stevo51
6 years ago
NetEase Kaola ranked China's No.1 cross-border import retail e-commerce platform for sixth consecutive time
PR Newswire
HANGZHOU, China, Aug. 31, 2018
HANGZHOU, China, Aug. 31, 2018 /PRNewswire/ -- NetEase Kaola today announced that it again ranked as the No.1 cross-border import retail e-commerce platform in China as of June 30, 2018 followed by Tmall Global and JD Worldwide.[1] According to iiMedia Research Group's independent August 2018 research report, Netease Kaola has held its No.1 ranking for six consecutive times, with 26.2% market share in the first half of 2018.
In the report, analysts from iiMedia stated that NetEase Kaola's continuous success was generated from its high reputation and large user base, which were built on cost-effective, high-quality and trustworthy products.
"We are proud to see that NetEase Kaola is leading the market and is benefitting from the growing trend of consumption upgrades in China," said Ms. Zhang Lei, CEO of NetEase Kaola, "We have been committed to providing Chinese consumers with high-quality products from established international brands at competitive prices since the very first day. And we will continue that successful momentum by upgrading our supply chain, warehousing and logistics, as well as further improving the online shopping experience for our customers through the application of new technologies."
NetEase Kaola's competitive edge lies in its unique model. It establishes strong relationships with international brands and directly purchases most of its inventory from brands overseas, bypassing intermediaries and local distributors to lower costs, the benefit of which is passed down to consumers. In addition, NetEase Kaola provides a one-stop solution for foreign manufacturers to enter the China's complex market. By handling cross-border logistics, warehousing, online operations and after-sales services, NetEase Kaola enables foreign manufacturers to reach Chinese consumers on a broader and faster scale.
NetEase Kaola currently cooperates with more than 5,000 brands from 80 countries covering apparel, maternity and infant care, household appliances, personal care, health care and other major categories of products.
While enhancing its dominant position in the cross-border e-commerce market, NetEase Kaola is targeting the entire high-quality e-commerce market. With the growing trend of consumption upgrades among the rising middle class in China, high-quality e-commerce is in growing demand. However, the incumbent business model in China has not yet effectively capitalized on this opportunity. NetEase Kaola is designed to fill this gap in the market.
According to a research report recently released by the Boston Consulting Group, about 27% of the world's total consumption growth by 2021 will occur in major economies, bolstered by the rising income level, the growing upper-middle-class and affluent families. Among these economies, China's consumption level will see an increase of nearly US$2 trillion by 2021, driven by the growth of upper-middle-class' consumption capacity.
The promising growth prospects for China's high-quality e-commerce market presents huge opportunities for NetEase Kaola, especially in the case that the platform continues to focus on providing the right product with the right price and high quality along with excellent shopping experience, to maintain its market leading position.
NetEase Kaola, alongside with NetEase Yanxuan, constitutes NetEase's e-commerce business which has already transformed into a core part of NetEase's business. In the second quarter of 2018, NetEase's e-commerce business generated US$659.7 million in revenues. For fiscal year 2017, net revenues of e-commerce wereUS$1.8 billion, an increase of 157% compared with 2016.
About NetEase Kaola
NetEase Kaola is China's leading cross-border e-commerce platform. It provides a platform for international brands to sell their products securely to Chinese consumers and for Chinese consumers to purchase safe, high-quality international premium goods in a convenient way. Launched in 2015, it carries over 5,000 brands from 80 countries.
About NetEase, Inc.
NetEase, Inc. (NASDAQ:NTES) is a leading internet technology company in China dedicated to providing online services centered on content, community, communication and commerce. NetEase develops and operates some of China's most popular PC-client and mobile games, and partners with Blizzard Entertainment, Mojang AB (a Microsoft subsidiary) and other global game developers to operate some of the most popular international online games in China. NetEase also operates Kaola.com and Yanxuan, two e-commerce platforms that cater to the rising middle-class consumer market in China. In addition, NetEase offers advertising, e-mail and other services. For more information, please visit: http://ir.netease.com/.
stocktrademan
9 years ago
$NTES recent news/filings
bullish 183.85
recent surge in green CMF
higher highs higher lows uptrend
stochastics crossing up
translated website
http://translate.google.com/translate?hl=en&sl=zh-CN&tl=en&u=http://www.netease.com/&sandbox=0&usg=ALkJrhiN5nJGXbHUjQTdQaYHdIYH5Ouzmw
## source: finance.yahoo.com
Thu, 24 Dec 2015 22:30:00 GMT ~ NetEase Snubs China Sell-Off To Advance Big In 2015
[at Investor's Business Daily] - NetEase started this year in a test of support at its 10-week moving average, not quite 9% below a late-November high. The Guangzhou, China-based firm, trading its American depositary receipts on the Nasdaq, ...
read full: http://news.investors.com/122415-786890-netease-gets-unexpected-gain-in-2015.htm?ven=yahoocp&src=aurlled&ven=yahoo
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Wed, 23 Dec 2015 21:11:00 GMT ~ Smith & Wesson Leads Top 5 IBD 50 Performers In '15
read full: http://news.investors.com/122315-786679-netease-universal-display-dycom-cambrex-smith-wesson-top-ibd-50-stocks.htm?ven=yahoocp&src=aurlled&ven=yahoo
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Wed, 23 Dec 2015 21:05:00 GMT ~ This Top-Rated Stock Has Surged 135% In 2015
read full: http://finance.yahoo.com/video/top-rated-stock-surged-135-210500314.html
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Wed, 23 Dec 2015 11:00:00 GMT ~ NetEase Reveals New Major PC and Mobile Games at NetEase Games' 2015 Award Ceremony
[PR Newswire] - BEIJING, Dec. 23, 2015 /PRNewswire/ -- NetEase, Inc. (NTES), one of China's leading Internet and online game services providers, today announced that it unveiled 26 new mobile and PC-client games at the NetEase Games 2015 Award Ceremony. The Company's new games slated for release will include 14 RPG and ARPG games that will primarily be self-developed, along with select licensed games. Building on the tremendous success of NetEase's Fantasy Westward Journey and Westward Journey Online mobile games, NetEase plans to bring a number of popular PC-client games to mobile users, with introductions for the mobile companion of New Ghost, called A Chinese Ghost Story, and the mobile version of DaTang planned for the second quarter of 2016.
read full: http://finance.yahoo.com/news/netease-reveals-major-pc-mobile-110000082.html
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Tue, 22 Dec 2015 23:09:00 GMT ~ China's Stealth Base Makers: Alibaba, Trina Solar
read full: http://news.investors.com/122215-786526-alibaba-and-trina-form-bases.htm?ven=yahoocp&src=aurlled&ven=yahoo
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$NTES charts
basic chart ## source: stockcharts.com
basic chart ## source: stockscores.com
big daily chart ## source: stockcharts.com
big weekly chart ## source: stockcharts.com
$NTES company information
## source: otcmarkets.com
Link: http://www.otcmarkets.com/stock/NTES/company-info
Ticker: $NTES
OTC Market Place: Not Available
CIK code: 0001110646
Company name: NetEase, Inc.
