NetEase, Inc 6-K, filed Nov 14, 2024

NetEase, Inc. (NTES)

6-K 2024-11-14 For: 2024-11-14

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Added on April 02, 2026

About this 6-K

NetEase, Inc filed this 6-K on November 14, 2024.

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	NETEASE, INC.

	By:	/s/ William Lei Ding
	Name:	William Lei Ding
	Title:	Chief Executive Officer

	December 31,		September 30,		September 30,
	2023		2024		2024
	RMB		RMB		USD (Note 1)
Assets
Current assets:
Cash and cash equivalents		21,428,902		20,184,013		2,876,199
Time deposits		100,856,034		91,195,431		12,995,245
Restricted cash		2,777,206		2,994,096		426,655
Accounts receivable, net		6,422,417		6,173,077		879,656
Inventories		695,374		613,685		87,449
Prepayments and other current assets, net		6,076,595		6,811,171		970,584
Short-term investments		4,436,057		12,607,188		1,796,510
Total current assets		142,692,585		140,578,661		20,032,298

Non-current assets:
Property, equipment and software, net		8,075,044		8,200,464		1,168,557
Land use rights, net		4,075,143		4,204,865		599,188
Deferred tax assets		1,560,088		1,173,270		167,190
Time deposits		1,050,000		4,025,000		573,558
Restricted cash		550		5,277		752
Other long-term assets		28,471,568		26,708,737		3,805,965
Total non-current assets		43,232,393		44,317,613		6,315,210
Total assets		185,924,978		184,896,274		26,347,508

Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity
Current liabilities:
Accounts payable		881,016		755,372		107,640
Salary and welfare payables		4,857,206		2,941,618		419,177
Taxes payable		2,571,534		2,606,842		371,472
Short-term loans		19,240,163		10,594,342		1,509,682
Contract liabilities		13,362,166		15,543,023		2,214,863
Accrued liabilities and other payables		12,930,399		13,270,811		1,891,075
Total current liabilities		53,842,484		45,712,008		6,513,909

Non-current liabilities:
Deferred tax liabilities		2,299,303		1,828,869		260,612
Long-term loans		427,997		427,997		60,989
Other long-term liabilities		1,271,113		1,199,075		170,867
Total non-current liabilities		3,998,413		3,455,941		492,468
Total liabilities		57,840,897		49,167,949		7,006,377

Redeemable noncontrolling interests		115,759		122,494		17,455

NetEase,Inc.’s shareholders’ equity		124,285,776		132,150,155		18,831,246
Noncontrolling interests		3,682,546		3,455,676		492,430
Total equity		127,968,322		135,605,831		19,323,676

Total liabilities, redeemable noncontrolling interests and shareholders’ equity		185,924,978		184,896,274		26,347,508

	Three Months Ended												Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	2023			2024			2024			2024			2023			2024			2024
	RMB			RMB			RMB			USD (Note 1)			RMB			RMB			USD (Note 1)
Net revenues		27,270,406			25,485,805			26,209,879			3,734,878			76,327,994			78,547,425			11,192,919
Cost of revenues		(10,304,106	)		(9,443,587	)		(9,733,274	)		(1,386,980	)		(30,089,735	)		(29,012,682	)		(4,134,274	)
Gross profit		16,966,300			16,042,218			16,476,605			2,347,898			46,238,259			49,534,743			7,058,645

Operating expenses:
Selling and marketing expenses		(3,567,153	)		(3,501,737	)		(3,805,071	)		(542,218	)		(9,743,904	)		(11,329,012	)		(1,614,371	)
General and administrative expenses		(1,494,186	)		(1,091,441	)		(1,100,328	)		(156,795	)		(3,648,011	)		(3,388,244	)		(482,821	)
Research and development expenses		(4,347,052	)		(4,455,717	)		(4,424,469	)		(630,482	)		(12,005,691	)		(13,054,944	)		(1,860,315	)
Total operating expenses		(9,408,391	)		(9,048,895	)		(9,329,868	)		(1,329,495	)		(25,397,606	)		(27,772,200	)		(3,957,507	)
Operating profit		7,557,909			6,993,323			7,146,737			1,018,403			20,840,653			21,762,543			3,101,138

Other income/(expenses):
Investment income, net		556,603			103,674			578,398			82,421			1,315,662			861,363			122,743
Interest income, net		1,147,227			1,186,219			1,282,766			182,793			2,858,835			3,746,582			533,884
Exchange (losses)/gains, net		(400,483	)		(239,375	)		(1,055,518	)		(150,410	)		677,905			(1,279,882	)		(182,382	)
Other, net		240,024			85,694			43,600			6,213			618,883			323,182			46,053
Income before tax		9,101,280			8,129,535			7,995,983			1,139,420			26,311,938			25,413,788			3,621,436
Income tax		(1,290,398	)		(1,300,939	)		(1,289,545	)		(183,759	)		(3,631,047	)		(4,076,394	)		(580,881	)
Net income		7,810,882			6,828,596			6,706,438			955,661			22,680,891			21,337,394			3,040,555

Accretion of redeemable noncontrolling interests		(895	)		(960	)		(962	)		(137	)		(2,623	)		(2,880	)		(410	)
Net loss/(income) attributable to noncontrolling interests and redeemable noncontrolling interests		26,901			(68,887	)		(167,041	)		(23,803	)		156,021			(403,384	)		(57,482	)
Net income attributable to the Company’s shareholders		7,836,888			6,758,749			6,538,435			931,721			22,834,289			20,931,130			2,982,663

Net income per share *
Basic		2.44			2.10			2.04			0.29			7.10			6.52			0.93
Diluted		2.41			2.08			2.03			0.29			7.02			6.46			0.92

Net income per ADS *
Basic		12.19			10.50			10.22			1.46			35.48			32.61			4.65
Diluted		12.06			10.42			10.14			1.44			35.11			32.30			4.60

Weighted average number of ordinary shares used in calculating net income per share *
Basic		3,213,834			3,217,699			3,198,646			3,198,646			3,217,873			3,209,298			3,209,298
Diluted		3,249,649			3,243,056			3,224,110			3,224,110			3,251,666			3,238,834			3,238,834

	Three Months Ended												Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	2023			2024			2024			2024			2023			2024			2024
	RMB			RMB			RMB			USD (Note 1)			RMB			RMB			USD (Note 1)
Cash flows from operating activities:
Net income		7,810,882			6,828,596			6,706,438			955,661			22,680,891			21,337,394			3,040,555
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		651,856			631,957			520,567			74,180			2,395,488			1,720,447			245,162
Fair value changes of equity security, other investments and financial instruments		(382,132	)		(7,887	)		(824,608	)		(117,506	)		(686,887	)		(1,200,753	)		(171,106	)
Impairment losses on investments		280,641			210,741			529,668			75,477			328,511			868,826			123,807
Fair value changes of short-term investments		(72,875	)		(128,295	)		(100,071	)		(14,260	)		(307,675	)		(289,176	)		(41,207	)
Share-based compensation cost		819,548			1,079,056			978,139			139,384			2,429,823			2,951,495			420,584
Allowance for expected credit losses		22,386			9,281			36,022			5,133			51,646			56,903			8,109
Losses/(gains) on disposal of property, equipment and software		2,649			(326	)		(2,920	)		(416	)		2,291			(1,114	)		(159	)
Unrealized exchange losses/(gains)		362,213			(209,311	)		1,050,644			149,715			(718,121	)		823,824			117,394
Gains on disposal of long-term investments, business and subsidiaries		(3,197	)		(141,114	)		(118,046	)		(16,821	)		(25,347	)		(272,647	)		(38,852	)
Deferred income taxes		(305,703	)		(1,280,076	)		711,639			101,408			(62,417	)		(83,383	)		(11,882	)
Share of results on equity method investees		(160,042	)		39,200			(28,466	)		(4,057	)		(385,142	)		175,005			24,938
Changes in operating assets and liabilities:
Accounts receivable		(1,177,732	)		1,410,478			146,758			20,913			(1,523,463	)		198,525			28,289
Inventories		84,970			29,552			(39,285	)		(5,598	)		271,710			81,645			11,634
Prepayments and other assets		(573,631	)		530,856			(1,234,390	)		(175,899	)		(455,037	)		(377,394	)		(53,778	)
Accounts payable		150,868			(126,862	)		6,316			900			(577,862	)		(127,547	)		(18,175	)
Salary and welfare payables		(588,217	)		879,058			(670,750	)		(95,581	)		(2,055,848	)		(1,970,300	)		(280,766	)
Taxes payable		515,087			(1,462,700	)		224,015			31,922			255,911			33,137			4,722
Contract liabilities		1,560,628			(1,270,324	)		1,928,060			274,746			2,009,423			2,231,822			318,032
Accrued liabilities and other payables		845,721			(490,048	)		755,882			107,712			(104,899	)		507,904			72,376
Net cash provided by operating activities		9,843,920			6,531,832			10,575,612			1,507,013			23,522,996			26,664,613			3,799,677

