NetEase, Inc 6-K, filed Nov 16, 2023

NetEase, Inc. (NTES)

6-K 2023-11-16 For: 2023-11-16

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Added on April 02, 2026

About this 6-K

NetEase, Inc filed this 6-K on November 16, 2023.

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		NETEASE, INC.

		By:	/s/ Charles Zhaoxuan Yang
		Name:	Charles Zhaoxuan Yang
		Title:	Chief Financial Officer

Date:	November 16, 2023

	December 31,		September 30,		September 30,
	2022		2023		2023
	RMB		RMB		USD (Note 1)
Assets
Current assets:
Cash and cash equivalents		24,889,000		15,116,464		2,071,884
Time deposits		84,947,679		87,174,226		11,948,222
Restricted cash		2,699,055		3,041,312		416,846
Accounts receivable, net		5,002,872		6,492,193		889,829
Inventories		993,636		721,958		98,953
Prepayments and other current assets, net		5,448,284		6,483,086		888,581
Short-term investments		7,622,673		8,536,188		1,169,982
Total current assets		131,603,199		127,565,427		17,484,297

Non-current assets:
Property, equipment and software, net		6,342,330		7,582,320		1,039,243
Land use rights, net		4,121,767		4,109,744		563,287
Deferred tax assets		1,480,789		1,422,599		194,983
Time deposits		2,973,840		2,220,840		304,391
Restricted cash		270		290		40
Other long-term assets		26,238,790		28,673,785		3,930,069
Total non-current assets		41,157,786		44,009,578		6,032,013
Total assets		172,760,985		171,575,005		23,516,310

Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity
Current liabilities:
Accounts payable		1,507,141		863,331		118,329
Salary and welfare payables		4,732,941		2,833,841		388,410
Taxes payable		2,813,096		3,072,590		421,133
Short-term loans		23,875,704		11,221,194		1,537,993
Contract liabilities		12,518,890		14,188,592		1,944,708
Accrued liabilities and other payables		11,381,075		11,689,169		1,602,134
Total current liabilities		56,828,847		43,868,717		6,012,707

Non-current liabilities:
Deferred tax liabilities		2,126,120		2,005,689		274,903
Long-term loans		3,654,964		427,997		58,662
Other long-term liabilities		1,277,574		1,327,427		181,938
Total non-current liabilities		7,058,658		3,761,113		515,503
Total liabilities		63,887,505		47,629,830		6,528,210

Redeemable noncontrolling interests		136,440		144,382		19,789

NetEase, Inc.’s shareholders’ equity		104,731,317		119,978,728		16,444,453
Noncontrolling interests		4,005,723		3,822,065		523,858
Total equity		108,737,040		123,800,793		16,968,311

Total liabilities, redeemable noncontrolling interests and shareholders’ equity		172,760,985		171,575,005		23,516,310

	Three Months Ended												Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	2022			2023			2023			2023			2022			2023			2023
	RMB			RMB			RMB			USD (Note 1)			RMB			RMB			USD (Note 1)
Net revenues		24,426,760			24,011,301			27,270,406			3,737,720			71,141,680			76,327,994			10,461,622
Cost of revenues		(10,682,868	)		(9,635,888	)		(10,304,106	)		(1,412,295	)		(31,619,918	)		(30,089,735	)		(4,124,141	)
Gross profit		13,743,892			14,375,413			16,966,300			2,325,425			39,521,762			46,238,259			6,337,481

Operating expenses:
Selling and marketing expenses		(3,768,618	)		(3,271,705	)		(3,567,153	)		(488,919	)		(9,984,812	)		(9,743,904	)		(1,335,513	)
General and administrative expenses		(1,264,342	)		(1,132,147	)		(1,494,186	)		(204,795	)		(3,392,866	)		(3,648,011	)		(500,002	)
Research and development expenses		(3,969,156	)		(3,908,907	)		(4,347,052	)		(595,813	)		(10,948,938	)		(12,005,691	)		(1,645,517	)
Total operating expenses		(9,002,116	)		(8,312,759	)		(9,408,391	)		(1,289,527	)		(24,326,616	)		(25,397,606	)		(3,481,032	)
Operating profit		4,741,776			6,062,654			7,557,909			1,035,898			15,195,146			20,840,653			2,856,449

