Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company demonstrated robust overall performance, with a strong release of quality new game products expected in 2024 [1][4] - The financial results for Q4 2023 showed a revenue of 27.14 billion yuan, a year-on-year increase of 7.0%, and a net profit of 6.582 billion yuan, reflecting a significant year-on-year growth of 66.5% [3][8] - The company is well-positioned for continued growth due to a solid pipeline of new games and improvements in various business segments [4][37] Financial Performance Summary - The company achieved a gross margin of 62.0% in Q4 2023, an increase of 9.8 percentage points year-on-year, with an adjusted net profit margin of 27.2% [8][19] - The gaming and value-added services revenue reached 20.921 billion yuan in Q4 2023, with a year-on-year growth of 9.6% [21][22] - The company’s total revenue projections for FY2024-2026 are 1147 billion, 1271 billion, and 1398 billion yuan, respectively, with adjusted net profits of 370 billion, 420 billion, and 473 billion yuan [37] Business Segment Analysis Gaming Business - The gaming segment saw a revenue increase of 9.6% year-on-year, with mobile game revenue growing by 28.7% [5][21] - The flagship games, such as "Nirvana in Fire" and "Party of Eggs," have attracted significant user engagement, with over 400 million active users during the Spring Festival [25] - The company has a strong lineup of new games scheduled for release in 2024, including "The Legend of the Condor Heroes" and "Eternal Return" [25][21] NetEase Youdao - NetEase Youdao reported a revenue of 1.5 billion yuan in Q4 2023, a year-on-year increase of 1.8%, with a focus on AI applications in education [26][29] - The online marketing services segment achieved a record high revenue of 470 million yuan, reflecting a growth of 96.9% [26] NetEase Cloud Music - NetEase Cloud Music generated 2 billion yuan in revenue in Q4 2023, marking its first annual profit, driven by increased subscription revenue [30][32] - The platform has expanded its music library significantly, with a focus on original music and partnerships with various artists [30] Innovation and Other Businesses - The innovation segment achieved a revenue of 2.8 billion yuan in Q4 2023, a year-on-year increase of 12.9% [35] - The company is exploring new monetization avenues through short dramas and enhanced e-commerce strategies [35][36]

网易（纳斯达克代号：NTES及港交所代号：9999）29日发布财报。财报显示，网易2023年营收为1035亿元（146亿美元），较2022年同期的965亿元增长7.3%。 网易2023年游戏及相关增值服务净收入为816亿元（115亿美元），2022年为746亿元。2023年来自于在线游戏的净收入约占该分部净收入的92.9%。2023年手游收入占比同比增加，主要是由于《蛋仔派对》和《逆水寒》等手游的净收入占比增加。 2023年有道净收入为54亿元，云音乐净收入为79亿元，创新及其他业务净收入为86亿元（12亿美元）。 网易2023年归属于公司股东的净利润为294亿元（41亿美元），2022年为203亿元；非公认会计准则下归属于公司股东的持续经营净利润为326亿元（46亿美元），2022年为228亿元。 网易2023年第四季度净收入为271亿，同比增7%；非公认会计准则下归属于公司股东的持续经营净利润为74亿元（10亿美元）。 网易首席执行官兼董事丁磊说，“2023年是网易游戏在品类创新突破上具有里程碑意义的一年，我们的游戏产品线更加丰富和多样化，我们不仅延续了《蛋仔派对》的成功，更推出了《巅峰极速》和《全明星街 ...

网易[T(aNblTe_EStSoc kUNaSm/e9R9p9tT9yp eH] K ) 公司研究/美股点评 季节短期扰动，24 年产品储备强劲有望创造惊喜 投资评级：增持（维持） 主要观点： [Table_Rank] 报告日期： 2024-02-29 ⚫[ T2a3bQle4_业Su绩m情ma况ry：] 23Q4收入271.40亿元(yoy 7%, qoq -0.5%)，低于市场预期282.12亿 [收Ta盘bl价e_(B美a元se)D ata] 112.28 元；23Q4 Non-GAAP净利润73.79亿元(yoy 16%, qoq -4%)，低于市场 近12个月最高/最低(美元) 118/77 预期79.48亿元。公司本季度的股息分红率达到74%，是历史最高水平(除 总股本(亿股) 32.24 19Q3出售考拉时期的特殊分红)。收入与利润低于预期，主要有几个因 流通股本(亿股) 32.24 素：1) 游戏递延收入并未转化为营业收入，由于玩家消费节奏影响递延 流通股比例(%) 100.00 收入确认节奏，所以部分收入仍未从资产负债表转向利润表。2）PC端 总市值(亿美元) 724 流通市值(亿美元) ...

