commerce is in growing demand. However, the incumbent business model in China has not yet effectively capitalized on this opportunity. NetEase Kaola is designed to fill this gap in the market.

According to a research report recently released by the Boston Consulting Group, about 27% of the world's total consumption growth by 2021 will occur in major economies, bolstered by the rising income level, the growing upper-middle-class and affluent families. Among these economies, China's consumption level will see an increase of nearly US$2 trillion by 2021, driven by the growth of upper-middle-class' consumption capacity.

The promising growth prospects for China's high-quality e-commerce market presents huge opportunities for NetEase Kaola, especially in the case that the platform continues to focus on providing the right product with the right price and high quality along with excellent shopping experience, to maintain its market leading position.

NetEase Kaola, alongside with NetEase Yanxuan, constitutes NetEase's e-commerce business which has already transformed into a core part of NetEase's business. In the second quarter of 2018, NetEase's e-commerce business generated US$659.7 million in revenues. For fiscal year 2017, net revenues of e-commerce wereUS$1.8 billion, an increase of 157% compared with 2016.

About NetEase Kaola

NetEase Kaola is China's leading cross-border e-commerce platform. It provides a platform for international brands to sell their products securely to Chinese consumers and for Chinese consumers to purchase safe, high-quality international premium goods in a convenient way. Launched in 2015, it carries over 5,000 brands from 80 countries.

About NetEase, Inc.

NetEase, Inc. (NASDAQ:NTES) is a leading internet technology company in China dedicated to providing online services centered on content, community, communication and commerce. NetEase develops and operates some of China's most popular PC-client and mobile games, and partners with Blizzard Entertainment, Mojang AB (a Microsoft subsidiary) and other global game developers to operate some of the most popular international online games in China. NetEase also operates Kaola.com and Yanxuan, two e-commerce platforms that cater to the rising middle-class consumer market in China. In addition, NetEase offers advertising, e-mail and other services. For more information, please visit: http://ir.netease.com/.

This ER was a mixed bag. Dividend cut again, eps down again, margins down again. I'm absolutely not buying yet. To put things in perspective, last time netease delivered only 2.5B RMB in net profit. Share price was 140-180.......

New Research Report on Netease
REPORT

Considering the volatility in june and July, I can see this down 25% tomorrow. Those who got out late PM were lucky

Sanford C. Bernstein initiated coverage on NetEase (Nasdaq:NTES) at Underperform. Five valuation models imply that the stock is 21% overvalued.

Today's Top Wall Street Ratings

$NTES recent news/filings

bullish 183.85
recent surge in green CMF
higher highs higher lows uptrend
stochastics crossing up

translated website
http://translate.google.com/translate?hl=en&sl=zh-CN&tl=en&u=http://www.netease.com/&sandbox=0&usg=ALkJrhiN5nJGXbHUjQTdQaYHdIYH5Ouzmw

## source: finance.yahoo.com

Thu, 24 Dec 2015 22:30:00 GMT ~ NetEase Snubs China Sell-Off To Advance Big In 2015

[at Investor's Business Daily] - NetEase started this year in a test of support at its 10-week moving average, not quite 9% below a late-November high. The Guangzhou, China-based firm, trading its American depositary receipts on the Nasdaq, ...

read full: http://news.investors.com/122415-786890-netease-gets-unexpected-gain-in-2015.htm?ven=yahoocp&src=aurlled&ven=yahoo
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Wed, 23 Dec 2015 21:11:00 GMT ~ Smith & Wesson Leads Top 5 IBD 50 Performers In '15


read full: http://news.investors.com/122315-786679-netease-universal-display-dycom-cambrex-smith-wesson-top-ibd-50-stocks.htm?ven=yahoocp&src=aurlled&ven=yahoo
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Wed, 23 Dec 2015 21:05:00 GMT ~ This Top-Rated Stock Has Surged 135% In 2015


read full: http://finance.yahoo.com/video/top-rated-stock-surged-135-210500314.html
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Wed, 23 Dec 2015 11:00:00 GMT ~ NetEase Reveals New Major PC and Mobile Games at NetEase Games' 2015 Award Ceremony

[PR Newswire] - BEIJING, Dec. 23, 2015 /PRNewswire/ -- NetEase, Inc. (NTES), one of China's leading Internet and online game services providers, today announced that it unveiled 26 new mobile and PC-client games at the NetEase Games 2015 Award Ceremony. The Company's new games slated for release will include 14 RPG and ARPG games that will primarily be self-developed, along with select licensed games. Building on the tremendous success of NetEase's Fantasy Westward Journey and Westward Journey Online mobile games, NetEase plans to bring a number of popular PC-client games to mobile users, with introductions for the mobile companion of New Ghost, called A Chinese Ghost Story, and the mobile version of DaTang planned for the second quarter of 2016.

read full: http://finance.yahoo.com/news/netease-reveals-major-pc-mobile-110000082.html
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Tue, 22 Dec 2015 23:09:00 GMT ~ China's Stealth Base Makers: Alibaba, Trina Solar


read full: http://news.investors.com/122215-786526-alibaba-and-trina-form-bases.htm?ven=yahoocp&src=aurlled&ven=yahoo
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$NTES charts

basic chart ## source: stockcharts.com



basic chart ## source: stockscores.com



big daily chart ## source: stockcharts.com



big weekly chart ## source: stockcharts.com



$NTES company information

## source: otcmarkets.com

Link: http://www.otcmarkets.com/stock/NTES/company-info
Ticker: $NTES
OTC Market Place: Not Available
CIK code: 0001110646
Company name: NetEase, Inc.
Company website: http://www.corp.163.com/eng/home.shtml
Incorporated In: Cayman Islands

$NTES share structure

## source: otcmarkets.com

Market Value: $938,039,470 a/o Dec 24, 2015
Shares Outstanding: 127,555,000 a/o Mar 28, 2006
Float: Not Available
Authorized Shares: Not Available
Par Value: 0.0001

