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 2025
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 ¨
Exhibit
Exhibit 99.1 - NetEase Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results
SIGNATURE
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.
| |
NETEASE, INC. |
| |
|
| |
By: |
/s/ William Lei Ding |
| |
Name: |
William Lei Ding |
| |
Title: |
Chief Executive Officer |
Date: February 20, 2025
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 2024 Unaudited Financial Results
Hangzhou, China, February 20, 2025 - 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, 2024.
Fourth Quarter 2024 Financial Highlights
| · | Net
revenues were RMB26.7 billion (US$3.7 billion), a decrease of 1.4% compared with the same
quarter of 2023. |
| · | Games
and related value-added services net revenues were RMB21.2 billion (US$2.9 billion), an increase
of 1.5% compared with the same quarter of 2023. |
| · | Youdao
net revenues were RMB1.3 billion (US$183.6 million), a decrease of 9.5% compared with the
same quarter of 2023. |
| · | NetEase
Cloud Music net revenues were RMB1.9 billion (US$257.6 million), a decrease of 5.3% compared
with the same quarter of 2023. |
| · | Innovative
businesses and others net revenues were RMB2.3 billion (US$313.1 million), a decrease of
17.0% compared with the same quarter of 2023. |
| · | Gross
profit was RMB16.3 billion (US$2.2 billion), a decrease of 3.3% compared with the same quarter
of 2023. |
| · | Total
operating expenses were RMB8.5 billion (US$1.2 billion), a decrease of 15.1% compared with
the same quarter of 2023. |
| · | Net
income attributable to the Company’s shareholders was RMB8.8 billion (US$1.2 billion).
Non-GAAP net income attributable to the Company’s shareholders was RMB9.7 billion (US$1.3
billion).[1] |
| · | Basic
net income per share was US$0.38 (US$1.89 per ADS). Non-GAAP basic net income per share was
US$0.42 (US$2.09 per ADS).[1] |
Fourth Quarter 2024 and Early 2025 Operational
Highlights
| · | Introduced
more new blockbuster games around the globe, reinforcing NetEase’s leadership across
diverse genres and growing global momentum. |
| · | Marvel
Rivals topped Steam’s global top sellers chart shortly after its launch on December 6,
amassing over 10 million registered users within 72 hours and over 40 million to date. Its
Season 1 update in January 2025 sparked another surge, claiming the No. 1 spots
on Steam’s top sellers and most-played charts worldwide. |
| · | Where
Winds Meet surpassed 3 million downloads in China within four days of its PC launch and
topped the iOS download chart for approximately two weeks following its mobile launch. A
successful release of the game’s mobile version drove total players across PC and mobile
to over 15 million within two weeks. |
| · | Justice
mobile game topped the iOS download charts in Hong Kong, Macau and Taiwan and reached
No. 1 position on the iOS top grossing chart in Taiwan in January 2025. |
| · | Blizzard
titles World of Warcraft and Hearthstone continued to generate strong enthusiasm
from the Chinese gaming community, while the return of Overwatch 2 on February 19,
2025 further fueled players’ passion. |
| · | Established
titles maintained their popularity, such as Westward Journey Online 2, Fantasy
Westward Journey Online and mobile game, Infinite Borders, Onmyoji, Identity
V, Naraka: Bladepoint and Justice franchise, demonstrating NetEase’s
prowess in long-term game operations. |
| · | New
game lineup for global markets, including Fragpunk, Destiny: Rising and
MARVEL Mystic Mayhem, positioned to further diversify game portfolio. |
[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.
| · | Youdao
continued to focus on technology-driven innovation and profitability enhancement, achieving
a 10.3% year-over-year increase in operating profit during the fourth quarter and recording
first-ever annual operating profit in 2024. |
| · | NetEase
Cloud Music continued to drive quality development across its music-centric ecosystem, remaining
committed to nurturing its unique community and enriching its distinctive content offering.
It also further improved music-oriented monetization supported by enlarging subscription-based
memberships. |
“We boldly pushed the boundaries of innovation
once again in 2024, delivering groundbreaking gaming experiences that captivated players worldwide,” said Mr. William Ding,
Chief Executive Officer and Director of NetEase. “Our new hit titles not only redefined gameplay but also set new industry benchmarks,
while our legacy franchises gained fresh momentum through striking enhancements in design, storytelling and immersive content. As our
diverse game portfolio expands across more genres and engages an ever-growing global audience, we remain dedicated to fostering creativity
and collaborating with top talent and strategic partners to shape the next wave of gaming trends.
“Beyond gaming, Youdao and NetEase Cloud
Music maintained healthy development in 2024, led by our focus on meticulously crafted content and exceptional user experiences. Our
enduring pursuit of innovation, global expansion and game diversification is fueling lasting value creation across the industries we
serve and for our partners and shareholders alike,” Mr. Ding concluded.
Fourth Quarter 2024 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2024 were
RMB26.7 billion (US$3.7 billion), compared with RMB26.2 billion and RMB27.1 billion for the preceding quarter and the same quarter of
2023, respectively.
Net revenues from games and related value-added
services were RMB21.2 billion (US$2.9 billion) for the fourth quarter of 2024, compared with RMB20.9 billion each for the preceding quarter
and the same quarter of 2023. Net revenues from the operation of online games accounted for approximately 96.7% of the segment’s
net revenues for the fourth quarter of 2024, compared with 96.8% and 93.4% for the preceding quarter and the same quarter of 2023, respectively.
Net revenues from mobile games accounted for approximately 65.3% of net revenues from the operation of online games for the fourth quarter
of 2024, compared with 70.8% and 76.7% for the preceding quarter and the same quarter of 2023, respectively. The change in revenue mix
was mainly due to the increased net revenues from PC games, including certain licensed titles.