NetEase, Inc. (NASDAQ:NTES) Q4 2023 Earnings Conference Call February 29, 2024 7:00 AM ET Company Participants Brandi Piacente - President of Piacente Financial Communications William Ding - CEO Bill Pang - Vice-President of Corporate Development Conference Call Participants Felix Liu - UBS Alex Poon - Morgan Stanley Lei Zhang - Bank of America Securities Yang Bai - CICC Jialong Shi - Nomura Lincoln Kong - Goldman Sachs Ritchie Sun - HSBC Operator Good day, and welcome to the NetEase 2023 Fourth Quarter and ...

| --- | --- | --- | --- | --- | |----------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | N e t E a s e | | | | | | | | | | | | | | | | | | 4Q23 Investor Presentation | | | | | | | | | | | | Investor Relations Feb 29, 2024 | | | | | | | | | | | SAFE HARBOR STATEMENT This announcement contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities L ...

Financial Performance - NetEase reported Q4 2023 net revenue of RMB 27.1 billion (USD 3.8 billion), a year-over-year increase of 7.0%[3] - Revenue from games and related value-added services reached RMB 20.9 billion (USD 2.9 billion), up 9.6% year-over-year[3] - Youdao's revenue was RMB 1.5 billion (USD 208.5 million), reflecting a year-over-year increase of 1.8%[3] - Cloud Music revenue decreased to RMB 2.0 billion (USD 279.7 million), down 16.4% year-over-year[3] - The company reported a total net revenue of RMB 103.5 billion (USD 14.6 billion) for 2023, an increase from RMB 96.5 billion in 2022[13] - The gross profit for 2023 was RMB 63.1 billion (USD 8.9 billion), up from RMB 52.8 billion in 2022, with growth attributed to increased net income from online games and other services[14] - The company reported a total net income of RMB 74,566,471 thousand for the year ending December 31, 2023, compared to RMB 81,565,449 thousand for the previous year[28] Profitability - Gross profit for Q4 2023 was RMB 16.8 billion (USD 2.4 billion), representing a 27.0% year-over-year increase[3] - Net profit attributable to shareholders was RMB 6.6 billion (USD 927.1 million) for Q4 2023[4] - In Q4 2023, the net income attributable to shareholders was RMB 6.6 billion (USD 927.1 million), a decrease from RMB 7.8 billion in the previous quarter and an increase from RMB 4.0 billion year-over-year[12] - The non-GAAP net income attributable to shareholders for Q4 2023 was RMB 7.4 billion (USD 1 billion), compared to RMB 8.6 billion in the previous quarter and RMB 4.8 billion year-over-year[12] Expenses and Margins - The total operating expenses for Q4 2023 amounted to RMB 10 billion (USD 1.4 billion), up from RMB 9.4 billion in the previous quarter and RMB 8.8 billion year-over-year, primarily due to increased marketing and R&D expenditures in gaming and related value-added services[9] - The gross margin for gaming and related value-added services in Q4 2023 was 69.5%, up from 69.0% in the previous quarter and significantly higher than 59.1% year-over-year, driven by increased net income contribution from self-developed games[12] - The gross margin for Youdao in Q4 2023 was 49.9%, down from 55.9% in the previous quarter and 53.3% year-over-year, primarily due to decreased contributions from learning services[12] - The gross margin for Cloud Music in Q4 2023 was 30.3%, up from 27.2% in the previous quarter and 17.8% year-over-year, driven by increased subscription revenue and improved cost control[12] Cash and Investments - As of December 31, 2023, the company's net cash balance was RMB 110.9 billion (USD 15.6 billion), an increase from RMB 95.6 billion at the end of 2022[16] - The company's cash and cash equivalents increased to RMB 24,889,000 thousand from RMB 21,428,902 thousand, representing a growth of approximately 11.5%[24] - The company's short-term investments increased significantly to RMB 7,622,673 thousand from RMB 4,436,057 thousand, reflecting a growth of approximately 71.5%[24] Shareholder Returns - The board approved a quarterly dividend of $0.21597 per share, payable on March 25, 2024, for common stockholders and approximately $1.07985 for American Depositary Share holders[17] - The third quarter dividend was $0.0990 per share, which has already been paid in December 2023[17] - The company announced a share repurchase plan of up to $5 billion, initiated on January 10, 2023, with approximately 7.2 million American Depositary Shares repurchased for about $644.1 million as of December 31, 2023[18] User Engagement - Daily active users for "Party Animals" reached 40 million during the Spring Festival, with total registered users surpassing 500 million since its launch in 2022[5] - "Nirvana in Fire" mobile game series attracted over 100 million active users, showcasing strong user engagement[5] Corporate Responsibility and Innovation - The company emphasized its commitment to social responsibility by enhancing its anti-addiction system for minors in its gaming products[6] - NetEase's diverse product line in gaming has seen significant innovation, contributing to healthy revenue growth across various segments[6] - NetEase is a leading internet and gaming service provider, continuously expanding its gaming ecosystem with a rich product matrix[20] - The in-house R&D team focuses on mobile, PC, and console game development, enhancing user experience and community engagement[21] Market Outlook and Risks - Forward-looking statements indicate potential risks related to market growth, competition, and regulatory changes that may impact business performance[22] Assets and Liabilities - As of December 31, 2023, the total assets of the company amounted to RMB 172,760,985 thousand, a decrease from RMB 185,924,978 thousand on December 31, 2022[24] - The total liabilities rose to RMB 63,887,505 thousand, up from RMB 57,840,897 thousand, indicating an increase of about 10.5%[24] - The total equity attributable to shareholders decreased to RMB 104,731,317 thousand from RMB 124,285,776 thousand, a decline of about 15.7%[24] - The company's current liabilities totaled RMB 56,828,847 thousand, an increase from RMB 53,842,484 thousand, marking a rise of approximately 5.8%[24]

