UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of February 2015
Commission File Number: 000-30666
NETEASE, INC.
26/F, SP Tower D
Tsinghua Science Park Building 8
No. 1 Zhongguancun East Road, Haidian District
Beijing 100084, Peoples Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
NETEASE, INC.
Form 6-K
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Page 3 | |
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Press Release Regarding Fourth Quarter and Fiscal Year 2014 Unaudited Financial Results, dated February 9, 2015 |
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Exhibit 99.1 |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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NETEASE, INC. | |
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By: |
/s/ Onward Choi |
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Name: |
Onward Choi |
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Title: |
Acting Chief Financial Officer |
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Date: February 10, 2015 |
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Exhibit 99.1
Contact for Media and Investors:
Cassia Curran
NetEase, Inc.
cassia@corp.netease.com
Tel: (+86) 571-8985-2076
Brandi Piacente
Investor Relations
brandi@corp.netease.com
Tel: (+1) 212-481-2050
NetEase Reports Fourth Quarter and Fiscal Year 2014 Unaudited Financial Results
(Beijing February 9, 2015) NetEase, Inc. (NASDAQ: NTES), one of Chinas leading Internet and online game services providers, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2014.
In 2014 we made exciting strides across our three business lines. With considerable advancements among our traditional online and mobile games portfolios, and portal and e-commerce offerings, our total revenues for 2014 grew by 27.7% year-over-year, said Mr. William Ding, Chief Executive Officer and Director of NetEase. We completed the year with a 42.5% increase in fourth quarter revenues compared to the fourth quarter of 2013, led by a 35.7% increase in online game services, a 22.7% increase in advertising services and a 224.2% increase from our expanding e-mail, e-commerce and others business.
Our fourth quarter online game services revenues grew by 16.4% compared to the preceding quarter, with standout performances from both our self-developed and licensed online games. Following the launch of a new item-based version in August, New Westward Journey Online II achieved record user statistics in the fourth quarter. Our newly-launched mobile games demonstrated strong traction with users as well, especially our self-developed mobile battle arena game, Battle to the West, and mobile 3-D action adventure, The World HD, which was adapted from our online game Tianxia III. Both of these games have become highly ranked in the China mobile game market. The November launch of the fifth expansion set to Blizzard Entertainments World of Warcraft®, Warlords of Draenor in mainland China was also met with great player enthusiasm. Moreover, we saw solid performances from the games for which we introduced new expansion packs in the fourth quarter, including Fantasy Westward Journey II, Tianxia III, Ghost II, and Heroes of Tang Dynasty Zero.
At the beginning of 2015, we initiated the small-scale commercial launch of Revelation, our 3-D oriental fantasy MMORPG, and beta testing for Hegemon-King of Western Chu, our 3-D warfare MMORPG. We are pleased by the positive early feedback for these games. Additionally, in January, Blizzards free-to-play, online team brawler, Heroes of the Storm, began closed beta testing in China, and we continue to work closely with Blizzard to bring this and other exciting game content to Chinese audiences.
Mobile Internet is playing an increasing role in Chinas expanding Internet market. In 2014 we succeeded in releasing 12 self-developed and licensed mobile games, demonstrating our growing capabilities in mobile game developing and publishing. We plan to introduce more mobile games this year. Our YiChat user base also continues to grow, supported by the introduction of new functionalities and features in the fourth quarter. We are expanding our reach with this popular networking site by introducing an enterprise version of YiChat for small and medium-sized enterprises.
Our advertising business remains strong. In 2014, the growth of our advertising services was driven by increased market demand, mainly from the automobile, communication services and foods and beverages sectors, and greater monetization of our Mobile News Application. The 2014 FIFA World Cup also boosted advertising revenues during the year. In the fourth quarter, the top-performing advertising verticals were automobile, financial services and Internet services. We are optimistic about the growth for this business in 2015 and plan to focus on mobile advertising where we see significant interest from our customers. Additionally, our e-commerce business expanded at a healthy pace in 2014.
We plan to introduce more mobile games in 2015, including mobile games adapted from or inspired by our existing popular PC client games. We believe this will help to increase stickiness within our community by offering innovative games and services on both traditional and mobile platforms. We recently launched a self-operated cross-border e-commerce platform, Kaola, which we see as an opportunity to provide a new type of service offering to our users. We will continue to strive to attract new users to support healthy growth across our business lines in 2015 and beyond, Mr. Ding concluded.
Fourth Quarter 2014 Financial Results
Revenues
Total revenues for the fourth quarter of 2014 were RMB3,683.6 million (US$593.7 million), compared to RMB3,325.9 million and RMB2,585.1 million for the preceding quarter and the fourth quarter of 2013, respectively.
Revenues from online games were RMB2,863.3 million (US$461.5 million) for the fourth quarter of 2014, compared to RMB2,459.6 million and RMB2,109.5 million for the preceding quarter and the fourth quarter of 2013, respectively.
Revenues from advertising services were RMB439.5 million (US$70.8 million) for the fourth quarter of 2014, compared to RMB478.3 million and RMB358.2 million for the preceding quarter and the fourth quarter of 2013, respectively.
Revenues from e-mail, e-commerce and others were RMB380.8 million (US$61.4 million) for the fourth quarter of 2014, compared to RMB388.0 million and RMB117.5 million for the preceding quarter and the fourth quarter of 2013, respectively.
Sales Taxes
Total sales taxes for the fourth quarter of 2014 were RMB220.6 million (US$35.6 million), compared to RMB209.2 million and RMB162.7 million for the preceding quarter and the fourth quarter of 2013, respectively. The year-over-year and quarter-over-quarter increases in sales tax were mainly due to the increase in NetEases total revenues.
