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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 2020 USD
Revenue10,672.93M10,672.93M
Gross Profit5,647.93M5,647.93M
Operating income2,106.33M2,106.33M
Income before tax2,227.11M2,227.11M
Net income1,747.65M1,747.65M
EBITDA2,607.29M2,607.29M
Diluted EPS2.602.60
Dividends Per Share0.770.77
Total Assets21,694.02M21,694.02M
Total liabilities7,352.00M7,352.00M
Total equity12,557.99M12,557.99M
Operating cash flow3,605.81M3,605.81M
Currency in USDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 5,746.74M 8,005.36M 7,734.39M 8,573.42M 10,672.93M
Gross Profit 3,260.87M 3,834.24M 4,132.70M 4,566.70M 5,647.93M
Operating income 1,900.91M 1,798.37M 1,507.83M 1,995.79M 2,106.33M
Income before tax 2,091.55M 1,925.28M 1,673.98M 2,371.00M 2,227.11M
Net income 1,746.73M 1,584.43M 1,252.99M 1,921.16M 1,747.65M
EBITDA 1,950.21M 1,875.64M 1,819.17M 2,374.06M 2,607.29M
Diluted EPS 2.52 2.29 1.34 4.44 2.60
Dividends Per Share 0.65 0.60 0.35 1.37 0.77
Total Assets 8,350.50M 10,907.77M 12,667.01M 16,096.64M 21,694.02M
Total liabilities 2,815.87M 3,682.67M 5,178.83M 5,610.76M 7,352.00M
Total equity 5,495.51M 7,022.72M 6,588.05M 8,822.32M 12,557.99M
Operating cash flow 2,331.32M 1,759.22M 2,027.48M 2,491.58M 3,605.81M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 5,746.74M 8,005.36M 7,734.39M 8,573.42M 10,672.93M
Gross Profit 3,260.87M 3,834.24M 4,132.70M 4,566.70M 5,647.93M
Operating income 1,900.91M 1,798.37M 1,507.83M 1,995.79M 2,106.33M
Income before tax 2,091.55M 1,925.28M 1,673.98M 2,371.00M 2,227.11M
Net income 1,746.73M 1,584.43M 1,252.99M 1,921.16M 1,747.65M
EBITDA 1,950.21M 1,875.64M 1,819.17M 2,374.06M 2,607.29M
Diluted EPS 2.52 2.29 1.34 4.44 2.60
Dividends Per Share 0.65 0.60 0.35 1.37 0.77
Total Assets 8,350.50M 10,907.77M 12,667.01M 16,096.64M 21,694.02M
Total liabilities 2,815.87M 3,682.67M 5,178.83M 5,610.76M 7,352.00M
Total equity 5,495.51M 7,022.72M 6,588.05M 8,822.32M 12,557.99M
Operating cash flow 2,331.32M 1,759.22M 2,027.48M 2,491.58M 3,605.81M

Valuation Measures

Dec 2020
PER36.22
ROA9.24%
ROE16.34%
Operating margin19.73%
Profit margin16.37%

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

  • Orbis Investment Management Ltd. (2.9%)
  • BlackRock Fund Advisors (1.8%)
  • The Vanguard Group, Inc. (1.6%)
  • UBS Asset Management Switzerland AG (1.4%)
  • Baillie Gifford & Co. (1.3%)
  • SSgA Funds Management, Inc. (1.1%)
  • UBS Asset Management (Hong Kong) Ltd. (0.9%)
  • Norges Bank Investment Management (0.7%)
  • Massachusetts Financial Services Co. (0.6%)
  • Invesco Asset Management Ltd. (0.5%)

Contact Details

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

Related Companies

  • Cloud Village, Inc.
  • 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.
  • Hangzhou Wangyi Cloud Music Co. Ltd.
  • 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

  • Tencent Holdings Ltd.
  • Sohu.com Limited Sponsored ADR
  • Electronic Arts Inc.
  • NetDragon Websoft Holdings Limited
  • Qutoutiao, Inc. Sponsored ADR Class A
  • Phoenix New Media Ltd. Sponsored ADR Class A
  • iDreamSky Technology Holdings Limited
  • Netmarble Corp.
  • Gravity Co., Ltd. Sponsored ADR
  • Fuchun Technology Co., Ltd. Class A
  • The9 Ltd. Sponsored ADR
  • G-Bits Network Technology (Xiamen) Co., Ltd. Class A
  • Zynga Inc. Class A
  • Wuhu Sanqi Interactive Entertainment Network Technology Group Co., Ltd. Class A
  • Weibo Corp Sponsored ADR Class A
Last Updated on 16 Apr, 2021

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