NetEase, Inc. (NASDAQ:NTES)

Third Quarter 2019 Financial Results

• Net revenues[2] were RMB14,635.7 million (US$2,047.6 million), an increase of 11.2% compared to the third quarter of 2018.
• Basic net income per ADS from continuing operations was US$13.97; non-GAAP basic net income per ADS from continuing operations was US$5.12.[3]

"During our eventful third quarter, we realized value for our shareholders across our business lines. On a year-over-year basis, we achieved solid growth in net revenues of 11% and non-GAAP net income from continuing operations of 74%. In recognition of this success, our board of directors has approved a dividend of US$7.59 per ADS for the third quarter," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Our main areas of investment are online games, online education, music and private label e-commerce. With the completion of Youdao's IPO, we will continue to invest in knowledge tools, online courses and smart devices to empower even more efficient learning in China.

"Online games remain the cornerstone of our business with steady growth from our existing titles and exciting new titles in China and globally. Our flagship title Fantasy Westward Journey Online reached new record high gross billings this quarter. We also advanced our international brand with more hit titles such as Knives Out, Identity V and Life-After in Japan. Going forward, we will continue to focus on the growth of our robust online games business worldwide, as well as create additional value among our evolving businesses rooted in education, music and e-commerce," Mr. Ding concluded.

 

BEIJING, Oct. 25, 2019 /PRNewswire/ -- NetEase, Inc. (NTES) ("NetEase" or the "Company"), one of China's leading internet and online game services providers, today announced the pricing of the initial public offering (the "IPO") by its majority-controlled subsidiary Youdao, Inc. ("Youdao") of 5,600,000 American depositary shares ("ADSs"), at US$17.0 per ADS. The aggregate offering size of the IPO and the concurrent private placement described below is approximately US$220.2 million (inclusive of approximately US$95.2 million of ADSs sold in the IPO), assuming the underwriters do not exercise their over-allotment option to purchase any additional ADSs, and approximately US$234.5 million (inclusive of approximately US$109.5 million of ADSs sold in the IPO), assuming the underwriters exercise their over-allotment option in full. Each ADS represents one Class A ordinary share of Youdao. The ADSs are expected to begin trading on the New York Stock Exchange today under the ticker symbol "DAO." 

Youdao has granted the underwriters an option, exercisable for 30 days from the date of the final prospectus, to purchase up to an aggregate of 840,000 additional ADSs to cover over-allotments.

HANGZHOU, China, Sept. 5, 2019 /PRNewswire/ -- NetEase, Inc. ("NetEase") (NTES) and Alibaba Group Holding Limited ("Alibaba") (BABA) today announced Alibaba's acquisition of NetEase's import e-commerce platform Kaola for approximately US$2 billion. The transaction paves the way for the two internet companies with deep roots in Hangzhou to further identify and explore business collaborations.

Alibaba plans for Kaola to continue to operate independently under its current brand. Tmall Import and Export General Manager Alvin Liu will serve as Kaola's new CEO.

In addition, Alibaba and NetEase have entered into a definitive agreement for Alibaba, together with Yunfeng, to invest approximately US$700 million in NetEase Cloud Music in its latest round of financing. The completion of this transaction is subject to certain closing conditions. NetEase will remain the controlling shareholder of NetEase Cloud Music following the closing of this transaction.

"We are pleased to have found a strategic fit for Kaola within Alibaba's extensive ecosystem, where Kaola will continue to provide Chinese consumers with high-quality import products and services. At the same time, the completion of this strategic transaction will allow NetEase to focus on its growth strategy, investing in markets that allow us to best leverage our competitive advantages. We remain fully committed to offering our users best-in-class and differentiated online content born from our relentless drive for craftsmanship and innovation," said William Ding, the Chief Executive Officer of NetEase. "As the controlling shareholder of NetEase Cloud Music, we will continue to fully support the growth of this business, helping it to realize its strategic goals in the music industry."

"Alibaba is confident about the future of China's import e-commerce market, which we believe remains in its infancy with great growth potential. We welcome Kaola to the Alibaba family and value NetEase's contributions in incubating an e-commerce platform with strong import capabilities. With Kaola, we will further elevate import service and experience for Chinese consumers through synergies across the Alibaba ecosystem," said Daniel Zhang, Chief Executive Officer of Alibaba Group. "Alibaba also looks forward to becoming a partner in the future development of NetEase Cloud Music and exploring innovative collaboration in the digital entertainment space."

Second Quarter 2019 Financial Results

• Net revenues were RMB18,769.0 million (US$2,734.0 million), an increase of 15.3% compared to the second quarter of 2018. 
• Basic earnings per ADS were US$3.47; non-GAAP basic earnings per ADS were US$4.12.[1]

"Our diverse portfolio of games and dedicated focus on our core business lines continued to lead our growth in the second quarter with net revenues and net income attributable to the Company's shareholders increasing by 15% and 46% year-over-year, respectively," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "We launched several new games in China and abroad in the second quarter, further enriching our strong game portfolio that spans a variety of genres. Our global initiatives are well underway. In addition to Knives Out and Identity V, a number of our new games have gained user recognition in Japan, including Life-After and Cyber Hunter. We are pleased with the progress we have made to introduce our games to international audiences and fortify our relationships with other industry leaders in the video games and entertainment markets. We will continue exploring overseas market opportunities and growing our games business on a global scale.

"We are executing well on our strategy to focus on our core business lines and improve operating efficiencies within each of our primary competencies. Best known for our content creation capabilities, we continue to emphasize product enhancement, offering new innovative content and better user experiences to our growing community of users. With the robust growth of our business in mind, our board of directors has approved a dividend of US$1.04 per ADS for the second quarter. We are delighted to be returning value to our investors as our business continues to boast healthy and growing profits," Mr. Ding concluded.

Quarterly Dividend

The board of directors has approved a dividend of US$1.04 per ADS for the second quarter of 2019, which is expected to be paid on August 30, 2019 to shareholders of record as of the close of business on August 23, 2019.

NetEase paid a dividend of US$0.69 per ADS for the first quarter of 2019 on June 7, 2019.

GUANGZHOU, China, July 15, 2019 /PRNewswire/ -- NetEase Games, the online games division of NetEase, Inc. (NTES), one of China's leading internet and online game services providers, today announced that it has acquired a strategic minority stake in Behaviour Interactive Inc. ("Behaviour"), Canada's largest independent video game developer.

Following this investment, Montreal-based Behaviour will continue to operate independently under the leadership of Rémi Racine, its President and Executive Producer, and NetEase Games will nominate a director to Behaviour's Board.

"NetEase is pleased to further develop our relationship with Behaviour, an online games pioneer and a leader of the asymmetrical battle arena genre," said Ethan Wang, Vice President of NetEase, Inc. "We look forward to leveraging Behaviour's deep passion and expertise to enhance our R&D efforts and deliver even more exciting new products to players worldwide."

Known as a premium content provider for game enthusiasts in China, NetEase Games has established itself on the global scene with successful game launches in multiple geographies in more recent years. By working with other leading international developers, NetEase Games is able to further enhance its advantages in R&D.

"NetEase's investment validates the reputation for excellence and efficiency we have built in the online games sector over the last 27 years," said Rémi Racine, President and Executive Producer of Behaviour Interactive. "At Behaviour, we are continuously looking for opportunities to accelerate growth by investing in R&D for new and innovative games for our players and in the recruitment of exceptional talent. As an industry leader in online games, NetEase brings highly reputable R&D and operational capabilities and experience that we believe will drive sustainable, long-term growth well into the future."

Privately held Behaviour Interactive develops games that turn players' imagination into reality. The company is the creator of the first globally successful asymmetric multiplayer horror game, Dead by Daylight, and the developer of over 250 titles, which have been delighting players on all major platforms since 1992.

GUANGZHOU, China, May 20, 2019 /PRNewswire/ -- NetEase, Inc. (NTES) ("NetEase" or the "Company"), one of China's leading internet and online game services providers, and Marvel Entertainment, the world-famous entertainment company, announced their strategic partnership at NetEase Games Annual Product Launch today. The two companies will collaborate to create original entertainment content based on internationally beloved Marvel stories. Joint products including games, television series and comic books featuring Marvel characters will be developed for users in China and beyond.

"Having admired the work Marvel has created over the years, we are excited to incorporate these beloved stories and characters into world-class entertainment content for global fans," said William Ding, founder and CEO of NetEase. "Adhering to NetEase's brand statement of 'Passion of Gamers', we will work hard to deliver the type of high-quality content that game players and Marvel fans will be pleased to see."

"Marvel's Super Heroes have inspired an entire universe of storytelling that resonates across today's media – and games are one of the best ways to experience those stories," said Dan Buckley, President of Marvel Entertainment. "As a global leader in online games, NetEase is the perfect fit to help bring the Marvel Universe to more fans around the world. We can't wait to share more about the exciting new games and other content that will be developed with this partnership."

Established in 1939, this year marks Marvel's 80th anniversary, celebrating its tradition of telling impactful and lasting stories that fans worldwide enjoy in comic books, movies, television series, games and other forms of entertainment.

In the past two decades, NetEase has earned its reputation as a premium content provider in China, not only in games, but also in education, music and e-commerce. In more recent years, the Company continues to establish itself in the global scene with new successful game launches in multiple geographies. By partnering with major international IP owners, NetEase is one step closer to being the true global games company it envisions itself to be.

First Quarter 2019 Financial Results

• Net revenues were RMB18,356.2 million (US$2,735.2 million), an increase of 29.5% compared to the first quarter of 2018. 
• Net income attributable to the Company's shareholders was RMB2,382.1 million(US$354.9 million). Non-GAAP net income attributable to the Company's shareholders was RMB3,017.0 million (US$449.5 million).[1]
• Diluted earnings per ADS were US$2.75; non-GAAP diluted earnings per ADS were US$3.48.[1]

"We are pleased to begin the year with a strong quarter. Our total net revenues grew robustly by 30% and our net income more than tripled year-over-year," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Online game services revenues continued to grow steadily with the support of a diversified portfolio and impressive performances from all of our leading titles. In the spirit of Chinese New Year and Lantern Festival, we rolled out a number of updates that celebrated our traditional culture and resonated strongly with our game players. We also made further progress on international fronts, with Night Falls: Survival and Cyber Hunter making strong debuts in Japan. After a few years of hard work, the NetEase brand is now widely recognized in not only MMORPG, but also in a broad range of non-MMORPG categories, both in China and internationally.

"Our heightened emphasis on online games, e-commerce, advertising, online education and music allows us to sharpen our focus on areas where we see the most potential for sustainable, long-term growth. During the first quarter, we made a series of structural optimizations to hone these core growth segments. Thanks to the effective execution of our teams, we are already seeing early success with this strategy, which directly resulted in a considerable increase in our profits in the first quarter. We remain focused on improving efficiency and increasing our return on investment across these primary business lines, where we can continue to create additional value for our stakeholders and partners," Mr. Ding concluded.

Fourth Quarter 2018 Financial Results

• Net revenues[1] were RMB19,844.3 million (US$2,886.2 million), an increase of 35.8% compared with the fourth quarter of 2017.
• Non-GAAP basic and diluted earnings per ADS were US$9.76 and US$9.70, respectively, for fiscal year 2018, compared to non-GAAP basic and diluted earnings per ADS of US$14.05 and US$13.94, respectively, for fiscal year 2017.

"We finished the year with total annual net revenues of RMB67 billion, a 24% increase from 2017, driven by a diverse portfolio of online games as well as healthy growth in our e-commerce, advertising services and other internet product and service offerings," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "2018 was a very fruitful year of diversification for our online games. While our flagship titles remain stronger than ever, we also introduced a number of highly successful titles for PC-client and mobile platforms. These new titles span a wide variety of genres and led to rapid growth in our user base, gaining us access to new demographics and instilling confidence in our ability to branch out beyond MMORPG categories.

"Throughout the year we also made a number of advancements to better position us on the world's stage, most notably in Japan. Our world-class R&D capabilities, particularly in the mobile arena, afford us an exciting opportunity to appeal to a global audience. We plan to continue to invest in global talent, IP and collaboration with other elite game developers worldwide to further this momentum.

"While online games remain the cornerstone of our business, we also see huge potential in e-commerce, music and online education. These will be the primary focus of our business strategy in 2019. Our relentless drive to create premium content has paved the way for our success, and our highly focused investments in carefully-chosen new business categories have allowed NetEase to stand the test of time in a rapidly evolving internet industry. Two decades after our inception, our focus on quality remains at the heart of our Company, propelling the unique value proposition we offer to our community and driving our growing success," Mr. Ding concluded.

GUANGZHOU, China, Jan. 29, 2019 /PRNewswire/ -- NetEase Games, the online games division of NetEase, Inc. (NASDAQ: NTES), one of China's largest internet companies, today announced that it has acquired a minority stake in Quantic Dream S.A. to further the development and distribution of global online games.

Quantic Dream will continue to operate independently under the direction of industry veterans David Cage and Guillaume de Fondaumière. Quantic Dream defines and leads the interactive storytelling game, a creative game genre. With 22 years of experience, this AAA studio has successfully launched several worldwide blockbusters, including Heavy Rain and Detroit: Become HumanTM. This strategic investment aims to support the studio's vision of becoming a global, multi-franchise entertainment company, and to develop advanced technologies and games for the future.

"With a strong focus on in-house development, we are constantly looking for partners that complement us in the development and creation of the next generation games," said Ethan Wang, VP of NetEase, Inc., "Quantic Dream's excellence in interactive storytelling and the valuable expertise it has built over the past two decades is exactly what we have been looking for. We are pleased to partner with Quantic Dream and we hope to create incredible game experiences for players all around the globe."

"The landscape of the gaming industry will go through major evolutions in the coming years, with new hardware to come, new business models to explore and new ways of playing to invent," said Quantic Dream CEO and Creative Director David Cage. "We want Quantic Dream to take a key role in this exciting future and having NetEase by our side as a strategic partner will allow us to expand our creative vision and develop the company to its fullest potential. NetEase understands what Quantic is about as they share our passion for high quality games and our ambitions for the studio."

"We have been impressed by NetEase's vision, their commitment to quality and innovation and their impressive track-record and know-how in crafting and operating some of the most popular games on the planet," continued Guillaume de FONDAUMIERE, Co-CEO of Quantic Dream. "Partnering with NetEase will open new opportunities for our studio and strengthen our position as pioneers and innovators."

SHANGHAI, Jan. 10, 2019 /PRNewswire/ -- Blizzard Entertainment, Inc. and NetEase, Inc. (NASDAQ: NTES) announced today an extension to their 11-year partnership in mainland China. The publishing agreement between the two companies, which encompasses World of Warcraft®, the StarCraft® series, the Diablo® series, Hearthstone®, Heroes of the Storm® and Overwatch®, will extend until January 2023.

The collaboration between Blizzard and NetEase began in 2008, with a licensing agreement to bring StarCraft® II and the Blizzard Battle.net® platform to China. Since then, the companies have worked together to bring Blizzard's epic game experiences to Chinese players.

"NetEase has been instrumental in helping us bring Blizzard's epic games to even more players around the world, and we're grateful to have such a strong partner in China," said J. Allen Brack, President of Blizzard Entertainment. "We look forward to continuing our relationship and cooperation in China and beyond."

"We're pleased to continue our successful partnership with Blizzard after more than a decade of close cooperation," said William Ding, founder and CEO of NetEase. "The scope of our collaboration is now deeper and broader than ever before. We're confident that together we will continue to bring even more exciting game experiences to players worldwide."

Third Quarter 2018 Financial Results

• Net revenues[1] were RMB16.9 billion (US$2.5 billion), an increase of 35.1% compared with the third quarter of 2017.
• Diluted earnings per ADS were US$1.80; non-GAAP diluted earnings per ADS were US$2.55.

"We are very pleased with the strong third quarter performances from each of our primary business lines, online games, e-commerce, advertising services and e-mail and others, which delivered 35.1% growth in total net revenues year-over-year," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "In the third quarter, net revenues for our online games stood above RMB10 billion for the second consecutive quarter, supported by a game portfolio that is more diversified than ever before.

"While the performances from our flagship titles remain remarkably steady, we are innovators at our core. NetEase is one of the very few companies that has consistently created distinct new game IP for both PC-client and mobile platforms. Over the last few months, we rolled out several more hit games including Justice, Ancient Nocturne and Night Falls: Survival. Additionally, we have taken a more global view of our online games business. As a result, our international expansion, took another leap forward this quarter, contributing more than 10% of total online game net revenues for the first time in our company's history. We are also very excited about our collaboration with Blizzard to bring one of their biggest games to mobile players, increasing our visibility and expanding our foothold in the global online games market.

"Our e-commerce business grew 67.2% year-over-year in the third quarter, well outpacing the industry average. While we continue to grow this business, we are maintaining a disciplined approach to spending.

"In addition to e-commerce, we believe there is tremendous value in many of our incubated business initiatives that are yet to be fully realized. We are particularly pleased to have completed the latest round of financing in NetEase Cloud Music. We believe this financing underscores the value of our proprietary platform, and with this partnership in place we are ready to take the business to the next level," concluded Mr. Ding.

BEIJING, Nov. 12, 2018 /PRNewswire/ -- NetEase, Inc. (NTES) ("NetEase"), one of China's leading internet and online game services providers, today announced that its music streaming platform NetEase Cloud Music has completed its previously announced round of financing with investors, including strategic partner Baidu, General Atlantic, Boyu Capital and several other investors. The total amount raised was over $600 million, and NetEase remains the controlling shareholder of the NetEase Cloud Music business.

With a population of 1.4 billion and upward trends in consumption, China's recorded music market is expected to expand considerably. China's recorded music market was 45 times smaller than that in the U.S. in 2017, and China's per capita spending on recorded music is projected to quadruple from 2017 to 2023, according to iResearch. Revenue from the music industry in China is projected to reach RMB376 billion in 2018[1], affording China's digital music market tremendous potential for continued growth as younger generations embrace the convenience of streaming music services and online music becomes a way of life. This round of financing aids NetEase's efforts to further penetrate the market and leverage its strong industry position.