Cash flows from investing activities:
Purchase of property, equipment and software		(643,144	)		(168,880	)		(379,520	)		(54,081	)		(1,816,627	)		(963,418	)		(137,286	)
Proceeds from sale of property, equipment and software		3,101			660			1,072			153			9,897			5,238			746
Purchase of intangible assets, content and licensed copyrights		(742,523	)		(399,533	)		(222,247	)		(31,670	)		(1,852,526	)		(810,601	)		(115,510	)
Net changes of short-term investments with terms of three months or less		(1,993,921	)		(8,194,289	)		1,585,395			225,917			(1,087,059	)		(4,207,245	)		(599,528	)
Purchase of short-term investments with terms over three months		-			-			(3,675,000	)		(523,683	)		-			(3,675,000	)		(523,683	)
Proceeds from maturities of short-term investments with terms over three months		376,950			-			-			-			481,219			-			-
Investment in long-term investments and acquisition of subsidiaries		(417,448	)		(193,450	)		(226,086	)		(32,217	)		(1,916,724	)		(901,340	)		(128,440	)
Proceeds from disposal of long-term investments, businesses, subsidiaries and other financial instruments		20,898			840,649			1,541,338			219,639			78,709			2,467,443			351,608
Placement/rollover of matured time deposits		(30,831,994	)		(61,775,606	)		(36,766,094	)		(5,239,127	)		(78,026,928	)		(133,100,536	)		(18,966,675	)
Proceeds from maturities of time deposits		33,893,436			55,211,839			37,546,192			5,350,289			78,144,576			138,806,413			19,779,756
Change in other long-term assets		(181,263	)		(172,543	)		(125,911	)		(17,942	)		(333,293	)		(333,079	)		(47,463	)
Net cash used in investing activities		(515,908	)		(14,851,153	)		(720,861	)		(102,722	)		(6,318,756	)		(2,712,125	)		(386,475	)

Cash flows from financing activities:
Net changes from loans with terms of three months or less		(7,501,788	)		(2,085,053	)		(4,778,301	)		(680,902	)		(19,834,683	)		(7,263,080	)		(1,034,981	)
Proceeds of loans with terms over three months		7,607,060			1,069,020			5,395,810			768,897			11,058,160			13,463,080			1,918,473
Payment of loans with terms over three months		(4,250,550	)		(10,681,827	)		(3,100,520	)		(441,821	)		(7,524,472	)		(14,739,347	)		(2,100,340	)
Net amounts received/(paid) related to capital contribution from or repurchase of noncontrolling interests shareholders		11,573			50,572			(8,394	)		(1,196	)		58,150			84,392			12,026
Cash paid for repurchase of NetEase’s ADSs/purchase of subsidiaries’ ADSs and shares		(296,495	)		(2,007,030	)		(3,994,212	)		(569,171	)		(4,608,462	)		(7,235,022	)		(1,030,982	)
Dividends paid to NetEase’s shareholders		(2,423,355	)		(2,264,799	)		(1,972,928	)		(281,140	)		(5,755,011	)		(9,182,743	)		(1,308,530	)
Net cash used in financing activities		(6,853,555	)		(15,919,117	)		(8,458,545	)		(1,205,333	)		(26,606,318	)		(24,872,720	)		(3,544,334	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies		4,197			8,234			(68,136	)		(9,710	)		(28,181	)		(103,040	)		(14,683	)
Net increase/(decrease) in cash, cash equivalents and restricted cash		2,478,654			(24,230,204	)		1,328,070			189,248			(9,430,259	)		(1,023,272	)		(145,815	)
Cash, cash equivalents and restricted cash, at the beginning of the period		15,679,412			46,085,520			21,855,316			3,114,358			27,588,325			24,206,658			3,449,421
Cash, cash equivalents and restricted cash, at end of the period		18,158,066			21,855,316			23,183,386			3,303,606			18,158,066			23,183,386			3,303,606

