NetEase, Inc. (NTES) is down 4.60% in the pre-market trading session at the price of $86.60 despite no recent news from the company. NTES is a leading internet technology company in China. It provides premium online services focused on innovative and diverse content, community, communication, and commerce.
NTES Released Second Quarter 2021 Financial Results
On 31st August 2021, NTES published its unaudited financial results for the second quarter ended 30th June 2021. Net revenues were RMB20,524.5 million (US$3,178.8 million) for the second quarter of 2021. For the first quarter of 2021 and the second quarter of 2020, net revenues were RMB20,517.2 million and RMB18,184.8 million, respectively. Gross profit for the second quarter of 2021 was RMB11,189.6 million (US$1,733.1 million). Gross profit was RMB11,052.6 million and RMB9,792.2 million for the previous quarter of 2021 and the second quarter of 2020, respectively. The rise in online game services gross profit resulted from increased net revenues from both mobile and PC games.
NTES reported a gross profit margin of 66.1% for online game services for the second quarter of 2021. Gross margins were 64.6% and 63.8% for the prior quarter and the second quarter of 2020, respectively. The gross profit margin for online game services is fluctuating within a narrow band based on the revenue from mobile and PC games.
Net income attributable to the company’s shareholders was RMB3,541.8 million (US$548.5 million) for the second quarter of 2021. It was RMB4,439.2 million and RMB4,537.8 million for the preceding quarter and the second quarter of 2020, respectively. NTES reported a basic net income of US$0.16 per share (US$0.82 per ADS) for the second quarter of 2021. It was US$0.21 per share (US$1.03 per ADS) and US$0.22 per share (US$1.08 per ADS) for the preceding quarter and the second quarter of 2020, respectively.
RMB50 Million Donations to Support China’s Henan Relief Effort
On 22nd July 2021, NTES announced a donation of RMB50 million and emergency aid to support recovery efforts in Henan Province, China. Zhengzhou and other cities in the Henan province had been hit by heavy rains, leading to river overflows, public transportation disruptions, and infrastructure damage. NTES had implemented a disaster relief campaign to support those in need. This initiative included an online emergency channel, which provides rescue information and enables users to contact others for emergency rescue assistance. NetEase prioritized supporting the community and people by providing additional disaster relief.
