currencies                   4,197         8,234      (68,136)      (9,710)      (28,181)      (103,040)      (14,683) 
                          ------------  ------------  ------------  -----------  ------------  -------------  ------------ 
Net increase/(decrease) in cash, cash 
 equivalents and restricted 
 cash       2,478,654                   (24,230,204)     1,328,070      189,248   (9,430,259)    (1,023,272)     (145,815) 
Cash, cash equivalents 
 and restricted cash, at 
 the beginning    of the 
 period                     15,679,412    46,085,520    21,855,316    3,114,358    27,588,325     24,206,658     3,449,421 
Cash, cash equivalents 
 and restricted cash, at 
 end of the period          18,158,066    21,855,316    23,183,386    3,303,606    18,158,066     23,183,386     3,303,606 
                          ============  ============  ============  ===========  ============  =============  ============ 
 
Supplemental disclosures 
of cash flow 
information: 
   Cash paid for income 
    taxes, net               1,165,196     2,848,493       554,867       79,068     3,864,820      4,586,071       653,510 
   Cash paid for 
    interest expenses          105,665       152,943       165,881       23,638       708,025        465,279        66,302 
 
The accompanying notes 
 are an integral part of 
 this announcement. 
 
 
 
NETEASE, INC. 
UNAUDITED SEGMENT INFORMATION 
(in thousands, except percentages) 
 
                               Three Months Ended                               Nine Months Ended 
               ---------------------------------------------------  ----------------------------------------- 
                 September                 September    September     September    September      September 
                    30,        June 30,       30,          30,           30,          30,            30, 
                   2023         2024         2024         2024          2023          2024          2024 
               ------------  -----------  -----------  -----------  ------------  ------------  ------------- 
                                                        USD (Note                                 USD (Note 
                   RMB           RMB          RMB          1)           RMB           RMB            1) 
Net 
revenues: 
Games and 
 related 
 value-added 
 services        21,779,851   20,055,819   20,864,036    2,973,102    60,644,094    62,380,233      8,889,113 
Youdao            1,538,783    1,321,721    1,572,541      224,085     3,908,687     4,286,121        610,767 
NetEase Cloud 
 Music            1,973,064    2,040,952    1,999,163      284,878     5,881,444     6,069,656        864,919 
Innovative 
 businesses 
 and others       1,978,708    2,067,313    1,774,139      252,813     5,893,769     5,811,415        828,120 
Total net 
 revenues        27,270,406   25,485,805   26,209,879    3,734,878    76,327,994    78,547,425     11,192,919 
               ------------  -----------  -----------  -----------  ------------  ------------  ------------- 
 
Cost of 
revenues: 
Games and 
 related 
 value-added 
 services       (6,749,507)  (6,008,604)  (6,503,146)    (926,691)  (19,555,391)  (19,067,061)    (2,717,034) 
Youdao            (679,147)    (684,942)    (783,085)    (111,588)   (1,880,026)   (2,178,383)      (310,417) 
NetEase Cloud 
 Music          (1,436,552)  (1,385,756)  (1,343,921)    (191,507)   (4,379,785)   (3,988,683)      (568,383) 
Innovative 
 businesses 
 and others     (1,438,900)  (1,364,285)  (1,103,122)    (157,194)   (4,274,533)   (3,778,555)      (538,440) 
Total cost of 
 revenues      (10,304,106)  (9,443,587)  (9,733,274)  (1,386,980)  (30,089,735)  (29,012,682)    (4,134,274) 
               ------------  -----------  -----------  -----------  ------------  ------------  ------------- 
 
Gross 
profit: 
Games and 
 related 
 value-added 
 services        15,030,344   14,047,215   14,360,890    2,046,411    41,088,703    43,313,172      6,172,079 
Youdao              859,636      636,779      789,456      112,497     2,028,661     2,107,738        300,350 
NetEase Cloud 
 Music              536,512      655,196      655,242       93,371     1,501,659     2,080,973        296,536 
Innovative 
 businesses 
 and others         539,808      703,028      671,017       95,619     1,619,236     2,032,860        289,680 
Total gross 
 profit          16,966,300   16,042,218   16,476,605    2,347,898    46,238,259    49,534,743      7,058,645 
               ============  ===========  ===========  ===========  ============  ============  ============= 
 
Gross profit 
margin: 
Games and 
 related 
 value-added 
 services            69.0 %       70.0 %       68.8 %       68.8 %        67.8 %        69.4 %         69.4 % 
Youdao               55.9 %       48.2 %       50.2 %       50.2 %        51.9 %        49.2 %         49.2 % 
NetEase Cloud 
 Music               27.2 %       32.1 %       32.8 %       32.8 %        25.5 %        34.3 %         34.3 % 
Innovative 
 businesses 
 and others          27.3 %       34.0 %       37.8 %       37.8 %        27.5 %        35.0 %         35.0 % 
 
The accompanying notes are an integral part of this announcement. 
 

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 = RMB7.0176 on the last trading day of September 2024 (September 30, 2024) 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 September 30, 2024, or at any other certain date.

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 
                  ----------------------------------------  ------------------------------- 
                  September   June    September  September  September  September  September 
                     30,       30,       30,        30,        30,        30,        30, 
                    2023      2024      2024       2024       2023       2024       2024 
                  ---------  -------  ---------  ---------  ---------  ---------  --------- 
                                                 USD (Note                        USD (Note 
                     RMB       RMB       RMB        1)         RMB        RMB        1) 
Share-based 
compensation 
cost included 
in: 
Cost of revenues    210,533  319,949    306,283     43,645    607,048    881,167    125,565 
Operating 
expenses 
 Selling and 
  marketing 
  expenses           33,804   42,865     36,365      5,182     97,226     97,099     13,836 
 General and 
  administrative 
  expenses          280,581  286,350    247,440     35,260    856,188    823,426    117,337 
 Research and 
  development 
  expenses          294,630  429,892    388,051     55,297    869,361  1,149,803    163,846 
 
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 subsidiary to meet the disclosure requirements under different accounting standards requirements.

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              September   September   September  September   September 
                    30,      June 30,      30,         30,         30,        30,         30, 
                   2023       2024        2024        2024        2023        2024       2024 
                ----------  ---------  ----------  ----------  ----------  ----------  --------- 
                                                   USD (Note                           USD (Note 
                    RMB        RMB         RMB         1)          RMB         RMB        1) 
Net income 
 attributable 
 to the 
 Company's 
 shareholders    7,836,888  6,758,749   6,538,435     931,721  22,834,289  20,931,130  2,982,663 
Add: 
 Share-based 
 compensation      808,276  1,059,939     960,706     136,900   2,394,559   2,897,543    412,897 
Non-GAAP net 
 income 
 attributable 
 to the 
 Company's 
 shareholders    8,645,164  7,818,688   7,499,141   1,068,621  25,228,848  23,828,673  3,395,560 
                ==========  =========  ==========  ==========  ==========  ==========  ========= 
 
Non-GAAP net 
income per 
share * 
Basic                 2.69       2.43        2.34        0.33        7.84        7.42       1.06 
Diluted               2.66       2.41        2.33        0.33        7.76        7.35       1.05 
 
Non-GAAP net 
income per 
ADS * 
Basic                13.45      12.15       11.72        1.67       39.20       37.12       5.29 
Diluted              13.30      12.05       11.63        1.66       38.79       36.77       5.24 
 
* 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-2024-unaudited-financial-results-302305327.html

SOURCE NetEase, Inc.

(END) Dow Jones Newswires

November 14, 2024 03:30 ET (08:30 GMT)