UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of February 2024
Commission File Number: 000-30666
NETEASE, INC.
NetEase Building, No. 599 Wangshang Road
Binjiang District, Hangzhou, 310052
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F x
Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Exhibits
Exhibit 99.1 - NetEase Announces Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Name: | William
Lei Ding |
| | Title: | Chief
Executive Officer |
| | | |
| Date: |
February 29, 2024 | | |
[Signature Page to 6-K Shell]
Exhibit 99.1
Contact for Media and Investors:
Email:
ir@service.netease.com
Tel:
(+86) 571-8985-3378
NetEase
Announces Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results
Hangzhou,
China, February 29, 2024 - 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, 2023.
Fourth
Quarter 2023 Financial Highlights
| ● | Net revenues were RMB27.1 billion (US$3.8 billion), an increase of 7.0% compared with the fourth quarter
of 2022. |
| ● | Games and related value-added services net revenues were RMB20.9 billion (US$2.9 billion), an increase
of 9.6% compared with the fourth quarter of 2022. |
| ● | Youdao net revenues were RMB1.5 billion (US$208.5 million), an increase of 1.8% compared with the fourth
quarter of 2022. |
| ● | Cloud Music net revenues were RMB2.0 billion (US$279.7 million), a decrease of 16.4% compared with the
fourth quarter of 2022. |
| ● | Innovative businesses and others net revenues were RMB2.8 billion (US$387.7 million), an increase of 12.9%
compared with the fourth quarter of 2022. |
| ● | Gross profit was RMB16.8 billion (US$2.4 billion), an increase of 27.0% compared with the fourth quarter
of 2022. |
| ● | Total operating expenses were RMB10.0 billion (US$1.4 billion), an increase of 13.0% compared with the
fourth quarter of 2022. |
| ● | Net income attributable to the Company’s shareholders was RMB6.6 billion (US$927.1 million). Non-GAAP
net income from continuing operations attributable to the Company’s shareholders was RMB7.4 billion (US$1.0 billion).[1] |
| ● | Basic net income per share was US$0.29 (US$1.44 per ADS). Non-GAAP basic net income from continuing operations
per share was US$0.32 (US$1.62 per ADS).[1] |
Fourth
Quarter 2023 and Early 2024 Operational Highlights
| ● | Leading franchises, such as Fantasy Westward Journey and Westward Journey Online, maintained
enduring user appeal, supported by periodic new content introductions. |
| ● | Eggy Party’s broad popularity has engaged over 500 million cumulative registered players
since its launch in 2022 and made a significant breakthrough of 40 million daily active users during the Lunar New Year. |
| ● | Justice franchises reached a new milestone of 100 million active users with densely packed content
and widely embraced in-game events for players. |
| ● | Racing Master achieved superb performances in Hong Kong, Macau and Taiwan, including topping the
local iOS download and grossing charts in Taiwan within the first week of its launch. |
| ● | Cloud Music considerably enhanced its music-centric monetization and further improved profitability, while
continuing to cultivate its music community and introduce new premium content and features. |
| ● | Youdao further improved its profitability and achieved record-high operating cash flow, driven by the
robust performance of digital content services and online marketing services. |
“2023 proved to be another landmark year
for NetEase Games with continuous cross-category innovations that expand and diversify our robust game portfolio,” said Mr. William
Ding, Chief Executive Officer and Director of NetEase. “The success of games like Eggy Party and our heralded new titles,
such as Racing Master and Dunk City Dynasty, highlights our ability to bring players dynamic and original products in multiple
genres. At the same time, we have maintained a strategic advantage with our MMO roots, propelling Justice mobile game to transcend
the boundaries of conventional MMO gaming.
“Alongside our business’s momentum,
we have assumed increasing social responsibility. By integrating a ‘Minors Mode’ across our domestic game lineup, we have
strengthened our existing anti-addiction system and continue to steer the gaming ecosystem toward a healthier trajectory with innovative
products and technology.
[1]
As used in this announcement, non-GAAP net income from continuing operations attributable to the Company’s shareholders
and non-GAAP basic and diluted net income from continuing operations 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.
“Besides
games, our diverse business segments, such as Cloud Music and Youdao, remain on course, consistently delivering premium content. Throughout
the NetEase family, we prioritize the creation of novel and high-quality products and services that grow our global appeal and elevate
user experiences while pushing innovation forward,” Mr. Ding concluded.
Fourth Quarter 2023 Financial Results
Net
Revenues
Net
revenues for the fourth quarter of 2023 were RMB27.1 billion (US$3.8 billion), compared with RMB27.3 billion and RMB25.4 billion for the
preceding quarter and the fourth quarter of 2022, respectively.
Net
revenues from games and related value-added services were RMB20.9 billion (US$2.9 billion) for the fourth quarter of 2023, compared
with RMB21.8 billion and RMB19.1 billion for the preceding quarter and the fourth quarter of 2022, respectively. Net revenues from the
operation of online games accounted for approximately 93.4% of the segment’s net revenues for the fourth quarter of 2023, compared
with 93.7% and 91.8% for the preceding quarter and the fourth quarter of 2022, respectively. Net revenues from mobile games accounted
for approximately 76.7% of net revenues from the operation of online games for the fourth quarter of 2023, compared with 77.6% and 66.4%
for the preceding quarter and the fourth quarter of 2022, respectively.
Net
revenues from Youdao were RMB1.5 billion (US$208.5 million) for the fourth quarter of 2023, compared with RMB1.5 billion each for
the preceding quarter and the fourth quarter of 2022.
Net revenues from Cloud Music were RMB2.0 billion
(US$279.7 million) for the fourth quarter of 2023, compared with RMB2.0 billion and RMB2.4 billion for the preceding quarter and the fourth
quarter of 2022, respectively.
Net
revenues from innovative businesses and others were RMB2.8 billion (US$387.7 million) for the fourth quarter of 2023, compared
with RMB2.0 billion and RMB2.4 billion for the preceding quarter and the fourth quarter of 2022, respectively.
Gross Profit
Gross profit for the fourth quarter of 2023 was
RMB16.8 billion (US$2.4 billion), compared with RMB17.0 billion and RMB13.2 billion for the preceding quarter and the fourth quarter of
2022, respectively.
