Profile: NetEase, Inc (NTES.OQ)
NetEase, Inc., incorporated on 1997, is a holding company. The Company is an Internet technology company. The Company provides its Internet and wireless value-added applications, services and technologies and advertising services to Guangzhou NetEase and Guangyitong Advertising and they operate the NetEase Websites and the online advertising business. Guangzhou NetEase has two majority-owned subsidiaries, Youdao Computer (a search business operator) and Wangyibao (the operator of its Wangyibao payment system). Through its subsidiaries and contracts with its affiliates Guangzhou NetEase, Guangyitong Advertising and Shanghai EaseNet and their respective shareholders, it operates an interactive online community in China and are a provider of Chinese language content and services through its online games, Internet portal and wireless value-added services businesses. During the year ended December 31, 2011, it developed its online games and advertising business. It also provides wireless value-added and other fee-based services.
Online Games Services
The Company’s online games business focuses on offering massively multi-player online games, more specifically role-playing games, to the Chinese market. These massively multi-player online role-playing games (MMORPGs), are played over the Internet in virtual worlds that exist on networked game servers to which thousands of players simultaneously connect to interact with each other. It develops and operates MMORPGs that are targeted at or localized to the Chinese market. It has also developed an online casual game platform with various multi-player games.The Company’s online games include Massively Multi-player Online Role-Playing Games, Casual Games and Customer Service.
The Company principal internally developed games are Fantasy Westward Journey, Westward Journey Online II, Tianxia III (an upgrade of Tianxia II), Ghost, Heroes of Tang Dynasty and Westward Journey Online III. These games are MMORPGs set in classical Chinese-themed fantasy worlds, of which Fantasy Westward Journey, Westward Journey Online II and Westward Journey Online III are 2D games, Ghost and Heroes of Tang Dynasty are 2.5D games and Tianxia III is a three dimensional (3D) game. As of December 31, 2011, its online casual game platform offered more than 30 casual games to users. Its customer service center provides round the clock customer service and technical support and can be contacted through telephone or e-mail.
The NetEase Websites provide Internet users with Chinese language online services centered around three core service categories-content, community and communication. Its range of content appeals to an audience group spanning all age groups. The NetEase content channels provide news, information and online entertainment to the Chinese public. The Websites consolidate and distribute content from more than one hundred international and domestic content providers. Content is distributed through various channels, including channels focusing on news, entertainment, sports, finance, information technology, automobiles, education and real estate. The NetEase websites provide an array of free and fee-based community and communication services, including micro-blogging, blogging, photo album, instant messaging, online personal advertisements, open courses, news apps, e-reading, matchmaking, clubs and community forums. The NetEase Websites provide other services to its users, including a Website directory and Web pages search service.
The homepage of the NetEase Websites, www.163.com, provides a destination for Chinese Internet users to identify and access resources, services, content and information on the Internet. The NetEase Websites include various channels focusing on news, automobile, sports, finance, real estate, entertainment, science and information technology. NetEase users can interact through a variety of community services, including Online Community Forums, Micro-blogging, Instant Messaging and Matchmaking and Others. The NetEase Websites provides other services to its users, including Web search, blog search, image search, news search, online shopping search, online dictionary, desktop dictionary, toolbar and Web notes, which automatically retrieves syndicated Web content and customized sets of search results. Many of its services, such as news content, micro-blogging, open courses, Web dictionary, Web note and reader may be accessed through mobile Internet and mobile applications, such as those operating on iPhone, iPad and Android devices.
The various content channels and range of online services offered through its Internet portal forms a medium for its clients to conduct integrated marketing campaigns to the millions of NetEase users. Its online advertising offerings include banner advertising, channel sponsorships, direct e-mail, interactive media sites, sponsored special events, games, contests and other activities.
Wireless Value-Added Services and Others
The Company offers a range of wireless value-added services (WVAS), which allow users to receive news and other information, such as stock quotes and e-mails, download ringtones and logos for their mobile phones and participate in matchmaking communities and interactive games. Combining content from its Internet portal with mobile applications it has developed in-house, it can develop WVAS. The Company also offers free and fee-based e-mail services, as well as e-commerce related services, such as personalized photo-based products, to its users.
Company’s wireless application protocol (WAP), services, which provide a browser-based platform to access and use sophisticated wireless value-added services, and multimedia messaging services (MMS), which provide sophisticated, content-rich mobile messages. It provides registered users with free and fee-based e-mail services which support both the Chinese and English languages. It offers various types of applications (apps), such as news, reader and Youdao Dictionary, that can be accessed or downloaded through its portal and mobile Internet and mobile applications, such as those operating on iPhone, iPad and Android devices.
The Company competes with Perfect World Company Limited (Perfect World), Giant Interactive Group Inc (Giant), Shanda Games Limited (Shanda), The9 Limited (The9), Sina Corporation (Sina), Sohu.com Inc. (Sohu), Tom Online Inc. (Tom.com), 263.net, Tencent Inc. (Tencent), Chinadotcom Corporation (Chinadotcom), Baidu.com, Inc. (Baidu), 21cn.com, Changyou.com Limited (Changyou), Youku Inc. (Youku), Softworld, Softstar Entertainment Inc., Actoz Soft Co., Ltd., 9you, Kingsoft Corporation Limited, Waei International Digital Entertainment Co., Ltd., Alibaba.com Limited (Alibaba) and Yahoo! and MSN.
SP Tower D,26th Floor,
Tsinghua Science Park Building 8
8,No.1 Zhongguancun East Road,
BEIJING BEJ 100084