News Release
<< Back
NetEase Announces Third Quarter 2023 Unaudited Financial Results
Third Quarter 2023 Financial Highlights
- Net revenues were
RMB27.3 billion (US$3.7 billion ), an increase of 11.6% compared with the third quarter of 2022.- Games and related value-added services net revenues were
RMB21.8 billion (US$3.0 billion ), an increase of 16.5% compared with the third quarter of 2022. Youdao net revenues wereRMB1.5 billion (US$210.9 million ), an increase of 9.7% compared with the third quarter of 2022.Cloud Music net revenues wereRMB2.0 billion (US$270.4 million ), a decrease of 16.3% compared with the third quarter of 2022.- Innovative businesses and others net revenues were
RMB2.0 billion (US$271.2 million ), a slight increase compared with the third quarter of 2022.
- Games and related value-added services net revenues were
- Gross profit was
RMB17.0 billion (US$2.3 billion ), an increase of 23.4% compared with the third quarter of 2022. - Total operating expenses were
RMB9.4 billion (US$1.3 billion ), an increase of 4.5% compared with the third quarter of 2022. - Net income attributable to the Company's shareholders was
RMB7.8 billion (US$1.1 billion ). Non-GAAP net income from continuing operations attributable to the Company's shareholders wasRMB8.6 billion (US$1.2 billion ).[1] - Basic net income per share was
US$0.33 (US$1.67 per ADS). Non-GAAP basic net income from continuing operations per share wasUS$0.37 (US$1.84 per ADS).[1]
[1] As used in this announcement, non-GAAP net income from continuing operations attributable to the Company's shareholders and non-GAAP basic and diluted net income from continuing operations per share and per ADS are defined to exclude share-based compensation expenses. See "Unaudited Reconciliation of GAAP and Non-GAAP Results" at the end of this announcement. |
Third Quarter 2023 and Recent Operational Highlights
- Justice mobile game gained robust revenue and user growth, accumulating over 50 million registered players.
- Dunk City Dynasty, NetEase Game's first self-developed basketball game, topped
China's iOS top-grossing chart at the end of October. - Time-honored flagship titles, including the Fantasy Westward Journey series, continued to invigorate players, and newer hit games, including
Eggy Party , Identity V and Naraka: Bladepoint, maintained ongoing popularity. - Hotly anticipated new games spanning diverse genres reached ongoing Company development milestones with multiple high-profile titles slated for launch in 2024.
Cloud Music considerably strengthened its music-centric membership monetization and further improved profitability.Cloud Music continued to cultivate its music community and introduce premium offerings, including expansive content and innovative features.- Youdao achieved record-high revenue, driven by growth in its learning services and online marketing services, and substantially reduced its loss from operations as an ongoing effort.
"Our robust and increasingly diversified games portfolio led our strong results in the third quarter, with total net revenues reaching
"In our broader NetEase family,
Third Quarter 2023 Financial Results
Net Revenues
Net revenues for the third quarter of 2023 were
Net revenues from games and related value-added services were
Net revenues from
Net revenues from
Net revenues from innovative businesses and others were
Gross Profit
Gross profit for the third quarter of 2023 was
The quarter-over-quarter increase in games and related value-added services' gross profit was primarily due to increased net revenues from newly launched games such as Justice mobile game and Racing Master. The year-over-year increase was primarily due to increased net revenues from the operation of online games such as
The quarter-over-quarter increase in
The quarter-over-quarter and year-over-year increases in
The quarter-over-quarter decrease in innovative businesses and others' gross profit was primarily due to decreased e-commerce gross profit from Yanxuan. The year-over-year increase was primarily due to increased gross profit from Yanxuan and several other businesses included within the segment.
Gross Profit Margin
Gross profit margin for games and related value-added services for the third quarter of 2023 was 69.0%, compared with 67.4% and 65.0% for the preceding quarter and the third quarter of 2022, respectively. The quarter-over-quarter increase was primarily attributable to changes in the revenue mix of
Gross profit margin for
Gross profit margin for
Gross profit margin for innovative businesses and others for the third quarter of 2023 was 27.3%, compared with 29.5% and 25.5% for the preceding quarter and the third quarter of 2022, respectively. The quarter-over-quarter and year-over-year fluctuations were mainly due to changes in the product mix within the segment.