The
slight quarter-over-quarter decrease in games and related value-added services’ gross profit was primarily due to decreased
net revenues from online games. The year-over-year increase was primarily due to increased net revenues from online games such as Justice
mobile game, which was launched in 2023, and Eggy Party, offset in part by the termination of certain licensed games.
The
quarter-over-quarter decrease in Youdao’s gross profit was primarily due to decreased revenue contribution from its learning services.
The slight year-over-year decrease was primarily due to reduced revenue contribution from its smart devices, which was partially offset
by increased revenue contribution from its online marketing services.
The
quarter-over-quarter and year-over-year increases in Cloud Music’s gross profit primarily resulted from increased net revenues
from sales of membership subscriptions and continued improvement in cost control measures.
The quarter-over-quarter and year-over-year increases
in innovative businesses and others’ gross profit were primarily due to increased gross profit contribution from Yanxuan and advertising
services.
Gross Profit Margin
Gross
profit margin for games and related value-added services for the fourth quarter of 2023 was 69.5%, compared with 69.0% and 59.1% for the
preceding quarter and the fourth quarter of 2022, respectively. The slight quarter-over-quarter increase was primarily attributable
to changes in the revenue contribution from different channels. The year-over-year increase was mainly attributable to a higher proportion
of net revenues contributed by NetEase’s self-developed games.
Gross
profit margin for Youdao for the fourth quarter of 2023 was 49.9%, compared with 55.9% and 53.3% for the preceding quarter and
the fourth quarter of 2022, respectively. The quarter-over-quarter and year-over-year decreases were mainly due to decreased revenue contribution
from its learning services and decreased gross profit margin from its smart devices.
Gross
profit margin for Cloud Music for the fourth quarter of 2023 was 30.3%, compared with 27.2% and 17.8% for the preceding quarter
and the fourth quarter of 2022, respectively. The quarter-over-quarter and year-over-year improvements were mainly due to the factors
enumerated above.
Gross
profit margin for innovative businesses and others for the fourth quarter of 2023 was 34.4%, compared with 27.3% and 31.5% for
the preceding quarter and the fourth quarter of 2022, respectively. The quarter-over-quarter increase was mainly due to improved gross
profit margin from advertising services. The year-over-year increase was mainly due to improved gross profit margin from Yanxuan and advertising
services.
Operating Expenses
Total
operating expenses for the fourth quarter of 2023 were RMB10.0 billion (US$1.4 billion), compared with RMB9.4 billion and RMB8.8 billion
for the preceding quarter and the fourth quarter of 2022, respectively. The quarter-over-quarter and year-over-year increases were
mainly due to increased marketing expenditures and research and development investments associated with games and related value-added
services.
Other Income/(Expenses)
Other
income/(expenses) consisted of investment (loss)/income, interest income, exchange (losses)/ gains and others. The quarter-over-quarter
decrease was mainly due to a net investment loss resulting from fair value changes of equity investments with readily determinable fair
value in the fourth quarter of 2023, compared with a net investment income recorded in the prior quarter, as well as a higher net
exchange loss arising from the fluctuation of the exchange rate of the U.S. dollar against the RMB in the fourth quarter of 2023. The
year-over-year increase was primarily attributable to higher interest income resulting from the improved net cash position.
Income Tax
The Company recorded a net income tax charge of
RMB1.1 billion (US$150.5 million) for the fourth quarter of 2023, compared with RMB1.3 billion and RMB966.6 million for the preceding
quarter and the fourth quarter of 2022, respectively. The effective tax rate for the fourth quarter of 2023 was 13.8%, compared with 14.2%
and 20.2% for the preceding quarter and the fourth quarter of 2022, 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 Income
Net income attributable to the Company’s
shareholders totaled RMB6.6 billion (US$927.1 million) for the fourth quarter of 2023, compared with RMB7.8 billion and RMB4.0 billion
for the preceding quarter and the fourth quarter of 2022, respectively.
NetEase reported basic net income of US$0.29 per
share (US$1.44 per ADS) for the fourth quarter of 2023, compared with US$0.34 per share (US$1.72 per ADS) and US$0.17 per share (US$0.86
per ADS) for the preceding quarter and the fourth quarter of 2022, respectively.
Non-GAAP
net income from continuing operations attributable to the Company’s shareholders totaled RMB7.4 billion (US$1.0 billion) for the
fourth quarter of 2023, compared with RMB8.6 billion and RMB4.8 billion for the preceding quarter and the fourth quarter of 2022,
respectively.
NetEase reported non-GAAP basic net income from
continuing operations of US$0.32 per share (US$1.62 per ADS) for the fourth quarter of 2023, compared with US$0.38 per share (US$1.89
per ADS) and US$0.21 per share (US$1.05 per ADS) for the preceding quarter and the fourth quarter of 2022, respectively.
Fiscal Year 2023 Financial Results
Net Revenues
Net
revenues for fiscal year 2023 were RMB103.5 billion (US$14.6 billion), compared with RMB96.5 billion for fiscal year 2022.
Net
revenues from games and related value-added services were RMB81.6 billion (US$11.5 billion) for fiscal year 2023, compared with
RMB74.6 billion for fiscal year 2022. Net revenues from the operation of online games accounted for approximately 92.9% of the segment’s
total net revenues for fiscal year 2023, compared with 92.5% for fiscal year 2022. Net revenues from mobile games accounted for approximately
75.2% of net revenues from the operation of online games for fiscal year 2023, compared with 67.0% for fiscal year 2022. The higher percentage
contribution from mobile games was mainly due to a higher proportion of net revenues generated by mobile games such as Eggy Party
and Justice mobile game.
Net revenues from Youdao were RMB5.4 billion (US$759.1
million) for fiscal year 2023, compared with RMB5.0 billion for fiscal year 2022.
Net revenues from Cloud Music were RMB7.9 billion
(US$1.1 billion) for fiscal year 2023, compared with RMB9.0 billion for fiscal year 2022.
Net
revenues from innovative businesses and others were RMB8.6 billion (US$1.2 billion) for fiscal year 2023, compared with RMB7.9
billion for fiscal year 2022.
Gross Profit
Gross
profit for fiscal year 2023 was RMB63.1 billion (US$8.9 billion), compared with RMB52.8 billion for fiscal year 2022.
The
year-over-year increase in games and related value-added services gross profit was primarily due to increased net revenues from
the operation of online games, mainly from certain newly launched mobile games.