Company website: http://www.corp.163.com/eng/home.shtml
Incorporated In: Cayman Islands
$NTES share structure
## source: otcmarkets.com
Market Value: $938,039,470 a/o Dec 24, 2015
Shares Outstanding: 127,555,000 a/o Mar 28, 2006
Float: Not Available
Authorized Shares: Not Available
Par Value: 0.0001
$NTES extra dd links
Company name: NetEase, Inc.
Company website: http://www.corp.163.com/eng/home.shtml
## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/NTES/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/NTES/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=NTES+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=NTES+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=NTES+Industry
## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/news - http://finance.yahoo.com/q/h?s=NTES+Headlines
## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/NTES/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/NTES/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/NTES/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/NTES/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=NTES+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/NTES
DTCC (dtcc.com): http://search2.dtcc.com/?q=NetEase%2C+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=NetEase%2C+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=NetEase%2C+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.corp.163.com/eng/home.shtml
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.corp.163.com/eng/home.shtml#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.corp.163.com/eng/home.shtml
## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/NTES/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/NTES
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/NTES/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/NTES/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/NTES/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001110646&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/NTES/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/NTES/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=NTES&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=NTES
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=NTES+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=NTES+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=NTES
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=NTES
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=NTES+Cash+Flow&annual
## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/NTES/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=NTES+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/NTES.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=NTES
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/NTES/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/NTES/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/NTES/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/insider-transactions
## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/NTES
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/NTES
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/NTES:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=NTES
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=NTES
$NTES DD Notes ~ http://www.ddnotesmaker.com/NTES
stocktrademan
10 years ago
$NTES DD Notes ~ http://www.ddnotesmaker.com/NTES
bullish very long term
$NTES recent news/filings
## source: finance.yahoo.com
Wed, 22 Oct 2014 11:00:00 GMT ~ NetEase to Report Third Quarter 2014 Financial Results on November 12, 2014
[PR Newswire] - BEIJING, Oct. 22, 2014 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES) today announced that it will report its financial results for the 2014 third quarter on Wednesday, November 12, 2014, after the close ...
read full: http://finance.yahoo.com/news/netease-report-third-quarter-2014-110000156.html
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Tue, 21 Oct 2014 13:45:00 GMT ~ New Lifetime High Reached: NetEase (NTES)
[at TheStreet] - Trade-Ideas LLC identified NetEase (NTES) as a new lifetime high candidate
read full: http://www.thestreet.com/story/12921468/1/new-lifetime-high-reached-netease-ntes.html?puc=yahoo&cm_ven=YAHOO
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Wed, 15 Oct 2014 16:01:00 GMT ~ Major Averages Pare Losses, Then Head Lower Again
[at Investor's Business Daily] - Stocks headed lower again in late-morning trade after paring steep early losses sparked by weak economic data. The S&P 500 and Dow industrials sank 1.5% each, while the Nasdaq was down 1.3%. The tech-heavy ...
read full: http://news.investors.com/101514-721845-major-averages-pare-losses-then-head-lower-again.htm?ven=yahoocp&src=aurlled&ven=yahoo
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Thu, 09 Oct 2014 17:25:00 GMT ~ Prior Day's Gains Nearly Gone; NetEase Hits Resistance
read full: http://news.investors.com/100914-721021-stock-market-today-in-big-retreat.htm?ven=yahoocp&src=aurlled&ven=yahoo
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Tue, 23 Sep 2014 18:06:00 GMT ~ Can China Games IPO iDreamSky Keep Investors Happy?
read full: http://news.investors.com/092314-718585-idreamsky-a-play-on-china-mobile-game-market.htm?ven=yahoocp&src=aurlled&ven=yahoo
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$NTES charts
basic chart ## source: stockcharts.com
basic chart ## source: stockscores.com
big daily chart ## source: stockcharts.com
big weekly chart ## source: stockcharts.com
$NTES company information
## source: otcmarkets.com
Link: http://www.otcmarkets.com/stock/NTES/company-info
Ticker: $NTES
OTC Market Place: Not Available
CIK code: 0001110646
Company name: NetEase, Inc.
Company website: http://www.corp.163.com/eng/home.shtml
Incorporated In: Cayman Islands
$NTES share structure
## source: otcmarkets.com
Market Value: $469,249,334 a/o Oct 27, 2014
Shares Outstanding: 127,555,000 a/o Mar 28, 2006
Float: Not Available
Authorized Shares: Not Available
Par Value: 0.0001
$NTES extra dd links
Company name: NetEase, Inc.
Company website: http://www.corp.163.com/eng/home.shtml
## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/NTES/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/NTES/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=NTES+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=NTES+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=NTES+Industry
## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/news - http://finance.yahoo.com/q/h?s=NTES+Headlines
## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/NTES/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/NTES/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/NTES/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/NTES/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/NTES/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=NTES+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/NTES
DTCC (dtcc.com): http://search2.dtcc.com/?q=NetEase%2C+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=NetEase%2C+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=NetEase%2C+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.corp.163.com/eng/home.shtml
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.corp.163.com/eng/home.shtml#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.corp.163.com/eng/home.shtml
## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/NTES/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/NTES
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/NTES/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/NTES/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/NTES/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001110646&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/NTES/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/NTES/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=NTES&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=NTES
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=NTES+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=NTES+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=NTES
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=NTES
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=NTES+Cash+Flow&annual
## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/NTES/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=NTES+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/NTES.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=NTES
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/NTES/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/NTES/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/NTES/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/NTES/insider-transactions
## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/NTES
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/NTES
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/NTES:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=NTES
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=NTES
$NTES DD Notes ~ http://www.ddnotesmaker.com/NTES
eastunder
11 years ago
NetEase Reports Third Quarter 2013 Unaudited Financial Results
November 13, 2013 6:00 PM EST
http://www.streetinsider.com/Press+Releases/NetEase+Reports+Third+Quarter+2013+Unaudited+Financial+Results/8883665.html
BEIJING, Nov. 13, 2013 /PRNewswire-FirstCall/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced its unaudited financial results for the third quarter ended September 30, 2013.