Launched in April 2013, NetEase Cloud Music is now widely recognized as one of the industry's largest players, with more than 600 million registered users, adding 200 million alone over the last twelve months. With a focus on delivering a differentiated and premium user experience, NetEase Cloud Music has been praised for providing precise, personalized recommendations and promoting user interaction.

After just over five years of operation, this platform has created a community for genuine music lovers and independent musicians, who are the real trend setters of China's music world. As a result, NetEase Cloud Music now has one of China's most active music platforms, with a market leading user retention rate and user time spent on the platform as well as one of the largest catalogs of user-generated content.

NetEase actively supports original musicians and fosters the growth of independent music on the platform. Today, over 70,000 independent musicians have uploaded over 1.2 million songs to the platform.

"Baidu has always been committed to creating the most powerful content ecosystem. We have found that Chinese users still have a lot of room for online music," said Mr. Wang Lu, Vice President of Baidu. "Netease Cloud Music has made a name for itself in terms of its differentiated user offering, together with Baidu's leadership in feed business, search content distribution capabilities in China, we look forward to working together to provide users with enhanced service through the strongest content distribution, and the highest quality content ecosystem."

"Pay-for-content is a growing trend, especially among Generation Z users, driven by increasing affordability and improving protection of intellectual property," said Eric Zhang, Managing Director and Head of China for General Atlantic. "We are deeply impressed with the NetEase Cloud Music team's understanding of the music industry and their commitment to the user experience. We are excited to partner with NetEase Cloud Music and its strategic partners as the platform delivers one of the best online music streaming services and supports independent artists for content creation in the China online music market."

"China's online music market is attractive with huge growth potential," said Joey Chen, Managing Director of Boyu Capital. "We believe that NetEase Cloud Music commands unique value in the market as a clear leader in incubating independent musicians and enjoys proven popularity among a young generation of users in China who have formed an active community on the platform. We are confident that NetEase Cloud Music is well-positioned to capture the rising opportunities and achieve sustained high growth."

"Content creation and user experience differentiation is embedded in our corporate DNA," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "A focus on quality and craftsmanship is prevalent in all our product offerings, including online games and e-commerce, among others. NetEase Cloud Music is no different. Music is particularly region-specific and we strive to create the largest interactive community for music lovers in China by providing users with convenient access to both mainstream and independent artists. We remain relentlessly focused on continuous improvement, and we are confident we can further unlock the value of this important asset in China's thriving online music services market."

BEIJING, Nov. 12, 2018 /PRNewswire/ -- NetEase, Inc. (NTES) ("NetEase"), one of China's leading internet and online game services providers, today announced that its music streaming platform NetEase Cloud Music has completed its previously announced round of financing with investors, including strategic partner Baidu, General Atlantic, Boyu Capital and several other investors. The total amount raised was over $600 million, and NetEase remains the controlling shareholder of the NetEase Cloud Music business.

With a population of 1.4 billion and upward trends in consumption, China's recorded music market is expected to expand considerably. China's recorded music market was 45 times smaller than that in the U.S. in 2017, and China's per capita spending on recorded music is projected to quadruple from 2017 to 2023, according to iResearch. Revenue from the music industry in China is projected to reach RMB376 billion in 2018[1], affording China's digital music market tremendous potential for continued growth as younger generations embrace the convenience of streaming music services and online music becomes a way of life. This round of financing aids NetEase's efforts to further penetrate the market and leverage its strong industry position.

Launched in April 2013, NetEase Cloud Music is now widely recognized as one of the industry's largest players, with more than 600 million registered users, adding 200 million alone over the last twelve months. With a focus on delivering a differentiated and premium user experience, NetEase Cloud Music has been praised for providing precise, personalized recommendations and promoting user interaction.

After just over five years of operation, this platform has created a community for genuine music lovers and independent musicians, who are the real trend setters of China's music world. As a result, NetEase Cloud Music now has one of China's most active music platforms, with a market leading user retention rate and user time spent on the platform as well as one of the largest catalogs of user-generated content.

NetEase actively supports original musicians and fosters the growth of independent music on the platform. Today, over 70,000 independent musicians have uploaded over 1.2 million songs to the platform.

"Baidu has always been committed to creating the most powerful content ecosystem. We have found that Chinese users still have a lot of room for online music," said Mr. Wang Lu, Vice President of Baidu. "Netease Cloud Music has made a name for itself in terms of its differentiated user offering, together with Baidu's leadership in feed business, search content distribution capabilities in China, we look forward to working together to provide users with enhanced service through the strongest content distribution, and the highest quality content ecosystem."

"Pay-for-content is a growing trend, especially among Generation Z users, driven by increasing affordability and improving protection of intellectual property," said Eric Zhang, Managing Director and Head of China for General Atlantic. "We are deeply impressed with the NetEase Cloud Music team's understanding of the music industry and their commitment to the user experience. We are excited to partner with NetEase Cloud Music and its strategic partners as the platform delivers one of the best online music streaming services and supports independent artists for content creation in the China online music market."

"China's online music market is attractive with huge growth potential," said Joey Chen, Managing Director of Boyu Capital. "We believe that NetEase Cloud Music commands unique value in the market as a clear leader in incubating independent musicians and enjoys proven popularity among a young generation of users in China who have formed an active community on the platform. We are confident that NetEase Cloud Music is well-positioned to capture the rising opportunities and achieve sustained high growth."

"Content creation and user experience differentiation is embedded in our corporate DNA," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "A focus on quality and craftsmanship is prevalent in all our product offerings, including online games and e-commerce, among others. NetEase Cloud Music is no different. Music is particularly region-specific and we strive to create the largest interactive community for music lovers in China by providing users with convenient access to both mainstream and independent artists. We remain relentlessly focused on continuous improvement, and we are confident we can further unlock the value of this important asset in China's thriving online music services market."

HANGZHOU, China, Nov. 5, 2018 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading internet and online game services providers, announced a collaboration with Blizzard Entertainment to co-develop the next game in the storied Diablo® franchise, Diablo Immortal™, a mobile massively multiplayer action-RPG for Android and iOS devices.

As unveiled November 2 at BlizzCon® 2018, this new chapter of the blockbuster Diablo saga takes place between the end of Diablo II: Lord of Destruction and the beginning of Diablo III. In Diablo Immortal, players will embark on thrilling expeditions, take part in dynamic events across unique public zones, and plunder instanced dungeons, hacking and slashing their way through the demonic minions surrounding them. From the peaceful town of Wortham to the ancient Library of Zoltun Kulle to the suffocating jungle island of Bilefen, players will explore familiar vistas and until-now undiscovered corners of Sanctuary in search of the tainted fragments of the Worldstone.

Six iconic and highly customizable Diablo character classes will be available in Diablo Immortal—Barbarian, Crusader, Demon Hunter, Monk, Necromancer, and Wizard—each with new powers and abilities tailored specifically for touchscreen devices, with more playable classes planned for future updates.

"We are very proud that Blizzard Entertainment has chosen us to help bring one of their largest game franchises to mobile," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "We consider this a huge opportunity to show the world, and particularly Western gamers, NetEase's strong R&D capabilities. We take a very global view of our online games business, and Blizzard's Diablo franchise truly embodies the sort of worldwide appeal that we strive for."

HANGZHOU, China, Aug. 14, 2018 /PRNewswire/ -- Recently, NetEase, Inc. (NTES) released second quarter 2018 financial results. The Company's net revenues for its two e-commerce businesses -- NetEase Yanxuan and NetEase Kaola (a cross-border platform) -- stood at US$660 million, a 75.2% year-on-year increase, which is a significant increase from the previous quarter; while the gross profit margin for its e-commerce business increased to 10.1%. NetEase's e-commerce business platforms have again demonstrated the Company's ability to introduce exciting new online offerings and rapidly improving margins.

An ODM Model That Directly Connects Manufactures and Consumers

As one of NetEase's two primary businesses within its e-commerce segment, NetEase Yanxuan has become very popular after it was officially launched in April 2016, mainly through word-of-mouth effect. NetEase Yanxuan features products with a high cost-performance ratio by partnering directly with big manufacturers, improving upstream supply chain, and offering more affordable yet quality products. In addition, through careful selection, NetEase Yanxuan has devoted special attention to the aesthetics and style of each item; it also boasts simplicity and environmentally friendly materials. As a result, the quality and service of consumer shopping have been greatly improved, and consumers' decision-making time has been considerably shortened.

In China, there are two incumbent e-commerce models: Taobao's C2C mode and JD.com's B2C mode. C2C offers a wide range of products and the price is relatively inexpensive, but problems arising from this model are also evident: such as products with inconsistent quality and high choice cost. The B2C model, represented by JD.com, is welcomed by consumers due to its incomparable convenience, supported by self-built logistics, however, the branded goods sold via this model carry less competitive pricing because of the intermediaries involved. In contrast, NetEase's Yanxuan business model sells products under its own brand name while these products are designed or improved by ODMs (Original Design Manufacturer). These components help to ensure the best of all world for our consumers: consistent high quality products at competitive price.

Additionally, since the design patents used by Yanxuan-contracted ODMs belong to the manufacturers, they are able to sell their products to multiple brands. Therefore, NetEase Yanxuan is not involved in any potential theft of intellectual property and the Yanxuan Model is rapidly becoming regarded as the third mode of China's e-commerce.

Being an Industry-leader, Yanxuan Model Is to Be Copied

In the past two years, NetEase Yanxuan has expanded its portfolio covering 10 categories from the original home textiles and home products to kitchenware, toiletries, luggage & travel gear, baby & maternity, food and other products; SKUs (Stock Keeping Units) have also grown from 30 items to more than 10,000. In April of this year, NetEase Yanxuan officially announced the "Good Life 2.0" program. The program is designed to improve supply chain integration, assist in product system upgrading and support better quality of life for our consumers with the opening of 100 Yanxuan HOME stores.

Li Yong, director of the Internet Economics Research Office of National Academy of Economic Strategy, CASS, said that the "Yanxuan business model actually provides consumers with 'refined information', which is a way to help consumers filter products and reduce the cost of choosing products."

Jing Daily, a renowned financial media outlet, published an article in which many Chinese factories welcomed the NetEase Yanxuan model with open arms. Due to the rising labor costs in China, many global luxury brands moved their production out of China, which has brought pressure to Chinese manufacturers. The Yanxuan model creates new orders and demands for these factories to utilize their spare production capacities and move up the value chain. According to Forbes' 2018 China's Most Innovative Enterprise List. NetEase Yanxuan was ranked top 50, well ahead of its retail peers.

The highly appraised business model and its rapid expansion was witnessed by the industry. Many of the industry peers were eager to roll out their own version of Yanxuan, including e-commerce giants such as Alibaba (Taobao Xinxuan) and JD.com (Jingzao).

Riding the Trend of China's Consumption Upgrading

In fact, the Yanxuan Model is created against the backdrop of China's consumption upgrade. There is a major shift in demand for high-end, personalized and diversified products, backed by the increasing population of middle -and high-income consumers. The consumption upgrade has triggered an escalation of consumer groups and consumption structure, which has led to an upgrade of products and services in the direction of "quality, taste, and individuality."

The wave of consumption upgrades and its positive stimulus to the entire economy and society have also received government attention. At China's "two sessions (the NPC and CPPCC)" meetings this year, the Report on the Work of the Government clearly stated that: "We will strengthen the fundamental role of consumption in driving economic growth. We will promote consumption upgrading and develop new forms and models of consumption." In response to a reporter's question, one officer of the National Development and Reform Commission of PRC said that promoting consumption is to focus on the direction of consumption upgrading and strive to increase the supply of high-quality products and services.

Driven by these trends, NetEase Yanxuan removes the intermediaries and traditional sales models. Instead, NetEase Yanxuan sets the prices on high quality goods, thus providing users with excellent value for their money with stellar products. In addition, in order to fundamentally guarantee product quality, Yanxuan's procurement department inspects every production area of raw materials in-person, and is deeply involved in the manufacturing process when selecting raw materials, designing products and sampling. These processes that promise high quality are just what consumption upgrading calls for.

BEIJING, June 11, 2018 /PRNewswire/ -- NetEase, Inc. (NTES) ("NetEase" or the "Company"), one of China's leading internet and online game services providers, today announced that its board of directors approved an amendment to its share repurchase program on June 11, 2018 authorizing the repurchase of up to an additional US$1.0 billion of the Company's outstanding American Depositary Shares (ADSs). This expands the $1.0 billion repurchase program that was approved on November 15, 2017 for a period not to exceed 12 months, bringing the total authorized repurchase amount to US$2.0 billion.

Under the terms of the approved program, NetEase may repurchase its issued and outstanding ADSs in open-market transactions on the NASDAQ Global Select Market. The timing and dollar amount of repurchase transactions will be subject to the Securities and Exchange Commission (SEC) Rule 10b-18 requirements. It is also expected that such repurchases will be effected pursuant to a plan in conformity with SEC Rule 10b5-1. The extent to which NetEase repurchases its ADSs will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined by NetEase's management team. The repurchase program may be suspended or discontinued at any time. NetEase plans to fund repurchases made under this program from available working capital.

GUANGZHOU, China, June 1, 2018 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading internet and online game services providers, and Bungie, Inc., an independent employee-owned studio, today announced that NetEase has acquired a minority stake in Bungie to support the incubation of new creative gameplay and accelerate Bungie's vision of becoming a global, multi-franchise entertainment company. Bungie will continue to operate independently with its employee-owned corporate structure.

"We have been big fans of the worlds Bungie has created, and are drawn to Bungie's passion and creativity in online games development," said NetEase CEO and Director, William Ding. "Bungie and NetEase share the same vision and ambition to deliver incredible experiences to millions of players all around the globe. We are excited to partner with Bungie as they transform from a single franchise development team into a global, multi-franchise entertainment studio."

NetEase is one of the world's largest incubators of quality content, dedicated to helping the growth of innovative studios around the globe, and it has grown its international presence along the way. In China, NetEase has captured the largest portion of the country's premium gamer segment. With this partnership, NetEase will help fuel the creativity of the Bungie team as they explore new directions, create new worlds and bring their newest ambitions to life.

"This new partnership will enable us to accelerate our global vision, while building new teams dedicated to delivering brand-new experiences," said Bungie CEO, Pete Parsons. "NetEase creates and operates some of the most popular games on the planet. We're excited for them to bring their experience as we enter this new chapter in Bungie's history. With NetEase's industry expertise and international reach, our partnership will help us realize our shared goal of reaching players around the globe."

Through its existing partnership with Activision, Bungie will continue to develop and expand the Destiny franchise and support its passionate community. In addition, under the stewardship of Chief Creative Officer and Bungie Founder Jason Jones, Bungie will begin the creation of new worlds.

Bungie has created two multi-billion-dollar franchises (Halo and Destiny) and introduced numerous innovations to the gaming industry over the course of its 27-year history. Bungie believes gaming has the unique potential to not only entertain individuals, but to bring together players from all over the world to form lasting friendships and lifelong memories.

First Quarter 2018 Financial Results

• Net revenues[1] were RMB14.2 billion (US$2.3 billion), an increase of 3.9% compared with the first quarter of 2017.
• Diluted earnings per ADS were US$0.91; non-GAAP diluted earnings per ADS were US$1.61.

"We believe the advancements we made across our business segments in the first quarter put us on track for a successful year. We are excited by the longevity of and player loyalty to our flagship games, the strong performances of our new titles launched in the first quarter, and the continued rapid expansion of our e-commerce business, as well as the healthy development of our advertising services," said Mr. William Ding, Chief Executive Officer and Director of NetEase.

"We continue to dominate China's MMORPG market with our new chart-topping title, Chu Liu Xiang, which modernized MMOPRG gameplay," Mr. Ding continued. "Our strategy to introduce games in non-MMORPG genres is also beginning to bear fruit. Monetization for Knives Out and Terminator 2 is ramping up smoothly, and Identity V, our very first ABA game, attracted a huge fan base immediately following its launch in April.

"We are committed to executing on our game diversification strategy, and we are becoming more adept at reaching non-MMORPG users. As we work to expand our award-winning portfolio of online games, we expect our marketing costs will normalize going forward, compared with our marketing expenses in the first quarter of 2018. For 2018, we will work to ensure that each of our business lines continues to thrive, and we remain focused on creating additional value for all of our stakeholders," concluded Mr. Ding.

Fourth Quarter 2017 Financial Results

• Net revenues were RMB14.6 billion (US$2.2 billion), an increase of 20.7% compared with the fourth quarter of 2016.
• Diluted earnings per ADS were US$1.49; non-GAAP diluted earnings per ADS were US$2.18.

"2017 marked another year of progress with growth across each of our core business segments year-over-year. Our total net revenues for the year increased by 41.7% as we brought a number of new blockbuster online games to audiences across the globe, considerably scaled our e-commerce business and further grew our landmark advertising services and e-mail and others business lines," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "For the fourth quarter, our total net revenues continued to grow year-over-year and quarter-over-quarter. Although a few mobile titles such as Onmyoji and the mobile version of New Ghost experienced a decline, we have introduced new content for these games to attract players. During the fourth quarter, we held substantial promotions to support the successful launch of our new battle arena games Knives Out, Terminator 2: Judgment Day and Rules of Survival. We also made additional investments to further scale our thriving e-commerce businesses. We believe these strategic investments provide us with extended reach and momentum to support our future long-term growth.

"Our business remains strong and our 2018 initiatives to bring exciting new titles to our robust and diverse portfolio of self-developed games are well underway. To expand our reach, we will also seek partnerships with other industry leaders to bring mobile and PC-client games to audiences worldwide. Our e-commerce businesses and advertising services are also thriving, with e-commerce accounting for approximately 22% of our total net revenues in 2017. We will continue to expand our Kaola.com and Yanxuan e-commerce platforms in 2018 along with our other business segments where we see opportunities to generate value for our shareholders, as well as serve and grow our community of users by providing best-in-class online content and services," Mr. Ding concluded.