The
year-over-year increase in Youdao gross profit was mainly due to increased revenue contribution from its online marketing services
and learning services.
The year-over-year increase in Cloud Music gross
profit was primarily attributable to increased net revenues from sales of membership subscriptions and continued improvement in cost control
measures.
The
year-over-year increase in innovative businesses and others gross profit was primarily due to increased gross profits from Yanxuan
and several other businesses included within the segment.
Operating Expenses
Total
operating expenses for fiscal year 2023 were RMB35.4 billion (US$5.0 billion), compared with RMB33.1 billion for fiscal year 2022.
The year-over-year increase was primarily due to higher research and development investments and marketing expenditures for games and
related value-added services.
Other Income/(Expenses)
The
year-over-year increase was mainly due to higher interest income resulting from the Company’s increased net cash position,
and investment income arising from fair value changes of equity investments with readily determinable fair value. The foregoing was partially
offset by the fact that the Company recorded a net exchange loss in fiscal year 2023, compared to a net exchange gain in fiscal year 2022,
mainly resulting from the fluctuation of the exchange rate of the U.S. dollar against the RMB during the years.
Income Taxes
The
Company recorded a net income tax charge of RMB4.7 billion (US$661.9 million) for fiscal year 2023, compared with RMB5.0 billion
for fiscal year 2022. The effective tax rate was 13.8% for fiscal year 2023, compared with 20.7% for fiscal year 2022. The lower effective
tax rate for fiscal year 2023 was partially due to tax benefits recognized in the year.
Net Income and Non-GAAP Net Income
Net income attributable to the Company’s
shareholders for fiscal year 2023 totaled RMB29.4 billion (US$4.1 billion), compared with RMB20.3 billion for fiscal year 2022.
NetEase
reported basic net income of US$1.29 per share (US$6.44 per ADS) for fiscal year 2023, compared with US$0.88 per share (US$4.39
per ADS) for fiscal year 2022.
Non-GAAP
net income from continuing operations attributable to the Company’s shareholders for fiscal year 2023 totaled RMB32.6 billion
(US$4.6 billion), compared with RMB22.8 billion for fiscal year 2022.
NetEase
reported non-GAAP basic net income from continuing operations of US$1.43 per share (US$7.14 per ADS) for fiscal year 2023, compared
with US$0.98 per share (US$4.92 per ADS) for fiscal year 2022.
Other Financial Information
As
of December 31, 2023, 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 RMB110.9 billion (US$15.6
billion), compared with RMB95.6 billion as of December 31, 2022. Net cash provided by operating activities was RMB35.3 billion (US$5.0
billion) for fiscal year 2023, compared with RMB27.7 billion for fiscal year 2022.
Quarterly
Dividend
The
board of directors has approved a dividend of US$0.21597 per share (US$1.07985 per ADS) for the fourth quarter of 2023 to holders
of ordinary shares and holders of ADSs as of the close of business on March 14, 2024, 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 14, 2024 (Beijing/ Hong Kong Time). The payment
date is expected to be March 25, 2024 for holders of ordinary shares, and on or around March 28, 2024 for holders of ADSs.
NetEase
paid a dividend of US$0.0990 per share (US$0.4950 per ADS) for the third quarter of 2023 in December 2023.
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 Program
On
November 17, 2022, the Company announced that its board of directors had approved a share repurchase program of up to US$5.0
billion of the Company’s ADSs and ordinary shares in open market transactions. This share repurchase program commenced on January 10,
2023 and will be in effect for a period not to exceed 36 months from such date. As of December 31, 2023, approximately 7.2 million
ADSs had been repurchased under this program for a total cost of US$644.1 million.
The extent to which NetEase repurchases its ADSs
and its ordinary shares depends upon a variety of factors, including market conditions. These programs may be suspended or discontinued
at any time.
**
The United States dollar (US$) 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. New York Time on Thursday, February 29,
2024 (Beijing/ Hong Kong Time: 8:00 p.m., Thursday, February 29, 2024). 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: 10036635, 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: 10036635. The replay will be
available through March 6, 2024.
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 company with industry-leading technology, and
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.
NetEase’s
market-leading ESG initiatives are among the most recognized in the global media and entertainment industry, earning it inclusion in
the 2022 Dow Jones Sustainability World Index, 2022 Dow Jones Sustainability Emerging Markets Index and 2023 Bloomberg Gender-Equality
Index, as well as receiving an “A” rating from MSCI. For more information, please visit: http://ir.netease.com/.
Forward Looking Statements
This
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 government regulation that could adversely affect
the industry and geographical markets in which 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 economic uncertainty and capital market disruption; risks related to the expansion of NetEase’s businesses and operations internationally;
risks associated with cybersecurity threats or incidents; and the risk that fluctuations in the value of the Renminbi with respect to
other currencies 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 from continuing operations attributable to the Company’s shareholders and non-GAAP basic and
diluted net income from continuing operations 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 from continuing operations attributable to the Company’s shareholders as net income from continuing
operations attributable to the Company’s shareholders excluding share-based compensation expenses. Non-GAAP net income from continuing
operations 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 provide 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 from continuing operations 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 from continuing operations
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 from continuing operations 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.
