HANGZHOU, China, Nov. 16, 2021 /PRNewswire/ —Â NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, “NetEase” or the “Firm”), one in every of China’s main web and on-line recreation providers suppliers, in the present day introduced its unaudited monetary outcomes for the third quarter ended September 30, 2021.
Third Quarter 2021 Monetary Highlights
- Web revenues have been RMB22.2 billion (US$3.Four billion), a rise of 18.9% in contrast with the third quarter of 2020.
– On-line recreation providers internet revenues have been RMB15.9 billion (US$2.5 billion), a rise of 14.7% in contrast with the third quarter of 2020.
– Youdao internet revenues have been RMB1.Four billion (US$215.Three million), a rise of 54.8% in contrast with the third quarter of 2020.
– Progressive companies and others internet revenues have been RMB4.9 billion (US$761.1 million), a rise of 25.7% in contrast with the third quarter of 2020. - Gross revenue was RMB11.Eight billion (US$1.Eight billion), a rise of 19.5% in contrast with the third quarter of 2020.
- Complete working bills have been RMB8.Zero billion (US$1.2 billion), a rise of 14.5% in contrast with the third quarter of 2020.
- Web earnings attributable to the Firm’s shareholders was RMB3.2 billion (US$493.Eight million). Non-GAAP internet earnings attributable to the Firm’s shareholders was RMB3.9 billion (US$598.7 million). [1]Â
- Primary internet earnings per share was US$0.15 (US$0.74 per ADS). Non-GAAP fundamental internet earnings per share was US$0.18 (US$0.90 per ADS). [1]
Third Quarter 2021 and Current Operational Highlights
- Broadened video games portfolio and strengthened international attraction with new video games in numerous genres together with:
– Naraka: Bladepoint, which broke the gross sales report of buy-to-play video games by Chinese language builders and led the Steam top-sellers chart, remaining within the high 5 for weeks following its international launch in August.
– Harry Potter:Â Magic Woke up, which led China’s iOS high grossing chart and high obtain chart following its launch in September.
– Thrilling new titles in China reminiscent of Ace Racer, Infinite Lagrange and Nightmare Breaker.
– Launched The Lord of the Rings: Rise to Battle in Europe, the Americas, Oceania and Southeast Asia. - Prolonged stable reputation of franchise titles together with the Fantasy Westward Journey and Westward Journey On-line sequence.
- Enriched dynamic recreation improvement pipeline with thrilling developments to approaching video games together with The Showbiz: Dream Chaser, the console model of Naraka: Bladepoint, Diablo® Immortal™, in addition to Ghost World Chronicle, and Harry Potter: Magic Woke up in worldwide markets.
- Progressed Youdao’s capabilities as an training expertise supplier, with regular developments in STEAM programs, grownup studying and good studying {hardware} units.
- Expanded NetEase Cloud Music’s content material ecosystem and product innovation capabilities to strengthen its highly-engaged music-enteric neighborhood, delivering a stable monetary efficiency.
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[1]Â As used on this announcement, non-GAAP internet earnings attributable to the Firm’s shareholders and non-GAAP fundamental internet earnings per share and per ADS are outlined to exclude share-based compensation bills. See “Unaudited Reconciliation of GAAP and Non-GAAP Outcomes” on the finish of this announcement. |
“With robust and regular contributions from our on-line recreation providers, our complete internet revenues for the third quarter reached RMB22.2 billion, a rise of 18.9% year-over-year,” stated Mr. William Ding, Chief Govt Officer and Director of NetEase. “It was a really fruitful season of diversification for our on-line video games. Our flagship titles remained robust, and we launched a number of new profitable hits for PC and cellular platforms. New video games reminiscent of Naraka: Bladepoint and Harry Potter: Magic Woke up captured large curiosity from passionate recreation gamers who respect top quality recreation design. We’ll proceed to deliver extra masterpieces to each home and international gamers in upcoming quarters. As well as, Youdao, NetEase Cloud Music and Yanxuan keep their numerous and differentiated choices. As an innovation-driven content material creator, we’ll proceed to ship considerate premium content material and merchandise to our customers throughout every of our rigorously cultivated disciplines,” Mr. Ding concluded.
Third Quarter 2021 Monetary Outcomes
Web Revenues
Web revenues for the third quarter of 2021 have been RMB22,190.7 million (US$3,444.0 million), in contrast with RMB20,524.5 million and RMB18,658.2 million for the previous quarter and the third quarter of 2020, respectively.
Web revenues from on-line recreation providers have been RMB15,899.1 million (US$2,467.5 million) for the third quarter of 2021, in contrast with RMB14,528.1 million and RMB13,862.0 million for the previous quarter and the third quarter of 2020, respectively. Web revenues from cellular video games accounted for about 69.2% of internet revenues from on-line recreation providers for the third quarter of 2021, in contrast with 72.1% and 72.7% for the previous quarter and the third quarter of 2020, respectively.
Web revenues from Youdao have been RMB1,387.3Â million (US$215.3Â million) for the third quarter of 2021, in contrast with RMB1,293.4Â million and RMB896.0Â million for the previous quarter and the third quarter of 2020, respectively.