Third Quarter 2017 Financial Results

• Net revenues were RMB12.5 billion (US$1.9 billion), an increase of 35.5% compared with the third quarter of 2016.
• The Company reported basic and diluted earnings per ADS of US$3.39 and US$3.37, respectively, for the preceding quarter, and basic and diluted earnings per ADS of US$3.14 and US$3.12, respectively, for the third quarter of 2016.
• Non-GAAP basic and diluted earnings per ADS were US$3.45 and US$3.43, respectively, for the third quarter of 2017, compared to non-GAAP basic and diluted earnings per ADS of US$3.96 and US$3.94, respectively, in the preceding quarter, and non-GAAP basic and diluted earnings per ADS of US$3.46 and US$3.43, respectively, for the third quarter of 2016.

"We continue to amass one of China's preeminent mobile game portfolios while simultaneously advancing our advertising services and e-commerce business lines, growing our total net revenues by 35.5% in the third quarter," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "As expected, Onmyoji's slowdown in China persisted in the third quarter, however, we are regaining traction with the introduction of new content and promotional activities. In addition, the international reception to Onmyoji remains solid, and the early testing for the battle arena game based on Onmyoji IP is on track with our expectations. We also strengthened our portfolio in the third quarter by launching a number of expansion packs and new mobile titles. These new launches, including our Japanese-themed RPG Index and the blockbuster title Minecraft, have been positively received, with early monetization efforts underway.

"There remain ample growth opportunities in China as we further diversify our portfolio by exploring a variety of genres. We will also look to extend our popular titles overseas in markets eager for new content and where mobile growth remains robust. In addition, our advertising services and e-commerce divisions Kaola.com and Yanxuan continue to prosper. As we invest in the growth of each of these business lines, together, they strengthen not only the NetEase brand, but our commitment to our investors and community," Mr. Ding concluded.

BEIJING, June 26, 2017 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES) ("NetEase" or the "Company"), one of China's leading internet and online game services providers, today announced that it has appointed Mr. Zhaoxuan Yang ("Charles") as its Chief Financial Officer, effective June 30, 2017. Mr. Yang will replace Mr. Onward Choi who, as previously announced, resigned from his position as Acting Chief Financial Officer due to personal reasons. Mr. Choi will continue to serve NetEase as a consultant over the coming year to support a smooth transition.

Mr. William Ding, Chief Executive Officer and Director of NetEase, said, "Charles holds nearly a decade of finance and investment banking experience and in-depth knowledge of China's TMT industry. We are pleased to welcome him to our management team and expect these skills, along with his leadership capabilities, to be excellent additions to our company. I would also like to thank Onward for his many years of dedication to the NetEase family, and we wish him well in his endeavors."

"I am very excited to join NetEase. As a significant player in China's internet industry, the future is full of opportunity for NetEase, and I look forward to working with the entire management and finance team to help the Company to achieve its next stages of growth," Mr. Yang said.

Prior to joining the Company, Mr. Yang was an executive director of the China technology, media and telecommunications, and corporate finance team at J.P. Morgan Securities (Asia Pacific) Limited based in Hong Kong for almost a decade. Mr. Yang holds a master's degree in Business Administration from the University of Hong Kong and a bachelor's degree from Wesleyan University with majors in Economics and Mathematics.

First Quarter 2017 Financial Results

• Net revenues were RMB13.6 billion (US$2.0 billion), an increase of 72.3% compared with the first quarter of 2016.
• Diluted earnings per ADS were US$4.29; non-GAAP diluted earnings per ADS were US$4.75.

"Our strong first quarter results were led by our self-developed mobile games as we continued to bring innovative content to our massive audience," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "During the period, we advanced our strategic initiatives by rolling out new mobile games and expansion packs for our PC-client games, enhancing the monetization capabilities of our advertising services, and expanding our growing e-commerce businesses. The Company continues to introduce popular games that enrich the online game market in China, and initiated closed beta testing for Minecraft in April. We are also actively expanding our international footprint by bringing hit titles such as Onmyoji and Land of Glory to global audiences."

"Ingenuity remains the cornerstone of our success across each of our core business lines where there are ample opportunities for growth. We are devoting significant resources to our media business supported by our deep expertise and R&D capabilities. Our e-commerce businesses such as Kaola.com and Yanxuan are also thriving with promising growth trajectories. With these initiatives and our focus on creating premium content, we aim not only to expand our business, but to grow our community and elevate users' imaginations," Mr. Ding concluded.

HANGZHOU, China, May 11, 2017 /PRNewswire/ -- NetEase, Inc. (NTES) one of China's leading Internet and online game services providers, today announced its unaudited financial results for the first quarter ended March 31, 2017.

NetEase led the industry with stunning results in the first quarter with total net revenues of RMB13.6 billion (US$2.0 billion), an increase of 72.3% compared with the same period last year. With a diverse and robust mobile game portfolio that delivers excellent results, net revenues for online games reached RMB10.7 billion (US$1.6 billion), an increase of 78.5% compared to the same period last year. Gross profit came in at a solid RMB7.5 billion (US$1.1 billion), an increase of 63.2% year-over-year.

The Company's latest blockbuster title, Onmyoji garnered over 200 million downloads worldwide and ranked Best Mobile Game 2016, along with Pokemon Go and Clash Royale in the Games of the Year rankings by Facebook, Onmyoji. Meanwhile, the international PC version of Onmyoji in traditional Chinese made its debut on Facebook Gameroom in recent FBF8 conference. All-time blockbuster mobile game favorites such as Fantasy Westward Journey, Ghost, and Westward Journey continued their popularity and ranked among the top 10 highest grossing mobile games in China's iOS App Store. In addition, Netease Games announced the release of Minecraft's Chinese closed beta at Beijing's massive water cube. The Company also released new mobile games including Land of Glory, Mist World, and Demon Seals, all of which had excellent reception.

NetEase continues to accelerate its international expansion by creating new immersive and global gameplay experiences. In addition to existing titles such as Tome of the Sun, Eternal Arena, and Twilight Pioneers on the Google VR platform, in January, NetEase released Immortal Conquest - a MMO strategy war game, in which players build and manage their own cities, expand on over 2 million pieces of land, and align with other players to conquer the world. In February, NetEase's self-developed PC game Revelation was released in Europe and the U.S., and is a Chinese mythical fantasy game with CG-like in-game graphics. In addition, the latest title Crusaders of Light delivers an authentic PC-quality MMORPG experience for mobile phones and tablets, within a stunning and open 3D fantasy world filled with luscious landscapes, treacherous dungeons, and coveted loot. The game is now in soft launch in limited countries while the international launch is coming soon over the summer.

Fourth Quarter 2016 Financial Results

• Net revenues for the fourth quarter of 2016 were RMB12,099.0 million (US$1,742.6 million), compared to RMB9,211.6 million and RMB7,903.0 million for the preceding quarter and the fourth quarter of 2015, respectively.
• Non-GAAP[1] basic and diluted earnings per ADS were US$4.34 and US$4.30, respectively, for the fourth quarter of 2016, compared to non-GAAP basic and diluted earnings per ADS of US$3.31 and US$3.29, respectively, for the preceding quarter, and non-GAAP basic and diluted earnings per ADS of US$2.58 and US$2.56, respectively, for the fourth quarter of 2015.

"We achieved growth across our business in 2016 as we continued to introduce internet content to entertain and inspire our community, growing our total net revenues by 67.4% for the year and 53.1% for the fourth quarter, compared to the same quarter of 2015," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Led by mobile games, we saw year-over-year net revenue increases in the fourth quarter of 62.8% from online games, 9.2% from advertising services, and 38.2% from our e-mail, e-commerce and others segment."

"With more than 40 new mobile titles in 2016, we have introduced a number of chart toppers to China's thriving mobile market. In the fourth quarter, our self-developed mobile games Onmyoji, Tianxia III mobile and OverOcean, as well as HIT, a stunning new licensed ARPG, delivered outstanding performances. In particular, Onmyoji was named one of the top 10 outstanding games of 2016 in China's iOS app store. To leverage this game's early success, we began our international release of Onmyoji in Southeast Asia in December, with plans to roll out this game in Japan, Canada, Europe and the United States later this year. The Westward Journey Online and Fantasy Westward Journey mobile games and the mobile version of New Ghost also continued their popularity in the fourth quarter."

"There remains massive opportunity within the mobile market, and we will continue to build our formidable and diverse pipeline. Currently, our mobile portfolio stands strong with more than 100 games, and we plan to add more mobile versions of our legacy titles and new self-developed and licensed mobile games to further this momentum. Recently, we released new mobile games including Demon Seals mobile and Heroes of Tang Dynasty mobile, both of which were well received. Other new mobile titles planned for near-term introduction include Westward Journey: Rage, an exciting ARPG edition to celebrate the 15th anniversary of this title, and Treasure Hunter, an innovative RPG."

"Our PC-client games performed steadily in the fourth quarter with a strong showing from our flagship game Fantasy Westward Journey Online. We released several new expansion packs during the fourth quarter to satisfy our PC-client game players, including Kung Fu Master II, Demon Seals, Tianxia III, Heroes of Tang Dynasty Zero and New Ghost. New expansion packs for Fantasy Westward Journey Online and Revelation were also recently released, and we expect to introduce a new expansion pack for New Westward Journey Online II in the coming months."

"Blizzard Entertainment's Overwatch®, World of Warcraft®, with its latest expansion pack Legion™, and Hearthstone® with its latest expansion pack Mean Streets of Gadgetzan™ also remained popular among loyal players in China eager for new content, as well as brought in new players. Overwatch also established a new sales record in the category of buy-to-play PC-client games in mainland China, with more than 5 million copies sold by the end of December since its late May release. Furthermore, we are currently working to bring to Chinese players both PC and mobile versions of the highly anticipated, globally acclaimed game, Minecraft."

"As data consumption mediums evolve, the internet, especially the mobile internet, is becoming the primary advertising platform in China. This trend supports the steady growth of our advertising services business. Driven primarily by our Mobile News App, as well as high-profile events such as the 2016 NetEase Annual Economist Summit and the 2016 NetEase Annual Attitude Award Ceremony, our top performing advertising verticals in the fourth quarter were automobile, internet services and financial services. Additionally, our e-commerce business continues to thrive with both Kaola.com and Yanxuan maintaining healthy growth in the fourth quarter."

"Our focus on innovation and quality has served us well, enabling NetEase to create significant value for each of our major constituencies: our players, our partners and our shareholders. In 2016, we brought best-in-class products and services to our community and continued to grow our business. As we move through 2017 we will look toward the future, designing products and services that address fluid market dynamics, enabling continued growth and value creation," Mr. Ding concluded.

BEIJING, Feb. 16, 2017 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, announced its unaudited financial results for the fiscal year ended December 31, 2016.

Net revenues for 2016 were RMB38.2 billion (US$5.5 billion), up 67.4% from the previous year. Gross profit for 2016 was RMB21.7 billion (US$3.1 billion), up 61.6% from the previous year. Net revenues from online games were RMB28.0 billion (US$4.0 billion), up 61.6% from the previous year.

The Company's other businesses also grew significantly. Net revenues from advertising services were RMB2.2 billion (US$310.0 million) for 2016, up 20.3% year-over-year. Net revenues from e-mail, e-commerce and others were RMB8.0 billion (US$1.2 billion) for 2016, up 117.5% year-over-year.

In 2016, the Company launched 40 new mobile games, with many of them performing well at home and abroad. Specifically, Onmyoji was named one of the top 10 outstanding games in 2016 in China's iOS app store, and was ranked by Facebook as "Top 3 Best Mobile Game in 2016" worldwide. To leverage this game's early success, NetEase released Onmyoji in Southeast Asia in December 2016, with plans to roll out this game in Japan, Canada, Europe and the United States later this year.

"We achieved strong growth across our business in 2016 as we continued to introduce premium game content to entertain and inspire our community," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "There remains massive opportunity within the mobile market, and we will continue to build our formidable and diverse pipeline. Currently, our mobile portfolio has more than 100 games, and we plan to add additional mobile versions of our legacy titles and new self-developed and licensed mobile games to further this momentum."

NetEase also developed its first VR title Twilight Pioneers for Daydream, Google's VR platform. The game quickly topped the Google VR games download rank, and won the "Experts' Choice Award" at the Asia VR/AR Summit.

In addition, other NetEase mobile games such as Tianxia III mobile, Great Voyage, Demon Seals mobile, Heroes of Tang Dynasty mobile, as well as HIT, the new licensed ARPG, all achieved good results.

In addition to new games, NetEase's flagship games also continued to perform well. According to App Annie, Fantasy Westward Journey topped the global iOS mobile game sales ranking in June 2016. This was the first time a Chinese company achieved this.

Thanks to its robust game pipeline and the cooperation with leading game companies worldwide such as Blizzard Entertainment and Mojang AB, NetEase achieved another year of excellent operational and financial results, winning the top developer award on App Store and Google Play. According to App Annie, in October 2016, NetEase was the highest grossing developer on both the App Store and Google Play worldwide.

"In 2016, we brought best-in-class products and services to our community. As we move through 2017 we will look toward the future, designing products and services that address fluid market dynamics, enabling continued growth and value creation," Mr. Ding concluded.

GUANGZHOU, China, Nov. 11, 2016 /PRNewswire/ -- NetEase, Inc. (NTES) debuted its virtual reality game Twilight Pioneers at Google I/O 2016. As one of the first games to commit to Daydream, Google's platform for high quality mobile VR built on top of Android, Twilight Pioneers was released on November 10.

Twilight Pioneers is the first VR title developed and to be published by NetEase Games, featuring the company's trademark high quality graphics and addictive gameplay as a result of years of development experience in the world's largest gaming market. More importantly, the game demonstrates the awesome potential of ARPG in a VR setting, and promises an unforgettable gaming experience that will impress the most sophisticated players.

In Twilight Pioneers, players will experience a magical Eastern fantasy with vividly detailed visual and captivating storytelling. The Dark Lord has corrupted the world, but hope remains as an alliance of brave individuals has emerged to resist the evil forces occupying the land. Players are the Chosen Ones, who are called upon to draw their swords to overcome the darkness and restore the land to its former glory.

As a VR game, Twilight Pioneers runs on a unique mode of gameplay interaction. Players create physical movements to trigger events, push along storyline and make their way to boss fights. In combat, players use the Daydream Controller to control weapons and deliver attacks. In order to ensure that players have a comfortable VR experience, the company devised technical solutions: 1) the use of technology called Dynamic View Adjust to make players act and move more comfortably; 2) reduce the color difference to allow players to focus more easily.

Commenting on the company's first VR achievement, Chief Executive Officer and Director of NetEase William Ding said, "Leveraging our track record in game development and innovation, we are confident of delivering the superior VR gaming experience to players in China and around the world."

Third Quarter 2016 Financial Results

• Net revenues for the third quarter of 2016 were RMB9,211.6 million (US$1,381.4 million), compared to RMB8,952.8 million and RMB6,671.8 million for the preceding quarter and the third quarter of 2015, respectively.
•  Non-GAAP basic and diluted earnings per ADS were US$3.45 and US$3.42, respectively, for the third quarter of 2016, compared to non-GAAP basic

"We maintained steady growth across each of our primary business lines in the third quarter with a continued focus on providing first-rate games and products to the expanding online market, both domestically and abroad," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Led by our online game services segment, our total net revenues increased 38.1% year-over-year with growth of 26.0% in online games services, 23.8% in advertising services, and 107.2% in our e-mail, e-commerce and others segment."

"Ingenuity, quality and diversification have provided the cornerstones for our competitive edge. As the internet technology industry expands, we will keep pushing the boundaries with new and improved products. Our latest endeavors for our online game services include enhancing interactive communications among our mobile users, establishing virtual and augmented reality interfaces, as well as exploring other innovative gameplay options that offer exciting advances in how players experience and connect with our games."

"There remains extensive opportunity in the thriving mobile game industry where we continue to introduce chart-topping games. During the third quarter we released a number of new games to add to our mobile portfolio that spans over 100 titles. Our latest mobile 3D game Onmyoji was an instant success, surpassing our expectations. Onmyoji quickly became one of the top-grossing games in China's iOS app store for both the iPhone and iPad following its release in early September. Our Fantasy Westward Journey and Westward Journey Online mobile games and the mobile version of New Ghost also remained popular in the third quarter. Additionally, we launched mobile games such as Tianxia III mobile, OverOcean and Audition Mobile in the third quarter, followed by HIT, a stunning new ARPG, in October, and are planning to bring our mobile players exciting, original titles in the near-term with games such as Heroes of Tang Dynasty Mobile, Demon Seals Mobile and Land of Glory."

"Our classic PC-client games also maintained a steady presence in the third quarter with the launch of new expansion packs for games including Fantasy Westward Journey Online (formerly named Fantasy Westward Journey II), New Westward Journey Online II, New Westward Journey Online III, Heroes of Tang Dynasty Zero, Revelation and New Ghost. New expansion packs for Kung Fu Master II and Demon Seals were also recently released. In the coming months we plan to launch new expansion packs for games including Tianxia III and Heroes of Tang Dynasty Zero."

"Blizzard Entertainment's Overwatch® and Hearthstone®: Heroes of Warcraft™ with its new adventure: One Night in Karazhan™, continued to gain favor among Chinese audiences in the third quarter, demonstrating the universal strength of these world renowned brands. Similarly, the latest expansion pack for Blizzard's World of Warcraft®, Legion™, has garnered considerable attention from players in China, surpassing our expectations since its September 1 release in mainland China."

"Supported by our industry leading Mobile News App and diversified mobile products, as well as high profile events such as the 2016 Summer Olympics, we are creating attractive options for our advertising partners. In the third quarter, our advertising services revenues grew sequentially and year-over-year with the automobile, internet services and telecommunications sectors as our top performing verticals. Additionally, our

Kaola.com

e-commerce offering continues to grow at a healthy pace. While our primary focus is on direct merchandise sales, we also look forward to maximizing the value of complementary services that extend the reach of this platform."

"We believe that there remain significant growth opportunities for NetEase. By utilizing the strength of our experience as industry veterans and our strong R&D capabilities, our products and services continue to evolve and help shape the market. With an eye toward innovation, we build this value across our businesses not only for our players, but for all of our customers, partners and investors," Mr. Ding concluded.