Other income/ (expenses):
Investment income, net		1,347,269			287,691			556,603			76,289			91,078			1,315,662			180,326
Interest income, net		556,148			935,578			1,147,227			157,241			1,520,383			2,858,835			391,836
Exchange gains/ (losses), net		1,398,045			1,464,956			(400,483	)		(54,891	)		2,165,448			677,905			92,915
Other, net		164,435			120,826			240,024			32,898			501,940			618,883			84,825
Income before tax		8,207,673			8,871,705			9,101,280			1,247,435			19,473,995			26,311,938			3,606,351
Income tax		(1,586,673	)		(712,090	)		(1,290,398	)		(176,864	)		(4,065,264	)		(3,631,047	)		(497,676	)

Net income from continuing operations		6,621,000			8,159,615			7,810,882			1,070,571			15,408,731			22,680,891			3,108,675
Net income from discontinued operations		-			-			-			-			624,864			-			-
Net income		6,621,000			8,159,615			7,810,882			1,070,571			16,033,595			22,680,891			3,108,675

Accretion of redeemable noncontrolling interests		(781	)		(868	)		(895	)		(123	)		(2,268	)		(2,623	)		(360	)
Net loss attributable to noncontrolling interests		79,145			84,020			26,901			3,687			353,536			156,021			21,384
Net income attributable to the Company’s shareholders		6,699,364			8,242,767			7,836,888			1,074,135			16,384,863			22,834,289			3,129,699
Including:
-Net income from continuing operations attributable to the Company’s shareholders		6,699,364			8,242,767			7,836,888			1,074,135			15,759,999			22,834,289			3,129,699
-Net income from discontinued operations attributable to the Company’s shareholders		-			-			-			-			624,864			-			-

Basic net income per share *		2.05			2.56			2.44			0.33			5.01			7.10			0.97
-Continuing operations		2.05			2.56			2.44			0.33			4.82			7.10			0.97
-Discontinued operations		-			-			-			-			0.19			-			-

Basic net income per ADS *		10.27			12.80			12.19			1.67			25.04			35.48			4.86
-Continuing operations		10.27			12.80			12.19			1.67			24.09			35.48			4.86
-Discontinued operations		-			-			-			-			0.95			-			-

Diluted net income per share *		2.03			2.54			2.41			0.33			4.96			7.02			0.96
-Continuing operations		2.03			2.54			2.41			0.33			4.77			7.02			0.96
-Discontinued operations		-			-			-			-			0.19			-			-

Diluted net income per ADS *		10.17			12.69			12.06			1.65			24.79			35.11			4.81
-Continuing operations		10.17			12.69			12.06			1.65			23.84			35.11			4.81
-Discontinued operations		-			-			-			-			0.95			-			-

Weighted average number of ordinary shares used in calculating net income per share *
Basic		3,262,989			3,218,783			3,213,834			3,213,834			3,271,602			3,217,873			3,217,873
Diluted		3,293,766			3,248,916			3,249,649			3,249,649			3,305,081			3,251,666			3,251,666