Web revenues from modern companies and others have been RMB4,904.4Â million (US$761.1Â million) for the third quarter of 2021, in contrast with RMB4,703.Zero million and RMB3,900.1Â million for the previous quarter and the third quarter of 2020, respectively.
Gross Revenue
Gross revenue for the third quarter of 2021Â was RMB11,810.8Â million (US$1,833.0Â million), in contrast with RMB11,189.6Â million and RMB9,885.8Â million for the previous quarter and the third quarter of 2020, respectively.
The quarter-over-quarter and year-over-year will increase in on-line recreation providers gross revenue have been primarily as a consequence of elevated internet revenues ensuing from the launch of recent video games reminiscent of Naraka: Bladepoint and Harry Potter: Magic Woke up, in addition to from current video games reminiscent of Fantasy Westward Journey On-line and Westward Journey On-line II. Â Â Â
The quarter-over-quarter and year-over-year will increase in Youdao gross revenue have been primarily attributable to the numerous improve in internet revenues from improved economies of scale and college compensation construction optimization for its studying providers.Â
The quarter-over-quarter lower in modern companies and others gross revenue was primarily as a consequence of decreased gross revenue from NetEase CC and different providers. The year-over-year improve was primarily because of the elevated internet revenues from and improved price management at NetEase Cloud Music. Â
Gross Revenue Margin
Gross revenue margin for on-line recreation providers for the third quarter of 2021 was 64.5%, in contrast with 66.1% and 63.6% for the previous quarter and the third quarter of 2020, respectively. Gross revenue margin for on-line recreation providers usually fluctuates inside a slim band primarily based on the income mixture of cellular and PC video games, in addition to NetEase’s self-developed and licensed video games.
Gross revenue margin for Youdao for the third quarter of 2021 was 56.6%, in contrast with 52.3% and 45.9% for the previous quarter and the third quarter of 2020, respectively. The quarter-over-quarter and year-over-year will increase have been primarily attributable to the components enumerated above.
Gross revenue margin for modern companies and others for the third quarter of 2021 was 15.6%, in contrast with 19.3% and 16.8% for the previous quarter and the third quarter of 2020, respectively. The fluctuation of gross revenue margin is influenced by income contributions of various companies and their respective gross revenue margin.
Working Bills
Complete working bills for the third quarter of 2021 have been RMB8,035.6 million (US$1,247.1 million), in contrast with RMB7,431.5 million and RMB7,015.7 million for the previous quarter and the third quarter of 2020, respectively. The quarter-over-quarter and year-over-year will increase have been primarily as a consequence of increased staff-related prices and analysis and improvement investments.
Different Revenue/ (Bills)
Different earnings/ (bills) comprised funding earnings/ (loss), curiosity earnings, change (losses)/ positive aspects and others. The quarter-over-quarter and year-over-year modifications have been primarily as a consequence of funding earnings/ (loss) arising from honest worth modifications of fairness investments with readily determinable honest worth and unrealized internet change (losses)/ positive aspects arising from the Firm’s U.S. dollar-denominated financial institution deposits and short-term mortgage balances because the change charge of the U.S. greenback in opposition to the RMB fluctuated over the intervals. Â
Revenue TaxesÂ
The Firm recorded a internet earnings tax cost of RMB807.6 million (US$125.Three million) for the third quarter of 2021, in contrast with RMB1,113.2 million and RMB342.7 million for the previous quarter and the third quarter of 2020, respectively. The efficient tax charge for the third quarter of 2021 was 19.6%, in contrast with 24.3% and 10.9% for the previous quarter and the third quarter of 2020, respectively. The efficient tax charge represents sure estimates by the Firm as to the tax obligations and advantages relevant to it in every quarter.
Web Revenue and Non-GAAP Web Revenue Â
Web earnings attributable to the Firm’s shareholders totaled RMB3,181.Eight million (US$493.Eight million) for the third quarter of 2021, in contrast with RMB3,541.Eight million and RMB2,998.2 million for the previous quarter and the third quarter of 2020, respectively.
Non-GAAP internet earnings attributable to the Firm’s shareholders totaled RMB3,857.Eight million (US$598.7 million) for the third quarter of 2021, in contrast with RMB4,227.9 million and RMB3,669.2 million for the previous quarter and the third quarter of 2020, respectively.
NetEase reported fundamental internet earnings of US$0.15 per share (US$0.74 per ADS) for the third quarter of 2021, in contrast with US$0.16 per share (US$0.82 per ADS) and US$0.14 per share (US$0.69 per ADS) for the previous quarter and the third quarter of 2020, respectively.
NetEase reported non-GAAP fundamental internet earnings of US$0.18 per share (US$0.90 per ADS) for the third quarter of 2021, in contrast with US$0.20 per share (US$0.98 per ADS) and US$0.17 per share (US$0.84 per ADS) for the previous quarter and the third quarter of 2020, respectively.
