HANGZHOU, China, Nov. 16, 2021 /PRNewswire/ -- NetEase, Inc.
(NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), one of
China's leading internet and
online game services providers, today announced its unaudited
financial results for the third quarter ended September 30, 2021.
Third Quarter 2021 Financial Highlights
- Net revenues were RMB22.2 billion
(US$3.4 billion), an increase of
18.9% compared with the third quarter of 2020.
- Online game services net revenues were RMB15.9 billion (US$2.5
billion), an increase of 14.7% compared with the third
quarter of 2020.
- Youdao net revenues were RMB1.4
billion (US$215.3 million), an
increase of 54.8% compared with the third quarter of 2020.
- Innovative businesses and others net revenues were RMB4.9 billion (US$761.1
million), an increase of 25.7% compared with the third
quarter of 2020.
- Gross profit was RMB11.8 billion
(US$1.8 billion), an increase of
19.5% compared with the third quarter of 2020.
- Total operating expenses were RMB8.0
billion (US$1.2 billion), an
increase of 14.5% compared with the third quarter of 2020.
- Net income attributable to the Company's shareholders was
RMB3.2 billion (US$493.8 million). Non-GAAP net income
attributable to the Company's shareholders was RMB3.9 billion (US$598.7
million). [1]
- Basic net income per share was US$0.15 (US$0.74
per ADS). Non-GAAP basic net income per share was US$0.18 (US$0.90
per ADS). [1]
Third Quarter 2021 and Recent Operational Highlights
- Broadened games portfolio and strengthened global appeal with
new games in diverse genres including:
- Naraka: Bladepoint, which broke the sales record of
buy-to-play games by Chinese developers and led the Steam
top-sellers chart, remaining in the top 5 for weeks following its
global launch in August.
- Harry Potter: Magic
Awakened, which led China's
iOS top grossing chart and top download chart following its launch
in September.
- Exciting new titles in China
such as Ace Racer,
Infinite Lagrange and Nightmare Breaker.
- Launched The Lord of the Rings: Rise to War in
Europe, the Americas, Oceania and
Southeast Asia.
- Extended solid popularity of franchise titles including the
Fantasy Westward Journey and Westward Journey Online
series.
- Enriched dynamic game development pipeline with exciting
advancements to upcoming games including The Showbiz: Dream
Chaser, the console version of Naraka: Bladepoint,
Diablo®
Immortal™, as well as Ghost World
Chronicle, and Harry Potter:
Magic Awakened in international markets.
- Progressed Youdao's capabilities as an education technology
provider, with steady advancements in STEAM courses, adult learning
and smart learning hardware devices.
- Expanded NetEase Cloud Music's content ecosystem and
product innovation capabilities to strengthen its highly-engaged
music-enteric community, delivering a solid financial
performance.
[1] As used in
this announcement, non-GAAP net income attributable to the
Company's shareholders and non-GAAP basic net income per share and
per ADS are defined to exclude share-based compensation expenses.
See "Unaudited Reconciliation of GAAP and Non-GAAP Results" at the
end of this announcement.
|
"With strong and steady contributions from our online game
services, our total net revenues for the third quarter reached
RMB22.2 billion, an increase of 18.9%
year-over-year," said Mr. William
Ding, Chief Executive Officer and Director of NetEase. "It
was a very fruitful season of diversification for our online games.
Our flagship titles remained strong, and we introduced several new
successful hits for PC and mobile platforms. New games such as
Naraka: Bladepoint and Harry
Potter: Magic Awakened captured wide interest from
passionate game players who appreciate high quality game design. We
will continue to bring more masterpieces to both domestic and
global players in upcoming quarters. In addition, Youdao,
NetEase Cloud Music and Yanxuan maintain their
diverse and differentiated offerings. As an innovation-driven
content creator, we will continue to deliver thoughtful premium
content and products to our users across each of our carefully
cultivated disciplines," Mr. Ding concluded.
Third Quarter 2021 Financial Results
Net Revenues
Net revenues for the third quarter of 2021 were
RMB22,190.7 million
(US$3,444.0 million), compared
with RMB20,524.5 million and
RMB18,658.2 million for the
preceding quarter and the third quarter of 2020, respectively.
Net revenues from online game services were RMB15,899.1 million (US$2,467.5 million) for the third quarter of
2021, compared with RMB14,528.1 million and RMB13,862.0 million for the preceding
quarter and the third quarter of 2020, respectively. Net revenues
from mobile games accounted for approximately 69.2% of net
revenues from online game services for the third quarter of 2021,
compared with 72.1% and 72.7% for the
preceding quarter and the third quarter of 2020,
respectively.
Net revenues from Youdao were RMB1,387.3 million (US$215.3 million) for the third quarter of
2021, compared with RMB1,293.4 million and RMB896.0 million for the preceding quarter
and the third quarter of 2020, respectively.
