NetEase, Inc. (NASDAQ:NTES) Q3 2019 Earnings Conference Call November 20, 2019 9:00 PM ET Company Participants William Ding - CEO Charles Yang - CFO Margaret Shi - IR Director Conference Call Participants Natalie Wu - CICC Alex Poon - Morgan Stanley Hillman Chan - Citi Kenneth Fong - Credit Suisse Jialong Shi - Nomura Daniel Chen - JPMorgan Thomas Chong - Jefferies Operator Good day and welcome to the NetEase 2019 Third Quarter Earnings Conference Call. Today’s conference is being recorded. At this time, I ...

Financial Data and Key Metrics Changes - The company reported a 15% increase in total net revenue year-over-year, totaling CNY 18.8 billion (approximately USD 2.7 billion) for Q2 2019 [22] - Net income grew by 46% year-over-year, with non-GAAP net income attributable to shareholders reaching CNY 4 billion (USD 531 million), representing a 34% increase year-over-year [26] - The overall gross margin was 43.3%, slightly down from 44.1% in the previous quarter and 44.5% year-over-year [24] Business Line Data and Key Metrics Changes - Net revenues from online game services were CNY 11.4 billion, down 4% quarter-over-quarter but up 14% year-over-year, with mobile games accounting for approximately 72% of this revenue [22] - E-commerce net revenue was CNY 5.2 billion, while advertising services generated CNY 582 million [23] - Innovative businesses and others saw net revenues of CNY 1.5 billion, up 18% quarter-over-quarter and 23% year-over-year, driven by Cloud Music, CC live streaming, and Youdao [23] Market Data and Key Metrics Changes - The overseas games revenue accounted for more than 10% of total games net revenue, with successful titles in Japan contributing to this growth [14] - The company launched several new titles in Japan, which topped the iOS downloads chart shortly after their launches [14] Company Strategy and Development Direction - The company aims to deepen collaboration with global premium game studios and expand its reach in North America and Europe [29] - There is a focus on joint R&D development to leverage competitive strengths and develop premium content for global gamers [29] - The company is also investing in a new video games studio in Montreal to enhance R&D capabilities in North America [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of China's online music industry and emphasized disciplined cost control [35] - The company is optimistic about the future of its innovative businesses, expecting continued growth and improved margins [44] - The management highlighted the importance of returning value to shareholders, with a dividend payout ratio of 30% approved for the quarter [27] Other Important Information - The company has launched a new community module called Cloud Village on its NetEase Cloud Music app, which has seen a 135% year-over-year increase in subscribers [18] - The company is actively working on expanding the Onmyoji IP with four new games in development [11] Q&A Session Summary Question: Overseas expansion strategy for games - Management highlighted the importance of collaboration with global studios and the goal of making popular games hits in Western markets [28][29] Question: Monetization strategy for Cloud Music - Management discussed user subscriptions, advertising, broadcasting, and community features as key monetization strategies [34] Question: Operating metrics for Cloud Music - Management noted strong growth in daily active users and monthly active users since the launch of the new module [37] Question: Use of Marvel IP - Management confirmed multiple games across different genres are in development with Marvel, leveraging its global popularity [39] Question: Cost control and gross profit margin - Management expressed confidence in maintaining positive gross profit margins for innovative businesses and e-commerce [44] Question: Dividend payout rationale - Management explained the shift to a 20% to 30% dividend payout range allows flexibility based on financial performance [56]

NetEase, Inc. (NASDAQ:NTES) Q1 2019 Results Conference Call May 15, 2019 9:00 PM ET Company Participants Margaret Shi - IR Director William Ding - Chief Executive Officer Charles Yang - Chief Financial Officer Hilton Hui - Co-President of NetEase Games Conference Call Participants Eddie Leung - Bank of America Merrill Lynch Natalie Wu - CICC Hillman Chan - Citibank Alex Poon - Morgan Stanley Alex Yao - JPMorgan Operator Good day, and welcome to the NetEase First Quarter 2019 Earnings Conference Call. Today' ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR o SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIE ...