$NTES

NetEase, Inc.

CIK:0001110646|SEC Filings

Consolidated Statements of Operations and Comprehensive Income ¥ in Thousands, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2025 CNY (¥) ¥ / shares shares	Dec. 31, 2025 USD ($) $ / shares shares	Dec. 31, 2024 CNY (¥) ¥ / shares shares	Dec. 31, 2023 CNY (¥) ¥ / shares shares
Consolidated Statements of Operations and Comprehensive Income
Net revenues	¥ 112,625,807	$ 16,105,276	¥ 105,295,236	¥ 103,468,159
Cost of revenues	(40,223,939)	(5,751,947)	(39,488,152)	(40,404,765)
Gross profit	72,401,868	10,353,329	65,807,084	63,063,394
Operating expenses:
Selling and marketing expenses	(14,619,702)	(2,090,590)	(14,147,657)	(13,969,460)
General and administrative expenses	(4,228,189)	(604,623)	(4,550,625)	(4,899,880)
Research and development expenses	(17,719,110)	(2,533,799)	(17,524,812)	(16,484,910)
Total operating expenses	(36,567,001)	(5,229,012)	(36,223,094)	(35,354,250)
Operating profit	35,834,867	5,124,317	29,583,990	27,709,144
Other income/(expenses):
Investment income, net	731,511	104,605	355,286	1,306,722
Interest income, net	3,953,486	565,341	4,920,915	4,120,418
Exchange (losses)/gains, net	(775,937)	(110,958)	255,430	(132,999)
Other, net	1,086,543	155,374	602,134	1,053,642
Income before tax	40,830,470	5,838,679	35,717,755	34,056,927
Income tax	(6,032,686)	(862,663)	(5,461,408)	(4,699,704)
Net income	34,797,784	4,976,016	30,256,347	29,357,223
Accretion of redeemable noncontrolling interests	(4,266)	(610)	(3,919)	(3,589)
Net loss/(income) attributable to noncontrolling interests and redeemable noncontrolling interests	(1,033,718)	(147,820)	(554,819)	62,918
Net income attributable to the Company's shareholders	33,759,800	4,827,586	29,697,609	29,416,552
Other comprehensive income
Foreign currency translation adjustment	(1,345,664)	(192,427)	424,356	221,872
Total comprehensive income	33,452,120	4,783,589	30,680,703	29,579,095
Comprehensive loss/(income) attributable to noncontrolling interests and redeemable noncontrolling interests	(932,631)	(133,364)	(589,148)	26,040
Comprehensive income attributable to the Company's shareholders	¥ 32,519,489	$ 4,650,225	¥ 30,091,555	¥ 29,605,135
Net income per share, basic (in CNY and dollars per share) \| (per share)	¥ 10.59	$ 1.52	¥ 9.28	¥ 9.15
Net income per share, diluted (in CNY and dollars per share) \| (per share)	10.48	1.5	9.19	9.05
Net income per ADS, basic (in CNY and dollars per share) \| (per share)	52.97	7.58	46.4	45.73
Net income per ADS, diluted (in CNY and dollars per share) \| (per share)	¥ 52.42	$ 7.5	¥ 45.95	¥ 45.23
Weighted average number of ordinary shares outstanding, basic (in shares)	3,186,454	3,186,454	3,200,453	3,216,475
Weighted average number of ADS outstanding, basic (in shares)	637,291	637,291	640,091	643,295
Weighted average number of ordinary shares outstanding, diluted (in shares)	3,218,174	3,218,174	3,230,602	3,252,029
Weighted average number of ADS outstanding, diluted (in shares)	643,635	643,635	646,120	650,406

Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2025 CNY (¥)	Dec. 31, 2025 USD ($)	Dec. 31, 2024 CNY (¥)	Dec. 31, 2023 CNY (¥)
Cash flows from operating activities:
Net income	¥ 34,797,784	$ 4,976,016	¥ 30,256,347	¥ 29,357,223
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,247,427	321,378	2,417,894	3,055,260
Fair value changes of equity security, other investments and financial instruments	(1,159,449)	(165,799)	(841,901)	(535,316)
Impairment losses on investments	2,724,476	389,595	1,291,627	469,159
Share-based compensation cost	3,647,662	521,609	3,882,939	3,242,810
Allowance for expected credit losses	367,513	52,554	68,934	61,146
Losses/(gains) on disposal of property, equipment and software	(30,286)	(4,331)	(4,758)	5,676
Unrealized exchange losses/(gains)	688,913	98,513	(719,162)	119,935
Gains on disposal of long-term investments, business, subsidiaries and other financial instruments	(440,913)	(63,050)	(272,415)	(63,784)
Deferred income taxes	(1,254,125)	(179,337)	320,726	131,437
Share of results on equity method investees and revaluation results from previously held equity interest	1,537,721	219,891	155,568	(473,947)
Fair value changes of short-term investments	(1,108,409)	(158,500)	(530,607)	(414,207)
Changes in operating assets and liabilities:
Accounts receivable	264,073	37,762	716,375	(1,470,374)
Inventories	(117,634)	(16,821)	123,780	296,764
Prepayments and other assets	100,708	14,401	(809,590)	87,556
Accounts payable	(71,615)	(10,241)	91,142	(559,419)
Salary and welfare payables	128,573	18,386	(210,918)	(62,917)
Taxes payable	1,112,836	159,133	187,788	(244,261)
Contract liabilities	5,435,054	777,202	2,022,196	1,161,861
Accrued liabilities and other payables	1,869,491	267,334	1,530,848	1,166,673
Net cash provided by operating activities	50,739,800	7,255,695	39,676,813	35,331,275
Cash flows from investing activities:
Purchase of property, equipment and software	(1,065,376)	(152,347)	(1,275,400)	(2,301,554)
Proceeds from sale of property, equipment and software	45,886	6,562	14,533	10,302
Purchase of intangible assets, content and licensed copyrights	(987,089)	(141,151)	(930,988)	(1,974,323)
Net changes of short-term investments with terms of three months or less	(6,874,340)	(983,017)	(408,256)	(1,777,687)
Purchase of short-term investments with terms over three months	(21,640,000)	(3,094,479)	(8,235,000)
Proceeds from maturities of short-term investments with terms over three months	17,575,388	2,513,247	2,853,778	5,378,510
Investment in equity method investees	(268,860)	(38,446)	(513,397)	(444,557)
Investment / prepayment for other equity investments and acquisition of subsidiaries	(4,276,863)	(611,584)	(589,629)	(2,387,129)
Proceeds from disposal of long-term investments, businesses, subsidiaries and other financial instruments	3,041,482	434,926	2,822,585	152,564
Placement/rollover of matured time deposits	(166,696,968)	(23,837,349)	(154,792,305)	(124,693,598)
Proceeds from maturities of time deposits	147,925,757	21,153,102	179,377,113	111,417,969
Change in other long-term assets	39,639	5,668	(406,632)	(423,928)
Net cash (used in)/provided by investing activities	(33,181,344)	(4,744,868)	17,916,402	(17,043,431)
Cash flows from financing activities:
Net changes from short-term loans with terms of three months or less	243,636	34,840	(6,656,988)	(13,654,704)
Proceeds of loans with terms over three months	5,552,800	794,040	13,920,080	13,569,160
Payment of loans with terms over three months	(11,595,012)	(1,658,065)	(14,739,347)	(8,219,472)
Dividends paid to shareholders	(13,825,681)	(1,977,046)	(11,165,338)	(8,013,903)
Net amounts received related to capital contribution from or repurchase of noncontrolling interests shareholders	103,808	14,844	136,006	86,159
Net amounts paid for repurchase of NetEase's ADSs/purchase of subsidiaries' ADSs and shares	(639,335)	(91,424)	(8,830,115)	(5,234,294)
Net cash used in financing activities	(20,159,784)	(2,882,811)	(27,335,702)	(21,467,054)
Effect of exchange rate changes on cash, cash equivalents and restricted cash held in foreign currencies	(382,454)	(54,690)	10,752	(202,457)
Net (decrease)/increase in cash, cash equivalents and restricted cash	(2,983,782)	(426,674)	30,268,265	(3,381,667)
Cash, cash equivalents and restricted cash, at the beginning of the year	54,474,923	7,789,810	24,206,658	27,588,325
Cash, cash equivalents and restricted cash, at end of the year	51,491,141	7,363,136	54,474,923	24,206,658
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net	6,427,207	919,078	5,189,585	4,895,752
Cash paid for interest expenses	387,982	55,481	489,622	779,872
Supplemental schedule of non-cash investing and financing activities:
Fixed asset purchases financed by accounts payable and accrued liabilities	¥ 673,296	$ 96,280	¥ 1,024,116	¥ 1,026,852

