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NetEase Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results

HANGZHOU, China, Feb. 20, 2025 /PRNewswire/ — NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, “NetEase” or the “Company”), a leading internet and game services provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

  • Net revenues were RMB26.7 billion (US$3.7 billion), a decrease of 1.4% compared with the same quarter of 2023.
    • Games and related value-added services net revenues were RMB21.2 billion (US$2.9 billion), an increase of 1.5% compared with the same quarter of 2023.
    • Youdao net revenues were RMB1.3 billion (US$183.6 million), a decrease of 9.5% compared with the same quarter of 2023.
    • NetEase Cloud Music net revenues were RMB1.9 billion (US$257.6 million), a decrease of 5.3% compared with the same quarter of 2023.
    • Innovative businesses and others net revenues were RMB2.3 billion (US$313.1 million), a decrease of 17.0% compared with the same quarter of 2023.
  • Gross profit was RMB16.3 billion (US$2.2 billion), a decrease of 3.3% compared with the same quarter of 2023.
  • Total operating expenses were RMB8.5 billion (US$1.2 billion), a decrease of 15.1% compared with the same quarter of 2023.
  • Net income attributable to the Company’s shareholders was RMB8.8 billion (US$1.2 billion). Non-GAAP net income attributable to the Company’s shareholders was RMB9.7 billion (US$1.3 billion).[1]
  • Basic net income per share was US$0.38 (US$1.89 per ADS). Non-GAAP basic net income per share was US$0.42 (US$2.09 per ADS).[1]

[1] As used in this announcement, non-GAAP net income attributable to the Company’s shareholders and non-GAAP basic and diluted net income per share and per ADS are defined to exclude share-based compensation expenses. See the unaudited reconciliation of GAAP and non-GAAP results at the end of this announcement.

Fourth Quarter 2024 and Early 2025 Operational Highlights

  • Introduced more new blockbuster games around the globe, reinforcing NetEase’s leadership across diverse genres and growing global momentum.
    • Marvel Rivals topped Steam’s global top sellers chart shortly after its launch on December 6, amassing over 10 million registered users within 72 hours and over 40 million to date. Its Season 1 update in January 2025 sparked another surge, claiming the No. 1 spots on Steam’s top sellers and most-played charts worldwide.
    • Where Winds Meet surpassed 3 million downloads in China within four days of its PC launch and topped the iOS download chart for approximately two weeks following its mobile launch. A successful release of the game’s mobile version drove total players across PC and mobile to over 15 million within two weeks.
    • Justice mobile game topped the iOS download charts in Hong Kong, Macau and Taiwan and reached No. 1 position on the iOS top grossing chart in Taiwan in January 2025.
  • Blizzard titles World of Warcraft and Hearthstone continued to generate strong enthusiasm from the Chinese gaming community, while the return of Overwatch 2 on February 19, 2025 further fueled players’ passion.
  • Established titles maintained their popularity, such as Westward Journey Online 2, Fantasy Westward Journey Online and mobile game, Infinite Borders, Onmyoji, Identity V, Naraka: Bladepoint and Justice franchise, demonstrating NetEase’s prowess in long-term game operations.
  • New game lineup for global markets, including Fragpunk, Destiny: Rising and MARVEL Mystic Mayhem, positioned to further diversify game portfolio.
  • Youdao continued to focus on technology-driven innovation and profitability enhancement, achieving a 10.3% year-over-year increase in operating profit during the fourth quarter and recording first-ever annual operating profit in 2024.
  • NetEase Cloud Music continued to drive quality development across its music-centric ecosystem, remaining committed to nurturing its unique community and enriching its distinctive content offering. It also further improved music-oriented monetization supported by enlarging subscription-based memberships.

“We boldly pushed the boundaries of innovation once again in 2024, delivering groundbreaking gaming experiences that captivated players worldwide,” said Mr. William Ding, Chief Executive Officer and Director of NetEase. “Our new hit titles not only redefined gameplay but also set new industry benchmarks, while our legacy franchises gained fresh momentum through striking enhancements in design, storytelling and immersive content. As our diverse game portfolio expands across more genres and engages an ever-growing global audience, we remain dedicated to fostering creativity and collaborating with top talent and strategic partners to shape the next wave of gaming trends.

“Beyond gaming, Youdao and NetEase Cloud Music maintained healthy development in 2024, led by our focus on meticulously crafted content and exceptional user experiences. Our enduring pursuit of innovation, global expansion and game diversification is fueling lasting value creation across the industries we serve and for our partners and shareholders alike,” Mr. Ding concluded.

Fourth Quarter 2024 Financial Results

Net Revenues

Net revenues for the fourth quarter of 2024 were RMB26.7 billion (US$3.7 billion), compared with RMB26.2 billion and RMB27.1 billion for the preceding quarter and the same quarter of 2023, respectively.

Net revenues from games and related value-added services were RMB21.2 billion (US$2.9 billion) for the fourth quarter of 2024, compared with RMB20.9 billion each for the preceding quarter and the same quarter of 2023. Net revenues from the operation of online games accounted for approximately 96.7% of the segment’s net revenues for the fourth quarter of 2024, compared with 96.8% and 93.4% for the preceding quarter and the same quarter of 2023, respectively. Net revenues from mobile games accounted for approximately 65.3% of net revenues from the operation of online games for the fourth quarter of 2024, compared with 70.8% and 76.7% for the preceding quarter and the same quarter of 2023, respectively. The change in revenue mix was mainly due to the increased net revenues from PC games, including certain licensed titles. 

Net revenues from Youdao were RMB1.3 billion (US$183.6 million) for the fourth quarter of 2024, compared with RMB1.6 billion and RMB1.5 billion for the preceding quarter and the same quarter of 2023, respectively. 

Net revenues from NetEase Cloud Music were RMB1.9 billion (US$257.6 million) for the fourth quarter of 2024, compared with RMB2.0 billion each for the preceding quarter and the same quarter of 2023. 

Net revenues from innovative businesses and others were RMB2.3 billion (US$313.1 million) for the fourth quarter of 2024, compared with RMB1.8 billion and RMB2.8 billion for the preceding quarter and the same quarter of 2023, respectively.

Gross Profit

Gross profit for the fourth quarter of 2024 was RMB16.3 billion (US$2.2 billion), compared with RMB16.5 billion and RMB16.8 billion for the preceding quarter and the same quarter of 2023, respectively.

The quarter-over-quarter and year-over-year decreases in games and related value-added services’ gross profit were primarily due to decreased net revenues from certain mobile games, partially offset by increased net revenues from PC games, including certain licensed titles.

The quarter-over-quarter and year-over-year decreases in Youdao’s gross profit were primarily due to decreased net revenues from its learning services.

The quarter-over-quarter decrease in NetEase Cloud Music’s gross profit was primarily due to decreased net revenues from social entertainment services.

The quarter-over-quarter increase in innovative businesses and others’ gross profit was primarily due to increased gross profit from Yanxuan and advertising services. The year-over-year decrease was primarily due to decreased gross profit from several businesses within the segment including advertising services.

Gross Profit Margin

Gross profit margin for games and related value-added services for the fourth quarter of 2024 was 66.7%, compared with 68.8% and 69.5% for the preceding quarter and the same quarter of 2023, respectively. The quarter-over-quarter and year-over-year decreases were mainly attributable to higher revenue contribution from licensed games which have comparatively lower gross profit margins.

Gross profit margin for Youdao for the fourth quarter of 2024 was 47.8%, compared with 50.2% and 49.9% for the preceding quarter and the same quarter of 2023, respectively. The quarter-over-quarter and year-over-year decreases were mainly due to decreased revenue contribution from its learning services.

Gross profit margin for NetEase Cloud Music for the fourth quarter of 2024 was 31.9%, compared with 32.8% and 30.3% for the preceding quarter and the same quarter of 2023, respectively. The year-over-year increase was mainly due to increased net revenues from sales of membership subscriptions and continued improvement in cost control measures. 

Gross profit margin for innovative businesses and others for the fourth quarter of 2024 was 37.8%, compared with 37.8% and 34.4% for the preceding quarter and the same quarter of 2023, respectively. The year-over-year increase was mainly due to increased gross profit margins from Yanxuan.

Operating Expenses

Total operating expenses for the fourth quarter of 2024 were RMB8.5 billion (US$1.2 billion), compared with RMB9.3 billion and RMB10.0 billion for the preceding quarter and the same quarter of 2023, respectively. The quarter-over-quarter and year-over-year decreases were mainly due to decreased marketing expenditures related to games and related value-added services.

Other Income/(Expenses)

Other income/(expenses) consisted of investment (losses)/income, interest income, exchange gains/(losses) and others. The quarter-over-quarter and year-over-year increases were mainly due to net exchange gains in the fourth quarter of 2024 compared with net exchange losses recorded in the preceding quarter and the same quarter of 2023.

Income Tax

The Company recorded a net income tax charge of RMB1.4 billion (US$189.7 million) for the fourth quarter of 2024, compared with RMB1.3 billion and RMB1.1 billion for the preceding quarter and the same quarter of 2023, respectively. The effective tax rate for the fourth quarter of 2024 was 13.4%, compared with 16.1% and 13.8% for the preceding quarter and the same quarter of 2023, respectively. The effective tax rate represents certain estimates by the Company as to the tax obligations and benefits applicable to it in each quarter.

Net Income and Non-GAAP Net Income

Net income attributable to the Company’s shareholders totaled RMB8.8 billion (US$1.2 billion) for the fourth quarter of 2024, compared with RMB6.5 billion and RMB6.6 billion for the preceding quarter and the same quarter of 2023, respectively.

Basic net income was US$0.38 per share (US$1.89 per ADS) for the fourth quarter of 2024, compared with US$0.28 per share (US$1.40 per ADS) each for the preceding quarter and the same quarter of 2023, respectively.

Non-GAAP net income attributable to the Company’s shareholders totaled RMB9.7 billion (US$1.3 billion) for the fourth quarter of 2024, compared with RMB7.5 billion and RMB7.4 billion for the preceding quarter and the same quarter of 2023, respectively.