Quarterly Dividend
The board of administrators has authorized a dividend of US$0.0450 per share (US$0.2250 per ADS) for the third quarter of 2021, to holders of peculiar shares and holders of ADSs as of the shut of enterprise on December 1, 2021, Beijing/ Hong Kong Time and New York Time, respectively, payable in U.S. {dollars}. For holders of peculiar shares, with a view to qualify for the dividend, all legitimate paperwork for the switch of shares accompanied by the related share certificates have to be lodged for registration with the Firm’s Hong Kong department share registrar, Computershare Hong Kong Investor Companies Restricted, at Outlets 1712-1716, 17th Flooring, Hopewell Centre, 183 Queen’s Street East, Wanchai, Hong Kong no later than 4:30 p.m. on December 1, 2021 (Beijing/ Hong Kong Time). The fee date is anticipated to be on December 13, 2021 for holders of peculiar shares and on or round 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 Firm’s coverage is to set quarterly dividends at an quantity equal to roughly 20%-30% of the Firm’s anticipated internet earnings after tax in every fiscal quarter. The dedication to make dividend distributions and the quantity of such distributions in any specific quarter will probably be made on the discretion of the board of administrators and will probably be primarily based upon the Firm’s operations and earnings, money circulate, monetary situation and different related components.
Different Data
As of September 30, 2021, the Firm’s complete money and money equivalents, present and non-current time deposits and short-term investments steadiness totaled RMB98.3Â billion (US$15.3Â billion), in contrast with RMB100.1Â billion as of December 31, 2020. Money circulate generated from working actions was RMB6.Three billion (US$976.6Â million) for the third quarter of 2021, in contrast with RMB4.7 billion and RMB5.4Â billion for the previous quarter and the third quarter of 2020, respectively.Â
Replace on Youdao’s Disposition of Educational After-College Tutoring Enterprise
As beforehand disclosed, with a view to adjust to relevant regulatory necessities, Youdao plans to eliminate its after-school tutoring enterprise for tutorial topics included in China’s obligatory training system. Youdao at the moment expects the transaction to be accomplished by the tip of 2021, topic to execution of the definitive agreements and regulatory approval, though there could be no assurance as to if or when the proposed transaction will probably be accomplished.
Share Repurchase/ Buy Program
On February 25, 2021, the Firm introduced that its board of administrators had authorized a brand new share repurchase program of as much as US$2.Zero billion of the Firm’s excellent ADSs and peculiar shares in open market transactions for a interval to not exceed 24 months starting on March 2, 2021. On August 31, 2021, the Firm introduced that its board of administrators had authorized an modification to such program to extend the full approved repurchase quantity to US$3.Zero billion. As of September 30, 2021, roughly 13.5 million ADSs had been repurchased underneath this program for a complete price of US$1.3 billion.Â
On August 31, 2021, the Firm additionally introduced that its board of administrators has authorized a share buy program of as much as US$50.Zero million of Youdao’s excellent ADSs for a interval to not exceed 36 months starting on September 2, 2021. Beneath the phrases of this program, NetEase could buy Youdao’s ADSs in open-market transactions on the New York Inventory Alternate. As of September 30, 2021, roughly 0.1 million ADSs had been bought underneath this program for a complete price of US$1.Eight million.
The extent to which NetEase repurchases its ADSs and its peculiar shares or purchases Youdao’s ADSs will rely upon quite a lot of components, together with market situations. These applications could also be suspended or discontinued at any time.
** America greenback (US$) quantities disclosed on this announcement are offered solely for the comfort of the reader. Translations of quantities from RMB into United States {dollars} for the comfort of the reader have been calculated on the midday shopping for charge of US$1.00 = RMB6.4434 on September 30, 2021 as set forth within the H.10 statistical launch of the U.S. Federal Reserve Board. No illustration is made that the RMB quantities may have been, or may very well be, transformed into US$ at that charge on September 30, 2021, or at every other sure date. The odds said are calculated primarily based on RMB.Â
Convention Name
NetEase’s administration workforce will host a teleconference name 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 administration will probably be on the decision to debate the quarterly outcomes and reply questions.
events could take part within the convention name by dialing 1-646-828-8193 and offering convention ID: 1483146, 10-15 minutes previous to the initiation of the decision. A replay of the decision will probably be out there by dialing 1-719-457-0820 and coming into passcode 1483146#. The replay will probably be out there via November 29, 2021.Â
This name will probably be webcast reside and the replay will probably be out there for 12 months. Each will probably be out there on NetEase’s Investor Relations web site at http://ir.netease.com/.
About NetEase, Inc.
As a number one web expertise firm primarily based in China, NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, “NetEase”) gives premium on-line providers centered round modern and numerous content material, neighborhood, communication and commerce. NetEase develops and operates a few of China’s hottest cellular and PC video games. In newer years, NetEase has expanded into worldwide markets together with Japan and North America. Along with its self-developed recreation content material, NetEase companions with different main recreation builders, reminiscent of Blizzard Leisure and Mojang AB (a Microsoft subsidiary), to function globally famend video games in China. NetEase’s different modern service choices embrace the clever studying providers of its majority-controlled subsidiary, Youdao (NYSE: DAO); music streaming via its main NetEase Cloud Music enterprise; and its non-public label e-commerce platform, Yanxuan. For extra info, please go to: http://ir.netease.com/.
