NetEase, Inc 6-K, filed Aug 22, 2024

NetEase, Inc. (NTES)

6-K 2024-08-22 For: 2024-08-22

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Added on April 02, 2026

About this 6-K

NetEase, Inc filed this 6-K on August 22, 2024.

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		NETEASE, INC.

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

Date:	August 22, 2024

	December 31,		June 30,		June 30,
	2023		2024		2024
	RMB		RMB		USD (Note 1)
Assets
Current assets:
Cash and cash equivalents		21,428,902		18,982,239		2,612,043
Time deposits		100,856,034		93,456,225		12,860,005
Restricted cash		2,777,206		2,869,827		394,901
Accounts receivable, net		6,422,417		6,364,847		875,832
Inventories		695,374		574,441		79,046
Prepayments and other current assets, net		6,076,595		5,487,749		755,139
Short-term investments		4,436,057		10,417,802		1,433,537
Total current assets		142,692,585		138,153,130		19,010,503

Non-current assets:
Property, equipment and software, net		8,075,044		8,092,032		1,113,501
Land use rights, net		4,075,143		4,022,255		553,481
Deferred tax assets		1,560,088		1,504,697		207,053
Time deposits		1,050,000		3,940,000		542,162
Restricted cash		550		3,250		447
Other long-term assets		28,471,568		27,627,257		3,801,637
Total non-current assets		43,232,393		45,189,491		6,218,281
Total assets		185,924,978		183,342,621		25,228,784

Liabilities, Redeemable Noncontrolling Interests and Shareholders’ Equity
Current liabilities:
Accounts payable		881,016		792,003		108,983
Salary and welfare payables		4,857,206		3,606,360		496,252
Taxes payable		2,571,534		2,381,220		327,667
Short-term loans		19,240,163		13,187,247		1,814,626
Contract liabilities		13,362,166		13,615,857		1,873,604
Accrued liabilities and other payables		12,930,399		12,345,208		1,698,757
Total current liabilities		53,842,484		45,927,895		6,319,889

Non-current liabilities:
Deferred tax liabilities		2,299,303		1,448,781		199,359
Long-term loans		427,997		427,997		58,894
Other long-term liabilities		1,271,113		1,192,543		164,099
Total non-current liabilities		3,998,413		3,069,321		422,352
Total liabilities		57,840,897		48,997,216		6,742,241

Redeemable noncontrolling interests		115,759		119,498		16,443

NetEase,Inc.’s shareholders’ equity		124,285,776		130,909,906		18,013,803
Noncontrolling interests		3,682,546		3,316,001		456,297
Total equity		127,968,322		134,225,907		18,470,100

Total liabilities, redeemable noncontrolling interests and shareholders’ equity		185,924,978		183,342,621		25,228,784

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,			June 30,			June 30,
	2023			2024			2024			2024			2023			2024			2024
	RMB			RMB			RMB			USD (Note 1)			RMB			RMB			USD (Note 1)
Net revenues		24,011,301			26,851,741			25,485,805			3,506,963			49,057,588			52,337,546			7,201,886
Cost of revenues		(9,635,888	)		(9,835,821	)		(9,443,587	)		(1,299,481	)		(19,785,629	)		(19,279,408	)		(2,652,935	)
Gross profit		14,375,413			17,015,920			16,042,218			2,207,482			29,271,959			33,058,138			4,548,951

Operating expenses:
Selling and marketing expenses		(3,271,705	)		(4,022,204	)		(3,501,737	)		(481,855	)		(6,176,751	)		(7,523,941	)		(1,035,329	)
General and administrative expenses		(1,132,147	)		(1,196,475	)		(1,091,441	)		(150,187	)		(2,153,825	)		(2,287,916	)		(314,828	)
Research and development expenses		(3,908,907	)		(4,174,758	)		(4,455,717	)		(613,127	)		(7,658,639	)		(8,630,475	)		(1,187,593	)
Total operating expenses		(8,312,759	)		(9,393,437	)		(9,048,895	)		(1,245,169	)		(15,989,215	)		(18,442,332	)		(2,537,750	)
Operating profit		6,062,654			7,622,483			6,993,323			962,313			13,282,744			14,615,806			2,011,201

Other income/(expenses):
Investment income, net		287,691			179,291			103,674			14,266			759,059			282,965			38,937
Interest income, net		935,578			1,277,597			1,186,219			163,229			1,711,608			2,463,816			339,032
Exchange gains/(losses), net		1,464,956			15,011			(239,375	)		(32,939	)		1,078,388			(224,364	)		(30,874	)
Other, net		120,826			193,888			85,694			11,792			378,859			279,582			38,472
Income before tax		8,871,705			9,288,270			8,129,535			1,118,661			17,210,658			17,417,805			2,396,768
Income tax		(712,090	)		(1,485,910	)		(1,300,939	)		(179,015	)		(2,340,649	)		(2,786,849	)		(383,483	)
Net income		8,159,615			7,802,360			6,828,596			939,646			14,870,009			14,630,956			2,013,285

