Profile: NetEase, Inc (NTES.OQ)
NetEase, Inc., incorporated on July 6, 1997, is a holding company. The Company is an Internet technology company. The Company operates in three segments: Online Game Services, Advertising Services and E-mail, Wireless Value-added Services and Others. 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 is a provider of Chinese language content and services through its online games, Internet portal and wireless value-added services businesses.
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, Web-based Games, Casual Games and Customer Service.
The Company principal internally developed games are Fantasy Westward Journey, Westward Journey Online II, Tianxia III, Ghost and Heroes of Tang Dynasty II as well as World of Warcraft. 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.
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 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. 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.
E-mail, Wireless Value-added Services and Others
The Company provides registered users with free and fee-based premium e-mail services which support both the Chinese and English languages. Registered users can access and send e-mail through their Web browsers, smart phone application or through the POP3 and SMTP standards, which allow users to handle e-mails on their own e-mail applications without opening their browsers.
The Company’s primary wireless value-added offering is short messaging services (SMS), which allows mobile phone users to, among other things, send and receive text messages from the Internet. It offers a variety of SMS services in the form of individual messages and subscription packages. In addition, it offer 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). The Company’s users can also order color ring-back tones, which enable users to customize the ringtone a caller hears. These ringtones can include voice recordings as well as pre-recorded music. In addition to the services described above, the NetEase websites provide e-commerce related services, such as Wangyibao, its online payment platform, Yinxiangpai, its personalized photo-based products, and game-related accessories, and other services to its users.
The Company competes with Tencent, Changyou.com Limited, Giant Interactive Group Inc., Shanda Games Limited, Perfect World Company Limited, 9you, Kingsoft Corporation Limited, Baidu, Alibaba, Sina, Sohu, Qihu, iFeng.com, Youku, Renren Inc. ,263.net, iQIYI, Yahoo! Inc., Microsoft Corporation and Google Inc.
SP Tower D,26th Floor,
Tsinghua Science Park Building 8
8,No.1 Zhongguancun East Road,
BEIJING BEJ 100084