"We continue to broaden the platforms for our traditional and mobile Internet product and service offerings," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "During the third quarter we completed key upgrades for two of our most popular games, increased our investment in the mobile Internet business and entered the mobile instant messaging space with the launch of YiChat. These critical advancements support our growth objectives, and for the third quarter we increased our revenues by 23.0% year-over-year, with revenues from our online games and advertising services increasing by 21.0% and 22.9%, respectively."
"Our self-developed traditional and mobile game offerings are resonating well with our audiences. During the third quarter, one of our most popular games, Fantasy Westward Journey II, delivered an excellent performance following the early July launch of its comprehensive upgrade, along with the game's accompanying pocket mobile version. This pocket mobile version has extended the reach of our game from the PC to mobile platforms, and user feedback continues to be favorable. In addition, the exciting new version we launched for Westward Journey Online II in September -now known as New Westward Journey Online II- was a significant upgrade for this classic game, which is stimulating players' enthusiasm and demonstrating positive user trends."
"Our newer games are also performing in-line with our expectations. The expansion pack launched in June for Heroes of Tang Dynasty II was well received by players and contributed to our revenue growth for the period. For our other game titles, we expect heightened interest in the coming periods as we introduced new expansion packs for Ghost II and Kung Fu Master in September and October, respectively, and have expansion packs planned in the fourth quarter for Heroes of Tang Dynasty II, Tianxia III and Legend of Fairy. Our development schedule is also progressing smoothly. User feedback has been encouraging following our initial commercial launch of Heroes of Three Kingdoms in April and Dragon Sword in August. Large-scale promotional activities were launched for those two games in September and November, respectively, and earlier this month, we commercially launched Legend of Tibet, a 2.5D MMORPG. Before the end of year, we also expect to introduce several high quality mobile games. For 2014, we currently plan to release our first person shooter game, Crisis 2015, in the first half of 2014 and we are preparing to introduce another new game: Revelation, a 3-D epic fantasy MMORPG that we have been developing for the past three years. Revelation features exceptional computer-generated graphic effects using cutting-edge technology and integrates traditional MMO styles with enhanced action elements to provide young players with cool and fast-paced fighting experiences."
"The upcoming open beta test in mainland China of Blizzard Entertainment's highly anticipated Hearthstone™: Heroes of Warcraft™ will become another important milestone. This new free-to-play online collectible card game featuring legendary heroes, spells and minions from the Warcraft universe, is simple to play yet highly engaging, and we look forward to providing our players with this great gaming experience."
"Turning to our portal, our advertising services revenue increased both sequentially and year-over-year with the largest revenue contributions coming from the automobile, Internet services and fast moving consumer goods sectors. We now have a number of fast growing mobile applications, which provide an important platform for delivery of our value-added services and advertisements. YiChat has been one of our most exciting new additions, and we are extremely pleased to have partnered with China Telecom to launch this instant messaging application. Attracting considerable attention from the Chinese community, downloads for YiChat exceeded 1 million on the first day of its launch in August, and it had reached more than 30 million users by the end of October. YiChat significantly advances our mobile Internet strategy, and we continue to grow our community of loyal users across our robust portals. As of September 30, 2013, we had over 590 million e-mail users and 160 million installations of our leading Mobile News application."
"We see a great opportunity to integrate and expand our traditional online games and services with complementary mobile Internet offerings that broaden our customer base. We will continue to develop our mobile social networking platform and introduce new products and games to support this strategy. As a pioneer in China's Internet market, we are dedicated to providing our community with competitive products and services that honor our commitment to quality, while simultaneously creating additional value for our shareholder partners," Mr. Ding concluded.
Third Quarter 2013 Financial Results
Revenues
Total revenues for the third quarter of 2013 were RMB2,514.3 million (US$410.8 million), compared to RMB2,413.8 million and RMB2,044.9 million for the preceding quarter and the third quarter of 2012, respectively.
Revenues from online games were RMB2,105.5 million (US$344.0 million) for the third quarter of 2013, compared to RMB2,066.5 million and RMB1,739.9 million for the preceding quarter and the third quarter of 2012, respectively.
Revenues from advertising services were RMB298.8 million (US$48.8 million) for the third quarter of 2013, compared to RMB272.2 million and RMB243.0 million for the preceding quarter and the third quarter of 2012, respectively.
Revenues from e-mail, wireless value-added services and others ("E-mail, WVAS and others") were RMB110.1 million (US$18.0 million) for the third quarter of 2013, compared to RMB75.1 million and RMB61.9 million for the preceding quarter and the third quarter of 2012, respectively.
Sales Taxes
Total sales taxes for the third quarter of 2013 were RMB157.7 million (US$25.8 million), compared to RMB149.3 million and RMB42.9 million for the preceding quarter and the third quarter of 2012, respectively. The year-over-year increase in sales taxes was mainly due to a change in the tax rules in China, which resulted in the Company's online game revenues gradually becoming subject to value-added tax instead of business tax since 2013. This change in tax rules did not have a significant impact on gross profit from the Company's online game services business segment as the increase in value-added tax was substantially offset by a reduction in business taxes on intra-group revenues, which were previously recorded in cost of revenues. As a result, the year-over-year increase in gross profit margin was primarily attributable to lower net revenue due to the increased value-added tax in sales taxes.
Gross Profit
Gross profit for the third quarter of 2013 was RMB1,746.8 million (US$285.4 million), compared to RMB1,697.6 million and RMB1,361.9 million for the preceding quarter and the third quarter of 2012, respectively.
The year-over-year increase in gross profit was primarily attributable to increased gross profit from NetEase's online game and advertising businesses.