HANGZHOU, China , Feb. 29, 2024 /PRNewswire/ -- Cloud Music Inc. (HKEX: 9899, "NetEase Cloud Music" or the "Company"), a leading interactive music streaming service provider in China, today announced its financial results for the fiscal year 2023 ended December 31, 2023. Summary of Key Financial and Operating Metrics (RMB in thousands, unless otherwise stated) Year ended 31 December 2023 2022       (Unaudited) (Unaudited) Financial Metrics Revenue 7,866,992 8,992,221 G ...

HANGZHOU, China, Feb. 29, 2024 /PRNewswire/ -- NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, "NetEase" or the "Company"), a leading internet and game services provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023. Fourth Quarter 2023 Financial Highlights Net revenues were RMB27.1 billion (US$3.8 billion), an increase of 7.0% compared with the fourth quarter of 2022. Games and related value-added services net revenues were RMB20.9 billion (US ...

Financial Performance - Net revenues for Q4 2023 were RMB27.1 billion (US$3.8 billion), a 7.0% increase year-over-year[2] - Net revenues from games and related value-added services were RMB20.9 billion (US$2.9 billion), up 9.6% compared to Q4 2022[4] - Gross profit for Q4 2023 was RMB16.8 billion (US$2.4 billion), representing a 27.0% increase year-over-year[7] - Net income attributable to shareholders for Q4 2023 was RMB6.6 billion (US$927.1 million), down from RMB7.8 billion in the previous quarter[10] - Non-GAAP net income from continuing operations for Q4 2023 was RMB7.4 billion (US$1.0 billion), compared to RMB8.6 billion in the previous quarter[41] - For fiscal year 2023, net revenues were RMB103.5 billion (US$14.6 billion), an increase from RMB96.5 billion in fiscal year 2022[42] - Net income attributable to the Company's shareholders for fiscal year 2023 totaled RMB29.4 billion (US$4.1 billion), a 45.1% increase from RMB20.3 billion in fiscal year 2022[52] - Non-GAAP net income from continuing operations attributable to the Company's shareholders for fiscal year 2023 was RMB32.6 billion (US$4.6 billion), up 42.9% from RMB22.8 billion in fiscal year 2022[53] - Basic net income per share for the year ended December 31, 2023, was 9.15, compared to 6.23 in 2022, marking a 46.1% increase[73] - The company reported a net income from continuing operations of RMB 29,357,223 for the year ended December 31, 2023, up from RMB 19,218,426 in 2022[73] - Net income for the year ended December 31, 2023, was RMB 29,357,223, representing a significant increase from RMB 19,843,290 for the year ended December 31, 2022, reflecting a growth of approximately 48%[77] Revenue Breakdown - Net revenues from innovative businesses and others for Q4 2023 were RMB2.8 billion (US$387.7 million), a 12.9% increase year-over-year[6] - Cloud Music net revenues for Q4 2023 were RMB2.0 billion (US$279.7 million), a 16.4% decrease compared to Q4 2022[6] - Youdao's net revenues for Q4 2023 were RMB 1.48 billion, a slight decrease from