$NTES extra dd links

Company name: NetEase, Inc.
Company website: http://www.corp.163.com/eng/home.shtml

## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/NTES/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/NTES/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=NTES+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=NTES+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=NTES+Industry

## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/news - http://finance.yahoo.com/q/h?s=NTES+Headlines

## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/NTES/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/NTES/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/NTES/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/NTES/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=NTES+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/NTES
DTCC (dtcc.com): http://search2.dtcc.com/?q=NetEase%2C+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=NetEase%2C+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=NetEase%2C+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.corp.163.com/eng/home.shtml
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.corp.163.com/eng/home.shtml#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.corp.163.com/eng/home.shtml

## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/NTES/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/NTES
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/NTES/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/NTES/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/NTES/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001110646&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/NTES/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/NTES/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=NTES&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=NTES
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=NTES+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=NTES+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=NTES
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=NTES
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=NTES+Cash+Flow&annual

## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/NTES/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=NTES+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/NTES.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=NTES
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/NTES/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/NTES/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/NTES/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/insider-transactions

## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/NTES
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/NTES
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/NTES:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=NTES
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=NTES



$NTES DD Notes ~ http://www.ddnotesmaker.com/NTES

Dropped below 178. I missed that chance. As much as Chinese companies give me a headache. Are there any Christians in China? If so, the holidays should be good for the pps.

Go $NTES

Biggest BUY Order I Have Seen

Date: Monday December 07, 2015

Time: 16:14:17

Size: 41,600

Price: $177.3132

----------------------

That's a $7,376,229.10 Buy Order!

Wow

$NTES DD Notes ~ http://www.ddnotesmaker.com/NTES

bullish

$NTES recent news/filings

## source: finance.yahoo.com

Sat, 22 Nov 2014 13:02:00 GMT ~ 5 IBD 50 Stocks That May Benefit From China Rate Cut

[at Investor's Business Daily] - China's surprise interest rate cut Friday could deliver a shot in the arm to flagging economic growth and top-performing Chinese stocks like Baidu and BitAuto. Today's IBD 50 includes five Chinese Internet ...

read full: http://news.investors.com/112214-727595-bitauto-among-five-stocks-benefit-china-rate-cut.htm?ven=yahoocp&src=aurlled&ven=yahoo
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Fri, 21 Nov 2014 23:41:00 GMT ~ IBD 50 Lagging Indexes As Some Leaders Go Sideways


read full: http://news.investors.com/112114-727673-ibd-50-lagging-major-indexes.htm?ven=yahoocp&src=aurlled&ven=yahoo
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Fri, 21 Nov 2014 22:11:00 GMT ~ Market Loses Much Of Early Gain; China Shows Strength


read full: http://news.investors.com/112114-727597-stock-market-today-new-highs-trina-solar.htm?ven=yahoocp&src=aurlled&ven=yahoo
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Fri, 21 Nov 2014 21:41:58 GMT ~ LONG list of Lg Cap All-Time Highs...


read full: http://finance.yahoo.com/tumblr/blog-long-list-of-lg-cap-all-time-highs-214201687.html
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Fri, 21 Nov 2014 21:22:00 GMT ~ Stocks End Off Day's Highs; NetEase, Micron Gain


read full: http://news.investors.com/112114-727585-stock-market-today-closes.htm?ven=yahoocp&src=aurlled&ven=yahoo
*********************************************************


$NTES charts

basic chart ## source: stockcharts.com



basic chart ## source: stockscores.com



big daily chart ## source: stockcharts.com



big weekly chart ## source: stockcharts.com


$NTES company information

## source: otcmarkets.com

Link: http://www.otcmarkets.com/stock/NTES/company-info
Ticker: $NTES
OTC Market Place: Not Available
CIK code: 0001110646
Company name: NetEase, Inc.
Company website: http://www.corp.163.com/eng/home.shtml
Incorporated In: Cayman Islands


$NTES share structure

## source: otcmarkets.com

Market Value: $533,894,208 a/o Dec 02, 2014
Shares Outstanding: 127,555,000 a/o Mar 28, 2006
Float: Not Available
Authorized Shares: Not Available
Par Value: 0.0001
$NTES extra dd links

Company name: NetEase, Inc.
Company website: http://www.corp.163.com/eng/home.shtml

## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/NTES/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/NTES/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=NTES+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=NTES+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=NTES+Industry

## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/news - http://finance.yahoo.com/q/h?s=NTES+Headlines

## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/NTES/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/NTES/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/NTES/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/NTES/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=NTES+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/NTES
DTCC (dtcc.com): http://search2.dtcc.com/?q=NetEase%2C+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=NetEase%2C+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=NetEase%2C+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.corp.163.com/eng/home.shtml
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.corp.163.com/eng/home.shtml#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.corp.163.com/eng/home.shtml

## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/NTES/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/NTES
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/NTES/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/NTES/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/NTES/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001110646&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/NTES/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/NTES/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=NTES&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=NTES
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=NTES+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=NTES+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=NTES
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=NTES
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=NTES+Cash+Flow&annual

## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/NTES/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=NTES+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/NTES.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=NTES
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/NTES/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/NTES/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/NTES/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/insider-transactions

## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/NTES
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/NTES
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/NTES:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=NTES
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=NTES



$NTES DD Notes ~ http://www.ddnotesmaker.com/NTES

Damn their stacking cash.