The year-over-year increase in online game revenues was primarily driven by increased revenues from the Company's self-developed games, primarily Fantasy Westward Journey II, Kung Fu Master, Heroes of Tang Dynasty II and New Westward Journey Online II, which was partially offset by a decline in revenue from World of Warcraft®, a game licensed from Blizzard Entertainment.
The year-over-year increase in advertising services revenues was primarily due to a rise in demand, mainly from sectors such as automobile, Internet services and real estate.
The quarter-over-quarter increase in gross profit was primarily attributable to increased gross profit from NetEase's advertising services due to the reason mentioned above, and increased revenues from the one-off sale of certain game accessories, such as a limited edition pack for NetEase's New Westward Journey Online II, which is included in the E-mail, WVAS and others business.
Gross Profit (Loss) Margin
Gross profit margin for the online game business for the third quarter of 2013 was 79.7%, compared to 80.9% and 74.2% for the preceding quarter and the third quarter of 2012, respectively. The year-over-year increase in gross profit margin was mainly due to the changes in tax rules as mentioned above.
Gross profit margin for the advertising business for the third quarter of 2013 was 59.4%, compared to 55.5% and 36.2% for the preceding quarter and the third quarter of 2012, respectively. The increase in gross profit margin reflects the Company's ability to effectively scale its advertising business.
Gross profit margin for the E-mail, WVAS and others business for the third quarter of 2013 was 4.1%, compared to gross loss margin of 21.0% and gross profit margin of 6.0% for the preceding quarter and the third quarter of 2012, respectively. The increase in gross profit margin was mainly due to increased revenue contribution from sales of higher margin game accessories.
Operating Expenses
Total operating expenses for the third quarter of 2013 were RMB635.2 million (US$103.8 million), compared to RMB626.0 million and RMB537.5 million for the preceding quarter and the third quarter of 2012, respectively. The year-over-year increase in operating expenses was mainly due to increased staff related cost resulting from an increase in the number of employees and average compensation, as well as higher research and development investments. The quarter-over-quarter increase in operating expenses was mainly due to increased general and administrative expenses and research and development expenses, which were partially offset by decreased selling and marketing expenditures for licensed games in this quarter.
Income Taxes
The Company recorded a net income tax charge of RMB206.5 million (US$33.7 million) for the third quarter of 2013, compared to RMB131.8 million and RMB194.8 million for the preceding quarter and the third quarter of 2012, respectively. The effective tax rate for the third quarter of 2013 was 16.5%, compared to 10.8% and 19.9% for the preceding quarter and the third quarter of 2012, respectively. The quarter-over-quarter increase in effective tax rate was due to the Company recognizing RMB47.1 million in tax credits related to certain incentives for a deduction in research and development expenses agreed on by tax authorities during the annual tax filing of the Company's PRC entities in the preceding quarter. The year-over-year decrease in effective tax rate was due to the occurrence of a one-time accrued withholding tax of RMB40.0 million associated with the offshore remittance of cash from China in connection with the declaration of a special cash dividend in the third quarter of 2012.
The Company's various principal subsidiaries renewed their qualifications as High and New Technology Enterprises in 2011, and enjoy the preferential enterprise income tax rate of 15% from 2011 to 2013, subject to annual review by the relevant tax authorities in China.
Net Income after tax
Net profit for the third quarter of 2013 totaled RMB1.0 billion (US$171.3 million), compared to RMB1.1 billion and RMB811.9 million for the preceding quarter and the third quarter of 2012, respectively.
During the third quarter of 2013, the Company reported a net foreign exchange gain of RMB5.9 million (US$1.0 million), compared to RMB5.6 million and RMB23.7 million for the preceding quarter and the third quarter of 2012, respectively. The quarter-over-quarter and year-over-year changes in foreign exchange gains were mainly due to the unrealized exchange gains arising from the Company's foreign currency denominated bank deposit and short-term loan balances as of September 30, 2013 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$1.32 and US$1.31, respectively, for the third quarter of 2013. The Company reported basic and diluted earnings per ADS of US$1.38 and US$1.37, respectively, for the preceding quarter, and reported basic and diluted earnings per ADS of US$1.01 each for the third quarter of 2012.
Other Information
As of September 30, 2013, the Company's total cash and time deposits balance was RMB17.2 billion (US$2.8 billion), compared to RMB15.2 billion as of December 31, 2012. Cash flow generated from operating activities was RMB1.0 billion (US$165.9 million) for the third quarter of 2013, compared to RMB1.0 billion and RMB670.1 million for the preceding quarter and the third quarter of 2012, respectively.
Share Repurchase Program
In November 2012, the Company announced that its board of directors approved a new share repurchase program of up to US$100.0 million. As of September 30, 2013, the Company had cumulatively purchased approximately 2.02 million ADSs in open market purchases under this program for a total consideration of approximately US$83.0 million. The share repurchase program will expire on November 20, 2013.
** The United States dollar (US$) 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$1.00 = RMB6.1200 on September 30, 2013 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on September 30, 2013, or at any other certain date. The percentages stated are calculated based on RMB.
eastunder
12 years ago
NetEase Reports Third Quarter 2012 Unaudited Financial Results
Wednesday, November 14, 2012 18:00ET
BEIJING, Nov. 14, 2012 /PRNewswire-FirstCall/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced its unaudited financial results for the third quarter ended September 30, 2012.
William Ding, Chief Executive Officer and Director of NetEase, stated, "For the third quarter, total online game revenues were RMB1.7 billion with increased revenue contribution from our self-developed games. We advanced our online game business by introducing new games, launching expansion packs and conducting key promotional activities. Most recently, we launched unlimited beta testing for our newest games, Soul of the Fighter and Kung Fu Master, in September and October, respectively. Both new games have received exceptionally positive reception among gamers in China, and we are delighted with the user feedback thus far. As a result of the promotional activities for our flagship games, Fantasy Westward Journey and its latest expansion pack, and Westward Journey Online II, these games achieved record-high PCU levels in August. We also introduced a new expansion pack for Westward Journey Online III in August, as well as a new 3DX expansion pack for Tianxia III in late September."
