网易公司 NetEase, Inc. (NTES) 2006年年度报告「NASDAQ」.pdf

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1、Table of ContentsLetter to Our Fellow Shareholders .2-3Our Business .4-10Managements Disussion and Analysis of Operatingand Financial Review and Prospects .11-46Managements Report on Internal Control OverFinancial Reporting,Report of IndependentRegistered Public Accounting Firm andConsolidated Finan

2、cial Statements .47-90Corporate Information.91-92Letter to Our Fellow Shareholders2Dear Fellow Shareholders,NetEase delivered a strong 2006,with solid growth rates in total revenues and net profit.We madesignificant progress with online games,online game upgrades and development and the expansion of

3、our portal strategy in 2006.At the end of December 2006,NetEase ranked second for percentage ofinternet users reached among Chinese internet portals,and ranked number one free email services inChina with approximately 80 million 60-day active email users.In addition,NetEases blog communityhas been g

4、rowing since its official launch in last October.All these outstanding achievements representvaluable testaments that reinforce NetEases leadership in the Chinese Internet technology market.In 2006,on a year-over-year basis,total revenues grew 30.9%,online game revenues grew 34.5%advertising revenue

5、s grew 18.5%,and net profit grew 33.3%.We ended the year with a sizeable cashbalance of US$504.6 million to support our game development,portal initiatives and marketingefforts.Leadership in the Chinese MMORPG MarketNetEase maintains its leadership position in self-developed,massively multi-player o

6、nline role-playinggames(MMORPG)market share in China.Our substantial increase in online game revenues in 2006was primarily attributable to continuing growth in the popularity of Fantasy Westward Journey.Ouronline games continue to dominate the Chinese market.Once again,Fantasy Westward Journey and W