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Technology Services

NetEase, Inc.

Business Summary

NetEase, Inc. is an internet technology company, which premium online services centered around content, community, communication and commerce. It develops and operates some of the most popular PC-client and mobile games in China. The firm also operates some of the most popular international online games in China by partnering with Blizzard Entertainment, Mojang AB (a Microsoft subsidiary) and other global game developers. NetEase also offers other innovative services, including the intelligent learning services of its majority-controlled subsidiary, Youdao, its music streaming platform, NetEase Cloud Music, and its private label e-commerce platform, Yanxuan. The company operates through following business segments: Online game services, Youdao, and Innovative businesses and others. The Online game services segment has produced some of China's most renowned and longest running online PC-client games, including Fantasy Westward Journey Online and New Westward Journey Online II, as well as other highly successful games, such as Tianxia III, New Ghost and Justice. The Youdao segment is an online education service provider in China. Through Youdao, the Company's majority-controlled subsidiary, NetEase is dedicated to developing and using technologies to provide learning content, applications and solutions to users of all ages. The Innovative businesses and others segment offers other innovative services, including live video streaming, music streaming and its private label e-commerce platform, Yanxuan. The company was founded by Lei Ding in June 1997 and is headquartered in Beijing, China.

Financial Highlights

Dec 2019 HKDUSD
Revenue67,174.51M8,573.42M
Gross Profit35,781.07M4,566.70M
Operating income15,637.44M1,995.79M
Income before tax18,577.33M2,371.00M
Net income15,052.73M1,921.16M
EBITDA18,601.25M2,374.06M
Diluted EPS6.960.88
Dividends Per Share----
Total Assets125,421.80M16,096.64M
Total liabilities43,717.97M5,610.76M
Total equity68,741.82M8,822.32M
Operating cash flow19,522.02M2,491.58M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 28,126.93M 44,608.86M 62,384.32M 60,618.66M 67,174.51M
Gross Profit 16,533.12M 25,312.39M 29,879.58M 32,390.25M 35,781.07M
Operating income 8,970.02M 14,755.79M 14,014.40M 11,817.70M 15,637.44M
Income before tax 10,003.90M 16,235.59M 15,003.39M 13,119.89M 18,577.33M
Net income 8,307.62M 13,558.93M 12,347.18M 9,820.41M 15,052.73M
EBITDA 9,195.07M 15,138.47M 14,616.54M 14,257.83M 18,601.25M
Diluted EPS 2.40 3.92 3.57 2.10 6.96
Dividends Per Share -- -- -- -- --
Total Assets 49,121.63M 64,742.74M 85,269.33M 99,174.49M 125,421.80M
Total liabilities 14,123.74M 21,831.89M 28,788.57M 40,546.93M 43,717.97M
Total equity 34,898.21M 42,607.55M 54,898.77M 51,580.21M 68,741.82M
Operating cash flow 9,962.72M 18,096.77M 13,709.32M 15,890.48M 19,522.02M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 3,628.07M 5,746.74M 8,005.36M 7,734.39M 8,573.42M
Gross Profit 2,132.59M 3,260.87M 3,834.24M 4,132.70M 4,566.70M
Operating income 1,157.03M 1,900.91M 1,798.37M 1,507.83M 1,995.79M
Income before tax 1,290.39M 2,091.55M 1,925.28M 1,673.98M 2,371.00M
Net income 1,071.59M 1,746.73M 1,584.43M 1,252.99M 1,921.16M
EBITDA 1,186.06M 1,950.21M 1,875.64M 1,819.17M 2,374.06M
Diluted EPS 0.31 0.50 0.45 0.26 0.88
Dividends Per Share -- -- -- -- --
Total Assets 6,338.15M 8,350.50M 10,907.77M 12,667.01M 16,096.64M
Total liabilities 1,822.38M 2,815.87M 3,682.67M 5,178.83M 5,610.76M
Total equity 4,502.90M 5,495.51M 7,022.72M 6,588.05M 8,822.32M
Operating cash flow 1,285.08M 2,331.32M 1,759.22M 2,027.48M 2,491.58M

Valuation Measures

Dec 2019
PER--
ROA13.40%
ROE25.02%
Operating margin23.27%
Profit margin22.40%

Key executives

  • Chief Executive Officer & Director: Lei Ding
  • Chief Financial Officer: Zhao Xuan Yang
  • President-Agriculture business: Ying Chun Kui
  • Director-Investor Relations: Margaret Shi

Shareholders

  • DING LEI /NETEASE/ (42.1%)
  • JPMorgan Investment Management, Inc. (1.3%)
  • Capital Research & Management Co. (Global Investors) (0.6%)
  • JPMorgan Asset Management (Asia Pacific) Ltd. (0.4%)
  • GQG Partners LLC (0.3%)
  • Capital Research & Management Co. (World Investors) (0.2%)
  • Fidelity Management & Research Co. LLC (0.2%)
  • Ninety One UK Ltd. (0.1%)
  • William Blair Investment Management LLC (0.0%)
  • AllianceBernstein LP (0.0%)

Contact Details

  • Website:http://ir.netease.com
  • Address: NetEase Building, No. 599 Wangshang Road, Hangzhou, 310052, China
  • Phone: +86.571.8985.3378

Related Companies

  • Hangzhou NetEase Cloud Music Technology Co., Ltd.
  • NetEase Digital Entertainment, Inc.
  • Youdao, Inc.
  • Netease Games
  • Guangzhou Boguan Information Technology Co., Ltd.
  • NetEase, Inc. /NetEase Comics/
  • NetEase Media, Inc.
  • Guangzhou Boguan Telecommunication Technology Co., Ltd.
  • NetEase (Hong Kong) Ltd.
  • NetEase Media Technology (Beijing) Co. Ltd.
  • NetEase Information Technology (Beijing) Co. Ltd.
  • Netease Capital
  • Bungie, Inc.
  • NetEase Interactive Entertainment Ltd.

Competitors

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  • Tencent Holdings Ltd.
  • Alibaba Group Holding Ltd.
  • Microsoft Corporation
  • Alphabet Inc. Class A
  • Perfect World Co., Ltd. Class A
  • Verizon Communications Inc.
  • Giant Network Group Co. Ltd. Class A
  • Baidu, Inc. Sponsored ADR Class A
  • Vipshop Holdings Ltd Sponsored ADR
  • JD.com, Inc. Class A
  • Autohome, Inc. Sponsored ADR Class A
  • Bitauto Holdings Ltd. Sponsored ADR
  • Mail.ru Group Ltd. Sponsored GDR
  • NetDragon Websoft Holdings Limited
  • Qutoutiao, Inc. Sponsored ADR Class A
  • Netmarble Corp.
  • Fuchun Technology Co., Ltd. Class A
  • Electronic Arts Inc.
  • G-Bits Network Technology (Xiamen) Co., Ltd. Class A
  • Zynga Inc. Class A
  • Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd. Class A
  • iDreamSky Technology Holdings Limited
  • Gravity Co., Ltd. Sponsored ADR
  • Glu Mobile Inc.
  • The9 Ltd. Sponsored ADR
  • Weibo Corp Sponsored ADR Class A
Last Updated on 21 Oct, 2020

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