Gross Profit
Gross profit for the fourth quarter of 2014 was RMB2,485.4 million (US$400.6 million), compared to RMB2,258.4 million and RMB1,727.2 million for the preceding quarter and the fourth quarter of 2013, respectively.
The year-over-year increase in online games gross profit was primarily driven by increased revenues from certain self-developed games, such as Fantasy Westward Journey II and New Westward Journey Online II, and various mobile game products. The quarter-over-quarter increase in online games gross profit was primarily driven by increased revenue from certain self-developed online and mobile games, such as New Westward Journey Online II and Battle to the West, as well as Warlords of Draenor, the fifth expansion set to Blizzards World of Warcraft.
The year-over-year increase in advertising services gross profit was primarily the result of strong demand from the financial services, communication services and real estate sectors, and NetEases monetization efforts for its Mobile News Application and other mobile applications. The quarter-over-quarter decrease in advertising services gross profit was mainly due to higher revenue related to the 2014 FIFA World Cup in the preceding quarter.
The year-over-year increase in e-mail, e-commerce and others gross profit was primarily attributable to an increase in revenue from NetEases e-commerce business. The quarter-over-quarter decrease in e-mail, e-commerce and others gross profit was primarily attributable to a decrease in revenue from the Companys e-commerce business in the fourth quarter.
Gross Profit (Loss) Margin
Gross profit margin for NetEases online games business for the fourth quarter of 2014 was 76.0%, compared to a gross profit margin of 77.2% and 77.7% for the preceding quarter and the fourth quarter of 2013, respectively. The year-over-year and quarter-over-quarter changes in gross profit margin were mainly due to increased revenue contribution from mobile games and licensed games, which have relatively lower gross profit margins, as a percentage of NetEases total online game revenues.
Gross profit margin for the advertising services business for the fourth quarter of 2014 was 66.8%, compared to a gross profit margin of 66.3% and 57.8% for the preceding quarter and the fourth quarter of 2013, respectively. The year-over-year increase in gross profit margin was mainly due to enhanced economies of scale driven by revenue growth.
Gross profit margin for the e-mail, e-commerce and others business for the fourth quarter of 2014 was 45.6%, compared to a gross profit margin of 49.6% for the preceding quarter and gross loss margin of 4.0% for the fourth quarter of 2013, respectively. The year-over-year increase in gross profit margin was mainly due to increased revenue from NetEases e-commerce business, which has a relatively higher gross profit margin.
Operating Expenses
Total operating expenses for the fourth quarter of 2014 were RMB1,239.7 million (US$199.8 million), compared to RMB1,059.2 million and RMB648.3 million for the preceding quarter and the fourth quarter of 2013, respectively. The year-over-year increase in operating expenses was mainly due to increased selling and marketing expenses for the promotion of NetEases online and mobile games and licensed Blizzard games, promotions for NetEases e-commerce business and advertising services, as well as staff-related research and development costs resulting from an increase in the number of employees and average compensation. The quarter-over-quarter increase was mainly due to increased selling and marketing expenses for online games and the Companys e-commerce business.
Income Taxes
The Company recorded a net income tax charge of RMB187.9 million (US$30.3 million) for the fourth quarter of 2014, compared to net income tax charges of RMB197.3 million and RMB49.4 million for the preceding quarter and the fourth quarter of 2013, respectively. The effective tax rate for the fourth quarter of 2014 was 12.8%, compared to 14.4% and 3.8% for the preceding quarter and the fourth quarter of 2013, respectively. The year-over-year increase in the effective tax rate was mainly due to the fact that certain subsidiaries of the Company were approved as Key Software Enterprises in the fourth quarter of 2013. Accordingly, they became subject to a preferential tax rate of 10% for the 2013 and 2014 fiscal years, and the resulting 2013 tax credit was recorded in the fourth quarter of 2013.
Net Income After Tax
Net profit for the fourth quarter of 2014 totaled RMB1.3 billion (US$204.9 million), compared to RMB1.2 billion and RMB1.2 billion for the preceding quarter and the fourth quarter of 2013, respectively.
During the fourth quarter of 2014, the Company had a net foreign exchange loss of RMB7.1 million (US$1.1 million), compared to a net foreign exchange gain of RMB2.2 million and a net foreign exchange loss of RMB17.6 million for the preceding quarter and the fourth quarter of 2013, respectively. The quarter-over-quarter and year-over-year changes in foreign exchange gains/(losses) were mainly due to exchange gains/(losses) arising from the Companys foreign currency-denominated bank deposits and short-term loan balances as the exchange rate of the U.S. dollar against the RMB fluctuated over the periods.
NetEase reported basic earnings per ADS of US$1.57 and diluted earnings per ADS of US$1.56 for the fourth quarter of 2014. The Company reported basic earnings per ADS of US$1.43 and diluted earnings per ADS of US$1.42 for the preceding quarter, and reported basic and diluted earnings per ADS of US$1.53 each for the fourth quarter of 2013.
Fiscal Year 2014 Financial Results
Revenues
Total revenues for fiscal year 2014 were RMB12.5 billion (US$2.0 billion), compared to RMB9.8 billion for the preceding fiscal year. Revenues from online games were RMB9.8 billion (US$1.6 billion) for fiscal year 2014, compared to RMB8.3 billion for the preceding fiscal year. Revenues from advertising services were RMB1.6 billion (US$250.1 million) for fiscal year 2014, compared to RMB1.1 billion for the preceding fiscal year. Revenues from e-mail, e-commerce and others were RMB1.1 billion (US$179.5 million) for fiscal year 2014, compared to RMB368.0 million for the preceding fiscal year.
