NetEase, Inc 6-K, filed Sep 21, 2023

NetEase, Inc. (NTES)

6-K 2023-09-21 For: 2023-09-21

View Original

Added on April 02, 2026

About this 6-K

NetEase, Inc filed this 6-K on September 21, 2023.

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

		NETEASE, INC.

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

Date:	September 21, 2023

	December 31,		June 30,		June 30,
	2022		2023		2023
		RMB		RMB		USD (Note 1)
Assets
Current assets:
Cash and cash equivalents		24,889,000		12,766,270		1,760,549
Time deposits		84,947,679		90,195,524		12,438,532
Restricted cash		2,699,055		2,912,852		401,701
Accounts receivable, net		5,002,872		5,343,028		736,837
Inventories		993,636		806,960		111,285
Prepayments and other current assets, net		5,448,284		5,352,876		738,195
Short-term investments		7,622,673		6,846,342		944,154
Total current assets		131,603,199		124,223,852		17,131,253

Non-current assets:
Property, equipment and software, net		6,342,330		7,347,204		1,013,226
Land use rights, net		4,121,767		4,147,468		571,962
Deferred tax assets		1,480,789		1,320,697		182,132
Time deposits		2,973,840		2,681,840		369,843
Restricted cash		270		290		40
Other long-term assets		26,238,790		28,184,371		3,886,803
Total non-current assets		41,157,786		43,681,870		6,024,006
Total assets		172,760,985		167,905,722		23,155,259

Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity
Current liabilities:
Accounts payable		1,507,141		740,607		102,134
Salary and welfare payables		4,732,941		3,386,236		466,983
Taxes payable		2,813,096		2,560,047		353,047
Short-term loans		23,875,704		11,881,623		1,638,551
Contract liabilities		12,518,890		12,943,844		1,785,038
Accrued liabilities and other payables		11,381,075		10,826,617		1,493,060
Total current liabilities		56,828,847		42,338,974		5,838,813

Non-current liabilities:
Deferred tax liabilities		2,126,120		2,209,583		304,715
Long-term loans		3,654,964		3,953,664		545,235
Other long-term liabilities		1,277,574		1,137,672		156,892
Total non-current liabilities		7,058,658		7,300,919		1,006,842
Total liabilities		63,887,505		49,639,893		6,845,655

Redeemable noncontrolling interests		136,440		135,415		18,675

NetEase, Inc.’s shareholders’ equity		104,731,317		114,264,783		15,757,834
Noncontrolling interests		4,005,723		3,865,631		533,095
Total equity		108,737,040		118,130,414		16,290,929

Total liabilities, redeemable noncontrolling interests and shareholders’ equity		172,760,985		167,905,722		23,155,259

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,			June 30,			June 30,
	2022			2023			2023			2023			2022			2023			2023
	RMB			RMB			RMB			USD (Note 1)			RMB			RMB			USD (Note 1)
Net revenues		23,159,078			25,046,287			24,011,301			3,311,310			46,714,920			49,057,588			6,765,351
Cost of revenues		(10,217,587	)		(10,149,741	)		(9,635,888	)		(1,328,851	)		(20,937,050	)		(19,785,629	)		(2,728,563	)
Gross profit		12,941,491			14,896,546			14,375,413			1,982,459			25,777,870			29,271,959			4,036,788

Operating expenses:
Selling and marketing expenses		(3,300,705	)		(2,905,046	)		(3,271,705	)		(451,188	)		(6,216,194	)		(6,176,751	)		(851,813	)
General and administrative expenses		(1,112,755	)		(1,021,678	)		(1,132,147	)		(156,130	)		(2,128,524	)		(2,153,825	)		(297,026	)
Research and development expenses		(3,581,700	)		(3,749,732	)		(3,908,907	)		(539,063	)		(6,979,782	)		(7,658,639	)		(1,056,175	)
Total operating expenses		(7,995,160	)		(7,676,456	)		(8,312,759	)		(1,146,381	)		(15,324,500	)		(15,989,215	)		(2,205,014	)
Operating profit		4,946,331			7,220,090			6,062,654			836,078			10,453,370			13,282,744			1,831,774