Operating Expenses
Total operating expenses for the third quarter of 2023 were
Other Income/ (Expenses)
Other income/ (expenses) consisted of investment income, interest income, exchange gains/ (losses) and others. The quarter-over-quarter and year-over-year decreases were mainly due to net unrealized exchange losses arising from the Company's
Income Tax
The Company recorded a net income tax charge of
Net Income and Non-GAAP Net Income
Net income attributable to the Company's shareholders totaled
Non-GAAP net income from continuing operations attributable to the Company's shareholders totaled
Other Financial Information
As of
Quarterly Dividend
The board of directors has approved a dividend of
Under the Company's current dividend policy, the determination to make dividend distributions and the amount of such distribution in any particular quarter will be made at the discretion of its board of directors and will be based upon the Company's operations and earnings, cash flow, financial condition and other relevant factors.
Share Repurchase Program
On
The extent to which
**
Announcement on Change of Management
The Company also announced today that Mr.
"We are grateful to Charles for his contributions to
Conference Call
Interested parties may participate in the conference call by dialing 1-914-202-3258 and providing conference ID: 10034483, 15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-855-883-1031 and entering PIN: 10034483. The replay will be available through
This call will be webcast live and the replay will be available for 12 months. Both will be available on
About
Powered by one of the largest in-house game R&D teams focused on mobile, PC and console,
Beyond games,
Forward Looking Statements
This announcement contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the
Non-GAAP Financial Measures
Non-GAAP financial measures are not defined under
Contact for Media and Investors:
Email: ir@service.netease.com
Tel: (+86) 571-8985-3378
Twitter: https://twitter.com/NetEase_Global
|
||||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||
|
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 |
||||||||||||||||||||||||||||
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 |
|||||||||||||||||||||||||
|
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 |
172,760,985 |
171,575,005 |
23,516,310 |
|||||||||||||||||||||||||
The accompanying notes are an integral part of this announcement. |
|
||||||||||||||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||||||||||||||||||||||||
(in thousands, except per share data or per ADS data) |
||||||||||||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||||||||
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 |
(781) |
(868) |
(895) |
(123) |
(2,268) |
(2,623) |
(360) |
|||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling |
79,145 |
84,020 |
26,901 |
3,687 |
353,536 |
156,021 |
21,384 |
|||||||||||||||||||||||||||||||
Net income attributable to the |
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 |
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 |
- |
- |
- |
- |
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 |
||||||||||||||||||||||||||||||||||||||
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 |
|||||||||||||||||||||||||||||||
* Each ADS represents five ordinary shares. |
||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of this announcement. |
|
||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||
(in thousands) |
||||||||||||||
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 |
||||||||||||||
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 |
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 |
- |
- |
- |
- |
(1,250,000) |
- |
- |
|||||||
Proceeds from maturities of short-term investments with terms |
1,195,475 |
- |
376,950 |
51,665 |
3,208,478 |
481,219 |
65,957 |
|||||||
Investment in long-term investments and acquisition of |
(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 |
14,305 |
22,228 |
11,573 |
1,586 |
(54,537) |
58,150 |
7,970 |
|||||||
Cash paid for repurchase of |
(1,956,829) |
(2,195,210) |
(296,495) |
(40,638) |
(5,320,359) |
(4,608,462) |
(631,642) |
|||||||
Dividends paid to |
(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 |