Net revenues from innovative businesses and others were
RMB4,904.4 million (US$761.1 million) for the third quarter of
2021, compared with RMB4,703.0
million and RMB3,900.1 million for the preceding quarter
and the third quarter of 2020, respectively.
Gross Profit
Gross profit for the third quarter of 2021 was RMB11,810.8 million (US$1,833.0 million), compared with
RMB11,189.6 million and
RMB9,885.8 million for the
preceding quarter and the third quarter of 2020, respectively.
The quarter-over-quarter and year-over-year increases in online
game services gross profit were primarily due to increased net
revenues resulting from the launch of new games such as Naraka:
Bladepoint and Harry Potter:
Magic Awakened, as well as from existing games such as
Fantasy Westward Journey Online and Westward Journey
Online II.
The quarter-over-quarter and year-over-year increases in Youdao
gross profit were primarily attributable to the significant
increase in net revenues from improved economies of scale and
faculty compensation structure optimization for its learning
services.
The quarter-over-quarter decrease in innovative businesses and
others gross profit was primarily due to decreased gross profit
from NetEase CC and other services. The year-over-year
increase was primarily due to the increased net revenues from
and improved cost control at NetEase Cloud Music.
Gross Profit Margin
Gross profit margin for online game services for the third
quarter of 2021 was 64.5%, compared with 66.1% and 63.6% for
the preceding quarter and the third quarter of 2020,
respectively. Gross profit margin for online game
services generally fluctuates within a narrow band based on
the revenue mix of mobile and PC games, as well as NetEase's
self-developed and licensed games.
Gross profit margin for Youdao for the third quarter of
2021 was 56.6%, compared with 52.3% and 45.9% for the
preceding quarter and the third quarter of 2020,
respectively. The quarter-over-quarter and year-over-year
increases were primarily attributable to the factors
enumerated above.
Gross profit margin for innovative businesses and others for the
third quarter of 2021 was 15.6%, compared with 19.3% and 16.8%
for the preceding quarter and the third quarter of 2020,
respectively. The fluctuation of gross profit margin is
influenced by revenue contributions of different businesses and
their respective gross profit margin.
Operating Expenses
Total operating expenses for the third quarter of 2021 were
RMB8,035.6 million (US$1,247.1 million), compared with
RMB7,431.5 million and
RMB7,015.7 million for the preceding
quarter and the third quarter of 2020, respectively. The
quarter-over-quarter and year-over-year increases were mainly
due to higher staff-related costs and research and development
investments.
Other Income/ (Expenses)
Other income/ (expenses) comprised investment income/ (loss),
interest income, exchange (losses)/ gains and others. The
quarter-over-quarter and year-over-year changes were mainly due to
investment income/ (loss) arising from fair value changes of
equity investments with readily determinable fair value and
unrealized net exchange (losses)/ gains arising from the Company's
U.S. dollar-denominated bank deposits and short-term loan balances
as the exchange rate of the U.S. dollar against the RMB fluctuated
over the periods.
Income Taxes
The Company recorded a net income tax charge of RMB807.6 million (US$125.3
million) for the third quarter of 2021, compared with
RMB1,113.2 million and RMB342.7 million for the preceding quarter and
the third quarter of 2020, respectively. The effective tax rate for
the third quarter of 2021 was 19.6%, compared with 24.3% and 10.9%
for the preceding quarter and the third quarter of 2020,
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
RMB3,181.8 million (US$493.8 million) for the third quarter of 2021,
compared with RMB3,541.8 million and
RMB2,998.2 million for the preceding
quarter and the third quarter of 2020, respectively.
Non-GAAP net income attributable to the Company's shareholders
totaled RMB3,857.8 million
(US$598.7 million) for the third
quarter of 2021, compared with RMB4,227.9
million and RMB3,669.2 million
for the preceding quarter and the third quarter of 2020,
respectively.
NetEase reported basic net income of US$0.15 per share (US$0.74 per ADS) for the third quarter of 2021,
compared with US$0.16 per share
(US$0.82 per ADS) and US$0.14 per share (US$0.69 per ADS) for the preceding quarter and
the third quarter of 2020, respectively.
NetEase reported non-GAAP basic net income of US$0.18 per share (US$0.90 per ADS) for the third quarter of 2021,
compared with US$0.20 per share
(US$0.98 per ADS) and US$0.17 per share (US$0.84 per ADS) for the preceding quarter and
the third quarter of 2020, respectively.
Quarterly Dividend
The board of directors has approved a dividend of US$0.0450 per share (US$0.2250 per ADS) for the third quarter of 2021,
to holders of ordinary shares and holders of ADSs as of the close
of business on December 1, 2021,
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 December 1, 2021 (Beijing/ Hong Kong Time). The payment date is
expected to be on December 13, 2021
for holders of ordinary shares and on or around December 16, 2021 for holders of ADSs.
