NetEase : Report of foreign issuer rules 13a-16 and 15d-16 of the Securities Exchange Act

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of February 2019

Commission File Number: 000-30666

NETEASE, INC.

Building No. 7, West Zone

Zhongguancun Software Park (Phase II) No.10 Xibeiwang East Road, Haidian District, Beijing 100193, People's Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Signature

NetEase Reports Fourth Quarter 2018 Unaudited Financial Results

NETEASE, INC.

Form 6-K

TABLE OF CONTENTS

Page 3

Exhibit 99.1

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NETEASE, INC.

By:	/s/ Zhaoxuan Yang
Name:	Zhaoxuan Yang
Title:	Chief Financial Officer

Date:February 21, 2019

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Exhibit 99.1

Contact for Media and Investors:

Margaret Shi

NetEase, [e-mail]: [phone]

Brandi Piacente

Investor [e-mail]: [phone]

NetEase Reports Fourth Quarter and Fiscal Year 2018 Unaudited Financial Results

(Beijing - February 20, 2019) - NetEase, Inc. (NASDAQ: NTES) ("NetEase" or the "Company"), one of China's leading internet and online game services providers, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2018.

Fourth Quarter 2018 Financial Highlights

• · Net revenues[1] were RMB19,844.3 million (US$2,886.2 million), an increase of 35.8% compared with the fourth quarter of 2017.

  • · Online game services net revenues were RMB11,019.6 million (US$1,602.7 million), an increase of 37.7% compared with the fourth quarter of 2017.

  • · E-commerce net revenues were RMB6,678.7 million (US$971.4 million), an increase of 43.5% compared with the fourth quarter of 2017.

  • · Advertising services net revenues were RMB760.5 million (US$110.6 million), an increase of 3.3% compared with the fourth quarter of 2017.

  • · Innovative businesses and others[2] net revenues were RMB1,385.5 million (US$201.5 million), an increase of 14.2% compared with the fourth quarter of 2017.

• · Gross profit was RMB7,657.5 million (US$1,113.7 million), an increase of 33.3% compared with the fourth quarter of 2017.

[1] The Company adopted ASC 606 as of January 1, 2018 on a modified retrospective basis. The adoption did not have a significant impact on the Company's operating results for the fourth quarter of 2018 and comparable periods. See "Impact of The Recently Adopted Major Accounting Pronouncements" in this press release.

[2] Effective as of December 31, 2018, the Company renamed its "e-mail and others" segment to "innovative businesses and others" to better articulate the businesses included in this segment. See "Change in Segment Reporting" in this press release.

• · Total operating expenses were RMB5,412.3 million (US$787.2 million), an increase of 25.3% compared with the fourth quarter of 2017.

• · Net income attributable to the Company's shareholders was RMB1,697.7 million (US$246.9 million). Non-GAAP net income attributable to the Company's shareholders was RMB2,359.6 million (US$343.2 million). [3]

• · Diluted earnings per ADS were US$1.92; non-GAAP diluted earnings per ADS were US$2.66.

Fourth Quarter 2018 and Recent 2019 Operational Highlights

• · Introduced exciting new mobile titles including:

  • · Night Falls: Survival, which topped the China's iOS download chart in November and ranked third in China's iOS game grossing chart for November and December;

  • · Ink, Mountains and Mystery, with its stunning display of classical Chinese arts, reached No.1 on China's iOS download chart on January 1, 2019, the day of its launch.

• · Expanded footprint beyond mainland China and deepened global reach:

  · Maintained Knives Out's position as China's top grossing mobile game in overseas markets for five consecutive months since August 2018; · Launched titles overseas in January 2019 including: Night Falls: Survival in Hong Kong, Macau and Taiwan and QwQ in Japan and South

  Korea;

  ·

  Furthered collaboration with leading game studios worldwide, including a joint development agreement with Codemasters, a UK game studio, as well as made a minority investment in Quantic Dream, a French game studio, and announced an investment in U.S.-based Second Dinner, a studio founded by ex-Blizzard veterans.

• · Fortified strong performance of flagship titles, such as Fantasy Westward Journey and New Westward Journey Online series with new expansion packs released (for PC-client and mobile users), which further promoted user engagement and contributed to steady sequential quarterly revenue growth.

• · Renewed 11-year partnership with Blizzard Entertainment in mainland China, extending the publishing agreement between the two companies until January 2023.

• · Advanced pipeline with upcoming titles including Fantasy Westward Journey 3D, Xuanyuan Sword, Ages of Isle and Pokémon Quest.

• · Opened Kaola's first flagship store and first brick-and-mortar store for Yanxuan, both located in Hangzhou's West Lake business district.

"We finished the year with total annual net revenues of RMB67 billion, a 24% increase from 2017, driven by a diverse portfolio of online games as well as healthy growth in our e-commerce, advertising services and other internet product and service offerings," said Mr. William Ding, Chief Executive Officer and Director of NetEase. "2018 was a very fruitful year of diversification for our online games. While our flagship titles remain stronger than ever, we also introduced a number of highly successful titles for PC-client and mobile platforms. These new titles span a wide variety of genres and led to rapid growth in our user base, gaining us access to new demographics and instilling confidence in our ability to branch out beyond MMORPG categories.

[3] As used in this press release, non-GAAP net income attributable to the Company's shareholders is defined to exclude share-based compensation expenses. See "Unaudited Reconciliation of GAAP and Non-GAAP Results" at the end of this press release.

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