NetEase, one of China'sleading internet and online game services providers, today announced its unaudited financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Financial Highlights

• Net revenues were RMB20.5 billion (US$3.1 billion), an increase of 20.2% compared with the first quarter of 2020.

• Online game services net revenues were RMB15.0 billion(US$2.3 billion), an increase of 10.8% compared with the first quarter of 2020.

• Youdao net revenues were RMB1.3 billion( US$204.5 million), an increase of 147.5% compared with the first quarter of 2020.

• Innovative businesses and others net revenues were RMB4.2 billion(US$640.4 million), an increase of 39.7% compared with the first quarter of 2020.

• Gross profit was RMB11.1 billion(US$1.7 billion), an increase of 17.9% compared with the first quarter of 2020.

• Total operating expenses were RMB6.8 billion(US$1.0 billion), an increase of 38.6% compared with the first quarter of 2020.

• Net income attributable to the Company's shareholders was RMB4.4 billion(US$677.5 million). Non-GAAP net income attributable to the Company's shareholders was RMB5.1 billion(US$775.5 million).

• Basic net income per share was US$0.20(US$1.01 per ADS). Non-GAAP basic net income per share was US$0.23(US$1.16 per ADS).
  

Quarterly Dividend

The board of directors has approved a dividend of US$0.0600per share (US$0.3000per ADS) for the first quarter of 2021, to holders of ordinary shares and holders of ADSs as of the close of business on June 3, 2021, Hong Kong Time and New York Time, respectively, payable in U.S.dollars. For holders of ordinary shares, in order to qualify for the dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company's Hong Kongbranch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kongno later than 4:30 p.m.on June 3, 2021(Hong Kong Time). The payment date is expected to be on June 15, 2021 for holders of ordinary shares and on or around June 18, 2021for holders of ADSs.