$NTES DD Notes ~ http://www.ddnotesmaker.com/NTES

bullish very long term

$NTES recent news/filings

## source: finance.yahoo.com

Wed, 22 Oct 2014 11:00:00 GMT ~ NetEase to Report Third Quarter 2014 Financial Results on November 12, 2014

[PR Newswire] - BEIJING, Oct. 22, 2014 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES) today announced that it will report its financial results for the 2014 third quarter on Wednesday, November 12, 2014, after the close ...

read full: http://finance.yahoo.com/news/netease-report-third-quarter-2014-110000156.html
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Tue, 21 Oct 2014 13:45:00 GMT ~ New Lifetime High Reached: NetEase (NTES)

[at TheStreet] - Trade-Ideas LLC identified NetEase (NTES) as a new lifetime high candidate

read full: http://www.thestreet.com/story/12921468/1/new-lifetime-high-reached-netease-ntes.html?puc=yahoo&cm_ven=YAHOO
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Wed, 15 Oct 2014 16:01:00 GMT ~ Major Averages Pare Losses, Then Head Lower Again

[at Investor's Business Daily] - Stocks headed lower again in late-morning trade after paring steep early losses sparked by weak economic data. The S&P 500 and Dow industrials sank 1.5% each, while the Nasdaq was down 1.3%. The tech-heavy ...

read full: http://news.investors.com/101514-721845-major-averages-pare-losses-then-head-lower-again.htm?ven=yahoocp&src=aurlled&ven=yahoo
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Thu, 09 Oct 2014 17:25:00 GMT ~ Prior Day's Gains Nearly Gone; NetEase Hits Resistance


read full: http://news.investors.com/100914-721021-stock-market-today-in-big-retreat.htm?ven=yahoocp&src=aurlled&ven=yahoo
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Tue, 23 Sep 2014 18:06:00 GMT ~ Can China Games IPO iDreamSky Keep Investors Happy?


read full: http://news.investors.com/092314-718585-idreamsky-a-play-on-china-mobile-game-market.htm?ven=yahoocp&src=aurlled&ven=yahoo
*********************************************************


$NTES charts

basic chart ## source: stockcharts.com



basic chart ## source: stockscores.com



big daily chart ## source: stockcharts.com



big weekly chart ## source: stockcharts.com


$NTES company information

## source: otcmarkets.com

Link: http://www.otcmarkets.com/stock/NTES/company-info
Ticker: $NTES
OTC Market Place: Not Available
CIK code: 0001110646
Company name: NetEase, Inc.
Company website: http://www.corp.163.com/eng/home.shtml
Incorporated In: Cayman Islands


$NTES share structure

## source: otcmarkets.com

Market Value: $469,249,334 a/o Oct 27, 2014
Shares Outstanding: 127,555,000 a/o Mar 28, 2006
Float: Not Available
Authorized Shares: Not Available
Par Value: 0.0001
$NTES extra dd links

Company name: NetEase, Inc.
Company website: http://www.corp.163.com/eng/home.shtml

## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/NTES/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/NTES/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=NTES+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=NTES+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=NTES+Industry

## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/news - http://finance.yahoo.com/q/h?s=NTES+Headlines

## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/NTES/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/NTES/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/NTES/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/NTES/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=NTES+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/NTES
DTCC (dtcc.com): http://search2.dtcc.com/?q=NetEase%2C+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=NetEase%2C+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=NetEase%2C+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.corp.163.com/eng/home.shtml
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.corp.163.com/eng/home.shtml#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.corp.163.com/eng/home.shtml

## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/NTES/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/NTES
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/NTES/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/NTES/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/NTES/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001110646&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/NTES/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/NTES/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=NTES&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=NTES
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=NTES+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=NTES+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=NTES
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=NTES
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=NTES+Cash+Flow&annual

## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/NTES/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=NTES+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/NTES.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=NTES
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/NTES/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/NTES/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/NTES/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/insider-transactions

## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/NTES
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/NTES
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/NTES:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=NTES
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=NTES



$NTES DD Notes ~ http://www.ddnotesmaker.com/NTES

NetEase Reports Third Quarter 2013 Unaudited Financial Results

November 13, 2013 6:00 PM EST

http://www.streetinsider.com/Press+Releases/NetEase+Reports+Third+Quarter+2013+Unaudited+Financial+Results/8883665.html

BEIJING, Nov. 13, 2013 /PRNewswire-FirstCall/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced its unaudited financial results for the third quarter ended September 30, 2013.

"We continue to broaden the platforms for our traditional and mobile Internet product and service offerings," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "During the third quarter we completed key upgrades for two of our most popular games, increased our investment in the mobile Internet business and entered the mobile instant messaging space with the launch of YiChat. These critical advancements support our growth objectives, and for the third quarter we increased our revenues by 23.0% year-over-year, with revenues from our online games and advertising services increasing by 21.0% and 22.9%, respectively."

"Our self-developed traditional and mobile game offerings are resonating well with our audiences. During the third quarter, one of our most popular games, Fantasy Westward Journey II, delivered an excellent performance following the early July launch of its comprehensive upgrade, along with the game's accompanying pocket mobile version. This pocket mobile version has extended the reach of our game from the PC to mobile platforms, and user feedback continues to be favorable. In addition, the exciting new version we launched for Westward Journey Online II in September -now known as New Westward Journey Online II- was a significant upgrade for this classic game, which is stimulating players' enthusiasm and demonstrating positive user trends."

"Our newer games are also performing in-line with our expectations. The expansion pack launched in June for Heroes of Tang Dynasty II was well received by players and contributed to our revenue growth for the period. For our other game titles, we expect heightened interest in the coming periods as we introduced new expansion packs for Ghost II and Kung Fu Master in September and October, respectively, and have expansion packs planned in the fourth quarter for Heroes of Tang Dynasty II, Tianxia III and Legend of Fairy. Our development schedule is also progressing smoothly. User feedback has been encouraging following our initial commercial launch of Heroes of Three Kingdoms in April and Dragon Sword in August. Large-scale promotional activities were launched for those two games in September and November, respectively, and earlier this month, we commercially launched Legend of Tibet, a 2.5D MMORPG. Before the end of year, we also expect to introduce several high quality mobile games. For 2014, we currently plan to release our first person shooter game, Crisis 2015, in the first half of 2014 and we are preparing to introduce another new game: Revelation, a 3-D epic fantasy MMORPG that we have been developing for the past three years. Revelation features exceptional computer-generated graphic effects using cutting-edge technology and integrates traditional MMO styles with enhanced action elements to provide young players with cool and fast-paced fighting experiences."