Gross Profit (Loss)
Gross profit for fiscal year 2014 was RMB8.5 billion (US$1.4 billion), compared to RMB6.7 billion for the preceding fiscal year. The increase in gross profit for fiscal year 2014 was primarily driven by increased revenues from online game services, advertising services and e-commerce business.
The increase in online game services gross profit in 2014 was primarily attributable to increased revenues from the Companys self-developed games such as Fantasy Westward Journey II, New Westward Journey Online II and various mobile games, as well as from Blizzards Hearthstone®: Heroes of Warcraft.
The increase in advertising services gross profit in 2014 was due to a rise in demand, mainly from the automobile, communication services and foods and beverages sectors, as well as from the increased monetization of the NetEase Mobile News Application and the impact of the 2014 FIFA World Cup.
The improvement in e-mail, e-commerce and others gross profit in 2014 was primarily attributable to an increase in revenue from NetEases e-commerce business.
Operating Expenses
Total operating expenses for fiscal year 2014 were RMB3.7 billion (US$594.1 million), compared to RMB2.4 billion for the preceding fiscal year. The increase in operating expenses in 2014 was primarily due to increased marketing expenses as a result of marketing and promotional activities for NetEases online games, e-commerce and advertising services businesses, mainly due to the 2014 FIFA World Cup, and increased research and development expenses resulting from increased headcount and average compensation.
Net Income After Tax
Net profit for fiscal year 2014 totaled RMB4.8 billion (US$766.6 million), compared to RMB4.4 billion for the preceding fiscal year. For fiscal year 2014, the Company reported a net foreign exchange loss of RMB18.0 million (US$2.9 million), compared to a net foreign exchange loss of RMB15.3 million for the preceding fiscal year. The net foreign exchange loss for 2014 was mainly due to exchange losses arising from the Companys U.S. dollar-denominated bank deposit and short-term loan balances as the exchange rate of the U.S. dollar against the RMB fluctuated over these periods. NetEase reported basic earnings per ADS of US$5.87 and diluted earnings per ADS of US$5.85 for fiscal year 2014. The Company reported basic earnings per ADS of US$5.51 and diluted earnings per ADS of US$5.50 for the preceding fiscal year.
Income Taxes
The Company recorded a net income tax charge of RMB662.7 million (US$106.8 million) and RMB530.6 million for fiscal years 2014 and 2013, respectively. The effective tax rate was 12.1% for fiscal year 2014, compared to 10.7% for fiscal year 2013. The change in the effective tax rate was mainly due to a one-off tax benefit of RMB304.6 million that the Company recorded in 2013 due to the fact that certain subsidiaries of the Company were approved in 2013 as Key Software Enterprises with respect to fiscal years 2011 and 2012.
Quarterly Dividend
Under the Companys quarterly dividend policy announced on May 13, 2014, quarterly dividends will be set at an amount equivalent to approximately 25% of the Companys anticipated net income after tax in each fiscal quarter.
NetEase paid a dividend of US$0.34 per ADS for the first quarter of 2014 on June 3, 2014, US$0.37 per ADS for the second quarter of 2014 on September 5, 2014 and US$0.36 per ADS for the third quarter of 2014 on December 5, 2014.
The board of directors has approved a dividend of US$0.39 per ADS for the fourth quarter of 2014, which is expected to be paid on March 6, 2015 to shareholders of record as of the close of business on February 25, 2015.
The determination to make dividend distributions and the amount of such distributions in any particular quarter will be made at the discretion of the board of directors and will be based upon the Companys operations and earnings, cash flow, financial condition and other relevant factors.
Other Information
As of December 31, 2014, the Companys total cash and time deposits balance was RMB21.2 billion (US$3.4 billion), compared to RMB18.6 billion as of December 31, 2013. Cash flow generated from operating activities was RMB5.9 billion (US$944.1 million) for fiscal year 2014, compared to RMB5.2 billion for the preceding fiscal year. In addition, as of December 31, 2014, the Company had a loan from an offshore bank in the principal amount of US$90.0 million that was secured by RMB deposits of the Company in an onshore branch of this bank in the amount of RMB614.2 million, which was recognized as a short-term investment.
Share Repurchase Program
In February 2014, the Company announced that its board of directors approved a new share repurchase program of up to US$100 million of the Companys outstanding ADSs for a period not to exceed 12 months. As of December 31, 2014, no ADSs had been repurchased under this program.
** The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. Translations of amounts from RMB into United States dollars for the convenience of the reader were calculated at the noon buying rate of US$1.00 = RMB6.2046 on December 31, 2014 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 31, 2014, or at any other certain date. The percentages stated are calculated based on RMB.
Notes to Unaudited Financial Information
The unaudited financial information disclosed in this press release is preliminary. The audit of the financial statements and related notes to be included in the Companys annual report on Form 20-F for the year ended December 31, 2014 is still in progress. In addition, because an audit of the Companys internal controls over financial reporting in connection with section 404 of the Sarbanes-Oxley Act of 2002 has not yet been completed, the Company makes no representation as to the effectiveness of those internal controls as of the end of fiscal year 2014.
Adjustments to the financial statements may be identified when the audit work is completed, which could result in significant differences between the Companys audited financial statements and this preliminary unaudited financial information.
Conference Call
NetEases management team will host a teleconference call with simultaneous webcast at 8:00 p.m. Eastern Time on Monday, February 9, 2015 (Beijing/Hong Kong Time: 9:00 a.m., Tuesday, February 10, 2015). NetEases management will be on the call to discuss the quarterly results and answer questions.