NetEase paid a dividend of US$0.0480 per share (US$0.2400 per ADS) for the second quarter of 2021
in September 2021.
The Company's policy is to set quarterly dividends at an amount
equivalent to approximately 20%-30% of the Company's anticipated
net income after tax in each fiscal quarter. The determination to
make dividend distributions and the amount of such distributions in
any particular quarter will be made at the discretion of the board
of directors and will be based upon the Company's operations and
earnings, cash flow, financial condition and other relevant
factors.
Other Information
As of September 30, 2021, the
Company's total cash and cash equivalents, current and non-current
time deposits and short-term investments balance totaled
RMB98.3 billion (US$15.3 billion), compared with RMB100.1 billion as of December 31, 2020. Cash flow generated from
operating activities was RMB6.3
billion (US$976.6 million) for the third quarter of
2021, compared with RMB4.7 billion
and RMB5.4 billion for the
preceding quarter and the third quarter of 2020,
respectively.
Update on Youdao's Disposition of Academic After-School
Tutoring Business
As previously disclosed, in order to comply with applicable
regulatory requirements, Youdao plans to dispose of its
after-school tutoring business for academic subjects included
in China's compulsory education
system. Youdao currently expects the transaction to be completed by
the end of 2021, subject to execution of the definitive agreements
and regulatory approval, although there can be no assurance as to
if or when the proposed transaction will be completed.
Share Repurchase/ Purchase Program
On February 25, 2021, the Company
announced that its board of directors had approved a new share
repurchase program of up to US$2.0
billion of the Company's outstanding ADSs and ordinary
shares in open market transactions for a period not to exceed 24
months beginning on March 2, 2021. On
August 31, 2021, the Company
announced that its board of directors had approved an
amendment to such program to increase the total authorized
repurchase amount to US$3.0 billion.
As of September 30, 2021,
approximately 13.5 million ADSs had been repurchased under this
program for a total cost of US$1.3 billion.
On August 31, 2021, the Company
also announced that its board of directors has approved a share
purchase program of up to US$50.0
million of Youdao's outstanding ADSs for a period not to
exceed 36 months beginning on September
2, 2021. Under the terms of this program, NetEase may
purchase Youdao's ADSs in open-market transactions on the New
York Stock Exchange. As of September 30,
2021, approximately 0.1 million ADSs had been purchased
under this program for a total cost of US$1.8 million.
The extent to which NetEase repurchases its ADSs and its
ordinary shares or purchases Youdao's ADSs will depend upon a
variety of factors, including market conditions. These programs may
be suspended or discontinued at any time.
** The United States dollar
(US$) amounts disclosed in this announcement are presented solely
for the convenience of the reader. Translations of amounts from RMB
into United States dollars for the
convenience of the reader were calculated at the noon buying rate
of US$1.00 = RMB6.4434 on September 30,
2021 as set forth in the H.10 statistical release of the
U.S. Federal Reserve Board. No representation is made that the RMB
amounts could have been, or could be, converted into US$ at that
rate on September 30, 2021, or at any
other certain date. The percentages stated are calculated based on
RMB.
Conference Call
NetEase's management team will host a teleconference call with
simultaneous webcast at 7:00 a.m.
New York Time on Tuesday, November 16,
2021 (Beijing/ Hong Kong
Time: 8:00 p.m., Tuesday, November 16, 2021). 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 1-646-828-8193 and providing conference ID: 1483146, 10-15
minutes prior to the initiation of the call. A replay of the call
will be available by dialing 1-719-457-0820 and entering passcode
1483146#. The replay will be available through November 29, 2021.
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.
As a leading internet technology company based in China, NetEase, Inc. (NASDAQ: NTES and HKEX:
9999, "NetEase") provides premium online services centered around
innovative and diverse content, community, communication and
commerce. NetEase develops and operates some of China's most popular mobile and PC games. In
more recent years, NetEase has expanded into international markets
including Japan and North America. In addition to its
self-developed game content, NetEase partners with other leading
game developers, such as Blizzard Entertainment and Mojang AB (a
Microsoft subsidiary), to operate globally renowned games in
China. NetEase's other innovative
service offerings include the intelligent learning services of its
majority-controlled subsidiary, Youdao (NYSE: DAO); music
streaming through its leading NetEase Cloud Music business;
and its private label e-commerce platform, Yanxuan.
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 statements.
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
game market will not continue to grow or that NetEase will not be
able to maintain its position in that market in China or globally; potential changes in
government regulations, or changes in the interpretation and
implementation of government regulations, that could adversely
affect the industries and geographical markets in which NetEase and
its subsidiaries operate, including, among others, recently
announced government initiatives to enhance supervision of
overseas-listed, China-based
companies and increase scrutiny of data security and cross-border
data flow, as well as recent guidelines restricting certain
activities in China's education
market; the risk that COVID-19 or other health risks in
China or globally could adversely
affect the Company's operations or financial results; 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; 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; competition in
NetEase's existing and potential markets; 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 the 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 these non-GAAP financial measures 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 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
"Unaudited Reconciliation of GAAP and Non-GAAP Results" at the end
of this announcement. NetEase encourages you to review its
financial information in its entirety and not rely on a single
financial measure.