"The October 2nd release of the highly anticipated fourth expansion pack of Blizzard Entertainment's World of Warcraft(®): Mists of Pandaria((TM)) in mainland China was another important milestone during this period. With elements that appeal to Chinese culture, Mists of Pandaria has proven to be especially engaging, and we believe that it is being widely embraced by China's gaming community."
"As we enter the remaining months of 2012 and move into 2013, we will focus on introducing new games and expansion packs that will build on the popularity of our existing games, and furthering our strategy of diversifying our portfolio offering. We plan to launch Heroes of Tang Dynasty II, a comprehensive update of Heroes of Tang Dynasty, on November 16, and in the coming months, we plan to introduce two new games, Heroes of Three Kingdoms, our 3D action real-time strategy game, and Dragon Sword, our next generation 3D MMORPG."
"As one of the first and largest Internet companies in China, the popularity of our portal continues to drive our advertising services revenues. During the third quarter, our advertising services revenues grew 10.2% year-over-year and 19.0% quarter-over-quarter with automobile, fast moving consumer goods and financial services as the top performing sectors. Our advertising business benefited from the popularity of our leading mobile news application as well as our broadcast of the London Olympics. The coverage of the latter yielded an unprecedented number of downloads and portal activity that exceeded our results from the Beijing Olympics in 2008."
"Our e-mail services also continued to grow, and as of September 30, 2012, we had approximately 510 million registered e-mail users. The integration of our traditional and mobile Internet services is continually being furthered and enhanced. We have more than 60 million registered mobile e-mail users and 27 million installations for our Mobile News application."
"We are working to achieve healthy growth that furthers our leading position in China's thriving Internet community. Historically, we have developed some of the most long-lasting and popular online games in China, and our large community of loyal users is growing across our business segments. Focusing on premium quality remains our top goal as we further build and diversify our portfolio of online games and enhance our content and value added services for our leading portal and burgeoning mobile Internet businesses. In addition, we have always been committed to creating value for our shareholders. As our revenue continues to grow, generating strong free cash flow from operations, we are happy to announce that our board of directors has approved a special cash dividend of US$1.00 per ADS, along with a US$100 million share repurchase program. We believe that these actions reflect our sound financial position and will enhance our shareholders' return as we work to increase the value of our Company," concluded Mr. Ding.
Third Quarter 2012 Financial Results
Revenues
Total revenues for the third quarter of 2012 were RMB2.0 billion (US$325.4 million), compared to RMB2.0 billion for both the preceding quarter and the third quarter of 2011.
Revenues from online games were RMB1.7 billion (US$276.8 million) for the third quarter of 2012, compared to RMB1.7 billion and RMB1.8 billion for the preceding quarter and the third quarter of 2011, respectively.
Revenues from advertising services were RMB243.0 million (US$38.7 million) for the third quarter of 2012, compared to RMB204.2 million and RMB220.5 million for the preceding quarter and the third quarter of 2011, respectively.
Revenues from e-mail, wireless value-added services and others ("E-mail, WVAS and others") were RMB61.9 million (US$9.9 million) for the third quarter of 2012, compared to RMB51.4 million and RMB31.3 million for the preceding quarter and the third quarter of 2011, respectively.
Gross Profit
Gross profit for the third quarter of 2012 was RMB1.4 billion (US$216.7 million), compared to RMB1.3 billion for both the preceding quarter and the third quarter of 2011.
The quarter-over-quarter increase in gross profit was primarily attributable to increased revenues from advertising services and NetEase's self-developed online games, which was partially offset by decreased revenue from Blizzard Entertainment's World of Warcraft. The quarter-over-quarter increase in gross profit from advertising services was primarily attributable to seasonality and our broadcast of the London Olympics. The increase in revenues from self-developed games was mainly attributable to Fantasy Westward Journey and Westward Journey Online II, as well as two new games: Kung Fu Master and Soul of the Fighter. The performances of Tianxia III and Ghost were steady in the third quarter of 2012.
The year-over-year increase in gross profit was primarily attributable to increased revenues from NetEase's self-developed games, partially offset by the decreased revenue from Blizzard Entertainment's World of Warcraft and increased advertising costs, including headcount-related costs and video content costs. The increase in revenues from NetEase's self-developed games was mainly from Fantasy Westward Journey, Ghost, Tianxia III, Westward Journey Online II, as well as Kung Fu Master and Soul of the Fighter.
Gross Profit (Loss) Margin
Gross profit margin for the online game business for the third quarter of 2012 was 74.2%, compared to 73.3% and 71.5% for the preceding quarter and the third quarter of 2011, respectively. The improvement in gross profit margin was primarily attributable to the increased revenue contribution from NetEase's self-developed games as a percentage of NetEase's total online game revenues.
Gross profit margin for the advertising business for the third quarter of 2012 was 36.2%, compared to 33.0% and 48.4% for the preceding quarter and the third quarter of 2011, respectively. The quarter-over-quarter increase in gross profit margin was primarily due to economies of scale as advertising revenue increased in the third quarter of 2012. The year-over-year decrease in gross profit margin was primarily due to increased headcount-related costs and content costs incurred for the London Olympics.
Gross profit margin for the E-mail, WVAS and others business for the third quarter of 2012 was 6.0%, compared to gross loss margins of 11.6% and 13.2% for the preceding quarter and the third quarter of 2011, respectively. The improvement in gross margin was mainly due to increased sales of NetEase's game-related accessories, such as limited edition packages of several online games.
Operating Expenses
Total operating expenses for the third quarter of 2012 were RMB537.5 million (US$85.5 million), compared to RMB437.7 million and RMB408.2 million for the preceding quarter and the third quarter of 2011, respectively. The quarter-over-quarter and year-over-year increases in operating expenses were mainly due to increased selling and marketing promotional activities, higher staff-related costs due to increased headcount and increased investments in the Company's product development pipeline. Major marketing and promotional activities in the third quarter of 2012 included: the summer vacation promotion of Fantasy Westward Journey, the 10th anniversary ceremony of Westward Journey Online II, unlimited beta testing for Soul of the Fighter, and promotions for Blizzard Entertainment's World of Warcraft: Mists of Pandaria.
Net Profit
Net profit for the third quarter of 2012 totaled RMB811.9 million (US$129.2 million), compared to RMB875.3 million and RMB825.8 million for the preceding quarter and the third quarter of 2011, respectively.
During the third quarter of 2012, the Company reported a net foreign exchange gain of RMB23.7 million (US$3.8 million), compared to a net foreign exchange loss of RMB36.0 million and RMB65.0 million for the preceding quarter and the third quarter of 2011, respectively. The quarter-over-quarter and year-over-year changes in foreign exchange gains or losses were mainly due to the translation gains or losses arising from the Company's Euro-denominated bank deposit balances as of the balance sheet date as the exchange rate of the Euro against the RMB fluctuated over the periods.
NetEase reported basic and diluted earnings per ADS of US$0.98 each for the third quarter of 2012. The Company reported basic and diluted earnings per ADS of US$1.06 each for the preceding quarter and reported basic and diluted earnings per ADS of US$1.01 and US$1.00, respectively, for the third quarter of 2011. Basic and diluted earnings per ADS for the third quarter of 2012 reflect a one-time accrued withholding tax, as described below, which has the effect of reducing such earnings per ADS.
Income Taxes
The Company recorded a net income tax charge of RMB194.8 million (US$31.0 million) for the third quarter of 2012, compared to RMB149.5 million and RMB140.5 million for the preceding quarter and the third quarter of 2011, respectively. The effective tax rate for the third quarter of 2012 was 19.9%, compared to 14.8% and 14.7% for the preceding quarter and the third quarter of 2011, respectively. The increase in net income tax charge was due to the occurrence of a one-time accrued withholding tax of RMB40.0 million associated with the offshore remittance of cash from China in anticipation of the declaration of a special cash dividend as described below.
The Company's various principal subsidiaries renewed their qualifications as High and New Technology Enterprises in 2011 and receive the preferential enterprise income tax rate of 15% from 2011 to 2013, subject to annual review by the relevant tax authorities in China.
Other Information
As of September 30, 2012, the Company's total cash and time deposits balance was RMB14.9 billion (US$2.4 billion), compared to RMB11.9 billion as of December 31, 2011. Cash flow generated from operating activities was RMB670.1 million (US$106.6 million) for the third quarter of 2012, compared to RMB880.9 million and RMB864.9 million for the preceding quarter and the third quarter of 2011, respectively.
Special Cash Dividend
The Company today announced that its board of directors declared a special cash dividend of US$0.04 per ordinary share, which is equivalent to US$1.00 per ADS (each ADS represents 25 ordinary shares). The special cash dividend is payable to shareholders of record as of January 15, 2013 and is expected to be paid on January 18, 2013. The board of directors declared this special cash dividend in order to give value back to shareholders, as the Company's revenues continue to grow, generating strong free cash flow from operations. The total amount of cash distributed is expected to be approximately US$131 million.
Share Repurchase Program
The Company today announced that its board of directors approved a new share repurchase program of up to US$100 million of the Company's outstanding ADSs for a period not to exceed 12 months. Under the terms of the approved program, NetEase may repurchase its issued and outstanding ADSs in open-market transactions on the NASDAQ Global Select Market. The timing and dollar amount of repurchase transactions will be subject to Securities and Exchange Commission ("SEC") Rule 10b-18 requirements. It is also expected that such repurchases will be effected pursuant to a plan in conformity with SEC Rule 10b5-1. NetEase plans to fund repurchases made under this program from available working capital.
** The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. Translations of amounts from RMB into US$ were calculated at the noon buying rate of US$1.00 = RMB6.2848 on the last trading day of September 2012 (September 28, 2012) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on September 28, 2012, or at any other certain date. The percentages stated are calculated based on RMB.
Continued at: http://www.knobias.com/story.htm?eid=3.1.58d54218872afccf72b7871df8f2617151ae5b93794f3e8dab7fd9cd884c6224
eastunder
12 years ago
NetEase Reports Second Quarter 2012 Unaudited Financial Results
Wednesday, August 15, 2012 18:00ET
BEIJING, Aug. 15, 2012 /PRNewswire-Asia/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced its unaudited financial results for the second quarter ended June 30, 2012.
William Ding, Chief Executive Officer and Director of NetEase, stated, "We place great emphasis on setting standards of excellence for China's Internet audience. The merits of this strategy can be found in our continued growth and loyalty in our user base. For the second quarter of 2012, our total revenues increased 12.7% year-over-year, with online games growing by 10.8% and advertising services increasing by 20.4%."
"In the second quarter, we continued to advance our self-developed games with certain standout performances. Ghost achieved record revenue in May, gaining traction from its open beta testing launch in April. Fantasy Westward Journey demonstrated a stable increase in revenue driven by positive user response to new content for this game. During the second quarter, we also launched open beta testing for Tianxia III, as well as released new expansion packs for Warsong of Westward Journey in April, Heroes of Tang Dynasty in May and Westward Journey Online II at the end of June. We expect the effect from the new launches for our self-developed games to be reflected in upcoming periods."
"Although playing time for Blizzard Entertainment's World of Warcraft(®) declined during the second quarter, leading to a quarter-over-quarter decrease of online game revenues, World of Warcraft continues to have a very enthusiastic community of players in China. We look forward to releasing Blizzard's Mists of Pandaria((TM)), the fourth expansion pack for World of Warcraft, as soon as possible to build on the game's large and passionate player base in China."
"In the second half of the year, we will focus on launching several new games and introducing expansion packs to existing games such as Fantasy Westward Journey, Tianxia III, Ghost and Westward Journey Online III. Our newest games under development are progressing well. In response to growing market demand for action games, we launched initial closed beta testing for two such games in July: Kung Fu Master, formerly called Wu Hun, as well as Soul of the Fighter, formerly called Soul of Warrior. Early feedback for both games has been encouraging, and we are preparing for their commercial launch in the second half of the year. In addition, our next generation 3D MMORPG Dragon Sword and 3D action real-time strategy game Heroes of Three Kingdoms are being developed to the highest standards of quality, and we will be performing technical tests this year to obtain user feedback on those games."
"Content innovation, new product development as well as service integration among mobile platforms continues to attract new advertising customers. Revenues from advertising services grew 42.3% quarter-over-quarter, led by the automobile, fast moving consumer goods and financial services sectors. Our recent focus has been on high profile sporting events, such as Euro Cup 2012 and the London Olympics. In the second quarter, we were pleased to secure a strategic partnership with China Network Television to broadcast the London Olympic Games as well as the opening and closing ceremonies on our portal and our top-ranking mobile news application."
