HANGZHOU, China, Feb. 20,
2025 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and
HKEX: 9999, "NetEase" or the "Company"), a leading internet and
game services provider, today announced its unaudited financial
results for the fourth quarter and fiscal year ended December 31, 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]
|
[1] As used
in this announcement, non-GAAP net income attributable to the
Company's shareholders and non-GAAP basic and diluted net income
per share and per ADS are defined to exclude share-based
compensation expenses. See the unaudited reconciliation of GAAP and
non-GAAP results at the end of this announcement.
|
Fourth Quarter 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.
- 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.
Contact for Media and Investors:
Email:
ir@service.netease.com
Tel: (+86) 571-8985-3378
|
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.
|
View original
content:https://www.prnewswire.com/news-releases/netease-announces-fourth-quarter-and-fiscal-year-2024-unaudited-financial-results-302381212.html
SOURCE NetEase, Inc.