Contact for Media and
Investors:
Margaret Shi
Email: ir@service.netease.com
Tel: (+86) 571-8985-3378
Twitter: https://twitter.com/NetEase_Global
NETEASE,
INC.
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
September
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
9,117,219
|
|
22,266,781
|
|
3,455,750
|
Time
deposits
|
|
71,079,327
|
|
59,412,400
|
|
9,220,660
|
Restricted cash
|
|
3,051,386
|
|
3,461,021
|
|
537,142
|
Accounts
receivable, net
|
|
4,576,445
|
|
5,422,326
|
|
841,532
|
Inventories, net
|
|
621,207
|
|
1,038,607
|
|
161,189
|
Prepayments and other current assets, net
|
|
6,112,433
|
|
7,688,224
|
|
1,193,194
|
Short-term investments
|
|
13,273,026
|
|
9,654,207
|
|
1,498,309
|
Total current
assets
|
|
107,831,043
|
|
108,943,566
|
|
16,907,776
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property, equipment and software, net
|
|
4,555,406
|
|
4,956,832
|
|
769,288
|
Land use
right, net
|
|
4,178,257
|
|
4,112,765
|
|
638,291
|
Deferred
tax assets
|
|
1,086,759
|
|
1,103,624
|
|
171,280
|
Time
deposits
|
|
6,630,000
|
|
6,953,000
|
|
1,079,089
|
Restricted cash
|
|
-
|
|
1,409
|
|
219
|
Other
long-term assets, net
|
|
17,593,117
|
|
21,717,108
|
|
3,370,442
|
Total non-current
assets
|
|
34,043,539
|
|
38,844,738
|
|
6,028,609
|
Total
assets
|
|
141,874,582
|
|
147,788,304
|
|
22,936,385
|
|
|
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interests
and Shareholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
1,134,413
|
|
1,098,916
|
|
170,549
|
Salary
and welfare payables
|
|
3,538,732
|
|
2,584,787
|
|
401,153
|
Taxes
payable
|
|
4,282,835
|
|
4,009,110
|
|
622,204
|
Short-term loans
|
|
19,504,696
|
|
19,614,143
|
|
3,044,067
|
Deferred
revenue
|
|
10,945,143
|
|
13,570,701
|
|
2,106,140
|
Accrued
liabilities and other payables
|
|
7,337,672
|
|
8,130,628
|
|
1,261,854
|
Total current
liabilities
|
|
46,743,491
|
|
49,008,285
|
|
7,605,967
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Deferred
tax liabilities
|
|
713,439
|
|
1,582,558
|
|
245,609
|
Other
long-term payable
|
|
623,728
|
|
747,260
|
|
115,973
|
Total non-current
liabilities
|
|
1,337,167
|
|
2,329,818
|
|
361,582
|
Total
liabilities
|
|
48,080,658
|
|
51,338,103
|
|
7,967,549
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
10,796,120
|
|
11,345,638
|
|
1,760,815
|
|
|
|
|
|
|
|
NetEase, Inc.'s
shareholders' equity
|
|
82,126,798
|
|
83,780,065
|
|
13,002,462
|
Noncontrolling
interests
|
|
871,006
|
|
1,324,498
|
|
205,559
|
Total shareholders'
equity
|
|
82,997,804
|
|
85,104,563
|
|
13,208,021
|
|
|
|
|
|
|
|
Total liabilities,
redeemable noncontrolling
interests and shareholders'
equity
|
|
141,874,582
|
|
147,788,304
|
|
22,936,385
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
18,658,222
|
|
20,524,501
|
|
22,190,749
|
|
3,443,950
|
|
53,905,395
|
|
63,232,461
|
|
9,813,524
|
Cost of
revenues
|
(8,772,379)
|
|
(9,334,887)
|
|
(10,379,981)
|
|
(1,610,948)
|
|
(24,849,755)
|
|
(29,179,440)
|
|
(4,528,578)
|
Gross
profit
|
9,885,843
|
|
11,189,614
|
|
11,810,768
|
|
1,833,002
|
|
29,055,640
|
|
34,053,021
|
|
5,284,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
(3,442,821)
|
|
(3,013,447)
|
|
(3,134,030)
|
|
(486,394)
|
|
(7,627,289)
|
|
(8,914,159)
|
|
(1,383,456)
|
General and
administrative expenses
|
(783,815)
|
|
(1,011,183)
|
|
(1,140,296)
|
|
(176,971)
|
|
(2,561,871)
|
|
(3,101,673)
|
|
(481,372)
|
Research and
development expenses
|
(2,789,051)
|
|
(3,406,859)
|
|
(3,761,239)
|
|
(583,735)
|
|
(7,340,006)
|
|
(10,228,287)
|
|
(1,587,405)
|
Total operating
expenses
|
(7,015,687)
|
