1、2Dear Fellow Shareholders,2005 was another strong year for NetEase with impressive growth in our online games and advertising businesses.Totalgross revenues for the full year increased 76.8%and net profits rose 111.1%from 2004.NetEase became the number oneonline game operator in China in terms of se
2、lf-developed massively multi-player online role-playing games(MMORPGs),and also had one of the most popular websites with 786 million page views in December 2005.NetEase also remains thelargest email provider in China.We believe that our extensive user base and loyalty forms a powerful audience for
3、both ourservices and those of our advertisers.In 2005,we invested in a series of marketing activities to further strengthen our brand image and continue to grow our userbase.Our marketing campaigns consisted of corporate branding and announcements about our services through outdoor,print and online
4、advertisements.We also conducted a talent search event offering winners opportunities to be NetEasespokespersons and gain nationwide exposure by appearing in our advertising campaigns.The marketing results have beenvery encouraging as both page views and unique visits to our websites grew substantia
5、lly during the year.Online games business once again outpaces industry growthNetEase is a clear leader in both game operation and development as our online game business continued to outpace theindustry in 2005.Our total gross revenues from online games increased 119.3%in 2005 from the prior year,co
6、mpared toindustry growth of 52.6%according to IDC.Chinas online game market is one of the largest in the world.According toIDC,there were an estimated 26 million users in 2005 compared to 20 million in 2004.According to IDC,online gamesales in China are expected to grow by approximately 35.5%annuall