NETEASE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| | |
December 31, | | |
December 31, | | |
December 31, | |
| | |
2022 | | |
2023 | | |
2023 | |
| | |
RMB | | |
RMB | | |
USD (Note 1) | |
| Assets | |
| | | |
| | | |
| | |
| Current assets: | |
| | | |
| | | |
| | |
| Cash and cash equivalents | |
| 24,889,000 | | |
| 21,428,902 | | |
| 3,018,198 | |
| Time deposits | |
| 84,947,679 | | |
| 100,856,034 | | |
| 14,205,275 | |
| Restricted cash | |
| 2,699,055 | | |
| 2,777,206 | | |
| 391,161 | |
| Accounts receivable, net | |
| 5,002,872 | | |
| 6,422,417 | | |
| 904,579 | |
| Inventories | |
| 993,636 | | |
| 695,374 | | |
| 97,941 | |
| Prepayments and other current assets, net | |
| 5,448,284 | | |
| 6,076,595 | | |
| 855,871 | |
| Short-term investments | |
| 7,622,673 | | |
| 4,436,057 | | |
| 624,806 | |
| Total current assets | |
| 131,603,199 | | |
| 142,692,585 | | |
| 20,097,831 | |
| | |
| | | |
| | | |
| | |
| Non-current assets: | |
| | | |
| | | |
| | |
| Property, equipment and software, net | |
| 6,342,330 | | |
| 8,075,044 | | |
| 1,137,346 | |
| Land use rights, net | |
| 4,121,767 | | |
| 4,075,143 | | |
| 573,972 | |
| Deferred tax assets | |
| 1,480,789 | | |
| 1,560,088 | | |
| 219,734 | |
| Time deposits | |
| 2,973,840 | | |
| 1,050,000 | | |
| 147,889 | |
| Restricted cash | |
| 270 | | |
| 550 | | |
| 77 | |
| Other long-term assets | |
| 26,238,790 | | |
| 28,471,568 | | |
| 4,010,136 | |
| Total non-current assets | |
| 41,157,786 | | |
| 43,232,393 | | |
| 6,089,154 | |
| Total assets | |
| 172,760,985 | | |
| 185,924,978 | | |
| 26,186,985 | |
| | |
| | | |
| | | |
| | |
| Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity | |
| | | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | | |
| | |
| Accounts payable | |
| 1,507,141 | | |
| 881,016 | | |
| 124,089 | |
| Salary and welfare payables | |
| 4,732,941 | | |
| 4,857,206 | | |
| 684,123 | |
| Taxes payable | |
| 2,813,096 | | |
| 2,571,534 | | |
| 362,193 | |
| Short-term loans | |
| 23,875,704 | | |
| 19,240,163 | | |
| 2,709,920 | |
| Contract liabilities | |
| 12,518,890 | | |
| 13,362,166 | | |
| 1,882,022 | |
| Accrued liabilities and other payables | |
| 11,381,075 | | |
| 12,930,399 | | |
| 1,821,209 | |
| Total current liabilities | |
| 56,828,847 | | |
| 53,842,484 | | |
| 7,583,556 | |
| | |
| | | |
| | | |
| | |
| Non-current liabilities: | |
| | | |
| | | |
| | |
| Deferred tax liabilities | |
| 2,126,120 | | |
| 2,299,303 | | |
| 323,850 | |
| Long-term loans | |
| 3,654,964 | | |
| 427,997 | | |
| 60,282 | |
| Other long-term liabilities | |
| 1,277,574 | | |
| 1,271,113 | | |
| 179,032 | |
| Total non-current liabilities | |
| 7,058,658 | | |
| 3,998,413 | | |
| 563,164 | |
| Total liabilities | |
| 63,887,505 | | |
| 57,840,897 | | |
| 8,146,720 | |
| | |
| | | |
| | | |
| | |
| Redeemable noncontrolling interests | |
| 136,440 | | |
| 115,759 | | |
| 16,304 | |
| | |
| | | |
| | | |
| | |
| NetEase, Inc.’s shareholders’ equity | |
| 104,731,317 | | |
| 124,285,776 | | |
| 17,505,285 | |
| Noncontrolling interests | |
| 4,005,723 | | |
| 3,682,546 | | |
| 518,676 | |
| Total equity | |
| 108,737,040 | | |
| 127,968,322 | | |
| 18,023,961 | |
| | |
| | | |
| | | |
| | |
| Total liabilities, redeemable noncontrolling interests and shareholders’ equity | |
| 172,760,985 | | |
| 185,924,978 | | |
| 26,186,985 | |
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, | |
| | |
2022 | | |
2023 | | |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2023 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD (Note 1) | | |
RMB | | |
RMB | | |
USD (Note 1) | |
| Net revenues | |
| 25,354,129 | | |
| 27,270,406 | | |
| 27,140,165 | | |
| 3,822,612 | | |
| 96,495,809 | | |
| 103,468,159 | | |
| 14,573,185 | |
| Cost
of revenues | |
| (12,109,765 | ) | |
| (10,304,106 | ) | |
| (10,315,030 | ) | |
| (1,452,842 | ) | |
| (43,729,683 | ) | |
| (40,404,765 | ) | |
| (5,690,892 | ) |
| Gross
profit | |
| 13,244,364 | | |
| 16,966,300 | | |
| 16,825,135 | | |
| 2,369,770 | | |
| 52,766,126 | | |
| 63,063,394 | | |
| 8,882,293 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Selling and marketing expenses | |
| (3,417,909 | ) | |
| (3,567,153 | ) | |
| (4,225,556 | ) | |
| (595,157 | ) | |
| (13,402,721 | ) | |
| (13,969,460 | ) | |
| (1,967,557 | ) |
| General and administrative expenses | |
| (1,302,932 | ) | |
| (1,494,186 | ) | |
| (1,251,869 | ) | |
| (176,322 | ) | |
| (4,695,798 | ) | |
| (4,899,880 | ) | |
| (690,134 | ) |
| Research and development
expenses | |
| (4,090,076 | ) | |
| (4,347,052 | ) | |
| (4,479,219 | ) | |
| (630,885 | ) | |
| (15,039,014 | ) | |
| (16,484,910 | ) | |
| (2,321,851 | ) |
| Total operating expenses | |
| (8,810,917 | ) | |
| (9,408,391 | ) | |
| (9,956,644 | ) | |
| (1,402,364 | ) | |
| (33,137,533 | ) | |
| (35,354,250 | ) | |
| (4,979,542 | ) |
| Operating
profit | |
| 4,433,447 | | |
| 7,557,909 | | |
| 6,868,491 | | |
| 967,406 | | |
| 19,628,593 | | |
| 27,709,144 | | |
| 3,902,751 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Other income/(expenses): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Investment (loss)/income, net | |