BEIJING, Oct. 3, 2016 /PRNewswire/ -- NetEase, Inc. (NTES) ("NetEase" or the "Company"), one of China's leading internet and online game services providers, today announced that NetEase Media, Inc. ("NetEase Media"), a Cayman Islands company which is currently wholly owned by the Company and operates the Company's internet media business, submitted a draft registration statement on Form F-1 on a confidential basis to the U.S. Securities and Exchange Commission ("SEC") for a possible initial public offering (the "Proposed IPO").

The number of shares proposed to be offered and sold and the dollar amount proposed to be raised in the Proposed IPO have not yet been determined. The Proposed IPO is expected to commence after the SEC completes its review process, subject to market and other conditions. However, there can be no assurances as to the timing or completion of the Proposed IPO.

This press release is being made pursuant to and in accordance with Rule 135 under the U.S. Securities Act of 1933, as amended, and does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

SHANGHAI, Sept. 27, 2016 /PRNewswire/ -- Blizzard Entertainment, Inc. and NetEase, Inc. (NTES) jointly announced the extension of their collaboration in mainland China to January 2020. The renewed operation agreement includes Blizzard's World of Warcraft®, StarCraft® II, Diablo® III, Hearthstone®, Heroes of the Storm®, and Overwatch®, as well as new content for these games during the agreement period.

The relationship between Blizzard and NetEase is now entering its ninth year. The two companies began working together in 2008 with a license agreement to bring Blizzard's StarCraft II and Battle.net® platform into China.

Since then the two companies have brought a series of epic games to Chinese players, from StarCraft II to Blizzard's popular FPS game Overwatch, and most recently the sixth expansion for World of Warcraft, Legion™. Over the years, Blizzard and NetEase have worked hard toward the goal of launching Blizzard games in China simultaneously with Blizzard's launches in other regions--a goal the companies have been proud to achieve in recent years, with immensely positive feedback from Chinese players.

The renewal of the operation agreement announced today reflects the achievements of the past eight years and further solidifies the existing collaboration between the two companies.

"NetEase has been a great partner for many years now, and we've always appreciated their hard work and dedication to providing the best experiences for our players in China," said Mike Morhaime, CEO and cofounder of Blizzard Entertainment. "We look forward to continuing to work closely with them on delivering even more great content in the years ahead."

"Our partnership with Blizzard has been great these past eight years, and we are very pleased to continue our close collaboration," said William Ding, CEO of NetEase. "We both pride ourselves with a commitment to high quality and value for our players, and that has served as a foundation for our strong alliance and positions us well for continued success."

Second Quarter 2016 Financial Results

• Net revenues for the second quarter of 2016 were RMB8,952.8 million (US$1,347.1 million), compared to RMB7,915.4 million and RMB4,567.9 million for the preceding quarter and the second quarter of 2015, respectively.
• Non-GAAP basic and diluted earnings per ADS were US$3.70 and US$3.67, respectively, for the second quarter of 2016, compared to non-GAAP basic and diluted earnings per ADS of US$3.05 and US$3.03, respectively, in the preceding quarter, and non-GAAP basic and diluted earnings per ADS of US$1.82 and US$1.81, respectively, for the second quarter of 2015.

"Our outstanding second quarter results reflect NetEase's leadership in China's dynamic online games industry where we continue to introduce premium game content, innovative technology and effective marketing strategies," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Our total second quarter net revenues grew 96.0% compared with the second quarter of 2015, with each business segment posting impressive year-over-year improvement, including increases of 76.0% in online game services, 24.2% in advertising services, and 310.6% in our e-mail, e-commerce and others business."

"As we focus on delivering the highest quality games and unmatched user experiences, we also move the industry forward by exploring new technologies such as virtual reality and augmented reality and developing content for a variety of genres."

"Our business and the overall online games industry are being driven by the popularity and demand for mobile games. We are well positioned to exploit this trend with a mobile game portfolio that now includes more than 100 titles. In the second quarter, we launched the mobile version of New Ghost, which ranked as a top 10 grossing title on China's iOS app store, and Fantasy Westward Journey: Warriors and Raven, Korea's top ARPG, also quickly attracted large audiences following their introductions in the second quarter. Two of our best-selling mobile games, the Fantasy Westward Journey and Westward Journey mobile games, maintained their popularity on China's iOS app store throughout the second quarter. Our other mobile games, such as Invincible and Kai-ri-sei Million Arthur, also made solid contributions to our second quarter year-over-year growth."

"In addition to the launch of the well-received 3D Tianxia III mobile on July 29, our new mobile game releases planned for the next several months include the 3D RPG Onmyoji, Audition Mobile, the mobile version of a popular dancing game, and HIT, a breathtaking ARPG."

"We launched several new expansion packs and new versions for a number of our highly popular PC-client games in the second quarter including New Ghost, Tianxia III, Demon Seals, Kung Fu Master II and Revelation, which gained players' attention. New expansion packs for Fantasy Westward Journey II, New Westward Journey Online II, New Westward Journey Online III and Heroes of Tang Dynasty Zero were also released more recently. The new expansion packs for Revelation and New Ghost will be released on August 18 and August 19, respectively. We also look forward to preparing for the first closed beta testing of our real-time action tactic thriller War Rage. I am also pleased with the ongoing development of the Chinese version of Minecraft. Our cooperation with Microsoft and Mojang AB, the creator of Minecraft, reflects NetEase's deep understanding of the Chinese market and ability to successfully launch the most renowned PC-client and mobile games."

"On May 24 we brought Blizzard Entertainment's highly anticipated team-based first-person shooter game, Overwatch®, to players in China in conjunction with its global launch. Following the release, Overwatch has received unprecedented attention and praise from the online players' community. It surpassed the sales record established last year by Blizzard Entertainment's Diablo III®: Reaper of Souls™ in the category of buy-to-play PC-client games in China, with nearly 3 million copies sold by the end of June. In addition, Blizzard Entertainment's Hearthstone®: Heroes of Warcraft™ achieved new records for revenues and the number of active players in the second quarter, following the April release of its third expansion pack, Whisper of the Old Gods™."

"Led by the automobile, internet services and real estate sectors, advertising revenue achieved another quarter of solid growth. We continued to promote our Mobile News App live streaming services and further invested in high quality content and simultaneously, we launched our NetEase Media Platform to broaden our Professionally Generated Content (PGC) platform, all of which we hope will attract additional advertisers and enlarge the user base. In addition, our cross-border e-commerce platform, Kaola.com, sustained its strong revenue and gross profit margin growth through the second quarter and is creating exciting strategic partnership opportunities."

"China is now the world's largest online game market, providing NetEase an opportunity to further expand its loyal customer base, develop new strategic business partnerships and enhance its industry leadership position. Our progress in the first half of 2016 clearly demonstrates that we have the resources and commitment to continue the exceptional growth and success of each of our business segments," Mr. Ding concluded.

BEIJING, Aug. 9, 2016 /PRNewswire/ -- NetEase, Inc. (NTES) ("NetEase" or the "Company"), one of China's leading internet and online game services providers, announced its participation in a recent $80 million Series B funding of NextVR, an emerging leader in live virtual reality broadcast technology.

"This early stage strategic investment in NextVR reflects our commitment to the development of cutting-edge technologies for virtual reality (VR)," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "We are true believers in live VR experiences and have great confidence in NextVR's ability to lead in this field. We look forward to giving consumers an entirely new way to experience live events, as well as exploring possible synergies between our online games and media business and NextVR."

The Series B round allows NextVR to expand its virtual reality platform and global operations. NextVR recently announced a partnership with Live Nation to deliver hundreds of A-list performances in VR to fans across the world. NextVR has also broadcasted major sporting events live in VR, including the U.S. Open and Masters golf tournaments, the Kentucky Derby, and the International Champions Cup soccer competition. In addition to their live broadcasts, the company recently streamed MLB's annual Home Run Derby in VOD.

In addition to NetEase, investors in the Series B round include CITIC Guoan Information Industry Co. Ltd., China Media Capital, SoftBank Group, Founder H Fund, VMS Investments Group Limited, China Assets, and Spectrum 28. All investors in the Series A round, including Formation Group, Time Warner Investments, Comcast Ventures, Stephen Ross's RSE Ventures, Mandalay Entertainment's CEO Peter Guber, The Madison Square Garden Co., and dick clark productions also participated in the Series B round.

Fourth Quarter 2015 Financial Results

• Net revenues for the fourth quarter of 2015 were RMB7,903.0 million (US$1,220.0 million), compared to RMB6,671.8 million and RMB3,463.0 million for the preceding quarter and the fourth quarter of 2014, respectively.
• Non-GAAP basic and diluted earnings per ADS were US$2.77 and US$2.74, respectively, for the fourth quarter of 2015, compared to non-GAAP basic and diluted earnings per ADS of US$2.41 and US$2.39, respectively, in the preceding quarter, and non-GAAP basic and diluted earnings per ADS of US$1.65 and US$1.64, respectively, for the fourth quarter of 2014.

"2015 marked a year of tremendous growth fueled by all-around achievement for our company," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Our total net revenues grew 94.7% for the year and 128.2% for the fourth quarter compared to the same quarter of fiscal year 2014, with expanding contributions from each of our three business segments. We saw year-over-year net revenue increases in the fourth quarter of 103.2% from online games, 68.1% from advertising services and 355.5% from e-mail, e-commerce and others."

"PC-client games remain vital to China's online game industry, while mobile games are driving rapid new growth. The steps we have taken over the last year to enhance our mobile capabilities have secured our position in the mobile arena. Our high-profile mobile portfolio now consists of over 80 diverse games, including our Fantasy Westward Journey and Westward Journey Online mobile games, which maintained their positions as the top two grossing games in China's iOS app store in the fourth quarter. Our other mobile games, including licensed game Kai-ri-sei Million Arthur as well as a number of other new and exciting games such as Invincible, the Kung Fu Panda mobile game and Chrono Blade also demonstrated strong performances during the fourth quarter."

"Offering thrilling gaming experiences to our existing and growing community of PC-client players remains an integral part of our online games strategy. Our self-developed 3D oriental fantasy MMORPG Revelation maintained strong traction in the fourth quarter, and in November we launched open beta testing for our 3D warfare MMORPG Hegemon-King of Western Chu. During the fourth quarter we also released new expansion packs for PC-client games including Tianxia III, Heroes of Tang Dynasty Zero and Kung Fu Master II, and launched a promotional campaign for Demon Seals. In addition to our successful and growing portfolio of self-developed online games, Blizzard Entertainment's Hearthstone®: Heroes of Warcraft™ continued to perform well and attract new players."

"We are taking a number of steps to broaden our game offerings with exciting new game-play for both our PC-clients and mobile users. We recently released a trailer for War Rage, a real-time action tactical game for PC-clients, which we expect to launch in 2016. We also plan to enhance the popularity of our established PC-client titles with upcoming expansion packs for games including New Westward Journey Online II, Tianxia III, Heroes of Tang Dynasty Zero, Demon Seals and Kung Fu Master II in the first half of 2016. We are simultaneously expanding our robust mobile games pipeline with gripping new games. For example, in January we released new mobile games such as Kung Fu Panda 3 and The X-World, which have quickly gained traction with players. In addition, a number of other compelling new games including Raven, Fantasy Westward Journey: Warriors, the mobile version of New Ghost, and a series of new game titles based on the best-selling novels by Mr. Gu Long, a famous wuxia fiction writer, are scheduled to premiere in the coming months."

"Business is thriving across our game and Internet service offerings. In 2015 our advertising services revenues continued to grow. Supported by the popularity of our Mobile News App and NetEase-hosted, high profile events such as our NetEase Annual Economist Conference, our overall brand was further strengthened. The automobile, Internet services and telecommunication services sectors were our top performing advertising verticals in the fourth quarter. Our e-commerce platforms including Kaola.com also continue to grow at a swift pace, and we plan to keep expanding this business where we see considerable growth opportunity."

"We returned over $247.0 million to our investors in 2015 through share repurchases and our regular dividend program. In 2016 we believe we are well-positioned to continue to create and return value to our shareholders through diligently building and growing our business with a focus on providing the highest quality PC-client and mobile games, Internet products and e-commerce services," Mr. Ding concluded.

BEIJING, September 1, 2015 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced that its board of directors has approved a new share repurchase program of up to US$500 million of the company's outstanding American Depositary Shares (ADSs) for a period not to exceed 12 months. NetEase plans to fund repurchases made under this program from available working capital.

Under the terms of the approved program, NetEase may repurchase its issued and outstanding ADSs in open-market transactions on the NASDAQ Global Select Market. The timing and dollar amount of repurchase transactions will be subject to U.S. Securities and Exchange Commission (SEC) Rule 10b-18 requirements. It is also expected that such repurchases will be effected pursuant to a plan in conformity with SEC Rule 10b5-1.

The extent to which NetEase repurchases its ADSs will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined by NetEase's management team. The repurchase program may be suspended or discontinued at any time.

BRISBANE, Calif.--(BUSINESS WIRE)--

NetEase, Inc. (NTES) today announced the release of its first mobile game for the West, Speedy Ninja. Starting today, iOS and Android users can embark on the fastest, most perilous run of their lives through bamboo forests and the high skies run by mystical dragons. Download the game for free on the App Store:https://itunes.apple.com/ca/app/speedy-ninja/id997529786?mt=8, and Google Play: https://play.google.com/store/apps/details?id=com.netease_na.nmd2&hl=en.

See Speedy Ninja in action in the launch trailer: https://www.youtube.com/watch?v=TV26z26Hcsc

Speedy Ninja puts a unique spin on the endless runner genre with an Asian-inspired art style combined with character customization, combat, and online competitive mechanics. The fast, acrobatic adventure features a robust leaderboard players can climb by completing daily missions. The colorful cast of characters, customizable battle gear, and mythical monsters transcend the classic endless runner model to create an imaginative, strategic environment.

�The launch of Speedy Ninja is an incredible milestone for NetEase, delivering on our promise to serve the West with our first mobile game offering,� said General Manager of NetEase North America, David Ting. �By adapting a successful Asian title for Western audiences from the ground up, Speedy Ninja showcases NetEase�s global appeal. I am confident that players will love the game.�

Speedy Ninja will be available for demo at PAX Prime in the exhibit hall North Lobby and the Sheraton Seattle Hotel Willow A Lounge.

BRISBANE, Calif.--(BUSINESS WIRE)--

NetEase, Inc. (NASDAQ:NTES) today revealed a pipeline of new mobile game titles heading into closed beta testing, expanding on the company�s lineup of games for iPhone, iPad, iPod touch, and Android for potential release in western markets. Among those, action role-playing game Eternal Arena leads the schedule with a closed beta program starting this week, with the action role-playing game Tome of the Sun and strategy role-playing game March of Heroesopening pre-registration for its upcoming closed beta programs. To register for these programs, visit https://prereg.netease-na.com/.

"With our North American debut title Speedy Ninja due out very soon, evaluation is well underway for the next crop of mobile games with the best market potential to add to our global games portfolio," said David Ting, General Manager of NetEase North America. "While these next games might lean more mid-to-hardcore, it'll allow us to round out our knowledge and expertise in publishing westward, which will further define how we build out our business in the next several years."

NetEase will be showing Eternal Arena and Tome of the Sun during PAX Prime at the exhibit hall North Lobby and the Sheraton Seattle Hotel Willow A Lounge. Members of the press who would like to schedule a demo may submit their request by e-mailing netease@triplepointpr.com.

BRISBANE, Calif.--(BUSINESS WIRE)--

NetEase, Inc. (NTES) today announced a free concert during PAX Prime 2015 to celebrate the launch of its first mobile game in the West, Speedy Ninja. The concert is headlined by world-renowned EDM DJ Steve Aoki and is only open to attendees with a valid PAX pass. The concert takes place on Friday, August 28 at the EMP Museum in Seattle. Doors open at 8 PM PDT.""Anybody who knows me understands I�m passionate about dance music, so I was stoked when NetEase offered me the opportunity to perform a free concert for my fans, said Steve Aoki.  "I'm a huge gamer myself and was immediately pulled in by Speedy Ninja�s art style and fast-paced gameplay. It�s cool to help this company celebrate the launch of their first game.

"Speedy Ninja launches globally on August 27, 2015, for iPad, iPhone, iPod Touch and Android devices, and is currently available in Canada, Australia, and New Zealand. Speedy Ninja puts a unique spin on the endless runner genre with a stunning Asian calligraphy art style combined with online competitive mechanics. The fast, acrobatic adventure through bamboo forests and the high skies run by dragons features a robust leaderboard players can climb by completing daily missions. The colorful cast of characters, customizable battle gear, and mythical monsters transcend the reflex-testing game into a deeper, strategic challenge.Speedy Ninja will be available as a free download with optional in-app purchases.

See Speedy Ninja in action in the preview trailer:https://www.youtube.com/watch?v=2-Ui6VIp3y4

"We look forward to launching our first game in the West as we continue our globalization effort,� states David Ting, General Manager of NetEase North America. �PAX Prime has grown to become a must-attend event for gamers, making it the ideal place for us to make a big splash with our first game. Aoki�s performance will hopefully mark the beginning of a fun-filled relationship between NetEase and gamers throughout the West."

To further celebrate the launch ofSpeedy Ninja, NetEase will be giving away (2) four-day passes to PAX Prime and (2) VIP passes for guaranteed entry to the Steve Aoki concert. To learn more about the sweepstakes, consumers can visithttps://www.facebook.com/NetEaseOfficial/app_211922635540356*. PAX Prime attendees can learn more about Steve Aoki�s concert presented by NetEase athttp://speedyninja.netease-na.com/#!/news/steve-aoki.

NetEase will be showing off Speedy Ninja and other yet-to-be-released games during the show at the exhibit hall North Lobby and the Sheraton Seattle Hotel Willow A Lounge. Members of the press who would like to schedule a demo may submit their request by e-mailing netease@triplepointpr.com.

