1、2Dear Fellow Shareholders:2002 was a remarkable year for NetEase.Under the leadership of a newmanagement team,we focused on putting the difficulties from the previous yearbehind us and strived throughout the year to grow our business,maintain opencommunications with our investors,and enhance shareho
2、lder value.We areparticularly pleased that following our resumption of trading on Nasdaq on January 2,2002,we ended the year as the best performing stock on Nasdaq in 2002.More than the rise in our share price,however,we are proud of the wide range ofaccomplishments we made throughout the year,in pa
3、rticular the fact that wewere the first Chinese Internet portal to announce-in the second quarter of 2002-a net profit.Moreover,in the fourth quarter of the year our net profit reachedUS$5.2 million,or US$0.17 per American Depositary Share,with an operatingprofit of US$4.7 million.For the year as a
4、whole,our revenues grew more than seven-fold over 2001,duemainly to the successful implementation of our strategy to diversify our revenuestreams.Our three areas of focus-Internet Portal,Wireless Value-Added Servicesand Online Games-all experienced significant growth during 2002.At year-end,we conti
5、nued to be a major force in the Chinese Internet market with over 95million registered accounts,an increase of more than 20%per quarter.We areseeing our products and services being particularly well received by young peoplelocated in Chinas more affluent coastal cities,which is the largest demograph
6、icgroup in our base of registered users.The major portion of our revenue growth in 2002 was generated in the wirelessvalue-added services area,particularly our products and services offered to userswho transmit and receive short text messages via their mobile phones(known asshort messaging services,