Ahead Wanting Statements
This announcement incorporates statements of a forward-looking nature. These statements are made underneath the “secure harbor” provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. You’ll be able to determine these forward-looking statements by terminology reminiscent of “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and comparable statements. As well as, statements that aren’t historic info, together with statements about NetEase’s methods and enterprise plans, its expectations concerning the expansion of its enterprise and its income and the quotations from administration on this announcement are or comprise forward-looking statements. NetEase might also make forward-looking statements in its periodic experiences to the U.S. Securities and Alternate Fee (the “SEC”), in bulletins made on the web site of The Inventory Alternate of Hong Kong Restricted (the “Hong Kong Inventory Alternate”), in press releases and different written supplies and in oral statements made by its officers, administrators or staff to 3rd events. The accuracy of those statements could also be impacted by numerous enterprise dangers and uncertainties that might trigger precise outcomes to vary materially from these projected or anticipated, together with dangers associated to: the chance that the web recreation market won’t proceed to develop or that NetEase will be unable to keep up its place in that market in China or globally; potential modifications in authorities rules, or modifications within the interpretation and implementation of presidency rules, that might adversely have an effect on the industries and geographical markets through which NetEase and its subsidiaries function, together with, amongst others, just lately introduced authorities initiatives to boost supervision of overseas-listed, China-based corporations and improve scrutiny of information safety and cross-border knowledge circulate, in addition to current tips limiting sure actions in China’s training market; the chance that COVID-19 or different well being dangers in China or globally may adversely have an effect on the Firm’s operations or monetary outcomes; dangers related to NetEase’s enterprise and working methods and its skill to implement such methods; NetEase’s skill to develop and handle its operations and enterprise; competitors for, amongst different issues, capital, expertise and expert personnel; the chance that NetEase could not have the ability to constantly develop new and inventive on-line providers or that NetEase will be unable to set, or comply with in a well timed method, traits available in the market; competitors in NetEase’s current and potential markets; and the chance that fluctuations within the worth of the Renminbi with respect to different currencies may adversely have an effect on NetEase’s enterprise and monetary outcomes. Additional info concerning these and different dangers is included in NetEase’s filings with the SEC and bulletins on the web site of the Hong Kong Inventory Alternate. NetEase doesn’t undertake any obligation to replace this forward-looking info, besides as required underneath the relevant regulation. Â
Non-GAAP Monetary Measures
NetEase considers and makes use of non-GAAP monetary measures, reminiscent of non-GAAP internet earnings attributable to the Firm’s shareholders and non-GAAP fundamental and diluted internet earnings per ADS and per share, as supplemental metrics in reviewing and assessing its working efficiency and formulating its marketing strategy. The presentation of non-GAAP monetary measures is just not meant to be thought of in isolation or as an alternative choice to the monetary info ready and offered in accordance with accounting rules usually accepted in america of America (“U.S. GAAP”).
NetEase defines non-GAAP internet earnings attributable to the Firm’s shareholders as internet earnings attributable to the Firm’s shareholders excluding share-based compensation bills. Non-GAAP internet earnings attributable to the Firm’s shareholders permits NetEase’s administration to evaluate its working outcomes with out contemplating the impression of share-based compensation bills. NetEase believes that these non-GAAP monetary measures present helpful info to traders in understanding and evaluating the Firm’s present working efficiency and prospects in the identical method as administration does, in the event that they so select. NetEase additionally believes that the usage of this non-GAAP monetary measure facilitates traders’ evaluation of its working efficiency.
Non-GAAP monetary measures will not be outlined underneath U.S. GAAP and will not be offered in accordance with U.S. GAAP. Non-GAAP monetary measures have limitations as analytical instruments. One of many key limitations of utilizing non-GAAP internet earnings attributable to the Firm’s shareholders is that it doesn’t replicate all objects of expense/ earnings that have an effect on our operations. Share-based compensation bills have been and will proceed to be incurred in NetEase’s enterprise and will not be mirrored within the presentation of non-GAAP internet earnings attributable to the Firm’s shareholders. As well as, the non-GAAP monetary measures NetEase makes use of could differ from the non-GAAP measures utilized by different corporations, together with peer corporations, and subsequently their comparability could also be restricted.
