# EDGAR Filing Document

**Accession Number:** 0001110646
**File Stem:** 0000000000-25-007026
**Filing Date:** 2025-7
**Character Count:** 7886
**Document Hash:** 241b6bbfa150384adfb6db41d8a9ef66
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-25-007026.hdr.sgml**: 20251217

**ACCESSION NUMBER**: 0000000000-25-007026

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20250702

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NetEase, Inc.
- **CENTRAL INDEX KEY:** 0001110646
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** UPLOAD
- **SEC FILE NUMBER:** 000-30666

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NETEASE BUILDING, NO. 599 WANGSHANG RD
- **STREET 2:** BINJIANG DISTRICT
- **CITY:** HANGZHOU
- **PROVINCE COUNTRY:** F4
- **ZIP:** 310052
- **BUSINESS PHONE:** 86 571 8985 3378

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NETEASE BUILDING, NO. 599 WANGSHANG RD
- **STREET 2:** BINJIANG DISTRICT
- **CITY:** HANGZHOU
- **PROVINCE COUNTRY:** F4
- **ZIP:** 310052

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NETEASE.COM, INC.
- **DATE OF NAME CHANGE:** 20040719

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NETEASE COM INC
- **DATE OF NAME CHANGE:** 20000330
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001410578-25-000728

## Text-Extract

```

                                                            July 2, 2025

Sarah Ying Li
Head of Financial Reporting
NetEase, Inc.
NetEase Building, No. 599 Wangshang Road
Binjiang District, Hangzhou, 310052
People   s Republic of China

       Re: NetEase, Inc.
           Form 20-F for the Fiscal Year Ended December 31, 2024
           File No. 000-30666
Dear Sarah Ying Li:

       We have limited our review of your filing to the financial statements
and related
disclosures and have the following comments.

       Please respond to this letter within ten business days by providing the
requested
information or advise us as soon as possible when you will respond. If you do
not believe a
comment applies to your facts and circumstances, please tell us why in your
response.

       After reviewing your response to this letter, we may have additional
comments.

Form 20-F for the fiscal year ended December 31, 2024
Introduction, page 1

1.     Your definition of China or the PRC appears to exclude Hong Kong and
Macau for
       purposes of describing the PRC rules, laws, regulation and regulatory
authority or
       other legal, tax or finance matters. Please revise to remove the
exclusion of Hong
       Kong and Macau from such definition. Clarify that all the legal and
operational risks
       associated with having operations in the People   s Republic of China
(PRC) also apply
       to operations in Hong Kong and Macau. In this regard, ensure that your
disclosure
       does not narrow risks related to operating in the PRC to mainland China
only. Where
       appropriate, you may describe PRC law and then explain how law in Hong
Kong and
       Macau differs from PRC law and describe any risks and consequences to
the company
       associated with those laws.
 July 2, 2025
Page 2
Item 3. Key Information, page 5

2.     We note changes you made to your disclosure on pages 7 and 55 relating
to legal and
       operational risks associated with operating in China and PRC
regulations. The
       Samples Letters to China-Based Companies sought specific disclosure
relating to the
       risk that the PRC government may intervene or influence your operations
at any time,
       or may exert more control over operations of your business, which could
result in a
       material change in your operations and/or the value of your securities.
It is unclear to
       us that there have been changes in the regulatory environment in the PRC
since the
       filing of your December 31, 2022 Form 20-F that would warrant revised
disclosure to
       mitigate the challenges you face and related disclosures. For additional
guidance, refer
       to the Division of Corporation Finance   s Sample Letter to China-Based
Companies,
       issued December 2021 and July 2023. In future filings, please restore
your disclosure.
Item 5. Operating and Financial Review and Prospects
Results of Operations
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023, page 117

3.     You state the increase in net revenue from online games was attributable
to strong
       performance of certain self-developed titles and mobile titles and
certain licensed
       titles, which were partially offset by decreased net revenues from live
streaming
       services. Similarly, you attribute the increase in cost of revenues from
your games and
       related value-added services to an increase in royalty fees for certain
licensed games
       and staff costs, which was partially offset by a decrease in revenue
sharing costs.
       Where a material change in a line item is attributed to two or more
factors, including
       any offsetting factors, please revise throughout your results of
operations disclosure to
       include a quantified discussion of each identified factor. In addition,
avoid using terms
       such as "principally" or "mainly." Refer to Item 5.A.1 of Form 20-F.
4.     We note that in your earnings release furnished on February 20, 2025 and
in several
       investor presentations, you separately discuss the percentage of net
revenue generated
       from online games and mobile games such that it appears discrete
financial
       information may be available. In addition, we note from your risk factor
disclosures
       that profits from mobile games, even if the games are successful, are
generally lower
       than profits generated from PC games. Please tell us your consideration
to separately
       quantify revenue from mobile games and PC games for each period
presented in an
       effort to add context to the revenue mix and its impact on your gross
profit margins
       for your games and related value-added services segment.
E. Critical Accounting Estimates
Estimate of Average Playing Period of Paying Players, page 137

5.     We note you generate revenue from the sale of in-game virtual items for
both your
       mobile and PC games, some of which are recognized over the estimated
average
       playing period of the paying players. Please tell us your consideration
to disclose the
       estimated average playing period or range of such period separately for
mobile and
       PC games. To the extent changes in such estimates, if any, significantly
impacted your
       revenue or results of operations, tell us how you considered including a
discussion of
       such change. In your response, provide us with the estimated average
playing period
       for your PC and mobile games for each period presented.
 July 2, 2025
Page 3

Notes to Consolidated Financial Statements
Note 28. Segment Information, page F-44

6.     Please revise to discuss how the CODM uses gross profit, which appears
to be the
       segment measure of profit or loss, in assessing segment performance and
deciding
       how to allocate resources. Refer to ASC 280-10-50-29(f) and the example
in 280-10-
       55-54(c).
        In closing, we remind you that the company and its management are
responsible for
the accuracy and adequacy of their disclosures, notwithstanding any review,
comments,
action or absence of action by the staff.

       Please contact Chen Chen at 202-551-7351 or Kathleen Collins at
202-551-3499 with
any questions.

                                                          Sincerely,

                                                          Division of
Corporation Finance
                                                          Office of Technology
cc:   Paul W. Boltz, Jr.

```

### Attached PDF Documents

**Attachment 1:** `filename1`

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