Accretion of redeemable noncontrolling interests		(868	)		(958	)		(960	)		(132	)		(1,728	)		(1,918	)		(264	)
Net loss/(income) attributable to noncontrolling interests and redeemable noncontrolling interests		84,020			(167,456	)		(68,887	)		(9,479	)		129,120			(236,343	)		(32,522	)
Net income attributable to the Company’s shareholders		8,242,767			7,633,946			6,758,749			930,035			14,997,401			14,392,695			1,980,499

Net income per share *
Basic		2.56			2.38			2.10			0.29			4.66			4.48			0.62
Diluted		2.54			2.35			2.08			0.29			4.61			4.43			0.61

Net income per ADS *
Basic		12.80			11.88			10.50			1.45			23.29			22.39			3.08
Diluted		12.69			11.75			10.42			1.43			23.05			22.17			3.05

Weighted average number of ordinary shares used in calculating net income per share *
Basic		3,218,783			3,211,665			3,217,699			3,217,699			3,219,926			3,214,682			3,214,682
Diluted		3,248,916			3,249,452			3,243,056			3,243,056			3,252,707			3,246,254			3,246,254

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,			June 30,			June 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		8,159,615			7,802,360			6,828,596			939,646			14,870,009			14,630,956			2,013,285
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		661,363			567,923			631,957			86,960			1,743,632			1,199,880			165,109
Fair value changes of equity security and other investments		(78,035	)		(368,258	)		(7,887	)		(1,085	)		(304,755	)		(376,145	)		(51,759	)
Impairment losses on investments		47,870			128,417			210,741			28,999			47,870			339,158			46,670
Fair value changes of short-term investments		(96,884	)		(60,810	)		(128,295	)		(17,654	)		(234,800	)		(189,105	)		(26,022	)
Share-based compensation cost		787,862			894,300			1,079,056			148,482			1,610,275			1,973,356			271,543
Allowance for expected credit losses		8,540			11,600			9,281			1,277			29,260			20,881			2,873
Losses/(gains) on disposal of property, equipment and software		252			2,132			(326	)		(45	)		(358	)		1,806			249
Unrealized exchange (gains)/losses		(1,466,295	)		(17,509	)		(209,311	)		(28,802	)		(1,080,334	)		(226,820	)		(31,211	)
Gains on disposal of long-term investments, business and subsidiaries		(16,382	)		(13,487	)		(141,114	)		(19,418	)		(22,150	)		(154,601	)		(21,274	)
Deferred income taxes		(334,380	)		485,054			(1,280,076	)		(176,144	)		243,286			(795,022	)		(109,399	)
Share of results on equity method investees		(129,292	)		164,271			39,200			5,394			(225,100	)		203,471			27,999
Changes in operating assets and liabilities:
Accounts receivable		770,551			(1,358,711	)		1,410,478			194,088			(345,731	)		51,767			7,123
Inventories		69,410			91,378			29,552			4,067			186,740			120,930			16,641
Prepayments and other assets		(7,233	)		326,140			530,856			73,048			118,594			856,996			117,927
Accounts payable		(115,791	)		(7,001	)		(126,862	)		(17,457	)		(728,730	)		(133,863	)		(18,420	)
Salary and welfare payables		758,106			(2,178,608	)		879,058			120,963			(1,467,631	)		(1,299,550	)		(178,824	)
Taxes payable		(992,892	)		1,271,822			(1,462,700	)		(201,274	)		(259,176	)		(190,878	)		(26,266	)
Contract liabilities		(41,196	)		1,574,086			(1,270,324	)		(174,801	)		448,795			303,762			41,799
Accrued liabilities and other payables		(306,784	)		242,070			(490,048	)		(67,433	)		(950,620	)		(247,978	)		(34,123	)
Net cash provided by operating activities		7,678,405			9,557,169			6,531,832			898,811			13,679,076			16,089,001			2,213,920