|
(7,431,489)
|
|
(8,035,565)
|
|
(1,247,100)
|
|
(17,529,166)
|
|
(22,244,119)
|
|
(3,452,233)
|
Operating
profit
|
2,870,156
|
|
3,758,125
|
|
3,775,203
|
|
585,902
|
|
11,526,474
|
|
11,808,902
|
|
1,832,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income/
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income/
(loss), net
|
1,280,483
|
|
889,392
|
|
(264,611)
|
|
(41,067)
|
|
1,881,911
|
|
1,320,079
|
|
204,873
|
Interest income,
net
|
446,914
|
|
386,207
|
|
349,550
|
|
54,249
|
|
1,188,617
|
|
1,124,685
|
|
174,548
|
Exchange (losses)/
gains, net
|
(1,571,326)
|
|
(591,720)
|
|
153,310
|
|
23,793
|
|
(1,310,261)
|
|
(159,091)
|
|
(24,691)
|
Other, net
|
109,940
|
|
147,588
|
|
117,636
|
|
18,257
|
|
597,847
|
|
413,191
|
|
64,126
|
Income before
tax
|
3,136,167
|
|
4,589,592
|
|
4,131,088
|
|
641,134
|
|
13,884,588
|
|
14,507,766
|
|
2,251,569
|
Income tax
|
(342,700)
|
|
(1,113,228)
|
|
(807,648)
|
|
(125,345)
|
|
(2,489,188)
|
|
(3,194,284)
|
|
(495,745)
|
Net
income
|
2,793,467
|
|
3,476,364
|
|
3,323,440
|
|
515,789
|
|
11,395,400
|
|
11,313,482
|
|
1,755,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion and deemed
dividends in
connection with repurchase of
redeemable noncontrolling interests
|
(118,448)
|
|
(145,415)
|
|
(147,825)
|
|
(22,942)
|
|
(655,425)
|
|
(437,067)
|
|
(67,832)
|
Net loss attributable
to noncontrolling
interests
|
323,221
|
|
210,805
|
|
6,167
|
|
957
|
|
347,077
|
|
286,273
|
|
44,429
|
Net income
attributable to the
Company's shareholders
|
2,998,240
|
|
3,541,754
|
|
3,181,782
|
|
493,804
|
|
11,087,052
|
|
11,162,688
|
|
1,732,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.89
|
|
1.06
|
|
0.96
|
|
0.15
|
|
3.37
|
|
3.34
|
|
0.52
|
Diluted
|
0.87
|
|
1.05
|
|
0.95
|
|
0.15
|
|
3.33
|
|
3.30
|
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per ADS
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
4.43
|
|
5.29
|
|
4.78
|
|
0.74
|
|
16.87
|
|
16.71
|
|
2.59
|
Diluted
|
4.37
|
|
5.23
|
|
4.73
|
|
0.73
|
|
16.65
|
|
16.50
|
|
2.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary
shares used in calculating net income
per share *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
3,384,051
|
|
3,347,507
|
|
3,325,892
|
|
3,325,892
|
|
3,286,194
|
|
3,340,925
|
|
3,340,925
|
Diluted
|
3,431,274
|
|
3,385,953
|
|
3,361,727
|
|
3,361,727
|
|
3,329,149
|
|
3,382,467
|
|
3,382,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
2,793,467
|
|
3,476,364
|
|
3,323,440
|
|
515,789
|
|
11,395,400
|
|
11,313,482
|
|
1,755,824
|
Adjustments to reconcile net
income to net cash provided
by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
913,049
|
|
814,370
|
|
805,485
|
|
125,009
|
|
2,495,256
|
|
2,439,685
|
|
378,633
|
Fair value changes of equity
security investments
|
|
(1,103,428)
|
|
(203,720)
|
|
1,194,338
|
|
185,358
|
|
(1,279,669)
|
|
513,021
|
|
79,620
|
Impairment losses of
investments and other long-term assets
|
|
-
|
|
4,797
|
|
26,055
|
|
4,044
|
|
6,600
|
|
30,852
|
|
4,788
|
Fair value changes of
short-term investments
|
|
(133,943)
|
|
(170,676)
|
|
(184,564)
|
|
(28,644)
|
|
(461,787)
|
|
(473,244)
|
|
(73,446)
|
Share-based compensation
cost
|
|
676,751
|
|
700,114
|
|
688,226
|
|
106,811
|
|
2,034,510
|
|
2,038,593
|
|
316,385
|
(Reversal of)/ allowance for
expected credit losses
|
|
(2,146)
|
|
27,384
|
|
212,010
|
|
32,903
|
|
46,488
|
|
252,998
|
|
39,265
|
Losses on disposal of
property, equipment and software
|
|
2,645
|
|
1,424
|
|
4,008
|
|
622
|
|
3,752
|
|
5,273
|
|
818
|
Unrealized exchange losses/
(gains)
|
|
1,568,627
|
|
572,708