Interested parties may participate in the conference call by dialing 1-888-466-4462 (international: 1-719-457-2085), 10-15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-888-203-1112 (international: 1-719-457-0820), and entering passcode 6702328#. The replay will be available through February 23, 2015.
This call will be webcast live and the replay will be available for 12 months. Both will be available on NetEases Investor Relations website at http://ir.netease.com.
About NetEase, Inc.
NetEase, Inc. (NASDAQ: NTES) is a leading Internet technology company in China. Dedicated to providing online services centered around content, community, communication and commerce, NetEase develops and operates some of Chinas most popular online games, e-mail services, advertising services, mobile applications and games, and web portals. In partnership with Blizzard Entertainment, NetEase also operates some of the most popular international online games in China, including World of Warcraft®, Hearthstone®: Heroes of Warcraft, StarCraft® II, Heroes of the Storm and Diablo® III. For more information, please visit: http://ir.netease.com/.
* * *
Forward Looking Statements
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 the online game market will not continue to grow or that NetEase will not be able to maintain its leading position in that market, which could occur if, for example, its new online games or expansion packs and other improvements to its existing games do not become as popular as management anticipates; the ability of NetEase to successfully expand its mobile Internet and e-commerce offerings; the ability of NetEase to effectively market its games and other services and achieve a positive return on its marketing expenditures; the risk that Shanghai EaseNet will not be able to continue operating World of Warcraft®, Hearthstone®: Heroes of Warcraft, StarCraft® II, Heroes of the Storm, Diablo® III or other games licensed by it for a period of time or permanently due to possible governmental actions or the risk that such games will not be popular with game players in China; the risk that changes in Chinese government regulation of the online game or e-commerce markets may limit future growth of NetEases revenues or cause revenues to decline; competition in the online advertising business and the risk that investments by NetEase in its content and services may not increase the appeal of the NetEase websites among Internet users or result in increased advertising revenues; the risk that NetEase may not be able to continuously develop new and creative online services, including its ability to maintain and enhance the popularity of its e-mail, e-commerce, mobile and micro-blogging services and develop attractive mobile games; the risk that NetEase will not be able to control its expenses in future periods; competition in NetEases existing and potential markets; governmental uncertainties (including possible changes in the effective tax rates applicable to NetEase and its subsidiaries and affiliates and the ability of NetEase to receive and maintain approvals of the preferential tax treatments and general competition and price pressures in the marketplace); the risk that fluctuations in the value of the Renminbi with respect to other currencies could adversely affect NetEases business and financial results; and other risks outlined in NetEases filings with the Securities and Exchange Commission. NetEase does not undertake any obligation to update this forward-looking information, except as required under the applicable law.
NETEASE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(RMB and USD in thousands)
|
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2013 |
|
2014 |
|
2014 |
|
|
|
RMB |
|
RMB |
|
USD (Note 1) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
1,458,298 |
|
2,021,453 |
|
325,799 |
|
Time deposits |
|
16,625,468 |
|
18,496,574 |
|
2,981,107 |
|
Restricted cash |
|
2,136,749 |
|
2,628,847 |
|
423,693 |
|
Accounts receivable, net |
|
402,511 |
|
873,137 |
|
140,724 |
|
Prepayments and other current assets |
|
1,144,272 |
|
1,451,919 |
|
234,007 |
|
Short-term investments |
|
901,183 |
|
2,058,552 |
|
331,778 |
|
Deferred tax assets |
|
129,282 |
|
202,040 |
|
32,563 |
|
Total current assets |
|
22,797,763 |
|
27,732,522 |
|
4,469,671 |
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
Property, equipment and software, net |
|
872,113 |
|
1,281,225 |
|
206,496 |
|
Land use right, net |
|
11,271 |
|
77,648 |
|
12,515 |
|
Deferred tax assets |
|
23,085 |
|
21,160 |
|
3,410 |
|
Time deposits |
|
500,000 |
|
673,000 |
|
108,468 |
|
Other long-term assets |
|
342,098 |
|
569,116 |
|
91,725 |
|
Total non-current assets |
|
1,748,567 |
|
2,622,149 |
|
422,614 |
|
Total assets |
|
24,546,330 |
|
30,354,671 |
|
4,892,285 |
|
|
|
|
|
|
|
|
|
Liabilities, Mezzanine Classified Noncontrolling Interests and Shareholders Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
219,259 |
|
410,722 |
|
66,196 |
|
Salary and welfare payables |
|
377,117 |
|
534,565 |
|
86,156 |
|
Taxes payable |
|
74,463 |
|
334,290 |
|
53,878 |
|
Short-term loan |
|
975,504 |
|
2,049,865 |
|
330,378 |
|
Deferred revenue |
|
1,481,036 |
|
1,967,780 |
|
317,149 |
|
Accrued liabilities and other payables |
|
957,299 |
|
1,357,228 |
|
218,746 |
|
Deferred tax liabilities |
|
148,506 |
|
101,997 |
|
16,439 |
|
Total current liabilities |
|
4,233,184 |
|
6,756,447 |
|
1,088,942 |
|
|
|
|
|
|
|
|
|
Long-term payable: |
|
|
|
|
|
|
|
Other long-term payable |
|
144,883 |
|
106,430 |
|
17,153 |
|
Total liabilities |
|
4,378,067 |
|
6,862,877 |
|
1,106,095 |
|
|
|
|
|
|
|
|
|
Total mezzanine classified noncontrolling interests and shareholders equity |
|
20,168,263 |
|
23,491,794 |
|
3,786,190 |
|
|
|
|
|
|
|
|
|
Total liabilities, mezzanine classified noncontrolling interests and shareholders equity |
|
24,546,330 |
|
30,354,671 |
|
4,892,285 |
|
The accompanying notes are an integral part of this press release.