Non-GAAP basic net income was US$0.42 per share (US$2.09 per ADS) for the fourth quarter of 2024, compared with US$0.32 per share (US$1.61 per ADS) and US$0.32 per share (US$1.57 per ADS) for the preceding quarter and the same quarter of 2023, respectively.  

Fiscal Year 2024 Financial Results

Net Revenues

Net revenues for fiscal year 2024 were RMB105.3 billion (US$14.4 billion), compared with RMB103.5 billion for fiscal year 2023.

Net revenues from games and related value-added services were RMB83.6 billion (US$11.5 billion) for fiscal year 2024, compared with RMB81.6 billion for fiscal year 2023. Net revenues from the operation of online games accounted for approximately 96.2% of the segment’s total net revenues for fiscal year 2024, compared with 92.9% for fiscal year 2023. Net revenues from mobile games accounted for approximately 72.7% of net revenues from the operation of online games for fiscal year 2024, compared with 75.2% for fiscal year 2023. The change in revenue mix was mainly due to higher net revenues generated by PC games such as Naraka: Bladepoint and licensed titles.

Net revenues from Youdao were RMB5.6 billion (US$770.7 million) for fiscal year 2024, compared with RMB5.4 billion for fiscal year 2023.

Net revenues from NetEase Cloud Music were RMB8.0 billion (US$1.1 billion) for fiscal year 2024, compared with RMB7.9 billion for fiscal year 2023.

Net revenues from innovative businesses and others were RMB8.1 billion (US$1.1 billion) for fiscal year 2024, compared with RMB8.6 billion for fiscal year 2023.

Gross Profit

Gross profit for fiscal year 2024 was RMB65.8 billion (US$9.0 billion), compared with RMB63.1 billion for fiscal year 2023.

The year-over-year increase in games and related value-added services’ gross profit was primarily due to increased net revenues from the operation of online games, such as Identity V and Naraka: Bladepoint PC and mobile games.

The slight year-over-year decrease in Youdao’s gross profit was mainly due to decreased revenue contribution from its learning services, which was partially offset by increased revenue contribution from its online marketing services.

The year-over-year increase in NetEase Cloud Music’s gross profit was primarily attributable to increased net revenues from sales of membership subscriptions and continued improvement in cost control measures.

The year-over-year increase in innovative businesses and others’ gross profit was primarily due to increased gross profits from Yanxuan and several other businesses included within the segment.

Operating Expenses

Total operating expenses for fiscal year 2024 were RMB36.2 billion (US$5.0 billion), compared with RMB35.4 billion for fiscal year 2023. The year-over-year increase was primarily due to higher research and development investments for games and related value-added services.

Other Income/(Expenses)

The year-over-year decrease was mainly due to higher impairment provisions related to certain investments, which was partially offset by higher interest income resulting from the Company’s increased net cash position.

Income Taxes

The Company recorded a net income tax charge of RMB5.5 billion (US$748.2 million) for fiscal year 2024, compared with RMB4.7 billion for fiscal year 2023. The effective tax rate was 15.3% for fiscal year 2024, compared with 13.8% for fiscal year 2023.

Net Income and Non-GAAP Net Income

Net income attributable to the Company’s shareholders for fiscal year 2024 totaled RMB29.7 billion (US$4.1 billion), compared with RMB29.4 billion for fiscal year 2023.

Basic net income was US$1.27 per share (US$6.36 per ADS) for fiscal year 2024, compared with US$1.25 per share (US$6.26 per ADS) for fiscal year 2023.

Non-GAAP net income attributable to the Company’s shareholders for fiscal year 2024 totaled RMB33.5 billion (US$4.6 billion), compared with RMB32.6 billion for fiscal year 2023.

Non-GAAP basic net income was US$1.43 per share (US$7.17 per ADS) for fiscal year 2024, compared with US$1.39 per share (US$6.94 per ADS) for fiscal year 2023.

Other Financial Information

As of December 31, 2024, the Company’s net cash (total cash and cash equivalents, current and non-current time deposits and restricted cash, as well as short-term investments balance, minus short-term and long-term loans) totaled RMB131.5 billion (US$18.0 billion), compared with RMB110.9 billion as of December 31, 2023. Net cash provided by operating activities was RMB39.7 billion (US$5.4 billion) for fiscal year 2024, compared with RMB35.3 billion for fiscal year 2023.

Quarterly Dividend

The board of directors approved a dividend of US$0.24405 per share (US$1.22025 per ADS) for the fourth quarter of 2024 to holders of ordinary shares and holders of ADSs as of the close of business on March 6, 2025, Beijing/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 Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong, no later than 4:30 p.m. on March 6, 2025 (Beijing/Hong Kong Time). The payment date is expected to be March 17, 2025, for holders of ordinary shares and on or around March 20, 2025, for holders of ADSs.

NetEase paid a dividend of US$0.0870 per share (US$0.4350 per ADS) for the third quarter of 2024 in December 2024.

Under the Company’s current dividend policy, the determination to make dividend distributions and the amount of such distribution in any particular quarter will be made at the discretion of its board of directors and will be based upon the Company’s operations and earnings, cash flow, financial condition and other relevant factors.

Share Repurchase Program

On November 17, 2022, the Company announced that its board of directors had approved a share repurchase program of up to US$5.0 billion of the Company’s ADSs and ordinary shares in open market transactions. This share repurchase program commenced on January 10, 2023 and will be in effect for a period not to exceed 36 months from such date. As of December 31, 2024, approximately 21.2 million ADSs had been repurchased under this program for a total cost of US$1.9 billion.

The extent to which NetEase repurchases its ADSs and its ordinary shares depends upon a variety of factors, including market conditions. These programs may be suspended or discontinued at any time.

** The United States dollar (US$) amounts disclosed in this announcement are presented solely for the convenience of the reader. The percentages stated are calculated based on RMB. 

Conference Call

NetEase’s management team will host a teleconference call with a simultaneous webcast at 7:00 a.m. New York Time on Thursday, February 20, 2025 (Beijing/Hong Kong Time: 8:00 p.m., Thursday, February 20, 2025). NetEase’s management will be on the call to discuss the quarterly results and answer questions.

Interested parties may participate in the conference call by dialing 1-914-202-3258 and providing conference ID: 10044895, 15 minutes prior to the initiation of the call. A replay of the call will be available by dialing 1-855-883-1031 and entering PIN: 10044895. The replay will be available through February 27, 2025.

This call will be webcast live and the replay will be available for 12 months. Both will be available on NetEase’s Investor Relations website at http://ir.netease.com/.

About NetEase, Inc.

NetEase, Inc. (NASDAQ: NTES and HKEX: 9999, “NetEase”) is a leading internet and game services provider centered around premium content. With extensive offerings across its expanding gaming ecosystem, the Company develops and operates some of the most popular and longest running mobile and PC games available in China and globally.

Powered by one of the largest in-house game R&D teams focused on mobile, PC and console, NetEase creates superior gaming experiences, inspires players, and passionately delivers value for its thriving community worldwide. By infusing play with culture, and education with technology, NetEase transforms gaming into a meaningful vehicle to build a more entertaining and enlightened world.

Beyond games, NetEase service offerings include its majority-controlled subsidiaries Youdao (NYSE: DAO), an intelligent learning company with industry-leading technology, and NetEase Cloud Music (HKEX: 9899), a well-known online music platform featuring a vibrant content community, as well as Yanxuan, NetEase’s private label consumer lifestyle brand.

For more information, please visit: http://ir.netease.com/.

Forward Looking Statements

This announcement contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar expressions. In addition, statements that are not historical facts, including statements about NetEase’s strategies and business plans, its expectations regarding the growth of its business and its revenue and the quotations from management in this announcement are or contain forward-looking statements. NetEase may also make forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in announcements made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that the online games market will not continue to grow or that NetEase will not be able to maintain its position in that market in China or globally; risks associated with NetEase’s business and operating strategies and its ability to implement such strategies; NetEase’s ability to develop and manage its operations and business; competition for, among other things, capital, technology and skilled personnel; potential changes in regulation environment in the markets where NetEase operates; the risk that NetEase may not be able to continuously develop new and creative online services or that NetEase will not be able to set, or follow in a timely manner, trends in the market; risks related to evolving economic cycles and geopolitical events; risks related to the expansion of NetEase’s businesses and operations internationally; risks associated with cybersecurity threats or incidents; and fluctuations in foreign currency exchange rates that could adversely affect NetEase’s business and financial results. Further information regarding these and other risks is included in NetEase’s filings with the SEC and announcements on the website of the Hong Kong Stock Exchange. NetEase does not undertake any obligation to update this forward-looking information, except as required under applicable law.

Non-GAAP Financial Measures

NetEase considers and uses non-GAAP financial measures, such as non-GAAP net income attributable to the Company’s shareholders and non-GAAP basic and diluted net income per ADS and per share, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

NetEase defines non-GAAP net income attributable to the Company’s shareholders as net income attributable to the Company’s shareholders excluding share-based compensation expenses. Non-GAAP net income attributable to the Company’s shareholders enables NetEase’s management to assess its operating results without considering the impact of share-based compensation expenses. NetEase believes that this non-GAAP financial measure provides useful information to investors in understanding and evaluating the Company’s current operating performance and prospects in the same manner as management does, if they so choose. NetEase also believes that the use of this non-GAAP financial measure facilitates investors’ assessment of its operating performance.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using non-GAAP net income attributable to the Company’s shareholders is that it does not reflect all items of expense/ income that affect our operations. Share-based compensation expenses have been and may continue to be incurred in NetEase’s business and are not reflected in the presentation of non-GAAP net income attributable to the Company’s shareholders. In addition, the non-GAAP financial measures NetEase uses may differ from the non-GAAP measures used by other companies, including peer companies, and therefore their comparability may be limited.

NetEase compensates for these limitations by reconciling non-GAAP net income attributable to the Company’s shareholders to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company’s performance. See the unaudited reconciliation of GAAP and non-GAAP results at the end of this announcement. NetEase encourages you to review its financial information in its entirety and not rely on a single financial measure.

