On the 20th, NetEase, Inc released its financial results for the first quarter of 2020:

• The company's net income was 17.1 billion yuan, an increase of 18.3% over the same period last year. The market expects 15.587 billion yuan, compared with 14.422 billion yuan in the same period last year.

• The net profit of continuing business belonging to the shareholders of NetEase, Inc Company is 3.6 billion yuan, and the market is expected to be 3.106 billion yuan, compared with 2.382 billion yuan in the same period last year.

• Based on non-American general accounting standards, the net profit of continuing business belonging to the shareholders of NetEase, Inc Company is 4.2 billion yuan.
  

• The company's gross profit margin of online game services was 64.1%, and online game service revenue increased by 14.1% to 13.5 billion yuan over the same period last year.

Operational points for the first quarter of 2020 and the near future:

Flagship game products such as "Fantasy Journey to the West" and "A Chinese Odyssey 2" performed strongly this quarter, while other popular game products such as "after tomorrow", "Onmyoji" and "A Dream" remained popular.

The international influence of NetEase, Inc's game has further increased, and the number of active users of "Wild Action" and "Fifth Personality" in Japan has increased significantly.

NetEase, Inc will release games such as "Fantasy Journey to the West", "King of the Hunter", "Live Club Manager", "Star Wars Eve: no Embers Star River" and "Onmyoji: monster House" in the near future. Other new products to be launched include "Harry Potter: the Magic Awakening", "the Hidden World of the Beautiful woman", "oracle" mobile games, "Diablo: immortality", "Bao Ke Dream Adventure" and "Marvel duel".

Youdao's online education business continued to develop, with net income from learning services and products reaching 442 million yuan (US $62.44 million) in the first quarter, an increase of 226.4% over the same period last year. Net operating cash flow returned to positive in the current quarter, reaching 49.7 million yuan (US $7 million).

NetEYun music net income maintained significant year-on-year growth, the number of paying members continues to increase.

At the beginning of 2020, an unexpected epidemic swept the world, which had an impact on enterprises of various countries. In the face of the severe situation and challenges, we still forge ahead. We believe that with the joint efforts of all parties at home and abroad, we will certainly be able to tide over the difficulties, "said Ding Lei, chief executive and director of NetEase, Inc." NetEase, Inc's performance in the first quarter was good: net income increased by 18% compared with the same period last year. Net profit from continuing operations, which belongs to the shareholders of NetEase, Inc, increased by nearly 30 per cent year-on-year. "

"the net income from online games reached 13.5 billion yuan this quarter, and flagship products and other new games have performed well. This is due to our increasingly rich and diversified types of games and the strong vitality of our game business. At the same time, NetEase, Inc has made good achievements in Japan and other overseas markets, which has further strengthened our confidence in implementing the internationalization strategy. "

"other core businesses are also developing steadily. Youdao and NetEYun Music are making orderly progress towards their 2020 goals. In the future, NetEase, Inc will continue to carry out its mission to provide more high-quality and innovative products and services to surprise users around the world and enhance their user experience. "Ding Lei concluded.

After the announcement of the results, the company's shares rose more than 2% in after-hours trading to more than $400.

In addition, the Hong Kong Economic Daily reported that NetEase, Inc plans to launch Hong Kong IPO as soon as June, raising US $1 billion to US $2 billion (about HK $7.8 billion to HK $15.6 billion). The second listing of NetEase, Inc and JD.com is expected to differ by one to two weeks.