网易-2020年第一季度网易财报（英文）-2020.5-16页_811kb

报告摘要

Media Contact:
- Margaret Shi
- NetEase, Inc.
- Email: ir@service.netease.com
- Tel: (+86) 571-8985-3378
Investor Relations Contact:
- Brandi Piacente
- Email: netease@thepiacentegroup.com
- Tel: (+1) 212-481-2050

Net Revenues: RMB17.1 billion (US$2.4 billion), up 18.3% year-over-year.
Online Game Services: RMB13.5 billion (US$1.9 billion), up 14.1% year-over-year.
Youdao: RMB541.4 million (US$76.5 million), up 139.8% year-over-year.
Innovative Businesses and Others: RMB3.0 billion (US$424.1 million), up 28.0% year-over-year.
Gross Profit: RMB9.4 billion (US$1.3 billion), up 21.2% year-over-year.
Net Income from Continuing Operations: RMB3.6 billion (US$501.5 million).
Non-GAAP Net Income from Continuing Operations: RMB4.2 billion (US$595.0 million).
Basic Net Income per ADS: US$3.88 (Non-GAAP: US$4.60).

Game Performance: Strong performance from flagship titles such as Fantasy Westward Journey and New Westward Journey Online II. New titles like Life-After, Onmyoji, and All About Jianghu also maintained popularity.
International Expansion: Games like Knives Out and Identity V saw increased active user numbers in Japan.
Upcoming Titles: A pipeline of new games, including Fantasy Westward Journey H5, King of Hunters, PES Club Manager, EVE Echoes, Onmyoji: Yokai Koya, Harry Potter: Magic Awakened, Ghost World Chronicle, Revelation, Diablo® Immortal™, Pokémon Quest, and MARVEL Duel, is planned for future release.
Youdao Growth: Net revenues from Youdao's learning services increased by over 226.4% year-over-year to RMB442.1 million (US$62.4 million), with positive net operating cash flow of RMB49.7 million (US$7.0 million).
NetEase Cloud Music: Net revenues grew considerably year-over-year, with membership subscribers continuing to increase.

Q1 2020: RMB17,062.4 million (US$2,409.7 million)
Q4 2019: RMB15,734.8 million
Q1 2019: RMB14,422.2 million
Online Game Services:
- Q1 2020: RMB13,518.2 million (US$1,909.1 million)
- Q4 2019: RMB11,604.3 million
- Q1 2019: RMB11,850.2 million
- Mobile games accounted for approximately 70.3% of online game revenues.
Youdao:
- Q1 2020: RMB541.4 million (US$76.5 million)
- Q4 2019: RMB410.4 million
- Q1 2019: RMB225.7 million
Innovative Businesses and Others:
- Q1 2020: RMB3,002.7 million (US$424.1 million)
- Q4 2019: RMB3,720.0 million
- Q1 2019: RMB2,346.3 million

Q1 2020: RMB9,377.6 million (US$1,324.4 million)
Q4 2019: RMB8,210.4 million
Q1 2019: RMB7,737.7 million
Online Game Services: Gross profit margin of 64.1%, up from 63.1% and 63.7% in the prior quarter and Q1 2019, respectively.
Youdao: Gross profit margin of 43.5%, up from 29.8% and 23.4% in the prior quarter and Q1 2019.
Innovative Businesses and Others: Gross profit margin of 15.8%, down from 20.6% and up from 5.7% in the prior quarter and Q1 2019.

Q1 2020: RMB4,891.2 million (US$690.8 million)
Q4 2019: RMB5,234.0 million
Q1 2019: RMB3,982.6 million
Q1 2020: Decrease in marketing expenses compared to the prior quarter, increase year-over-year due to higher marketing, R&D, and staff-related costs.

Q1 2020: Net income tax charge of RMB1,082.0 million (US$152.8 million).
Effective Tax Rate: 21.5%, down from 22.1% and 31.0% in the prior quarter and Q1 2019.

Q1 2020: US$1.16 per ADS, paid on June 23, 2020, to shareholders of record as of June 12, 2020.
Q4 2019: US$1.02 per ADS, paid on March 20, 2020.

Youdao ADS Purchase Program (2019): Approved up to US$20 million for purchase of Youdao's ADSs, with approximately 134,000 ADSs purchased for US$2.1 million by March 31, 2020.
NetEase ADS Repurchase Program (2020): Approved up to US$1.0 billion, with approximately 1.1 million ADSs repurchased for US$341.9 million by March 31, 2020.
Amendment: The repurchase amount was increased to US$2.0 billion.

Total Assets (March 31, 2020): RMB118,653,818,000 (US$16,757,120,000)
Total Liabilities (March 31, 2020): RMB44,460,267,000 (US$6,278,989,000)
Total Shareholders’ Equity (March 31, 2020): RMB63,808,140,000 (US$9,011,431,000)
Total Cash and Cash Equivalents (March 31, 2020): RMB79,331.3 million (US$11,203.7 million)

Net Income from Continuing Operations (Q1 2020): RMB3,551.0 million (US$501.5 million)
Non-GAAP Net Income from Continuing Operations (Q1 2020): RMB4,212.9 million (US$595.0 million)
Basic Net Income per ADS (Q1 2020): US$3.88 (Non-GAAP: US$4.60)
Basic Net Income per ADS (Q4 2019): US$3.34
Basic Net Income per ADS (Q1 2019): US$3.01

Non-GAAP net income excludes share-based compensation expenses.
These measures are used as supplemental metrics to assess operating performance.
NetEase does not guarantee to update non-GAAP financial information.

The document includes forward-looking statements, which are subject to risks and uncertainties.
Risks include market growth, regulatory changes, competition, and economic conditions.

All USD figures are based on RMB to USD conversion at the noon buying rate of US$1.00 = RMB7.0808 on March 31, 2020.
The Company has revised its segment reporting to align with its CODM's use of financial information.
The impact of new accounting standards was deemed immaterial.

Date: May 19, 2020 (Beijing/Hong Kong Time: May 20, 2020)
Time: 10:00 p.m. Eastern Time
Phone Number: 1-929-477-0324
Conference ID: 2981452
Replay Available: Through June 2, 2020
Webcast: Available on NetEase's Investor Relations website at http://ir.netease.com.