Contact for Media and Investors:
Email: ir@service.netease.com
Tel: (+86) 571-8985-3378

 

NETEASE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 December 31,  

 December 31,  

 December 31,  

2023

2024

2024

 RMB  

 RMB  

 USD (Note 1) 

Assets

Current assets:

   Cash and cash equivalents

21,428,902

51,383,310

7,039,485

   Time deposits

100,856,034

75,441,355

10,335,423

   Restricted cash

2,777,206

3,086,405

422,836

   Accounts receivable, net

6,422,417

5,669,027

776,654

   Inventories

695,374

571,548

78,302

   Prepayments and other current assets, net

6,076,595

6,416,868

879,107

   Short-term investments

4,436,057

10,756,143

1,473,586

Total current assets

142,692,585

153,324,656

21,005,393

Non-current assets:

   Property, equipment and software, net 

8,075,044

8,520,101

1,167,249

   Land use rights, net

4,075,143

4,172,465

571,625

   Deferred tax assets 

1,560,088

1,113,435

152,540

   Time deposits

1,050,000

3,025,000

414,423

   Restricted cash

550

5,208

713

   Other long-term assets

28,471,568

25,830,685

3,538,789

Total non-current assets

43,232,393

42,666,894

5,845,339

Total assets 

185,924,978

195,991,550

26,850,732

Liabilities, Redeemable Noncontrolling Interests
    and Shareholders’ Equity

Current liabilities:

   Accounts payable 

881,016

720,549

98,715

   Salary and welfare payables

4,857,206

4,683,009

641,570

   Taxes payable

2,571,534

2,759,185

378,007

   Short-term loans

19,240,163

11,805,051

1,617,285

   Contract liabilities

13,362,166

15,299,222

2,095,985

   Accrued liabilities and other payables

12,930,399

14,400,641

1,972,879

Total current liabilities

53,842,484

49,667,657

6,804,441

Non-current liabilities:

   Deferred tax liabilities

2,299,303

2,173,117

297,716

   Long-term loans

427,997

427,997

58,635

   Other long-term liabilities

1,271,113

1,228,641

168,323

Total non-current liabilities

3,998,413

3,829,755

524,674

Total liabilities

57,840,897

53,497,412

7,329,115

Redeemable noncontrolling interests 

115,759

84,272

11,545

NetEase, Inc.’s shareholders’ equity

124,285,776

138,685,606

18,999,850

Noncontrolling interests

3,682,546

3,724,260

510,222

Total equity

127,968,322

142,409,866

19,510,072

Total liabilities, redeemable noncontrolling 
    interests and shareholders’ equity    

185,924,978

195,991,550

26,850,732

The accompanying notes are an integral part of this announcement.

 

NETEASE, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data or per ADS data)

 Three Months Ended 

Year Ended

December 31, 

September 30, 

December 31, 

 December 31,  

 December 31,  

December 31, 

December 31, 

2023

2024

2024

2024

2023

2024

2024

 RMB 

 RMB 

 RMB 

 USD (Note 1) 

RMB

RMB

USD (Note 1)

Net revenues

27,140,165

26,209,879

26,747,811

3,664,435

103,468,159

105,295,236

14,425,388

Cost of revenues

(10,315,030)

(9,733,274)

(10,475,470)

(1,435,134)

(40,404,765)

(39,488,152)

(5,409,855)

Gross profit

16,825,135

16,476,605

16,272,341

2,229,301

63,063,394

65,807,084

9,015,533

Operating expenses:

Selling and marketing expenses 

(4,225,556)

(3,805,071)

(2,818,645)

(386,153)

(13,969,460)

(14,147,657)

(1,938,221)

General and administrative expenses

(1,251,869)

(1,100,328)

(1,162,381)

(159,246)

(4,899,880)

(4,550,625)

(623,433)

Research and development expenses 

(4,479,219)

(4,424,469)

(4,469,868)

(612,369)

(16,484,910)

(17,524,812)

(2,400,889)

Total operating expenses

(9,956,644)

(9,329,868)

(8,450,894)

(1,157,768)

(35,354,250)

(36,223,094)

(4,962,543)

Operating profit

6,868,491

7,146,737

7,821,447

1,071,533

27,709,144

29,583,990

4,052,990

Other income/(expenses):

Investment (losses)/income, net

(8,940)

578,398

(506,077)

(69,332)

1,306,722

355,286

48,674

Interest income, net

1,261,583

1,282,766

1,174,333

160,883

4,120,418

4,920,915

674,163

Exchange (losses)/gains, net

(810,904)

(1,055,518)

1,535,312

210,337

(132,999)

255,430

34,994

Other, net

434,759

43,600

278,952

38,216

1,053,642

602,134

82,492

Income before tax

7,744,989

7,995,983

10,303,967

1,411,637

34,056,927

35,717,755

4,893,313

Income tax

(1,068,657)

(1,289,545)

(1,385,014)

(189,746)

(4,699,704)

(5,461,408)

(748,210)

Net income

6,676,332

6,706,438

8,918,953

1,221,891

29,357,223

30,256,347

4,145,103

Accretion of redeemable noncontrolling
    interests

(966)

(962)

(1,039)

(142)

(3,589)

(3,919)

(537)

Net (income)/loss attributable to noncontrolling
    interests and redeemable noncontrolling
    interests

(93,103)

(167,041)

(151,435)

(20,747)

62,918

(554,819)

(76,010)

Net income attributable to the
    Company’s shareholders

6,582,263

6,538,435

8,766,479

1,201,002

29,416,552

29,697,609

4,068,556

Net income per share *

Basic

2.05

2.04

2.76

0.38

9.15

9.28

1.27

Diluted

2.02

2.03

2.73

0.37

9.05

9.19

1.26

Net income per ADS *

Basic

10.25

10.22

13.81

1.89

45.73

46.40

6.36

Diluted

10.12

10.14

13.67

1.87

45.23

45.95

6.29

Weighted average number of ordinary
    shares used in calculating net income
    per share *

Basic

3,212,328

3,198,646

3,174,113

3,174,113

3,216,475

3,200,453

3,200,453

Diluted

3,253,166

3,224,110

3,206,100

3,206,100

3,252,029

3,230,602

3,230,602

*  Each ADS represents five ordinary shares.

The accompanying notes are an integral part of this announcement.

     

NETEASE, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended

Year Ended

 December 31,  

 September 30,   

 December 31,  

 December 31,  

 December 31,  

 December 31,  

 December 31,  

2023

2024

2024

2024

2023

2024

2024

 RMB  

 RMB  

 RMB  

 USD (Note 1) 

 RMB  

 RMB  

 USD (Note 1) 

Cash flows from operating activities:

    Net income 

6,676,332

6,706,438

8,918,953

1,221,891

29,357,223

30,256,347

4,145,103

    Adjustments to reconcile net income to net cash provided
        by operating activities:

    Depreciation and amortization

659,772

520,567

697,447

95,550

3,055,260

2,417,894

331,250

    Fair value changes of equity security, other investments
        and financial instruments

151,571

(824,608)

358,852

49,163

(535,316)

(841,901)

(115,340)

    Impairment losses on investments

140,648

529,668

422,801

57,924

469,159

1,291,627

176,952

    Fair value changes of short-term investments

(106,532)

(100,071)

(241,431)

(33,076)

(414,207)

(530,607)

(72,693)

    Share-based compensation cost

812,987

978,139

931,444

127,608

3,242,810

3,882,939

531,960

    Allowance for expected credit losses

9,500

36,022

12,031

1,648

61,146

68,934

9,444

    Losses/(gains) on disposal of property, equipment and software 

3,385

(2,920)

(3,644)

(499)

5,676

(4,758)

(652)

    Unrealized exchange losses/(gains)

838,056

1,050,644

(1,542,986)

(211,388)

119,935

(719,162)

(98,525)

    (Gains)/losses on disposal of long-term investments,
        business and subsidiaries

(38,437)

(118,046)

232

32

(63,784)

(272,415)

(37,321)

    Deferred income taxes

193,854

711,639

404,109

55,363

131,437

320,726

43,939

    Share of results on equity method investees and revaluation
        results from previously held equity interest

(88,805)

(28,466)

(19,437)

(2,663)

(473,947)

155,568

21,313

    Changes in operating assets and liabilities: 

        Accounts receivable

53,089

146,758

517,850

70,945

(1,470,374)

716,375

98,143

        Inventories

25,054

(39,285)

42,135

5,772

296,764

123,780

16,958

        Prepayments and other assets

542,593

(1,234,390)

(432,196)

(59,211)

87,556

(809,590)

(110,913)

        Accounts payable

18,443

6,316

218,689

29,960

(559,419)

91,142

12,486

        Salary and welfare payables

1,992,931

(670,750)

1,759,382

241,034

(62,917)

(210,918)

(28,896)

        Taxes payable

(500,172)

224,015

154,651

21,187

(244,261)

187,788

25,727

        Contract liabilities

(847,562)

1,928,060

(209,626)

(28,719)

1,161,861

2,022,196

277,041

        Accrued liabilities and other payables

1,271,572

755,882

1,022,944

140,143

1,166,673

1,530,848

209,725

    Net cash provided by operating activities

11,808,279

10,575,612

13,012,200

1,782,664

35,331,275

39,676,813

5,435,701

Cash flows from investing activities:

    Purchase of property, equipment and software

(484,927)

(379,520)

(311,982)

(42,741)

(2,301,554)

(1,275,400)

(174,729)

    Proceeds from sale of property, equipment and software

405

1,072

9,295

1,273

10,302

14,533

1,991

    Purchase of intangible assets, content and licensed copyrights

(121,797)

(222,247)

(120,387)

(16,493)

(1,974,323)

(930,988)

(127,545)

    Net changes of short-term investments with terms of three
        months or less

(690,628)

1,585,395

3,798,989

520,460

(1,777,687)

(408,256)

(55,931)

    Purchase of short-term investments with terms over three
        months

(3,675,000)

(4,560,000)

(624,717)

(8,235,000)

(1,128,190)

    Proceeds from maturities of short-term investments with terms
        over three months

4,897,291

2,853,778

390,966

5,378,510

2,853,778

390,966

    Investment in long-term investments and acquisition of
        subsidiaries

(914,962)

(226,086)

(201,686)

(27,631)

(2,831,686)