NetEase compensates for these limitations by reconciling non-GAAP internet earnings attributable to the Firm’s shareholders to the closest U.S. GAAP efficiency measure, all of which ought to be thought of when evaluating the Firm’s efficiency. See “Unaudited Reconciliation of GAAP and Non-GAAP Outcomes” on the finish of this announcement. NetEase encourages you to overview its monetary info in its entirety and never depend on a single monetary measure.  Â
Contact for Media and Buyers:
Margaret ShiÂ
E mail: [email protected]
Tel: (+86) 571-8985-3378
Twitter: https://twitter.com/NetEase_Global
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NETEASE, INC. |
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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in hundreds) |
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 December 31,  |
September 30, |
 September 30,  |
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2020 |
2021 |
2021 |
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 RMB  |
 RMB  |
 USD (Observe 1) |
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Property |
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Present property: |
||||||||||||||||||||||||||||||
|
  Money and money equivalents |
9,117,219 |
22,266,781 |
3,455,750 |
|||||||||||||||||||||||||||
|
  Time deposits |
71,079,327 |
59,412,400 |
9,220,660 |
|||||||||||||||||||||||||||
|
  Restricted money |
3,051,386 |
3,461,021 |
537,142 |
|||||||||||||||||||||||||||
|
  Accounts receivable, internet |
4,576,445 |
5,422,326 |
841,532 |
|||||||||||||||||||||||||||
|
  Inventories, internet |
621,207 |
1,038,607 |
161,189 |
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|
  Prepayments and different present property, internet |
6,112,433 |
7,688,224 |
1,193,194 |
|||||||||||||||||||||||||||
|
  Brief-term investments |
13,273,026 |
9,654,207 |
1,498,309 |
|||||||||||||||||||||||||||
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Complete present property |
107,831,043 |
108,943,566 |
16,907,776 |
|||||||||||||||||||||||||||
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Non-current property: |
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  Property, gear and software program, internet |
4,555,406 |
4,956,832 |
769,288 |
|||||||||||||||||||||||||||
|
  Land use proper, internet |
4,178,257 |
4,112,765 |
638,291 |
|||||||||||||||||||||||||||
|
  Deferred tax property |
1,086,759 |
1,103,624 |
171,280 |
|||||||||||||||||||||||||||
|
  Time deposits |
6,630,000 |
6,953,000 |
1,079,089 |
|||||||||||||||||||||||||||
|
  Restricted money |
– |
1,409 |
219 |
|||||||||||||||||||||||||||
|
  Different long-term property, internet |
17,593,117 |
21,717,108 |
3,370,442 |
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Complete non-current property |
34,043,539 |
38,844,738 |
6,028,609 |
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Complete property |
141,874,582 |
147,788,304 |
22,936,385 |
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Liabilities, Redeemable Noncontrolling Pursuits |
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Present liabilities: |
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  Accounts payable |
1,134,413 |
1,098,916 |
170,549 |
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  Wage and welfare payables |
3,538,732 |
2,584,787 |
401,153 |
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|
  Taxes payable |
4,282,835 |
4,009,110 |
622,204 |
|||||||||||||||||||||||||||
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  Brief-term loans |
19,504,696 |
19,614,143 |
3,044,067 |
|||||||||||||||||||||||||||
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  Deferred income |
10,945,143 |
13,570,701 |
2,106,140 |
|||||||||||||||||||||||||||
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  Accrued liabilities and different payables |
7,337,672 |
8,130,628 |
1,261,854 |
|||||||||||||||||||||||||||
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Complete present liabilities |
46,743,491 |
49,008,285 |
7,605,967 |
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Non-current liabilities: |
||||||||||||||||||||||||||||||
|
  Deferred tax liabilities |
713,439 |
1,582,558 |
245,609 |
|||||||||||||||||||||||||||
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  Different long-term payable |
623,728 |
747,260 |
115,973 |
|||||||||||||||||||||||||||
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Complete non-current liabilities |
1,337,167 |
2,329,818 |
361,582 |
|||||||||||||||||||||||||||
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Complete liabilities |
48,080,658 |
51,338,103 |
7,967,549 |
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Redeemable noncontrolling pursuits |
10,796,120 |
11,345,638 |
1,760,815 |
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NetEase, Inc.’s shareholders’ fairness |
82,126,798 |
83,780,065 |
13,002,462 |
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Noncontrolling pursuits |
871,006 |
1,324,498 |
205,559 |
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Complete shareholders’ fairness |
82,997,804 |
85,104,563 |
13,208,021 |
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Complete liabilities, redeemable noncontrolling |
141,874,582 |
147,788,304 |
22,936,385 |