RMB 1.45 billion in Q4 2022[78] - Total net revenues for the year ended December 31, 2023, reached RMB 103.47 billion, a 7.2% increase from RMB 96.50 billion in 2022[78] Profitability Metrics - The gross profit margin for games and related value-added services was 69.5% in Q4 2023, up from 59.1% in Q4 2022[28] - Gross profit for the year ended December 31, 2023, was RMB 63,063,394, up 19.5% from RMB 52,766,126 in 2022[73] - Operating profit for the year ended December 31, 2023, was RMB 27,709,144, reflecting a 41.4% increase compared to RMB 19,628,593 in 2022[73] - Cloud Music's gross profit margin improved to 30.3% in Q4 2023, up from 17.8% in Q4 2022[78] Expenses and Cash Flow - Total operating expenses for Q4 2023 were RMB10.0 billion (US$1.4 billion), a 13.0% increase year-over-year[8] - Total operating expenses for the year ended December 31, 2023, were RMB 35,354,250, an increase from RMB 33,137,533 in 2022[73] - Net cash provided by operating activities for fiscal year 2023 was RMB35.3 billion (US$5.0 billion), compared to RMB27.7 billion for fiscal year 2022, reflecting a 27.4% increase[54] - Cash flows from operating activities for the three months ended September 30, 2023, were RMB 9,843,920, compared to RMB 9,009,213 for the same period in 2022, indicating an increase of about 9%[77] Shareholder Returns - The Company initiated a share repurchase program of up to US$5.0 billion, with approximately 7.2 million ADSs repurchased for a total cost of US$644.1 million as of December 31, 2023[56] - The company declared a dividend of US$0.21597 per share for Q4 2023, payable on March 25, 2024[91] - The company paid dividends totaling RMB 2,423,355 to shareholders for the three months ended September 30, 2023, compared to RMB 2,018,984 for the same period in 2022[77] Balance Sheet Highlights - Net cash as of December 31, 2023, reached RMB110.9 billion (US$15.6 billion), an increase from RMB95.6 billion as of December 31, 2022[54] - Total assets increased to RMB185.9 billion (US$26.2 billion) as of December 31, 2023, up from RMB172.8 billion as of December 31, 2022[71] - Shareholders' equity rose to RMB124.3 billion (US$17.5 billion) as of December 31, 2023, compared to RMB104.7 billion as of December 31, 2022[71] Future Outlook - The company plans to continue its market expansion and product innovation strategies in 2024[78] - The Company’s management will host a teleconference call on February 29, 2024, to discuss quarterly results and answer questions[58]

NetEase (NTES) is set to report fourth-quarter 2023 results on Feb 29.The Zacks Consensus Estimate for fourth-quarter revenues currently stands at $3.96 billion, suggesting an increase of 7.6% from the figure reported in the year-ago quarter.The consensus mark for earnings has moved downward by 3 cents to $1.80 per share over the past 60 days, indicating a 68.2% increase from the year-ago quarter’s reported figure.The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters ...