BEIJING, Feb. 15, 2017 /PRNewswire/ -- NetEase, Inc.
(NASDAQ: NTES) ("NetEase" or the "Company"), one of China's leading internet and online game
services providers, today announced its unaudited financial results
for the fourth quarter and fiscal year ended December 31, 2016.
"We achieved growth across our business in 2016 as we continued
to introduce internet content to entertain and inspire our
community, growing our total net revenues by 67.4% for the year and
53.1% for the fourth quarter, compared to the same quarter of
2015," said Mr. William Ding, Chief
Executive Officer and Director of NetEase. "Led by mobile games, we
saw year-over-year net revenue increases in the fourth quarter of
62.8% from online games, 9.2% from advertising services, and 38.2%
from our e-mail, e-commerce and others segment."
"With more than 40 new mobile titles in 2016, we have introduced
a number of chart toppers to China's thriving mobile market. In the fourth
quarter, our self-developed mobile games Onmyoji, Tianxia
III mobile and OverOcean, as well as HIT, a
stunning new licensed ARPG, delivered outstanding performances. In
particular, Onmyoji was named one of the top 10 outstanding
games of 2016 in China's iOS app
store. To leverage this game's early success, we began our
international release of Onmyoji in Southeast Asia in December, with plans to roll
out this game in Japan,
Canada, Europe and the
United States later this year. The Westward Journey
Online and Fantasy Westward Journey mobile games and the
mobile version of New Ghost also continued their popularity
in the fourth quarter."
"There remains massive opportunity within the mobile market, and
we will continue to build our formidable and diverse pipeline.
Currently, our mobile portfolio stands strong with more than 100
games, and we plan to add more mobile versions of our legacy titles
and new self-developed and licensed mobile games to further this
momentum. Recently, we released new mobile games including Demon
Seals mobile and Heroes of Tang Dynasty mobile, both of
which were well received. Other new mobile titles planned for
near-term introduction include Westward Journey: Rage, an
exciting ARPG edition to celebrate the 15th anniversary of this
title, and Treasure Hunter,
an innovative RPG."
"Our PC-client games performed steadily in the fourth quarter
with a strong showing from our flagship game Fantasy Westward
Journey Online. We released several new expansion packs during
the fourth quarter to satisfy our PC-client game players, including
Kung Fu Master II, Demon
Seals, Tianxia III, Heroes of Tang Dynasty Zero
and New Ghost. New expansion packs for Fantasy Westward
Journey Online and Revelation were also recently
released, and we expect to introduce a new expansion pack for
New Westward Journey Online II in the coming months."
"Blizzard Entertainment's Overwatch®, World
of Warcraft®, with its latest expansion pack
Legion™, and
Hearthstone® with its latest expansion pack
Mean Streets of Gadgetzan™ also remained
popular among loyal players in China eager for new content, as well as
brought in new players. Overwatch also established a new
sales record in the category of buy-to-play PC-client games in
mainland China, with more than 5
million copies sold by the end of December since its late May
release. Furthermore, we are currently working to bring to Chinese
players both PC and mobile versions of the highly anticipated,
globally acclaimed game, Minecraft."
"As data consumption mediums evolve, the internet, especially
the mobile internet, is becoming the primary advertising platform
in China. This trend supports the
steady growth of our advertising services business. Driven
primarily by our Mobile News App, as well as high-profile
events such as the 2016 NetEase Annual Economist Summit and
the 2016 NetEase Annual Attitude Award Ceremony, our top
performing advertising verticals in the fourth quarter were
automobile, internet services and financial services. Additionally,
our e-commerce business continues to thrive with both
Kaola.com and Yanxuan maintaining healthy growth in
the fourth quarter."
"Our focus on innovation and quality has served us well,
enabling NetEase to create significant value for each of our major
constituencies: our players, our partners and our shareholders. In
2016, we brought best-in-class products and services to our
community and continued to grow our business. As we move through
2017 we will look toward the future, designing products and
services that address fluid market dynamics, enabling continued
growth and value creation," Mr. Ding concluded.
Fourth Quarter 2016 Financial Results
Net Revenues
Net revenues for the fourth quarter of 2016 were RMB12,099.0 million (US$1,742.6 million), compared to RMB9,211.6 million and RMB7,903.0 million for the preceding quarter and
the fourth quarter of 2015, respectively.
Net revenues from online games were RMB8,959.1 million (US$1,290.4 million) for the fourth quarter of
2016, compared to RMB6,568.0 million
and RMB5,502.9 million for the
preceding quarter and the fourth quarter of 2015, respectively.
Net revenues from advertising services were RMB664.8 million (US$95.8
million) for the fourth quarter of 2016, compared to
RMB563.3 million and RMB609.0 million for the preceding quarter and
the fourth quarter of 2015, respectively.
Net revenues from e-mail, e-commerce and others were
RMB2,475.1 million (US$356.5 million) for the fourth quarter of 2016,
compared to RMB2,080.4 million and
RMB1,791.1 million for the preceding
quarter and the fourth quarter of 2015, respectively.
Gross Profit
Gross profit for the fourth quarter of 2016 was RMB6,463.3 million (US$930.9 million), compared to RMB5,333.6 million and RMB4,219.7 million for the preceding quarter and
the fourth quarter of 2015, respectively.
The year-over-year increase in online games gross profit was
primarily driven by increased revenue contribution from mobile
games such as Onmyoji and the mobile version of New
Ghost, as well as Blizzard Entertainment's
Overwatch and World of Warcraft. The
quarter-over-quarter increase in online game gross profit was
primarily driven by increased revenue contribution from mobile
games such as Onmyoji and the mobile version of New
Ghost.