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The accompanying notes are an integral a part of this announcement. |
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NETEASE, INC. |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(in hundreds, besides per share knowledge or per ADS knowledge) |
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 Three Months Ended |
 9 Months Ended |
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September 30, |
 June 30, |
 September 30,  |
 September 30,  |
 September 30,  |
 September 30,  |
 September 30,  |
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|
2020 |
2021 |
2021 |
2021 |
2020 |
2021 |
2021 |
||||||||||||||||||
|
 RMB |
 RMB |
 RMB |
 USD (Observe 1) |
RMB |
RMB |
USD (Observe 1) |
||||||||||||||||||
|
Web revenues |
18,658,222 |
20,524,501 |
22,190,749 |
3,443,950 |
53,905,395 |
63,232,461 |
9,813,524 |
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Price of revenues |
(8,772,379) |
(9,334,887) |
(10,379,981) |
(1,610,948) |
(24,849,755) |
(29,179,440) |
(4,528,578) |
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Gross revenue |
9,885,843 |
11,189,614 |
11,810,768 |
1,833,002 |
29,055,640 |
34,053,021 |
5,284,946 |
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Working bills: |
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Promoting and advertising and marketing bills |
(3,442,821) |
(3,013,447) |
(3,134,030) |
(486,394) |
(7,627,289) |
(8,914,159) |
(1,383,456) |
|||||||||||||||||
|
Basic and administrative bills |
(783,815) |
(1,011,183) |
(1,140,296) |
(176,971) |
(2,561,871) |
(3,101,673) |
(481,372) |
|||||||||||||||||
|
Analysis and improvement bills |
(2,789,051) |
(3,406,859) |
(3,761,239) |
(583,735) |
(7,340,006) |
(10,228,287) |
(1,587,405) |
|||||||||||||||||
|
Complete working bills |
(7,015,687) |
(7,431,489) |
(8,035,565) |
(1,247,100) |
(17,529,166) |
(22,244,119) |
(3,452,233) |
|||||||||||||||||
|
Working revenue |
2,870,156 |
3,758,125 |
3,775,203 |
585,902 |
11,526,474 |
11,808,902 |
1,832,713 |
|||||||||||||||||
|
Different earnings/ (bills): |
||||||||||||||||||||||||
|
Funding earnings/ (loss), internet |
1,280,483 |
889,392 |
(264,611) |
(41,067) |
1,881,911 |
1,320,079 |
204,873 |
|||||||||||||||||
|
Curiosity earnings, internet |
446,914 |
386,207 |
349,550 |
54,249 |
1,188,617 |
1,124,685 |
174,548 |
|||||||||||||||||
|
Alternate (losses)/ positive aspects, internet |
(1,571,326) |
(591,720) |
153,310 |
23,793 |
(1,310,261) |
(159,091) |
(24,691) |
|||||||||||||||||
|
Different, internet |
109,940 |
147,588 |
117,636 |
18,257 |
597,847 |
413,191 |
64,126 |
|||||||||||||||||
|
Revenue earlier than tax |
3,136,167 |
4,589,592 |
4,131,088 |
641,134 |
13,884,588 |
14,507,766 |
2,251,569 |
|||||||||||||||||
|
Revenue tax |
(342,700) |
(1,113,228) |
(807,648) |
(125,345) |
(2,489,188) |
(3,194,284) |
(495,745) |
|||||||||||||||||
|
Web earnings |
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 |
(118,448) |
(145,415) |
(147,825) |
(22,942) |
(655,425) |
(437,067) |
(67,832) |
|||||||||||||||||
|
Web loss attributable to noncontrolling |
323,221 |
210,805 |
6,167 |
957 |
347,077 |
286,273 |
44,429 |
|||||||||||||||||
|
Web earnings attributable to the |
2,998,240 |
3,541,754 |
3,181,782 |
493,804 |
11,087,052 |
11,162,688 |
1,732,421 |
|||||||||||||||||
|
Web earnings per share * |
||||||||||||||||||||||||
|
Primary |
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 |
|||||||||||||||||
|
Web earnings per ADS * |
||||||||||||||||||||||||
|
Primary |
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 common variety of peculiar |
||||||||||||||||||||||||
|
Primary |
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 |
|||||||||||||||||
|
*Â Every ADS represents 5 peculiar shares. |
||||||||||||||||||||||||
|
The accompanying notes are an integral a part of this announcement. |
||||||||||||||||||||||||
|
NETEASE, INC. |
||||||||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||||||
|
(in hundreds) |
||||||||||||||||||||
|
Three Months Ended |
 9 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 (Observe 1) |
 RMB  |
 RMB  |
 USD (Observe 1) |
||||||||||||||
|
Money flows from working actions: |
||||||||||||||||||||
|
    Web earnings  |
2,793,467 |
3,476,364 |
3,323,440 |
515,789 |
11,395,400 |
11,313,482 |
1,755,824 |
|||||||||||||
|
    Changes to reconcile internet earnings to internet money supplied |
||||||||||||||||||||
|
    Depreciation and amortization |
913,049 |
814,370 |
805,485 |
125,009 |
2,495,256 |
2,439,685 |
378,633 |
|||||||||||||
|
    Truthful worth modifications of fairness safety investments  |
(1,103,428) |
(203,720) |
1,194,338 |
185,358 |
(1,279,669) |
513,021 |
79,620 |
|||||||||||||
|
    Impairment losses of investments and different long-term property |
– |
4,797 |
26,055 |
4,044 |
6,600 |
30,852 |
4,788 |
|||||||||||||
|
    Truthful worth modifications of short-term investments |
(133,943) |
(170,676) |
(184,564) |
(28,644) |
(461,787) |
(473,244) |
(73,446) |
|||||||||||||
|
    Share-based compensation price |
676,751 |
700,114 |
688,226 |
106,811 |
2,034,510 |
2,038,593 |
316,385 |
|||||||||||||
|
    (Reversal of)/ allowance for anticipated credit score losses |
(2,146) |
27,384 |
212,010 |
32,903 |
46,488 |
252,998 |
39,265 |
|||||||||||||
|
    Losses on disposal of property, gear and software program  |
2,645 |
1,424 |