Second Quarter 2015 Financial Results

• Total revenues for the second quarter of 2015 were RMB4,833.1 million (US$779.5 million), compared to RMB3,885.2 million and RMB2,951.9 million for the preceding quarter and the second quarter of 2014, respectively.
• Non-GAAP basic and diluted earnings per ADS were US$1.95 and US$1.94, respectively, for the second quarter of 2015, compared to non-GAAP basic and diluted earnings per ADS of US$1.75 and US$1.74, respectively, in the preceding quarter, and US$1.57 each for the second quarter of 2014.

"The strong second quarter 2015 results reflect our recent successes on both PC and mobile platforms," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Each of our three business segments achieved healthy revenue gains sequentially and year-over-year, led by a 64.8% increase in online games revenues, a 22.8% increase in advertising services revenues, and a 123.3% increase in e-mail, e-commerce and others revenues, compared with the same quarter in 2014."

"Mobile games are driving additional growth both for our company and China's online games industry as a whole. With more than 30 high quality mobile games in our portfolio, we have offerings that appeal to a wide audience, and we intend to continue to build on this success. Our Fantasy Westward Journey mobile game reached a record peak concurrent user level of more than 2.0 million in May and has been ranked as the top grossing app in the iOS China app store since its launch in March of this year. It also became the only mobile game in China with its own customized download page in the iOS app store in July. For our PC-client games, we were very pleased with the favorable feedback for Revelation, our 3D oriental fantasy MMORPG, and our 2.5D MMORPG Demon Seals, which was launched in the second quarter. Other new releases in the second quarter included expansion packs for New Westward Journey Online II and Ghost II. During the second quarter, we also conducted further beta testing for our 3D warfare MMORPG, Hegemon-King of Western Chu."

"Our licensed games also fared well in the second quarter. We were very excited to launch open beta testing for Blizzard Entertainment's Diablo III^�: Reaper of Souls^� inChina in April, through the joint effort of Blizzard and NetEase and with the incredible support of passionate Chinese players. Additionally, the April launch of the mobile phone version of Blizzard Entertainment's Hearthstone^�: Heroes of Warcraft^� helped drive that game's number of active users to a new high. Lastly, Heroes of the Storm�, Blizzard's brand-new free-to-play online team brawler, began open beta testing in late May followed by the game's official launch in early June, which had a promising performance. We continue to work closely with Blizzard to introduce exciting new content to China and are thrilled to have licensed Overwatch^�, Blizzard's first-ever first-person shooter game."

"Our strong research and development program has produced a diverse pipeline of PC-client and mobile games. In July, we released a new expansion pack for our popular title Tianxia III and are targeting a number of new expansion packs later in the third quarter for our self-developed games, including Fantasy Westward Journey II. Our mobile portfolio is also expanding with the release of several new titles in July, including Fairy Tales: The World of the Brave, a licensed cartoon-style side-scrolling mobile game, which was well received by our users. In the coming months, we plan to release more mobile games based on our acclaimed self-developed franchises, including the Westward Journey Online mobile game, The X-World, an action-packed mobile ARPG game from the Tianxia universe, and Fantasy Westward Journey: Warriors, an exciting mobile action adventure game."

"In addition, our strategy to expand our reach to international markets is underway, and we are making early stage progress. We plan to use a number of channels to reach a broad market, including independent sales, cross-country partnerships and licensing. We expect to launch Speedy Ninja, our first mobile game title in North America, in late August, and have already licensed several of our mobile games in theSoutheast Asia market."

"Our advertising services business continued to perform well in the second quarter, driven by overall market demand and monetization efforts for our Mobile News App. The top performing advertising verticals in the second quarter were the automobile, Internet services, and food and beverage sectors. Furthermore, our cross-border e-commerce platform, Kaola.com, experienced rapid growth in the second quarter and continues to gain user traction."

"Our ability to grow with the mobile market and adapt our technology and creative resources to meet that demand supports our strategy to expand and diversify our portfolio. We will continue to focus on creating innovative new games, enhancing the synergy between PC-client and mobile games and expanding our loyal user base. Our goal is to achieve balanced growth in all of our businesses by delivering the highest quality products and services," Mr. Ding concluded.

SAN FRANCISCO--(BUSINESS WIRE)--

NetEase, Inc. (NTES) today announced the formation of the NetEase Success Fund, a new financing option for mobile game developers that offers an alternative to the traditional publishing model. The new funding initiative provides up to $500,000 for each independent developer accepted into the program to fund marketing and advertising needs for their mobile game. This program is designed to empower developers to retain the rights, creative control, and full ownership of their products.

Unlike typical publisher deals, the title-based NetEase Success Fund is a revenue sharing program in which NetEase will only receive a pre-defined set dollar amount as repayment. Once the revenue share cap is reached, the developer will have no additional financial obligations to NetEase.

“There are so many developers with games that have great potential, but are constrained by rising user acquisition costs,” said Ryan DeSanto, Director of Business Development at NetEase North America, who is managing the fund. “Our goal is to create an alternative to the traditional mobile game publishing model, where developers can gain access to the resources necessary to scale their audience without giving up control of their business.”

“Not only are we committed to bringing NetEase’s games to a Western audience, but also to becoming an active member of the global game developer community,” stated David Ting, General Manager of NetEase North America. “The NetEase Success Fund gives us the opportunity to expand our reach in the mobile space and help more developers bring fun experiences to gamers.”

NetEase is one of the largest internet technology companies in the world by market capitalization. NetEase currently holds the #1 top grossing position on the China App Store with the mobile version of Fantasy Westward Journey, boasting more than 20 million downloads and a record peak concurrent user count of two million after its launch in March 2015. NetEase recently opened its first overseas office in North America, and will be publishing its first mobile game, Speedy Ninja,for Western markets in the Fall of 2015. In addition to game development and publishing capabilities, NetEase now offers developers third party publishing options including licensing for the Chinese market and funding for independent projects.

SHANGHAI, June 27, 2015 /PRNewswire/ -- Gamers across China -- prepare to join the fight for the future! Blizzard Entertainment, Inc. and NetEase, Inc. today announced a three-year agreement to license Blizzard Entertainment's Overwatch^�, a supercharged first-person shooter featuring an amazing cast of heroes and set in an all-new Blizzard game universe, to a NetEase, Inc. affiliate in mainland China. For more information and news about Overwatch, players can visit the game's newly launched official Chinese website, www.playoverwatch.cn.

Revealed at BlizzCon last November, Overwatch takes place in a technologically advanced, highly stylized future earth. In a time of global crisis, an international task force of soldiers, scientists, adventurers, and oddities known as Overwatch had come together to restore peace to a war-torn world. After many years, the group's influence waned, and it was eventually disbanded. Overwatch might be gone now . . . but the world still needs heroes.

With an emphasis on accessibility and pure fun, Overwatch brings Blizzard's signature easy-to-learn, hard-to-master gameplay to the FPS genre. Harnessing the power of their hero of choice, players will join forces in teams of six and battle each other across a range of futuristic global locations, from the hologram-lit streets of London to a bazaar in the shadows of a high-tech Egyptian pyramid. Every battlefield is iconic and built to highlight each character's unique abilities, and fights can shift from streets to rooftops to open skies within the span of a breath.

"With Overwatch, we're putting our own spin on the team-based shooter -- highly accessible, with the depth and action that FPS fans love," said Mike Morhaime, CEO and cofounder of Blizzard Entertainment. "We're looking forward to delivering an awesome experience to Chinese players, and we can't wait to share more about the game and the Overwatch universe in the months ahead."

"We're excited to bring Blizzard's first-ever FPS to players across China, and expand our cooperation with a brand-new franchise," said William Ding, CEO and founder of NetEase, Inc. "We've had great success working with Blizzard to bring their world-class games to Chinese players, and we're thrilled to diversify our portfolio of licensed Blizzard games with this popular genre."

To learn more about Overwatch and follow along with the game's development, visit the official website for the game in China: www.playoverwatch.cn.

BEIJING, May 22, 2015 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, has announced plans to introduce a host of new PC and mobile games. The announcement was made at NetEase's inaugural "5/20 Game Enthusiasts' Day," held on May 20, 2015 in Beijing, China. The event celebrated 15 years of gamers' passion for NetEase games with major highlights from the Company's flagship titles and recent successes on both PC and mobile platforms.

A key component of NetEase's mobile game strategy is a focus on mobile games based on the Company's acclaimed self-developed franchises, such as Fantasy Westward Journey and Tianxia. Since its launch in late March of this year, the Fantasy Westward Journeymobile game has successfully gained the No. 1 top grossing app spot in the iOS China app store and recently reached a new record peak concurrent user count of 2 million. Building further on this success, NetEase announced that it is developing Fantasy Westward Journey: Warriors, an exciting mobile action adventure game, and The X-World, an action-packed mobile ARPG game from the Tianxia universe. NetEase also plans to introduce original mobile games such as a cartoon-style side-scrolling mobile game called Fairy Tales: The World of the Brave and a history-themed mobile game called 100 Heroes.

The Company revealed that a number of licensed mobile games are in the works also, including the highly popular 3D RPG Kai-ri-sei Million Arthur from SQUARE ENIX CO., LTD. and 3D multiplayer ARPG Chronoblade from U.S. game developers nWay. NetEase also intends to bring back the Richman franchise with Richman 9, in partnership with Softstar Entertainment Inc. Moreover, the Company discussed plans to develop several mobile titles based on famous works from other media, such as Kung Fu Panda, to be developed in a strategic partnership with Oriental DreamWorks, Warner Brothers' classic Tom and Jerry, well-known Chinese writer Jingming Guo'sTiny Times novels, and Gu Long's popular series of martial arts novels.

The event moreover featured the Company's forthcoming plans for PC games. Open beta testing of Hegemon-King of Western Chu was announced to commence on May 21, 2015. Two new PC games under development, 3D action MOBA Wildfire and real-time battle action The War, were highlighted for their unique twists on classic game genres. NetEase also declared its intention to publish free, online manga and anime based on NetEase's existing PC game franchises.

"We are thrilled to host this exclusive event for gamers and excited to showcase the major game titles that we have been working on. The game industry in China is thriving, and our strategy to introduce new best-in-class and diverse mobile and PC games continues to delight our growing community of players. By establishing May 20 as 'Game Enthusiasts' Day,' we are providing a forum for celebrating gamers, and we expect this annual conference to become one of the most influential events in China's gaming industry," said Mr. William Ding, Chief Executive Officer and Director of NetEase. 

BEIJING, May 22, 2015 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced that its wholly-owned subsidiary Lede Technology Co., Ltd, ("Lede Technology") has signed a partnership agreement with HNA Group to form a joint venture company ("Joint Venture"), in order to establish an all-new Internet travel company.

In December 2014, the two companies had signed a strategic framework cooperation agreement to become partners in the sectors of Internet travel and travel finance. For the new Joint Venture just announced, Lede Technology will leverage its strong experience and knowledge of Internet technologies to provide the Joint Venture with technical and marketing support, while HNA Group will utilize its operational expertise in the tourism and travel finance sectors to take charge of the Joint Venture's new products and initiatives.

NetEase Vice President and Lede Technology CEO Fang Rui stated, "Internet technologies are rapidly altering and improving the traditional tourism industry. Consumers will be the greatest beneficiaries of this change. Although the development of the online travel industry is already advanced, the service quality, transparency of information, protection of consumer rights, and user experience within the online travel industry could be greatly improved. This Joint Venture will put customers first and foremost and use the strengths of both companies to provide the most efficient and enjoyable travel experience for users."

SAN FRANCISCO, May 21, 2015 /PRNewswire/ -- nWay, a San Francisco-based gaming startup, and leading Chinese online and mobile game service provider NetEase, Inc. (NASDAQ: NTES), today announced an exclusive mobile and online publishing partnership for ChronoBlade, nWay's free-to-play Action RPG that features synchronous multiplayer cooperative and competitive hack-and-slash gameplay. Under the agreement, NetEase, Inc. has full publishing rights of ChronoBlade on mobile platforms in mainland China.

Through the partnership, nWay will tap into NetEase's expertise with localization and marketing to navigate the rapidly growing but complex Chinese mobile gaming market. With mobile gaming revenue in China expected to continue its unprecedented growth in 2015 to $6.1 billion and to surpass the US market in 2016, effective distribution in the Chinese market is increasingly important for Western game developers. "NetEase is the number one company in China for core games on mobile, and we're truly excited to work with them to bringChronoBlade to mobile gamers in China," said Taehoon Kim, CEO of nWay. Further underscoring the need to partner with an established Chinese publisher is China's fragmented mobile market which contains hundreds of app stores and 3^rd party app markets.

The rapid increase in Chinese mobile gaming revenue is largely driven by the growth of hardcore games. Although hardcore gamers only represent a small percentage of China's total paying mobile players, they contribute an estimated 60-70% of China's total mobile gaming revenue. Within the mobile gaming community, there seems to be strong demand for high quality Action RPGs but there are few, if any, that have met the quality expectations that hardcore gamers want and ChronoBlade hopes to capitalize on this unmet need and first-mover advantage. "NetEase has published some of China's top grossing mobile games this year and we're aiming to strengthen our position in the hardcore mobile gaming space with console-quality titles likeChronoBlade, which features a skill-based expressive combat system," said Ethan Wang, VP of NetEase Games. ChronoBlade offers many other key features including real-time multiplayer cooperative and competitive gameplay, and open ended character progression via customizable skill trees and equipment upgrades, features typically found in traditional RPGs. The official Chinese website for ChronoBlade can be found at http://cb.163.com. Further details about closed beta testing and launch timelines will be announced at a later date.

SHANGHAI, May 19, 2015 /PRNewswire/ -- It's time to rally your fellow heroes and let the battles begin! Blizzard Entertainment Inc. and NetEase Inc. today jointly announced that the Nexus portal is wide open to heroes everywhere, as open beta testing for Heroes of the Storm�, its brand-new free-to-play online team brawler for Windows^� PC, is now live in China. Heroes of the Storm brings together a diverse cast of iconic characters from Blizzard's far-flung realms of science fiction and fantasy, including the Warcraft^�, StarCraft^� andDiablo^� universes, to compete in epic, adrenaline-charged battles.  

Players can download the game and start playing immediately�head over to the official Heroes of the Storm website to get started.

"We're thrilled to finally open the Nexus to everyone," said Mike Morhaime, CEO and cofounder of Blizzard Entertainment. "We've built Heroes of the Storm to be very fun and easy to pick up, with lots of variety and strategic depth through the different characters and battlegrounds. We can't wait to see the action unfold as new players join in and take 20 years' worth of Blizzard heroes and villains into battle."

"We're excited to see the all-star lineup from every one of Blizzard's franchises meet up in Heroes of the Storm," said William Ding, CEO and founder of NetEase. "Blizzard has had a huge influence on Chinese players and the local market over the past two decades. The NetEase team is thrilled to bring its fifth Blizzard game series to China, and we will continue to work closely with Blizzard to deliver the best experience possible."

Heroes of the Storm officially launches around the world on June 3 with a starting roster of more than 35 Heroes and 7 dynamic Battlegrounds, each with unique challenges to overcome�and even more Heroes and Battlegrounds are on the way. Players can customize their Heroes with a variety of skins to suit their style, as well as switch between a stable of special mounts that help them cover ground on the battlefield more quickly. The game features gameplay modes for players of every skill level, including "Cooperative", in which players team up against computer-controlled opponents, and "Quick Match", an accessible way to jump in and play others. Experienced players can also join forces against other teams of players in highly competitive, draft-style ranked play.

In addition to the simplified Chinese version, Heroes of the Storm is available fully localized into English, Korean, Latin American Spanish, Brazilian Portuguese, French, German, Italian, Polish, European Spanish, Russian and traditional Chinese.

To celebrate the launch of Heroes of the Storm, Blizzard Entertainment and NetEase will jointly hold a live-streamed prelaunch event on May 31. The event will feature a special celebrity show match, including Warcraft III stars Grubby and Sky, StarCraft superstar Bisu, interviews with members of the Heroes of the Storm development team and other guests from the world of gaming, as well as the kickoff match of Heroes ProLeague Final 16 competitions. The celebration event will be streamed at the official website of Heroes ProLeague - http://gold.163.com/live-stream. Further information will be made available as the event draws closer.

In addition to the China prelaunch event, the Heroes of the Storm global launch celebration will take place in London, UK, on the evening of June 1, and will also feature an epic live stream for players to tune into from around the world. Keep an eye on the official Heroes of the Storm site for further details.

BEIJING, May 20, 2015 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced that Ujia E-commerce Co., Ltd., its wholly-owned subsidiary for e-commerce services ("Ujia"), has signed a framework cooperation agreement (the "Agreement") with Everbright Securities Co., Ltd. ("Everbright"), and HNA Group to form a joint venture company. The joint venture company will primarily focus on Internet crowdfunding and other Internet finance businesses.

Under the Agreement, the registered capital of the joint venture company will be approximately RMB100 million, with RMB30 million contributed by Ujia, RMB40 million contributed by Everbright and RMB30 million contributed by HNA Group. The Agreement still remains subject to internal approval by the parties.

"E-commerce services is rapidly expanding among Chinese users and we are pleased to have formed this partnership with such esteemed companies. Under this joint venture, we plan to bring even more robust e-commerce offerings to our growing community of Internet users," said Mr. William Ding, Chief Executive Officer and Director of NetEase.

First Quarter 2015 Financial Results

• Total revenues for the first quarter of 2015 were RMB3,885.2 million (US$626.8 million), compared to RMB3,683.6 million and RMB2,519.0 million for the preceding quarter and the first quarter of 2014, respectively.
• Non-GAAP basic and diluted earnings per ADS was US$1.76 and US$1.74, respectively, for the first quarter of 2015, compared to non-GAAP basic and diluted earnings per ADS of US$1.72 and US$1.71, respectively, in the preceding quarter, and US$1.46 each for the first quarter of 2014.

"The introduction of new games and content for our community of online PC-client and mobile users drove growth across our business during the first quarter of 2015," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Compared with the same period last year, revenues from our online games business were up 44.0%."

