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Technology Services

NetEase, Inc.

Business Summary

NetEase, Inc. is an internet technology company, which engages in the provision of 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 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 the following business segments: Online Game Services, Youdao, Cloud Music, and Innovative Businesses and Others. The Online Game Services segment produces online PC-client games. The Youdao segment is an online education service provider in China. The Cloud Music segment represents revenue from online music services through the sales of membership subscriptions in various content and service packages. The Innovative Businesses and Others segment offers other services, which includes live video 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 2021 HKDUSD
Revenue105,583.74M13,583.68M
Gross Profit56,609.72M7,283.01M
Operating income19,786.03M2,545.53M
Income before tax23,536.51M3,028.04M
Net income20,316.05M2,613.72M
EBITDA23,733.97M3,053.45M
Diluted EPS6.030.77
Dividends Per Share1.820.23
Total Assets187,947.33M24,107.24M
Total liabilities66,325.52M8,507.30M
Total equity116,611.56M14,957.29M
Operating cash flow30,041.96M3,864.99M
Currency in HKDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 62,384.32M 60,618.66M 67,174.51M 82,779.26M 105,583.74M
Gross Profit 29,879.58M 32,390.25M 35,781.07M 43,805.39M 56,609.72M
Operating income 14,014.40M 11,817.70M 15,637.44M 16,336.70M 19,786.03M
Income before tax 15,003.39M 13,119.89M 18,577.33M 17,079.67M 23,536.51M
Net income 12,347.18M 9,820.41M 15,052.73M 13,554.83M 20,316.05M
EBITDA 14,616.54M 14,257.83M 18,601.25M 20,222.19M 23,733.97M
Diluted EPS 3.57 2.10 6.96 4.04 6.03
Dividends Per Share -- -- -- 1.21 1.82
Total Assets 85,269.33M 99,174.49M 125,421.80M 168,212.21M 187,947.33M
Total liabilities 28,788.57M 40,546.93M 43,717.97M 57,006.36M 66,325.52M
Total equity 54,898.77M 51,580.21M 68,741.82M 97,372.83M 116,611.56M
Operating cash flow 13,709.32M 15,890.48M 19,522.02M 27,966.67M 30,041.96M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 8,005.36M 7,734.39M 8,573.42M 10,672.93M 13,583.68M
Gross Profit 3,834.24M 4,132.70M 4,566.70M 5,647.93M 7,283.01M
Operating income 1,798.37M 1,507.83M 1,995.79M 2,106.33M 2,545.53M
Income before tax 1,925.28M 1,673.98M 2,371.00M 2,202.12M 3,028.04M
Net income 1,584.43M 1,252.99M 1,921.16M 1,747.65M 2,613.72M
EBITDA 1,875.64M 1,819.17M 2,374.06M 2,607.29M 3,053.45M
Diluted EPS 0.45 0.26 0.88 0.52 0.77
Dividends Per Share -- -- -- 0.15 0.23
Total Assets 10,907.77M 12,667.01M 16,096.64M 21,694.02M 24,107.24M
Total liabilities 3,682.67M 5,178.83M 5,610.76M 7,352.00M 8,507.30M
Total equity 7,022.72M 6,588.05M 8,822.32M 12,557.99M 14,957.29M
Operating cash flow 1,759.22M 2,027.48M 2,491.58M 3,605.81M 3,864.99M

Valuation Measures

Dec 2021
PER25.78
ROA11.40%
ROE18.98%
Operating margin18.73%
Profit margin19.24%

Key executives

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

Shareholders

  • DING LEI /NETEASE/ (41.9%)
  • The Vanguard Group, Inc. (1.6%)
  • BlackRock Fund Advisors (1.4%)
  • JPMorgan Asset Management (Asia Pacific) Ltd. (0.6%)
  • Capital International Ltd. (0.6%)
  • BlackRock Advisors (UK) Ltd. (0.6%)
  • Krane Funds Advisors LLC (0.5%)
  • JPMorgan Asset Management (UK) Ltd. (0.5%)
  • China Asset Management Co., Ltd. (0.5%)
  • Capital Research & Management Co. (World Investors) (0.4%)

Contact Details

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

Related Companies

  • NetEase Interactive Entertainment Pte Ltd.
  • Cloud Music, 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.
  • Guangzhou Boguan Telecommunication Technology Co., Ltd.
  • NetEase (Hong Kong) Ltd.
  • NetEase Media Technology (Beijing) Co. Ltd.
  • NetEase Information Technology (Beijing) Co. Ltd.
  • Netease Capital
  • NetEase Interactive Entertainment Ltd.

Competitors

  • Tencent Holdings Ltd.
  • Electronic Arts Inc.
  • Sohu.com Limited Sponsored ADR
  • Gravity Co., Ltd. Sponsored ADR
  • NetDragon Websoft Holdings Limited
  • Qutoutiao, Inc. Sponsored ADR Class A
  • Phoenix New Media Ltd. Sponsored ADR Class A
  • Netmarble Corp.
  • Fuchun Technology Co., Ltd. Class A
  • G-Bits Network Technology (Xiamen) Co., Ltd. Class A
  • PLAYSTUDIOS, Inc. Class A
  • Weibo Corp Class A
Last Updated on 25 Nov, 2022

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