| (37,102 | ) | |
| 556,603 | | |
| (8,940 | ) | |
| (1,259 | ) | |
| 53,976 | | |
| 1,306,722 | | |
| 184,048 | |
| Interest income, net | |
| 629,290 | | |
| 1,147,227 | | |
| 1,261,583 | | |
| 177,690 | | |
| 2,149,673 | | |
| 4,120,418 | | |
| 580,349 | |
| Exchange (losses)/gains , net | |
| (594,241 | ) | |
| (400,483 | ) | |
| (810,904 | ) | |
| (114,213 | ) | |
| 1,571,207 | | |
| (132,999 | ) | |
| (18,733 | ) |
| Other, net | |
| 344,875 | | |
| 240,024 | | |
| 434,759 | | |
| 61,235 | | |
| 846,815 | | |
| 1,053,642 | | |
| 148,402 | |
| Income before tax | |
| 4,776,269 | | |
| 9,101,280 | | |
| 7,744,989 | | |
| 1,090,859 | | |
| 24,250,264 | | |
| 34,056,927 | | |
| 4,796,817 | |
| Income tax | |
| (966,574 | ) | |
| (1,290,398 | ) | |
| (1,068,657 | ) | |
| (150,517 | ) | |
| (5,031,838 | ) | |
| (4,699,704 | ) | |
| (661,939 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income from continuing
operations | |
| 3,809,695 | | |
| 7,810,882 | | |
| 6,676,332 | | |
| 940,342 | | |
| 19,218,426 | | |
| 29,357,223 | | |
| 4,134,878 | |
| Net
income from discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| 624,864 | | |
| - | | |
| - | |
| Net income | |
| 3,809,695 | | |
| 7,810,882 | | |
| 6,676,332 | | |
| 940,342 | | |
| 19,843,290 | | |
| 29,357,223 | | |
| 4,134,878 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Accretion
of redeemable noncontrolling interests | |
| (710 | ) | |
| (895 | ) | |
| (966 | ) | |
| (136 | ) | |
| (2,978 | ) | |
| (3,589 | ) | |
| (506 | ) |
| Net
loss/(income) attributable to noncontrolling interests | |
| 143,752 | | |
| 26,901 | | |
| (93,103 | ) | |
| (13,113 | ) | |
| 497,288 | | |
| 62,918 | | |
| 8,862 | |
| Net
income attributable to the Company’s shareholders | |
| 3,952,737 | | |
| 7,836,888 | | |
| 6,582,263 | | |
| 927,093 | | |
| 20,337,600 | | |
| 29,416,552 | | |
| 4,143,234 | |
| Including: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| -Net
income from continuing operations attributable to the Company’s shareholders | |
| 3,952,737 | | |
| 7,836,888 | | |
| 6,582,263 | | |
| 927,093 | | |
| 19,712,736 | | |
| 29,416,552 | | |
| 4,143,234 | |
| -Net
income from discontinued operations attributable to the Company’s shareholders | |
| - | | |
| - | | |
| - | | |
| - | | |
| 624,864 | | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic net income per
share * | |
| 1.22 | | |
| 2.44 | | |
| 2.05 | | |
| 0.29 | | |
| 6.23 | | |
| 9.15 | | |
| 1.29 | |
| -Continuing operations | |
| 1.22 | | |
| 2.44 | | |
| 2.05 | | |
| 0.29 | | |
| 6.04 | | |
| 9.15 | | |
| 1.29 | |
| -Discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| 0.19 | | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic net income per
ADS * | |
| 6.10 | | |
| 12.19 | | |
| 10.25 | | |
| 1.44 | | |
| 31.16 | | |
| 45.73 | | |
| 6.44 | |
| -Continuing operations | |
| 6.10 | | |
| 12.19 | | |
| 10.25 | | |
| 1.44 | | |
| 30.20 | | |
| 45.73 | | |
| 6.44 | |
| -Discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| 0.96 | | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Diluted net income per
share * | |
| 1.21 | | |
| 2.41 | | |
| 2.02 | | |
| 0.28 | | |
| 6.17 | | |
| 9.05 | | |
| 1.27 | |
| -Continuing operations | |
| 1.21 | | |
| 2.41 | | |
| 2.02 | | |
| 0.28 | | |
| 5.98 | | |
| 9.05 | | |
| 1.27 | |
| -Discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| 0.19 | | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Diluted net income per
ADS * | |
| 6.05 | | |
| 12.06 | | |
| 10.12 | | |
| 1.42 | | |
| 30.85 | | |
| 45.23 | | |
| 6.37 | |
| -Continuing operations | |
| 6.05 | | |
| 12.06 | | |
| 10.12 | | |
| 1.42 | | |
| 29.90 | | |
| 45.23 | | |
| 6.37 | |
| -Discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| 0.95 | | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted
average number of ordinary shares used in calculating net income per share * | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 3,239,282 | | |
| 3,213,834 | | |
| 3,212,328 | | |
| 3,212,328 | | |
| 3,263,455 | | |
| 3,216,475 | | |
| 3,216,475 | |
| Diluted | |
| 3,269,082 | | |
| 3,249,649 | | |
| 3,253,166 | | |
| 3,253,166 | | |
| 3,296,014 | | |
| 3,252,029 | | |
| 3,252,029 | |
* 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, | |
| | |
2022 | | |
2023 | | |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2023 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD
(Note 1) | | |
RMB | | |
RMB | | |
USD
(Note 1) | |
| Cash flows
from operating activities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net
income | |
| 3,809,695 | | |
| 7,810,882 | | |
| 6,676,332 | | |
| 940,342 | | |
| 19,843,290 | | |
| 29,357,223 | | |
| 4,134,878 | |
| Net income from
discontinued operations | |
| - | | |
| - | | |
| - | | |
| - | | |
| (624,864 | ) | |
| - | | |
| - | |
| Adjustments
to reconcile net income to net cash provided by operating activities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Depreciation and
amortization | |
| 769,141 | | |
| 651,856 | | |
| 659,772 | | |
| 92,927 | | |
| 2,858,209 | | |
| 3,055,260 | | |
| 430,324 | |