"Mobile games have become a major driving force in China's online game industry, and we believe the high quality and diversity of our mobile offerings are resonating with users. In the first quarter, a growing number of users were particularly captivated by our self-developed mobile games, such as Battle to the West and The World HD, which were launched in the prior quarter. Moreover, our flagship game, Fantasy Westward Journey, continued to gain in popularity, with the mobile version of this game reaching No. 1 in the iOS China app store, and setting a record peak concurrent user count of 1.6 million after its introduction in late March."

"Our online PC-client games also continued to be well received in the first quarter as we introduced new games and content. During the first quarter, users welcomed beta tests for Hegemon-King of Western Chu, our 3D warfare MMORPG. We also saw solid performances from Fantasy Westward Journey II and New Westward Journey Online II."

"Our exciting pipeline planned for 2015 includes a number of new online PC-client and mobile games, as well as new content for our existing games. In April, we commercially launched Demon Seals, a 2.5D MMORPG, as well as expansion packs for New Westward Journey Online II and Ghost II. In addition, we are pleased with the positive feedback from the closed beta testing of Revelation, our 3D oriental fantasy MMORPG, which began in January, and we will launch its open beta testing in the near future. We also continue to work closely with Blizzard Entertainment and have been delighted by the success of the open beta testing for the Chinese version of Diablo III^®: Reaper of Souls^™. That game sold over one million copies within 10 days of its launch in late April, setting the record for the fastest-selling PC game in China. We plan to begin open beta testing for Blizzard's Heroes of the Storm^™ in late May. For mobile games, we now offer over 20 mobile games of various genres, and we plan to deploy more new self-developed and licensed mobile titles in the coming months to build on our positive momentum. Later this year, we will also expand our global footprint with local partners to launch our games in other countries in Asia and North America."

"Turning to our advertising services business, this segment remains strong benefiting from the continued growth of our Mobile News Application and a growing online advertising market in China, with revenue from this segment increasing by 35.9% compared with the same period last year. Automobile, Internet services and food and beverage were the top performing advertising verticals in the first quarter. E-commerce is another area where we see significant growth opportunity. While still in the early stages of operation, our self-operated cross border e-commerce platform, Kaola, has performed well, and we are actively expanding our range of product offerings."

"Mobile games and content continue to be in high demand, further complementing our online PC-client games and services. While we expect to see continued momentum from the mobile market, our strategy will remain focused on diversity, excellence and international expansion to achieve healthy growth across all of our Internet businesses," Mr. Ding concluded.

Fourth Quarter 2014 Financial Results

• 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.
• 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.

"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 Entertainment's 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, Blizzard's 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 China's 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.

BEIJING, January 16, 2015 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced a strategic partnership with Sinotrans Limited (0598.HK) ("Sinotrans"), one of China's largest logistics service providers. The two companies have joined forces to develop a cross-border e-commerce business designed to provide speedy delivery services to Chinese consumers purchasing goods from overseas.

Under the partnership, Sinotrans will be responsible for international shipping logistics for Kaola (www.kaola.com), NetEase's newly launched, self-operated cross-border e-commerce platform. Kaola is currently in the open testing phase for users in China, during which period the platform will selectively offer popular categories of products such as baby products, beauty and personal care products and health foods.

"This partnership is an important part of NetEase's cross-border e-commerce strategy," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Our e-commerce business has continued to grow, and this partnership supports our international expansion goals. By integrating our companies' resources, we are strengthening our supply chain logistics capabilities which ultimately benefits our customers."

Third Quarter 2014 Unaudited Financial Results

• Total revenues for the third quarter of 2014 were RMB3,325.9 million (US$541.9 million), compared to RMB2,951.9 million and RMB2,514.3 million for the preceding quarter and the third quarter of 2013, respectively.
• NetEase reported basic earnings per ADS of US$1.45 and diluted earnings per ADS of US$1.44 for the third quarter of 2014. The Company's basic and diluted earnings per ADS were US$1.50 each for the preceding quarter, and US$1.31 each for the third quarter of 2013.

"The combination of our traditional online games, growing mobile portfolio and expanding portal and e-commerce businesses are driving our growth across China's dynamic online marketplace," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Each of our three business segments grew, with total revenues increasing by 32.3% year-over-year and 12.7% sequentially. Our growth was led by a 16.8% increase in revenues from our online game services, a 60.1% increase in advertising services and increasing contribution from our e-mail, e-commerce and others business, which improved by 252.5% compared with the third quarter of 2013."

"Our third quarter revenues were driven in part by the success of a number of our self-developed games, and our strategy to increase our focus on mobile games is progressing well. We saw standout performances from games including the PC and mobile versions of Fantasy Westward Journey II, as well as our mobile card battle game, Mini Westward Journey. New Westward Journey Online II also delivered a strong performance following the launch of an expansion pack in July and an item-based version in August. For our licensed games, Blizzard Entertainment's Hearthstone^�: Heroes of Warcraft^� ('Hearthstone') performed well, and we rolled out Curse of Naxxramas^�, Blizzard's first solo adventure for this game, in July. We continue to work closely with Blizzard to bring exciting new games to Chinese audiences, and an early test version of Blizzard's free-to-play, online team brawler Heroes of the Storm^�, was launched in China in October. We are also looking forward to the Chinese launch of the fifth expansion for Blizzard's World of Warcraft^�, Warlords of Draenor^�, on November 18, 2014."

"New expansion packs and game play are essential to the longevity of our games to keep our users engaged and broaden our user base. During the third quarter, we launched new expansion packs for New Westward Journey Online III, Ghost II, Heroes of Tang Dynasty II and Heroes of Three Kingdoms. In October we released an expansion pack for Fantasy Westward Journey II and a comprehensive upgrade of The Legend of Tibet, as well as released another expansion pack for New Westward Journey Online II earlier this month. As we look to the remainder of the year, our plans include launching new expansion packs for Tianxia III, Heroes of Tang Dynasty II, and Legend of Fairy."

"As for our newer games, we are building on the successful releases of mobile titles Stay Calm! My Lord! and Dark Blade, which we released in September. In the fourth quarter we plan to release more high-quality mobile game titles and commercially launched our first person shooter game, Crisis 2015. Additionally, we continue to develop our 3-D oriental fantasy MMORPG, Revelation, which has received very positive feedback in its beta testing. Furthermore, we are planning to launch a new MMORPG that will allow players to enjoy an all-new warfare gaming experience. First-round testing for this game will be initiated later this year."

"The mobile market in China is thriving, and YiChat provides an ideal platform for integrating our mobile applications and services. With a focus on our 'Fresh Social Life' strategy, the introduction of exciting new functions has supported our growing YiChat user base and increased activity levels. We expect even more differentiated and innovative communication and social networking functions to be incorporated into YiChat in the subsequent development."

"Our advertising services business is also prospering. The top performing advertising verticals in the third quarter were automobile, food and beverage, and financial services, which were bolstered by additional monetization of our Mobile News Application and the 2014 FIFA World Cup. We are also pleased to see the fast growth of our e-commerce business during the period."

"We will continue to introduce top-quality and easily-adopted products and services to our users. We are also investing in our future with an eye toward expanding our market reach and enhancing our products and services with increased research and development investments. These initiatives position us well for future growth and strengthen our pipeline," Mr. Ding concluded.

Second Quarter 2014 Financial Results

• Total revenues for the second quarter of 2014 were RMB2,951.9 million (US$475.8 million), compared to RMB2,519.0 million and RMB2,413.8 million for the preceding quarter and the second quarter of 2013, respectively
• Earnings per ADS, diluted RMB9.18 vs last years same quarter RMB8.41

"The advancements we are making across our online and mobile games, advertising services and e-commerce businesses support our dynamic growth," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Each of our three business segments grew both sequentially and year-over-year in the second quarter with total revenue increasing by 17.2% sequentially and 22.3% year-over-year. Compared with the second quarter of 2013, revenues from our online games business increased by 13.1%, revenues from advertising services increased by 42.9%, and revenues from our e-mail, e-commerce and others segment increased by 201.5%."

"As users exercise their preference for enhanced gaming experiences, our online games business is growing at a healthy pace, supported by both self-developed and licensed games. In the second quarter, our flagship game Fantasy Westward Journey II and its mobile version continued to enjoy strong popularity, and Mini Westward Journey, our first mobile card battle game, delivered a standout performance. Following the launch of the iPad version in April, Blizzard Entertainment's Hearthstone^®: Heroes of Warcraft™ ('Hearthstone') continued to thrive during the period, and in July we began to roll out Curse of Naxxramas™, the first single-player adventure for this game. We are also working closely with Blizzard Entertainment to bring their free-to-play, online team brawler Heroes of the Storm™ and their award-winning action role-playing game Diablo^® III to audiences in China."

"The introduction of fresh expansion packs for our popular existing content and the release of new and original online games remain an integral part of our growth strategy. In the second quarter, we launched new expansion packs for our self-developed games Ghost II, Tianxia III, Legend of Fairy and Kung Fu Master. Moreover, we plan to launch expansion packs and updates for Fantasy Westward Journey II, New Westward Journey Online II, New Westward Journey Online III, Tianxia III, Heroes of Tang Dynasty II and Heroes of Three Kingdoms later this year. User feedback from small-group testing for Revelation, our 3-D oriental fantasy MMORPG that is currently under development, has been positive, and second-round testing will be initiated for the game later this month. We are on track to launch Revelation and Crisis 2015, our first-person shooter game, by the end of the year."

"The popularity of our complementary mobile offerings continues to grow. In addition to Mini Westward Journey, in the second quarter we released two new licensed mobile games, Ninja Must Die 2 and KONAMI World Soccer Collections. In July, we launched NetEase Farm, a farm business mobile game developed in-house, and we plan to continue to release more titles in the coming months in order to further diversify our portfolio and enhance revenue contribution opportunities from mobile platforms."

"The early integration of our mobile games such as Ninja Must Die 2 into our social messaging platform, YiChat, was well received in the second quarter. We are focusing on our 'Fresh Social Life' strategy, which incorporates differentiated and innovative social networking functions into YiChat. Some of our recent additions include Crowd Ask, a community-driven Q&A platform, and Rideshare, a social carpooling service. These advanced, integrated functions are attracting new users to our platform and increasing engagement with existing users. We plan to continue to implement additional key services into YiChat, such as an online payment system that we expect to add later this year."

"Our advertising services business grew both sequentially and year-over-year with automobile, Internet services and food and beverage as the top performing sectors. In addition to strong industry demand, our advertising services benefited greatly during the quarter from our monetization efforts for our mobile applications and the 2014 FIFA World Cup. Our Mobile News Application was ranked by Internet research firm iResearch as the No. 1 mobile news application used by consumers in China in terms of time spent. Our other mobile applications, online portal and e-mail services also continue to attract new users and expand our reach within our dedicated community. As of June 30, 2014, we had more than 680 million e-mail users and approximately 200 million mobile phone mailbox users. Additionally, in the second quarter, our e-commerce services achieved remarkable revenue growth."

"In conclusion, we plan to continue to foster our growth both organically and by exploring overseas licensing and expansion opportunities that fuel our traditional online and mobile games and other service offerings," Mr. Ding concluded.

BEIJING, June 27, 2014 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced that its online payment platform, Wangyibao, has secured a license from the China Securities Regulatory Commission (the "CSRC") to provide payment and settlement services for wealth management products.

"To meet license application requirements from the CSRC, we have built a highly secure and efficient information system with effective risk management policies for payment and settlement services. Wangyibao can now enable settlement institutions to authenticate and settle with multiple banks while lowering their operating costs," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "We look forward to becoming a valuable e-payment choice for both wealth managers and investors."

BEIJING, May 23, 2014 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES) today announced that, according to Internet research firm iResearch, the NetEase Mobile News application was the No. 1 mobile news application used by consumers in China in terms of time spent.

According to iResearch data, users in China spent a daily aggregate average of 600 million minutes using mobile news applications on the iOS and Android platforms in March 2014, a figure that has doubled since the same period in the previous year. The iResearch data shows that the NetEase Mobile News application was the leader in this market and was used by as many as 35% of all mobile news app users on the iOS platform in the first quarter of 2014. The NetEase Mobile News app also represented up to 30% of all mobile news app launches on the iOS platform during this period. In addition, the NetEase Mobile News app led the second most popular mobile news app in China by 10% on average under these measures.

"The NetEase Mobile News app's advantages, including original reporting, innovative interactive functionality and a top-notch user experience, drove total installations of the app to reach 240 million by the end of the first quarter of 2014," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "We are successfully expanding our traditional online services to include mobile, a strategy that has flourished with the success of this application. Our mobile initiatives continue to broaden our customer base and increase our appeal to advertisers and users alike."

First Quarter 2014 Financial Results

• Total revenues for the first quarter of 2014 were RMB2,519.0 million (US$405.2 million), compared to RMB2,585.1 million and RMB2,258.0 million for the preceding quarter and the first quarter of 2013, respectively.
• NetEase reported basic and diluted earnings per ADS of US$1.39 and US$1.38, respectively, for the first quarter of 2014. The Company reported basic and diluted earnings per ADS of US$1.53 and US$1.52, respectively, for the preceding quarter, and basic and diluted earnings per ADS of US$1.32 each for the first quarter of 2013.

"The active development of new, high-quality games, products and services for China's expanding traditional and mobile Internet market continues to fuel our business," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Our total revenues increased by 11.6% year-over-year to RMB2.5 billion, demonstrating growth across our business segments with revenues from our online games business increasing by 6.3%, advertising services revenues increasing by 47.9% and e-mail, e-commerce and others revenues increasing by 81.4%."

"During the first quarter, we continued to address evolving trends in online and mobile Internet by introducing new games and expansion packs. We provide innovative game play and superior services for our growing community of users across our licensed and self-developed games, both of which contributed to our success for the quarter. We officially launched Blizzard Entertainment's free-to-play digital strategy card game Hearthstone�: Heroes of Warcraft� ("Hearthstone") in the first quarter followed by an iPad version of this game in April. Hearthstone has proven to be extremely popular with players and its iPad version quickly became the top grossing app and top free download in Apple's China iPad app store. Our self-developed games also continue to attract favorable attention. In the first quarter, we launched new expansion packs for Fantasy Westward Journey II, New Fly for Fun and New Westward Journey Online III, all of which delivered solid performances during the period. New Westward Journey Online II also fared well after launching a series of promotional activities."

"In April, we launched an expansion pack for Ghost II and also started initial small-group testing for Revelation, our 3-D oriental fantasy MMORPG that is currently under development, and have gained positive user feedback for this game. In the coming months we plan to introduce a number of new expansion packs for our existing popular games such as Tianxia III, New Westward Journey Online III and Legend of Fairy. Furthermore, we are looking forward to introducing our first-person shooter game Crisis 2015 later this year. In addition, we recently announced that we are working closely with Blizzard Entertainment to bring Heroes of the Storm�, a free-to-play, online team brawler game to China."

"Our growing mobile portfolio complements the steady growth of our online games business. User feedback and traction with the mobile version of Fantasy Westward Journey II has been very encouraging. In the first quarter, we also launched Mini Westward Journey, our first mobile card battle game to positive feedback from our users. We plan to introduce a number of new mobile apps and games this year including several high quality licensed mobile games, which support our strategy to diversify our mobile portfolio. Integration of new features and optimization for YiChat are driving users to this instant messaging social platform. In order to enhance our users' experience, we are planning to introduce more social networking functions, including enabling our users to log on to mobile games using their YiChat accounts so that they can share their gaming experience and achievements with their friends."

"Our advertising services delivered strong year-over-year growth in the first quarter, of which automobile, food and beverage and financial services were the top performing sectors. Our online portal, comprehensive mobile applications and e-mail services continue to attract new users and expand our reach within our dedicated community. As of March 31, 2014, we had more than 650 million e-mail users and there were 240 million installations of our leading Mobile News application. We will also be partnering with the national football teams of Brazil and Spain to broadcast the coming 2014 World Cup. Such high profile events increase our brand awareness and appeal to both users and advertisers."

"The development of our e-mail, e-commerce and others business has been very encouraging in the first quarter. In particular, we saw rapid growth from our e-commerce services related to third-party lottery products and insurance products."

"With more options to choose from, players increasingly seek an improved gaming experience. The ability to identify and anticipate the needs of this constituency is how we have built our business. Our games and service offerings are strong and growing. Throughout the remainder of this year, we will continue to integrate, optimize and diversify our portfolio. We are also exploring additional overseas licensing and expansion opportunities to further extend our brand and generate new revenue streams, while continuing to monetize our mobile portfolio as it matures and enhances our traditional online offerings. In addition, we are happy to announce that our board of directors has approved a new quarterly cash dividend policy beginning this year and we will be issuing a dividend of US$0.34 per ADS for the first quarter of 2014," Mr. Ding concluded.

Fourth Quarter 2013 Financial Results

• Total revenues for the fourth quarter of 2013 were RMB2,585.1 million (US$427.0 million), compared to RMB2,514.3 million and RMB2,326.7 million for the preceding quarter and the fourth quarter of 2012, respectively.
• NetEase reported basic and diluted earnings per ADS of US$1.57 each for the fourth quarter of 2013. The Company reported basic and diluted earnings per ADS of US$1.33 each for the preceding quarter, and reported basic and diluted earnings per ADS of US$1.27 each for the fourth quarter of 2012.

"Our focus on quality and innovation across our Internet games and services has been the cornerstone of our success, propelling our dynamic growth in 2013," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Throughout the year we expanded and diversified our offerings with comprehensive upgrades of our popular online games, Fantasy Westward Journey, Westward Journey Online II and Ghost, the launch of several new online games in diversified genres, and our entrance into the mobile gaming and social networking markets. Our total revenue increased by 16.6% in 2013, led by a 14.0% increase in online games revenue and 28.8% growth in advertising services revenue. We finished the year with a solid fourth quarter, growing our total revenues by 11.1% year-over-year and 2.8% quarter-over-quarter."