The year-over-year and quarter-over-quarter increases in
advertising services gross profit were primarily attributable to
NetEase's monetization efforts for its mobile applications,
primarily its Mobile News App. The top performing
advertising verticals in the fourth quarter were automobile,
internet services and financial services.
The year-over-year increase in e-mail, e-commerce and others
gross profit was primarily due to increased revenue contribution
from NetEase's e-commerce business, such as Kaola.com. The
quarter-over-quarter decrease in e-mail, e-commerce and others
gross profit was primarily due to decreased revenue contribution
from certain NetEase e-commerce businesses with relatively higher
gross profit margins.
Gross Profit Margin
Gross profit margin for the online games business for the fourth
quarter of 2016 was 60.7%, compared to 65.0% and 67.2% for the
preceding quarter and the fourth quarter of 2015, respectively. The
year-over-year decrease in gross profit margin was mainly due to
increased revenue contribution from mobile games and licensed
games, which have relatively lower gross profit margins, as a
percentage of NetEase's total online games revenues. The
quarter-over-quarter decrease in gross profit margin was mainly due
to the one-off recognition of certain royalty expenses related to
licensed games in the fourth quarter of 2016, as well as increased
revenue contribution from mobile games.
Gross profit margin for the advertising services business for
the fourth quarter of 2016 was 66.5%, compared to 65.3% and 68.1%
for the preceding quarter and the fourth quarter of 2015,
respectively. The year-over-year decrease in gross profit margin
was mainly due to higher staff-related costs.
Gross profit margin for the e-mail, e-commerce and others
business for the fourth quarter of 2016 was 23.4%, compared to
33.5% and 6.0% for the preceding quarter and the fourth quarter of
2015, respectively. The year-over-year and quarter-over-quarter
changes in gross profit margin were primarily attributable to
changes in NetEase's e-commerce business mix.
Operating Expenses
Total operating expenses for the fourth quarter of 2016 were
RMB2,596.6 million (US$374.0 million), compared to RMB2,487.0 million and RMB1,801.7 million for the preceding quarter and
the fourth quarter of 2015, respectively. The year-over-year
increase in operating expenses was mainly due to higher
staff-related costs resulting from an increase in headcount,
average compensation, research and development investments and
selling and marketing expenses. The quarter-over-quarter increase
in operating expenses was mainly due to higher staff-related costs
and research and development investments, which was partially
offset by decreased selling and marketing expenses.
Income Taxes
The Company recorded a net income tax charge of RMB882.0 million (US$127.0
million) for the fourth quarter of 2016, compared to
RMB427.2 million and RMB513.8 million for the preceding quarter and
the fourth quarter of 2015, respectively. The effective tax rate
for the fourth quarter of 2016 was 19.2%, compared to 13.3% and
19.2% for the preceding quarter and the fourth quarter of 2015,
respectively. The quarter-over-quarter change in the effective tax
rate was mainly due to the fact that certain subsidiaries of the
Company were approved as Key Software Enterprises in 2016 and
subject to a preferential tax rate of 10% for 2015. The Company
recognized certain related tax credits in the third quarter of
2016.
Net Income After Tax
Net income attributable to the Company's shareholders for the
fourth quarter of 2016 totaled RMB3.7
billion (US$530.5 million),
compared to RMB2.7 billion and
RMB2.2 billion for the preceding
quarter and the fourth quarter of 2015, respectively. Non-GAAP net
income attributable to the Company's shareholders[1] for
the fourth quarter of 2016 totaled RMB4.0
billion (US$569.9 million),
compared to RMB3.0 billion and
RMB2.4 billion for the preceding
quarter and the fourth quarter of 2015, respectively.
During the fourth quarter of 2016, the Company had a net foreign
exchange gain of RMB90.5 million
(US$13.0 million), compared to net
foreign exchange gains of RMB14.8
million and RMB66.3 million
for the preceding quarter and the fourth quarter of 2015,
respectively. The net foreign exchange gains were mainly due to
unrealized exchange gains and losses arising from the Company's
U.S. dollar-denominated bank deposits and short-term loan balances
as the exchange rate of the U.S. dollar against the RMB fluctuated
over the periods.
NetEase reported basic and diluted earnings per ADS of
US$4.04 and US$4.01, respectively, for the fourth quarter of
2016. The Company reported basic and diluted earnings per ADS of
US$3.01 and US$2.99, respectively, for the preceding quarter,
and basic and diluted earnings per ADS of US$2.37 and US$2.35, respectively, for the fourth quarter of
2015. Non-GAAP[1] basic and diluted earnings per ADS
were US$4.34 and US$4.30, respectively, for the fourth quarter of
2016, compared to non-GAAP basic and diluted earnings per ADS of
US$3.31 and US$3.29, respectively, for the preceding quarter,
and non-GAAP basic and diluted earnings per ADS of US$2.58 and US$2.56, respectively, for the fourth quarter of
2015.
[1] As
used in this press release, non-GAAP net income attributable to the
Company's shareholders is defined to exclude share-based
compensation expenses and impairment on long-term investment of
available-for-sale securities. See "Unaudited Reconciliation of
GAAP and Non-GAAP Results" at the end of this press
release.
|
Fiscal Year 2016 Financial Results
Net Revenues
Total net revenues for fiscal year 2016 were RMB38.2 billion (US$5.5
billion), compared to RMB22.8
billion for the preceding fiscal year. Net revenues from
online games were RMB28.0 billion
(US$4.0 billion) for fiscal year
2016, compared to RMB17.3 billion for
the preceding fiscal year. Net revenues from advertising services
were RMB2.2 billion (US$310.0 million) for fiscal year 2016, compared
to RMB1.8 billion for the preceding
fiscal year. Net revenues from e-mail, e-commerce and others were
RMB8.0 billion (US$1.2 billion) for fiscal year 2016, compared to
RMB3.7 billion for the preceding
fiscal year.