| Fair value changes
of equity security investments | |
| 148,156 | | |
| (382,132 | ) | |
| 151,571 | | |
| 21,348 | | |
| 3,104,336 | | |
| (535,316 | ) | |
| (75,398 | ) |
| Impairment
losses on investments and other long-term assets | |
| 45,401 | | |
| 280,641 | | |
| 140,648 | | |
| 19,810 | | |
| 300,249 | | |
| 469,159 | | |
| 66,080 | |
| Fair value changes
of short-term investments | |
| (23,364 | ) | |
| (72,875 | ) | |
| (106,532 | ) | |
| (15,005 | ) | |
| (342,642 | ) | |
| (414,207 | ) | |
| (58,340 | ) |
| Share-based compensation
cost | |
| 876,560 | | |
| 819,548 | | |
| 812,987 | | |
| 114,507 | | |
| 3,174,160 | | |
| 3,242,810 | | |
| 456,740 | |
| Allowance for expected
credit losses | |
| 6,615 | | |
| 22,386 | | |
| 9,500 | | |
| 1,338 | | |
| 61,393 | | |
| 61,146 | | |
| 8,612 | |
| Losses on disposal
of property, equipment and software | |
| 1,166 | | |
| 2,649 | | |
| 3,385 | | |
| 477 | | |
| 3,620 | | |
| 5,676 | | |
| 799 | |
| Unrealized exchange
losses/(gains) | |
| 589,665 | | |
| 362,213 | | |
| 838,056 | | |
| 118,038 | | |
| (1,604,260 | ) | |
| 119,935 | | |
| 16,893 | |
| Gains
on disposal of long-term investments, business and subsidiaries | |
| (62,922 | ) | |
| (3,197 | ) | |
| (38,437 | ) | |
| (5,414 | ) | |
| (1,791,355 | ) | |
| (63,784 | ) | |
| (8,984 | ) |
| Deferred income
taxes | |
| 578,317 | | |
| (305,703 | ) | |
| 193,854 | | |
| 27,304 | | |
| 489,670 | | |
| 131,437 | | |
| 18,513 | |
| Share
of results on equity method investees and revaluation results from previously held equity interest | |
| (54,746 | ) | |
| (160,042 | ) | |
| (88,805 | ) | |
| (12,508 | ) | |
| (1,259,941 | ) | |
| (473,947 | ) | |
| (66,754 | ) |
| Changes in operating
assets and liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Accounts receivable | |
| 224,197 | | |
| (1,177,732 | ) | |
| 53,089 | | |
| 7,477 | | |
| 554,340 | | |
| (1,470,374 | ) | |
| (207,098 | ) |
| Inventories | |
| (60,695 | ) | |
| 84,970 | | |
| 25,054 | | |
| 3,529 | | |
| (27,613 | ) | |
| 296,764 | | |
| 41,798 | |
| Prepayments and
other assets | |
| 1,095,882 | | |
| (573,631 | ) | |
| 542,593 | | |
| 76,423 | | |
| 731,100 | | |
| 87,556 | | |
| 12,332 | |
| Accounts payable | |
| 576,021 | | |
| 150,868 | | |
| 18,443 | | |
| 2,598 | | |
| 447,666 | | |
| (559,419 | ) | |
| (78,792 | ) |
| Salary and welfare
payables | |
| 1,965,624 | | |
| (588,217 | ) | |
| 1,992,931 | | |
| 280,698 | | |
| 424,513 | | |
| (62,917 | ) | |
| (8,862 | ) |
| Taxes payable | |
| (928,071 | ) | |
| 515,087 | | |
| (500,172 | ) | |
| (70,448 | ) | |
| (917,614 | ) | |
| (244,261 | ) | |
| (34,403 | ) |
| Contract liabilities | |
| (1,396,523 | ) | |
| 1,560,628 | | |
| (847,562 | ) | |
| (119,377 | ) | |
| 385,396 | | |
| 1,161,861 | | |
| 163,645 | |
| Accrued
liabilities and other payables | |
| 849,094 | | |
| 845,721 | | |
| 1,271,572 | | |
| 179,098 | | |
| 1,899,580 | | |
| 1,166,673 | | |
| 164,323 | |
| Net
cash provided by operating activities | |
| 9,009,213 | | |
| 9,843,920 | | |
| 11,808,279 | | |
| 1,663,162 | | |
| 27,709,233 | | |
| 35,331,275 | | |
| 4,976,306 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cash flows
from investing activities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Purchase of property,
equipment and software | |
| (348,821 | ) | |
| (643,144 | ) | |
| (484,927 | ) | |
| (68,300 | ) | |
| (2,100,264 | ) | |
| (2,301,554 | ) | |
| (324,167 | ) |
| Proceeds from sale
of property, equipment and software | |
| 2,257 | | |
| 3,101 | | |
| 405 | | |
| 57 | | |
| 41,467 | | |
| 10,302 | | |
| 1,451 | |
| Purchase
of intangible assets, content and licensed copyrights | |
| (161,987 | ) | |
| (742,523 | ) | |
| (121,797 | ) | |
| (17,155 | ) | |
| (543,220 | ) | |
| (1,974,323 | ) | |
| (278,078 | ) |
| Net
change in short-term investments with terms of three months or less | |
| (931,790 | ) | |
| (1,993,921 | ) | |
| (690,628 | ) | |
| (97,273 | ) | |
| 776,357 | | |
| (1,777,687 | ) | |
| (250,382 | ) |
| Purchase
of short-term investments with terms over three months | |
| (4,700,000 | ) | |
| - | | |
| - | | |
| - | | |
| (5,950,000 | ) | |
| - | | |
| - | |
| Proceeds
from maturities of short-term investments with terms over three months | |
| 6,966,682 | | |
| 376,950 | | |
| 4,897,291 | | |
| 689,769 | | |
| 10,175,160 | | |
| 5,378,510 | | |
| 757,547 | |
| Investment
in long-term investments and acquisition of subsidiaries | |
| (1,694,928 | ) | |
| (417,448 | ) | |
| (914,962 | ) | |
| (128,870 | ) | |
| (5,129,680 | ) | |
| (2,831,686 | ) | |
| (398,834 | ) |
| Proceeds
from disposal of long-term investments, businesses and subsidiaries | |
| 92,795 | | |
| 20,898 | | |
| 73,855 | | |
| 10,402 | | |
| 2,411,070 | | |
| 152,564 | | |
| 21,488 | |
| Placement/rollover
of matured time deposits | |
| (22,975,014 | ) | |
| (30,831,994 | ) | |
| (46,666,670 | ) | |
| (6,572,863 | ) | |
| (98,973,884 | ) | |
| (124,693,598 | ) | |
| (17,562,726 | ) |
| Proceeds from maturities
of time deposits | |
| 27,676,529 | | |
| 33,893,436 | | |
| 33,273,393 | | |
| 4,686,459 | | |
| 92,247,046 | | |
| 111,417,969 | | |