	Three Months Ended												Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	2022			2023			2023			2023			2022			2023			2023
	RMB			RMB			RMB			USD (Note 1)			RMB			RMB			USD (Note 1)
Cash flows from operating activities:
Net income		6,621,000			8,159,615			7,810,882			1,070,571			16,033,595			22,680,891			3,108,675
Net income from discontinued operations		-			-			-			-			(624,864	)		-			-
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		713,852			661,363			651,856			89,344			2,089,068			2,395,488			328,329
Fair value changes of equity security investments		680,019			(78,035	)		(382,132	)		(52,376	)		2,956,180			(686,887	)		(94,146	)
Impairment losses on investments and other long-term assets		6,763			47,870			280,641			38,465			254,848			328,511			45,026
Fair value changes of short-term investments		(119,620	)		(96,884	)		(72,875	)		(9,988	)		(319,278	)		(307,675	)		(42,170	)
Share-based compensation cost		786,999			787,862			819,548			112,328			2,297,600			2,429,823			333,035
Allowance for expected credit losses		44,126			8,540			22,386			3,068			54,778			51,646			7,079
Losses on disposal of property, equipment and software		528			252			2,649			363			2,454			2,291			314
Unrealized exchange (gains)/ losses		(1,401,893	)		(1,466,295	)		362,213			49,645			(2,193,925	)		(718,121	)		(98,427	)
Gains on disposal of long-term investments		(1,724,433	)		(16,382	)		(3,197	)		(438	)		(1,728,433	)		(25,347	)		(3,474	)
Deferred income taxes		(234,336	)		(334,380	)		(305,703	)		(41,900	)		(88,647	)		(62,417	)		(8,555	)
Share of results on equity method investees		(159,128	)		(129,292	)		(160,042	)		(21,936	)		(1,205,195	)		(385,142	)		(52,788	)
Changes in operating assets and liabilities:
Accounts receivable		35,786			770,551			(1,177,732	)		(161,422	)		330,143			(1,523,463	)		(208,808	)
Inventories		(88,300	)		69,410			84,970			11,646			33,082			271,710			37,241
Prepayments and other assets		368,673			(7,233	)		(573,631	)		(78,623	)		(364,782	)		(455,037	)		(62,368	)
Accounts payable		(84,434	)		(115,791	)		150,868			20,678			(128,355	)		(577,862	)		(79,203	)
Salary and welfare payables		(567,676	)		758,106			(588,217	)		(80,622	)		(1,541,111	)		(2,055,848	)		(281,777	)
Taxes payable		475,245			(992,892	)		515,087			70,599			10,457			255,911			35,076
Contract liabilities		1,580,450			(41,196	)		1,560,628			213,903			1,781,919			2,009,423			275,414
Accrued liabilities and other payables		552,688			(306,784	)		845,721			115,917			1,050,486			(104,899	)		(14,378	)
Net cash provided by operating activities		7,486,309			7,678,405			9,843,920			1,349,222			18,700,020			23,522,996			3,224,095

Cash flows from investing activities:
Purchase of property, equipment and software		(557,028	)		(520,544	)		(643,144	)		(88,150	)		(1,751,443	)		(1,816,627	)		(248,989	)
Proceeds from sale of property, equipment and software		3,307			4,292			3,101			425			39,210			9,897			1,356
Purchase of intangible assets, content and licensed copyrights		(152,276	)		(283,321	)		(742,523	)		(101,771	)		(381,233	)		(1,852,526	)		(253,910	)
Net change in short-term investments with terms of three months or less		156,475			1,630,013			(1,993,921	)		(273,290	)		1,708,147			(1,087,059	)		(148,994	)
Purchase of short-term investments with terms over three months		-			-			-			-			(1,250,000	)		-			-
Proceeds from maturities of short-term investments with terms over three months		1,195,475			-			376,950			51,665			3,208,478			481,219			65,957
Investment in long-term investments and acquisition of subsidiaries		(844,513	)		(270,228	)		(417,448	)		(57,216	)		(3,434,752	)		(1,916,724	)		(262,709	)
Proceeds from disposal of long-term investments		2,277,625			16,531			20,898			2,864			2,318,275			78,709			10,788
Placement/ rollover of matured time deposits		(18,830,844	)		(10,874,831	)		(30,831,994	)		(4,225,876	)		(75,998,870	)		(78,026,928	)		(10,694,480	)
Proceeds from maturities of time deposits		17,770,581			21,918,791			33,893,436			4,645,482			64,570,517			78,144,576			10,710,605
Change in other long-term assets		(31,782	)		(31,189	)		(181,263	)		(24,844	)		(262,227	)		(333,293	)		(45,682	)
Net cash provided by/ (used in) investing activities		987,020			11,589,514			(515,908	)		(70,711	)		(11,233,898	)		(6,318,756	)		(866,058	)

