NetEase.com, Inc. Announces Resumption of Trading on Nasdaq
NetEase.com, Inc. (Nasdaq: NTES), a leading Internet technology provider in China, today announced that it has successfully appealed The Nasdaq Stock Market's decision to delist the company's American Depositary Shares from The Nasdaq National Market. Trading in the company's shares will resume on January 2, 2002.
Mr. Ted Sun, NetEase's acting Chief Executive Officer, hailed the decision of the Nasdaq appeal panel stating, "We are extremely pleased that trading will resume in NetEase's shares and believe that the continued vitality and focus of the company and its employees will carry it to further high points in the new year. This decision by the Nasdaq appeal panel signifies to us an affirmation that the company has taken appropriate steps to ensure that the company's operations are both open and efficient and that the circumstances which led to the company's revenue recognition issues will not recur."
Mr. Sun added, "The operating metrics of the NetEase Web sites, including the number of daily page views and registered users, continue to grow strongly, and we look forward to further enhancing their popularity among China's Internet users."
The continued listing of NetEase's American Depositary Shares will still be dependent on its ongoing compliance with the applicable Nasdaq listing rules, as well as the additional criteria imposed by the Nasdaq appeal panel that the company will be automatically delisted without opportunity for appeal if it fails to file its annual report on Form 20-F for the fiscal year ended December 31, 2001 with the U.S. Securities and Exchange Commission and Nasdaq on or before its due date of July 1, 2002.
NetEase.com, Inc. is a leading China-based Internet technology company that pioneered the development of applications, services and other technologies for the Internet in China. The NetEase Web sites, operated by a company affiliate, organize and provide access to 18 content channels through distribution arrangements with more than 130 international and domestic content providers. In addition, the NetEase Web sites contain more than 1.5 million personal home pages. These pages, created and maintained by users, enable users to share information, communicate about interests and areas of expertise, and publish personal content accessible by other Chinese Internet users. The sites also offer online interactive community services through 1,500 community forums and more than 115,000 personal community forums created by registered users. At the end of November 2001, the number of simultaneous chat room participants reached 55,476 during peak hours, and the number of registered users of the NetEase Web sites reached 39.81 million. The average number of daily page views was over 169.8 million in November 2001.
NetEase also offers auction and online mall technology services that provide opportunities for e-commerce and traditional businesses to establish an online e-commerce presence on the NetEase Web sites.
This press release contains statements of a forward-looking nature. These statements are made under the ``safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that
NetEase could be subject to additional delisting actions in the future resulting from a failure to comply with the applicable listing requirements, including the requirement that NetEase file its annual report on Form 20-F for the fiscal year ended December 31, 2001 with the U.S. Securities and Exchange Commission and Nasdaq on or before July 1, 2002; the availability of alternative trading markets for NetEase's American Depositary Shares or ordinary shares, including the over-the-counter bulletin board, if a future delisting action is effected; the possibility that
NetEase and its Board of Directors have not implemented effective or complete steps to ensure that the circumstances which led to
NetEase's restatement of its financial statements for the year ended December 31, 2000 will not recur;
NetEase's ability to develop and implement additional operational and financial systems to manage expanding operations; the risk that the trading price of
NetEase's American Depositary Shares will not increase or may even decrease following the resumption of trading for a variety of reasons, some of which may be beyond the control of management; competition in
NetEase's existing and potential markets; uncertainty as to
NetEase's future profitability; the risk that security, reliability and confidentiality concerns may impede broad use of the Internet; and other risks outlined in
NetEase's filings with the Securities and Exchange Commission, including its registration statement on Form F-1, as amended.
NetEase does not undertake any obligation to update this forward-looking information, except as required under applicable law.