| 15,692,893 | |
| Change
in other long-term assets | |
| (61,552 | ) | |
| (181,263 | ) | |
| (90,635 | ) | |
| (12,766 | ) | |
| (323,779 | ) | |
| (423,928 | ) | |
| (59,709 | ) |
| Net
cash provided by/(used in) investing activities | |
| 3,864,171 | | |
| (515,908 | ) | |
| (10,724,675 | ) | |
| (1,510,540 | ) | |
| (7,369,727 | ) | |
| (17,043,431 | ) | |
| (2,400,517 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cash flows
from financing activities: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net changes from
loans with terms of three months or less | |
| (3,753,493 | ) | |
| (7,501,788 | ) | |
| 6,179,979 | | |
| 870,432 | | |
| (1,274,043 | ) | |
| (13,654,704 | ) | |
| (1,923,225 | ) |
| Proceed of loans
with terms over three months | |
| 2,765,086 | | |
| 7,607,060 | | |
| 2,511,000 | | |
| 353,667 | | |
| 6,392,695 | | |
| 13,569,160 | | |
| 1,911,176 | |
| Payment of loans
with terms over three months | |
| (191,158 | ) | |
| (4,250,550 | ) | |
| (695,000 | ) | |
| (97,889 | ) | |
| (273,639 | ) | |
| (8,219,472 | ) | |
| (1,157,688 | ) |
| Net
amounts received/(paid) related to capital contribution from or repurchase of noncontrolling interests shareholders | |
| 23,616 | | |
| 11,573 | | |
| 28,009 | | |
| 3,945 | | |
| (30,921 | ) | |
| 86,159 | | |
| 12,136 | |
| Cash
paid for repurchase of NetEase’s ADSs/purchase of subsidiaries’ ADSs and shares | |
| (3,007,765 | ) | |
| (296,495 | ) | |
| (625,832 | ) | |
| (88,147 | ) | |
| (8,328,124 | ) | |
| (5,234,294 | ) | |
| (737,235 | ) |
| Dividends
paid to NetEase’s shareholders | |
| (2,018,984 | ) | |
| (2,423,355 | ) | |
| (2,258,892 | ) | |
| (318,158 | ) | |
| (6,723,667 | ) | |
| (8,013,903 | ) | |
| (1,128,735 | ) |
| Net
cash (used in)/provided by financing activities | |
| (6,182,698 | ) | |
| (6,853,555 | ) | |
| 5,139,264 | | |
| 723,850 | | |
| (10,237,699 | ) | |
| (21,467,054 | ) | |
| (3,023,571 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Effect
of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies | |
| 53,237 | | |
| 4,197 | | |
| (174,276 | ) | |
| (24,546 | ) | |
| 110,403 | | |
| (202,457 | ) | |
| (28,516 | ) |
| Net
increase/(decrease) in cash, cash equivalents and restricted cash | |
| 6,743,923 | | |
| 2,478,654 | | |
| 6,048,592 | | |
| 851,926 | | |
| 10,212,210 | | |
| (3,381,667 | ) | |
| (476,298 | ) |
| Cash,
cash equivalents and restricted cash, at the beginning of the period | |
| 20,844,402 | | |
| 15,679,412 | | |
| 18,158,066 | | |
| 2,557,510 | | |
| 17,376,115 | | |
| 27,588,325 | | |
| 3,885,734 | |
| Cash,
cash equivalents and restricted cash, at end of the period | |
| 27,588,325 | | |
| 18,158,066 | | |
| 24,206,658 | | |
| 3,409,436 | | |
| 27,588,325 | | |
| 24,206,658 | | |
| 3,409,436 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Supplemental
disclosures of cash flow information: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cash paid for income
tax, net | |
| 971,217 | | |
| 1,165,196 | | |
| 1,030,932 | | |
| 145,204 | | |
| 5,092,391 | | |
| 4,895,752 | | |
| 689,552 | |
| Cash paid for interest
expenses | |
| 264,232 | | |
| 105,665 | | |
| 71,847 | | |
| 10,119 | | |
| 588,381 | | |
| 779,872 | | |
| 109,843 | |
The accompanying
notes are an integral part of this announcement.
NETEASE, INC.
UNAUDITED SEGMENT INFORMATION
(in thousands, except percentages)
| | |
Three
Months Ended | | |
Year
Ended | |
| | |
December
31, | | |
September
30, | | |
December
31, | | |
December
31, | | |
December
31, | | |
December
31, | | |
December
31, | |
| | |
2022 | | |
2023 | | |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2023 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD (Note
1) | | |
RMB | | |
RMB | | |
USD (Note
1) | |
| Net
revenues: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Games and
related value-added services | |
| 19,085,708 | | |
| 21,779,851 | | |
| 20,921,355 | | |
| 2,946,711 | | |
| 74,566,471 | | |
| 81,565,449 | | |
| 11,488,253 | |
| Youdao | |
| 1,453,982 | | |
| 1,538,783 | | |
| 1,480,521 | | |
| 208,527 | | |
| 5,013,182 | | |
| 5,389,208 | | |
| 759,054 | |
| Cloud Music | |
| 2,376,257 | | |
| 1,973,064 | | |
| 1,985,548 | | |
| 279,659 | | |
| 8,992,221 | | |
| 7,866,992 | | |
| 1,108,043 | |
| Innovative
businesses and others | |
| 2,438,182 | | |
| 1,978,708 | | |
| 2,752,741 | | |
| 387,715 | | |
| 7,923,935 | | |
| 8,646,510 | | |
| 1,217,835 | |
| Total
net revenues | |
| 25,354,129 | | |
| 27,270,406 | | |
| 27,140,165 | | |
| 3,822,612 | | |
| 96,495,809 | | |
| 103,468,159 | | |
| 14,573,185 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cost
of revenues: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Games and related value-added
services | |
| (7,805,578 | ) | |
| (6,749,507 | ) | |
| (6,383,474 | ) | |
| (899,094 | ) | |
| (27,784,419 | ) | |
| (25,938,865 | ) | |
| (3,653,413 | ) |
| Youdao | |
| (679,295 | ) | |
| (679,147 | ) | |
| (741,720 | ) | |
| (104,469 | ) | |
| (2,430,738 | ) | |
| (2,621,746 | ) | |
| (369,265 | ) |
| Cloud Music | |
| (1,953,900 | ) | |
| (1,436,552 | ) | |
| (1,384,537 | ) | |
| (195,008 | ) | |