"Through our advanced technology, unified R&D process and the continuous optimization of our products and services, we are actively growing our loyal community of users. During the quarter, Fantasy Westward Journey II celebrated its 10-year anniversary, marking the game's longstanding popularity. Since the exciting comprehensive upgrade of this game and the launch of the mobile version in July, both the mobile and PC versions have demonstrated outstanding performances that are indicative of the resilience of our self-developed games. Other standout performances for the year were led by Kung Fu Master, New Westward Journey Online II, Heroes of Tang Dynasty II and Ghost II. In the fourth quarter, we also launched new expansion packs for Kung Fu Master, Heroes of Tang Dynasty II, Tianxia III and Legend of Fairy. Our small-scale commercial introduction of Legend of Tibet and Burst Sky in the fourth quarter was in-line with our expectations, and we plan to cultivate additional users for these two games. Burst Sky is a western fantasy style, side scrolling shooter game, and we are looking for opportunities to launch this game in overseas markets."

"Our online games business continues to grow at a steady pace. In January, we released expansion packs for Fantasy Westward Journey II, New Fly for Fun and New Westward Journey Online III. We also launched open beta testing in mainland China of Blizzard Entertainment's Hearthstone™: Heroes of Warcraft™ in January, and this free-to-play digital strategy card game has been highly popular with players. We currently expect to release new expansion packs for Tianxia III and Kung Fu Master in the first half of the year. We also have plans to release our first person shooter game, Crisis 2015, later this year and launch initial small-group testing of Revelation, our 3-D epic fantasy MMORPG that is currently under development. We are augmenting the success of our online games with our mobile initiatives, offering players a new medium through which to enjoy NetEase's games. We have already released three mobile games, and in 2014 we plan to launch a number of new mobile games, including mobile versions of our existing online games, to further enrich our portfolio."

"With regard to advertising services, our strong pipeline of mobile applications rounds out our mobile Internet offerings and we plan to introduce several new mobile Internet applications later this year. As of December 31, 2013, we had more than 200 million installations of our leading Mobile News application, which is proving to be highly appealing to our advertisers. For the fourth quarter, our advertising services revenue increased by 19.9% quarter-over-quarter and 38.0% year-over-year, primarily driven by the automobile, Internet services, financial services and real estate sectors. We are also making substantial inroads with YiChat, which continues to gain traction in China's social networking market. We are building on this platform as we introduce new features including games and mobile payment solutions. To make our e-mail services and popular mobile applications even more attractive to users, we made a number of other improvements during the fourth quarter to enhance user experience, including integration of our e-mail services with YiChat. These efforts to increase the quality and functionality of our products and services are attracting more users and, as of December 31, 2013, we had approximately 620 million registered e-mail users."

"In 2014, we will continue to diversify and optimize our games and services to address our audiences' demands for both PC and mobile services. As part of our multi-platform strategy, we plan to not only introduce new online and mobile games and features in mainland China, but also to further develop our social networking platform, perpetuate our portfolio of existing mobile applications and further explore opportunities in online games markets overseas. These combined efforts are designed to serve our dedicated community with high-quality content and features that drive growth across our traditional and mobile Internet businesses and enhance returns for our shareholders as we work to increase the value of our Company. In addition, we are happy to announce that our board of directors has approved an annual cash dividend of US$1.41 per ADS, along with a US$100 million share repurchase program," Mr. Ding concluded.

Third Quarter 2013 Financial Results

• Total revenues for the third quarter of 2013 were RMB2,514.3 million (US$410.8 million), compared to RMB2,413.8 million andRMB2,044.9 million for the preceding quarter and the third quarter of 2012, respectively.
• NetEase reported basic and diluted earnings per ADS of US$1.32 and US$1.31, respectively, for the third quarter of 2013. The Company reported basic and diluted earnings per ADS of US$1.38 and US$1.37, respectively, for the preceding quarter, and reported basic and diluted earnings per ADS of US$1.01 each for the third quarter of 2012.

"We continue to broaden the platforms for our traditional and mobile Internet product and service offerings," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "During the third quarter we completed key upgrades for two of our most popular games, increased our investment in the mobile Internet business and entered the mobile instant messaging space with the launch of YiChat. These critical advancements support our growth objectives, and for the third quarter we increased our revenues by 23.0% year-over-year, with revenues from our online games and advertising services increasing by 21.0% and 22.9%, respectively."

"Our self-developed traditional and mobile game offerings are resonating well with our audiences. During the third quarter, one of our most popular games, Fantasy Westward Journey II, delivered an excellent performance following the early July launch of its comprehensive upgrade, along with the game's accompanying pocket mobile version. This pocket mobile version has extended the reach of our game from the PC to mobile platforms, and user feedback continues to be favorable. In addition, the exciting new version we launched for Westward Journey Online II in September -now known as New Westward Journey Online II- was a significant upgrade for this classic game, which is stimulating players' enthusiasm and demonstrating positive user trends."

"Our newer games are also performing in-line with our expectations. The expansion pack launched in June for Heroes of Tang Dynasty II was well received by players and contributed to our revenue growth for the period. For our other game titles, we expect heightened interest in the coming periods as we introduced new expansion packs for Ghost II and Kung Fu Master in September and October, respectively, and have expansion packs planned in the fourth quarter for Heroes of Tang Dynasty II, Tianxia III and Legend of Fairy. Our development schedule is also progressing smoothly. User feedback has been encouraging following our initial commercial launch of Heroes of Three Kingdoms in April and Dragon Sword in August. Large-scale promotional activities were launched for those two games in September and November, respectively, and earlier this month, we commercially launched Legend of Tibet, a 2.5D MMORPG. Before the end of year, we also expect to introduce several high quality mobile games. For 2014, we currently plan to release our first person shooter game, Crisis 2015, in the first half of 2014 and we are preparing to introduce another new game: Revelation, a 3-D epic fantasy MMORPG that we have been developing for the past three years. Revelation features exceptional computer-generated graphic effects using cutting-edge technology and integrates traditional MMO styles with enhanced action elements to provide young players with cool and fast-paced fighting experiences."

"The upcoming open beta test in mainland China of Blizzard Entertainment's highly anticipated Hearthstone�: Heroes of Warcraft�will become another important milestone. This new free-to-play online collectible card game featuring legendary heroes, spells and minions from the Warcraft universe, is simple to play yet highly engaging, and we look forward to providing our players with this great gaming experience."

"Turning to our portal, our advertising services revenue increased both sequentially and year-over-year with the largest revenue contributions coming from the automobile, Internet services and fast moving consumer goods sectors. We now have a number of fast growing mobile applications, which provide an important platform for delivery of our value-added services and advertisements. YiChat has been one of our most exciting new additions, and we are extremely pleased to have partnered with China Telecom to launch this instant messaging application. Attracting considerable attention from the Chinese community, downloads for YiChat exceeded 1 million on the first day of its launch in August, and it had reached more than 30 million users by the end of October. YiChat significantly advances our mobile Internet strategy, and we continue to grow our community of loyal users across our robust portals. As ofSeptember 30, 2013, we had over 590 million e-mail users and 160 million installations of our leading Mobile News application."

"We see a great opportunity to integrate and expand our traditional online games and services with complementary mobile Internet offerings that broaden our customer base. We will continue to develop our mobile social networking platform and introduce new products and games to support this strategy. As a pioneer in China's Internet market, we are dedicated to providing our community with competitive products and services that honor our commitment to quality, while simultaneously creating additional value for our shareholder partners," Mr. Ding concluded.

BEIJING, Aug. 19, 2013 /PRNewswire/ -- China Telecom Corporation Limited ("China Telecom") and NetEase, Inc. (NASDAQ: NTES) today announced that they have established a joint venture which is launching "YiChat", a proprietary social instant messaging application for smart phones.

YiChat differentiates itself from other social instant messaging applications through the integration of various unique technologies. For example, YiChat users can enjoy sending free text and voice messages to any mobile phone or free voice messages to fixed lines, without the need for YiChat to be installed on the receiving devices. Among its specially developed and distinctive features, YiChat offers proprietary environmental noise reduction technology, high-quality photo messaging and various original stickers and emoticon designs. Moreover, all China Telecom users can enjoy additional free data promotional packages with their use of YiChat.

"The joint venture with NetEase and the launch of YiChat is a crucial step in China Telecom's strategic transformation," said Jie Yang, President and COO of China Telecom. "It demonstrates China Telecom's commitment to mobile Internet development. Aiming to make YiChat one of the most popular social instant messaging applications for young people in China, China Telecom will work towards the success of the joint venture and YiChat with the most sincere determination."

"Our strategic joint venture with China Telecom aims to provide a superior social instant messaging application for smart phone users," said William Ding, CEO and founder of NetEase. "This partnership signals the start of NetEase's entry into the mobile instant messaging space, and is the one of the key components of our mobile Internet strategy. Going forward, YiChat will have our full support in its development, utilizing our cutting-edge technological capabilities to offer users a product with the highest quality experience."

Second Quarter 2013 Financial Results

• Total revenues for the second quarter of 2013 were RMB2.4 billion (US$393.3 million), compared to RMB2.3 billion and RMB2.0 billion for the preceding quarter and the second quarter of 2012, respectively.
• Gross profit for the second quarter of 2013 was RMB1.7 billion (US$276.6 million), compared to RMB1.5 billion and RMB1.3 billionfor the preceding quarter and the second quarter of 2012, respectively.
• Gross profit margin for the online game business for the second quarter of 2013 was 80.9%, compared to 77.8% and 73.3% for the preceding quarter and the second quarter of 2012, respectively.
• Basic and diluted earnings per ADS of US$1.37 each for the second quarter of 2013. The Company reported basic and diluted earnings per ADS of US$1.34 and US$1.33, respectively, for the preceding quarter, and reported basic and diluted earnings per ADS of US$1.09 and US$1.08, respectively, for the second quarter of 2012.

"We are actively growing our community of loyal users by expanding our portfolio of Internet games, products and services for traditional online and mobile users," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Our strong second quarter results were led once again by our self-developed online games and advertising services. During the second quarter we increased our total revenues by 20.4% year-over-year to RMB2.4 billion, with revenues from our online games and advertising services increasing by 18.2% and 33.3%, respectively."

"We made a number of advancements with our online games in the second quarter. We commercially launched a new 3D real-time strategy game, Heroes of Three Kingdoms, and also introduced new expansion packs for Tianxia III, Westward Journey Online II and Westward Journey Online III as well as a comprehensive update of Ghost. This exciting new version, titled Ghost II, reached record high PCUs in April and achieved record revenue in the second quarter. Fantasy Westward Journey and Westward Journey Online III delivered solid performances during the second quarter following the price adjustments that were implemented in February for these games, as well as the launch of an item-based version of Westward Journey Online III in May. The performance of Westward Journey Online II also remained steady. Kung Fu Master has also been well received by audiences since its launch, with a major marketing campaign initiated at the end of March stimulating its excellent performance during the second quarter."

"To complement our diverse online games, I am very pleased to announce that in early July we introduced Fantasy Westward Journey II, a comprehensive upgrade with an accompanying pocket mobile version of one of our longest operating and most popular games, Fantasy Westward Journey. Mobile devices present a terrific platform for us to extend the reach of our games from PC to mobile players and enhance the user experience. We plan to build on this momentum by releasing further new and exciting mobile games that leverage our research and development expertise in the coming months."

First Quarter 2013 Financial Results

• Total revenues for the first quarter of 2013 were RMB2.3 billion (US$363.6 million), compared to RMB2.3 billion and RMB2.0 billion for the preceding quarter and the first quarter of 2012, respectively.

• Gross profit for the first quarter of 2013 was RMB1.5 billion (US$248.9 million), compared to RMB1.6 billion and RMB1.3 billion for the preceding quarter and the first quarter of 2012, respectively.

• Basic and diluted earnings per ADS of US$1.32 each for the first quarter of 2013. The Company reported basic and diluted earnings per ADS of US$1.24 for the preceding quarter, and reported basic and diluted earnings per ADS ofUS$1.16 and US$1.15, respectively, for the first quarter of 2012.

"We have built a formidable and growing portfolio of self-developed games that continues to drive our growth," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "Our total revenues for the first quarter increased by 12.7% year-over-year, with improvements across our business segments including an increase of 11.3% in revenues from our online games and 15.3% from our advertising services.

"For the first quarter, we saw healthy growth across our principal self-developed games, which was partially offset by decreased revenues from our licensed games. A price increase that we implemented in February 2013 for Fantasy Westward Journey and Westward Journey Online II, as well as strong reception to our newer games Heroes of Tang Dynasty II and Kung Fu Master, were the main contributors to our year-over-year increase in online game revenues. Tianxia III and Ghost also performed well during the first quarter, following recent promotional activities.

"We launched a new expansion pack for New Fly for Fun during the first quarter, and we also initiated large-scale marketing activities for Kung Fu Master to support the game's growth at the end of March. The second quarter will be marked by a robust release schedule of new games and expansion packs that diversify our portfolio and build on the success of our existing online games. We commercialized our 3D real-time strategy game, Heroes of Three Kingdoms, on April 10, and we introduced expansion packs for Westward Journey Online II and Westward Journey Online III, as well as released Ghost II, a new version of Ghost, at the end of April. Since these launches, user feedback has been positive, and we are pleased with these games' performances. In the coming months, we plan to introduce expansion packs for Warsong of Westward Journey and Tianxia III, as well as leverage the 10 years of Fantasy Westward Journey's success by introducing a comprehensive upgrade.

"Our dynamic pipeline for the second half of the year will further broaden the types of games we offer as we plan to introduce Dragon Sword, our next generation 3D MMORPG, and Legend of Tibet, a 2.5D MMORPG that follows a unique story based on Tibetan mythology, followed by a first person shooter game. Additionally, our current release schedule includes new expansion packs for Kung Fu Master, Soul of the Fighter and New Fly for Fun. In the near future, we may also carefully consider and explore the opportunity of introducing our popular online games such as Ghost II to overseas markets and intend to consider our existing business partners when selecting our licensees.

"Our advertising services continued to grow year-over-year. Automobile, fast-moving consumer goods and financial services were the top performing sectors in the first quarter. Our comprehensive web portal, mobile applications and e-mail services continue to attract new users and expand our reach within our loyal community. As of March 31, 2013, we had more than 550 million e-mail users and there were 75 million installations of our industry leading Mobile News application with 29 million daily active users. Youdao Dictionary continued to increase in popularity, reaching 300 million cumulative users at the end of the quarter, with over 50 million monthly active users. Youdao Cloudnote also had approximately 12 million installations. We also released NetEase Cloud Music, a music SNS application that gives musicians and music fans the ability to discover and share music. As we advance our traditional and mobile Internet offerings, add new features and optimize the user experience, we believe we can further cultivate this rapidly growing audience.

"Returning value to our shareholders remains a top priority. Our ability to drive high levels of operating cash flow provides us with ample financial flexibility, and I am pleased to announce that following our special cash dividend that was paid in January, our board of directors has approved the adoption of an annual dividend policy which is discussed in greater detail later in this announcement.

"In 2013, we plan to introduce additional new content and services that address the needs of our users across our business segments. In line with this strategy, we plan to leverage our deep expertise as an online innovator to introduce several mobile games that complement our online games platform. We see the development of mobile games as an opportunity to expand our game offerings as we continue to fuel the growth of our business," Mr. Ding concluded.

Second Quarter 2012 Financial Results

• Total revenues for the second quarter of 2012 were RMB2.0 billion (US$315.5 million), compared to RMB2.0 billion and RMB1.8 billion for the preceding quarter and the second quarter of 2011, respectively.
• Gross profit for the second quarter of 2012 was RMB1.3 billion (US$208.0 million), compared to RMB1.3 billion and RMB1.2 billion for the preceding quarter and the second quarter of 2011, respectively.
• Net profit for the second quarter of 2012 totaled RMB875.3 million (US$137.8 million), compared to RMB941.7 million and RMB772.5 million for the preceding quarter and the second quarter of 2011, respectively.
• NetEase reported basic and diluted earnings per ADS of US$1.05 each for the second quarter of 2012. The Company reported basic and diluted earnings per ADS of US$1.13 each for the preceding quarter, and reported basic and diluted earnings per ADS of US$0.93 each for the second quarter of 2011.

William Ding, Chief Executive Officer and Director of NetEase, stated, "We place great emphasis on setting standards of excellence for China's Internet audience. The merits of this strategy can be found in our continued growth and loyalty in our user base. For the second quarter of 2012, our total revenues increased 12.7% year-over-year, with online games growing by 10.8% and advertising services increasing by 20.4%."

"In the second quarter, we continued to advance our self-developed games with certain standout performances. Ghost achieved record revenue in May, gaining traction from its open beta testing launch in April. Fantasy Westward Journey demonstrated a stable increase in revenue driven by positive user response to new content for this game. During the second quarter, we also launched open beta testing for Tianxia III, as well as released new expansion packs for Warsong of Westward Journey in April, Heroes of Tang Dynasty in May and Westward Journey Online II at the end of June. We expect the effect from the new launches for our self-developed games to be reflected in upcoming periods."

"Although playing time for Blizzard Entertainment's World of Warcraft declined during the second quarter, leading to a quarter-over-quarter decrease of online game revenues, World of Warcraft continues to have a very enthusiastic community of players in China. We look forward to releasing Blizzard's Mists of Pandaria, the fourth expansion pack for World of Warcraft, as soon as possible to build on the game's large and passionate player base in China."

"In the second half of the year, we will focus on launching several new games and introducing expansion packs to existing games such as Fantasy Westward Journey, Tianxia III, Ghost and Westward Journey Online III. Our newest games under development are progressing well. In response to growing market demand for action games, we launched initial closed beta testing for two such games in July: Kung Fu Master, formerly called Wu Hun, as well as Soul of the Fighter, formerly called Soul of Warrior. Early feedback for both games has been encouraging, and we are preparing for their commercial launch in the second half of the year. In addition, our next generation 3D MMORPG Dragon Sword and 3D action real-time strategy game Heroes of Three Kingdoms are being developed to the highest standards of quality, and we will be performing technical tests this year to obtain user feedback on those games."

"Content innovation, new product development as well as service integration among mobile platforms continues to attract new advertising customers. Revenues from advertising services grew 42.3% quarter-over-quarter, led by the automobile, fast moving consumer goods and financial services sectors. Our recent focus has been on high profile sporting events, such as Euro Cup 2012 and the London Olympics. In the second quarter, we were pleased to secure a strategic partnership with China Network Television to broadcast the London Olympic Games as well as the opening and closing ceremonies on our portal and our top-ranking mobile news application."