Cash flows from investing activities:
Purchase of property, equipment and software		(520,544	)		(415,018	)		(168,880	)		(23,239	)		(1,173,483	)		(583,898	)		(80,347	)
Proceeds from sale of property, equipment and software		4,292			3,506			660			91			6,796			4,166			573
Purchase of intangible assets, content and licensed copyrights		(283,321	)		(188,821	)		(399,533	)		(54,978	)		(1,110,003	)		(588,354	)		(80,960	)
Net changes of short-term investments with terms of three months or less		1,630,013			2,401,649			(8,194,289	)		(1,127,572	)		906,862			(5,792,640	)		(797,094	)
Proceeds from maturities of short-term investments with terms over three months		-			-			-			-			104,269			-			-
Investment in long-term investments and acquisition of subsidiaries		(270,228	)		(481,804	)		(193,450	)		(26,620	)		(1,499,276	)		(675,254	)		(92,918	)
Proceeds from disposal of long-term investments, businesses and subsidiaries		16,531			85,456			840,649			115,677			57,811			926,105			127,436
Placement/rollover of matured time deposits		(10,874,831	)		(34,558,836	)		(61,775,606	)		(8,500,606	)		(47,194,934	)		(96,334,442	)		(13,256,060	)
Proceeds from maturities of time deposits		21,918,791			46,048,382			55,211,839			7,597,402			44,251,140			101,260,221			13,933,870
Change in other long-term assets		(31,189	)		(34,625	)		(172,543	)		(23,743	)		(152,030	)		(207,168	)		(28,507	)
Net cash provided by/(used in)investing activities		11,589,514			12,859,889			(14,851,153	)		(2,043,588	)		(5,802,848	)		(1,991,264	)		(274,007	)

Cash flows from financing activities:
Net changes from loans with terms of three months or less		(14,970,935	)		(399,726	)		(2,085,053	)		(286,913	)		(12,332,895	)		(2,484,779	)		(341,917	)
Proceeds of loans with terms over three months		2,171,541			6,998,250			1,069,020			147,102			3,451,100			8,067,270			1,110,093
Payment of loans with terms over three months		(3,233,500	)		(957,000	)		(10,681,827	)		(1,469,868	)		(3,273,922	)		(11,638,827	)		(1,601,556	)
Net amounts received related to capital contribution from noncontrolling interests shareholders		22,228			42,214			50,572			6,959			46,577			92,786			12,768
Cash paid for repurchase of NetEase’s ADSs/purchase of subsidiaries’ ADSs and shares		(2,195,210	)		(1,233,780	)		(2,007,030	)		(276,177	)		(4,311,967	)		(3,240,810	)		(445,950	)
Dividends paid to NetEase’s shareholders		(2,119,316	)		(4,945,016	)		(2,264,799	)		(311,647	)		(3,331,656	)		(7,209,815	)		(992,104	)
Net cash used in financing activities		(20,325,192	)		(495,058	)		(15,919,117	)		(2,190,544	)		(19,752,763	)		(16,414,175	)		(2,258,666	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies		(47,876	)		(43,138	)		8,234			1,133			(32,378	)		(34,904	)		(4,803	)
Net (decrease)/increase in cash, cash equivalents and restricted cash		(1,105,149	)		21,878,862			(24,230,204	)		(3,334,188	)		(11,908,913	)		(2,351,342	)		(323,556	)
Cash, cash equivalents and restricted cash, at the beginning of the period		16,784,561			24,206,658			46,085,520			6,341,579			27,588,325			24,206,658			3,330,947
Cash, cash equivalents and restricted cash, at end of the period		15,679,412			46,085,520			21,855,316			3,007,391			15,679,412			21,855,316			3,007,391

Supplemental disclosures of cash flow information:
Cash paid for income taxes, net		1,625,045			1,182,711			2,848,493			391,966			2,699,624			4,031,204			554,712
Cash paid for interest expenses		326,646			146,455			152,943			21,046			602,360			299,398			41,199

	Three Months Ended												Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,			June 30,			June 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		18,798,646			21,460,378			20,055,819			2,759,772			38,864,243			41,516,197			5,712,819
Youdao		1,206,634			1,391,859			1,321,721			181,875			2,369,904			2,713,580			373,401
Cloud Music		1,948,539			2,029,541			2,040,952			280,844			3,908,380			4,070,493			560,118
Innovative businesses and others		2,057,482			1,969,963			2,067,313			284,472			3,915,061			4,037,276			555,548
Total net revenues		24,011,301			26,851,741			25,485,805			3,506,963			49,057,588			52,337,546			7,201,886

