NetEase intends to go to Hong Kong for secondary listing.

Netease plans to go public in Hong Kong for the second time. On May 29, the website of the Hong Kong Stock Exchange published the NetEase ’s hearing data set, and Ding Lei, the founder and CEO of NetEase, sent a letter to shareholders “Believing in the Power of Love”.

In the shareholder letter, Ding Lei said: We are preparing for a secondary listing in Hong Kong, bringing the time-tested brand “NetEase” back to China. “I believe that based on this market we are very familiar with, closer to our users, love will burst out with greater power.”

NetEase in Nas, 2000 Dak has been listed for 20 years. After Alibaba went public in Hong Kong for the second time last year, Chinese stocks including Netease and JD may follow this trend. According to the Hong Kong Letters and Finances report on May 29, the Hong Kong Stock Exchange has approved the listing applications of NetEase and JD.NetEase is expected to raise funds of 2 billion to 3 billion US dollars, and Jingdong plans to raise 3 billion US dollars.

Ding Lei explained NetEase ’s strategy, development speed and boundaries in the shareholder letter.

Ding Lei mentioned that it is often said that NetEase is a company that makes people “incomprehensible”. In this regard, Ding Lei said that when you use the keywords “user” and “passionate love” to search Netease’s past, you will never say that you can’t understand NetEase. The tuyere will disappear and the wind direction will change. Only the people’s hearts remain the same, and the user’s needs will last forever. NetEase is never afraid of slowness, no rush to raise money, no rush to make money. Instead, we look for smarter money and pick more discerning users.

Ding Lei recalled that when NetEase first went public, he was 29 years old. At that time, there were 221 employees, and now there are more than 20,000 people. When the organization expanded at a hundred-fold scale, NetEase employees ’ The average age has remained within 29 years.

“This special fate made me think that it is very relevant to NetEase when I look at ’29 years old ‘: it will not fade the sharpness of young people, and it will not touch the twilight of old age. It ’s not green, but it ’s not smooth, so it ’s enough to take on the important task. ”Ding Lei said,“ So from today, we will ask all managers to quickly and massively tap all kinds of young talents to make those smart young People, devoted young people, and fearless young people can be nurtured faster and grow faster.Business is very important and cannot be avoided. ”

The data set after the hearing shows that NetEase started as a typical Chinese portal in the late 1990s and launched media and electronics that are still flourishing to this day. Mail service. In 2001, NetEase’s strategy expanded to the online gaming business. According to App Annie’s data, NetEase has now become the world’s second largest mobile game company based on 2019 iOS and Google Play comprehensive user expenditure. Dao business launched. In 2013, NetEase released NetEase Cloud Music. As of the end of 2019, NetEase Cloud registered more than 800 million users. In 2016, NetEase Yanxuan was founded.

2019 In the fiscal year, NetEase’s net income was 59.241 billion yuan, an increase of 15.8% over the same period of the previous year, and the net profit attributable to shareholders was 13.275 billion yuan. Ding Lei held 44.7% of NetEase’s equity and was NetEase’s largest shareholder.


The following is: “I believe in the power of love”-Netease CEO Ding Lei’s letter to shareholders

To our investors:

When NetEase went public on NASDAQ in June 2000, the beginning of the new century overlapped with our new journey. At the time, we were curious about where the future would go.

Today, Netease ’s stock price has performed well regardless of whether it is a multiple or an annual compound growth rate. We distribute dividends to shareholders every quarter, and we have also persisted for 6 years. This is a good trend. It represents our willingness to share growth with investors, and it also means that NetEase is still as vigorous and energetic as a teenager.

Youth is more high-spirited, enthusiastic, and curious, but less complicated, city-ish, and scheming. In a complex world, this simplicity is confusing. So it is often said that NetEase is a company that makes people “understand”. The incomprehensible and misunderstood information is just an opportunity to explain.


1. Some people say that they do n’t understand NetEase ’s strategy.

In my opinion, “strategy” is a metaphysical concept. When it comes to strategy, many people always want to show grand blueprints and sophisticated calculations. But the charm of business lies in it, there are always some accidents that will make those on paperSubtle calculation failure.

For NetEase, our business strategy is not derived from any big ideas. Before starting a new business, we usually ask ourselves: Does this product solve the real needs of users? Do we love this cause and have the ability to do better?

In this, user needs are fundamental, love is the source, ability is capital, and there are few calculations and locations of the city. I think this is a philosophy unique to NetEase: like a fool, perseverance for one thing, crazy for an idea, one day we will find the answer we want.

Therefore, when you use the keywords “user” and “passionate love” to search Netease’s past, you will never say that you cannot understand NetEase. The tuyere will disappear and the wind direction will change. Only the people’s hearts remain the same, and the user’s needs will last forever.

NetEase believes in human power.


2. Some people say that they cannot understand the speed of NetEase.

For the Internet, slow seems to be the original sin. But eating too much fast food makes it easy for people to lose their ability to perceive goodness. NetEase is never afraid of slowness, no rush to raise money, no rush to make money. Instead, we look for smarter money and pick more discerning users. As early as the beginning of 2000, NetEase decided on a quality strategy, which was the right choice we made in the face of competition and difficulties.