NETEASE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(RMB and USD in thousands, except per share data)
|
|
Quarter Ended |
|
Year Ended |
| ||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2013 |
|
2014 |
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2014 |
|
|
|
RMB |
|
RMB |
|
RMB |
|
USD (Note 1) |
|
RMB |
|
RMB |
|
USD (Note 1) |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game services |
|
2,109,456 |
|
2,459,596 |
|
2,863,299 |
|
461,480 |
|
8,308,618 |
|
9,815,019 |
|
1,581,894 |
|
Advertising services |
|
358,153 |
|
478,330 |
|
439,507 |
|
70,836 |
|
1,094,623 |
|
1,551,652 |
|
250,081 |
|
E-mail, e-commerce and others |
|
117,473 |
|
387,987 |
|
380,800 |
|
61,374 |
|
368,014 |
|
1,113,773 |
|
179,507 |
|
Total revenues |
|
2,585,082 |
|
3,325,913 |
|
3,683,606 |
|
593,690 |
|
9,771,255 |
|
12,480,444 |
|
2,011,482 |
|
Sales taxes |
|
(162,660 |
) |
(209,174 |
) |
(220,613 |
) |
(35,556 |
) |
(575,080 |
) |
(767,610 |
) |
(123,716 |
) |
Total net revenues |
|
2,422,422 |
|
3,116,739 |
|
3,462,993 |
|
558,134 |
|
9,196,175 |
|
11,712,834 |
|
1,887,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of revenues |
|
(695,214 |
) |
(858,298 |
) |
(977,565 |
) |
(157,556 |
) |
(2,478,516 |
) |
(3,261,544 |
) |
(525,665 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
1,727,208 |
|
2,258,441 |
|
2,485,428 |
|
400,578 |
|
6,717,659 |
|
8,451,290 |
|
1,362,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses |
|
(328,152 |
) |
(533,838 |
) |
(704,211 |
) |
(113,498 |
) |
(1,093,612 |
) |
(1,894,998 |
) |
(305,418 |
) |
General and administrative expenses |
|
(82,168 |
) |
(128,928 |
) |
(143,850 |
) |
(23,185 |
) |
(349,832 |
) |
(467,669 |
) |
(75,375 |
) |
Research and development expenses |
|
(237,960 |
) |
(396,442 |
) |
(391,591 |
) |
(63,113 |
) |
(921,618 |
) |
(1,323,498 |
) |
(213,309 |
) |
Total operating expenses |
|
(648,280 |
) |
(1,059,208 |
) |
(1,239,652 |
) |
(199,796 |
) |
(2,365,062 |
) |
(3,686,165 |
) |
(594,102 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
1,078,928 |
|
1,199,233 |
|
1,245,776 |
|
200,782 |
|
4,352,597 |
|
4,765,125 |
|
767,999 |
|
Other income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income/(loss) |
|
4,890 |
|
8,693 |
|
(2,492 |
) |
(402 |
) |
37,255 |
|
27,373 |
|
4,412 |
|
Interest income |
|
139,082 |
|
156,084 |
|
156,747 |
|
25,263 |
|
506,181 |
|
601,502 |
|
96,944 |
|
Exchange (losses)/gains |
|
(17,568 |
) |
2,184 |
|
(7,124 |
) |
(1,148 |
) |
(15,348 |
) |
(17,998 |
) |
(2,901 |
) |
Other, net |
|
90,341 |
|
1,872 |
|
72,282 |
|
11,651 |
|
95,136 |
|
82,438 |
|
13,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before tax |
|
1,295,673 |
|
1,368,066 |
|
1,465,189 |
|
236,146 |
|
4,975,821 |
|
5,458,440 |
|
879,741 |
|
Income tax |
|
(49,421 |
) |
(197,340 |
) |
(187,893 |
) |
(30,283 |
) |
(530,603 |
) |
(662,735 |
) |
(106,814 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income after tax |
|
1,246,252 |
|
1,170,726 |
|
1,277,296 |
|
205,863 |
|
4,445,218 |
|
4,795,705 |
|
772,927 |
|
Net income attributable to noncontrolling interests and mezzanine classified noncontrolling interests |
|
(9,227 |
) |
(11,581 |
) |
(6,027 |
) |
(971 |
) |
(1,308 |
) |
(39,082 |
) |
(6,299 |
) |
Net income attributable to the Companys shareholders |
|
1,237,025 |
|
1,159,145 |
|
1,271,269 |
|
204,892 |
|
4,443,910 |
|
4,756,623 |
|
766,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
1,246,252 |
|
1,170,726 |
|
1,277,296 |
|
205,863 |
|
4,445,218 |
|
4,795,705 |
|
772,927 |
|
Net income attributable to noncontrolling interests and mezzanine classified noncontrolling interests |
|
(9,227 |
) |
(11,581 |
) |
(6,027 |
) |
(971 |
) |
(1,308 |
) |
(39,082 |
) |
(6,299 |
) |
Comprehensive income attributable to the Companys shareholders |
|
1,237,025 |
|
1,159,145 |
|
1,271,269 |
|
204,892 |
|
4,443,910 |
|
4,756,623 |
|
766,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
0.38 |
|
0.35 |
|
0.39 |
|
0.06 |
|
1.37 |
|
1.46 |
|
0.24 |
|
Earnings per ADS, basic |
|
9.51 |
|
8.87 |
|
9.73 |
|
1.57 |
|
34.21 |
|
36.43 |
|
5.87 |
|
Earnings per share, diluted |
|
0.38 |
|
0.35 |
|
0.39 |
|
0.06 |
|
1.36 |
|
1.45 |
|
0.23 |
|
Earnings per ADS, diluted |
|
9.48 |
|
8.83 |
|
9.67 |
|
1.56 |
|
34.12 |
|
36.29 |
|
5.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares outstanding, basic |
|
3,250,284 |
|
3,267,786 |
|
3,268,019 |
|
3,268,019 |
|
3,247,874 |
|
3,264,450 |
|
3,264,450 |
|
Weighted average number of ADS outstanding, basic |
|
130,011 |
|
130,711 |
|
130,721 |
|
130,721 |
|
129,915 |
|
130,578 |
|
130,578 |
|
Weighted average number of ordinary shares outstanding, diluted |
|
3,262,605 |
|
3,280,435 |
|
3,286,120 |
|
3,286,120 |
|
3,256,297 |
|
3,277,049 |
|
3,277,049 |
|
Weighted average number of ADS outstanding, diluted |
|
130,504 |
|
131,217 |
|
131,445 |
|
131,445 |
|
130,252 |
|
131,082 |
|
131,082 |
|
The accompanying notes are an integral part of this press release.