Supplemental disclosures of cash flow information:
Cash paid for income taxes, net		1,165,196			2,848,493			554,867			79,068			3,864,820			4,586,071			653,510
Cash paid for interest expenses		105,665			152,943			165,881			23,638			708,025			465,279			66,302

	Three Months Ended												Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	2023			2024			2024			2024			2023			2024			2024
	RMB			RMB			RMB			USD (Note 1)			RMB			RMB			USD (Note 1)
Net revenues:
Games and related value-added services		21,779,851			20,055,819			20,864,036			2,973,102			60,644,094			62,380,233			8,889,113
Youdao		1,538,783			1,321,721			1,572,541			224,085			3,908,687			4,286,121			610,767
NetEase Cloud Music		1,973,064			2,040,952			1,999,163			284,878			5,881,444			6,069,656			864,919
Innovative businesses and others		1,978,708			2,067,313			1,774,139			252,813			5,893,769			5,811,415			828,120
Total net revenues		27,270,406			25,485,805			26,209,879			3,734,878			76,327,994			78,547,425			11,192,919

Cost of revenues:
Games and related value-added services		(6,749,507	)		(6,008,604	)		(6,503,146	)		(926,691	)		(19,555,391	)		(19,067,061	)		(2,717,034	)
Youdao		(679,147	)		(684,942	)		(783,085	)		(111,588	)		(1,880,026	)		(2,178,383	)		(310,417	)
NetEase Cloud Music		(1,436,552	)		(1,385,756	)		(1,343,921	)		(191,507	)		(4,379,785	)		(3,988,683	)		(568,383	)
Innovative businesses and others		(1,438,900	)		(1,364,285	)		(1,103,122	)		(157,194	)		(4,274,533	)		(3,778,555	)		(538,440	)
Total cost of revenues		(10,304,106	)		(9,443,587	)		(9,733,274	)		(1,386,980	)		(30,089,735	)		(29,012,682	)		(4,134,274	)

Gross profit:
Games and related value-added services		15,030,344			14,047,215			14,360,890			2,046,411			41,088,703			43,313,172			6,172,079
Youdao		859,636			636,779			789,456			112,497			2,028,661			2,107,738			300,350
NetEase Cloud Music		536,512			655,196			655,242			93,371			1,501,659			2,080,973			296,536
Innovative businesses and others		539,808			703,028			671,017			95,619			1,619,236			2,032,860			289,680
Total gross profit		16,966,300			16,042,218			16,476,605			2,347,898			46,238,259			49,534,743			7,058,645

Gross profit margin:
Games and related value-added services		69.0	%		70.0	%		68.8	%		68.8	%		67.8	%		69.4	%		69.4	%
Youdao		55.9	%		48.2	%		50.2	%		50.2	%		51.9	%		49.2	%		49.2	%
NetEase Cloud Music		27.2	%		32.1	%		32.8	%		32.8	%		25.5	%		34.3	%		34.3	%
Innovative businesses and others		27.3	%		34.0	%		37.8	%		37.8	%		27.5	%		35.0	%		35.0	%