Gross Profit
Gross profit for fiscal year 2016 was RMB21.7 billion (US$3.1
billion), compared to RMB13.4
billion for the preceding fiscal year.
The increase in online game services gross profit in 2016 was
primarily attributable to increased revenue contribution from the
Company's self-developed mobile games such as the Westward
Journey Online and Fantasy Westward Journey mobile
games, Onmyoji and the mobile version of New Ghost,
as well as licensed games such as Blizzard Entertainment's
Overwatch.
The increase in advertising services gross profit in 2016 was
due to NetEase's monetization efforts for its mobile applications,
primarily its Mobile News App. The top performing
advertising verticals in fiscal year 2016 were automobile, internet
services and telecommunication services.
The increase in e-mail, e-commerce and others gross profit in
2016 was primarily due to business development and gross profit
margin improvement of certain NetEase e-commerce businesses.
Operating Expenses
Total operating expenses for fiscal year 2016 were RMB9.0 billion (US$1.3
billion), compared to RMB6.1
billion for the preceding fiscal year. The increase in
operating expenses in 2016 was primarily due to increased selling
and marketing expenses, higher research and development investments
and higher staff-related costs resulting from an increase in
headcount and average compensation.
Income Taxes
The Company recorded a net income tax charge of RMB2.1 billion (US$302.8
million) and RMB1.3 billion
for fiscal years 2016 and 2015, respectively. The effective tax
rate was 15.1% for fiscal year 2016, compared to 15.7% for fiscal
year 2015.
Net Income After Tax
Net income attributable to the Company's shareholders for fiscal
year 2016 totaled RMB11.6 billion
(US$1.7 billion), compared to
RMB6.7 billion for the preceding
fiscal year. Non-GAAP net income attributable to the Company's
shareholders[1] for fiscal year 2016 totaled
RMB12.9 billion (US$1.9 billion), compared to RMB7.4 billion for fiscal year 2015.
For fiscal year 2016, the Company reported a net foreign
exchange gain of RMB146.5 million
(US$21.1 million), compared to a net
foreign exchange gain of RMB133.8
million for the preceding fiscal year. The net foreign
exchange gains were mainly due to unrealized exchange gains and
losses arising from the Company's U.S. dollar-denominated bank
deposit and short-term loan balances as the exchange rate of the
U.S. dollar against the RMB fluctuated over these periods.
NetEase reported basic and diluted earnings per ADS of
US$12.73 and US$12.63, respectively, for fiscal year 2016, and
basic and diluted earnings per ADS of US$7.38 and US$7.34, respectively, for fiscal year 2015.
Non-GAAP basic and diluted earnings per ADS were US$14.11 and US$14.00, respectively, for fiscal year 2016,
compared to non-GAAP basic and diluted earnings per ADS of
US$8.13 and US$8.08, respectively, for fiscal year 2015.
[1] As
used in this press release, non-GAAP net income attributable to the
Company's shareholders is defined to exclude share-based
compensation expenses and impairment on long-term investment of
available-for-sale securities. See "Unaudited Reconciliation of
GAAP and Non-GAAP Results" at the end of this press
release.
|
Quarterly Dividend
The board of directors has approved a dividend of US$1.01 per ADS for the fourth quarter of 2016,
which is expected to be paid on March 10,
2017 to shareholders of record as of the close of business
on March 3, 2017.
NetEase paid a dividend of US$0.73
per ADS for the first quarter of 2016 on June 3, 2016, and US$0.78 per ADS for each of the second and third
quarters of 2016 on September 9, 2016
and December 2, 2016,
respectively.
Under the Company's quarterly dividend policy announced on
May 13, 2014, quarterly dividends
will be set at an amount equivalent to approximately 25% of the
Company's anticipated net income after tax in each fiscal quarter.
The determination to make dividend distributions and the amount of
such distributions in any particular quarter will be made at the
discretion of the board of directors and will be based upon the
Company's operations and earnings, cash flow, financial condition
and other relevant factors.
Other Information
As of December 31, 2016, the
Company's total cash and cash equivalents, current and non-current
time deposits and short-term investments balance totaled
RMB36.9 billion (US$5.3 billion), compared to RMB26.8 billion as of December 31, 2015. Cash flow generated from
operating activities was RMB15.5
billion (US$2.2 billion) for
fiscal year 2016, compared to RMB8.1
billion for the preceding fiscal year.
Share Repurchase Program
On September 1, 2015, the Company
announced that its board of directors approved a share repurchase
program of up to US$500 million of
the Company's outstanding ADSs for a period not to exceed 12
months. NetEase funded repurchases made under this program from
available working capital. As of August 31,
2016, the last day of such program, the Company had
repurchased approximately 1.5 million ADSs for approximately
US$205.3 million under this
program.
On November 15, 2016, the Company
announced that its board of directors approved a new share
repurchase program of up to US$1.0
billion of the Company's outstanding ADSs for a period not
to exceed 12 months. As of December 31,
2016, no ADSs were repurchased under this program.
** The United States dollar
(US$) amounts disclosed in this press release are presented solely
for the convenience of the reader. Translations of amounts from RMB
into United States dollars for the
convenience of the reader were calculated at the noon buying rate
of US$1.00 = RMB6.9430 on December 30,
2016 as set forth in the H.10 statistical release of the
U.S. Federal Reserve Board. No representation is made that the RMB
amounts could have been, or could be, converted into US$ at that
rate on December 30, 2016, or at any
other certain date. The percentages stated are calculated based on
RMB.
Notes to Unaudited Financial Information
The unaudited financial information disclosed in this press
release is preliminary. The audit of the financial statements and
related notes to be included in the Company's annual report on Form
20-F for the year ended December 31,
2016 is still in progress. In addition, because an audit of
the Company's internal controls over financial reporting in
connection with section 404 of the Sarbanes-Oxley Act of 2002 has
not yet been completed, the Company makes no representation as to
the effectiveness of those internal controls as of the end of
fiscal year 2016.
