Profile: NetEase Inc (NTES.OQ)
18 Jan 2017
NetEase, Inc. (NetEase), incorporated on July 6, 1999, is a technology company. The Company operates an interactive online community in China and is a provider of Chinese language content and services through its online games, Internet media, e-mail, e-commerce and other businesses. The Company operates through three segments: Online Game Services; Advertising Services, and E-mail, E-commerce and Others. The Company is engaged in the development of applications, services and other technologies for the Internet in China.
Online Game Services
The Company's online games business primarily focuses on offering personal computer (PC)-client massively multi-player online role-playing games (PC-client MMORPGs), as well as mobile games to the Chinese market. PC-client MMORPGs are played over the Internet in virtual worlds that exist on networked game servers to which various players simultaneously connect to interact with each other. The Company develops and operates PC-client MMORPGs that are targeted at or localized to the Chinese market. The Company operates approximately 20 self-developed item-based PC-client MMORPG games, such as Tianxia III, New Ghost, Revelation, Demon Seals, Hegemon-King of Western Chu, Heroes of Tang Dynasty Zero, and an item-based version of New Westward Journey Online II. The Company offers over 80 self-developed and licensed mobile games of various genres, such as the Fantasy Westward Journey and Westward Journey Online mobile games, Battle to the West, The World HD, Fairy Tales and Kari-ri-sei Million Arthur. The Company distributes its mobile games by partnering with Android- and iPhone Operating System (iOS)-based application stores in China, as well as through its distribution channels.
Internet Media Business
The NetEase Websites provide Internet users with Chinese language online services centered over three core service categories, which include content, community and communication. The Company's 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 various 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 a range of free and fee-based community and communication services, including photo album, instant messaging, online personal advertisements, open courses (NetEase Open Courses), mobile news applications (NetEase News App), interactive online video (NetEase BoBo) and community forums. The NetEase Websites provide other services to its users, including various search functions, dictionary (Youdao Dictionary) and cloud note-taking application (Youdao Cloudnote).
The Company's online advertising offerings include banner advertising, channel sponsorships, direct e-mail, interactive media-rich sites, sponsored special events, games, contests and other activities. The Company mainly charge advertisers on a per diem fixed fees basis. Its standard advertising charges vary depending on the terms of the contract and the advertisement's location within its Website.
E-mail, E-commerce and Others
The Company offers free and fee-based premium e-mail services to its individual users and corporate users. The Company also offers a range of e-commerce services, which primarily include Caipiao, an online service that facilitates the processing of end users' purchase orders for lotteries operated by third-party vendors, and Baoxian, an online service that facilitates the sale of insurance products from third-party insurers. The Company operates an e-commerce platform, Kaola. Kaola sells imported maternity and baby products, skincare and cosmetics and other general merchandise through its online platform. It also provides e-commerce marketplace services for third-party vendors to sell their products on its platform. The Company also operates the Duobao platform, an online service that allows users to exchange a virtual currency for products. Its other services include Wangyibao, an online payment platform; EaseRead, an e-reading application; Cloud Music, an online music social network; NetEase Cloud Classroom, an online education platform, and Internet finance services.
The Company competes with Baidu, Inc., Sina Corporation, Sohu.com Inc., Tencent Holdings Limited, Alibaba Group Holding Limited, Youku Tudou Inc., Qihoo 360 Technology Co. Ltd., Phoenix New Media Limited, TouTiao.com, SouFun Holdings Ltd., JD.com, Inc., Jumei International Holding Limited, Vipshop Holdings Limited, Changyou.com Limited, Giant Interactive Group Inc., Shanda Games Limited, Perfect World Company Limited, Yahoo! Inc., Microsoft Corporation, Google Inc. and Autohome Inc.
SP Tower D,26th Floor,
Tsinghua Science Park Building 8
8,No.1 Zhongguancun East Road,
BEIJING BEJ 100084