"Mobile access and the introduction of new attractive content are contributing to continued user growth in our portal and e-mail business. In the second quarter, the registered number of users for our micro-blogging service increased by 48.8% sequentially to 180 million. Mailbox services also increased to 495 million registered users as of June 30, 2012. We continue to advance both services by introducing new content and enhancing the user experience to broaden our existing community."
"Our robust games portfolio, industry leading portal and growing search business are built on the success of providing a highly differentiated platform that caters to quality and optimizing user experience. We continue to build our products and services to meet customers' demands for new content with a robust pipeline of games and activities planned for the second half of the year," Mr. Ding concluded.
Second Quarter 2012 Financial Results
Revenues
Total revenues for the second quarter of 2012 were RMB2.0 billion (US$315.5 million), compared to RMB2.0 billion and RMB1.8 billion for the preceding quarter and the second quarter of 2011, respectively.
Revenues from online games were RMB1.7 billion (US$275.3 million) for the second quarter of 2012, compared to RMB1.8 billion and RMB1.6 billion for the preceding quarter and the second quarter of 2011, respectively.
Revenues from advertising services were RMB204.2 million (US$32.1 million) for the second quarter of 2012, compared to RMB143.5 million and RMB169.6 million for the preceding quarter and the second quarter of 2011, respectively.
Revenues from e-mail, wireless value-added services and others ("E-mail, WVAS and others") were RMB51.4 million (US$8.1 million) for the second quarter of 2012, compared to RMB39.6 million and RMB30.7 million for the preceding quarter and the second quarter of 2011, respectively.
Gross Profit
Gross profit for the second quarter of 2012 was RMB1.3 billion (US$208.0 million), compared to RMB1.3 billion and RMB1.2 billion for the preceding quarter and the second quarter of 2011, respectively.
The year-over-year increase in gross profit was primarily attributable to increased revenues from NetEase's online game business. The year-over-year increase in online game revenues was primarily driven by increased revenues from the Company's self-developed games, Ghost, Fantasy Westward Journey and Tianxia III, which was partially offset by a decline in revenue from Blizzard Entertainment's World of Warcraft.
Gross Profit (Loss) Margin
Gross profit margin for the online game business for the second quarter of 2012 was 73.3%, compared to 73.0% and 70.2% for the preceding quarter and the second quarter of 2011, respectively.
Gross profit margin for the advertising business for the second quarter of 2012 was 33.0%, compared to 19.8% and 43.9% for the preceding quarter and the second quarter of 2011, respectively. The quarter-over-quarter increase in gross profit margin was primarily due to an increase in advertising revenues. The year-over-year decrease in gross profit margin was primarily due to increased headcount-related costs and video content costs incurred in the second quarter of 2012.
Gross loss margin for the E-mail, WVAS and others business for the second quarter of 2012 was 11.6%, compared to 18.0% and 7.8% for the preceding quarter and the second quarter of 2011, respectively. The quarter-over-quarter change was mainly due to improved performance from NetEase's e-commerce business in the second quarter of 2012.
Operating Expenses
Total operating expenses for the second quarter of 2012 were RMB437.7 million (US$68.9 million), compared to RMB355.7 million and RMB365.8 million for the preceding quarter and the second quarter of 2011, respectively. The quarter-over-quarter increase in operating expenses was mainly due to increased selling and marketing promotional activities related to open beta testing launched in the second quarter of 2012 for Ghost and Tianxia III, and increased research and development expenses related to product development. The year-over-year increase in operating expenses was primarily due to increased headcount-related costs included in general and administrative expenses and research and development expenses.
Net Profit
Net profit for the second quarter of 2012 totaled RMB875.3 million (US$137.8 million), compared to RMB941.7 million and RMB772.5 million for the preceding quarter and the second quarter of 2011, respectively.
During the second quarter of 2012, the Company reported a net foreign exchange loss of RMB36.0 million (US$5.7 million), compared to a net foreign exchange gain of RMB17.6 million and a net foreign exchange loss of RMB3.0 million for the preceding quarter and the second quarter of 2011, respectively. The quarter-over-quarter and year-over-year changes in foreign exchange gains and losses were mainly due to the translation gains and losses arising from the Company's Euro-denominated bank deposit balances as of June 30, 2012 as the exchange rate of the Euro against the RMB fluctuated over the periods.
NetEase reported basic and diluted earnings per ADS of US$1.05 each for the second quarter of 2012. The Company reported basic and diluted earnings per ADS of US$1.13 each for the preceding quarter, and reported basic and diluted earnings per ADS of US$0.93 each for the second quarter of 2011.
Income Taxes
The Company recorded a net income tax charge of RMB149.5 million (US$23.5 million) for the second quarter of 2012, compared to RMB163.1 million and RMB92.4 million for the preceding quarter and the second quarter of 2011, respectively. The effective tax rate for the second quarter of 2012 was 14.8%, compared to 14.9% and 10.9% for the preceding quarter and the second quarter of 2011, respectively.
The Company's various principal subsidiaries renewed their qualifications as High and New Technology Enterprises in 2011, and enjoy the preferential enterprise income tax rate of 15% from 2011 to 2013, subject to annual review by the relevant tax authorities in China.
The year-over-year increase in effective tax rate was primarily due to the expiration of the enterprise income tax exemption period for certain subsidiaries that were qualified as Software Enterprises, which resulted in an increase in their applicable tax rate from 0% to 12.5%.
Other Information
As of June 30, 2012, the Company's total cash and time deposits balance was RMB13.8 billion (US$2.2 billion), compared to RMB11.9 billion as of December 31, 2011. Cash flow generated from operating activities was RMB880.9 million (US$138.7 million) for the second quarter of 2012, compared to RMB1.3 billion and RMB995.0 million for the preceding quarter and the second quarter of 2011, respectively.
** The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. Translations of amounts from RMB into US$ were calculated at the noon buying rate of US$1.00 = RMB6.3530 on the last trading day of June 2012 (June 29, 2012) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on June 29, 2012, or at any other certain date. The percentages stated are calculated based on RMB.