Adjustments to the financial statements may be identified when
the audit work is completed, which could result in significant
differences between the Company's audited financial statements and
this preliminary unaudited financial information.
Conference Call
NetEase's management team will host a teleconference call with
simultaneous webcast at 8:00 p.m. Eastern
Time on Wednesday, February 15,
2017 (Beijing/Hong Kong
Time: 9:00 a.m., Thursday, February 16, 2017). 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 1-888-778-9058 (international: 1-913-312-1227), 10-15
minutes prior to the initiation of the call. A replay of the call
will be available by dialing 1-888-203-1112 (international:
1-719-457-0820), and entering passcode 7293293#. The replay will be
available through March 1, 2017.
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) is a leading internet technology
company in China. Dedicated to
providing online services centered around content, community,
communication and commerce, NetEase develops and operates some of
China's most popular PC-client and
mobile games, advertising services, e-mail services and e-commerce
platforms. In partnership with Blizzard Entertainment, Mojang AB (a
Microsoft subsidiary) and other global game developers, NetEase
also operates some of the most popular international online games
in China. For more
information, please visit: http://ir.netease.com/.
Forward Looking Statements
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward-looking statements by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements.
The accuracy of these statements may be impacted by a number of
business risks and uncertainties that could cause actual results to
differ materially from those projected or anticipated, including
risks related to: the risk that the online game market will not
continue to grow or that NetEase will not be able to maintain its
leading position in that market, which could occur if, for example,
its new online games or expansion packs and other improvements to
its existing games do not become as popular as management
anticipates; the ability of NetEase to successfully expand its
mobile internet offerings; the ability of NetEase to effectively
market its games and other services and achieve a positive return
on its marketing expenditures; the risk that Shanghai EaseNet will
not be able to continue operating World of Warcraft®,
StarCraft® II, Hearthstone®, Diablo
III®: Reaper of Souls™, Heroes of
the Storm®,
Overwatch® or other games licensed by
it for a period of time or permanently due to possible governmental
actions or the risk that such games will not be popular with game
players in China; the risk that
changes in Chinese government regulation of the online game market
and the market for NetEase's e-commerce services may limit future
growth of NetEase's revenues or cause revenues to decline;
competition in the online advertising business and the risk that
investments by NetEase in its content and services may not increase
the appeal of the NetEase websites among internet users or result
in increased advertising revenues; the risk that NetEase may not be
able to continuously develop new and creative online services,
including its ability to maintain and enhance the popularity of its
e-mail, mobile and e-commerce services and develop attractive
mobile games; the risk that NetEase will not be able to control its
expenses in future periods; competition in NetEase's existing and
potential markets; governmental uncertainties (including possible
changes in the effective tax rates applicable to NetEase and its
subsidiaries and affiliates and the ability of NetEase to receive
and maintain approvals of the preferential tax treatments and
general competition and price pressures in the marketplace); the
risk that fluctuations in the value of the Renminbi with respect to
other currencies could adversely affect NetEase's business and
financial results; and other risks outlined in NetEase's filings
with the Securities and Exchange Commission. NetEase does not
undertake any obligation to update this forward-looking
information, except as required under the applicable law.
Non-GAAP Financial Measures
NetEase considers and uses non-GAAP financial measures, such as
non-GAAP net income attributable to the Company's shareholders and
non-GAAP basic and diluted earnings per ADS, 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 and
impairment on long-term investment of available-for-sale
securities. 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 and impairment on long-term investment of
available-for-sale securities, which are non-cash charges or
non-recurring in nature. NetEase believes that these non-GAAP
financial measures provide useful information to investors in
understanding and evaluating the Company's current operating
performance and future 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 that affect our operations. Share-based compensation
expenses and impairment on long-term investment of
available-for-sale securities have been and may continue to be
incurred in our 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
"Reconciliation of GAAP and Non-GAAP Results" at the end of this
press release. NetEase encourages you to review its financial
information in its entirety and not rely on a single financial
measure.
Contact for Media and Investors:
Juliet Yang
NetEase, Inc.