(1,103,026)

(151,114)

    Proceeds from disposal of long-term investments, businesses,
        subsidiaries and other financial instruments

73,855

1,541,338

355,142

48,654

152,564

2,822,585

386,692

    Placement/rollover of matured time deposits

(46,666,670)

(36,766,094)

(21,691,769)

(2,971,760)

(124,693,598)

(154,792,305)

(21,206,459)

    Proceeds from maturities of time deposits

33,273,393

37,546,192

40,570,700

5,558,163

111,417,969

179,377,113

24,574,564

    Change in other long-term assets

(90,635)

(125,911)

(73,553)

(10,077)

(423,928)

(406,632)

(55,708)

    Net cash (used in)/provided by investing activities

(10,724,675)

(720,861)

20,628,527

2,826,097

(17,043,431)

17,916,402

2,454,537

Cash flows from financing activities:

    Net changes from loans with terms of three months or less  

6,179,979

(4,778,301)

606,092

83,034

(13,654,704)

(6,656,988)

(912,004)

    Proceeds of loans with terms over three months

2,511,000

5,395,810

457,000

62,609

13,569,160

13,920,080

1,907,043

    Payment of loans with terms over three months

(695,000)

(3,100,520)

(8,219,472)

(14,739,347)

(2,019,282)

    Net amounts received/(paid) related to capital contribution from
       or repurchase of noncontrolling interests shareholders

28,009

(8,394)

51,614

7,071

86,159

136,006

18,633

    Cash paid for repurchase of NetEase’s ADSs/purchase of
        subsidiaries’ ADSs and shares      

(625,832)

(3,994,212)

(1,595,093)

(218,527)

(5,234,294)

(8,830,115)

(1,209,721)

    Dividends paid to NetEase’s shareholders

(2,258,892)

(1,972,928)

(1,982,595)

(271,614)

(8,013,903)

(11,165,338)

(1,529,645)

    Net cash provided/(used in) by financing activities

5,139,264

(8,458,545)

(2,462,982)

(337,427)

(21,467,054)

(27,335,702)

(3,744,976)

    Effect of exchange rate changes on cash, cash equivalents and
        restricted cash held in foreign currencies

(174,276)

(68,136)

113,792

15,589

(202,457)

10,752

1,473

Net increase/(decrease) in cash, cash equivalents and restricted cash               

6,048,592

1,328,070

31,291,537

4,286,923

(3,381,667)

30,268,265

4,146,735

Cash, cash equivalents and restricted cash, at the beginning
    of the period

18,158,066

21,855,316

23,183,386

3,176,111

27,588,325

24,206,658

3,316,299

Cash, cash equivalents and restricted cash, at end of the period

24,206,658

23,183,386

54,474,923

7,463,034

24,206,658

54,474,923

7,463,034

Supplemental disclosures of cash flow information:

    Cash paid for income taxes, net

1,030,932

554,867

603,514

82,681

4,895,752

5,189,585

710,970

    Cash paid for interest expenses

71,847

165,881

24,343

3,335

779,872

489,622

67,078

The accompanying notes are an integral part of this announcement.

 

NETEASE, INC.

UNAUDITED SEGMENT INFORMATION

(in thousands, except percentages)

Three Months Ended

Year Ended

 December 31,  

 September 30,   

 December 31,  

 December 31,  

 December 31,  

December 31, 

December 31, 

2023

2024

2024

2024

2023

2024

2024

RMB

RMB

RMB

USD (Note 1)

RMB

RMB

USD (Note 1)

Net revenues:

Games and related value-added services 

20,921,355

20,864,036

21,242,410

2,910,198

81,565,449

83,622,643

11,456,254

Youdao

1,480,521

1,572,541

1,339,798

183,552

5,389,208

5,625,919

770,748

NetEase Cloud Music

1,985,548

1,999,163

1,880,490

257,626

7,866,992

7,950,146

1,089,166

Innovative businesses and others

2,752,741

1,774,139

2,285,113

313,059

8,646,510

8,096,528

1,109,220

Total net revenues

27,140,165

26,209,879

26,747,811

3,664,435

103,468,159

105,295,236

14,425,388

Cost of revenues:

Games and related value-added services 

(6,383,474)

(6,503,146)

(7,075,562)

(969,348)

(25,938,865)

(26,142,623)

(3,581,525)

Youdao

(741,720)

(783,085)

(699,045)

(95,769)

(2,621,746)

(2,877,428)

(394,206)

NetEase Cloud Music

(1,384,537)

(1,343,921)

(1,279,951)

(175,353)

(5,764,322)

(5,268,634)

(721,800)

Innovative businesses and others

(1,805,299)

(1,103,122)

(1,420,912)

(194,664)

(6,079,832)

(5,199,467)

(712,324)

Total cost of revenues

(10,315,030)

(9,733,274)

(10,475,470)

(1,435,134)

(40,404,765)

(39,488,152)

(5,409,855)

Gross profit:

Games and related value-added services 

14,537,881

14,360,890

14,166,848

1,940,850

55,626,584

57,480,020

7,874,729

Youdao

738,801

789,456

640,753

87,783

2,767,462

2,748,491

376,542

NetEase Cloud Music

601,011

655,242

600,539

82,273

2,102,670

2,681,512

367,366

Innovative businesses and others

947,442

671,017

864,201

118,395

2,566,678

2,897,061

396,896

Total gross profit

16,825,135

16,476,605

16,272,341

2,229,301

63,063,394

65,807,084

9,015,533

Gross profit margin:

Games and related value-added services 

69.5 %

68.8 %

66.7 %

66.7 %

68.2 %

68.7 %

68.7 %

Youdao

49.9 %

50.2 %

47.8 %

47.8 %

51.4 %

48.9 %

48.9 %

NetEase Cloud Music

30.3 %

32.8 %

31.9 %

31.9 %

26.7 %

33.7 %

33.7 %

Innovative businesses and others

34.4 %

37.8 %

37.8 %

37.8 %

29.7 %

35.8 %

35.8 %

The accompanying notes are an integral part of this announcement.

 

NETEASE, INC.

NOTES TO UNAUDITED FINANCIAL INFORMATION

Note 1: The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00 = RMB7.2993 on the last trading day of December 2024 (December 31, 2024) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate on December 31, 2024, or at any other certain date.

Note 2: Share-based compensation cost reported in the Company’s unaudited condensed consolidated statements of comprehensive income is set out as follows in RMB and USD (in thousands):

Three Months Ended

Year Ended

December 31,

September 30, 

December 31,

December 31,

December 31,

December 31,

December 31,

2023

2024

2024

2024

2023

2024

2024

RMB

RMB

RMB

USD (Note 1)

RMB

RMB

USD (Note 1)

Share-based compensation cost included in:

Cost of revenues

216,717

306,283

304,687

41,742

823,765

1,185,854

162,461

Operating expenses

  Selling and marketing expenses

35,575

36,365

7,435

1,019

132,801

104,534

14,321

  General and administrative expenses

262,830

247,440

246,424

33,760

1,119,018

1,069,850

146,569

  Research and development expenses

297,865

388,051

372,898

51,087

1,167,226

1,522,701

208,609

The accompanying notes are an integral part of this announcement.

 

Note 3: The financial information prepared and presented in this announcement might be different from those published and to be published by NetEase’s listed subsidiary to meet the disclosure requirements under different accounting standards requirements.

Note 4: The unaudited reconciliation of GAAP and non-GAAP results is set out as follows in RMB and USD (in thousands, except per share data or per ADS data):

Three Months Ended

Year Ended

 December 31, 

 September 30,  

 December 31, 

 December 31, 

 December 31, 

December 31,

December 31,

2023

2024

2024

2024

2023

2024

2024

RMB

RMB

RMB

USD (Note 1)

RMB

RMB

USD (Note 1)

Net income attributable to the Company’s shareholders

6,582,263

6,538,435

8,766,479

1,201,002

29,416,552

29,697,609

4,068,556

Add: Share-based compensation

797,194

960,706

915,489

125,421

3,191,753

3,813,032

522,383

Non-GAAP net income attributable to the Company’s shareholders

7,379,457

7,499,141

9,681,968

1,326,423

32,608,305

33,510,641

4,590,939

Non-GAAP net income per share *

Basic

2.30

2.34

3.05

0.42

10.14

10.47

1.43

Diluted

2.27

2.33

3.02

0.41

10.03

10.37

1.42

Non-GAAP net income per ADS *

Basic

11.49

11.72

15.25

2.09

50.69

52.35

7.17

Diluted

11.34

11.63

15.09

2.07

50.14

51.85

7.10

*  Each ADS represents five ordinary shares.

The accompanying notes are an integral part of this announcement.

 

Youdao Reports Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results

HANGZHOU, China, Feb. 20, 2025 /PRNewswire/ — Youdao, Inc. (“Youdao” or the “Company”) (NYSE: DAO), an intelligent learning company with industry-leading technology in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

  • Total net revenues were RMB1.3 billion (US$183.6 million), representing a 9.5% decrease from the same period in 2023.
    – Net revenues from learning services were RMB617.7 million (US$84.6 million), representing a 21.2% decrease from the same period in 2023.
    – Net revenues from smart devices were RMB240.4 million (US$32.9 million), representing an 8.1% increase from the same period in 2023.
    – Net revenues from online marketing services were RMB481.7 million (US$66.0 million), representing a modest increase from the same period in 2023.
  • Gross margin was 47.8%, compared with 49.9% for the same period in 2023.
  • Income from operations was RMB84.2 million (US$11.5 million), representing a 10.3% increase from the same period in 2023.
  • Basic and diluted net income per American depositary share (“ADS”) attributable to ordinary shareholders was RMB0.71 (US$0.10) and RMB0.70 (US$0.10), respectively, compared with RMB0.47 for the same period of 2023.

