NetEase, inc. - NTES STOCK NEWS

NetEase, Inc. (NASDAQ: NTES) announced the resignation of Mr. Lun Feng from its board of directors, effective December 31, 2022, citing personal reasons. The board has five members, including four independent directors, and stated there are no other matters requiring shareholder attention. The company, a leading internet technology provider in China, is known for its gaming services and various subsidiaries, including Youdao and Cloud Music. NetEase continues to focus on delivering engaging online experiences and maintaining strong ESG initiatives.

Cloud Music Inc. (HKEX: 9899), a leading interactive music streaming service in China, has signed a licensing agreement with Pony Canyon Inc., enhancing its music catalog with popular J-pop and anime content. This partnership will allow Cloud Music to distribute Pony Canyon's extensive music portfolio, which includes renowned artists and anime series. The collaboration aims to enrich content offerings for Chinese audiences and further establish Cloud Music as a destination for diverse music interests, especially among the youth.

As of December 8, 2022, Cloud Music Inc. reported that digital album sales of South Korean girl group (G)I-DLE have surpassed RMB20 million on its platform, NetEase Cloud Music. The group's first album, I NEVER DIE, sold over 560,000 copies and generated over 110 million streams. Their latest release, I LOVE, reached over 510,000 copies sold since its October 2022 launch, showcasing the platform's strong marketing and copyright management. With a dedicated fan base of 1.3 million, (G)I-DLE’s success highlights NetEase Cloud Music’s robust position in China's interactive music streaming market.

Cloud Music Inc. (HKEX: 9899), a leading music streaming service in China, has renewed its licensing agreement with Avex, a prominent Japanese entertainment conglomerate. This agreement allows Cloud Music to distribute Avex's extensive music catalog in China. Both companies will collaborate to promote J-pop artists and enhance user engagement. Cloud Music continues to expand its partnerships with top record labels, aiming to enrich its content offerings and cater to diverse musical preferences among its user base.

NetEase, Inc. (NASDAQ: NTES) reported its Q3 2022 financial results with net revenues of RMB24.4 billion (US$3.4 billion), marking a 10.1% year-over-year increase. Key revenue drivers included games revenues at RMB18.7 billion (up 9.1%), and Cloud Music revenue rising 22.5% to RMB2.4 billion. Gross profit reached RMB13.7 billion (up 16.4%), while net income attributable to shareholders was RMB6.7 billion (US$941.8 million). The company also announced a dividend of US$0.0870 per share, effective December 2022. Despite licensing agreements for Blizzard titles expiring in January 2023, the impact is deemed minimal.

NetEase, Inc. (NASDAQ: NTES) announced that its licenses for Blizzard Entertainment games in China will expire on January 23, 2023, and will not be renewed. Affected titles include World of Warcraft, Hearthstone, and Overwatch. Despite extensive negotiations, no agreement was reached due to significant differences in key terms. However, the financial impact on NetEase is expected to be minimal, as these games represented a small percentage of total revenues. The publishing of Diablo Immortal will continue under a separate agreement.

NetEase, Inc. (NASDAQ: NTES) will announce its financial results for Q3 2022 on November 17, 2022, prior to U.S. market opening. The earnings call will start at 7:00 a.m. Eastern Time, featuring management discussions and a Q&A session. Interested participants can join by calling 1-914-202-3258 using conference ID 10026570. A replay will be available until November 24, 2022. NetEase is recognized for its strong in-house R&D capabilities and leads in online gaming services in China, with additional ventures in learning and music.

NetEase, a major player in China's internet and online game services, has acquired Quantic Dream, a renowned independent video game developer known for titles like Heavy Rain and Detroit: Become Human. The acquisition empowers NetEase to expand its European presence and enhances Quantic Dream's creative potential by leveraging NetEase's resources. Quantic Dream will maintain its operational independence while continuing to develop innovative games, including Star Wars Eclipse. This strategic move is expected to redefine the interactive entertainment landscape.

Cloud Music Inc. reported its financial results for the first half of 2022, showcasing a revenue increase of 33.8% to RMB 4.3 billion compared to RMB 3.2 billion in 2021. The gross profit improved to RMB 537.1 million, marking a significant recovery from a gross loss of RMB 12.9 million last year. The net loss narrowed by 92.9% to RMB 270.8 million. Monthly paying users in online music services rose sharply to 37.6 million, indicating growth in subscription revenue. The company continues to enhance its community ecosystem and monetization efforts despite industry challenges.