NETEASE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(RMB and USD in thousands)
|
|
Quarter Ended |
|
Year Ended |
| ||||||||||
|
|
December 31 |
|
September 30, |
|
December 31 |
|
December 31 |
|
December 31 |
|
December 31 |
|
December 31 |
|
|
|
2013 |
|
2014 |
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2014 |
|
|
|
RMB |
|
RMB |
|
RMB |
|
USD (Note 1) |
|
RMB |
|
RMB |
|
USD (Note 1) |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
1,246,252 |
|
1,170,726 |
|
1,277,296 |
|
205,863 |
|
4,445,218 |
|
4,795,705 |
|
772,927 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
40,378 |
|
36,921 |
|
64,965 |
|
10,471 |
|
158,363 |
|
174,462 |
|
28,118 |
|
Investment impairment |
|
|
|
|
|
24,040 |
|
3,875 |
|
|
|
24,040 |
|
3,875 |
|
Share-based compensation cost |
|
84,994 |
|
96,619 |
|
124,267 |
|
20,028 |
|
306,308 |
|
349,277 |
|
56,293 |
|
(Reversal of)/allowance for provision for doubtful debts |
|
(5,380 |
) |
3,086 |
|
(282 |
) |
(45 |
) |
(2,007 |
) |
3,765 |
|
607 |
|
(Gain)/loss on disposal of property, equipment and software |
|
(22 |
) |
(67 |
) |
1,619 |
|
261 |
|
(509 |
) |
1,507 |
|
243 |
|
Unrealized exchange loss |
|
17,770 |
|
1,686 |
|
10,070 |
|
1,623 |
|
12,266 |
|
18,764 |
|
3,024 |
|
Deferred income taxes |
|
60,220 |
|
32,882 |
|
(100,860 |
) |
(16,256 |
) |
142,283 |
|
(117,328 |
) |
(18,910 |
) |
Net equity share of loss from associated companies |
|
3,474 |
|
12,858 |
|
1,987 |
|
320 |
|
5,321 |
|
33,634 |
|
5,421 |
|
Fair value changes of short-term investments |
|
17,419 |
|
(16,516 |
) |
(17,885 |
) |
(2,883 |
) |
12,355 |
|
(64,249 |
) |
(10,355 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
2,580 |
|
(203,257 |
) |
(104,705 |
) |
(16,875 |
) |
(131,030 |
) |
(474,381 |
) |
(76,456 |
) |
Prepayments and other current assets |
|
(32,949 |
) |
(140,636 |
) |
(61,818 |
) |
(9,963 |
) |
(21,933 |
) |
(292,416 |
) |
(47,129 |
) |
Accounts payable |
|
55,567 |
|
22,539 |
|
138,360 |
|
22,300 |
|
70,959 |
|
190,453 |
|
30,695 |
|
Salary and welfare payables |
|
154,401 |
|
(44,225 |
) |
226,233 |
|
36,462 |
|
87,269 |
|
157,448 |
|
25,376 |
|
Taxes payable |
|
(262,248 |
) |
31,742 |
|
60,923 |
|
9,819 |
|
(315,001 |
) |
259,828 |
|
41,877 |
|
Deferred revenue |
|
161,152 |
|
58,072 |
|
217,560 |
|
35,064 |
|
321,018 |
|
486,744 |
|
78,449 |
|
Accrued liabilities and other payables |
|
79,185 |
|
84,683 |
|
41,228 |
|
6,645 |
|
145,010 |
|
310,449 |
|
50,035 |
|
Net cash provided by operating activities |
|
1,622,793 |
|
1,147,113 |
|
1,902,998 |
|
306,709 |
|
5,235,890 |
|
5,857,702 |
|
944,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, equipment and software |
|
(109,038 |
) |
(116,172 |
) |
(301,156 |
) |
(48,538 |
) |
(218,936 |
) |
(537,376 |
) |
(86,609 |
) |
Proceeds from sale of property, equipment and software |
|
3,544 |
|
404 |
|
896 |
|
144 |
|
4,516 |
|
1,463 |
|
236 |
|
Purchase of other intangible assets |
|
|
|
|
|
(1,725 |
) |
(278 |
) |
(900 |
) |
(14,011 |
) |
(2,258 |
) |
Purchase of land use right |
|
|
|
(29,387 |
) |
(37,570 |
) |
(6,055 |
) |
|
|
(66,957 |
) |
(10,792 |
) |
Net change in short-term investments with terms of three months or less |
|
(180,000 |
) |
335,803 |
|
(262,558 |
) |
(42,317 |
) |
(480,000 |
) |
247,406 |
|
39,875 |
|
Purchase of short-term investments |
|
(300,000 |
) |
(593,805 |
) |
(300,000 |
) |
(48,351 |
) |
(400,000 |
) |
(2,358,122 |
) |
(380,060 |
) |