| (7,699,103 | ) | |
| (5,764,322 | ) | |
| (811,888 | ) |
| Innovative
businesses and others | |
| (1,670,992 | ) | |
| (1,438,900 | ) | |
| (1,805,299 | ) | |
| (254,271 | ) | |
| (5,815,423 | ) | |
| (6,079,832 | ) | |
| (856,326 | ) |
| Total
cost of revenues | |
| (12,109,765 | ) | |
| (10,304,106 | ) | |
| (10,315,030 | ) | |
| (1,452,842 | ) | |
| (43,729,683 | ) | |
| (40,404,765 | ) | |
| (5,690,892 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gross
profit: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Games and related value-added
services | |
| 11,280,130 | | |
| 15,030,344 | | |
| 14,537,881 | | |
| 2,047,617 | | |
| 46,782,052 | | |
| 55,626,584 | | |
| 7,834,840 | |
| Youdao | |
| 774,687 | | |
| 859,636 | | |
| 738,801 | | |
| 104,058 | | |
| 2,582,444 | | |
| 2,767,462 | | |
| 389,789 | |
| Cloud Music | |
| 422,357 | | |
| 536,512 | | |
| 601,011 | | |
| 84,651 | | |
| 1,293,118 | | |
| 2,102,670 | | |
| 296,155 | |
| Innovative
businesses and others | |
| 767,190 | | |
| 539,808 | | |
| 947,442 | | |
| 133,444 | | |
| 2,108,512 | | |
| 2,566,678 | | |
| 361,509 | |
| Total
gross profit | |
| 13,244,364 | | |
| 16,966,300 | | |
| 16,825,135 | | |
| 2,369,770 | | |
| 52,766,126 | | |
| 63,063,394 | | |
| 8,882,293 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gross
profit margin: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Games and related value-added
services | |
| 59.1 | % | |
| 69.0 | % | |
| 69.5 | % | |
| 69.5 | % | |
| 62.7 | % | |
| 68.2 | % | |
| 68.2 | % |
| Youdao | |
| 53.3 | % | |
| 55.9 | % | |
| 49.9 | % | |
| 49.9 | % | |
| 51.5 | % | |
| 51.4 | % | |
| 51.4 | % |
| Cloud Music | |
| 17.8 | % | |
| 27.2 | % | |
| 30.3 | % | |
| 30.3 | % | |
| 14.4 | % | |
| 26.7 | % | |
| 26.7 | % |
| Innovative businesses
and others | |
| 31.5 | % | |
| 27.3 | % | |
| 34.4 | % | |
| 34.4 | % | |
| 26.6 | % | |
| 29.7 | % | |
| 29.7 | % |
The accompanying notes are an integral part of this announcement.
NETEASE, INC.
NOTES TO UNAUDITED FINANCIAL INFORMATION
Note 1: The conversion of Renminbi (RMB) into
United States dollars (USD) is based on the noon buying rate of USD1.00 = RMB7.0999 on the last trading day of December 2023 (December 29,
2023) 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 29, 2023, 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, | |
| | |
2022 | | |
2023 | | |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2023 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD (Note 1) | | |
RMB | | |
RMB | | |
USD (Note 1) | |
| Share-based compensation cost included
in: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues | |
| 195,793 | | |
| 210,533 | | |
| 216,717 | | |
| 30,524 | | |
| 758,413 | | |
| 823,765 | | |
| 116,025 | |
| Operating expenses | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Selling and marketing
expenses | |
| 33,001 | | |
| 33,804 | | |
| 35,575 | | |
| 5,011 | | |
| 120,171 | | |
| 132,801 | | |
| 18,705 | |
| General and administrative
expenses | |
| 349,444 | | |
| 280,581 | | |
| 262,830 | | |
| 37,019 | | |
| 1,214,995 | | |
| 1,119,018 | | |
| 157,610 | |
| Research and development
expenses | |
| 298,322 | | |
| 294,630 | | |
| 297,865 | | |
| 41,953 | | |
| 1,080,581 | | |
| 1,167,226 | | |
| 164,400 | |
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 subsidiaries to meet
the disclosure requirements under U.S. GAAP or 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, | |
| | |
2022 | | |
2023 | | |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2023 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD (Note 1) | | |
RMB | | |
RMB | | |
USD (Note 1) | |
| Net
income from continuing operations attributable to the Company’s shareholders | |
| 3,952,737 | | |
| 7,836,888 | | |
| 6,582,263 | | |
| 927,093 | | |
| 19,712,736 | | |
| 29,416,552 | | |
| 4,143,234 | |
| Add: Share-based compensation | |
| 858,637 | | |
| 808,276 | | |
| 797,194 | | |
| 112,282 | | |
| 3,095,693 | | |
| 3,191,753 | | |
| 449,549 | |
| Non-GAAP net
income from continuing operations attributable to the Company’s shareholders | |
| 4,811,374 | | |
| 8,645,164 | | |
| 7,379,457 | | |
| 1,039,375 | | |
| 22,808,429 | | |
| 32,608,305 | | |
| 4,592,783 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP basic
net income from continuing operations per share * | |
| 1.49 | | |
| 2.69 | | |
| 2.30 | | |
| 0.32 | | |
| 6.99 | | |
| 10.14 | | |
| 1.43 | |
| Non-GAAP basic
net income from continuing operations per ADS * | |
| 7.43 | | |
| 13.45 | | |
| 11.49 | | |
| 1.62 | | |
| 34.95 | | |
| 50.69 | | |
| 7.14 | |
| Non-GAAP diluted
net income from continuing operations per share * | |
| 1.47 | | |
| 2.66 | | |
| 2.27 | | |
| 0.32 | | |
| 6.92 | | |
| 10.03 | | |
| 1.41 | |
| Non-GAAP diluted
net income from continuing operations per ADS * | |
| 7.36 | | |
| 13.30 | | |
| 11.34 | | |
| 1.60 | | |
| 34.60 | | |
| 50.14 | | |
| 7.06 | |
* Each
ADS represents five ordinary shares.
The accompanying
notes are an integral part of this announcement.
NetEase (PK) (USOTC:NETTF)
過去 株価チャート
から 11 2024 まで 12 2024
NetEase (PK) (USOTC:NETTF)
過去 株価チャート
から 12 2023 まで 12 2024