Consolidated Balance Sheets ¥ in Thousands, $ in Thousands	Dec. 31, 2025 CNY (¥)	Dec. 31, 2025 USD ($)	Dec. 31, 2024 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 47,167,904	$ 6,744,921	¥ 51,383,310
Time deposits	92,639,378	13,247,255	75,441,355
Restricted cash	4,319,344	617,658	3,086,405
Accounts receivable, net	5,337,819	763,298	5,669,027
Inventories	689,183	98,552	571,548
Prepayments and other current assets, net	7,658,346	1,095,128	6,416,868
Short-term investments	22,803,503	3,260,858	10,756,143
Total current assets	180,615,477	25,827,670	153,324,656
Non-current assets:
Property, equipment and software, net	8,425,327	1,204,806	8,520,101
Land use rights, net	4,047,355	578,764	4,172,465
Operating lease right-of-use assets, net	320,298	45,802	541,071
Deferred tax assets	2,831,423	404,888	1,113,435
Time deposits	2,995,000	428,279	3,025,000
Restricted cash	3,893	557	5,208
Long-term investments	18,462,883	2,640,157	20,206,356
Other long-term assets	3,713,404	531,009	5,083,258
Total non-current assets	40,799,583	5,834,262	42,666,894
Total assets	221,415,060	31,661,932	195,991,550
Current liabilities:
Accounts payable	643,164	91,971	720,549
Salary and welfare payables	4,889,708	699,219	4,683,009
Taxes payable	3,874,143	553,996	2,759,185
Short-term loans	6,384,417	912,959	11,805,051
Contract liabilities	20,514,540	2,933,540	15,299,222
Accrued liabilities and other payables	15,949,772	2,280,787	14,229,032
Short-term operating lease liabilities	113,212	16,189	171,609
Total current liabilities	52,368,956	7,488,661	49,667,657
Non-current liabilities:
Deferred tax liabilities	2,637,258	377,123	2,173,117
Long-term operating lease liabilities	232,113	33,192	412,600
Long-term loans			427,997
Other long-term liabilities	1,072,724	153,397	816,041
Total non-current liabilities	3,942,095	563,712	3,829,755
Total liabilities	56,311,051	8,052,373	53,497,412
Commitments and contingencies
Redeemable noncontrolling interests	91,319	13,058	84,272
Shareholders' equity:
Ordinary shares, US$0.0001 par value: 1,000,300,000,000 shares authorized, 3,219,564,581 shares issued as of December 31, 2024 and 2025; 3,167,959,016 and 3,192,111,251 shares outstanding as of December 31, 2024 and 2025, respectively	2,631	376	2,631
Additional paid-in capital	9,837,460	1,406,738	9,860,962
Treasury stock	(1,518,573)	(217,153)	(4,473,063)
Statutory reserves	2,457,371	351,400	1,954,872
Accumulated other comprehensive income/(loss)	(237,770)	(34,001)	1,006,807
Retained earnings	149,755,000	21,414,680	130,333,397
NetEase, Inc.'s shareholders' equity	160,296,119	22,922,040	138,685,606
Noncontrolling interests	4,716,571	674,461	3,724,260
Total equity	165,012,690	23,596,501	142,409,866
Total liabilities, redeemable noncontrolling interests and shareholders' equity	¥ 221,415,060	$ 31,661,932	¥ 195,991,550