NTES NetEase

Margaret Shi Investor Relations-Director
Charles Yang Chief Financial Officer
William Ding Chief Executive Officer
Jialong Shi Nomura
Alex Poon Morgan Stanley
Alicia Yap Citi
Alex Yao JPMorgan
Thomas Chong Jefferies
Kenneth Fong Credit Suisse
Call transcript
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Good day and welcome to the NetEase 2020 Fourth Quarter and Full Year’s Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Margaret Shi, IR Director of NetEase. Please go ahead, ma'am.

Margaret Shi

Thank you, operator. liability today the forward-looking to Reform company the Harbor discussion future relating qualify Act. the the Safe of by performance and from note will Securities statements contain to for US Please Private established Litigation as are intended risks Such certain guarantees subject not and assumptions are future performance uncertainties, statements are other and of to and factors.

on the Form this these beyond materially discussion. Hong could cause Kong the press of with Securities to differ from Some the mentioned law. that and release the does on Exchange Stock general risk Exchange. Annual of results XX-F The Commission, company filings actual undertake could business A control included update announcement including and to these discussion of required affect the company company's any in certain the risks and obligation today's as by those Report are filings website is in its and not factors forward-looking of results and financial the except information of NetEase’s

today's certain measures only. comparison purposes non-GAAP management discuss During for financial will call,

For financial measures release the please reconciliation and fourth a earnings XXXX results, year and quarter full see issued GAAP to earlier of definition news non-GAAP of financial today. non-GAAP a

being reminder, this a As conference recorded. is

addition, In conference NetEase an call of website webcast replay corporate and a will at investor this presentation on be available

behalf NetEase management turn Mr. prepared Mr. to is now of on senior from who over William Chief call I the our Yang, read Charles and Charles, on Chief Executive call William. the our today Officer; us Financial remarks Joining the will will Ding, Officer.

Charles Yang

everyone for thank and in participating Margaret you, today's you, call. Thank

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Instructions] first the Shi will of [Operator from from take Nomura. We line question our Jialong

line Please is proceed. open. Your

Jialong Shi

for management. evening, Thanks my Thanks. question. Good taking

NetEase revenue peers paid average is in We for media Chinese. third-party Android the revenue a [Foreign of much mobile app heard is stores? by game app Android this revenue negotiate my native's contributed the lower ask third-party from first gaming was of share How to channels? For trying part question revenue of by me one what third-party stores. share to Language] Let online version of charged

partners to far? so has Just you also with about how's channel this the did talk revenue wonder, if if NetEase your share. And started progress

William Ding

[Foreign Language]

Margaret Shi

favorable all XX%. few I'll our help has more as the high It's up FWJ. the obviously sharing a native probably China to sharing translating. of The around as true ratio such among market highest enjoys around revenue world, as games a XX% the

is now Apple our XX% in environment the partners is gaming And unsustainable to reasonable Chinese higher we more to in so than and to providers. international China very right much work the we'd with see, it's partners about like And the industry. international seeing our content we it's Apple think how charging the charging unhealthy probably create to with rate. providers healthy be see channel are we way because the with – be a more want And closely content to sync for a we peers with the

Charles Yang

question. which the channels of ballpark channel a channels very, supplement again our Jialong providers earlier a iOS generated percentage to in content roughly is contribution channel very from were China high revenues our game a coming half of is coming the of That's your through from our only iOS And ballpark on split roughly part one-third few Android split. the can from game split have remainder official such and channels. the On

Jialong Shi

Thanks the color. for

Margaret Shi

you. Thank

Charles Yang

the question, Operator, Okay. next please.



We Please will The of open. line take is our next Alex question line from Stanley. Morgan from go Poon the ahead.

Alex Poon

overseas revenue to I'll because Language] target a a Back years growth three outside of -- COVID-XX [Foreign accelerated and revenue we in In the XX%. following has China the XXXX of lot. myself. five target especially had of translate

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Unidentified Company Representative

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A –Charles Yang

second question introduction. overseas of question thinking on our of the strategy Alex second on your game part And of --

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what needs. our do to multiple to direction catering have is internationalization. So user multiple want to That I think we overall genres and multiple for is targeting geographies

Margaret Shi

Thank you Alex.