Net revenues from Youdao were RMB1.3 billion
(US$183.6 million) for the fourth quarter of 2024, compared with RMB1.6 billion and RMB1.5 billion for the preceding quarter and the
same quarter of 2023, respectively.
Net revenues from NetEase Cloud Music were RMB1.9 billion (US$257.6 million) for the fourth quarter
of 2024, compared with RMB2.0 billion each for the preceding quarter and the same quarter of 2023.
Net revenues from innovative businesses and others
were RMB2.3 billion (US$313.1 million) for the fourth quarter of 2024, compared with RMB1.8 billion and RMB2.8 billion for the preceding
quarter and the same quarter of 2023, respectively.
Gross Profit
Gross profit for the fourth quarter of 2024 was
RMB16.3 billion (US$2.2 billion), compared with RMB16.5 billion and RMB16.8 billion for the preceding quarter and the same quarter of
2023, respectively.
The quarter-over-quarter and year-over-year decreases
in games and related value-added services’ gross profit were primarily due to decreased net revenues from certain mobile games,
partially offset by increased net revenues from PC games, including certain licensed titles.
The quarter-over-quarter and year-over-year decreases
in Youdao’s gross profit were primarily due to decreased net revenues from its learning services.
The quarter-over-quarter decrease in NetEase
Cloud Music’s gross profit was primarily due to decreased net revenues from social entertainment services.
The quarter-over-quarter increase in innovative
businesses and others’ gross profit was primarily due to increased gross profit from Yanxuan and advertising services. The year-over-year
decrease was primarily due to decreased gross profit from several businesses within the segment including advertising services.
Gross Profit Margin
Gross profit margin for games and related value-added
services for the fourth quarter of 2024 was 66.7%, compared with 68.8% and 69.5% for the preceding quarter and the same quarter of 2023,
respectively. The quarter-over-quarter and year-over-year decreases were mainly attributable to higher revenue contribution from licensed
games which have comparatively lower gross profit margins.
Gross profit margin for Youdao for the fourth
quarter of 2024 was 47.8%, compared with 50.2% and 49.9% for the preceding quarter and the same quarter of 2023, respectively. The quarter-over-quarter
and year-over-year decreases were mainly due to decreased revenue contribution from its learning services.
Gross profit margin for NetEase Cloud Music for
the fourth quarter of 2024 was 31.9%, compared with 32.8% and 30.3% for the preceding quarter and the same quarter of 2023, respectively.
The year-over-year increase was mainly due to increased net revenues from sales of membership subscriptions and continued improvement
in cost control measures.
Gross profit margin for innovative businesses and others for the fourth quarter of 2024 was 37.8%, compared
with 37.8% and 34.4% for the preceding quarter and the same quarter of 2023, respectively. The year-over-year increase was mainly due
to increased gross profit margins from Yanxuan.
Operating Expenses
Total operating expenses for the fourth quarter
of 2024 were RMB8.5 billion (US$1.2 billion), compared with RMB9.3 billion and RMB10.0 billion for the preceding quarter and the same
quarter of 2023, respectively. The quarter-over-quarter and year-over-year decreases were mainly due to decreased marketing expenditures
related to games and related value-added services.
Other Income/(Expenses)
Other income/(expenses) consisted of investment
(losses)/income, interest income, exchange gains/(losses) and others. The quarter-over-quarter and year-over-year increases were mainly
due to net exchange gains in the fourth quarter of 2024 compared with net exchange losses recorded in the preceding quarter and the same
quarter of 2023.
Income Tax
The Company recorded a net income tax charge
of RMB1.4 billion (US$189.7 million) for the fourth quarter of 2024, compared with RMB1.3 billion and RMB1.1 billion for the preceding
quarter and the same quarter of 2023, respectively. The effective tax rate for the fourth quarter of 2024 was 13.4%, compared with 16.1%
and 13.8% for the preceding quarter and the same quarter of 2023, 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 RMB8.8 billion (US$1.2 billion) for the fourth quarter of 2024, compared with RMB6.5 billion and RMB6.6 billion
for the preceding quarter and the same quarter of 2023, respectively.
Basic net income was US$0.38 per share (US$1.89
per ADS) for the fourth quarter of 2024, compared with US$0.28 per share (US$1.40 per ADS) each for the preceding quarter and the same
quarter of 2023, respectively.
Non-GAAP net income attributable to the Company’s
shareholders totaled RMB9.7 billion (US$1.3 billion) for the fourth quarter of 2024, compared with RMB7.5 billion and RMB7.4 billion
for the preceding quarter and the same quarter of 2023, respectively.
Non-GAAP basic net income was US$0.42 per share
(US$2.09 per ADS) for the fourth quarter of 2024, compared with US$0.32 per share (US$1.61 per ADS) and US$0.32 per share (US$1.57 per
ADS) for the preceding quarter and the same quarter of 2023, respectively.
Fiscal Year 2024 Financial Results
Net Revenues
Net revenues for fiscal year 2024 were RMB105.3
billion (US$14.4 billion), compared with RMB103.5 billion for fiscal year 2023.
Net revenues from games and related value-added
services were RMB83.6 billion (US$11.5 billion) for fiscal year 2024, compared with RMB81.6 billion for fiscal year 2023. Net revenues
from the operation of online games accounted for approximately 96.2% of the segment’s total net revenues for fiscal year 2024,
compared with 92.9% for fiscal year 2023. Net revenues from mobile games accounted for approximately 72.7% of net revenues from the operation
of online games for fiscal year 2024, compared with 75.2% for fiscal year 2023. The change in revenue mix was mainly due to higher net
revenues generated by PC games such as Naraka: Bladepoint and licensed titles.