"The upcoming open beta test in mainland China of Blizzard Entertainment's highly anticipated Hearthstone™: Heroes of Warcraft™ will become another important milestone. This new free-to-play online collectible card game featuring legendary heroes, spells and minions from the Warcraft universe, is simple to play yet highly engaging, and we look forward to providing our players with this great gaming experience."

"Turning to our portal, our advertising services revenue increased both sequentially and year-over-year with the largest revenue contributions coming from the automobile, Internet services and fast moving consumer goods sectors. We now have a number of fast growing mobile applications, which provide an important platform for delivery of our value-added services and advertisements. YiChat has been one of our most exciting new additions, and we are extremely pleased to have partnered with China Telecom to launch this instant messaging application. Attracting considerable attention from the Chinese community, downloads for YiChat exceeded 1 million on the first day of its launch in August, and it had reached more than 30 million users by the end of October. YiChat significantly advances our mobile Internet strategy, and we continue to grow our community of loyal users across our robust portals. As of September 30, 2013, we had over 590 million e-mail users and 160 million installations of our leading Mobile News application."

"We see a great opportunity to integrate and expand our traditional online games and services with complementary mobile Internet offerings that broaden our customer base. We will continue to develop our mobile social networking platform and introduce new products and games to support this strategy. As a pioneer in China's Internet market, we are dedicated to providing our community with competitive products and services that honor our commitment to quality, while simultaneously creating additional value for our shareholder partners," Mr. Ding concluded.

Third Quarter 2013 Financial Results

Revenues

Total revenues for the third quarter of 2013 were RMB2,514.3 million (US$410.8 million), compared to RMB2,413.8 million and RMB2,044.9 million for the preceding quarter and the third quarter of 2012, respectively.

Revenues from online games were RMB2,105.5 million (US$344.0 million) for the third quarter of 2013, compared to RMB2,066.5 million and RMB1,739.9 million for the preceding quarter and the third quarter of 2012, respectively.

Revenues from advertising services were RMB298.8 million (US$48.8 million) for the third quarter of 2013, compared to RMB272.2 million and RMB243.0 million for the preceding quarter and the third quarter of 2012, respectively.

Revenues from e-mail, wireless value-added services and others ("E-mail, WVAS and others") were RMB110.1 million (US$18.0 million) for the third quarter of 2013, compared to RMB75.1 million and RMB61.9 million for the preceding quarter and the third quarter of 2012, respectively.

Sales Taxes

Total sales taxes for the third quarter of 2013 were RMB157.7 million (US$25.8 million), compared to RMB149.3 million and RMB42.9 million for the preceding quarter and the third quarter of 2012, respectively. The year-over-year increase in sales taxes was mainly due to a change in the tax rules in China, which resulted in the Company's online game revenues gradually becoming subject to value-added tax instead of business tax since 2013. This change in tax rules did not have a significant impact on gross profit from the Company's online game services business segment as the increase in value-added tax was substantially offset by a reduction in business taxes on intra-group revenues, which were previously recorded in cost of revenues. As a result, the year-over-year increase in gross profit margin was primarily attributable to lower net revenue due to the increased value-added tax in sales taxes.

Gross Profit

Gross profit for the third quarter of 2013 was RMB1,746.8 million (US$285.4 million), compared to RMB1,697.6 million and RMB1,361.9 million for the preceding quarter and the third quarter of 2012, respectively.

The year-over-year increase in gross profit was primarily attributable to increased gross profit from NetEase's online game and advertising businesses.

The year-over-year increase in online game revenues was primarily driven by increased revenues from the Company's self-developed games, primarily Fantasy Westward Journey II, Kung Fu Master, Heroes of Tang Dynasty II and New Westward Journey Online II, which was partially offset by a decline in revenue from World of Warcraft®, a game licensed from Blizzard Entertainment.

The year-over-year increase in advertising services revenues was primarily due to a rise in demand, mainly from sectors such as automobile, Internet services and real estate.

The quarter-over-quarter increase in gross profit was primarily attributable to increased gross profit from NetEase's advertising services due to the reason mentioned above, and increased revenues from the one-off sale of certain game accessories, such as a limited edition pack for NetEase's New Westward Journey Online II, which is included in the E-mail, WVAS and others business.

Gross Profit (Loss) Margin

Gross profit margin for the online game business for the third quarter of 2013 was 79.7%, compared to 80.9% and 74.2% for the preceding quarter and the third quarter of 2012, respectively. The year-over-year increase in gross profit margin was mainly due to the changes in tax rules as mentioned above.

Gross profit margin for the advertising business for the third quarter of 2013 was 59.4%, compared to 55.5% and 36.2% for the preceding quarter and the third quarter of 2012, respectively. The increase in gross profit margin reflects the Company's ability to effectively scale its advertising business.

Gross profit margin for the E-mail, WVAS and others business for the third quarter of 2013 was 4.1%, compared to gross loss margin of 21.0% and gross profit margin of 6.0% for the preceding quarter and the third quarter of 2012, respectively. The increase in gross profit margin was mainly due to increased revenue contribution from sales of higher margin game accessories.

