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)
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