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 |
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 |
|||||||
The accompanying notes are an integral part of this announcement. |
|
||||||||||||||||||||||||||||||||||
UNAUDITED SEGMENT INFORMATION |
||||||||||||||||||||||||||||||||||
(in thousands, except percentages) |
||||||||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||||
September 30, |
June 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 |
|||||||||||||||||||||||||||
|
1,402,434 |
1,206,634 |
1,538,783 |
210,908 |
3,559,200 |
3,908,687 |
535,730 |
|||||||||||||||||||||||||||
|
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) |
|||||||||||||||||||||||||||
|
(642,254) |
(639,459) |
(679,147) |
(93,085) |
(1,751,443) |
(1,880,026) |
(257,679) |
|||||||||||||||||||||||||||
|
(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 |
|||||||||||||||||||||||||||
|
760,180 |
567,175 |
859,636 |
117,823 |
1,807,757 |
2,028,661 |
278,051 |
|||||||||||||||||||||||||||
|
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 % |
|||||||||||||||||||||||||||
|
54.2 % |
47.0 % |
55.9 % |
55.9 % |
50.8 % |
51.9 % |
51.9 % |
|||||||||||||||||||||||||||
|
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 % |
|||||||||||||||||||||||||||
The accompanying notes are an integral part of this announcement. |
NOTES TO UNAUDITED FINANCIAL INFORMATION
Note 1: The conversion of Renminbi (RMB) into
Note 2: Share-based compensation cost reported in the Company's unaudited condensed consolidated statements of comprehensive income is set out as follows in RMB and USD (in thousands):
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
2022 |
2023 |
2023 |
2023 |
2022 |
2023 |
2023 |
||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
USD (Note 1) |
RMB |
RMB |
USD (Note 1) |
||||||||||||||||||||||||||||
Share-based compensation cost included in: |
||||||||||||||||||||||||||||||||||
Cost of revenues |
190,645 |
193,001 |
210,533 |
28,856 |
562,620 |
607,048 |
83,203 |
|||||||||||||||||||||||||||
Operating expenses |
||||||||||||||||||||||||||||||||||
Selling and marketing expenses |
24,980 |
31,069 |
33,804 |
4,633 |
87,170 |
97,226 |
13,326 |
|||||||||||||||||||||||||||
General and administrative expenses |
288,598 |
281,326 |
280,581 |
38,457 |
865,551 |
856,188 |
117,350 |
|||||||||||||||||||||||||||
Research and development expenses |
282,776 |
282,466 |
294,630 |
40,382 |
782,259 |
869,361 |
119,156 |
|||||||||||||||||||||||||||
The accompanying notes are an integral part of this announcement. |
Note 3: The financial information prepared and presented in this announcement might be different from those published and to be published by NetEase's listed subsidiaries to meet the disclosure requirements under
Note 4: The unaudited reconciliation of GAAP and non-GAAP results is set out as follows in RMB and USD (in thousands, except per share data or per ADS data):
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||||
September 30, |
June 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 income from continuing operations attributable to the |
6,699,364 |
8,242,767 |
7,836,888 |
1,074,135 |
15,759,999 |
22,834,289 |
3,129,699 |
|||||||||||||||||||||||||||
Add: Share-based compensation |
770,255 |
774,683 |
808,276 |
110,783 |
2,237,056 |
2,394,559 |
328,202 |
|||||||||||||||||||||||||||
Non-GAAP net income from continuing operations |
7,469,619 |
9,017,450 |
8,645,164 |
1,184,918 |
17,997,055 |
25,228,848 |
3,457,901 |
|||||||||||||||||||||||||||
Non-GAAP basic net income from continuing |
2.29 |
2.80 |
2.69 |
0.37 |
5.50 |
7.84 |
1.07 |
|||||||||||||||||||||||||||
Non-GAAP basic net income from continuing |
11.45 |
14.01 |
13.45 |
1.84 |
27.50 |
39.20 |
5.37 |
|||||||||||||||||||||||||||
Non-GAAP diluted net income from continuing |
2.27 |
2.78 |
2.66 |
0.36 |
5.45 |
7.76 |
1.06 |
|||||||||||||||||||||||||||
Non-GAAP diluted net income from continuing |
11.34 |
13.88 |
13.30 |
1.82 |
27.23 |
38.79 |
5.32 |
|||||||||||||||||||||||||||
* Each ADS represents five ordinary shares. |
||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of this announcement. |
View original content:https://www.prnewswire.com/news-releases/netease-announces-third-quarter-2023-unaudited-financial-results-301990338.html
SOURCE