Net revenues from Youdao were RMB5.6 billion
(US$770.7 million) for fiscal year 2024, compared with RMB5.4 billion for fiscal year 2023.
Net revenues from NetEase Cloud Music were RMB8.0
billion (US$1.1 billion) for fiscal year 2024, compared with RMB7.9 billion for fiscal year 2023.
Net revenues from innovative businesses and others
were RMB8.1 billion (US$1.1 billion) for fiscal year 2024, compared with RMB8.6 billion for fiscal year 2023.
Gross Profit
Gross profit for fiscal year 2024 was RMB65.8
billion (US$9.0 billion), compared with RMB63.1 billion for fiscal year 2023.
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, such as Identity
V and Naraka: Bladepoint PC and mobile games.
The slight year-over-year decrease in Youdao’s
gross profit was mainly due to decreased revenue contribution from its learning services, which was partially offset by increased revenue
contribution from its online marketing services.
The year-over-year increase in NetEase Cloud
Music’s 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 2024
were RMB36.2 billion (US$5.0 billion), compared with RMB35.4 billion for fiscal year 2023. The year-over-year increase was primarily
due to higher research and development investments for games and related value-added services.
Other Income/(Expenses)
The year-over-year decrease was mainly due to
higher impairment provisions related to certain investments, which was partially offset by higher interest income resulting from the
Company’s increased net cash position.
Income Taxes
The Company recorded a net income tax charge
of RMB5.5 billion (US$748.2 million) for fiscal year 2024, compared with RMB4.7 billion for fiscal year 2023. The effective tax rate
was 15.3% for fiscal year 2024, compared with 13.8% for fiscal year 2023.
Net Income and Non-GAAP Net Income
Net income attributable to the Company’s
shareholders for fiscal year 2024 totaled RMB29.7 billion (US$4.1 billion), compared with RMB29.4 billion for fiscal year 2023.
Basic net income was US$1.27 per share (US$6.36
per ADS) for fiscal year 2024, compared with US$1.25 per share (US$6.26 per ADS) for fiscal year 2023.
Non-GAAP net income attributable to the Company’s
shareholders for fiscal year 2024 totaled RMB33.5 billion (US$4.6 billion), compared with RMB32.6 billion for fiscal year 2023.
Non-GAAP basic net income was US$1.43 per share
(US$7.17 per ADS) for fiscal year 2024, compared with US$1.39 per share (US$6.94 per ADS) for fiscal year 2023.
Other Financial Information
As of December 31, 2024, 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 RMB131.5 billion (US$18.0 billion), compared with RMB110.9 billion as of December 31,
2023. Net cash provided by operating activities was RMB39.7 billion (US$5.4 billion) for fiscal year 2024, compared with RMB35.3 billion
for fiscal year 2023.
Quarterly Dividend
The board of directors approved a dividend of
US$0.24405 per share (US$1.22025 per ADS) for the fourth quarter of 2024 to holders of ordinary shares and holders of ADSs as of the
close of business on March 6, 2025, 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 6, 2025 (Beijing/Hong Kong Time). The payment date is expected to be March 17, 2025,
for holders of ordinary shares and on or around March 20, 2025, for holders of ADSs.
NetEase paid a dividend of US$0.0870 per share
(US$0.4350 per ADS) for the third quarter of 2024 in December 2024.
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, 2024, approximately 21.2 million ADSs had been repurchased under this
program for a total cost of US$1.9 billion.
The extent to which NetEase repurchases its ADSs
and its ordinary shares depends upon a variety of factors, including market conditions. These programs may be suspended or discontinued
at any time.
** The United States dollar (US$) 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. New York Time on Thursday, February 20, 2025 (Beijing/Hong Kong Time: 8:00 p.m.,
Thursday, February 20, 2025). 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: 10044895, 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: 10044895. The replay will be available through February 27, 2025.
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
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 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 regulation 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 events; 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.
NETEASE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
| | |
December 31, | | |
December 31, | | |
December 31, | |
| | |
2023 | | |
2024 | | |
2024 | |
| | |
RMB | | |
RMB | | |
USD (Note 1) | |
| Assets | |
| | | |
| | | |
| | |
| Current assets: | |
| | | |
| | | |
| | |
| Cash and cash equivalents | |
| 21,428,902 | | |
| 51,383,310 | | |
| 7,039,485 | |
| Time deposits | |
| 100,856,034 | | |
| 75,441,355 | | |
| 10,335,423 | |
| Restricted cash | |
| 2,777,206 | | |
| 3,086,405 | | |
| 422,836 | |
| Accounts receivable, net | |
| 6,422,417 | | |
| 5,669,027 | | |
| 776,654 | |
| Inventories | |
| 695,374 | | |
| 571,548 | | |
| 78,302 | |
| Prepayments and other current assets, net | |
| 6,076,595 | | |
| 6,416,868 | | |
| 879,107 | |
| Short-term investments | |
| 4,436,057 | | |
| 10,756,143 | | |
| 1,473,586 | |
| Total current assets | |
| 142,692,585 | | |
| 153,324,656 | | |
| 21,005,393 | |
| | |
| | | |
| | | |
| | |
| Non-current assets: | |
| | | |
| | | |
| | |
| Property, equipment and software, net | |
| 8,075,044 | | |
| 8,520,101 | | |
| 1,167,249 | |
| Land use rights, net | |
| 4,075,143 | | |
| 4,172,465 | | |
| 571,625 | |
| Deferred tax assets | |
| 1,560,088 | | |
| 1,113,435 | | |
| 152,540 | |
| Time deposits | |
| 1,050,000 | | |
| 3,025,000 | | |
| 414,423 | |
| Restricted cash | |
| 550 | | |
| 5,208 | | |
| 713 | |
| Other long-term assets | |
| 28,471,568 | | |
| 25,830,685 | | |
| 3,538,789 | |
| Total non-current assets | |
| 43,232,393 | | |
| 42,666,894 | | |
| 5,845,339 | |
| Total assets | |
| 185,924,978 | | |
| 195,991,550 | | |
| 26,850,732 | |
| | |
| | | |
| | | |
| | |
| Liabilities, Redeemable Noncontrolling Interests
and Shareholders’ Equity | |
| | | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | | |
| | |
| Accounts payable | |
| 881,016 | | |
| 720,549 | | |
| 98,715 | |
| Salary and welfare payables | |
| 4,857,206 | | |
| 4,683,009 | | |
| 641,570 | |
| Taxes payable | |
| 2,571,534 | | |
| 2,759,185 | | |
| 378,007 | |
| Short-term loans | |
| 19,240,163 | | |
| 11,805,051 | | |
| 1,617,285 | |
| Contract liabilities | |
| 13,362,166 | | |
| 15,299,222 | | |
| 2,095,985 | |
| Accrued liabilities and other payables | |
| 12,930,399 | | |
| 14,400,641 | | |
| 1,972,879 | |
| Total current liabilities | |
| 53,842,484 | | |
| 49,667,657 | | |
| 6,804,441 | |
| | |
| | | |
| | | |
| | |
| Non-current liabilities: | |
| | | |
| | | |
| | |
| Deferred tax liabilities | |
| 2,299,303 | | |
| 2,173,117 | | |
| 297,716 | |
| Long-term loans | |
| 427,997 | | |
| 427,997 | | |
| 58,635 | |
| Other long-term liabilities | |
| 1,271,113 | | |
| 1,228,641 | | |
| 168,323 | |
| Total non-current liabilities | |
| 3,998,413 | | |
| 3,829,755 | | |
| 524,674 | |
| Total liabilities | |
| 57,840,897 | | |
| 53,497,412 | | |
| 7,329,115 | |
| | |
| | | |
| | | |
| | |
| Redeemable noncontrolling interests | |
| 115,759 | | |
| 84,272 | | |
| 11,545 | |
| | |
| | | |
| | | |
| | |
| NetEase, Inc.’s shareholders’ equity | |
| 124,285,776 | | |
| 138,685,606 | | |
| 18,999,850 | |
| Noncontrolling interests | |
| 3,682,546 | | |
| 3,724,260 | | |
| 510,222 | |
| Total equity | |
| 127,968,322 | | |
| 142,409,866 | | |
| 19,510,072 | |
| | |
| | | |
| | | |
| | |
| Total liabilities, redeemable noncontrolling interests and shareholders’ equity | |
| 185,924,978 | | |
| 195,991,550 | | |
| 26,850,732 | |
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, | |
| | |
2023 | | |
2024 | | |
2024 | | |
2024 | | |
2023 | | |
2024 | | |
2024 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD (Note 1) | | |
RMB | | |
RMB | | |
USD (Note 1) | |
| Net
revenues | |
| 27,140,165 | | |
| 26,209,879 | | |
| 26,747,811 | | |
| 3,664,435 | | |
| 103,468,159 | | |
| 105,295,236 | | |
| 14,425,388 | |
| Cost
of revenues | |
| (10,315,030 | ) | |
| (9,733,274 | ) | |
| (10,475,470 | ) | |
| (1,435,134 | ) | |
| (40,404,765 | ) | |
| (39,488,152 | ) | |
| (5,409,855 | ) |
| Gross
profit | |
| 16,825,135 | | |
| 16,476,605 | | |
| 16,272,341 | | |
| 2,229,301 | | |
| 63,063,394 | | |
| 65,807,084 | | |
| 9,015,533 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating
expenses: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Selling and
marketing expenses | |
| (4,225,556 | ) | |
| (3,805,071 | ) | |
| (2,818,645 | ) | |
| (386,153 | ) | |
| (13,969,460 | ) | |
| (14,147,657 | ) | |
| (1,938,221 | ) |
| General and
administrative expenses | |
| (1,251,869 | ) | |
| (1,100,328 | ) | |
| (1,162,381 | ) | |
| (159,246 | ) | |
| (4,899,880 | ) | |
| (4,550,625 | ) | |
| (623,433 | ) |
| Research
and development expenses | |
| (4,479,219 | ) | |
| (4,424,469 | ) | |
| (4,469,868 | ) | |
| (612,369 | ) | |
| (16,484,910 | ) | |
| (17,524,812 | ) | |
| (2,400,889 | ) |
| Total
operating expenses | |
| (9,956,644 | ) | |
| (9,329,868 | ) | |
| (8,450,894 | ) | |
| (1,157,768 | ) | |
| (35,354,250 | ) | |
| (36,223,094 | ) | |
| (4,962,543 | ) |
| Operating
profit | |
| 6,868,491 | | |
| 7,146,737 | | |
| 7,821,447 | | |
| 1,071,533 | | |
| 27,709,144 | | |
| 29,583,990 | | |
| 4,052,990 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Other
income/(expenses): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Investment
(losses)/income, net | |
| (8,940 | ) | |
| 578,398 | | |
| (506,077 | ) | |
| (69,332 | ) | |
| 1,306,722 | | |
| 355,286 | | |
| 48,674 | |
| Interest income,
net | |
| 1,261,583 | | |
| 1,282,766 | | |
| 1,174,333 | | |
| 160,883 | | |
| 4,120,418 | | |
| 4,920,915 | | |
| 674,163 | |
| Exchange (losses)/gains,
net | |
| (810,904 | ) | |
| (1,055,518 | ) | |
| 1,535,312 | | |
| 210,337 | | |
| (132,999 | ) | |
| 255,430 | | |
| 34,994 | |
| Other,
net | |
| 434,759 | | |
| 43,600 | | |
| 278,952 | | |
| 38,216 | | |
| 1,053,642 | | |
| 602,134 | | |
| 82,492 | |
| Income
before tax | |
| 7,744,989 | | |
| 7,995,983 | | |
| 10,303,967 | | |
| 1,411,637 | | |
| 34,056,927 | | |
| 35,717,755 | | |
| 4,893,313 | |
| Income
tax | |
| (1,068,657 | ) | |
| (1,289,545 | ) | |
| (1,385,014 | ) | |
| (189,746 | ) | |
| (4,699,704 | ) | |
| (5,461,408 | ) | |
| (748,210 | ) |
| Net
income | |
| 6,676,332 | | |
| 6,706,438 | | |
| 8,918,953 | | |
| 1,221,891 | | |
| 29,357,223 | | |
| 30,256,347 | | |
| 4,145,103 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Accretion
of redeemable noncontrolling interests | |
| (966 | ) | |
| (962 | ) | |
| (1,039 | ) | |
| (142 | ) | |
| (3,589 | ) | |
| (3,919 | ) | |
| (537 | ) |
| Net
(income)/loss attributable to noncontrolling interests and redeemable noncontrolling interests | |
| (93,103 | ) | |
| (167,041 | ) | |
| (151,435 | ) | |
| (20,747 | ) | |
| 62,918 | | |
| (554,819 | ) | |
| (76,010 | ) |
| Net
income attributable to the Company’s shareholders | |
| 6,582,263 | | |
| 6,538,435 | | |
| 8,766,479 | | |
| 1,201,002 | | |
| 29,416,552 | | |
| 29,697,609 | | |
| 4,068,556 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income
per share * | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 2.05 | | |
| 2.04 | | |
| 2.76 | | |
| 0.38 | | |
| 9.15 | | |
| 9.28 | | |
| 1.27 | |
| Diluted | |
| 2.02 | | |
| 2.03 | | |
| 2.73 | | |
| 0.37 | | |
| 9.05 | | |
| 9.19 | | |
| 1.26 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net
income per ADS * | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 10.25 | | |
| 10.22 | | |
| 13.81 | | |
| 1.89 | | |
| 45.73 | | |
| 46.40 | | |
| 6.36 | |
| Diluted | |
| 10.12 | | |
| 10.14 | | |
| 13.67 | | |
| 1.87 | | |
| 45.23 | | |
| 45.95 | | |
| 6.29 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Weighted
average number of ordinary shares used in calculating net income per share * | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 3,212,328 | | |
| 3,198,646 | | |
| 3,174,113 | | |
| 3,174,113 | | |
| 3,216,475 | | |
| 3,200,453 | | |
| 3,200,453 | |
| Diluted | |
| 3,253,166 | | |
| 3,224,110 | | |
| 3,206,100 | | |
| 3,206,100 | | |
| 3,252,029 | | |
| 3,230,602 | | |
| 3,230,602 | |
* 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, | |
| | |
2023 | |
2024 | |
2024 | |
2024 | |
2023 | |
2024 | |
2024 | |
| | |
RMB | |
RMB | |
RMB | |
USD (Note 1) | |
RMB | |
RMB | |
USD (Note 1) | |
| Cash
flows from operating activities: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Net
income | |
| 6,676,332 | |
| 6,706,438 | |
| 8,918,953 | |
| 1,221,891 | |
| 29,357,223 | |
| 30,256,347 | |
| 4,145,103 | |
| Adjustments
to reconcile net income to net cash provided by operating activities: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Depreciation
and amortization | |
| 659,772 | |
| 520,567 | |
| 697,447 | |
| 95,550 | |
| 3,055,260 | |
| 2,417,894 | |
| 331,250 | |
| Fair value
changes of equity security, other investments and financial instruments | |
| 151,571 | |
| (824,608 | ) |
| 358,852 | |
| 49,163 | |
| (535,316 | ) |
| (841,901 | ) |
| (115,340 | ) |
| Impairment
losses on investments | |
| 140,648 | |
| 529,668 | |
| 422,801 | |
| 57,924 | |
| 469,159 | |
| 1,291,627 | |
| 176,952 | |
| Fair value
changes of short-term investments | |
| (106,532 | ) |
| (100,071 | ) |
| (241,431 | ) |
| (33,076 | ) |
| (414,207 | ) |
| (530,607 | ) |
| (72,693 | ) |
| Share-based
compensation cost | |
| 812,987 | |
| 978,139 | |
| 931,444 | |
| 127,608 | |
| 3,242,810 | |
| 3,882,939 | |
| 531,960 | |
| Allowance
for expected credit losses | |
| 9,500 | |
| 36,022 | |
| 12,031 | |
| 1,648 | |
| 61,146 | |
| 68,934 | |
| 9,444 | |
| Losses/(gains)
on disposal of property, equipment and software | |
| 3,385 | |
| (2,920 | ) |
| (3,644 | ) |
| (499 | ) |
| 5,676 | |
| (4,758 | ) |
| (652 | ) |
| Unrealized
exchange losses/(gains) | |
| 838,056 | |
| 1,050,644 | |
| (1,542,986 | ) |
| (211,388 | ) |
| 119,935 | |
| (719,162 | ) |
| (98,525 | ) |
| (Gains)/losses
on disposal of long-term investments, business and subsidiaries | |
| (38,437 | ) |
| (118,046 | ) |
| 232 | |
| 32 | |
| (63,784 | ) |
| (272,415 | ) |
| (37,321 | ) |
| Deferred
income taxes | |
| 193,854 | |
| 711,639 | |
| 404,109 | |
| 55,363 | |
| 131,437 | |
| 320,726 | |
| 43,939 | |
| Share of
results on equity method investees and revaluation results from previously held equity interest | |
| (88,805 | ) |
| (28,466 | ) |
| (19,437 | ) |
| (2,663 | ) |
| (473,947 | ) |
| 155,568 | |
| 21,313 | |
| Changes
in operating assets and liabilities: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Accounts
receivable | |
| 53,089 | |
| 146,758 | |
| 517,850 | |
| 70,945 | |
| (1,470,374 | ) |
| 716,375 | |
| 98,143 | |
| Inventories | |
| 25,054 | |
| (39,285 | ) |
| 42,135 | |
| 5,772 | |
| 296,764 | |
| 123,780 | |
| 16,958 | |
| Prepayments
and other assets | |
| 542,593 | |
| (1,234,390 | ) |
| (432,196 | ) |
| (59,211 | ) |
| 87,556 | |
| (809,590 | ) |
| (110,913 | ) |
| Accounts
payable | |
| 18,443 | |
| 6,316 | |
| 218,689 | |
| 29,960 | |
| (559,419 | ) |
| 91,142 | |
| 12,486 | |
| Salary
and welfare payables | |
| 1,992,931 | |
| (670,750 | ) |
| 1,759,382 | |
| 241,034 | |
| (62,917 | ) |
| (210,918 | ) |
| (28,896 | ) |
| Taxes
payable | |
| (500,172 | ) |
| 224,015 | |
| 154,651 | |
| 21,187 | |
| (244,261 | ) |
| 187,788 | |
| 25,727 | |
| Contract
liabilities | |
| (847,562 | ) |
| 1,928,060 | |
| (209,626 | ) |
| (28,719 | ) |
| 1,161,861 | |
| 2,022,196 | |
| 277,041 | |
| Accrued
liabilities and other payables | |
| 1,271,572 | |
| 755,882 | |
| 1,022,944 | |
| 140,143 | |
| 1,166,673 | |
| 1,530,848 | |
| 209,725 | |
| Net
cash provided by operating activities | |
| 11,808,279 | |
| 10,575,612 | |
| 13,012,200 | |
| 1,782,664 | |
| 35,331,275 | |
| 39,676,813 | |
| 5,435,701 | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Cash
flows from investing activities: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Purchase
of property, equipment and software | |
| (484,927 | ) |
| (379,520 | ) |
| (311,982 | ) |
| (42,741 | ) |
| (2,301,554 | ) |
| (1,275,400 | ) |
| (174,729 | ) |
| Proceeds
from sale of property, equipment and software | |
| 405 | |
| 1,072 | |
| 9,295 | |
| 1,273 | |
| 10,302 | |
| 14,533 | |
| 1,991 | |
| Purchase
of intangible assets, content and licensed copyrights | |
| (121,797 | ) |
| (222,247 | ) |
| (120,387 | ) |
| (16,493 | ) |
| (1,974,323 | ) |
| (930,988 | ) |
| (127,545 | ) |
| Net changes
of short-term investments with terms of three months or less | |
| (690,628 | ) |
| 1,585,395 | |
| 3,798,989 | |
| 520,460 | |
| (1,777,687 | ) |
| (408,256 | ) |
| (55,931 | ) |
| Purchase
of short-term investments with terms over three months | |
| - | |
| (3,675,000 | ) |
| (4,560,000 | ) |
| (624,717 | ) |
| - | |
| (8,235,000 | ) |
| (1,128,190 | ) |
| Proceeds
from maturities of short-term investments with terms over three months | |
| 4,897,291 | |
| - | |
| 2,853,778 | |
| 390,966 | |
| 5,378,510 | |
| 2,853,778 | |
| 390,966 | |
| Investment
in long-term investments and acquisition of subsidiaries | |
| (914,962 | ) |
| (226,086 | ) |
| (201,686 | ) |
| (27,631 | ) |
| (2,831,686 | ) |
| (1,103,026 | ) |
| (151,114 | ) |
| Proceeds
from disposal of long-term investments, businesses, subsidiaries and other financial instruments | |
| 73,855 | |
| 1,541,338 | |
| 355,142 | |
| 48,654 | |
| 152,564 | |
| 2,822,585 | |
| 386,692 | |
| Placement/rollover
of matured time deposits | |
| (46,666,670 | ) |
| (36,766,094 | ) |
| (21,691,769 | ) |
| (2,971,760 | ) |
| (124,693,598 | ) |
| (154,792,305 | ) |
| (21,206,459 | ) |
| Proceeds
from maturities of time deposits | |
| 33,273,393 | |
| 37,546,192 | |
| 40,570,700 | |
| 5,558,163 | |
| 111,417,969 | |
| 179,377,113 | |
| 24,574,564 | |
| Change
in other long-term assets | |
| (90,635 | ) |
| (125,911 | ) |
| (73,553 | ) |
| (10,077 | ) |
| (423,928 | ) |
| (406,632 | ) |
| (55,708 | ) |
| Net
cash (used in)/provided by investing activities | |
| (10,724,675 | ) |
| (720,861 | ) |
| 20,628,527 | |
| 2,826,097 | |
| (17,043,431 | ) |
| 17,916,402 | |
| 2,454,537 | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Cash
flows from financing activities: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Net changes
from loans with terms of three months or less | |
| 6,179,979 | |
| (4,778,301 | ) |
| 606,092 | |
| 83,034 | |
| (13,654,704 | ) |
| (6,656,988 | ) |
| (912,004 | ) |
| Proceeds
of loans with terms over three months | |
| 2,511,000 | |
| 5,395,810 | |
| 457,000 | |
| 62,609 | |
| 13,569,160 | |
| 13,920,080 | |
| 1,907,043 | |
| Payment
of loans with terms over three months | |
| (695,000 | ) |
| (3,100,520 | ) |
| - | |
| - | |
| (8,219,472 | ) |
| (14,739,347 | ) |
| (2,019,282 | ) |
| Net amounts
received/(paid) related to capital contribution from or repurchase of noncontrolling interests shareholders | |
| 28,009 | |
| (8,394 | ) |
| 51,614 | |
| 7,071 | |
| 86,159 | |
| 136,006 | |
| 18,633 | |
| Cash paid
for repurchase of NetEase’s ADSs/purchase of subsidiaries’ ADSs and shares | |
| (625,832 | ) |
| (3,994,212 | ) |
| (1,595,093 | ) |
| (218,527 | ) |
| (5,234,294 | ) |
| (8,830,115 | ) |
| (1,209,721 | ) |
| Dividends
paid to NetEase’s shareholders | |
| (2,258,892 | ) |
| (1,972,928 | ) |
| (1,982,595 | ) |
| (271,614 | ) |
| (8,013,903 | ) |
| (11,165,338 | ) |
| (1,529,645 | ) |
| Net
cash provided/(used in) by financing activities | |
| 5,139,264 | |
| (8,458,545 | ) |
| (2,462,982 | ) |
| (337,427 | ) |
| (21,467,054 | ) |
| (27,335,702 | ) |
| (3,744,976 | ) |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Effect
of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies | |
| (174,276 | ) |
| (68,136 | ) |
| 113,792 | |
| 15,589 | |
| (202,457 | ) |
| 10,752 | |
| 1,473 | |
| Net
increase/(decrease) in cash, cash equivalents and restricted cash | |
| 6,048,592 | |
| 1,328,070 | |
| 31,291,537 | |
| 4,286,923 | |
| (3,381,667 | ) |
| 30,268,265 | |
| 4,146,735 | |
| Cash,
cash equivalents and restricted cash, at the beginning of the period | |
| 18,158,066 | |
| 21,855,316 | |
| 23,183,386 | |
| 3,176,111 | |
| 27,588,325 | |
| 24,206,658 | |
| 3,316,299 | |
| Cash,
cash equivalents and restricted cash, at end of the period | |
| 24,206,658 | |
| 23,183,386 | |
| 54,474,923 | |
| 7,463,034 | |
| 24,206,658 | |
| 54,474,923 | |
| 7,463,034 | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Supplemental
disclosures of cash flow information: | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Cash paid
for income taxes, net | |
| 1,030,932 | |
| 554,867 | |
| 603,514 | |
| 82,681 | |
| 4,895,752 | |
| 5,189,585 | |
| 710,970 | |
| Cash paid
for interest expenses | |
| 71,847 | |
| 165,881 | |
| 24,343 | |
| 3,335 | |
| 779,872 | |
| 489,622 | |
| 67,078 | |
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, | |
| | |
2023 | | |
2024 | | |
2024 | | |
2024 | | |
2023 | | |
2024 | | |
2024 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD (Note 1) | | |
RMB | | |
RMB | | |
USD (Note 1) | |
| Net
revenues: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Games
and related value-added services | |
| 20,921,355 | | |
| 20,864,036 | | |
| 21,242,410 | | |
| 2,910,198 | | |
| 81,565,449 | | |
| 83,622,643 | | |
| 11,456,254 | |
| Youdao | |
| 1,480,521 | | |
| 1,572,541 | | |
| 1,339,798 | | |
| 183,552 | | |
| 5,389,208 | | |
| 5,625,919 | | |
| 770,748 | |
| NetEase Cloud
Music | |
| 1,985,548 | | |
| 1,999,163 | | |
| 1,880,490 | | |
| 257,626 | | |
| 7,866,992 | | |
| 7,950,146 | | |
| 1,089,166 | |
| Innovative
businesses and others | |
| 2,752,741 | | |
| 1,774,139 | | |
| 2,285,113 | | |
| 313,059 | | |
| 8,646,510 | | |
| 8,096,528 | | |
| 1,109,220 | |
| Total
net revenues | |
| 27,140,165 | | |
| 26,209,879 | | |
| 26,747,811 | | |
| 3,664,435 | | |
| 103,468,159 | | |
| 105,295,236 | | |
| 14,425,388 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Games and
related value-added services | |
| (6,383,474 | ) | |
| (6,503,146 | ) | |
| (7,075,562 | ) | |
| (969,348 | ) | |
| (25,938,865 | ) | |
| (26,142,623 | ) | |
| (3,581,525 | ) |
| Youdao | |
| (741,720 | ) | |
| (783,085 | ) | |
| (699,045 | ) | |
| (95,769 | ) | |
| (2,621,746 | ) | |
| (2,877,428 | ) | |
| (394,206 | ) |
| NetEase Cloud
Music | |
| (1,384,537 | ) | |
| (1,343,921 | ) | |
| (1,279,951 | ) | |
| (175,353 | ) | |
| (5,764,322 | ) | |
| (5,268,634 | ) | |
| (721,800 | ) |
| Innovative
businesses and others | |