Operating Expenses

Total operating expenses for the third quarter of 2013 were RMB635.2 million (US$103.8 million), compared to RMB626.0 million and RMB537.5 million for the preceding quarter and the third quarter of 2012, respectively. The year-over-year increase in operating expenses was mainly due to increased staff related cost resulting from an increase in the number of employees and average compensation, as well as higher research and development investments. The quarter-over-quarter increase in operating expenses was mainly due to increased general and administrative expenses and research and development expenses, which were partially offset by decreased selling and marketing expenditures for licensed games in this quarter.

Income Taxes

The Company recorded a net income tax charge of RMB206.5 million (US$33.7 million) for the third quarter of 2013, compared to RMB131.8 million and RMB194.8 million for the preceding quarter and the third quarter of 2012, respectively. The effective tax rate for the third quarter of 2013 was 16.5%, compared to 10.8% and 19.9% for the preceding quarter and the third quarter of 2012, respectively. The quarter-over-quarter increase in effective tax rate was due to the Company recognizing RMB47.1 million in tax credits related to certain incentives for a deduction in research and development expenses agreed on by tax authorities during the annual tax filing of the Company's PRC entities in the preceding quarter. The year-over-year decrease in effective tax rate was due to the occurrence of a one-time accrued withholding tax of RMB40.0 million associated with the offshore remittance of cash from China in connection with the declaration of a special cash dividend in the third quarter of 2012.

The Company's various principal subsidiaries renewed their qualifications as High and New Technology Enterprises in 2011, and enjoy the preferential enterprise income tax rate of 15% from 2011 to 2013, subject to annual review by the relevant tax authorities in China.

Net Income after tax

Net profit for the third quarter of 2013 totaled RMB1.0 billion (US$171.3 million), compared to RMB1.1 billion and RMB811.9 million for the preceding quarter and the third quarter of 2012, respectively.

During the third quarter of 2013, the Company reported a net foreign exchange gain of RMB5.9 million (US$1.0 million), compared to RMB5.6 million and RMB23.7 million for the preceding quarter and the third quarter of 2012, respectively. The quarter-over-quarter and year-over-year changes in foreign exchange gains were mainly due to the unrealized exchange gains arising from the Company's foreign currency denominated bank deposit and short-term loan balances as of September 30, 2013 as the exchange rate of the U.S. dollar against the RMB fluctuated over the periods.

NetEase reported basic and diluted earnings per ADS of US$1.32 and US$1.31, respectively, for the third quarter of 2013. The Company reported basic and diluted earnings per ADS of US$1.38 and US$1.37, respectively, for the preceding quarter, and reported basic and diluted earnings per ADS of US$1.01 each for the third quarter of 2012.

Other Information

As of September 30, 2013, the Company's total cash and time deposits balance was RMB17.2 billion (US$2.8 billion), compared to RMB15.2 billion as of December 31, 2012. Cash flow generated from operating activities was RMB1.0 billion (US$165.9 million) for the third quarter of 2013, compared to RMB1.0 billion and RMB670.1 million for the preceding quarter and the third quarter of 2012, respectively.

Share Repurchase Program

In November 2012, the Company announced that its board of directors approved a new share repurchase program of up to US$100.0 million. As of September 30, 2013, the Company had cumulatively purchased approximately 2.02 million ADSs in open market purchases under this program for a total consideration of approximately US$83.0 million. The share repurchase program will expire on November 20, 2013.

** The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. Translations of amounts from RMB into United States dollars for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB6.1200 on September 30, 2013 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on September 30, 2013, or at any other certain date. The percentages stated are calculated based on RMB.

Deutsche Bank Cuts NetEase.com (NTES) to Hold, Company in 'Twilight Years'


http://www.streetinsider.com/Downgrades/Deutsche+Bank+Cuts+NetEase.com+%28NTES%29+to+Hold%2C+Company+in+Twilight+Years/8885466.html

Deutsche Bank downgraded NetEase.com (NASDAQ: NTES) from Buy to Hold with a price target of $66.00 (from $73.00). Analyst Vivian Hao believes the company is in its "twilight years."

"We believe NetEase is likely to go through a painful transitional period from PC game incumbent to mobile internet with limited catalyst currently," said analyst Hao.

"We believe a premium over other peers is justified given NetEase's leading online game operating and game developing history, more diversified game portfolio (both licensed and in-house developed) and regular dividend policy started from FY12. In our opinion, NetEase is largely trading at fair value," she added.

NetEase: In-House Games Drove Sales, Morgan Stanley Raised TP To $77

By Shuli Ren

NetEase (NTES) reported worse-than-expected third-quarter earnings. Revenue came in at $385.1 million, below the $392.9 million polled by Factset. Earnings per share was $1.31, below the consensus $1.35.

But these numbers were good enough for Morgan Stanley, saying they were in line with their estimates. In addition, the broker raised their Buy target price from $73 to $77.

What did the analysts like? In the third quarter, NetEase’s 21% year-on-year revenue growth was driven by in-house developed games. Here are analysts Timothy Chan, Philip Wan, and Gillian Chung:


The annual sales growth was mainly helped by price hike of Fantasy Westward Journey (FWJ) and Westward Journey Online III (WJ3), and continued growth of its games. We note the strength of in-house titles helped offset the decline in World of Warcraft (WoW). We estimate FWJ contributed ~30% of total sales.

Morgan Stanley also liked the pipeline of new games:


We expect new titles, such as Heroes of Three Kingdoms, Dragon Sword, Legend of Tibet, Crisis 2015 and Revelation to be new drivers for 2014 and beyond

And the cash pile:


NetEase’s net cash of US$2.8bn (+16% YoY) accounts for 30-35% of its market value.

So what are NetEases’s key business risks? The declining sale from World of Warcraft may be an overhang:


We believe the gamer base for World of Warcraft has continued to decline, as no major expansion pack was launched this year. That said, we estimate that its total revenue contribution may drop below 10%.

And its two most popular games are entering an old age:


NetEase’s major revenue contributors Fantasy Westward Journey II and Westward Journey Online II are advancing into the eighth and tenth years of operation, respectively.