Proceeds from maturities of short-term investments |
|
520,000 |
|
203,589 |
|
203,271 |
|
32,761 |
|
1,040,000 |
|
1,017,596 |
|
164,007 |
|
Investment in an associated company |
|
|
|
(20,000 |
) |
|
|
|
|
(200,000 |
) |
(20,000 |
) |
(3,223 |
) |
Dividend from an associated company |
|
|
|
15,321 |
|
|
|
|
|
|
|
15,321 |
|
2,469 |
|
Transfer to restricted cash |
|
(152,871 |
) |
(98,517 |
) |
(173,252 |
) |
(27,923 |
) |
(1,566,244 |
) |
(492,149 |
) |
(79,320 |
) |
Placement/rollover of matured time deposits |
|
(4,426,928 |
) |
(4,934,854 |
) |
(5,068,797 |
) |
(816,942 |
) |
(21,807,617 |
) |
(21,955,012 |
) |
(3,538,506 |
) |
Proceeds from maturities of time deposits |
|
3,583,767 |
|
5,020,322 |
|
4,064,596 |
|
655,094 |
|
18,231,797 |
|
19,905,004 |
|
3,208,104 |
|
Net change in other assets |
|
(16,326 |
) |
(105,195 |
) |
(43,634 |
) |
(7,033 |
) |
(55,895 |
) |
(248,008 |
) |
(39,972 |
) |
Net cash used in investing activities |
|
(1,077,852 |
) |
(322,491 |
) |
(1,919,929 |
) |
(309,438 |
) |
(5,453,279 |
) |
(4,504,845 |
) |
(726,049 |
) |
The accompanying notes are an integral part of this press release.
NETEASE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(RMB and USD in thousands)
|
|
Quarter Ended |
|
Year Ended |
| ||||||||||
|
|
December 31 |
|
September 30, |
|
December 31 |
|
December 31 |
|
December 31 |
|
December 31 |
|
December 31 |
|
|
|
2013 |
|
2014 |
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2014 |
|
|
|
RMB |
|
RMB |
|
RMB |
|
USD (Note 1) |
|
RMB |
|
RMB |
|
USD (Note 1) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds of short-term bank loan |
|
|
|
|
|
|
|
|
|
1,005,680 |
|
2,046,669 |
|
329,863 |
|
Payment of short-term bank loan |
|
|
|
|
|
|
|
|
|
|
|
(975,504 |
) |
(157,223 |
) |
Proceeds from employees exercising stock options |
|
|
|
870 |
|
|
|
|
|
2,474 |
|
2,917 |
|
470 |
|
Capital contribution from noncontrolling interests and mezzanine classified noncontrolling interests |
|
|
|
|
|
130,376 |
|
21,013 |
|
916 |
|
130,486 |
|
21,031 |
|
Repurchase of shares |
|
|
|
|
|
|
|
|
|
(106,809 |
) |
|
|
|
|
Dividends paid to shareholders |
|
|
|
(298,142 |
) |
(288,686 |
) |
(46,528 |
) |
(815,413 |
) |
(1,983,010 |
) |
(319,603 |
) |
Net cash (used in)/provided by financing activities |
|
|
|
(297,272 |
) |
(158,310 |
) |
(25,515 |
) |
86,848 |
|
(778,442 |
) |
(125,462 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash held in foreign currencies |
|
(3,945 |
) |
(1,397 |
) |
1,760 |
|
284 |
|
(1,930 |
) |
(11,260 |
) |
(1,815 |
) |
Net increase/(decrease) in cash and cash equivalents |
|
540,996 |
|
525,953 |
|
(173,481 |
) |
(27,960 |
) |
(132,471 |
) |
563,155 |
|
90,764 |
|
Cash and cash equivalents, beginning of the period |
|
917,302 |
|
1,668,981 |
|
2,194,934 |
|
353,759 |
|
1,590,769 |
|
1,458,298 |
|
235,035 |
|
Cash and cash equivalents, end of the period |
|
1,458,298 |
|
2,194,934 |
|
2,021,453 |
|
325,799 |
|
1,458,298 |
|
2,021,453 |
|
325,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income tax, net |
|
238,424 |
|
153,567 |
|
186,347 |
|
30,034 |
|
687,454 |
|
551,303 |
|
88,854 |
|
Supplemental schedule of non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed asset purchases financed by accounts payable and accrued liabilities |
|
10,071 |
|
49,891 |
|
80,575 |
|
12,986 |
|
10,071 |
|
80,575 |
|
12,986 |
|
The accompanying notes are an integral part of this press release.
NETEASE, INC.
