NetEase.com, Inc. (Nasdaq: NTES), a leading Internet technology company supporting China’s top ranked-web sites, today announced its achievement highlights for the quarter ended September 30, 2000.
iamasia Rankings
During the third quarter, the NetEase Web site was rated China's number one Web site in terms of unique home audience users and number of page views by iamasia, a leading source of intelligence on Internet usage in the Asia Pacific region. According to the report, the NetEase 163.com site reaches more than half of all China’s home Internet users; reaches 17 percent more people than the second-ranked Web site, Sina.com.cn; has twice as many unique users as Yahoo! China; and has 4 times more total page views than China.com. In addition to having the number one ranked Web site, www.163.com, the NetEase yeah.net site, was ranked the fourth most popular portal.
Marketing Campaign
On August 15th, NetEase launched a new television advertising campaign aimed at stimulating further growth of China’s Internet. The theme of the campaign, “Power to the People,” reflects NetEase’s belief that the Internet empowers its users through meaningful information sharing and exchange. According to China Internet Network Information Center’s recent semi-annual report, Internet users in China doubled during the first six months of this year to 16.9 million users.
Technology Developments
During the third quarter, NetEase expanded upon its heritage of technological innovation with new product developments and enhancements. The NetEase Web sites now allow single logon for access to all products within its network with the deployment of the NetEase User Registration System, or “NetEase Passport”. To enhance user experience, the NetEase Web sites re-launched 18 content channels providing richer content and improved navigation functionality, revamped NetEase email systems to offer advanced features such as WAP mail, and improved the sites’ community and chat systems. The NetEase Web sites have also incorporated an Open Directory model that relies on volunteer editors to enhance the quality and comprehensiveness of its Chinese language Web directory. Consistent with the company’s brand idea of “Power to the People,” the new directory allows registered volunteer editors to continually locate and retain the best content, thus promoting the sharing and exchange of information among the NetEase Web sites’ growing user base.
Susan Chen, NetEase’s Chief Operating Officer commented, “The powerful combination of the NetEase Web sites’ number one ranking by iamasia, our successful branding campaign and our technology expertise establish the NetEase Web sites as the premier Web sites in China. As a result, we are bringing in substantial new advertising customers. During the quarter, we signed on a record 42 new advertising customers. Our advertising customers include market leaders such as Nokia, Microsoft, AT&T, Intel, China Construction Bank and Smithkline Beecham.”
Strategic Alliances
EachNet:
During the third quarter, NetEase entered into a strategic partnership with EachNet, China’s top-ranked auction Web site. NetEase and EachNet partnered to create a co-branded Web site (eachnet.163.com), enabling the users of the NetEase Web sites to access EachNet’s extensive range of auctions. NetEase and EachNet will share advertising revenues and commissions from transactions made on the co-branded site. In addition, NetEase and EachNet will jointly market and offer application technology services to assist Chinese businesses seeking e-commerce solutions.
Google:
During the quarter, NetEase announced the selection of Google as the Web sites’ premier Chinese language search engine. NetEase is the first China based company to utilize Google’s search technology.
CITIC Industrial Bank
As proof of NetEase’s belief in bringing “Power to the People” through initiatives enhancing China’s Internet growth, NetEase has formed a strategic partnership with CITIC Industrial Bank, one of the major commercial banks in China. Under this agreement, both companies will pool their expertise and resources to design CITIC Industrial Bank's corporate Web site. The partnership between NetEase and CITIC Industrial Bank aims to promote e-commerce in China through the development of online banking, online payment, credit cards and corporate financial services.
Lai summarized, “From educating customers and media buyers in developing effective advertising mechanisms to promoting adoption of electronic commerce, NetEase is helping to accelerate the development of China’s Internet market. We are extremely proud of our results this quarter as they further validate our position as a leader in this rapidly growing market.”
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