Anyone know why this dropped 10% today?

6:02 PM Netease.com (NTES): Q1 EPS of $1.32 beats by $0.09. Revenue of $363.6M beats by $15.47M

6:23 PM More on NetEase: The company has adopted an annual dividend policy under which it will pay out 20%-25% of net income in a given fiscal year. The announcement follows the January payment of a $1/share special dividend. NetEase's Q1 online game revenue (90% of total) rose 11% Y/Y. Ad sales +15%, all other services +65%. Opex -22% Q/Q (lower promotional spend) but +28% Y/Y (investments in new games).

http://seekingalpha.com/article/1438991-netease-management-discusses-q1-2013-results-earnings-call-transcrip

No date confirmed yet

http://earningswhisper.com/stocks.asp?symbol=ntes

When does NTES report earnings? Chart setup looks good.. BIDU reports thursday 4/25..

NTES:

12-12-12

38.34

11:03 AM NetEase (NTES -6.6%) slumps after reporting Q3 revenue of $325.4M (flat Y/Y) and EPS of $0.98, missing consensus by $8.3M and $0.09. Online gaming revenue (85% of total) fell a bit while advertising and value-added service revenue rose. Opex surged 23% Y/Y to $85.5M thanks in part to higher gave development R&D and promotional spending. A new $100M stock repurchase program (good for buying back 1.6% of outstanding shares at current levels) has been authorized.

NetEase Q3 Misses Estimates On Rising Costs, Lower Revs; Shares Slide.

By Reshma Kapadia

Chinese Internet gaming firm NetEase (NTES) posted third quarter sales of $318.5 million and profits of $129 million, or 98 cents an ADS, versus analysts’ estimates of $1.07 a share that disappointed analysts, adding to the recent flow of pessimism from the sector. The company’s ADS was down 5.6% at $47.48 in morning trading.

The company’s operating margin came in at the lowest in a decade amid the quarter’s marketing and promotional activity and research and development expenses, Citi analyst Muzhi Li writes.

On the good news front, Netease announced a $1 a share special dividend and said its board approved a $100 million share buyback plan.

Citi’s Muzhi Li cut the firm’s price target by 8% on the company to $56.80, noting increased product risks, shortened game life cycles and the “weakening cost structure” but retained a neutral rating.

Li adds: “We believe Netease is beginning to face gamer fatigue between product cycles whereas game sales increasingly depend on the launch of new games or expansion packs.”

NetEase's CEO Discusses Q3 2012 Results - Earnings Call Transcript

http://seekingalpha.com/article/1009561-netease-s-ceo-discusses-q3-2012-results-earnings-call-transcript?source=yahoo

Netease.com (NTES) Misses Q3 EPS by 10c; Declares $1/Sh Special Dividend, $100M Stock Buyback

http://www.streetinsider.com/Stock+Buybacks/Netease.com+%28NTES%29+Misses+Q3+EPS+by+10c%3B+Declares+%241Sh+Special+Dividend%2C+%24100M+Stock+Buyback/7880253.html

Netease.com (NASDAQ: NTES) reported Q3 EPS of $0.98, $0.10 worse than the analyst estimate of $1.08. Revenue for the quarter came in at $325.4 million versus the consensus estimate of $335 million.

The Company today announced that its board of directors approved a new share repurchase program of up to US$100 million of the Company's outstanding ADSs for a period not to exceed 12 months.

The Company today announced that its board of directors declared a special cash dividend of US$0.04 per ordinary share, which is equivalent to US$1.00 per ADS (each ADS represents 25 ordinary shares).

Netease.com (NTES) Declares $1.00 Special Dividend; 2% Yield

http://www.streetinsider.com/Dividends/Netease.com+%28NTES%29+Declares+%241.00+Special+Dividend%3B+2%25+Yield/7880254.html

Netease.com (NASDAQ: NTES) declared a special dividend of $1.00 per ADS.

The dividend will be payable on January 18, 2013, to stockholders of record on January 15, 2013, with an ex-dividend date of November 14, 2012.

(I wonder if they have that ex div date incorrect and if this link will be updated?)

NetEase Reports Third Quarter 2012 Unaudited Financial Results

Wednesday, November 14, 2012 18:00ET


BEIJING, Nov. 14, 2012 /PRNewswire-FirstCall/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced its unaudited financial results for the third quarter ended September 30, 2012.

William Ding, Chief Executive Officer and Director of NetEase, stated, "For the third quarter, total online game revenues were RMB1.7 billion with increased revenue contribution from our self-developed games. We advanced our online game business by introducing new games, launching expansion packs and conducting key promotional activities. Most recently, we launched unlimited beta testing for our newest games, Soul of the Fighter and Kung Fu Master, in September and October, respectively. Both new games have received exceptionally positive reception among gamers in China, and we are delighted with the user feedback thus far. As a result of the promotional activities for our flagship games, Fantasy Westward Journey and its latest expansion pack, and Westward Journey Online II, these games achieved record-high PCU levels in August. We also introduced a new expansion pack for Westward Journey Online III in August, as well as a new 3DX expansion pack for Tianxia III in late September."

"The October 2nd release of the highly anticipated fourth expansion pack of Blizzard Entertainment's World of Warcraft(®): Mists of Pandaria((TM)) in mainland China was another important milestone during this period. With elements that appeal to Chinese culture, Mists of Pandaria has proven to be especially engaging, and we believe that it is being widely embraced by China's gaming community."

"As we enter the remaining months of 2012 and move into 2013, we will focus on introducing new games and expansion packs that will build on the popularity of our existing games, and furthering our strategy of diversifying our portfolio offering. We plan to launch Heroes of Tang Dynasty II, a comprehensive update of Heroes of Tang Dynasty, on November 16, and in the coming months, we plan to introduce two new games, Heroes of Three Kingdoms, our 3D action real-time strategy game, and Dragon Sword, our next generation 3D MMORPG."