Other income/ (expenses):
Investment(loss)/ income, net		(707,489	)		471,368			287,691			39,674			(1,256,191	)		759,059			104,679
Interest income, net		505,991			776,030			935,578			129,022			964,235			1,711,608			236,042
Exchange gains/ (losses), net		865,283			(386,568	)		1,464,956			202,027			767,403			1,078,388			148,717
Other, net		121,175			258,033			120,826			16,663			337,505			378,859			52,247
Income before tax		5,731,291			8,338,953			8,871,705			1,223,464			11,266,322			17,210,658			2,373,459
Income tax		(1,259,320	)		(1,628,559	)		(712,090	)		(98,202	)		(2,478,591	)		(2,340,649	)		(322,790	)

Net income from continuing operations		4,471,971			6,710,394			8,159,615			1,125,262			8,787,731			14,870,009			2,050,669
Net income from discontinued operations		624,864			-			-			-			624,864			-			-
Net income		5,096,835			6,710,394			8,159,615			1,125,262			9,412,595			14,870,009			2,050,669

Accretion of redeemable noncontrolling interests		(754	)		(860	)		(868	)		(120	)		(1,487	)		(1,728	)		(238	)
Net loss attributable to noncontrolling interests		195,395			45,100			84,020			11,587			274,391			129,120			17,806
Net income attributable to the Company’s shareholders		5,291,476			6,754,634			8,242,767			1,136,729			9,685,499			14,997,401			2,068,237
Including:
-Net income from continuing operations attributable to the Company’s shareholders		4,666,612			6,754,634			8,242,767			1,136,729			9,060,635			14,997,401			2,068,237
-Net income from discontinued operations attributable to the Company’s shareholders		624,864			-			-			-			624,864			-			-

Basic net income per share *		1.62			2.10			2.56			0.35			2.96			4.66			0.64
-Continuing operations		1.43			2.10			2.56			0.35			2.77			4.66			0.64
-Discontinued operations		0.19			-			-			-			0.19			-			-

Basic net income per ADS *		8.08			10.49			12.80			1.77			14.78			23.29			3.21
-Continuing operations		7.13			10.49			12.80			1.77			13.83			23.29			3.21
-Discontinued operations		0.95			-			-			-			0.95			-			-

Diluted net income per share *		1.60			2.07			2.54			0.35			2.93			4.61			0.64
-Continuing operations		1.41			2.07			2.54			0.35			2.74			4.61			0.64
-Discontinued operations		0.19			-			-			-			0.19			-			-

Diluted net income per ADS *		8.00			10.37			12.69			1.75			14.63			23.05			3.18
-Continuing operations		7.05			10.37			12.69			1.75			13.69			23.05			3.18
-Discontinued operations		0.95			-			-			-			0.94			-			-

Weighted average number of ordinary shares used in calculating net income per share *
Basic		3,274,695			3,221,083			3,218,783			3,218,783			3,275,980			3,219,926			3,219,926
Diluted		3,305,504			3,256,511			3,248,916			3,248,916			3,310,809			3,252,707			3,252,707