UNAUDITED SEGMENT INFORMATION
(RMB and USD in thousands, except percentages)
|
|
Quarter Ended |
|
Year Ended |
| ||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2013 |
|
2014 |
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2014 |
|
|
|
RMB |
|
RMB |
|
RMB |
|
USD (Note 1) |
|
RMB |
|
RMB |
|
USD (Note 1) |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game services |
|
2,109,456 |
|
2,459,596 |
|
2,863,299 |
|
461,480 |
|
8,308,618 |
|
9,815,019 |
|
1,581,894 |
|
Advertising services |
|
358,153 |
|
478,330 |
|
439,507 |
|
70,836 |
|
1,094,623 |
|
1,551,652 |
|
250,081 |
|
E-mail, e-commerce and others |
|
117,473 |
|
387,987 |
|
380,800 |
|
61,374 |
|
368,014 |
|
1,113,773 |
|
179,507 |
|
Total revenues |
|
2,585,082 |
|
3,325,913 |
|
3,683,606 |
|
593,690 |
|
9,771,255 |
|
12,480,444 |
|
2,011,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game services |
|
(120,543 |
) |
(137,582 |
) |
(155,764 |
) |
(25,105 |
) |
(444,154 |
) |
(548,861 |
) |
(88,460 |
) |
Advertising services |
|
(34,594 |
) |
(47,328 |
) |
(44,278 |
) |
(7,136 |
) |
(107,156 |
) |
(154,583 |
) |
(24,914 |
) |
E-mail, e-commerce and others |
|
(7,523 |
) |
(24,264 |
) |
(20,571 |
) |
(3,315 |
) |
(23,770 |
) |
(64,166 |
) |
(10,342 |
) |
Total sales taxes |
|
(162,660 |
) |
(209,174 |
) |
(220,613 |
) |
(35,556 |
) |
(575,080 |
) |
(767,610 |
) |
(123,716 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game services |
|
1,988,913 |
|
2,322,014 |
|
2,707,535 |
|
436,375 |
|
7,864,464 |
|
9,266,158 |
|
1,493,434 |
|
Advertising services |
|
323,559 |
|
431,002 |
|
395,229 |
|
63,700 |
|
987,467 |
|
1,397,069 |
|
225,167 |
|
E-mail, e-commerce and others |
|
109,950 |
|
363,723 |
|
360,229 |
|
58,059 |
|
344,244 |
|
1,049,607 |
|
169,165 |
|
Total net revenues |
|
2,422,422 |
|
3,116,739 |
|
3,462,993 |
|
558,134 |
|
9,196,175 |
|
11,712,834 |
|
1,887,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game services |
|
(444,180 |
) |
(529,871 |
) |
(650,323 |
) |
(104,813 |
) |
(1,649,803 |
) |
(2,111,701 |
) |
(340,344 |
) |
Advertising services |
|
(136,698 |
) |
(145,119 |
) |
(131,388 |
) |
(21,176 |
) |
(461,286 |
) |
(528,665 |
) |
(85,205 |
) |
E-mail, e-commerce and others |
|
(114,336 |
) |
(183,308 |
) |
(195,854 |
) |
(31,567 |
) |
(367,427 |
) |
(621,178 |
) |
(100,116 |
) |
Total cost of revenues |
|
(695,214 |
) |
(858,298 |
) |
(977,565 |
) |
(157,556 |
) |
(2,478,516 |
) |
(3,261,544 |
) |
(525,665 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit/(loss) : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game services |
|
1,544,733 |
|
1,792,143 |
|
2,057,212 |
|
331,562 |
|
6,214,661 |
|
7,154,457 |
|
1,153,090 |
|
Advertising services |
|
186,861 |
|
285,883 |
|
263,841 |
|
42,524 |
|
526,181 |
|
868,404 |
|
139,962 |
|
E-mail, e-commerce and others |
|
(4,386 |
) |
180,415 |
|
164,375 |
|
26,492 |
|
(23,183 |
) |
428,429 |
|
69,049 |
|
Total gross profit |
|
1,727,208 |
|
2,258,441 |
|
2,485,428 |
|
400,578 |
|
6,717,659 |
|
8,451,290 |
|
1,362,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit/(loss) margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online game services |
|
77.7 |
% |
77.2 |
% |
76.0 |
% |
76.0 |
% |
79.0 |
% |
77.2 |
% |
77.2 |
% |
Advertising services |
|
57.8 |
% |
66.3 |
% |
66.8 |
% |
66.8 |
% |
53.3 |
% |
62.2 |
% |
62.2 |
% |
E-mail, e-commerce and others |
|
(4.0 |
)% |
49.6 |
% |
45.6 |
% |
45.6 |
% |
(6.7 |
)% |
40.8 |
% |
40.8 |
% |
The accompanying notes are an integral part of this press release.
NETEASE, INC.
NOTES TO UNAUDITED FINANCIAL INFORMATION
Note 1: The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00 = RMB6.2046 on the last trading day of December 2014 (December 31, 2014) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.
Note 2: Share-based compensation cost reported in the Companys unaudited condensed consolidated statements of comprehensive income is set out as follows in RMB and USD (in thousands):
|
|
Quarter Ended |
|
Year Ended |
| ||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2013 |
|
2014 |
|
2014 |
|
2014 |
|
2013 |
|
2014 |
|
2014 |
|
|
|
RMB |
|
RMB |
|
RMB |
|
USD (Note 1) |
|
RMB |
|
RMB |
|
USD (Note 1) |
|
Share-based compensation cost included in: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
48,654 |
|
43,336 |
|
58,826 |
|
9,481 |
|
165,708 |
|
169,621 |
|
27,338 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Selling and marketing expenses |
|
4,820 |
|
6,720 |
|
7,910 |
|
1,275 |
|
17,967 |
|
23,253 |
|
3,748 |
|
- General and administrative expenses |
|
13,380 |
|
15,347 |
|
18,130 |
|
2,922 |
|
48,350 |
|
51,475 |
|
8,296 |
|
- Research and development expenses |
|
18,140 |
|
31,216 |
|
39,401 |
|
6,350 |
|
74,283 |
|
104,928 |
|
16,911 |
|
The accompanying notes are an integral part of this press release.