4,008 |
622 |
3,752 |
5,273 |
818 |
|||||||||||||
|
    Unrealized change losses/ (positive aspects)  |
1,568,627 |
572,708 |
(157,292) |
(24,411) |
1,305,960 |
141,369 |
21,940 |
|||||||||||||
|
    Losses/ (positive aspects) on disposal of long-term investments, |
2,995 |
(166,505) |
(1) |
– |
(27,241) |
(173,829) |
(26,978) |
|||||||||||||
|
    Deferred earnings taxes |
(550,137) |
202,894 |
307,994 |
47,800 |
162,220 |
838,963 |
130,205 |
|||||||||||||
|
    Share of outcomes on fairness methodology investees and revaluation |
(28,915) |
(342,760) |
(730,363) |
(113,351) |
(86,074) |
(1,125,015) |
(174,600) |
|||||||||||||
|
    Adjustments in working property 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 different property |
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) |
|||||||||||||
|
        Wage 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 income |
1,000,530 |
(381,446) |
2,154,751 |
334,412 |
1,774,212 |
2,514,243 |
390,204 |
|||||||||||||
|
        Accrued liabilities and different payables |
177,853 |
(250,312) |
928,647 |
144,124 |
1,038,491 |
1,334,899 |
207,173 |
|||||||||||||
|
    Web money supplied by working actions |
5,400,967 |
4,722,806 |
6,292,656 |
976,604 |
16,673,924 |
16,558,129 |
2,569,781 |
|||||||||||||
|
Money flows from investing actions: |
||||||||||||||||||||
|
    Buy of property, gear and software program |
(350,866) |
(421,872) |
(407,688) |
(63,272) |
(752,225) |
(1,159,306) |
(179,921) |
|||||||||||||
|
    Proceeds from sale of property, gear and software program |
4,903 |
2,458 |
11,030 |
1,712 |
9,645 |
15,007 |
2,329 |
|||||||||||||
|
    Buy of intangible property, content material and licensed |
(755,132) |
(566,736) |
(218,168) |
(33,859) |
(1,901,408) |
(1,211,037) |
(187,950) |
|||||||||||||
|
    Web change in short-term investments with phrases of three |
298,667 |
1,668,673 |
167,978 |
26,070 |
601,474 |
5,169,261 |
802,257 |
|||||||||||||
|
    Buy 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 |
|||||||||||||
|
    Funding in long-term investments and acquisition of |
(647,533) |
(3,376,973) |
(586,124) |
(90,965) |
(1,373,300) |
(4,521,538) |
(701,732) |
|||||||||||||
|
    Proceeds from disposal of long-term investments, |
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 different long-term property |
(21,957) |
(44,877) |
(69,429) |
(10,775) |
(108,582) |
(168,959) |
(26,222) |
|||||||||||||
|
    Web money (utilized in)/ supplied by investing actions |
(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 a part of this announcement. |
||||||||||||||||||||
|
NETEASE, INC. |
||||||||||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) |
||||||||||||||||||||||
|
(in hundreds) |
||||||||||||||||||||||
|
Three Months Ended |
 9 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 (Observe 1) |
 RMB  |
 RMB  |
 USD (Observe 1) |
||||||||||||||||
|
Money flows from financing actions: |
||||||||||||||||||||||
|
    Proceeds of short-term loans |
68,978 |
1,320,614 |
612,885 |
95,118 |
529,452 |
2,170,415 |
336,843 |
|||||||||||||||
|
    Cost of short-term loans |
– |
(582,328) |
(235,284) |
(36,516) |
(456,566) |
(985,312) |
(152,918) |
|||||||||||||||
|
    Web modifications in short-term loans with phrases of three months |
1,031,040 |
4,978,642 |
(7,967,910) |
(1,236,600) |
5,875,786 |
(867,227) |
(134,592) |
|||||||||||||||
|
    Web quantities (paid for)/ acquired from issuance of shares |
(212) |
– |
– |
– |
22,083,255 |
(13,800) |
(2,142) |
|||||||||||||||
|
    Capital contribution from/ (repurchase of) noncontrolling pursuits |
4,815 |
8,176 |
34,800 |
5,401 |
(278,952) |
1,550,025 |
240,560 |
|||||||||||||||
|
    Money paid for repurchase of NetEase’s/buy of Youdao’s |
(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) |
|||||||||||||||
|
    Web money (utilized in)/ supplied by financing actions      |
(2,496,114) |
1,977,256 |
(14,894,466) |
(2,311,585) |
16,288,666 |
(11,512,013) |
(1,786,637) |
|||||||||||||||
|
 Impact of change charge modifications on money, money equivalents |
||||||||||||||||||||||
|
    and restricted money held in foreign currency echange |
(25,033) |
(25,112) |
14,435 |
2,240 |
229,123 |
25,316 |
3,929 |
|||||||||||||||
|
 Web (lower)/ improve in money, money equivalents and restricted money                |
(4,622,220) |
1,131,720 |
12,570,246 |
1,950,872 |
2,954,325 |
13,560,606 |
2,104,573 |
|||||||||||||||
|
Money, money equivalents and restricted money, at the start |
13,974,405 |
12,027,245 |
13,158,965 |
2,042,239 |
6,397,860 |
12,168,605 |
1,888,538 |
|||||||||||||||
|
Money, money equivalents and restricted money, at finish of the |
9,352,185 |
13,158,965 |
25,729,211 |
3,993,111 |
9,352,185 |
25,729,211 |
3,993,111 |
|||||||||||||||
|
Supplemental disclosures of money circulate info: |
||||||||||||||||||||||
|
    Money paid for earnings tax, internet |
948,130 |
1,240,692 |
898,112 |
139,385 |
1,698,730 |
2,688,995 |
417,325 |
|||||||||||||||
|
    Money paid for curiosity expense |
47,862 |
48,082 |
52,765 |
8,189 |
199,874 |
144,749 |
22,465 |
|||||||||||||||
|
The accompanying notes are an integral a part of this announcement. |
||||||||||||||||||||||
|
NETEASE, INC. |
||||||||||||||||||||||||
|
UNAUDITED SEGMENT INFORMATION |
||||||||||||||||||||||||
|
(in hundreds, besides percentages) |
||||||||||||||||||||||||