Cash flows from financing activities:
Net changes from loans with terms of three months or less		(3,645,232	)		(14,970,935	)		(7,501,788	)		(1,028,206	)		2,479,450			(19,834,683	)		(2,718,569	)
Proceed of loans with terms over three months		70,691			2,171,541			7,607,060			1,042,634			3,627,609			11,058,160			1,515,647
Payment of loans with terms over three months		(50,208	)		(3,233,500	)		(4,250,550	)		(582,586	)		(82,481	)		(7,524,472	)		(1,031,315	)
Net amounts received/ (paid) related to capital contribution from or repurchase of noncontrolling interests shareholders		14,305			22,228			11,573			1,586			(54,537	)		58,150			7,970
Cash paid for repurchase of NetEase’s ADSs/ purchase of subsidiaries’ ADSs and shares		(1,956,829	)		(2,195,210	)		(296,495	)		(40,638	)		(5,320,359	)		(4,608,462	)		(631,642	)
Dividends paid to NetEase’s shareholders		(1,617,574	)		(2,119,316	)		(2,423,355	)		(332,148	)		(4,704,683	)		(5,755,011	)		(788,790	)
Net cash used in financing activities		(7,184,847	)		(20,325,192	)		(6,853,555	)		(939,358	)		(4,055,001	)		(26,606,318	)		(3,646,699	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies		3,470			(47,876	)		4,197			575			57,166			(28,181	)		(3,863	)
Net increase/ (decrease) in cash, cash equivalents and restricted cash		1,291,952			(1,105,149	)		2,478,654			339,728			3,468,287			(9,430,259	)		(1,292,525	)
Cash, cash equivalents and restricted cash, at the beginning of the period		19,552,450			16,784,561			15,679,412			2,149,042			17,376,115			27,588,325			3,781,295
Cash, cash equivalents and restricted cash, at end of the period		20,844,402			15,679,412			18,158,066			2,488,770			20,844,402			18,158,066			2,488,770

Supplemental disclosures of cash flow information:
Cash paid for income tax, net		1,550,748			1,625,045			1,165,196			159,703			4,121,174			3,864,820			529,718
Cash paid for interest expenses		193,329			326,646			105,665			14,483			324,149			708,025			97,043

	Three Months Ended												Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,			September 30,			September 30,
	2022			2023			2023			2023			2022			2023			2023
	RMB			RMB			RMB			USD (Note 1)			RMB			RMB			USD (Note 1)
Net revenues:
Games and related value-added services		18,699,106			18,798,646			21,779,851			2,985,177			55,480,763			60,644,094			8,311,965
Youdao		1,402,434			1,206,634			1,538,783			210,908			3,559,200			3,908,687			535,730
Cloud Music		2,357,248			1,948,539			1,973,064			270,431			6,615,964			5,881,444			806,119
Innovative businesses and others		1,967,972			2,057,482			1,978,708			271,204			5,485,753			5,893,769			807,808
Total net revenues		24,426,760			24,011,301			27,270,406			3,737,720			71,141,680			76,327,994			10,461,622

Cost of revenues:
Games and related value-added services		(6,551,193	)		(6,122,836	)		(6,749,507	)		(925,096	)		(19,978,841	)		(19,555,391	)		(2,680,290	)
Youdao		(642,254	)		(639,459	)		(679,147	)		(93,085	)		(1,751,443	)		(1,880,026	)		(257,679	)
Cloud Music		(2,023,600	)		(1,422,855	)		(1,436,552	)		(196,896	)		(5,745,203	)		(4,379,785	)		(600,299	)
Innovative businesses and others		(1,465,821	)		(1,450,738	)		(1,438,900	)		(197,218	)		(4,144,431	)		(4,274,533	)		(585,873	)
Total cost of revenues		(10,682,868	)		(9,635,888	)		(10,304,106	)		(1,412,295	)		(31,619,918	)		(30,089,735	)		(4,124,141	)

Gross profit:
Games and related value-added services		12,147,913			12,675,810			15,030,344			2,060,081			35,501,922			41,088,703			5,631,675
Youdao		760,180			567,175			859,636			117,823			1,807,757			2,028,661			278,051
Cloud Music		333,648			525,684			536,512			73,535			870,761			1,501,659			205,820
Innovative businesses and others		502,151			606,744			539,808			73,986			1,341,322			1,619,236			221,935
Total gross profit		13,743,892			14,375,413			16,966,300			2,325,425			39,521,762			46,238,259			6,337,481

Gross profit margin:
Games and related value-added services		65.0	%		67.4	%		69.0	%		69.0	%		64.0	%		67.8	%		67.8	%
Youdao		54.2	%		47.0	%		55.9	%		55.9	%		50.8	%		51.9	%		51.9	%
Cloud Music		14.2	%		27.0	%		27.2	%		27.2	%		13.2	%		25.5	%		25.5	%
Innovative businesses and others		25.5	%		29.5	%		27.3	%		27.3	%		24.5	%		27.5	%		27.5	%