"As one of the first and largest Internet companies in China, the popularity of our portal continues to drive our advertising services revenues. During the third quarter, our advertising services revenues grew 10.2% year-over-year and 19.0% quarter-over-quarter with automobile, fast moving consumer goods and financial services as the top performing sectors. Our advertising business benefited from the popularity of our leading mobile news application as well as our broadcast of the London Olympics. The coverage of the latter yielded an unprecedented number of downloads and portal activity that exceeded our results from the Beijing Olympics in 2008."

"Our e-mail services also continued to grow, and as of September 30, 2012, we had approximately 510 million registered e-mail users. The integration of our traditional and mobile Internet services is continually being furthered and enhanced. We have more than 60 million registered mobile e-mail users and 27 million installations for our Mobile News application."

"We are working to achieve healthy growth that furthers our leading position in China's thriving Internet community. Historically, we have developed some of the most long-lasting and popular online games in China, and our large community of loyal users is growing across our business segments. Focusing on premium quality remains our top goal as we further build and diversify our portfolio of online games and enhance our content and value added services for our leading portal and burgeoning mobile Internet businesses. In addition, we have always been committed to creating value for our shareholders. As our revenue continues to grow, generating strong free cash flow from operations, we are happy to announce that our board of directors has approved a special cash dividend of US$1.00 per ADS, along with a US$100 million share repurchase program. We believe that these actions reflect our sound financial position and will enhance our shareholders' return as we work to increase the value of our Company," concluded Mr. Ding.

Third Quarter 2012 Financial Results

Revenues

Total revenues for the third quarter of 2012 were RMB2.0 billion (US$325.4 million), compared to RMB2.0 billion for both the preceding quarter and the third quarter of 2011.

Revenues from online games were RMB1.7 billion (US$276.8 million) for the third quarter of 2012, compared to RMB1.7 billion and RMB1.8 billion for the preceding quarter and the third quarter of 2011, respectively.

Revenues from advertising services were RMB243.0 million (US$38.7 million) for the third quarter of 2012, compared to RMB204.2 million and RMB220.5 million for the preceding quarter and the third quarter of 2011, respectively.

Revenues from e-mail, wireless value-added services and others ("E-mail, WVAS and others") were RMB61.9 million (US$9.9 million) for the third quarter of 2012, compared to RMB51.4 million and RMB31.3 million for the preceding quarter and the third quarter of 2011, respectively.


Gross Profit

Gross profit for the third quarter of 2012 was RMB1.4 billion (US$216.7 million), compared to RMB1.3 billion for both the preceding quarter and the third quarter of 2011.

The quarter-over-quarter increase in gross profit was primarily attributable to increased revenues from advertising services and NetEase's self-developed online games, which was partially offset by decreased revenue from Blizzard Entertainment's World of Warcraft. The quarter-over-quarter increase in gross profit from advertising services was primarily attributable to seasonality and our broadcast of the London Olympics. The increase in revenues from self-developed games was mainly attributable to Fantasy Westward Journey and Westward Journey Online II, as well as two new games: Kung Fu Master and Soul of the Fighter. The performances of Tianxia III and Ghost were steady in the third quarter of 2012.

The year-over-year increase in gross profit was primarily attributable to increased revenues from NetEase's self-developed games, partially offset by the decreased revenue from Blizzard Entertainment's World of Warcraft and increased advertising costs, including headcount-related costs and video content costs. The increase in revenues from NetEase's self-developed games was mainly from Fantasy Westward Journey, Ghost, Tianxia III, Westward Journey Online II, as well as Kung Fu Master and Soul of the Fighter.

Gross Profit (Loss) Margin

Gross profit margin for the online game business for the third quarter of 2012 was 74.2%, compared to 73.3% and 71.5% for the preceding quarter and the third quarter of 2011, respectively. The improvement in gross profit margin was primarily attributable to the increased revenue contribution from NetEase's self-developed games as a percentage of NetEase's total online game revenues.

Gross profit margin for the advertising business for the third quarter of 2012 was 36.2%, compared to 33.0% and 48.4% for the preceding quarter and the third quarter of 2011, respectively. The quarter-over-quarter increase in gross profit margin was primarily due to economies of scale as advertising revenue increased in the third quarter of 2012. The year-over-year decrease in gross profit margin was primarily due to increased headcount-related costs and content costs incurred for the London Olympics.

Gross profit margin for the E-mail, WVAS and others business for the third quarter of 2012 was 6.0%, compared to gross loss margins of 11.6% and 13.2% for the preceding quarter and the third quarter of 2011, respectively. The improvement in gross margin was mainly due to increased sales of NetEase's game-related accessories, such as limited edition packages of several online games.

Operating Expenses

Total operating expenses for the third quarter of 2012 were RMB537.5 million (US$85.5 million), compared to RMB437.7 million and RMB408.2 million for the preceding quarter and the third quarter of 2011, respectively. The quarter-over-quarter and year-over-year increases in operating expenses were mainly due to increased selling and marketing promotional activities, higher staff-related costs due to increased headcount and increased investments in the Company's product development pipeline. Major marketing and promotional activities in the third quarter of 2012 included: the summer vacation promotion of Fantasy Westward Journey, the 10th anniversary ceremony of Westward Journey Online II, unlimited beta testing for Soul of the Fighter, and promotions for Blizzard Entertainment's World of Warcraft: Mists of Pandaria.

Net Profit

Net profit for the third quarter of 2012 totaled RMB811.9 million (US$129.2 million), compared to RMB875.3 million and RMB825.8 million for the preceding quarter and the third quarter of 2011, respectively.

