Netease - NTES STOCK NEWS

IMVU Inc. has secured over $35 million in a strategic investment led by Structural Capital and NetEase, aimed at enhancing product development and expanding its growing business. This funding supports the rebranding of IMVU as Together Labs, which emphasizes authentic human connections in virtual spaces. The company experienced significant growth in 2020, boasting over 7 million monthly active users and the launch of VCOIN, enabling users to engage in peer-to-peer transactions. Together Labs is poised for further growth with the upcoming WithMe platform.

NetEase Cloud Music has set a new Guinness World Record with over 786,000 viewers for a TFBOYS concert, becoming the most viewed paid concert on a bespoke platform. This event, streamed on August 22, 2020, highlights the platform’s innovative approach during the Covid-19 pandemic by diversifying entertainment and monetization strategies. NetEase continues to develop online live shows, appealing primarily to a younger audience. The concert employed advanced technologies like mixed reality and augmented reality to enhance user experience, reinforcing NetEase's position as a leader in interactive music streaming in China.

NetEase Cloud Music has launched a new initiative called "Music Talent" to support content creators in China's thriving music industry. The program aims to help artists earn over RMB1 million annually while fostering the growth of music multi-channel network companies. Since 2016, NetEase Cloud Music has promoted original music and creativity, showcasing over 200,000 independent musicians as of October 2020. The platform will provide certified talents with support such as traffic referrals, revenue incentives, and professional guidance to enhance their content creation capabilities.

NetEase reported its third-quarter financial results for 2020, showcasing robust growth with net revenues of RMB18.7 billion (US$2.7 billion), a 27.5% increase year-over-year. Online game services contributed RMB13.9 billion (US$2.0 billion), marking a 20.2% year-over-year rise. Youdao's revenues soared 159% to RMB896 million (US$132 million). However, total operating expenses rose by 54.7% to RMB7.0 billion (US$1.0 billion), impacting net income, which fell to RMB3.0 billion (US$441.6 million) from RMB4.5 billion in the previous quarter. The company announced a dividend of US$0.195 per ADS.

NetEase, Inc. (NASDAQ: NTES) will announce its financial results for the third quarter of 2020 on November 19, prior to U.S. market opening. A conference call for discussion and Q&A will follow at 7:00 a.m. Eastern Time on the same day. Interested participants can join by calling 1-646-828-8143 with conference ID 5158324. The live webcast and call replay will be accessible on NetEase's Investor Relations site for 12 months. The company is recognized for providing diverse online services and operates popular games in China and internationally.

NetEase (NASDAQ: NTES) has launched the sale of Kweichow Moutai's 53% ABV Feitian Moutai on its e-commerce platform, Yanxuan, for RMB1,499 (approx. US$220). This marks a key step in their strategic partnership, enhancing access for younger consumers. Kweichow Moutai, valued at approximately US$300 billion, aims to reach a broader audience through NetEase's marketing capabilities. Both companies plan to expand their collaboration beyond this initial product offering.

NetEase, Inc. (NASDAQ: NTES) announced a ratio change for its American Depositary Shares (ADSs), shifting from 1 ADS for every 25 ordinary shares to 1 ADS for every 5 ordinary shares. This will operate similarly to a five-for-one ADS split. Existing ADS holders will receive four additional ADSs for each ADS held by the close of business on September 30, 2020, effective October 1, 2020. The trading price adjustment is expected to be reflected on the NASDAQ Global Select Market on October 2, 2020. No action is needed from ADS holders, and there will be no change to the ordinary shares.

NetEase Cloud Music has formed a strategic partnership with BMG to access its vast global music catalog and collaborate on various projects, including live concerts and online events. This partnership aims to enhance the exposure of BMG's international artists on China's popular music platform, which boasts over 800 million registered users. The initiative will also include development projects like the SoundLabs series, allowing Chinese musicians to engage with top songwriters globally. This collaboration signals a significant move towards expanding NetEase's content offerings and user experience in the competitive music streaming sector.

NetEase, Inc. (NASDAQ: NTES) reported strong second-quarter 2020 results, with net revenues rising by 25.9% to RMB18.2 billion (US$2.6 billion) year-over-year.

Online game services generated RMB13.8 billion (US$2.0 billion), a 20.9% increase. Youdao's revenues surged by 93.1% to RMB623.3 million (US$88.2 million).

Gross profit rose by 26.6% to RMB9.8 billion (US$1.4 billion), despite operating expenses increasing by 40.1% to RMB5.6 billion (US$795.8 million).

Net income was RMB4.5 billion (US$642.3 million), with a basic EPS of US$4.95.