Fiscal Year 2024 Financial Highlights

  • Total net revenues were RMB5.6 billion (US$770.7 million), representing a 4.4% increase from 2023.
    – Net revenues from learning services were RMB2.7 billion (US$376.4 million), representing a 12.7% decrease from 2023.
    – Net revenues from smart devices were RMB903.7 million (US$123.8 million), remaining stable compared to 2023.
    – Net revenues from online marketing services were RMB2.0 billion (US$270.6 million), representing a 48.3% increase from 2023.
  • Gross margin was 48.9%, compared with 51.4% for 2023.
  • Income from operations was RMB148.8 million (US$20.4 million), compared with loss from operations of RMB466.3 million for 2023.
  • Basic and diluted net income per ADS attributable to ordinary shareholders was RMB0.70 (US$0.10), compared with basic and diluted net loss per ADS attributable to ordinary shareholders of RMB4.53 for 2023.

“We achieved a significant milestone of first-ever full-year profitability in 2024. In terms of products and services, our AI-based and differentiated services enhanced customer loyalty, with retention rate surpassing 70% in the fourth quarter for Youdao Lingshi. In addition, we strengthened collaboration with NetEase in online marketing services, facilitating the long-term development of this segment. AI-driven subscription services continued to upgrade, leading to elevated customer satisfaction and over 130% year-over-year increase in total sales,” said Dr. Feng Zhou, Chief Executive Officer and Director of Youdao.

“Looking ahead, we are launching our AI Native strategy-integrating AI more comprehensively across our business lines, for example, automating our advertising platforms and introducing AI-driven tutoring for our course customers. We are excited by the rapid maturing of reasoning models and eager to deliver these innovative projects to our customers,” Dr. Zhou concluded.

Fourth Quarter 2024 Financial Results

Net Revenues

Net revenues for the fourth quarter of 2024 were RMB1.3 billion (US$183.6 million), representing a 9.5% decrease from RMB1.5 billion for the same period of 2023.

Net revenues from learning services were RMB617.7 million (US$84.6 million) for the fourth quarter of 2024, representing a 21.2% decrease from RMB784.0 million for the same period of 2023. The year-over-year decrease was due to our continued strategic focus on a more selective customer acquisition approach, prioritizing higher ROI (return on investment) engagements. We believe despite the short-term revenue decline, this strategy has enhanced the overall resilience and operational efficiency of our business.

Net revenues from smart devices were RMB240.4 million (US$32.9 million) for the fourth quarter of 2024, representing an 8.1% increase from RMB222.4 million for the same period of 2023, primarily driven by the continued increase in sales of Youdao Dictionary Pen in 2024.

Net revenues from online marketing services were RMB481.7 million (US$66.0 million) for the fourth quarter of 2024, representing a modest increase from RMB474.1 million for the same period of 2023.

Gross Profit and Gross Margin

Gross profit for the fourth quarter of 2024 was RMB640.8 million (US$87.8 million), representing a 13.3% decrease from RMB738.8 million for the same period of 2023. Gross margin was 47.8% for the fourth quarter of 2024, compared with 49.9% for the same period of 2023.

Gross margin for learning services was 60.0% for the fourth quarter of 2024, compared with 63.6% for the same period of 2023. The decrease was mainly due to the decline in economies of scale as a result of the decreased revenues from learning services.

Gross margin for smart devices increased to 43.9% for the fourth quarter of 2024 from 38.3% for the same period of 2023. The improvement was mainly attributable to the higher gross margin arising from the newly launched Youdao Dictionary Pen in 2024.

Gross margin for online marketing services was 34.2% for the fourth quarter of 2024, compared with 32.7% for the same period of 2023. The increase was mainly attributable to improved gross margin profile of performance-based advertisements through third parties’ internet properties compared with the same period of last year.

Operating Expenses

Total operating expenses for the fourth quarter of 2024 were RMB556.6 million (US$76.3 million), compared with RMB662.5 million for the same period of last year.

Sales and marketing expenses for the fourth quarter of 2024 were RMB381.8 million (US$52.3 million), representing a decrease of 13.5% from RMB441.4 million for the same period of 2023. This decrease was attributable to the reduced marketing expenditures, as well as declined outsourcing labor service fees and payroll related expenses in learning services.

Research and development expenses for the fourth quarter of 2024 were RMB120.7 million (US$16.5 million), representing a decrease of 28.2% from RMB168.1 million for the same period of 2023. The decrease was primarily due to the decreased headcount for research and development employees, leading to payroll savings in the fourth quarter of 2024.

General and administrative expenses for the fourth quarter of 2024 were RMB54.1 million (US$7.4 million), largely flat compared with RMB53.0 million for the same period of 2023.

Income from Operations

As a result of the foregoing, income from operations for the fourth quarter of 2024 was RMB84.2 million (US$11.5 million), representing a 10.3% increase from RMB76.3 million for the same period in 2023. The margin of income from operations was 6.3%, compared with 5.2% for the same period of last year.

Net Income Attributable to Youdao’s Ordinary Shareholders

Net income attributable to Youdao’s ordinary shareholders for the fourth quarter of 2024 was RMB83.0 million (US$11.4 million), representing a 47.0% increase from RMB56.5 million for the same period of last year. Non-GAAP net income attributable to Youdao’s ordinary shareholders for the fourth quarter of 2024 was RMB91.8 million (US$12.6 million), representing a 32.5% increase from RMB69.3 million for the same period of last year.

Basic and diluted net income per ADS attributable to ordinary shareholders for the fourth quarter of 2024 was RMB0.71 (US$0.10) and RMB0.70 (US$0.10), respectively, compared with RMB0.47 for the same period of 2023. Non-GAAP basic and diluted net income per ADS attributable to ordinary shareholders was RMB0.78 (US$0.11) and RMB0.77 (US$0.11), respectively, compared with RMB0.58 for the same period of 2023.

Other Information

As of December 31, 2024, Youdao’s cash, cash equivalents, current and non-current restricted cash, time deposits and short-term investments totaled RMB662.6 million (US$90.8 million), compared with RMB527.1 million as of December 31, 2023. For the fourth quarter of 2024, net cash provided by operating activities was RMB158.2 million (US$21.7 million). Youdao’s ability to continue as a going concern is dependent on management’s ability to implement an effective business plan amid a changing regulatory environment, generate operating cash flows, and secure external financing for future development. To support Youdao’s future business, NetEase Group has agreed to provide financial support for ongoing operations in the next thirty-six months starting from May 2024. As of December 31, 2024, Youdao has received various forms of financial support from the NetEase Group, including, among others, RMB878.0 million in short-term loan, and US$126.1 million in long-term loans maturing on March 31, 2027 drawn from the US$300.0 million revolving loan facility.

As of December 31, 2024, the Company’s contract liabilities, which mainly consisted of deferred revenues generated from Youdao’s learning services, were RMB961.0 million (US$131.7 million), compared with RMB1.1 billion as of December 31, 2023.

Fiscal Year 2024 Financial Results

Net Revenues

Net revenues for 2024 were RMB5.6 billion (US$770.7 million), representing a 4.4% increase from RMB5.4 billion for 2023.

Net revenues from learning services were RMB2.7 billion (US$376.4 million) for 2024, representing a 12.7% decrease from RMB3.1 billion for 2023. The decrease reflects our commitment to a more selective customer acquisition approach, prioritizing higher ROI engagements. This strategy has contributed to the overall resilience and efficiency of our business.

Net revenues from smart devices were RMB903.7 million (US$123.8 million) for 2024, remaining stable compared to 2023.

Net revenues from online marketing services were RMB2.0 billion (US$270.6 million) for 2024, representing a 48.3% increase from RMB1.3 billion for 2023. The increase was mainly attributable to the increased demand for performance-based advertisements through third parties’ internet properties, which was driven by our continued investments in cutting-edge AI technology.

Gross Profit and Gross Margin

Gross profit for 2024 was RMB2.7 billion (US$376.5 million), remaining stable compared to 2023. Gross margin for 2024 was 48.9%, compared with 51.4% for 2023.

Gross margin for learning services was 61.4% for 2024, compared with 63.2% for 2023. The decrease was mainly due to the decline in economies of scale as a result of the decreased revenues from learning services.

Gross margin for smart devices was 38.7% for 2024, remaining stable compared to 2023.

Gross margin for online marketing services increased to 36.0 % for 2024 from 31.7% for 2023. The increase was mainly attributable to improved gross margin profile of performance-based advertisements through third parties’ internet properties compared with last year.

Operating Expenses

Total operating expenses for 2024 were RMB2.6 billion (US$356.2 million), representing a decrease of 19.6%, compared with RMB3.2 billion for 2023.

Sales and marketing expenses for 2024 were RMB1.9 billion (US$256.5 million), representing a decrease of 17.5%, compared with RMB2.3 billion for 2023. This decrease was primarily attributable to the reduced marketing expenditures, as well as declined outsourcing labor service fees and payroll related expenses in learning services.

Research and development expenses for 2024 were RMB540.0 million (US$74.0 million), representing a decrease of 27.4%, compared with RMB743.4 million for 2023. The decrease was primarily due to the decreased headcount for research and development employees, leading to payroll savings in 2024.

General and administrative expenses for 2024 were RMB187.1 million (US$25.6 million), representing a decrease of 15.7%, compared with RMB222.0 million for 2023. The decrease was primarily due to the decreased headcount for general and administrative employees, leading to payroll savings in 2024.

Income/(Loss) from Operations

Income from operations for 2024 was RMB148.8 million (US$20.4 million), compared with loss from operations of RMB466.3 million for 2023. The margin of income from operations was 2.6%, compared with margin of loss from operations of 8.7% for 2023.

Net Income/(Loss) Attributable to Youdao’s Ordinary Shareholders

Net income attributable to Youdao’s ordinary shareholders for 2024 was RMB82.2 million (US$11.3 million), compared with net loss attributable to Youdao’s ordinary shareholders of RMB549.9 million for 2023. Non-GAAP net income attributable to Youdao’s ordinary shareholders for 2024 was RMB104.8 million (US$14.4 million), compared with non-GAAP net loss attributable to Youdao’s ordinary shareholders of RMB475.4 million for 2023.

Basic and diluted net income per ADS attributable to ordinary shareholders for 2024 was RMB0.70 (US$0.10), compared with basic and diluted net loss per ADS attributable to ordinary shareholders of RMB4.53 for 2023. Non-GAAP basic and diluted net income per ADS attributable to ordinary shareholders was RMB0.89 (US$0.12), compared with non-GAAP basic and diluted net loss per ADS attributable to ordinary shareholders of RMB3.92 for 2023.