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,			June 30,			June 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		5,096,835			6,710,394			8,159,615			1,125,262			9,412,595			14,870,009			2,050,669
Net income from discontinued operations		(624,864	)		-			-			-			(624,864	)		-			-
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		609,036			1,082,269			661,363			91,206			1,375,216			1,743,632			240,458
Fair value changes of equity security investments		735,159			(226,720	)		(78,035	)		(10,762	)		2,276,161			(304,755	)		(42,028	)
Impairment losses of investments and other long-term assets		243,085			-			47,870			6,602			248,085			47,870			6,602
Fair value changes of short-term investments		(119,882	)		(137,916	)		(96,884	)		(13,361	)		(199,658	)		(234,800	)		(32,380	)
Share-based compensation cost		764,447			822,413			787,862			108,652			1,510,601			1,610,275			222,067
Allowance for expected credit losses		10,965			20,720			8,540			1,178			10,652			29,260			4,035
Losses/ (gains) on disposal of property, equipment and software		481			(610	)		252			35			1,926			(358	)		(49	)
Unrealized exchange (gains)/ losses		(890,066	)		385,961			(1,466,295	)		(202,211	)		(792,032	)		(1,080,334	)		(148,985	)
Gains on disposal of long-term investments		-			(5,768	)		(16,382	)		(2,259	)		(4,000	)		(22,150	)		(3,055	)
Deferred income taxes		(169,539	)		577,666			(334,380	)		(46,113	)		145,689			243,286			33,551
Share of results on equity method investees		(134,569	)		(95,808	)		(129,292	)		(17,830	)		(1,046,067	)		(225,100	)		(31,043	)
Changes in operating assets and liabilities:
Accounts receivable		82,282			(1,116,282	)		770,551			106,264			294,357			(345,731	)		(47,678	)
Inventories		17,791			117,330			69,410			9,572			121,382			186,740			25,753
Prepayments and other assets		(163,612	)		125,827			(7,233	)		(997	)		(733,455	)		118,594			16,355
Accounts payable		48,452			(612,939	)		(115,791	)		(15,968	)		(43,921	)		(728,730	)		(100,496	)
Salary and welfare payables		782,789			(2,225,737	)		758,106			104,548			(973,435	)		(1,467,631	)		(202,396	)
Taxes payable		(538,234	)		733,716			(992,892	)		(136,926	)		(464,788	)		(259,176	)		(35,742	)
Contract liabilities		279,669			489,991			(41,196	)		(5,681	)		201,469			448,795			61,892
Accrued liabilities and other payables		600,934			(643,836	)		(306,784	)		(42,312	)		497,798			(950,620	)		(131,099	)
Net cash provided by operating activities		6,631,159			6,000,671			7,678,405			1,058,899			11,213,711			13,679,076			1,886,431

Cash flows from investing activities:
Purchase of property, equipment and software		(445,054	)		(652,939	)		(520,544	)		(71,786	)		(1,194,415	)		(1,173,483	)		(161,831	)
Proceeds from sale of property, equipment and software		23,338			2,504			4,292			592			35,903			6,796			937
Purchase of intangible assets, content and licensed copyrights		(85,121	)		(826,682	)		(283,321	)		(39,072	)		(228,957	)		(1,110,003	)		(153,076	)
Net change in short-term investments with terms of three months or less		(159,173	)		(723,151	)		1,630,013			224,789			1,551,672			906,862			125,062
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		1,459,172			104,269			-			-			2,013,003			104,269			14,379
Investment in long-term investments		(899,968	)		(1,229,048	)		(270,228	)		(37,266	)		(2,590,239	)		(1,499,276	)		(206,760	)
Proceeds from disposal of long-term investments		6,413			41,280			16,531			2,280			40,650			57,811			7,973
Placement/ rollover of matured time deposits		(33,122,029	)		(36,320,103	)		(10,874,831	)		(1,499,708	)		(57,168,026	)		(47,194,934	)		(6,508,479	)
Proceeds from maturities of time deposits		32,100,141			22,332,349			21,918,791			3,022,740			46,799,936			44,251,140			6,102,511
Change in other long-term assets		(60,900	)		(120,841	)		(31,189	)		(4,301	)		(230,445	)		(152,030	)		(20,966	)
Net cash (used in)/ provided by investing activities		(1,183,181	)		(17,392,362	)		11,589,514			1,598,268			(12,220,918	)		(5,802,848	)		(800,250	)