Cost of revenues:
Games and related value-added services		(6,122,836	)		(6,555,311	)		(6,008,604	)		(826,812	)		(12,805,884	)		(12,563,915	)		(1,728,853	)
Youdao		(639,459	)		(710,356	)		(684,942	)		(94,251	)		(1,200,879	)		(1,395,298	)		(191,999	)
Cloud Music		(1,422,855	)		(1,259,006	)		(1,385,756	)		(190,686	)		(2,943,233	)		(2,644,762	)		(363,931	)
Innovative businesses and others		(1,450,738	)		(1,311,148	)		(1,364,285	)		(187,732	)		(2,835,633	)		(2,675,433	)		(368,152	)
Total cost of revenues		(9,635,888	)		(9,835,821	)		(9,443,587	)		(1,299,481	)		(19,785,629	)		(19,279,408	)		(2,652,935	)

Gross profit:
Games and related value-added services		12,675,810			14,905,067			14,047,215			1,932,960			26,058,359			28,952,282			3,983,966
Youdao		567,175			681,503			636,779			87,624			1,169,025			1,318,282			181,402
Cloud Music		525,684			770,535			655,196			90,158			965,147			1,425,731			196,187
Innovative businesses and others		606,744			658,815			703,028			96,740			1,079,428			1,361,843			187,396
Total gross profit		14,375,413			17,015,920			16,042,218			2,207,482			29,271,959			33,058,138			4,548,951

Gross profit margin:
Games and related value-added services		67.4	%		69.5	%		70.0	%		70.0	%		67.0	%		69.7	%		69.7	%
Youdao		47.0	%		49.0	%		48.2	%		48.2	%		49.3	%		48.6	%		48.6	%
Cloud Music		27.0	%		38.0	%		32.1	%		32.1	%		24.7	%		35.0	%		35.0	%
Innovative businesses and others		29.5	%		33.4	%		34.0	%		34.0	%		27.6	%		33.7	%		33.7	%

				For the Six Months Ended June 30, 2023 IFRSs adjustments
	Amounts as reported under U.S.			Investments measured at fair value		Redeemable noncontrolling interests			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 and redeemable 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

				For the Six Months Ended June 30, 2024 IFRSs adjustments
	Amounts as reported under U.S.			Investments measured at fair value			Redeemable noncontrolling interests			Amounts as reported under
	GAAP			(Note (a))			(Note (b))			IFRSs
Fair value changes of redeemable noncontrolling interests		-			-			(571	)		(571	)
Investment income, net		282,965			(108,548	)		-			174,417
Income before tax		17,417,805			(108,548	)		(571	)		17,308,686
Income tax		(2,786,849	)		7,127			-			(2,779,722	)
Net income		14,630,956			(101,421	)		(571	)		14,528,964
Accretion of redeemable noncontrolling interests		(1,918	)		-			1,918			-
Net income attributable to noncontrolling interests and redeemable noncontrolling interests		(236,343	)		-			571			(235,772	)
Net income attributable to the Company’s shareholders		14,392,695			(101,421	)		1,918			14,293,192

			As of December 31, 2023 IFRSs adjustments
	Amounts as reported under U.S.		Investments measured at fair value			Redeemable noncontrolling interests			Amounts as reported under
	GAAP		(Note (a))			(Note (b))			IFRSs
Other long-term assets		28,471,568		(15,673,947	)		-			12,797,621
Financial assets at fair value through profit or loss		-		18,369,496			-			18,369,496
Total Assets		185,924,978		2,695,549			-			188,620,527
Financial liabilities at fair value through profit or loss		-		-			37,961			37,961
Deferred tax liabilities		2,299,303		29,886			-			2,329,189
Total Liabilities		57,840,897		29,886			37,961			57,908,744
Redeemable noncontrolling interests		115,759		-			(115,759	)		-
Total equity		127,968,322		2,665,663			77,798			130,711,783
Total liabilities, redeemable noncontrolling interests and shareholders’ equity		185,924,978		2,695,549			-			188,620,527

			As of June 30, 2024 IFRSs adjustments
	Amounts as reported under U.S.		Investments measured at fair value			Redeemable noncontrolling interests			Amounts as reported under
	GAAP		(Note (a))			(Note (b))			IFRSs
Other long-term assets		27,627,257		(14,942,321	)		-			12,684,936
Financial assets at fair value through profit or loss		-		17,529,322			-			17,529,322
Total Assets		183,342,621		2,587,001			-			185,929,622
Financial liabilities at fair value through profit or loss		-		-			38,532			38,532
Deferred tax liabilities		1,448,781		22,759			-			1,471,540
Total Liabilities		48,997,216		22,759			38,532			49,058,507
Redeemable noncontrolling interests		119,498		-			(119,498	)		-
Total equity		134,225,907		2,564,242			80,966			136,871,115
Total liabilities, redeemable noncontrolling interests and shareholders' equity		183,342,621		2,587,001			-			185,929,622