On June 1, NetEase announced the launch of Hong Kong’s initial public offering with the code “9999.HK”. NetEase will publicly issue 17148 million new common shares in Hong Kong, with an offer price capped at HK$126 per share, and will begin trading on the Hong Kong Stock Exchange at 9 am on June 11. Shares and pricing: newly issued 17148 million shares, The offer price is not higher than HK$126

This issue will newly issue 171,480,000 ordinary shares, and the offer price of the Hong Kong public offering will not be higher than per share The offer shares are HK$126.00. The company will comprehensively consider the US deposits and trades made on NASDAQ The closing price of the stocks on or before the last trading day, as well as investor demand during the roadshow, will determine the international offer price on June 5, 2020 Hong Kong time. The final Hong Kong offer price will be the lower of the final international offer price and the highest offer price (HK$126.00 per offer share).

American depositary shares representing the company’s common shares (each representing 25 common shares) will continue to be listed and traded on the NASDAQ. Investors participating in this offering will only be able to subscribe for ordinary shares, but not American Depositary Shares. After the completion of this Hong Kong listing, the company’s Hong Kong-listed shares and NASDAQ-listed American depositary shares will be fully convertible. The shares will be traded in units of 100 shares per lot. Funding purpose: concentrated on globalization strategy And opportunities, enrich and enhance innovative content and technology

Netease intends to use the net proceeds from this issuance for globalization strategies and opportunities to promote innovation Constantly pursue and use for general corporate purposes. These include:

1. Globalization strategies and opportunities account for about 45%.

Continue to improve NetEase’s global influence by enriching online game content in overseas markets (such as Japan and the United States) and enhancing NetEase’s global R&D and game design capabilities.

Continue to explore global opportunities by investing in and cooperating with international game developers, IP and content owners.

is committed to developing Netease’s intelligent learning and other innovative businesses in overseas markets.

Second, promote NetEase’s continuous pursuit of innovation, accounting for about 45%.

Continue to enrich and enhance Netease’s innovative content and enhance Netease’s innovative technology

Three, general corporate purposes, accounting for about 10%. Business overview: the three major business segments cover the Chinese super 1 billion users, the world’s second largest game company Developer and operator, the Youdao business launched in 2006, has become an intelligent learning platform listed on the New York Stock Exchange; launched the music streaming media platform NetEase Cloud Music in 2013; in 2016, opened a strict selection of e-commerce platform and quickly grew into the mainstream Own branded goods platform. Self-operated Internet attribute retail brands, information media platforms, etc., cover more than 1 billion users across China.

According to the data disclosed in the prospectus, as of December 31, 2019, the core data of each business segment of NetEase is as follows:

Online games: Currently provides more than 140 mobile games and end games, covering a wide range of game types, which can meet the growing and diversified needs of the global player community.

In 2019, the world’s top three gaming markets: China, the United States, and Japan, account for about 60% of the total global gaming market. The size of the global game market in 2019 is US$152.1 billion, and it is expected to grow to a further US$196 billion at a CAGR of 8.8% by 2022. In 2022, global mobile game revenue is expected to reach 95.4 billion US dollars (almost accounted for