Analysts' Targets Oppenheimer & Co. Inc. $38 Outperform Thursday, May 21, 2009 Roth Capital Partners $28 Buy Thursday, February 26, 2009 Rodman & Renshaw Inc. $25 Buy Tuesday, January 27, 2009 Address SP Tower D 26th Floor Tsinghua Science Park Building 8 No 1 Zhongguancun East Road Haidian District Beijing, 100084 China - Map Phone: 86 10 8255 8163 Fax: 86 10 8261 8163 http://corp.163.com Exchange NASDAQ Index Membership None Sector IT Services Industry Internet Information Providers Held by these Mutual Funds Legg Mason Opportunity Prim Matthews Pacific Tiger Matthews China Allianz RCM Technology Instl Alger Capital Appreciation B Alger Capital Appreciation Instl I Hartford Small Company HLS IA American Funds New World A Putnam New Opportunities A Hartford Capital Appreciation HLS IA Competitors PWRD GA Shanda Interactive Entertainment The9 Executives Mr. William Lei Ding Founder Chief Exec. Officer Mr. Onward Choi Acting Chief Financial Officer and Financial Controller Mr. Michael Tong Co-Chief Operating Officer Mr. Zhan Zhonghui Co-Chief Operating Officer Mr. Li Yong Head of Enriching News Contents Financial Snapshot Revenue Net Income EPS EBITDA Long Term Debt 2007 $ 303.4 M $ 173.3 M $ 1.3 $ 178.9 M $ 0.0 2006 $ 277.3 M $ 159.2 M $ 1.1 $ 174.6 M $ 100.0 M Description NetEase.com, Inc. was incorporated in the Cayman Islands on July 6, 1999. Through its subsidiaries and contracts with its affiliates Guangzhou NetEase and Guangyitong Advertising and their respective shareholders, it operates an interactive online community in China and is a major provider of Chinese language content and services through its online games, Internet portal and wireless value-added services businesses. NetEase's online games business focuses on offering massively multi-player online games, more specifically role-playing games, to the Chinese market. These MMORPGs, as they are commonly known, are played over the Internet in 'virtual worlds' that exist on networked game servers to which thousands of players simultaneously connect and interact. It develops and operates MMORPGs that are targeted at or localized to the Chinese market, and it strives to provide the highest quality game playing experience to oits users. The NetEase websites provide Internet users with Chinese language online services centered around three core service categories, content, community and communication. The Company's range of content appeals to a large audience group spanning all age groups. The NetEase content channels provide news, information and online entertainment to the Chinese public. The websites consolidate and distribute content from more than one hundred international and domestic content providers. Content is distributed through various channels, including channels focusing on news, entertainment, sports, finance, information technology and automobiles. The NetEase websites provide an array of free and fee-based community and communication services, including e-mail, blogging, photos, instant messaging, matchmaking, alumni directories, clubs, e-cards, chat rooms and community forums. The Company's online advertising offerings include banner advertising, channel sponsorships, direct e-mail, interactive media-rich sites, sponsored special events, games, contests and other activities. It offers a range of wireless value-added services, or WVAS, which allow users to receive news and other information, such as stock quotes and e-mails, download ringtones and logos for their mobile phones and participate in matchmaking communities and interactive games. The Company's Internet portal business, which is conducted through the NetEase websites, offers Chinese Internet users a network of Chinese language-based online content channels, community and communication services, including e-mail, instant messaging, and blogging. It employs a variety of traditional and online marketing programs and promotional activities to build its brand as part of its overall marketing strategy. A number of companies offer competitive products or services in China, its main operating market. These include Perfect World Company Limited, or Perfect World, Giant Interactive Group Inc, or Giant, Shanda Interactive Entertainment Limited, or Shanda, The 9 Limited, or The9, Sina Corporation, or Sina, Sohu.com, Inc., or Sohu, Tom Online Inc., or Tom.com, 263.net, Linktone Ltd., or Linktone, Tencent, Chinadotcom Corporation, or Chinadotcom, Baidu and 21cn.com. The Chinese government has enacted a regulatory scheme governing the operation of Internet-related businesses, such as telecommunications, Internet information services, and international connection to computer information networks, information security and censorship
$35.81 (06/01/09)