|
|
(157,292)
|
|
(24,411)
|
|
1,305,960
|
|
141,369
|
|
21,940
|
Losses/ (gains) on disposal
of long-term investments,
business and
subsidiaries
|
|
2,995
|
|
(166,505)
|
|
(1)
|
|
-
|
|
(27,241)
|
|
(173,829)
|
|
(26,978)
|
Deferred income
taxes
|
|
(550,137)
|
|
202,894
|
|
307,994
|
|
47,800
|
|
162,220
|
|
838,963
|
|
130,205
|
Share of results on equity
method investees and revaluation
gains from previously
held equity interest
|
|
(28,915)
|
|
(342,760)
|
|
(730,363)
|
|
(113,351)
|
|
(86,074)
|
|
(1,125,015)
|
|
(174,600)
|
Changes in operating assets
and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
43,177
|
|
573,111
|
|
(1,178,290)
|
|
(182,868)
|
|
(885,908)
|
|
(1,089,522)
|
|
(169,091)
|
Inventories
|
|
34,429
|
|
(9,608)
|
|
(154,072)
|
|
(23,911)
|
|
126,198
|
|
(417,175)
|
|
(64,745)
|
Prepayments and other assets
|
|
65,383
|
|
593,379
|
|
(38,490)
|
|
(5,974)
|
|
(804,808)
|
|
(230,335)
|
|
(35,747)
|
Accounts payable
|
|
147,811
|
|
(178,097)
|
|
172,696
|
|
26,802
|
|
(222,565)
|
|
(66,055)
|
|
(10,251)
|
Salary and welfare payables
|
|
(447,645)
|
|
856,775
|
|
(647,029)
|
|
(100,417)
|
|
(853,515)
|
|
(1,016,409)
|
|
(157,744)
|
Taxes payable
|
|
240,464
|
|
(1,397,390)
|
|
(434,893)
|
|
(67,494)
|
|
906,404
|
|
(273,665)
|
|
(42,472)
|
Deferred revenue
|
|
1,000,530
|
|
(381,446)
|
|
2,154,751
|
|
334,412
|
|
1,774,212
|
|
2,514,243
|
|
390,204
|
Accrued liabilities and other payables
|
|
177,853
|
|
(250,312)
|
|
928,647
|
|
144,124
|
|
1,038,491
|
|
1,334,899
|
|
207,173
|
Net cash provided by
operating activities
|
|
5,400,967
|
|
4,722,806
|
|
6,292,656
|
|
976,604
|
|
16,673,924
|
|
16,558,129
|
|
2,569,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
equipment and software
|
|
(350,866)
|
|
(421,872)
|
|
(407,688)
|
|
(63,272)
|
|
(752,225)
|
|
(1,159,306)
|
|
(179,921)
|
Proceeds from sale of
property, equipment and software
|
|
4,903
|
|
2,458
|
|
11,030
|
|
1,712
|
|
9,645
|
|
15,007
|
|
2,329
|
Purchase of intangible
assets, content and licensed
copyrights
|
|
(755,132)
|
|
(566,736)
|
|
(218,168)
|
|
(33,859)
|
|
(1,901,408)
|
|
(1,211,037)
|
|
(187,950)
|
Net change in short-term
investments with terms of three
months or
less
|
|
298,667
|
|
1,668,673
|
|
167,978
|
|
26,070
|
|
601,474
|
|
5,169,261
|
|
802,257
|
Purchase of short-term
investments
|
|
(4,555,000)
|
|
(2,450,000)
|
|
(630,000)
|
|
(97,774)
|
|
(17,705,000)
|
|
(10,985,000)
|
|
(1,704,845)
|
Proceeds from maturities of
short-term investments
|
|
11,295,357
|
|
813,211
|
|
6,251,750
|
|
970,256
|
|
20,528,551
|
|
9,922,302
|
|
1,539,917
|
Investment in long-term
investments and acquisition of
subsidiaries
|
|
(647,533)
|
|
(3,376,973)
|
|
(586,124)
|
|
(90,965)
|
|
(1,373,300)
|
|
(4,521,538)
|
|
(701,732)
|
Proceeds from disposal of
long-term investments,
businesses and
subsidiaries
|
|
397,342
|
|
266,284
|
|
33,731
|
|
5,235
|
|
628,150
|
|
498,915
|
|
77,431
|
Placement/rollover of
matured time deposits
|
|
(26,718,380)
|
|
(27,223,584)
|
|
(11,723,614)
|
|
(1,819,476)
|
|
(76,798,135)
|
|
(54,669,947)
|
|
(8,484,643)
|
Proceeds from maturities of
time deposits
|
|
13,550,559
|
|
25,790,186
|
|
28,328,155
|
|
4,396,461
|
|
46,633,442
|
|
65,599,476
|
|
10,180,879
|
Change in other long-term
assets
|
|
(21,957)
|
|
(44,877)
|
|
(69,429)
|
|
(10,775)
|
|
(108,582)
|
|
(168,959)
|
|
(26,222)
|
Net cash (used in)/ provided
by investing activities
|
|
(7,502,040)
|
|
(5,543,230)
|
|
21,157,621
|
|
3,283,613
|
|
(30,237,388)
|
|
8,489,174
|
|
1,317,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of this announcement.