Operating Cash Flow

For 2024, net cash used in operating activities was RMB67.9 million (US$9.3 million), compared with RMB438.1 million for 2023.

Share Repurchase Program

On November 17, 2022, the Company announced that its board of directors had authorized the Company to adopt a share repurchase program in accordance with applicable laws and regulations for up to US$20.0 million of its Class A ordinary shares (including in the form of ADSs) during a period of up to 36 months. This amount was subsequently increased to US$40.0 million in August 2023. As of December 31, 2024, the Company had repurchased a total of approximately 7.5 million ADSs for a total consideration of approximately US$33.8 million in the open market under the share repurchase program.

Conference Call

Youdao’s management team will host a teleconference call with simultaneous webcast at 5:00 a.m. Eastern Time on Thursday, February 20, 2025 (Beijing/Hong Kong Time: 6:00 p.m., Thursday, February 20, 2025). Youdao’s management will be on the call to discuss the financial results and answer questions.

Dial-in details for the earnings conference call are as follows:

United States (toll free):

+1-888-346-8982

International:

+1-412-902-4272

Mainland China (toll free):

400-120-1203

Hong Kong (toll free): 

800-905-945

Hong Kong:

+852-3018-4992

Conference ID:

6589745

A live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.youdao.com.

A replay of the conference call will be accessible by phone one hour after the conclusion of the live call at the following numbers, until February 27, 2025:

United States: 

+1-877-344-7529

International:

+1-412-317-0088

Replay Access Code:       

6589745

About Youdao, Inc. 

Youdao, Inc. (NYSE: DAO) is an intelligent learning company with industry-leading technology in China dedicated to developing and using technologies to provide learning content, applications and solutions to users of all ages. Building on the popularity of its online knowledge tools such as Youdao Dictionary and Youdao Translation, Youdao now offers smart devices, STEAM courses, adult and vocational courses, and education digitalization solutions. In addition, Youdao has developed a variety of interactive learning apps. Youdao was founded in 2006 as part of NetEase, Inc. (NASDAQ: NTES; HKEX: 9999), a leading internet technology company in China.

For more information, please visit: http://ir.youdao.com.

Non-GAAP Measures

Youdao considers and uses non-GAAP financial measures, such as non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders and non-GAAP basic and diluted net income/(loss) per ADS, as supplemental metrics in reviewing and assessing its operating performance and formulating its business plan. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Youdao defines non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders as net income/(loss) attributable to the Company’s ordinary shareholders excluding share-based compensation expenses and impairment of long-term investments. Non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders enables Youdao’s management to assess its operating results without considering the impact of these items, which are non-cash charges in nature. Youdao believes that these non-GAAP financial measures provide useful information to investors in understanding and evaluating the Company’s current operating performance and prospects in the same manner as management does, if they so choose.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. Non-GAAP financial measures have limitations as analytical tools, which possibly do not reflect all items of expense that affect our operations. In addition, the non-GAAP financial measures Youdao uses may differ from the non-GAAP measures uses by other companies, including peer companies, and therefore their comparability may be limited.

For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this release.

The accompanying table has more details on the reconciliation between our GAAP financial measures that are mostly directly comparable to non-GAAP financial measures. Youdao encourages you to review its financial information in its entirety and not rely on a single financial measure.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2993 to US$1.00, the exchange rate on December 31, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Further information regarding such risks, uncertainties or factors is included in the Company’s filings with the SEC. The announced results of the fourth quarter and full year of 2024 are preliminary and subject to adjustments. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

In China:
Jeffrey Wang
Youdao, Inc.
Tel: +86-10-8255-8163 ext. 89980
E-mail: IR@rd.netease.com 

Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: youdao@thepiacentegroup.com 

In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: youdao@thepiacentegroup.com 

 

YOUDAO, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(RMB and USD in thousands)

As of December 31,

As of December 31,

As of December 31,

2023

2024

2024

RMB

RMB

USD (1)

Assets

Current assets:

Cash and cash equivalents

454,536

592,721

81,202

Time deposits

277

Restricted cash

395

3,567

489

Short-term investments

71,848

63,064

8,640

Accounts receivable, net

354,006

418,644

57,354

Inventories

217,067

174,741

23,939

Amounts due from NetEase Group

26,117

79,700

10,919

Prepayment and other current assets

175,705

154,331

21,143

Total current assets

1,299,951

1,486,768

203,686

Non-current assets:

Property, equipment and software, net

70,906

46,725

6,401

Operating lease right-of-use assets, net

89,022

68,494

9,384

Long-term investments

51,396

72,380

9,916

Goodwill

109,944

109,944

15,062

Other assets, net

44,976

30,084

4,122

Total non-current assets

366,244

327,627

44,885

Total assets

1,666,195

1,814,395

248,571

Liabilities, Mezzanine Equity and Shareholders’ Deficit

Current liabilities:

Accounts payables

159,005

145,148

19,885

Payroll payable

282,679

264,520

36,239

Amounts due to NetEase Group

82,430

21,997

3,014

Contract liabilities

1,052,622

961,024

131,660

Taxes payable

52,781

37,603

5,152

Accrued liabilities and other payables

591,770

638,660

87,495

Short-term loans from NetEase Group

878,000

878,000

120,286

Total current liabilities

3,099,287

2,946,952

403,731

Non-current liabilities:

Long-term lease liabilities

49,337

25,566

3,503

Long-term loans from NetEase Group

630,360

913,000

125,080

Other non-current liabilities

16,314

18,189

2,492

Total non-current liabilities

696,011

956,755

131,075

Total liabilities

3,795,298

3,903,707

534,806

Mezzanine equity

37,961

Shareholders’ deficit:

Youdao’s shareholders’ deficit

(2,186,736)

(2,139,958)

(293,173)

Noncontrolling interests

19,672

50,646

6,938

Total shareholders’ deficit

(2,167,064)

(2,089,312)

(286,235)

Total liabilities, mezzanine equity and shareholders’ deficit

1,666,195

1,814,395

248,571

Note 1:

The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00=RMB7.2993 on the last trading
day of December  (December 31, 2024) as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

 

 

YOUDAO, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(RMB and USD in thousands, except share and per ADS data)

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

December 31,

2023

2024

2024

2024

2023

2024

RMB

RMB

RMB

USD (1)

RMB

RMB

Net revenues:

Learning services

784,012

767,859

617,673

84,621

3,148,114

2,747,290

Smart devices

222,407

315,305

240,444

32,941

909,192

903,669

Online marketing services

474,102

489,377

481,681

65,990

1,331,902

1,974,960

Total net revenues

1,480,521

1,572,541

1,339,798

183,552

5,389,208

5,625,919

Cost of revenues (2)

(741,720)

(783,085)

(699,045)

(95,769)

(2,621,746)

(2,877,428)

Gross profit

738,801

789,456

640,753

87,783

2,767,462

2,748,491

Operating expenses:

Sales and marketing expenses (2)

(441,399)

(519,620)

(381,815)

(52,308)

(2,268,428)

(1,872,586)

Research and development expenses (2)

(168,130)

(119,594)

(120,694)

(16,535)

(743,364)

(539,998)

General and administrative expenses (2)

(52,989)

(42,968)

(54,068)

(7,408)

(221,996)

(187,086)

Total operating expenses

(662,518)

(682,182)

(556,577)

(76,251)

(3,233,788)

(2,599,670)

Income/(Loss) from operations

76,283

107,274

84,176

11,532

(466,326)

148,821

Interest income

1,733

1,057

970

133

8,348

3,919

Interest expense

(18,869)

(15,112)

(16,828)

(2,305)

(69,472)

(73,090)

Others, net

(2,589)

(1,992)

1,594

218

(11,578)

1,585

Income/(Loss) before tax

56,558

91,227

69,912

9,578

(539,028)

81,235

Income tax (expenses)/benefits

(441)

(2,370)

2,386

327

(11,089)

(6,009)

Net income/(loss)

56,117

88,857

72,298

9,905

(550,117)

75,226

Net loss/(income) attributable to noncontrolling interests

365

(2,604)

10,705

1,466

182

6,987

Net income/(loss) attributable to ordinary shareholders of the
Company

56,482

86,253

83,003

11,371

(549,935)

82,213

Basic net income/(loss) per ADS

0.47

0.74

0.71

0.10

(4.53)

0.70

Diluted net income/(loss) per ADS

0.47

0.74

0.70

0.10

(4.53)

0.70

Shares used in computing basic net income/(loss) per ADS

119,764,891

116,965,181

117,259,091

117,259,091

121,381,857

117,426,938

Shares used in computing diluted net income/(loss) per ADS

120,426,624

117,343,848

118,705,233

118,705,233

121,381,857

118,173,469

Note 1:

The conversion of Renminbi (RMB) into United States dollars (USD) is based on the noon buying rate of USD1.00=RMB7.2993 on the last trading day of December (December 31, 2024)
as set forth in the H.10 statistical release of the U.S. Federal Reserve Board.

Note 2:

Share-based compensation in each category:

Cost of revenues

(2,975)

(171)

1,025

140

1,645

2,359

Sales and marketing expenses

865

(1,359)

1,069

146

6,071

1,183

Research and development expenses

(312)

1,868

2,402

329

8,020

8,712

General and administrative expenses

5,224

2,072

4,285

588

15,061

10,342

 

 

YOUDAO, INC.

UNAUDITED ADDITIONAL INFORMATION

(RMB and USD in thousands)

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

December 31,

2023

2024

2024

2024

2023

2024

RMB

RMB

RMB

USD

RMB

RMB

Net revenues

Learning services

784,012

767,859

617,673

84,621

3,148,114

2,747,290

Smart devices

222,407

315,305

240,444

32,941

909,192

903,669

Online marketing services

474,102

489,377

481,681

65,990

1,331,902

1,974,960

Total net revenues

1,480,521

1,572,541

1,339,798

183,552

5,389,208

5,625,919

Cost of revenues

Learning services

285,383

290,877

247,059

33,847

1,159,357

1,060,177

Smart devices

137,150

180,390

134,896

18,481

552,810

553,620

Online marketing services

319,187

311,818

317,090

43,441

909,579

1,263,631

Total cost of revenues

741,720

783,085

699,045

95,769

2,621,746

2,877,428

Gross margin

Learning services

63.6 %

62.1 %

60.0 %

60.0 %

63.2 %

61.4 %

Smart devices

38.3 %

42.8 %

43.9 %

43.9 %

39.2 %

38.7 %

Online marketing services

32.7 %

36.3 %

34.2 %

34.2 %

31.7 %

36.0 %

Total gross margin

49.9 %

50.2 %

47.8 %

47.8 %

51.4 %

48.9 %

 

 

YOUDAO, INC.

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(RMB and USD in thousands, except share and per ADS data)

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

December 31,

2023

2024

2024

2024

2023

2024

RMB

RMB

RMB

USD

RMB

RMB

Net income/(loss) attributable to ordinary shareholders of the
Company

56,482

86,253

83,003

11,371

(549,935)

82,213

Add: share-based compensation

2,802

2,410

8,781

1,203

30,797

22,596

         impairment of long-term investments

10,000

43,740

Non-GAAP net income/(loss) attributable to ordinary shareholders of
the Company

69,284

88,663

91,784

12,574

(475,398)

104,809

Non-GAAP basic net income/(loss) per ADS

0.58

0.76

0.78

0.11

(3.92)

0.89

Non-GAAP diluted net income/(loss) per ADS

0.58

0.76

0.77

0.11

(3.92)

0.89

Non-GAAP shares used in computing basic net income/(loss) per ADS

119,764,891

116,965,181

117,259,091

117,259,091

121,381,857

117,426,938

Non-GAAP shares used in computing diluted net income/(loss) per ADS

120,426,624

117,343,848

118,705,233

118,705,233

121,381,857

118,173,469

 

 

Kratom TikTokers Arrested in Vientiane Drug Crackdown

Kratom TikTokers Arrested in Vientiane Drug Crackdown
One of the offenders during a questioning session with an officer (photo credit: Lao Phattahana News)

On 18 February, authorities in Vientiane Province arrested two online Kratom sellers along with five of their customers for distributing and consuming the drug through social media platforms. 

Nuvoton Releases Plan to Launch Mass Production of New Industrial BM-ICs

KYOTO, Japan, Feb. 20, 2025 /PRNewswire/ — Nuvoton Technology Corporation Japan (NTCJ) has developed new industrial 17-cell BM-ICs “KA49701A” and “KA49702A” for 48V batteries. Mass production will start from April 2025. These products enhance the safety of battery systems and ensure simple safe system construction.

Image: https://cdn.kyodonewsprwire.jp/prwfile/release/M108245/202502124110/_prw_PI1fl_tJjts0mQ.png 

1. The battery monitoring ICs play a role in ensuring the system operates safely during anomalies such as overcharging or over-discharging of the battery. However, if the main circuits performing cell voltage measurements such as the AD converter or multiplexer of the BM-IC fail, it needs to ensure system safety with external protection circuits, but this increases board area and system cost. The major internal circuits of this product are equipped with diagnostic and fail-safe functions. This diagnostic function can detect main circuit failures and control the cut-off switch, achieving both enhanced BMS safety and reduced system cost.

Figure (English): https://cdn.kyodonewsprwire.jp/prwfile/release/M108245/202502124110/_prw_PI2fl_4z4nlNQ9.png 

Figure (Simplified Chinese): https://cdn.kyodonewsprwire.jp/prwfile/release/M108245/202502124110/_prw_PI3fl_EmXC0o1F.png 

Figure (Traditional Chinese): https://cdn.kyodonewsprwire.jp/prwfile/release/M108245/202502124110/_prw_PI4fl_ins2617Q.png 

2. By reducing noise levels on the 16-bit AD converter and incorporating a digital filter, NTCJ has achieved industry-leading voltage measurement accuracy of +/-2.9mV (*1). By improving voltage measurement accuracy, maximum battery capacity can be used. Furthermore, precise voltage measurement has been achieved over a wide temperature range. It is also suitable for applications requiring high voltage measurement accuracy in cold and hot environments, such as stationary battery systems compliant with the relevant Chinese national standard (*2).

(*1) According to a survey by Nuvoton in the industrial BM-IC field as of February 2025.
(*2) GB/T34131-2023, within the system +/-5mV @-20C to 65C.

3. By shortening the cell voltage measurement time, which has high power consumption, operating current has been achieved at 260 microampere, less than 1/10th of NTCJ’s previous standards. This enables long battery drive times. Also, optimization of the circuit design has reduced shutdown current consumption to 0.1 microampere or less. Using NTCJ’s IC, self-discharge can be minimized, preventing deterioration due to over-discharge when LIBs are transported over long distances and stored long-term.

For more details about the product, please visit: https://www.nuvoton.com/products/battery-management/battery-monitoring-ics/non-stackable/ 

About Nuvoton Technology Corporation Japan: https://www.nuvoton.co.jp/en/ 

KuCoin EU Files MiCAR Application in Austria to Ensure Compliant EEA Operations

Key Takeaways:

  • KuCoin EU Exchange GmbH (“KuCoin EU“) is applying for a Markets in Crypto-Assets Regulation (“MiCAR“) license in Austria to operate as a fully compliant crypto-asset service provider in the EU/EEA.
  • After receiving the license, KuCoin EU will be leveraging KuCoin’s cutting-edge technology and fostering the well-respected KuCoin brand to offer secure and innovative crypto products and services to KuCoin EU’s customers in EU/EEA.
  • Vienna emerges as a strategic European crypto hub with its progressive regulatory framework and access to exceptional talent.
  • Crypto industry leaders Oliver Stauber (CEO) and Christian Niedermüller (COO) will ensure operational excellence and full compliance with European Regulatory Standards as Managing Directors of KuCoin EU.

VIENNA, Feb. 20, 2025 /PRNewswire/ — KuCoin, a leading global cryptocurrency exchange, has announced that KuCoin EU Exchange GmbH is in the midst of filing an application for a MiCAR license in Austria. This application underscores KuCoin’s commitment to meeting the highest standards of regulatory compliance while solidifying its presence in the EU/EEA region.

The MiCAR license will enable KuCoin EU to serve its customers across all 30 EU and EEA member countries, ensuring consistent access to crypto products and services under a robust regulatory framework. This initiative aligns with KuCoin’s vision of fostering transparency, trust, and accountability in administering best-in-class digital asset services, offering users a secure and compliant trading platform.

KuCoin EU will set up its headquarters in Vienna, Austria, marking the city a strategic hub for all European activities and is actively hiring talents for its operations. The decision to choose Austria was primarily driven by the timely implementation of the MiCAR accompanying laws, stable and foreseeable regulatory environment as well as the huge talent pool. KuCoin EU acknowledges Austria’s efforts, e.g. driven by the City of Vienna, in creating a transparent, efficient, and best-in-class framework for crypto businesses to operate while safeguarding investors interests and fostering innovation in the financial sector.

Commenting on the establishment of the EU hub, KuCoin’s CEO BC Wong said “As a globally leading crypto exchange, we place compliance and user experience at the forefront of our mission. Today, I am proud to announce the establishment of our new EU hub in Vienna and that KuCoin EU intends to file for a MiCAR application in Austria. This marks a significant milestone in our steadfast commitment to executing a global, compliant strategy. Upon receiving a MiCAR license, we will enter the EEA market, which we deem strategically important. By advancing our compliance efforts, we are poised to better serve local users with more convenient, secure, and seamlessly localized products and experiences. We remain dedicated to fostering a transparent, responsible, and sustainable global digital asset ecosystem.”

Oliver Stauber, former General Counsel and Managing Director at Bitpanda, and Christian Niedermueller, former CEO of another European digital asset exchange, both veterans of the European crypto industry and seasoned financial executives with legal background, have been appointed as the Managing Directors of KuCoin EU Exchange GmbH. Stauber and Niedermueller bring extensive expertise in financial market regulation and crypto exchange management, strengthening KuCoin’s leading position as it navigates the complexities of Europe’s evolving crypto regulations while ensuring a successful and regulatory compliant business operation in the EU and EEA.

I am absolutely thrilled to embark on this journey as the CEO of KuCoin EU, where we are set to revolutionize the crypto landscape across the EU and EEA with innovative products and services. At KuCoin EU, our mission is clear: to create Europe’s premier, regulatory-compliant crypto asset service provider. We are excited to announce that we will apply for a MiCAR license in Austria. Upon receiving the MiCAR license we are committed to delivering secure, compliant, and cutting-edge crypto solutions that will redefine trust and innovation in the EU’s fintech arena. Get ready for a new era in crypto!”

–       Oliver Stauber, CEO of KuCoin EU

“After having scaled up another European exchange and having my toes in the digital asset industry now for more than 9 years, I am very happy to help bringing KuCoin to the next level in Europe. We aim to build a fantastic local team, have a sophisticated localized operational & product setup and also strengthen brand awareness massively in the years to come. Being a KuCoin customer myself since the very beginning in 2017, I couldn’t be prouder to support KuCoin now at this stage.”

–       Christian Niedermueller, COO of KuCoin EU

Once KuCoin EU has been granted its MiCAR license, KuCoin EU will be well-positioned to provide services for European users, offering access to a wide range of digital assets while ensuring compliance with EU regulations. The company’s long-term vision includes contributing to the broader adoption of blockchain technology and strengthening the EU’s position as a leader in the global crypto ecosystem.

As KuCoin takes this step forward, the exchange remains focused on fostering innovation and trust in the digital asset space while aligning its operations with regulatory frameworks worldwide.

About KuCoin EU

KuCoin EU Exchange GmbH, based in Vienna, Austria, is committed to establishing a fully compliant digital asset brokerage under the MiCAR framework. By leveraging KuCoin’s advanced technology and nurturing the respected KuCoin brand, KuCoin EU aims to deliver secure and innovative crypto products and services to its customers within the European Economic Area (EEA).

KuCoin EU Exchange GmbH currently does not offer any services in the EU/EEA and will only commence operation upon receiving appropriate licensing.

About KuCoin

Founded in 2017, KuCoin is one of the pioneering and most globally recognized technology platforms supporting digital economies, built on a robust foundation of cutting-edge blockchain infrastructure, liquidity solutions, and an exceptional user experience. With a connected user base exceeding 39 million worldwide, KuCoin offers comprehensive digital asset solutions across wallets, trading, wealth management, payments, research, ventures, and AI-powered bots.

KuCoin has garnered accolades such as “Best Crypto Apps & Exchanges” by Forbes and has been recognized among the “Top 50 Global Unicorns” by Hurun in 2024. This recognition reflects its commitment to user-centric principles and core values, which include integrity, accountability, collaboration, and a relentless pursuit of excellence.

KuCoin is not licensed in the EU/EEA and does not actively offer any services in the EU/EEA.

Kerry Launches 2025 Supplement Taste Charts: Pioneering the Future of Flavour in Wellness

SINGAPORE  , Feb. 20, 2025 /PRNewswire/ — Kerry Group, a global leader in taste and nutrition solutions, has launched its 2025 Supplement Taste Charts, a comprehensive guide to evolving flavour trends and innovations in the wellness industry. These charts serve as an essential tool for supplement and nutraceutical manufacturers, helping them anticipate market shifts and create health and flavour-forward products.

From gummies to powders to chewables, Kerry's 2025 Supplement Taste Charts empower brands to anticipate market shifts and deliver health benefits with flavours consumers will love
From gummies to powders to chewables, Kerry’s 2025 Supplement Taste Charts empower brands to anticipate market shifts and deliver health benefits with flavours consumers will love

Taste is a critical factor in supplement innovation. From gummies, liquid shots, effervescent powders to chewables, consumers expect their wellness products to offer enjoyable and recognisable flavours while supporting their health goals.

In Asia Pacific, Middle East & Africa, the dietary supplements market size grew to USD75 billion in 2024, up from USD61 billion in 20201, due to rising consumer awareness of the importance of health, a growing ageing population, and higher disposable income.

“Consumers today want personalised solutions for wellbeing and vitality, and flavour is a significant factor in their supplement choices. Whether it’s masking undesirable tastes, creating unique flavour combinations, or enhancing the overall sensory experience, flavour has become key in shaping the perceived value of supplements,” said Olivier De Salmiech, Vice President, Nutritional Supplements, Kerry Asia Pacific, Middle East & Africa.

Flavour Trends Reshaping the Supplement Industry

Global and regional influences continue to reshape the landscape of supplement flavours:

  • Tropical and vibrant fruit notes like lychee, mangosteen, and pi pa in Southeast Asia are rapidly expanding, matching consumer demand for hydration and immune support.
  • Around the world, botanical and herbal flavours inspired by traditional wellness practices continue to grow in popularity, with ginger, hawthorn, and lime being particularly notable in Asia.
  • Orange remains a mainstream flavour across the world – a staple in immunity-boosting formulations and functional beverages.
  • Cocoa, lavender, and rose are emerging in Australia and New Zealand, catering to consumers who want both functionality and indulgence.
  • In South Korea and Japan, consumers are seeking Asian flavours such as acai, black sesame, and chestnut in their supplement choices.
  • Turmeric, thyme for their perceived health benefits, and fun flavours such as tutti frutti, coconut, caramel & cream are growing across the Middle East.

The industry is increasingly moving away from traditional tablets and capsules, with new flavour-forward formats like gummies, stick packs, chewables, meltables, popsicles, and lollipops emerging as popular choices. These non-pill formats are growing rapidly globally and now account for 61.8% of market sales, with gummies leading at 23.4% of total sales, followed by powders at 15.7% and capsules at 14.5%2. This growth is attributed to consumers’ demand for more enjoyable, convenient ways to take supplements, driven by factors like convenience, bioavailability, and sustainability.

“Consumer demand for exceptional taste is reshaping the supplements industry,” said Olivier De Salmiech. “With the 2025 Supplement Taste Charts, Kerry empowers brands to stay ahead of these market shifts. By blending science, sustainability and authentic flavour with region specific solutions, Kerry is shaping the future of supplements, delivering health benefits with flavours consumers will love.”

Harbour BioMed and Insilico Medicine Achieve Strategic Collaboration to Advance AI-Driven Antibody Discovery and Development

CAMBRIDGE, Mass., ROTTERDAM, Netherlands and SHANGHAI, Feb. 20, 2025 /PRNewswire/ — Harbour BioMed (HKEX: 02142, the “Company”), a global biopharmaceutical company committed to the discovery, development and commercialization of novel antibody therapeutics focusing on immunology and oncology, and Insilico Medicine (“Insilico”), a clinical stage generative artificial intelligence (AI)-driven biotechnology company, today announced a strategic collaboration to accelerate the discovery and development of innovative therapeutic antibodies, leveraging their respective technological strengths in antibody discovery and artificial intelligence.

Under the collaboration agreement, the parties will combine Harbour BioMed’s industry-leading technology platform, proprietary dataset and extensive expertise in antibody development with Insilico’s advanced capabilities in designing integrated AI-driven drug discovery and development platforms to jointly develop the next-generation AI-powered antibody application. Additionally, the two companies will collaborate on early-stage drug discovery programs targeting novel, specific antibodies, leveraging Insilico’s AI expertise and Harbour BioMed’s wet lab capabilities. These efforts aim to deliver innovative therapeutic solutions for the unmet medical needs of immunology, oncology, and neuroscience.

Harbour BioMed has built a strong foundation in antibody discovery and development, underpinned by its advanced technology platform, proprietary dataset, and deep expertise. The Company’s proprietary Harbour Mice® platform enables the generation of fully human monoclonal antibodies in both conventional (H2L2) and heavy chain-only (HCAb) formats, eliminating the need for additional engineering or humanization. The HCAb technology, in particular, produces unique, fully human heavy chain-only antibodies that are approximately half the size of conventional IgGs, offering significant advantages for next-generation antibody therapies. With a clinically validated and globally recognized platform, Harbour BioMed has applied its technology in more than 250 drug discovery programs across various therapeutic areas, establishing itself as a leader in the field of biotherapeutics.

Insilico has previously showcased the capability of its proprietary AI platform to significantly reduce cost and improve efficiency in the early stages of small molecule drug discovery and development. Since 2021, the company has established a wholly-owned pipeline of 30 assets powered by its Pharma.AI platform, 10 of which have received IND clearance, setting a benchmark for AI-driven drug discovery and development. In July 2024, Insilico introduced Generative Biologics, an AI-powered tool for de novo protein engineering, designed to accelerate the development of next-generation biologics. Moving forward, the company plans to leverage real-world case studies to further refine and advance the application through ongoing enhancements and iterative improvements.

“We are excited to collaborate with Insilico, a pioneer and leading advocate in AI-driven drug discovery and development, to integrate AI technologies with our industry-leading technology platform and proven expertise in antibody discovery and development,” said Jingsong Wang, MD, PhD, Founder, Chairman, and CEO of Harbour BioMed. “By combining our validated Harbour Mice® platform with advanced generative AI approaches, we aim to further streamline antibody discovery, enhance candidate selection, and ultimately bring innovative therapies to patients more efficiently.”

“By combining advanced machine learning models with biological expertise, AI platforms are transforming antibody discovery and engineering – enabling the prediction of antibody structures, identification of binding sites, and design of candidates with enhanced specificity, efficacy, and safety,” said Feng Ren, PhD, Co-CEO and Chief Scientific Officer of Insilico Medicine. “High-quality dataset and wet-lab validation are critical components in this process, and we are thrilled to collaborate with Harbour BioMed who excel in these areas. Together, we aim to build the next generation AI-driven antibody platforms and deliver breakthrough antibody therapies to address critical healthcare needs.”

About Harbour BioMed

Harbour BioMed (HKEX: 02142) is a global biopharmaceutical company committed to the discovery, development, and commercialization of novel antibody therapeutics focusing on immunology and oncology. The Company is building its robust portfolio and differentiated pipeline through internal R&D capability, collaborations with co-discovery and co-development partners, and select acquisitions.

The proprietary antibody technology platform Harbour Mice® generates fully human monoclonal antibodies in two heavy and two light chains (H2L2) format, as well as heavy chain only (HCAb) format. Building upon the HCAb antibodies, the HCAb-based immune cell engagers (HBICE®) bispecific antibody technology is capable of delivering tumor-killing effects unachievable by traditional combination therapies. Integrating Harbour Mice®, and HBICE® with a single B cell cloning platform, our antibody discovery engine is highly unique and efficient for the development of next-generation therapeutic antibodies. For further information, please refer to www.harbourbiomed.com.

About Insilico Medicine

Insilico Medicine, a global clinical stage biotechnology company powered by generative AI, is connecting biology, chemistry, medicine and science research using next-generation AI systems. The company has developed AI platforms that utilize deep generative models, reinforcement learning, transformers, and other modern machine learning techniques for novel target discovery and the generation of novel molecular structures with desired properties. Insilico Medicine is developing breakthrough solutions to discover and develop innovative drugs for cancer, fibrosis, central nervous system diseases, infectious diseases, autoimmune diseases, and aging-related diseases. www.insilico.com 

AB Electrolux publishes 2024 Annual Report

STOCKHOLM, Feb. 20, 2025 /PRNewswire/ — AB Electrolux Annual Report for 2024 has been published on the Group’s website as of today.

The Annual Report in Swedish as well as an English translation are available on www.electroluxgroup.com in pdf-format. The Swedish Annual Report is also available on the Group’s website in European Single Electronic Format (ESEF).

This is information that AB Electrolux is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication on 20-02-2025 08:00 CET.

For more information:
Ann-Sofi Jönsson, Investor Relations, +46 73 025 10 05
Electrolux Group Press Hotline, +46 8 657 65 07

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/electrolux-group/r/ab-electrolux-publishes-2024-annual-report,c4107318

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https://mb.cision.com/Main/1853/4107318/3271037.pdf

Annual Report 2024

https://mb.cision.com/Public/1853/4107318/bfb412d695d2c318.pdf

250220 PR Electrolux publishes 2024 Annual Report eng