hzyangyy@corp.netease.com
Tel: (+86) 571-8985-3378
Brandi Piacente
Investor Relations
brandi@corp.netease.com
Tel: (+1) 212-481-2050
NETEASE,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(RMB and USD in
thousands)
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2016
|
|
2016
|
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
6,071,487
|
|
5,439,499
|
|
783,451
|
Time
deposits
|
|
14,593,291
|
|
19,361,098
|
|
2,788,578
|
Restricted cash
|
|
2,192,634
|
|
3,473,273
|
|
500,255
|
Accounts
receivable, net
|
|
2,614,149
|
|
4,251,297
|
|
612,314
|
Prepayments and other current assets
|
|
3,513,275
|
|
5,276,082
|
|
759,914
|
Short-term investments
|
|
5,013,499
|
|
11,582,116
|
|
1,668,172
|
Deferred
tax assets
|
|
410,589
|
|
536,339
|
|
77,249
|
Total current
assets
|
|
34,408,924
|
|
49,919,704
|
|
7,189,933
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property, equipment and software, net
|
|
2,092,046
|
|
2,419,510
|
|
348,482
|
Land use
right, net
|
|
238,878
|
|
588,887
|
|
84,817
|
Deferred
tax assets
|
|
24,685
|
|
23,984
|
|
3,455
|
Time
deposits
|
|
1,110,000
|
|
550,000
|
|
79,217
|
Restricted cash
|
|
1,200,000
|
|
2,060,000
|
|
296,702
|
Other
long-term assets
|
|
2,082,897
|
|
2,469,775
|
|
355,722
|
Total non-current
assets
|
|
6,748,506
|
|
8,112,156
|
|
1,168,395
|
Total
assets
|
|
41,157,430
|
|
58,031,860
|
|
8,358,328
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
700,600
|
|
1,396,187
|
|
201,093
|
Salary
and welfare payables
|
|
920,982
|
|
1,491,448
|
|
214,813
|
Taxes
payable
|
|
736,214
|
|
1,722,501
|
|
248,092
|
Short-term loans
|
|
2,272,760
|
|
3,815,691
|
|
549,574
|
Deferred
revenue
|
|
4,651,750
|
|
7,531,238
|
|
1,084,724
|
Accrued
liabilities and other payables
|
|
2,218,330
|
|
3,219,419
|
|
463,693
|
Deferred
tax liabilities
|
|
166,787
|
|
358,514
|
|
51,637
|
Total current
liabilities
|
|
11,667,423
|
|
19,534,998
|
|
2,813,626
|
|
|
|
|
|
|
|
Long-term
payable:
|
|
|
|
|
|
|
Deferred
tax liabilities
|
|
81,434
|
|
33,721
|
|
4,857
|
Other
long-term payable
|
|
84,974
|
|
200
|
|
29
|
Total
liabilities
|
|
11,833,831
|
|
19,568,919
|
|
2,818,512
|
|
|
|
|
|
|
|
Total NetEase, Inc.'s
equity
|
|
29,240,083
|
|
38,191,081
|
|
5,500,660
|
Noncontrolling
interests
|
|
83,516
|
|
271,860
|
|
39,156
|
Total shareholders'
equity
|
|
29,323,599
|
|
38,462,941
|
|
5,539,816
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
41,157,430
|
|
58,031,860
|
|
8,358,328
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of this press release.
|
|
|
|
|
NETEASE,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(RMB and USD in
thousands, except per share data)
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
|
2015
|
|
2016
|
|
2016
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game
services
|
|
5,502,867
|
|
6,568,016
|
|
8,959,140
|
|
1,290,384
|
|
|
17,314,148
|
|
27,980,491
|
|
4,030,029
|
Advertising
services
|
|
608,967
|
|
563,271
|
|
664,815
|
|
95,753
|
|
|
1,789,377
|
|
2,152,379
|
|
310,007
|
E-mail, e-commerce
and others
|
|
1,791,120
|
|
2,080,358
|
|
2,475,065
|
|
356,484
|
|
|
3,699,370
|
|
8,045,974
|
|
1,158,862
|
Total net
revenues
|
|
7,902,954
|
|
9,211,645
|
|
12,099,020
|
|
1,742,621
|
|
|
22,802,895
|
|
38,178,844
|
|
5,498,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of
revenues
|
|
(3,683,268)
|
|
(3,878,071)
|
|
(5,635,741)
|
|
(811,716)
|
|
|
(9,399,260)
|
|
(16,515,032)
|
|
(2,378,660)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
4,219,686
|
|
5,333,574
|
|
6,463,279
|
|
930,905
|
|
|
13,403,635
|
|
21,663,812
|
|
3,120,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
(893,055)
|
|
(1,275,073)
|
|
(1,255,331)
|
|
(180,806)
|
|
|
(2,958,229)
|
|
(4,481,815)
|
|
(645,516)
|
General and
administrative expenses
|
|
(321,855)
|
|
(391,655)
|
|
(464,149)
|
|
(66,851)
|
|
|
(1,014,395)
|
|
(1,506,154)
|
|
(216,931)
|
Research and
development expenses
|
|
(586,759)
|
|
(820,246)
|
|
(877,119)
|
|
(126,331)
|
|
|
(2,158,888)
|
|
(3,046,979)
|
|
(438,856)
|
Total operating
expenses
|
|
(1,801,669)
|
|
(2,486,974)
|
|
(2,596,599)
|
|
(373,988)
|
|
|
(6,131,512)
|
|
(9,034,948)
|
|
(1,301,303)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
2,418,017
|
|
2,846,600
|
|
3,866,680
|
|
556,917
|
|
|
7,272,123
|
|
12,628,864
|
|
1,818,935
|
Other
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income,
net
|
|
32,120
|
|
99,679
|
|
291,960
|
|
42,051
|
|
|
62,341
|
|
200,333
|
|
28,854
|
Interest income,
