网易(09999) - 2023 Q1 - 季度业绩

Financial Performance - NetEase's net revenue for Q1 2023 was RMB 25.0 billion (USD 3.6 billion), representing a year-over-year increase of 6.3%[4] - Revenue from games and related value-added services reached RMB 20.1 billion (USD 2.9 billion), up 7.6% year-over-year[4] - Youdao's revenue decreased to RMB 1.2 billion (USD 169.4 million), down 3.1% year-over-year[4] - Cloud Music's revenue was RMB 2.0 billion (USD 285.4 million), a decline of 5.2% year-over-year[4] - Gross profit for Q1 2023 was RMB 14.9 billion (USD 2.2 billion), reflecting a year-over-year increase of 16.0%[9] - Net profit attributable to shareholders was RMB 6.8 billion (USD 983.6 million), with a non-GAAP net profit of RMB 7.6 billion (USD 1.1 billion)[5] - Basic earnings per share were USD 0.31, with a non-GAAP basic earnings per share of USD 0.34[5] - Net profit attributable to shareholders in Q1 2023 was RMB 6,754.6 million (USD 983.6 million), compared to RMB 3,952.7 million in the previous quarter and RMB 4,394.0 million year-over-year[13] - Net income for Q1 2023 reached RMB 6,710,394, a 79.5% increase from RMB 3,709,695 in Q1 2022[23] - Total net revenue for the three months ended March 31, 2023, was RMB 25,046,287, slightly down from RMB 25,354,129 in the previous year, indicating a decrease of about 1.2%[25] - For the three months ended March 31, 2023, the net profit attributable to shareholders was RMB 6,754,634 thousand, compared to RMB 4,394,023 thousand for the same period in 2022, representing a year-over-year increase of approximately 53.5%[29] - The non-GAAP net profit attributable to shareholders for the same period was RMB 7,566,234 thousand, up from RMB 5,117,626 thousand in 2022, indicating a growth of about 47.9%[29] - Basic non-GAAP earnings per share for the three months ended March 31, 2023, was RMB 2.35, compared to RMB 1.56 for the same period in 2022, reflecting an increase of approximately 50.6%[29] Operating Expenses - Total operating expenses in Q1 2023 were RMB 7,676.5 million (USD 1,117.8 million), a decrease from RMB 8,810.9 million in the previous quarter but an increase from RMB 7,329.3 million year-over-year[11] - The effective tax rate for Q1 2023 was 19.5%, down from 20.2% in the previous quarter and 22.0% year-over-year[12] - Research and development expenses for Q1 2023 totaled RMB 3,749,732, a decrease of 8.4% from RMB 4,090,076 in Q1 2022[23] - General and administrative expenses for the same period were RMB 294,281 thousand, down from RMB 349,444 thousand in 2022, representing a decrease of approximately 15.8%[27] - Sales and marketing expenses for the three months ended March 31, 2023, were RMB 32,353 thousand, a decrease from RMB 33,001 thousand in the same period last year, indicating a decline of about 2.0%[27] - The company reported equity incentive expenses included in operating costs and expenses amounting to RMB 203,514 thousand for the three months ended March 31, 2023[27] Cash Flow and Assets - As of March 31, 2023, the net cash and cash equivalents amounted to RMB 95.1 billion (USD 13.9 billion), slightly down from RMB 95.6 billion at the end of 2022[15] - The company reported cash and cash equivalents of RMB 13,700,778 as of March 31, 2023, compared to RMB 24,889,000 as of December 31, 2022, indicating a decrease of 45.0%[22] - The total cash and cash equivalents balance of RMB 16,784,561 as of March 31, 2023, down from RMB 27,588,325 at the end of the previous year[24] - The company’s investment activities resulted in a net cash outflow of RMB 2,532,523 for the three months ended March 31, 2023, compared to an inflow of RMB 3,864,171 in the same period of 2022[24] - The company’s financing activities generated a net cash inflow of RMB 83,351 for the three months ended March 31, 2023, a significant improvement from a net outflow of RMB 6,182,698 in the previous year[24] Market and Business Outlook - The flagship games like "Fantasy Westward Journey" and "Westward Journey Online" maintained high popularity, contributing to user engagement[6] - Upcoming game releases include "Westward Journey Mobile" on June 30 and "Harry Potter: Magic Awakened" in overseas markets this summer[6] - Cloud Music is expanding its music ecosystem and user community, improving profitability for future growth[6] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[23] - Future outlook includes the need for continuous innovation in online services to keep pace with market trends[20] - Risks include potential stagnation in the online gaming market and challenges in maintaining market position in China and globally[20] - The company faces risks related to government regulation changes and economic uncertainties impacting its operations[20] Company Overview - NetEase is a leading internet and gaming service provider, continuously expanding its gaming ecosystem with a rich product matrix[19] - The company has a strong in-house R&D team focused on mobile, PC, and console games, contributing to a vibrant user community[19] - NetEase's other businesses include Youdao, a smart learning company, and Cloud Music, a well-known online music platform[19] - The company has been recognized for its ESG performance, being included in the 2022 Dow Jones Sustainability World Index and receiving an A rating from MSCI[19] - NetEase uses non-GAAP financial metrics, such as net profit attributable to shareholders, to assess operational performance[21] - The non-GAAP net profit excludes stock-based compensation expenses, providing a clearer view of operational performance[21] - The company acknowledges the limitations of non-GAAP metrics, which may not reflect all income/expense items affecting operations[21] Conference and Communication - The company will hold a conference call on May 25, 2023, to discuss quarterly results and answer questions[18] - The exchange rate used for conversion was 1 USD = RMB 6.8676 as of March 31, 2023[26]