|
|
|
|
|
|
|
NETEASE,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(CONTINUED)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds of short-term
loans
|
|
68,978
|
|
1,320,614
|
|
612,885
|
|
95,118
|
|
529,452
|
|
2,170,415
|
|
336,843
|
Payment of short-term
loans
|
|
-
|
|
(582,328)
|
|
(235,284)
|
|
(36,516)
|
|
(456,566)
|
|
(985,312)
|
|
(152,918)
|
Net changes in short-term
loans with terms of three months
or less
|
|
1,031,040
|
|
4,978,642
|
|
(7,967,910)
|
|
(1,236,600)
|
|
5,875,786
|
|
(867,227)
|
|
(134,592)
|
Net amounts (paid for)/
received from issuance of shares
in Hong
Kong
|
|
(212)
|
|
-
|
|
-
|
|
-
|
|
22,083,255
|
|
(13,800)
|
|
(2,142)
|
Capital contribution from/
(repurchase of) noncontrolling interests
and redeemable
noncontrolling interests shareholders, net
|
|
4,815
|
|
8,176
|
|
34,800
|
|
5,401
|
|
(278,952)
|
|
1,550,025
|
|
240,560
|
Cash paid for repurchase of
NetEase's/purchase of Youdao's
ADSs
|
|
(2,223,165)
|
|
(2,468,969)
|
|
(6,310,841)
|
|
(979,427)
|
|
(8,045,058)
|
|
(10,798,277)
|
|
(1,675,866)
|
Dividends paid to
shareholders
|
|
(1,377,570)
|
|
(1,278,879)
|
|
(1,028,116)
|
|
(159,561)
|
|
(3,419,251)
|
|
(2,567,837)
|
|
(398,522)
|
Net cash (used in)/ provided
by financing
activities
|
|
(2,496,114)
|
|
1,977,256
|
|
(14,894,466)
|
|
(2,311,585)
|
|
16,288,666
|
|
(11,512,013)
|
|
(1,786,637)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash, cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and restricted cash held in
foreign currencies
|
|
(25,033)
|
|
(25,112)
|
|
14,435
|
|
2,240
|
|
229,123
|
|
25,316
|
|
3,929
|
Net (decrease)/
increase in cash, cash equivalents and restricted
cash
|
|
(4,622,220)
|
|
1,131,720
|
|
12,570,246
|
|
1,950,872
|
|
2,954,325
|
|
13,560,606
|
|
2,104,573
|
Cash, cash
equivalents and restricted cash, at the beginning
of the period
|
|
13,974,405
|
|
12,027,245
|
|
13,158,965
|
|
2,042,239
|
|
6,397,860
|
|
12,168,605
|
|
1,888,538
|
Cash, cash
equivalents and restricted cash, at end of the
period
|
|
9,352,185
|
|
13,158,965
|
|
25,729,211
|
|
3,993,111
|
|
9,352,185
|
|
25,729,211
|
|
3,993,111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income tax,
net
|
|
948,130
|
|
1,240,692
|
|
898,112
|
|
139,385
|
|
1,698,730
|
|
2,688,995
|
|
417,325
|
Cash paid for interest
expense
|
|
47,862
|
|
48,082
|
|
52,765
|
|
8,189
|
|
199,874
|
|
144,749
|
|
22,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of this announcement.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETEASE,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED SEGMENT
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands,
except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game
services
|
|
13,862,035
|
|
14,528,082
|
|
15,899,070
|
|
2,467,497
|
|
41,208,535
|
|
45,408,936
|
|
7,047,356
|
Youdao
|
|
896,041
|
|
1,293,407
|
|
1,387,292
|
|
215,304
|
|
2,060,719
|
|
4,020,566
|
|
623,982
|
Innovative businesses
and others
|
|
3,900,146
|
|
4,703,012
|
|
4,904,387
|
|
761,149
|
|
10,636,141
|
|
13,802,959
|
|
2,142,186
|
Total net
revenues
|
|
18,658,222
|
|
20,524,501
|
|
22,190,749
|
|
3,443,950
|
|
53,905,395
|
|
63,232,461
|
|
9,813,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game
services
|
|
(5,044,177)
|
|
(4,921,966)
|
|
(5,637,027)
|
|
(874,853)
|
|
(14,905,362)
|
|
(15,861,706)
|
|
(2,461,698)
|
Youdao
|
|
(484,488)
|
|
(616,661)
|
|
(601,741)
|
|
(93,389)
|
|
(1,131,902)
|
|
(1,790,817)
|
|
(277,930)
|
Innovative businesses
and others
|
|
(3,243,714)
|
|
(3,796,260)
|
|
(4,141,213)
|
|
(642,706)
|
|
(8,812,491)
|
|
(11,526,917)
|
|
(1,788,950)
|
Total cost of
revenues
|
|
(8,772,379)
|
|
(9,334,887)
|
|
(10,379,981)
|
|
(1,610,948)
|
|
(24,849,755)
|
|
(29,179,440)
|
|
(4,528,578)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game
services
|
|
8,817,858
|
|
9,606,116
|
|
10,262,043
|
|
1,592,644
|
|
26,303,173
|
|
29,547,230
|
|
4,585,658
|
Youdao
|
|
411,553
|
|
676,746
|
|
785,551
|
|
121,915
|
|
928,817
|
|
2,229,749
|
|
346,052
|
Innovative businesses
and others
|
|
656,432
|
|
906,752
|
|
763,174
|
|
118,443
|
|
1,823,650
|
|
2,276,042
|
|
353,236
|
Total gross
profit
|
|
9,885,843
|
|
11,189,614
|
|
11,810,768
|
|
1,833,002
|
|
29,055,640
|
|
34,053,021
|
|
5,284,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game
services
|
|
63.6%
|
|
66.1%
|
|
64.5%
|
|
64.5%
|
|
63.8%
|
|
65.1%
|
|
65.1%
|
Youdao
|
|
45.9%
|
|
52.3%
|
|
56.6%
|
|
56.6%
|
|
45.1%
|
|
55.5%
|
|
55.5%
|
Innovative businesses
and others
|
|
16.8%
|
|
19.3%
|
|
15.6%
|
|
15.6%
|
|
17.1%
|
|
16.5%
|
|
16.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 =
RMB6.4434 on the last trading
day of September 2021 (September 30,
2021) as set forth in the H.10 statistical release of the
U.S. Federal Reserve Board.
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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Share-based
compensation cost included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
200,116
|
|
197,370
|
|
180,669
|
|
28,039
|
|
612,984
|
|
565,965
|
|
87,836
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Selling and
marketing expenses
|
|
25,563
|
|
26,434
|
|
29,289
|
|
4,546
|
|
77,408
|
|
79,954
|
|
12,409
|
- General and
administrative expenses
|
|
236,323
|
|
258,544
|
|
258,805
|
|
40,166
|
|
714,283
|
|
746,952
|
|
115,925
|
- Research and
development expenses
|
|
214,749
|
|
217,766
|
|
219,463
|
|
34,060
|
|
629,835
|
|
645,722
|
|
100,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of this announcement.
|
|
|
|
|
|
|
|
|
|
NETEASE,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
|
|
|
|
|
|
|
|
|
|
(in thousands,
except per share data or per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Net income
attributable to the Company's shareholders
|
|
2,998,240
|
|
3,541,754
|
|
3,181,782
|
|
493,804
|
|
11,087,052
|
|
11,162,688
|
|
1,732,421
|
Add: Share-based
compensation
|
|
671,004
|
|
686,111
|
|
675,999
|
|
104,913
|
|
2,021,102
|
|
2,003,644
|
|
310,961
|
Non-GAAP net income
attributable to the Company's
shareholders
|
|
3,669,244
|
|
4,227,865
|
|
3,857,781
|
|
598,717
|
|
13,108,154
|
|
13,166,332
|
|
2,043,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income per share *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
1.08
|
|
1.26
|
|
1.16
|
|
0.18
|
|
3.99
|
|
3.94
|
|
0.61
|
Diluted
|
|
1.07
|
|
1.25
|
|
1.15
|
|
0.18
|
|
3.94
|
|
3.89
|
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income per ADS *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
5.42
|
|
6.31
|
|
5.80
|
|
0.90
|
|
19.94
|
|
19.70
|
|
3.06
|
Diluted
|
|
5.35
|
|
6.24
|
|
5.74
|
|
0.89
|
|
19.69
|
|
19.46
|
|
3.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Each ADS
represents five ordinary shares.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of this announcement.
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/netease-announces-third-quarter-2021-unaudited-financial-results-301424968.html
SOURCE NetEase, Inc.