net
|
|
132,832
|
|
162,145
|
|
125,335
|
|
18,052
|
|
|
596,930
|
|
541,969
|
|
78,060
|
Exchange gains,
net
|
|
66,285
|
|
14,807
|
|
90,461
|
|
13,029
|
|
|
133,776
|
|
146,510
|
|
21,102
|
Other, net
|
|
23,196
|
|
99,387
|
|
219,188
|
|
31,570
|
|
|
45,138
|
|
377,685
|
|
54,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before
tax
|
|
2,672,450
|
|
3,222,618
|
|
4,593,624
|
|
661,619
|
|
|
8,110,308
|
|
13,895,361
|
|
2,001,349
|
Income tax
|
|
(513,770)
|
|
(427,177)
|
|
(882,018)
|
|
(127,037)
|
|
|
(1,273,408)
|
|
(2,102,498)
|
|
(302,823)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income after
tax
|
|
2,158,680
|
|
2,795,441
|
|
3,711,606
|
|
534,582
|
|
|
6,836,900
|
|
11,792,863
|
|
1,698,526
|
Net income
attributable to noncontrolling interests
and mezzanine classified noncontrolling
interests
|
|
5,781
|
|
(55,423)
|
|
(28,506)
|
|
(4,106)
|
|
|
(101,792)
|
|
(188,343)
|
|
(27,127)
|
Net income
attributable to
the Company's shareholders
|
|
2,164,461
|
|
2,740,018
|
|
3,683,100
|
|
530,476
|
|
|
6,735,108
|
|
11,604,520
|
|
1,671,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
basic
|
|
0.66
|
|
0.84
|
|
1.12
|
|
0.16
|
|
|
2.05
|
|
3.54
|
|
0.51
|
Earnings per ADS,
basic
|
|
16.46
|
|
20.90
|
|
28.06
|
|
4.04
|
|
|
51.27
|
|
88.40
|
|
12.73
|
Earnings per share,
diluted
|
|
0.65
|
|
0.83
|
|
1.11
|
|
0.16
|
|
|
2.04
|
|
3.51
|
|
0.51
|
Earnings per ADS,
diluted
|
|
16.34
|
|
20.73
|
|
27.82
|
|
4.01
|
|
|
50.94
|
|
87.72
|
|
12.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of
ordinary shares outstanding, basic
|
|
3,286,917
|
|
3,277,540
|
|
3,281,411
|
|
3,281,411
|
|
|
3,284,382
|
|
3,281,729
|
|
3,281,729
|
Weighted average
number of
ADS outstanding, basic
|
|
131,477
|
|
131,102
|
|
131,256
|
|
131,256
|
|
|
131,375
|
|
131,269
|
|
131,269
|
Weighted average
number of
ordinary shares outstanding, diluted
|
|
3,312,135
|
|
3,304,995
|
|
3,310,275
|
|
3,310,275
|
|
|
3,305,213
|
|
3,307,109
|
|
3,307,109
|
Weighted average
number of
ADS outstanding, diluted
|
|
132,485
|
|
132,200
|
|
132,411
|
|
132,411
|
|
|
132,209
|
|
132,284
|
|
132,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of this press release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NETEASE,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(RMB and USD in
thousands)
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
2,158,680
|
|
2,795,441
|
|
3,711,606
|
|
534,582
|
|
6,836,900
|
|
11,792,863
|
|
1,698,526
|
Adjustments to reconcile net
income to net
cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
54,554
|
|
89,905
|
|
96,653
|
|
13,921
|
|
182,450
|
|
327,515
|
|
47,172
|
Impairment loss for
investments
|
|
12,037
|
|
-
|
|
12,247
|
|
1,764
|
|
12,037
|
|
278,906
|
|
40,171
|
Share-based compensation
cost
|
|
190,483
|
|
277,265
|
|
273,975
|
|
39,461
|
|
684,467
|
|
990,131
|
|
142,609
|
Allowance for/ (reversal of) provision for doubtful
debts
|
|
836
|
|
10,329
|
|
(2,398)
|
|
(345)
|
|
4,041
|
|
9,952
|
|
1,433
|
Losses/(gains) on disposal
of property,
equipment and
software
|
|
6,017
|
|
(404)
|
|
46
|
|
7
|
|
5,903
|
|
1,276
|
|
184
|
Unrealized exchange
gains
|
|
(65,963)
|
|
(22,477)
|
|
(77,989)
|
|
(11,233)
|
|
(116,772)
|
|
(166,638)
|
|
(24,001)
|
Gain on disposal of
long-term investments
|
|
-
|
|
-
|
|
(234,050)
|
|
(33,710)
|
|
-
|
|
(234,050)
|
|
(33,710)
|
Deferred income
taxes
|
|
(19,724)
|
|
49,766
|
|
(14,874)
|
|
(2,142)
|
|
(147,285)
|
|
66,676
|
|
9,603
|
Net equity share of loss
from associated companies
|
|
9,083
|
|
2,917
|
|
36,050
|
|
5,192
|
|
76,134
|
|
85,813
|
|
12,360
|
Fair value changes of
short-term investments
|
|
(51,160)
|
|
(85,413)
|
|
(95,697)
|
|
(13,783)
|
|
(140,104)
|
|
(304,605)
|
|
(43,872)
|
Changes in operating assets
and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(672,343)
|
|
(181,029)
|
|
(1,586,524)
|
|
(228,507)
|
|
(1,744,059)
|
|
(1,646,885)
|
|
(237,201)
|
Prepayments and other current assets
|
|
(19,228)
|
|
71,458
|
|
(968,609)
|
|
(139,509)
|
|
(2,039,087)
|
|
(1,824,362)
|
|
(262,763)
|
Accounts payable
|
|
140,671
|
|
13,156
|
|
517,861
|
|
74,587
|
|
243,140
|
|
604,089
|
|
87,007
|
Salary and welfare payables
|
|
398,228
|
|
(139,693)
|
|
704,875
|
|
101,523
|
|
386,417
|
|
570,466
|
|
82,164
|
Taxes payable
|
|
144,782
|
|
120,128
|
|
667,002
|
|
96,068
|
|
401,924
|
|
986,390
|
|
142,070
|
Deferred revenue
|
|
541,012
|
|
592,143
|
|
2,004,605
|
|
288,723
|
|
2,683,970
|
|
2,879,489
|
|
414,733
|
Accrued liabilities and other payables
|
|
285,928
|
|
136,456
|
|
333,967
|
|
48,102
|
|
746,844
|
|
1,071,240
|
|
154,291
|
Net cash provided by operating activities
|
|
3,113,893
|
|
3,729,948
|
|
5,378,746
|
|
774,701
|
|
8,076,920
|
|
15,488,266
|
|
2,230,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
equipment and software
|
|
(220,268)
|
|
(165,535)
|
|
(463,794)
|
|
(66,800)
|
|
(866,314)
|
|
(1,135,533)
|
|
(163,551)
|
Proceeds from sale of
property, equipment and software
|
|
691
|
|
552
|
|
83
|
|
12
|
|
1,292
|
|
2,064
|
|
297
|
Purchase of other intangible
assets
|
|
-
|
|
(2,429)
|
|
(2,005)
|
|
(289)
|
|
(347)
|
|
(4,434)
|
|
(639)
|
Purchase of land use
right
|
|
(123,787)
|
|
-
|
|
-
|
|
-
|
|
(163,998)
|
|
(60)
|
|
(9)
|
Net change in short-term
investments
with terms of
three months or less
|
|
136,256
|
|
(365,269)
|
|
(2,661,702)
|
|
(383,365)
|
|
(231,306)
|
|
(3,704,332)
|
|
(533,535)
|
Purchase of short-term
investments
|
|
(1,370,000)
|
|
(3,440,000)
|
|
(2,000,000)
|
|
(288,060)
|
|
(5,687,000)
|
|
(12,439,000)
|
|
(1,791,589)
|
Proceeds from maturities of
short-term investments
|
|
664,251
|
|
1,657,273
|
|
3,890,560
|
|
560,357
|
|
3,103,463
|
|
9,879,319
|
|
1,422,918
|
Investment in associated
companies
|
|
-
|
|
(363,586)
|
|
(900)
|
|
(130)
|
|
(187,532)
|
|
(364,486)
|
|
(52,497)
|
Proceeds from disposal of
long-term investments
|
|
-
|
|
-
|
|
249,569
|
|
35,945
|
|
-
|
|
249,569
|
|
35,945
|
Transfer to restricted
cash
|
|
(231,015)
|
|
(845,328)
|
|
(713,162)
|
|
(102,717)
|
|
(763,493)
|
|
(2,140,421)
|
|
(308,285)
|
Placement/rollover of
matured time deposits
|
|
(4,615,772)
|
|
(6,750,017)
|
|
(6,818,322)
|
|
(982,043)
|
|
(19,017,824)
|
|
(20,367,430)
|
|
(2,933,520)
|
Proceeds from maturities of
time deposits
|
|
3,125,866
|
|
5,966,100
|
|
3,911,939
|
|
563,437
|
|
22,582,480
|
|
16,377,449
|
|
2,358,844
|
Net change in other
assets
|
|
(156,401)
|
|
(222,456)
|
|
515
|
|
74
|
|
(1,305,945)
|
|
(354,519)
|
|
(51,061)
|
Net cash used in investing activities
|
|
(2,790,179)
|
|
(4,530,695)
|
|
(4,607,219)
|
|
(663,579)
|
|
(2,536,524)
|
|
(14,001,814)
|
|
(2,016,682)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of this press release.
|
|
|
|
|
|
|
NETEASE,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(CONTINUED)
|
(RMB and USD in
thousands)
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds of short-term bank
loans
|
|
|
2,223,623
|
|
3,005,008
|
|
3,815,678
|
|
549,572
|
|
5,828,758
|
|
11,354,866
|
|
1,635,441
|
Payment of short-term bank
loans
|
|
|
(2,223,623)
|
|
(2,320,920)
|
|
(3,005,010)
|
|
(432,811)
|
|
(5,741,616)
|
|
(9,860,110)
|
|
(1,420,151)
|
Capital contribution from
noncontrolling interests shareholders
|
|
|
15,000
|
|
-
|
|
-
|
|
-
|
|
15,015
|
|
4
|
|
1
|
Repurchase of mezzanine
classified noncontrolling interests
|
|
|
(134,736)
|
|
-
|
|
-
|
|
-
|
|
(134,736)
|
|
-
|
|
-
|
Repurchase of
shares
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(132,192)
|
|
(1,199,102)
|
|
(172,707)
|
Dividends paid to
shareholders
|
|
|
(470,935)
|
|
(683,826)
|
|
(692,524)
|
|
(99,744)
|
|
(1,467,965)
|
|
(2,546,165)
|
|
(366,724)
|
Net cash (used in)/ provided by financing
activities
|
|
|
(590,671)
|
|
262
|
|
118,144
|
|
17,017
|
|
(1,632,736)
|
|
(2,250,507)
|
|
(324,140)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on
cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
held in foreign currencies
|
|
|
68,362
|
|
25,128
|
|
68,025
|
|
9,798
|
|
142,374
|
|
132,067
|
|
19,021
|
Net (decrease)/ increase in cash and cash
equivalents
|
|
|
(198,595)
|
|
(775,357)
|
|
957,696
|
|
137,937
|
|
4,050,034
|
|
(631,988)
|
|
(91,025)
|
Cash and cash
equivalents, beginning of the period
|
|
|
6,270,082
|
|
5,257,160
|
|
4,481,803
|
|
645,514
|
|
2,021,453
|
|
6,071,487
|
|
874,476
|
Cash and cash
equivalents, end of the period
|
|
|
6,071,487
|
|
4,481,803
|
|
5,439,499
|
|
783,451
|
|
6,071,487
|
|
5,439,499
|
|
783,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income tax,
net
|
|
|
353,663
|
|
417,623
|
|
119,585
|
|
17,224
|
|
1,124,339
|
|
1,097,178
|
|
158,027
|
Supplemental
schedule of non-cash investing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed asset purchases
financed by
accounts payable
and accrued liabilities
|
|
|
216,328
|
|
179,662
|
|
260,277
|
|
37,488
|
|
216,328
|
|
260,277
|
|
37,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of this press release.
|
|
|
|
|
|
|
|
|
|
|
|
|
NETEASE,
INC.