|
Three Months Ended |
 9 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 (Observe 1) |
RMB |
RMB |
USD (Observe 1) |
||||||||||||||||||
|
Web revenues: |
||||||||||||||||||||||||
|
On-line recreation providers |
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 |
|||||||||||||||||
|
Progressive companies and others |
3,900,146 |
4,703,012 |
4,904,387 |
761,149 |
10,636,141 |
13,802,959 |
2,142,186 |
|||||||||||||||||
|
Complete internet revenues |
18,658,222 |
20,524,501 |
22,190,749 |
3,443,950 |
53,905,395 |
63,232,461 |
9,813,524 |
|||||||||||||||||
|
Price of revenues: |
||||||||||||||||||||||||
|
On-line recreation providers |
(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) |
|||||||||||||||||
|
Progressive companies and others |
(3,243,714) |
(3,796,260) |
(4,141,213) |
(642,706) |
(8,812,491) |
(11,526,917) |
(1,788,950) |
|||||||||||||||||
|
Complete price of revenues |
(8,772,379) |
(9,334,887) |
(10,379,981) |
(1,610,948) |
(24,849,755) |
(29,179,440) |
(4,528,578) |
|||||||||||||||||
|
Gross revenue: |
||||||||||||||||||||||||
|
On-line recreation providers |
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 |
|||||||||||||||||
|
Progressive companies and others |
656,432 |
906,752 |
763,174 |
118,443 |
1,823,650 |
2,276,042 |
353,236 |
|||||||||||||||||
|
Complete gross revenue |
9,885,843 |
11,189,614 |
11,810,768 |
1,833,002 |
29,055,640 |
34,053,021 |
5,284,946 |
|||||||||||||||||
|
Gross revenue margin: |
||||||||||||||||||||||||
|
On-line recreation providers |
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% |
|||||||||||||||||
|
Progressive companies and others |
16.8% |
19.3% |
15.6% |
15.6% |
17.1% |
16.5% |
16.5% |
|||||||||||||||||
|
The accompanying notes are an integral a part of this announcement. |
||||||||||||||||||||||||
NETEASE, INC.
NOTES TO UNAUDITED FINANCIALÂ INFORMATION
Observe 1: The conversion of Renminbi (RMB) into United States {dollars} (USD) relies on the midday shopping for charge of USD1.00 = RMB6.4434Â on the final buying and selling day of September 2021Â (September 30, 2021) as set forth within the H.10 statistical launch of the U.S. Federal Reserve Board.
Observe 2: Share-based compensation price reported within the Firm’s unaudited condensed consolidated statements of complete earnings is about out as follows in RMB and USD (in hundreds):
|
Three Months Ended |
 9 Months Ended |
|||||||||||||||||
|
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
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|
2020 |
2021 |
2021 |
2021 |
2020 |
2021 |
2021 |
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|
RMB |
RMB |
RMB |
USD (Observe 1) |
RMB |
RMB |
USD (Observe 1) |
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|
Share-based compensation price included in: |
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|
Price of revenues |
200,116 |
197,370 |
180,669 |
28,039 |
612,984 |
565,965 |
87,836 |
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|
Working bills |
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|
– Promoting and advertising and marketing bills |
25,563 |
26,434 |
29,289 |
4,546 |
77,408 |
79,954 |
12,409 |
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|
– Basic and administrative bills |
236,323 |
258,544 |
258,805 |
40,166 |
714,283 |
746,952 |
115,925 |
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|
– Analysis and improvement bills |
214,749 |
217,766 |
219,463 |
34,060 |
629,835 |
645,722 |
100,215 |
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|
The accompanying notes are an integral a part of this announcement. |
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|
NETEASE, INC. |
||||||||||||||||||
|
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS |
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|
(in hundreds, besides per share knowledge or per ADS knowledge) |
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|
Three Months Ended |
 9 Months Ended |
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|
 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 (Observe 1) |
RMB |
RMB |
USD (Observe 1) |
||||||||||||
|
Web earnings attributable to the Firm’s shareholders |
2,998,240 |
3,541,754 |
3,181,782 |
493,804 |
11,087,052 |
11,162,688 |
1,732,421 |
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|
Add: Share-based compensation |
671,004 |
686,111 |
675,999 |
104,913 |
2,021,102 |
2,003,644 |
310,961 |
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|
Non-GAAP internet earnings attributable to the Firm’s |
3,669,244 |
4,227,865 |
3,857,781 |
598,717 |
13,108,154 |
13,166,332 |
2,043,382 |
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|
Non-GAAP internet earnings per share * |
||||||||||||||||||
|
Primary |
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 |
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|
Non-GAAP internet earnings per ADS * |
||||||||||||||||||
|
Primary |
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 |
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|
*Â Every ADS represents 5 peculiar shares. |
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|
The accompanying notes are an integral a part of this announcement. |
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SOURCE NetEase, Inc.
Associated Hyperlinks
http://ir.netease.com