FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of July 2004
Commission File Number: 333-100069
NETEASE.COM, INC.
2/F, Tower B
Keeven International Research & Development Centre
No. 43 West Road North Third Ring Road, Haidian District
Beijing, People's Republic of China 100086
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
---------------
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
---------------
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
82- N.A.
The index of exhibits may be found at Page 2
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NETEASE.COM, INC.
Form 6-K
TABLE OF CONTENTS
Page
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Signature Page 3
Press Release Regarding Date for Announcement of
Second Quarter 2004 Results and Guidance on
Revenue from Wireless Value-Added and Other
Fee-based Premium Services for the Quarter Exhibit 99.1, Page 4
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
NETEASE.COM, INC.
By: /s/ Denny Lee
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Name: Mr. Denny Lee
Title: Chief Financial Officer
Date: July 8, 2004
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Exhibit 99.1
Press Release
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Contact for Media and Investors:
Jerry Lin
NetEase.com, Inc.
ir@corp.netease.com
(+8621) 5385-3818, ext. 206
Christina Splinder
Ogilvy Public Relations Worldwide
christina.splinder@ogilvy.com
(+8610) 6443-6488, ext.505
NetEase.com to Report Second Quarter 2004 Financial Results
on August 2, 2004
NetEase.com also Provides Guidance on Revenue from
Wireless Value-Added and Other Fee-based Premium Services for the Quarter
(Beijing - July 7, 2004) - NetEase.com, Inc. (Nasdaq: NTES) announced today that
it will report its financial results for the second quarter of 2004 on August 2,
2004 (Eastern Time).
The earnings announcement will take place at 9:00 pm Eastern Time on August 2,
2004 (Beijing/Hong Kong Time: 9:00 am, August 3, 2004). Michael Tong, Executive
Director, and Denny Lee, Chief Financial Officer, will be on the call to discuss
the quarterly results and highlights, and answer questions.
This call is being webcast by CCBN and can be accessed at NetEase's corporate
web site at http://corp.netease.com.
The webcast is also being distributed over CCBN's Investor Distribution Network
to both institutional and individual investors. Individual investors can listen
to the call through CCBN's individual investor center at
www.companyboardroom.com or by visiting any of the investor sites in CCBN's
Individual Investor Network. Institutional investors can access the call via
CCBN's password-protected event management site, StreetEvents
(www.streetevents.com).
A replay of the call will be available by dialing (719) 457-0820, with
confirmation code 135697. The replay will be available from 11:00 pm Eastern
Time on August 2, 2004 until 11:00 pm Eastern Time on August 9, 2004.
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Guidance on Wireless Value-Added and Other Fee-based Premium Services Revenue
for Second Quarter of 2004
NetEase.com also announced today that its preliminary second quarter 2004
revenue for its wireless value-added and other fee-based premium services, which
are predominantly short messaging services (known as SMS), were lower than
management had anticipated. Based on these figures, management believes that
revenue (net of applicable business tax) derived from wireless value-added and
other fee-based premium services for the second quarter will decline by between
approximately 37% and 41% compared to the prior quarter. However, management
expects that revenue from online games and advertising will increase in the
second quarter of 2004 compared to the prior quarter in line with management's
expectations and that total revenue (net of applicable business tax) will be
between US$23.4 million and US$23.8 million for the quarter.
Michael Tong, Executive Director, stated, "Although we will not have final
results until later in the month, preliminary indications are that second
quarter revenue from wireless value-added and other fee-based premium services,
net of applicable business tax, will be between US$4.3 million and US$4.0
million, which represents a decline of approximately 37% to 41% from US$6.8
million in the first quarter. This is primarily attributable to a decline in our
sales of SMS services due to a decrease in the total number of new users of
these services between the first and second quarters of 2004 and an increase in
turnover of our SMS users during the period, which we believe resulted
principally from the following two factors.
First, we are continuing to see intense competition in the SMS market in China.
