(NTES) NETEASE INC (ADR) Stocks

ABOUT

NetEase, Inc. (ADR) is a Chinese internet technology company providing online services centered on content, community, communications, and commerce. Today it employs over 18 000 people.

NetEase, Inc. develops and operates online PC and mobile games, advertising services, email services, and e-commerce platforms in China. Some of the company’s games include the Westward Journey series, Tianxia III, Heroes of Tang Dynasty Zero, and Ghost II. It also collaborates with Blizzard Entertainment to operate local versions of Warcraft III, World of Warcraft, Hearthstone, StarCraft II, Diablo III: Reaper of Souls, Overwatch in China, The RPG game Onmyoji, and The Onmyoji Arena MOBA.

Ding Lei founded the company in 1997. By 2008, the 163.com domain attracted at least 1.8 million visitors according to a Compete.com survey. In 2012, the company’s official English name changed from NetEase.com, Inc. to NetEase, Inc. (ADR)

In 2017, the company goes in agreement with the American company Marvel Comics to develop a comic based on a Chinese superhero. In 2018, it invests US$ 100 million into Bungie for a minority stake in the company. It also invests in New Zealand developer A44. In 2019, NetEase obtains a minority stake in Quantic Dream.

OVERVIEW

NetEase, Inc. is a technology company. It operates an interactive online community in China and is a provider of Chinese language content and services through its online games, Internet media, e-mail, e-commerce, and other businesses. The Company operates through three segments: Online Game Services, Advertising Services, and E-mail, E-commerce, and others.

Its online games business primarily focuses on offering PC clients massively multi-player online role-playing games, as well as mobile games to the Chinese market. The NetEase websites provide internet users with Chinese language online services centered over three core service categories. Its online advertising offerings include banner advertising, direct e-mail, sponsored special events, games, contests, and other activities. It offers free and fee-based premium e-mail services to its individual users and corporate users.

VALUES

NetEase, Inc. (ADR) conducts its affairs in accordance with all applicable laws, rules, and regulations of the countries in which it operates. It promotes honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships. It states full, fair, accurate, timely, and understandable disclosure in the reports and documents the Company files with or submits to, the U.S. Securities and Exchange Commission and in other public communications made by the Company. It complies with applicable governmental laws, rules, and regulations, and reports to the appropriate person any violations of this Code. Shareholders who purchase company shares can rest assured of superior value.

MARKET PERFORMANCE

NetEase, Inc. (ADR) trades on NASDAQ and lists under the stock symbol NTES. The company forms part of the NASDAQ 100.

The second quarter of 2019 reports net revenues of RMB 18,769.0 million (US$ 2,734.0 million), an increase of 15.3%. Gross profit is RMB 8,125.8 million (US$ 1,183.7 million), an increase of 12.2%. Net income attributable to shareholders is RMB 3,071.4 million (US$ 447.4 million). Non-GAAP net income attributable to the Company’s shareholders is RMB 3,645.4 million (US$ 531.0 million). The board approved a dividend of US$ 1.04 per ADS.