During the third quarter of 2012, the Company reported a net foreign exchange gain of RMB23.7 million (US$3.8 million), compared to a net foreign exchange loss of RMB36.0 million and RMB65.0 million for the preceding quarter and the third quarter of 2011, respectively. The quarter-over-quarter and year-over-year changes in foreign exchange gains or losses were mainly due to the translation gains or losses arising from the Company's Euro-denominated bank deposit balances as of the balance sheet date as the exchange rate of the Euro against the RMB fluctuated over the periods.

NetEase reported basic and diluted earnings per ADS of US$0.98 each for the third quarter of 2012. The Company reported basic and diluted earnings per ADS of US$1.06 each for the preceding quarter and reported basic and diluted earnings per ADS of US$1.01 and US$1.00, respectively, for the third quarter of 2011. Basic and diluted earnings per ADS for the third quarter of 2012 reflect a one-time accrued withholding tax, as described below, which has the effect of reducing such earnings per ADS.

Income Taxes

The Company recorded a net income tax charge of RMB194.8 million (US$31.0 million) for the third quarter of 2012, compared to RMB149.5 million and RMB140.5 million for the preceding quarter and the third quarter of 2011, respectively. The effective tax rate for the third quarter of 2012 was 19.9%, compared to 14.8% and 14.7% for the preceding quarter and the third quarter of 2011, respectively. The increase in net income tax charge was due to the occurrence of a one-time accrued withholding tax of RMB40.0 million associated with the offshore remittance of cash from China in anticipation of the declaration of a special cash dividend as described below.

The Company's various principal subsidiaries renewed their qualifications as High and New Technology Enterprises in 2011 and receive the preferential enterprise income tax rate of 15% from 2011 to 2013, subject to annual review by the relevant tax authorities in China.

Other Information

As of September 30, 2012, the Company's total cash and time deposits balance was RMB14.9 billion (US$2.4 billion), compared to RMB11.9 billion as of December 31, 2011. Cash flow generated from operating activities was RMB670.1 million (US$106.6 million) for the third quarter of 2012, compared to RMB880.9 million and RMB864.9 million for the preceding quarter and the third quarter of 2011, respectively.


Special Cash Dividend

The Company today announced that its board of directors declared a special cash dividend of US$0.04 per ordinary share, which is equivalent to US$1.00 per ADS (each ADS represents 25 ordinary shares). The special cash dividend is payable to shareholders of record as of January 15, 2013 and is expected to be paid on January 18, 2013. The board of directors declared this special cash dividend in order to give value back to shareholders, as the Company's revenues continue to grow, generating strong free cash flow from operations. The total amount of cash distributed is expected to be approximately US$131 million.

Share Repurchase Program

The Company today announced that its board of directors approved a new share repurchase program of up to US$100 million of the Company's outstanding ADSs for a period not to exceed 12 months. Under the terms of the approved program, NetEase may repurchase its issued and outstanding ADSs in open-market transactions on the NASDAQ Global Select Market. The timing and dollar amount of repurchase transactions will be subject to Securities and Exchange Commission ("SEC") Rule 10b-18 requirements. It is also expected that such repurchases will be effected pursuant to a plan in conformity with SEC Rule 10b5-1. NetEase plans to fund repurchases made under this program from available working capital.

** The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. Translations of amounts from RMB into US$ were calculated at the noon buying rate of US$1.00 = RMB6.2848 on the last trading day of September 2012 (September 28, 2012) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on September 28, 2012, or at any other certain date. The percentages stated are calculated based on RMB.


Continued at: http://www.knobias.com/story.htm?eid=3.1.58d54218872afccf72b7871df8f2617151ae5b93794f3e8dab7fd9cd884c6224

NTES 3Q earnings 11-14-12 AMC

NetEase to Report Third Quarter Financial Results on November 14, 2012

Wednesday, October 24, 2012 07:00ET

BEIJING, Oct. 24, 2012 /PRNewswire/ -- NetEase, Inc. (Nasdaq: NTES) today announced that it will report its financial results for the third quarter 2012 on Wednesday, November 14, 2012, after the close of the U.S. markets.

The earnings teleconference call with simultaneous webcast will take place at 8:00 p.m. Eastern Time on Wednesday, November 14, 2012 (Beijing/Hong Kong Time: 9:00 a.m., Thursday, November 15, 2012). NetEase's management will be on the call to discuss the quarterly results and answer questions.

Interested parties may participate in the conference call by dialing 1-877-941-1427 (international: 1-480-629-9664), 10-15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-800-406-7325 (international: 1-303-590-3030), and entering passcode 4569784#. The replay will be available through November 29, 2012.

This call will be webcast live and the replay will be available for 12 months. Both will be available on NetEase's Investor Relations website at http://corp.netease.com.

NTES:

China's NetEase says govt approves 'World of Warcraft' expansion

http://www.reuters.com/article/2012/09/05/netease-worldofwarcraft-idUSL4E8K52S520120905?type=companyNews&feedType=RSS&feedName=companyNews&rpc=43


SHANGHAI, Sept 5 (Reuters) - Chinese online games firm NetEase Inc has received government approval to launch the latest version of Activision Blizzard Inc's hit "World of Warcraft" in China, it said on Wednesday.

World of Warcraft, a hugely popular multiplayer role-playing game, is the most stable source of revenue for both NetEase and publisher Activision Blizzard.

The title's next expansion pack, "World of Warcraft: Mists of Pandaria," will be released on Sept. 25 in the United States.

The Chinese Ministry of Culture's online games content review website showed the latest sequel to World of Warcraft had received approval on Wednesday. ()

NetEase spokesman Liu Youcai confirmed the approval, but said he could not comment on the game's release date in China.

China is the world's largest Internet market with 540 million users. About 60 percent of all Internet users play online games making it a highly lucrative industry. NetEase competes with Tencent Holdings, Shanda Games and Changyou.com in China.