Second, under the direction of the Chinese governmental authorities, the mobile
phone operators, China Mobile and China Unicom, together with all third party
service providers such as our company have adopted certain new policies and
procedures, which on the one hand can facilitate mobile phone users to cancel
the wireless value-added monthly subscription services which are no longer
needed, and on the other hand, make it more complicated for mobile phone users
to order and receive new wireless value-added services by requesting the mobile
phone users to send a re-confirmation SMS message using their mobile phones to
the service providers confirming the services they ordered through the Internet.
The first measure we believe has led to the increased churn rate and the second
measure we believe has led to the slow down in growth rate of our new
subscribers."
Mr. Tong continued, "It is disappointing that our wireless value-added services
revenue will be worse than we expected. Nonetheless, we are pleased that revenue
from online games and advertising is anticipated to have grown in line with our
expectations in the second quarter, and we remain extremely excited about the
long-term growth prospects for these businesses in China. In addition, our
management is focused on a variety of strategic initiatives designed to
stabilize and enhance our wireless value-added services revenue, including
developing new higher-end wireless value-added services for our users in order
to differentiate us from the more commoditized services offered by many other
service providers in China."
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Denny Lee, Chief Financial Officer, added, "While the competitive and market
situation in the wireless value-added services market in China has led to
weakness in our revenue in this area, NetEase continues to be on a solid
financial footing, with diversified revenue streams and positive operating cash
flow."
About NetEase
NetEase.com, Inc. is a leading China-based Internet technology company that
pioneered the development of applications, services and other technologies for
the Internet in China. Our online communities and personalized premium services
have established a large and stable user base for the NetEase Web sites which
are operated by our affiliate. As of June 30, 2004, we had approximately 232
million accumulated registered accounts, and our average daily page views for
the month ended June 30, 2004 exceeded 386 million.
Community products and services which the NetEase Web sites offer include
instant messaging, personals, matchmaking, alumni clubs, personal home pages and
community forums. NetEase is also the largest provider of free e-mail services
in China. Furthermore, the NetEase Web sites provide 20 channels of content.
NetEase sources news content on world events, sports, science and technology,
and financial markets as well as entertainment content such as cartoons, games,
astrology and jokes from over one hundred international and domestic content
providers.
NetEase offers online advertising on its Web sites as well as paid listings on
its search engine, web directory and classified ads services, and an online
mall, which provides opportunities for e-commerce and traditional businesses to
establish their own storefront on the Internet.
NetEase also offers wireless value-added services such as news and information
content sent over short-messaging services, MMS and WAP technologies, and online
game services through three massively multi-player online role-playing game
titles, Westward Journey Online 2.0, Fantasy Westward Journey and PristonTale
2.0.
* * *
This press release 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 statements. 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 NetEase will
be unable to compete effectively in the wireless value-added services market in
China and that its share of that market will continue to decline; the risk that
NetEase may be compelled to expend additional resources to promote its wireless
value-added services which could negatively impact its gross margins from those
services; the risk that the current popularity of SMS in China will not
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continue for whatever reason, including SMS being superseded by other
technologies for which NetEase is unable to offer attractive products and
services; the risk that the online game market will not continue to grow or that
NetEase will not be able to maintain its leading position in that market; the
risk that NetEase may not be able to continuously develop new and creative
online services; the risk that the Internet advertising market in China will not
continue to grow and will remain subject to intense competition; the risk that
NetEase will not be able to control its expenses in future periods; the impact
of the outbreak of severe acute respiratory syndrome, or SARS, in China and
risks related to any possible recurrence of SARS or another public health
problem in China; the risk that the trading price of NetEase's American
Depositary Shares may decrease for a variety of reasons, some of which may be
beyond the control of management; competition in NetEase's existing and
potential markets; governmental uncertainties, general competition and price
pressures in the marketplace; uncertainty as to future profitability; the risk
that security, reliability and confidentiality concerns may impede broad use of
the Internet and e-commerce and other services; and other risks outlined in
NetEase's filings with the Securities and Exchange Commission, including its
registration statements on Form F-1 and Form F-3, as amended. NetEase does not
undertake any obligation to update this forward-looking information, except as
required under applicable law.
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