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,			June 30,			June 30,
	2022			2023			2023			2023			2022			2023			2023
	RMB			RMB			RMB			USD (Note 1)			RMB			RMB			USD (Note 1)
Cash flows from financing activities:
Net changes from loans with terms of three months or less		2,721,487			2,638,040			(14,970,935	)		(2,064,586	)		6,124,682			(12,332,895	)		(1,700,784	)
Proceed of loans with terms over three months		1,641,708			1,279,559			2,171,541			299,469			3,556,918			3,451,100			475,928
Payment of loans with terms over three months		(32,273	)		(40,422	)		(3,233,500	)		(445,920	)		(32,273	)		(3,273,922	)		(451,494	)
Net Amounts received/ (paid) related to capital contribution from or repurchase of noncontrolling interests shareholders		33,200			24,349			22,228			3,065			(68,842	)		46,577			6,423
Cash paid for repurchase of NetEase’s ADSs/ purchase of subsidiaries’ ADSs and shares		(2,119,613	)		(2,116,757	)		(2,195,210	)		(302,733	)		(3,363,530	)		(4,311,967	)		(594,647	)
Dividends paid to NetEase’s shareholders		(1,403,637	)		(1,212,340	)		(2,119,316	)		(292,267	)		(3,087,109	)		(3,331,656	)		(459,456	)
Net cash provided by/ (used in) financing activities		840,872			572,429			(20,325,192	)		(2,802,972	)		3,129,846			(19,752,763	)		(2,724,030	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies		74,898			15,498			(47,876	)		(6,602	)		53,696			(32,378	)		(4,465	)
Net increase/ (decrease) in cash, cash equivalents and restricted cash		6,363,748			(10,803,764	)		(1,105,149	)		(152,407	)		2,176,335			(11,908,913	)		(1,642,314	)
Cash, cash equivalents and restricted cash, at the beginning of the period		13,188,702			27,588,325			16,784,561			2,314,697			17,376,115			27,588,325			3,804,604
Cash, cash equivalents and restricted cash, at end of the period		19,552,450			16,784,561			15,679,412			2,162,290			19,552,450			15,679,412			2,162,290

Supplemental disclosures of cash flow information:
Cash paid for income tax, net		1,055,096			1,074,579			1,625,045			224,104			2,570,426			2,699,624			372,295
Cash paid for interest expense		93,079			275,714			326,646			45,047			130,820			602,360			83,069

				For the Six Months Ended June 30, 2022 IFRSs adjustments
	Amounts as reported under U.S.			Investments measured at fair value			Redeemable preferred shares			Amounts as reported under
	GAAP			(Note (a))			(Note (b))			IFRSs
Investment (loss)/income, net		(1,256,191	)		423,616			-			(832,575	)
Income before tax		11,266,322			423,616			-			11,689,938
Income tax		(2,478,591	)		(915	)		-			(2,479,506	)
Net income		9,412,595			422,701			-			9,835,296
Accretion of redeemable noncontrolling interests		(1,487	)		-			1,487			-
Net loss attributable to noncontrolling interests		274,391			-			(5,116	)		269,275
Net income attributable to the Company’s shareholders		9,685,499			422,701			(3,629	)		10,104,571

				For the Six Months Ended June 30, 2023 IFRSs adjustments
	Amounts as reported under U.S.			Investments measured at fair value		Redeemable preferred shares			Amounts as reported under
	GAAP			(Note (a))		(Note (b))			IFRSs
Investment income, net		759,059			694,453		-			1,453,512
Income before tax		17,210,658			694,453		-			17,905,111
Income tax		(2,340,649	)		15,289		-			(2,325,360	)
Net income		14,870,009			709,742		-			15,579,751
Accretion of redeemable noncontrolling interests		(1,728	)		-		1,728			-
Net loss attributable to noncontrolling interests		129,120			-		(3,879	)		125,241
Net income attributable to the Company’s shareholders		14,997,401			709,742		(2,151	)		15,704,992