High-quality products mean long-lasting research and insight into people’s hearts, which means careful carving, these are all in a hurry. We can polish a game in the past 20 years, or we can use a few years to make a music app. The constant force behind is nothing more than playing steady with your own rhythm. I’m still in the wind, southeast, northwest.

Being a company, it is never a 100-meter run, but a marathon. Starting and temporary speed does not mean winning. Since we are seeking long-term, then we have to come up with good things that are worthy of users and the times.

NetEase believes in the power of time.


3. Some people say that they do n’t understand NetEase ’s boundaries.

NetEase has experienced several cyclical crises, IWe survived. Is it because we are smarter and more fortunate than others? I do n’t think so, because we respect basic common sense more: Only by creating real value for users and society can a business be operated for a long time.

From mailboxes, portals, mutual entertainment, open classes, to Youdao, music, e-commerce … we do n’t define ourselves, we do n’t bind ourselves, no matter the borders, no matter the field . As long as I believe that I can change something, I am willing to fight for it.

This kind of unlimited, sometimes will lose some short-term gains, sometimes will not be recognized and understood, and may even get some ridicule and ridicule. But fortunately, we have a big heart and a thick skin, and we can still face it calmly.

This calmness also comes from our obsession: In addition to making money, we must continue to bring some beautiful changes to the world; in the conflict between ideals and reality At the time, be as partial as possible to ideals. Because, the beautiful arrival is always slow and long.

NetEase believes in the power of faith.


Future NetEase

In my opinion, the development of NetEase has always been “yangmou”, with simple enough logic and love, and repeated More than 20 years. Next, I think the important thing is to continue to insist and repeat. We will focus on four things:


1. Build an organization with self-evolution ability and always stay 29 years old.

Since the end of 2018, we have made a series of organizational structure adjustments, more focused and focused on some race tracks, which makes us in today ’s global crisis It is not too passive. In the next step, NetEase will place the organization building in an extremely important position. Recently, we have comprehensively upgraded our corporate culture, and have written our valued “enthusiasm” and “with users” and other corporate spirits into the values, and will strictly implement it.

When I was 29, NetEase just went public. At that time we had 221 employees, and now we have more than 20,000 people. When the organization expanded at a hundred-fold scale, the average age of NetEase employees has remained within 29 years of age. This special fate made me think that it is very relevant to NetEase when I look at “29 years old”: it does not fade the sharpness of young people and does not touch the twilight of old age. It ’s not green, but it ’s not smooth.Worldly, enough to shoulder the heavy responsibility.

So from today, we will ask all managers to quickly and massively tap all kinds of young talents, so that those smart young people, love young people, Fearless young people can be trained faster and grow faster. This task is very important and cannot be avoided.


2. Continue Netease’s consistent quality strategy and make more products that make the team proud.

2020 is full of uncertainty, but people ’s pursuit of beauty is certain. Regardless of external challenges, NetEase will always operate the company on the principle of withstanding the test of time to make products. It is not enough to satisfy users, but also to create surprises.

We want to make such a product: when the team lifts the product, it is full of pride and pride; when the user uses the product, sincerely like it, even show off. This high-profile product may usher in competitors’ catch-up, imitation, and even blows. But it will also force our team to think about how to continue to lead. This will ultimately bring users a better experience.


3. Based on China, firmly promote the globalization strategy and keep pace with the world.

As early as a few years ago, NetEase began to explore overseas in the fields of mutual entertainment, education, music, e-commerce and so on. Although most people know very little about this, what I can share with you today is that the results are good.

Globalization is an inevitable choice Netease will make on the basis of its own strength improvement. When we aspire to the mission vision of “netize people’s strength and create a better life with technological innovation”, we must inevitably need a larger stage to realize it. Next, NetEase will base itself on China, and at the same time continue to promote innovation and breakthroughs in overseas markets through internal incubation, investment, cooperative development, and strategic alliances. China’s good products are worth being seen by more people.


4. Promote more inclusive resources and give micro-individuals greater energy and support.

NetEase was founded by the spirit of the Internet. In the future, NetEase will continue to unswervingly walk with the open, fair and shared Internet spirit. We are not a company that just wants to make money, please all investors understand and support thisa little.

In the post-COVID-19 era, progress comes with challenges. Netease will continue to explore and innovate in different areas of life, such as basic materials, entertainment, and education, to give people greater energy support. Making the basic resources that make up a better life more universal is our continuing business.

Dear investors, when NetEase first went public 20 years ago, being young was the biggest obstacle to gaining trust from investors and the media. But as you have already seen, it is precisely because of our youth that our passion for hope and opportunity has never diminished.

June is the 20th anniversary of the listing of NetEase. At this node, I am very happy to share with you a good news: We are preparing for a secondary listing in Hong Kong. “This time-tested brand is brought back to China. I believe that based on this market we are very familiar with, closer to our users, the love will burst out with greater power.

Thank you to all colleagues and users who have been with NetEase for a long time, and thank our investors. At the end of the letter, I want to end with a sentence that I said in my university alma mater in 2003:

To this day, we have not succeeded, we are still growing.

NetEase Founder & CEO

Ding Lei