Continued at:
http://www.knobias.com/story.htm?eid=3.1.f0e39a158a6b39d4ae138d1f32a1aff1d67903aa3d5006b9e77080fcb41c9e5b
eastunder
12 years ago
NetEase.com Second Quarter Earnings Sneak Peek
By Derek Hoffman
August 10, 2012
http://wallstcheatsheet.com/stocks/netease-com-second-quarter-earnings-sneak-peek.html/?ref=YF
NetEase.com Inc (ADR) (NASDAQ:NTES) will unveil its latest earnings on Wednesday, August 15, 2012. NetEase.com is a China-based Internet technology company, which is engaged in the development of applications, services, and other technologies for the Internet in China.
NetEase.com Inc (ADR) Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.08 per share, a rise of 18.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.06. Between one and three months ago, the average estimate moved up. It has risen from $1.07 during the last month. Analysts are projecting profit to rise by 17.9% compared to last year’s $4.62.
Past Earnings Performance: Last quarter, the company beat estimates by 12 cents, coming in at net income of $1.14 a share versus the estimate of profit of $1.02 a share. It marked the fourth straight quarter of beating estimates.
A Look Back: In the first quarter, profit rose 32.8% to $149.5 million ($1.15 a share) from $112.6 million (88 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 36.3% to $312.1 million from $229.1 million.
Wall St. Revenue Expectations: Analysts are projecting a rise of 24.3% in revenue from the year-earlier quarter to $333.5 million.
Stock Price Performance: Between June 13, 2012 and August 9, 2012, the stock price had fallen $5.08 (-8.6%), from $59.26 to $54.18. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 17, 2011, when shares rose for 11 straight days, increasing 25.8% (+$9.37) over that span. It saw one of its worst periods between July 5, 2012 and July 17, 2012 when shares fell for nine straight days, dropping 11.9% (-$7.33) over that span.
Analyst Ratings: There are eight out of 13 analysts surveyed (61.5%) rating NetEase.com a buy.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 6.21 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 6.34 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.8% to $391 million while assets rose 5.5% to $2.43 billion.
eastunder
12 years ago
Buy at a High?
http://www.forbes.com/sites/taesikyoon/2012/06/08/buy-at-a-high/?partner=yahootix
Believe it or not, even during sharp market sell-offs such as the one we’re witnessing now, there are a few stocks not only bucking the trend, but actually hitting new highs. And not of the 52-week variety either. I’m talking all-time highs.
Obviously, these are few and far between. Within the portfolio of 45 stocks currently being recommended by the Forbes Investor, the investment newsletter I edit, there’s just one, NetEase, Inc. (NTES).
NTES is a provider of online communities and personalized premium Internet services in China. It focuses on the online gaming market – specifically, massively multiplayer online role-playing games (MMORPGs). Current game offerings include company-developed titles such as Fantasy Westward Journey, Westward Journey Online 2 & 3, Tianxia 3, Heros of the Tang Dynasty, Datang and Ghost. It also includes the incredibly popular World of Warcraft (WoW) and Starcraft 2 MMORPGs licensed from Blizzard Entertainment. The company’s Netease.com web site also offers a number of other services such as aggregated news content across multiple categories, instant messaging, online personal advertisements, matchmaking, alumni clubs and community forums.
Thanks to the increased penetration of Internet access and rising income levels in China stemming from the nation’s high economic growth, the popularity of online gaming has grown significantly over the past several years. NTES has been among the biggest beneficiaries of this boon. Even as its competitors and other China-based Internet services providers have seen their stocks struggle to hold gains in 2012, NTES has continued to surge, hitting a new all-time high of $65.53 per share yesterday. At the close, the stock was up 42% so far this year.
Given the stock’s gains, is NTES still worthy of consideration? I think so. One thing I like about NTES’s outperformance is the fact that it was achieved the old fashion way. Unlike many other stocks setting new highs, its gains were not helped by or the result of favorable external events, such as a change in government policy or speculation of a possible acquisition. Rather, it was the direct result of increased investor interest stemming from an exceptionally consistent track record of operational outperformance.
This track record has resulted in positive momentum in the stock. One thing I’ve learned is to not underestimate the power of positive market momentum. Stocks that have it can continue to rise irrespective of value. Just look at Amazon (AMZN). It’s up around 25% so far in 2012 despite trading at more than 170 times expected current year earnings.
Much of NTES’s recent outperformance was sparked by the renewal of the company’s license with Blizzard Entertainment in March, allowing it to remain the exclusive provider of the popular WoW online game franchise in China for another three years. This put to rest any concerns investors may have had regarding the possible loss of this lucrative business. Shares then extended their gains after NTES reported stronger-than-expected Q1 results last month. Revenue climbed 30.3% year-over-year to $318.2 million. This was primarily the result of a 31.4% surge in online game services revenue on steady growth in legacy online games and growing popularity of newer company-developed titles. Net income rose 27.7% to $149.5 million or $1.14 per share – 9 cents ahead of the consensus estimate.
Despite the stock’s gains, shares still remain reasonably valued, trading at 14 times their expected 2012 earnings. This is well below online search, content and community providers Bidu.com (BIDU) and Sohu.com (SOHU), which trade at 27 and 18 times their respective forward earnings estimates. However, it’s higher than fellow Chinese online gaming providers, Changyou.com (CYOU) and Shanda (GAME). In fact, based strictly on valuation, one could easily argue that these stocks offer better value propositions.
Over the long-run, this may prove true. But as we have seen time and time again, valuations can, and often do go ignored. Additionally, there’s a good reason why those stocks sell at such lower price multiples – greater uncertainty surrounding future growth. Existing game titles at Changyou continue to do well, but investors remain skeptical on the prospects of new games being developed that the company will likely rely on to fuel future growth. While I think Shanda’s developmental pipeline and new game launches hold more promise, the company actually saw a sequential drop in the number of users in Q4 2011 and stated that the popularity of one of its largest titles may have peaked.
NTES’s premium suggests investors are far more confident in the company’s ability to continue delivering strong and consistent profit growth. Armed with the WoW license renewal, the continual popularity of company-owned online gaming franchises and strong launches of new titles to help drive growth over the next several years, I share in this confidence. That’s why I expect NTES’s history of exceeding expectations to continue. This should keep current investor interest high and help maintain the stock’s momentum.