Next question.


will question the take Yap We our next from Alicia Citi. from line of

Alicia Yap

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William Ding

[Foreign Language]

Margaret Shi

Yes. I'll help translating.

going forms So be right. streaming. on Alicia, of helping is membership key for of musicians will to And the our for monetization continue music create music our original three independent own main focuses live you're creating and to about platforms. one content forward content, The advertising

one drivers that growth. in monetization memberships be to the sense of definitely So will our key

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existing So we video think when know-how. making to our about we short leverage want to mid-form

games, For example, in around to mid-form centered centered knowledge. interested we're short making or around video

[ph] within we called one So have NetEase Language]. we this Information World actually -- project have NetEase [Foreign

Chinese -- play X Year times we have on to during compared actually the previously. time increased our we we New the -- to X that realized noticed So videos

content hard we'll businesses, content music, -- you. around video medium creating centered et Thank continue key our on to short forward, is games, to going So work cetera. mid-form on

Alicia Yap

you. Thank

Margaret Shi

Alicia. you, Thank

Next question, please.


from line our of the question from take will JPMorgan. next Yao Alex We

Alex Yao

world? market question the my the the yourself well Do So you such as is gaming Language] domestic rest still to on of your industry? And PC resource in market. view for you. the want market, current outlook maintain allocate [Foreign just you the or in regarding How PC then as China you development, how PC in you think the new position portfolio? this gaming both Thank future strategically about R&D do do

William Ding

Language] [Foreign

Margaret Shi

our Yes. NetEase. both and mastermind [indiscernible] in The key outcome titles the behind -- many William from

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have games probably the we'll China. richest collection of in So PC

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Next please. question,


of the from our take question Thomas Jefferies. next will from Chong We line

line Your open. is

Thomas Chong

[Foreign you. development? my in-house live and accelerating streaming And the regulatory regulations. through taking regarding Can Language] And or Thanks management game the in games my for -- thoughts Will another then pace the the management first we use about their questions. about question is consider of question Thank online is operations. share the regarding overseas environment music? M&A follow-up

William Ding

Language] [Foreign

Margaret Shi

the about overseas of interested and these talked expansion, terms and in both games In we're self-developing through M&A. also

terms self-development it. can we of there's there's ways the of a things -- of number do In side, number

and IP use with our is famous example, invested very R&D actually good been On using success For in world. markets. side, global internal the we interested -- achieving the Potter, for in this in M&A to Harry are obviously We've collaborations things of through yes, develop around leveraging UK content active a -- greater very the you. own we've different Thank always partners globally.

Charles Yang

for on this music. in becoming Thomas entertainment. of the question we for and Well, asking regulatory game format and second general your more that more environment popular broadcasting see And is

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next question our of Credit take will We Suisse. line Kenneth from the from Fong

Kenneth Fong

Diablo, of Language] IP Harry ready? or the key [Foreign approximately right want when about you. Pokémon like we ask be to as timing pace and is it there across Immortal, quarters spread of Potter? that I are I launch to translate Would launch they competition, including will just different as will the well few avoid the Thank myself.

Charles Yang

Kenneth. you, Thank

for games. just very now a PC lineups For XXXX, including Junxiong just exciting our of and about are we and excited first our pipeline, introduced couple all, of William confident

all On Harry Pokémon have Immortal have now global noticed, all a the you approvals. these are developed side, the with intention mobile Diablo, And received for launch. already games as all Porter, and license their

then approval designed of do that games we exact So we and point about high-quality I confident part, are for some have these particular If the now game these license producers the a that been next. the confidence, as this highly got as introduced launching all, these our anticipated obtained, not this China are developed as early are we will all timing for not the first whether longevity, potentially studios. given rush we year, to and might concerned half that approval gamer overly this have community the launches, the in long-anticipated more be year. or games that But to of the this many we now within has in month be think, game of our

Kenneth Fong

much. you, very Thank


or session. I constraint, conference Due questions-and-answer turn the back this any Shi, additional concludes remarks. to for to that time Margaret today's closing will At time,

Margaret Shi

again once you, joining for today. Thank us

any or a If please to directly TPG you free day. have feel contact Investor questions, you. further us great Thank Relations. Have

Charles Yang

everyone. you Thank


everyone That participation. concludes today's your Thank conference. for you