			As of December 31, 2022 IFRSs adjustments
	Amounts as reported under U.S.		Investments measured at fair value			Redeemable preferred shares			Amounts as reported under
	GAAP		(Note (a))			(Note (b))			IFRSs
Other long-term assets		26,238,790		(13,305,116	)		-			12,933,674
Financial assets at fair value through profit or loss		-		16,445,317			-			16,445,317
Total Assets		172,760,985		3,140,201			-			175,901,186
Redeemable preferred shares		-		-			168,215			168,215
Deferred tax liabilities		2,126,120		27,969			-			2,154,089
Total Liabilities		63,887,505		27,969			168,215			64,083,689
Redeemable noncontrolling interests		136,440		-			(136,440	)		-
Total equity		108,737,040		3,112,232			(31,775	)		111,817,497
Total liabilities, redeemable noncontrolling interests and shareholders’ equity		172,760,985		3,140,201			-			175,901,186

			As of June 30, 2023 IFRSs adjustments
	Amounts as reported under U.S.		Investments measured at fair value			Redeemable preferred shares			Amounts as reported under
	GAAP		(Note (a))			(Note (b))			IFRSs
Other long-term assets		28,184,371		(14,868,819	)		-			13,315,552
Financial assets at fair value through profit or loss		-		18,703,473			-			18,703,473
Total Assets		167,905,722		3,834,654			-			171,740,376
Redeemable preferred shares		-		-			168,215			168,215
Deferred tax liabilities		2,209,583		12,680			-			2,222,263
Total Liabilities		49,639,893		12,680			168,215			49,820,788
Redeemable noncontrolling interests		135,415		-			(135,415	)		-
Total equity		118,130,414		3,821,974			(32,800	)		121,919,588
Total liabilities, redeemable noncontrolling interests and shareholders' equity		167,905,722		3,834,654			-			171,740,376

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,			June 30,			June 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		18,139,843			20,065,597			18,798,646			2,592,452			36,781,657			38,864,243			5,359,624
Youdao		956,225			1,163,270			1,206,634			166,402			2,156,766			2,369,904			326,825
Cloud Music		2,191,510			1,959,841			1,948,539			268,716			4,258,716			3,908,380			538,990
Innovative businesses and others		1,871,500			1,857,579			2,057,482			283,740			3,517,781			3,915,061			539,912
Total net revenues		23,159,078			25,046,287			24,011,301			3,311,310			46,714,920			49,057,588			6,765,351

Cost of revenues:
Games and related value-added services		(6,375,598	)		(6,683,048	)		(6,122,836	)		(844,379	)		(13,427,648	)		(12,805,884	)		(1,766,012	)
Youdao		(546,498	)		(561,420	)		(639,459	)		(88,185	)		(1,109,189	)		(1,200,879	)		(165,609	)
Cloud Music		(1,905,954	)		(1,520,378	)		(1,422,855	)		(196,221	)		(3,721,603	)		(2,943,233	)		(405,890	)
Innovative businesses and others		(1,389,537	)		(1,384,895	)		(1,450,738	)		(200,066	)		(2,678,610	)		(2,835,633	)		(391,052	)
Total cost of revenues		(10,217,587	)		(10,149,741	)		(9,635,888	)		(1,328,851	)		(20,937,050	)		(19,785,629	)		(2,728,563	)

Gross profit:
Games and related value-added services		11,764,245			13,382,549			12,675,810			1,748,073			23,354,009			26,058,359			3,593,612
Youdao		409,727			601,850			567,175			78,217			1,047,577			1,169,025			161,216
Cloud Music		285,556			439,463			525,684			72,495			537,113			965,147			133,100
Innovative businesses and others		481,963			472,684			606,744			83,674			839,171			1,079,428			148,860
Total gross profit		12,941,491			14,896,546			14,375,413			1,982,459			25,777,870			29,271,959			4,036,788

Gross profit margin:
Games and related value-added services		64.9	%		66.7	%		67.4	%		67.4	%		63.5	%		67.0	%		67.0	%
Youdao		42.8	%		51.7	%		47.0	%		47.0	%		48.6	%		49.3	%		49.3	%
Cloud Music		13.0	%		22.4	%		27.0	%		27.0	%		12.6	%		24.7	%		24.7	%
Innovative businesses and others		25.8	%		25.4	%		29.5	%		29.5	%		23.9	%		27.6	%		27.6	%