| (1,805,299 | ) | |
| (1,103,122 | ) | |
| (1,420,912 | ) | |
| (194,664 | ) | |
| (6,079,832 | ) | |
| (5,199,467 | ) | |
| (712,324 | ) |
| Total
cost of revenues | |
| (10,315,030 | ) | |
| (9,733,274 | ) | |
| (10,475,470 | ) | |
| (1,435,134 | ) | |
| (40,404,765 | ) | |
| (39,488,152 | ) | |
| (5,409,855 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gross
profit: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Games and
related value-added services | |
| 14,537,881 | | |
| 14,360,890 | | |
| 14,166,848 | | |
| 1,940,850 | | |
| 55,626,584 | | |
| 57,480,020 | | |
| 7,874,729 | |
| Youdao | |
| 738,801 | | |
| 789,456 | | |
| 640,753 | | |
| 87,783 | | |
| 2,767,462 | | |
| 2,748,491 | | |
| 376,542 | |
| NetEase Cloud
Music | |
| 601,011 | | |
| 655,242 | | |
| 600,539 | | |
| 82,273 | | |
| 2,102,670 | | |
| 2,681,512 | | |
| 367,366 | |
| Innovative
businesses and others | |
| 947,442 | | |
| 671,017 | | |
| 864,201 | | |
| 118,395 | | |
| 2,566,678 | | |
| 2,897,061 | | |
| 396,896 | |
| Total
gross profit | |
| 16,825,135 | | |
| 16,476,605 | | |
| 16,272,341 | | |
| 2,229,301 | | |
| 63,063,394 | | |
| 65,807,084 | | |
| 9,015,533 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Gross
profit margin: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Games and
related value-added services | |
| 69.5 | % | |
| 68.8 | % | |
| 66.7 | % | |
| 66.7 | % | |
| 68.2 | % | |
| 68.7 | % | |
| 68.7 | % |
| Youdao | |
| 49.9 | % | |
| 50.2 | % | |
| 47.8 | % | |
| 47.8 | % | |
| 51.4 | % | |
| 48.9 | % | |
| 48.9 | % |
| NetEase Cloud
Music | |
| 30.3 | % | |
| 32.8 | % | |
| 31.9 | % | |
| 31.9 | % | |
| 26.7 | % | |
| 33.7 | % | |
| 33.7 | % |
| Innovative
businesses and others | |
| 34.4 | % | |
| 37.8 | % | |
| 37.8 | % | |
| 37.8 | % | |
| 29.7 | % | |
| 35.8 | % | |
| 35.8 | % |
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 = RMB7.2993 on the last trading day of December 2024 (December 31,
2024) 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, 2024, 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, | |
| | |
2023 | | |
2024 | | |
2024 | | |
2024 | | |
2023 | | |
2024 | | |
2024 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD (Note 1) | | |
RMB | | |
RMB | | |
USD (Note 1) | |
| Share-based compensation cost included
in: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues | |
| 216,717 | | |
| 306,283 | | |
| 304,687 | | |
| 41,742 | | |
| 823,765 | | |
| 1,185,854 | | |
| 162,461 | |
| Operating expenses | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Selling and marketing expenses | |
| 35,575 | | |
| 36,365 | | |
| 7,435 | | |
| 1,019 | | |
| 132,801 | | |
| 104,534 | | |
| 14,321 | |
| General and administrative expenses | |
| 262,830 | | |
| 247,440 | | |
| 246,424 | | |
| 33,760 | | |
| 1,119,018 | | |
| 1,069,850 | | |
| 146,569 | |
| Research and development expenses | |
| 297,865 | | |
| 388,051 | | |
| 372,898 | | |
| 51,087 | | |
| 1,167,226 | | |
| 1,522,701 | | |
| 208,609 | |
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, | |
| | |
2023 | | |
2024 | | |
2024 | | |
2024 | | |
2023 | | |
2024 | | |
2024 | |
| | |
RMB | | |
RMB | | |
RMB | | |
USD (Note 1) | | |
RMB | | |
RMB | | |
USD (Note 1) | |
| Net income attributable to
the Company’s shareholders | |
| 6,582,263 | | |
| 6,538,435 | | |
| 8,766,479 | | |
| 1,201,002 | | |
| 29,416,552 | | |
| 29,697,609 | | |
| 4,068,556 | |
| Add: Share-based
compensation | |
| 797,194 | | |
| 960,706 | | |
| 915,489 | | |
| 125,421 | | |
| 3,191,753 | | |
| 3,813,032 | | |
| 522,383 | |
| Non-GAAP net income
attributable to the Company’s shareholders | |
| 7,379,457 | | |
| 7,499,141 | | |
| 9,681,968 | | |
| 1,326,423 | | |
| 32,608,305 | | |
| 33,510,641 | | |
| 4,590,939 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP net income per share * | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 2.30 | | |
| 2.34 | | |
| 3.05 | | |
| 0.42 | | |
| 10.14 | | |
| 10.47 | | |
| 1.43 | |
| Diluted | |
| 2.27 | | |
| 2.33 | | |
| 3.02 | | |
| 0.41 | | |
| 10.03 | | |
| 10.37 | | |
| 1.42 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP net income
per ADS * | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 11.49 | | |
| 11.72 | | |
| 15.25 | | |
| 2.09 | | |
| 50.69 | | |
| 52.35 | | |
| 7.17 | |
| Diluted | |
| 11.34 | | |
| 11.63 | | |
| 15.09 | | |
| 2.07 | | |
| 50.14 | | |
| 51.85 | | |
| 7.10 | |
* Each ADS represents five ordinary
shares.
The accompanying notes are an integral part
of this announcement.
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