"Mobile access and the introduction of new attractive content are contributing to continued user growth in our portal and e-mail business. In the second quarter, the registered number of users for our micro-blogging service increased by 48.8% sequentially to 180 million. Mailbox services also increased to 495 million registered users as of June 30, 2012. We continue to advance both services by introducing new content and enhancing the user experience to broaden our existing community."

"Our robust games portfolio, industry leading portal and growing search business are built on the success of providing a highly differentiated platform that caters to quality and optimizing user experience. We continue to build our products and services to meet customers' demands for new content with a robust pipeline of games and activities planned for the second half of the year," Mr. Ding concluded.

First Quarter 2012 Unaudited Financial Results

• Total revenues for the first quarter of 2012 were RMB2.0 billion (US$318.2 million), compared toRMB2.1 billion and RMB1.5 billion for the preceding quarter and the first quarter of 2011, respectively.
• Gross profit for the first quarter of 2012 was RMB1.3 billion (US$211.4 million), compared toRMB1.5 billion and RMB985.0 million for the preceding quarter and the first quarter of 2011, respectively.
• Net profit for the first quarter of 2012 totaled RMB941.7 million (US$149.5 million), compared toRMB898.6 million and RMB737.4 million for the preceding quarter and the first quarter of 2011, respectively.

William Ding, Chief Executive Officer and Director of NetEase, stated, "The growing popularity of our self-developed games continues to drive our revenues. For the first quarter, our total online games revenue increased 31.4% year-over-year, with dynamic growth from our newer games Ghost and Tianxia III and increasing contribution from several of our flagship games, Fantasy Westward Journey, Westward Journey Online II and Heroes of Tang Dynasty."

"Our online games revenue has been driven by the successful execution of our strategy to continuously improve user experience and has been further demonstrated by Ghost's rapid growth since the launch of its full scale closed beta testing in September 2011. In the second quarter, we introduced a series of new features for Ghost in its open beta testing, which has been well received by users. Benefiting from the innovative game play mode, our newest game, Tianxia III, achieved record high revenue in the first quarter. We plan to continue developing new exciting content and launch open beta testing for Tianxia III in the second quarter."

"Moreover, players continue to respond enthusiastically to expansion packs for our long running self-developed games, Fantasy Westward Journey and Westward Journey Online II. We plan to launch new expansion packs combined with large-scale promotional activities for these games in the second and third quarters. Other expansion packs or new versions planned for the second quarter include Heroes of Tang Dynasty, Westward Journey Online III and Warsong of Westward Journey."

"Diversification through the introduction of self-developed games is a key theme in 2012. We are on track to commercialize a number of new titles this year that showcase innovative content and leading technology. In the second and third quarters of 2012, we plan to initiate beta testing of several highly anticipated games in our pipeline, including 3D ARPG, Soul of Warrior, 2.5D MMORPG, Wu Hun, 3D action real-time strategy (or DotA) game, Heroes of Three Kingdoms, and a next generation 3D action MMORPG, Dragon Sword. With respect to our licensed games, we are pleased to have renewed our contract with Blizzard Entertainment to continue our existing cooperation on Blizzard Entertainment's World of Warcraft^� in mainland China. We look forward to releasing Mists of Pandaria^�, the fourth expansion to World of Warcraft, in mainland China as soon as possible."

"Our advertising revenue grew 13.1% year-over-year, with automobile, Internet services and food and beverage services as the top performing sectors. Advertising revenues declined 48.5% quarter-over-quarter, which reflects the typical industry seasonality. We expect the usual uptick in advertising revenues in the second quarter and through the second half of 2012. We remain committed to increasing our appeal to users by offering content innovation, synthesizing user feedback and providing service integration between different mobile device platforms. To leverage the opportunities offered by the upcoming 2012 London Olympics, we have secured a number of partnerships with content providers to offer comprehensive, accurate and in-depth reporting to our portal and mobile Internet users."

Mr. Ding concluded, "Portal traffic grew steadily in the first quarter as we continued to optimize our user experience and mobile access by introducing leading applications and cutting edge technology. Usage of our micro-blogging services is also expanding. In the first quarter, the number of micro-blogging users reached 121.0 million, up 24.0% from December 31, 2011. As the leading free email provider in China, our mailbox services also performed well as we continued to optimize services through mobile access and upgrades to enhance users' experience. As of March 31, 2012, we had approximately 480 million registered email users, up 6.7% quarter-over-quarter. In addition, the number of users and paying subscribers for our corporate mailbox services have grown in their third year of operation. During the first quarter, we were named one of the top corporate mailbox service providers in China.

"With continued execution on expanding and diversifying our game portfolio and user base, as well as driving innovation in content, technology and entertainment across all demographics inChina, we look forward to another great year for NetEase in 2012," Mr. Ding concluded.

Fourth Quarter 2011 Financial Results

• Total revenues for the fourth quarter of 2011 were RMB2.1 billion (US$341.4 million), compared to RMB2.0 billion and RMB1.7 billion for the preceding quarter and the fourth quarter of 2010, respectively.
• NetEase reported basic and diluted earnings per American depositary share ("ADS") of US$1.09 each for the fourth quarter of 2011. The Company reported basic and diluted earnings per ADS of US$1.00 each for the preceding quarter, and basic and diluted earnings per ADS of US$0.87 each for the fourth quarter of 2010.

William Ding, Chief Executive Officer and Director of NetEase, stated, "2011 was a year of strong growth for our company. Providing our loyal and growing community of users with the highest quality content continues to fortify NetEase's industry leadership. Our success was highlighted by a 32.0% increase in total revenues for 2011, driven by an increase in online game services revenue of 32.5%, followed by strong growth in our advertising services revenue of 25.6% for the year."

"Our approach to technology innovation and product diversification to satisfy user demand is the core of our 2012 growth strategy. In the first half of 2012, we plan to enhance our portfolio of popular games with numerous expansion packs, including updates for Heroes of Tang Dynasty, Westward Journey Online II, Warsong of Westward Journey, New Fly For Fun and Legend of Fairy, as well as commence open beta testing for Ghost and Tianxia III. We also have two new self-developed games in process that are scheduled for beta testing in mid-2012."

Mr. Ding continued, "Internet advertising is rapidly increasing as a dominant media platform for advertisers in China. In 2011, revenue growth from our advertising services segment was consistently strong, led by the financial services, food and beverage products, and Internet services sectors. Seasonality and increased recognition by advertisers of our innovative content, service integration, and NetEase's user appeal drove a 26.3% sequential increase and a 19.2% year-over-year increase in advertising services revenue for the fourth quarter of 2011."

"We continue to evaluate the market and enhance our products and service offerings to meet the demands of a dynamic and competitive market. As the No. 1 free email provider in China, registered email users grew to 450 million as of December 31, 2011, an increase of 4.7% over the third quarter. The number of micro-blogging users grew to 97.6 million users, an increase of 10.3% over the third quarter."

Mr. Ding concluded, "We hold a long history of innovation and community in China's Internet market. Our main priority for 2012 is to continue to satisfy the demand of Internet users by providing high quality and innovative products and services to the market."

BEIJING, Dec. 1, 2011 /PRNewswire-Asia-FirstCall/ -- NetEase.com, Inc. (NASDAQ: NTES), one of China's leading Internet and online game services providers, today announced that its board of directors has approved a new share repurchase program of up to US$50 million of the company's outstanding American Depositary Shares (ADSs) for a period not to exceed three months.  

Under the terms of the approved program, NetEase may repurchase its issued and outstanding ADSs in open-market transactions on the NASDAQ Global Select Market. The timing and dollar amount of repurchase transactions will be subject to Securities and Exchange Commission (SEC) Rule 10b-18 requirements. It is also expected that such repurchases will be effected pursuant to a plan in conformity with SEC Rule 10b5-1. NetEase plans to fund repurchases made under this program from available working capital.

Third Quarter 2011 Financial Results

• Total revenues for the third quarter of 2011 were RMB2.0 billion (US$314.8 million), compared to RMB1.8 billion and RMB1.4 billion for the preceding quarter and the third quarter of 2010, respectively.

• Net profit for the third quarter of 2011 totaled RMB825.8 million (US$129.5 million), compared to RMB772.5 million and RMB585.3 million for the preceding quarter and the third quarter of 2010, respectively. During the third quarter of 2011, the Company reported a net foreign exchange loss of RMB65.0 million (US$10.2 million), compared to a net foreign exchange loss of RMB3.0 million and a net foreign exchange gain of RMB54.3 million for the preceding quarter and the third quarter of 2010, respectively.

• The quarter-over-quarter and year-over-year foreign exchange gains/losses were mainly due to the exchange gains/losses arising from the Company's Euro-denominated bank deposit balances as of September 30, 2011 as the exchange rate of the Euro against the RMB fluctuated over the periods.

• NetEase reported basic and diluted earnings per American depositary share ("ADS") of US$0.99 each for the third quarter of 2011. The Company reported basic and diluted earnings per ADS of US$0.93 each for the preceding quarter, and basic and diluted earnings per ADS of US$0.71 and US$0.70, respectively, for the third quarter of 2010.

The year-over-year increase in gross profit was primarily attributable to increased revenues from both the online games and advertising businesses, partially offset by increased cost of revenues related mainly to the online games business. The year-over-year increase in online games revenue was primarily driven by increased revenues from the Company's self-developed games, as well as increased revenue from World of Warcraft. Revenues from self-developed games increased primarily as a result of various expansion packs and promotional activities in the third quarter of 2011, as well as the unlimited closed beta testing of Ghost starting in April 2011 and the open beta testing of Heroes of Tang Dynasty starting in June 2011. The year-over-year increase in revenue from World of Warcraft was mainly due to the release of the game's two expansions, Wrath of the Lich King™ and Cataclysm™, in mainland China in August 2010 and July 2011, respectively. The year-over-year increase in cost of revenues for the online games business was mainly due to increased royalties and consultancy fees related to World of Warcraft and StarCraft II operations and increased staff-related costs, resulting from increased headcount in 2011. The year-over-year increase in advertising services revenue was primarily due to continued rising demand for advertising services, primarily from food and beverage products, financial services and Internet services sectors.

Second Quarter 2011 Financial Results

• Total revenues for the second quarter of 2011 were RMB1.8 billion (US$275.1 million), compared to RMB1.5 billion and RMB1.3 billion for the preceding quarter and the second quarter of 2010, respectively.
• Net profit for the second quarter of 2011 totaled RMB772.5 million (US$119.5 million), compared to RMB737.4 million and RMB485.7 million for the preceding quarter and the second quarter of 2010, respectively. During the second quarter of 2011, the Company reported a net foreign exchange loss of RMB3.0 million (US$0.5 million), compared to a net foreign exchange gain of RMB25.3 million and a net foreign exchange loss of RMB67.8 million for the preceding quarter and the second quarter of 2010, respectively.
• The quarter-over-quarter and year-over-year foreign exchange gains/losses were mainly due to the translation gains/losses arising from the Company's Euro-denominated bank deposit balances as of June 30, 2011 as the exchange rate of the Euro against the RMB fluctuated over the periods.
• NetEase reported basic and diluted earnings per American depositary share ("ADS") of US$0.92 and US$0.91, respectively, for the second quarter of 2011. The Company reported basic and diluted earnings per ADS of US$0.88 and US$0.87, respectively, for the preceding quarter and basic and diluted earnings per ADS of US$0.58 each for the second quarter of 2010.

The year-over-year increase in gross profit was primarily attributable to increased revenues from both the online games and advertising businesses, partially offset by increased cost of revenues related mainly to the online games business. The year-over-year increase in online games revenue was primarily driven by increased revenues from the Company's self-developed games as well as increased revenue from World of Warcraft. Revenues from self-developed games increased primarily as a result of various expansion packs and promotional activities in the second quarter of 2011, as well as the unlimited closed beta testing of Ghost starting in April 2011. The year-over-year increase in revenue from World of Warcraft was mainly due to the release of Blizzard Entertainment's Wrath of the Lich King™ expansion pack in August 2010. The year-over-year increase in cost of revenues for the online games business was mainly due to increased royalties and consultancy fees related to World of Warcraft and StarCraft II operations and increased staff-related costs, resulting from increased headcount in 2011.

The year-over-year increase in advertising services revenue was primarily due to continued rising demand for advertising services, primarily from Internet services, food and beverage products and financial services sectors.

We believe that our current levels of cash and cash equivalents and cash flows from operations will be sufficient to meet our anticipated cash needs for at least the next 12 months. However, we may need additional cash resources if we experience changed business conditions or other developments. We may also need additional cash resources if we find and wish to pursue opportunities for investment, acquisition, strategic cooperation or other similar action. If we determine that our cash requirements exceed our amounts of cash and cash equivalents on hand, we may seek to issue debt or equity securities or obtain a credit facility.

First Quarter Results:

William Ding, Chief Executive Officer and Director of NetEase, stated, "For the first quarter, total revenues from online games increased by approximately 28% year-over-year, driven by higher revenue contributions from our self-developed games, namely Heroes of Tang Dynasty, Fantasy Westward Journey, Westward Journey Online II and Tianxia II, along with continued revenue growth from World of Warcraft®, a game licensed from Blizzard Entertainment. Online game revenue decreased by 3% quarter-over-quarter mainly due to seasonality. Fantasy Westward Journey and Westward Journey Online II continued to perform well due to well-received promotional campaigns during the first quarter, along with favorable response to the latest expansion pack for Fantasy Westward Journey released in January 2011. As a game in its eighth year of commercial operation, we were tremendously pleased with Westward Journey Online II's new record quarterly revenue in the current quarter as well as a new record number of peak concurrent users, resulting from players' positive response to the promotional activities held during the recent Labor Day holidays in China. We plan to keep working hard to make the game a continued success. Our newer games Heroes of Tang Dynasty and Tianxia II also continued to show solid growth. Moreover, we concluded the open beta test for Blizzard Entertainment's StarCraft® II in China during the first quarter and commenced commercial operation on April 6, 2011. StarCraft II holds the record for fastest-selling strategy game of all time, and we are delighted to bring this exciting gaming experience to Chinese players.

• Total revenues for the first quarter of 2011 were RMB1.5 billion (US$234.9 million), compared to RMB1.7 billion and RMB1.2 billion for the preceding quarter and the first quarter of 2010, respectively.
• Gross profit for the first quarter of 2011 was RMB985.0 million (US$150.4 million), compared to RMB1.1 billion and RMB772.4 million for the preceding quarter and the first quarter of 2010, respectively
• Net profit for the first quarter of 2011 totaled RMB737.4 million (US$112.6 million), compared to RMB712.5 million and RMB452.3 million for the preceding quarter and the first quarter of 2010, respectively.
• NetEase reported basic and diluted earnings per American depositary share ("ADS") of US$0.86 each for the first quarter of 2011. The Company reported basic and diluted earnings per ADS of US$0.84 and US$0.83 for the preceding quarter and US$0.53 each for the first quarter of 2010.

Fourth Quarter Highlights:

• Total revenues for the fourth quarter of 2010 were RMB1.7 billion (US$254.5 million), compared to RMB1.4 billion and RMB1.3 billion for the preceding quarter and the fourth quarter of 2009, respectively.
• Gross profit for the fourth quarter of 2010 was RMB1.1 billion (US$168.7 million), compared to RMB952.0 million and RMB838.4 million for the preceding quarter and the fourth quarter of 2009, respectively.
• Net profit for the fourth quarter of 2010 totaled RMB712.5 million (US$108.0 million), compared to RMB585.3 million and RMB571.8 million for the preceding quarter and the fourth quarter of 2009, respectively.
• NetEase reported basic and diluted earnings per American depositary share ("ADS") of US$0.83 each for the fourth quarter of 2010. The Company reported basic and diluted earnings per ADS of US$0.68 each and US$0.67 each for the preceding quarter and the fourth quarter of 2009, respectively.

William Ding, Chief Executive Officer and Director of NetEase, stated, "We ended 2010 with strong fourth quarter results in both online games and advertising services, delivering solid sequential and year-over-year revenue growth.  Fourth quarter online game revenues increased 13% quarter-over-quarter and 31% year-over-year, driven primarily by the Wrath of the Lich King(TM) expansion pack launched on August 31, 2010 for World of Warcraft(R), a game licensed from Blizzard Entertainment, and the outstanding performances from our fastest growing self-developed games, Tianxia II, Heroes of Tang Dynasty and Westward Journey Online II.

Mr. Ding concluded, "In conjunction with our online games strategy for 2011, for our portal business, we will focus on new product applications in mobile phones and will explore new advertising formats and marketing models to attract premier advertisers and stimulate ad spending. We are working to achieve healthy growth across our business in 2011 in line with anticipated market expansion in order to maintain our leading position in China's burgeoning Internet community."

Third Quarter 2010 Financial Results

• Total revenues for the third quarter of 2010 were RMB1.4 billion (US$215.1 million), compared to RMB1.3 billion and RMB879.4 million for the preceding quarter and the third quarter of 2009, respectively.

• Net profit for the third quarter of 2010 totaledRMB585.3 million (US$87.5 million), compared to RMB485.7 million and RMB393.8 millionfor the preceding quarter and the third quarter of 2009, respectively. During the third quarter of 2010, the Company reported a net foreign exchange gain ofRMB54.3 million (US$8.1 million), compared to a net foreign exchange loss of RMB67.8 million in the preceding quarter and a net foreign exchange gain of RMB25.3 million in the third quarter of 2009.  The quarter-over-quarter and year-over-year changes in foreign exchange gains/losses were mainly due to the translation changes arising from the Company's Euro-denominated bank deposit balances as of September 30, 2010, as the exchange rate of the Euro against the RMB fluctuated over the periods.  

• NetEase reported basic and diluted earnings per ADS of US$0.67 each for the third quarter of 2010.  The Company reported basic and diluted earnings per ADS of US$0.56 each and US$0.45each for the preceding quarter and the third quarter of 2009, respectively.