|
UNAUDITED SEGMENT
INFORMATION
|
(RMB and USD in
thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game
services
|
|
5,502,867
|
|
6,568,016
|
|
8,959,140
|
|
1,290,384
|
|
17,314,148
|
|
27,980,491
|
|
4,030,029
|
Advertising
services
|
|
608,967
|
|
563,271
|
|
664,815
|
|
95,753
|
|
1,789,377
|
|
2,152,379
|
|
310,007
|
E-mail, e-commerce
and others
|
|
1,791,120
|
|
2,080,358
|
|
2,475,065
|
|
356,484
|
|
3,699,370
|
|
8,045,974
|
|
1,158,862
|
Total net
revenues
|
|
7,902,954
|
|
9,211,645
|
|
12,099,020
|
|
1,742,621
|
|
22,802,895
|
|
38,178,844
|
|
5,498,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game
services
|
|
(1,805,489)
|
|
(2,299,455)
|
|
(3,516,965)
|
|
(506,549)
|
|
(5,393,555)
|
|
(9,974,146)
|
|
(1,436,577)
|
Advertising
services
|
|
(194,179)
|
|
(195,376)
|
|
(223,018)
|
|
(32,121)
|
|
(599,032)
|
|
(749,652)
|
|
(107,972)
|
E-mail, e-commerce
and others
|
|
(1,683,600)
|
|
(1,383,240)
|
|
(1,895,758)
|
|
(273,046)
|
|
(3,406,673)
|
|
(5,791,234)
|
|
(834,111)
|
Total cost of
revenues
|
|
(3,683,268)
|
|
(3,878,071)
|
|
(5,635,741)
|
|
(811,716)
|
|
(9,399,260)
|
|
(16,515,032)
|
|
(2,378,660)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game
services
|
|
3,697,378
|
|
4,268,561
|
|
5,442,175
|
|
783,835
|
|
11,920,593
|
|
18,006,345
|
|
2,593,452
|
Advertising
services
|
|
414,788
|
|
367,895
|
|
441,797
|
|
63,632
|
|
1,190,345
|
|
1,402,727
|
|
202,035
|
E-mail, e-commerce
and others
|
|
107,520
|
|
697,118
|
|
579,307
|
|
83,438
|
|
292,697
|
|
2,254,740
|
|
324,751
|
Total gross
profit
|
|
4,219,686
|
|
5,333,574
|
|
6,463,279
|
|
930,905
|
|
13,403,635
|
|
21,663,812
|
|
3,120,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game
services
|
|
67.2%
|
|
65.0%
|
|
60.7%
|
|
60.7%
|
|
68.8%
|
|
64.4%
|
|
64.4%
|
Advertising
services
|
|
68.1%
|
|
65.3%
|
|
66.5%
|
|
66.5%
|
|
66.5%
|
|
65.2%
|
|
65.2%
|
E-mail, e-commerce
and others
|
|
6.0%
|
|
33.5%
|
|
23.4%
|
|
23.4%
|
|
7.9%
|
|
28.0%
|
|
28.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of this press release.
|
|
|
|
|
|
|
|
|
|
|
NETEASE, INC.
NOTES TO UNAUDITED
FINANCIAL INFORMATION
Note 1: The conversion of Renminbi (RMB) into United States dollars (USD) is based on the
noon buying rate
of
USD1.00 = RMB6.9430 on the last trading day of December 2016 (December
30, 2016) as set
forth
in the H.10 statistical release of the U.S. Federal Reserve
Board.
Note 2: Share-based compensation cost reported in the Company's
unaudited condensed consolidated
statements of comprehensive income is set out as follows in RMB and
USD (in thousands):
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Share-based
compensation cost included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
93,689
|
|
127,344
|
|
114,539
|
|
16,497
|
|
328,480
|
|
444,187
|
|
63,976
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Selling and
marketing expenses
|
|
9,071
|
|
13,743
|
|
14,724
|
|
2,121
|
|
36,023
|
|
52,689
|
|
7,589
|
- General and
administrative expenses
|
|
39,742
|
|
67,613
|
|
71,201
|
|
10,255
|
|
120,925
|
|
238,750
|
|
34,387
|
- Research and
development expenses
|
|
47,981
|
|
68,565
|
|
73,511
|
|
10,588
|
|
199,039
|
|
254,505
|
|
36,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of this press release.
|
|
|
|
|
|
|
|
|
|
|
NETEASE,
INC.
|
UNAUDITED
RECONCILIATION OF GAAP AND NON-GAAP RESULTS
|
(RMB and USD in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
|
RMB
|
|
RMB
|
|
USD (Note
1)
|
Net income
attributable to the Company's shareholders
|
|
2,164,461
|
|
2,740,018
|
|
3,683,100
|
|
530,476
|
|
6,735,108
|
|
11,604,520
|
|
1,671,399
|
Add: Share-based
compensation
|
|
190,483
|
|
277,265
|
|
273,976
|
|
39,461
|
|
684,467
|
|
990,132
|
|
142,608
|
Impairment on investment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
266,659
|
|
38,407
|
Non-GAAP net income
attributable to the Company's shareholders
|
|
2,354,944
|
|
3,017,283
|
|
3,957,076
|
|
569,937
|
|
7,419,575
|
|
12,861,311
|
|
1,852,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per
share, basic
|
|
0.72
|
|
0.92
|
|
1.21
|
|
0.17
|
|
2.26
|
|
3.92
|
|
0.56
|
Non-GAAP earnings per
ADS, basic
|
|
17.91
|
|
23.01
|
|
30.15
|
|
4.34
|
|
56.48
|
|
97.98
|
|
14.11
|
Non-GAAP earnings per
share, diluted
|
|
0.71
|
|
0.91
|
|
1.20
|
|
0.17
|
|
2.24
|
|
3.89
|
|
0.56
|
Non-GAAP earnings per
ADS, diluted
|
|
17.78
|
|
22.82
|
|
29.88
|
|
4.30
|
|
56.12
|
|
97.22
|
|
14.00
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/netease-reports-fourth-quarter-and-fiscal-year-2016-unaudited-financial-results-300408059.html
SOURCE NetEase, Inc.