External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>Revenue of China’s online game market decreased by 23% YoY to RMB21.6bn in Feb 2023 per CNG, as new games were yet to make meaningful revenue contribution, and 2022 Chinese New Year (CNY) holiday fell in February whilst it took place in January in 2023, which led to a tougher comp.</li><li>Smoothing out CNY impact, 2M23 online games market revenue was down 20% YoY.</li><li>As game license approval resumed, many highly anticipated game titles are lined up for launch and will lead industry recovery from 2Q23 onwards, in our view. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Revenue of China’s online game market decreased by 23% YoY to RMB21.6bn in Feb 2023 per CNG, as new games were yet to make meaningful revenue contribution, and 2022 Chinese New Year (CNY) holiday fell in February whilst it took place in January in 2023, which led to a tougher comp.Smoothing out CNY impact, 2M23 online games market revenue was down 20% YoY.As game license approval resumed, many highly anticipated game titles are lined up for launch and will lead industry recovery from 2Q23 onwards, in our view. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Internet – February online game market recap

Equity Bottom-Up

<ul><li>NetEase reported 4Q22 results on 23 Feb. 4Q22 revenue was up by 4% YoY to RMB25.4bn, in line with our and consensus estimate.</li><li>Full-year revenue in FY22 grew by 8% YoY to RMB96.5bn. Non-GAAP net income declined by 27% YoY to RMB4.8bn in 4Q22, lower than the consensus estimate of RMB5.2bn, primarily due to the lower-than-expected gross margin.</li><li>Overall GPM was down by 0.8pct YoY to 52.2% (vs. consensus 55.2%) in 4Q22, mainly due to the oneoff recognition of c.RMB1bn royalty fees related to certain licensed games (c.4% of total revenue). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NetEase reported 4Q22 results on 23 Feb. 4Q22 revenue was up by 4% YoY to RMB25.4bn, in line with our and consensus estimate.Full-year revenue in FY22 grew by 8% YoY to RMB96.5bn. Non-GAAP net income declined by 27% YoY to RMB4.8bn in 4Q22, lower than the consensus estimate of RMB5.2bn, primarily due to the lower-than-expected gross margin.Overall GPM was down by 0.8pct YoY to 52.2% (vs. consensus 55.2%) in 4Q22, mainly due to the oneoff recognition of c.RMB1bn royalty fees related to certain licensed games (c.4% of total revenue). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Netease (NTES US) – Aiming for long-term growth

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

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Cross Asset Strategy

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In Depth: China’s rural Covid wave exposes flaws in plan to prevent hospital overcrowding
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Xi says China must boost consumer spending, foreign investment this year
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China to take action against U.S. entities after balloon-related blacklisting
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In Depth: China’s rural Covid wave exposes flaws in plan to prevent hospital overcrowding


Xi says China must boost consumer spending, foreign investment this year


China to take action against U.S. entities after balloon-related blacklisting



CX Daily: Exclusive: Billionaire Founder of China Renaissance Goes Missing

<ul><li>In Depth: China boots record number of companies from its bourses</li><li>Covid deaths fall nearly 80% from January peak, China CDC says</li><li>China shivers through freezing Lunar New Year as temperature records tumble</li></ul>

In Depth: China boots record number of companies from its boursesCovid deaths fall nearly 80% from January peak, China CDC saysChina shivers through freezing Lunar New Year as temperature records tumble

CX Daily: China Boots Record Number of Companies From Its Bourses

<ul><li>China’s game licensing regulator green-lit a fresh batch of titles for market for the third time in as many months</li><li>January’s licenses are an upbeat sign from the NPPA, which follows regulatory signals in July that the permit process would be streamlined after years of uncertainty. </li><li>Games must have a license from the regulator before they can enter the market. Typically handed out monthly, licenses were issued just seven times last year after an eight-month freeze that ended in April.</li></ul>

China’s game licensing regulator green-lit a fresh batch of titles for market for the third time in as many monthsJanuary’s licenses are an upbeat sign from the NPPA, which follows regulatory signals in July that the permit process would be streamlined after years of uncertainty. Games must have a license from the regulator before they can enter the market. Typically handed out monthly, licenses were issued just seven times last year after an eight-month freeze that ended in April.

China’s Video Game Regulator Issues Fresh Licenses in Positive Sign for Recovering Industry

China

NetEase, Inc. is an Internet technology company that develops applications, services and other Internet technologies in China. The Company's core businesses consist of email service, web portal and online entertainment, including online gaming services. NetEase also offers online advertising, search, mobile applications and e-commerce.

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NetEase Inc (NTES US)

China Internet – February online game market recap

Revenue of China’s online game market decreased by 23% YoY to RMB21.6bn in Feb 2023 per CNG, as new games were yet to make meaningful revenue...

CMB International

Netease (NTES US) – Aiming for long-term growth

NetEase reported 4Q22 results on 23 Feb. 4Q22 revenue was up by 4% YoY to RMB25.4bn, in line with our and consensus estimate.

CMB International

CX Daily: Exclusive: Billionaire Founder of China Renaissance Goes Missing

In Depth: China’s rural Covid wave exposes flaws in plan to prevent hospital overcrowding Xi says China must boost consumer spending, foreign...

Caixin Global

CX Daily: China Boots Record Number of Companies From Its Bourses

In Depth: China boots record number of companies from its bourses. Covid deaths fall nearly 80% from January peak, China CDC says

Caixin Global

China’s Video Game Regulator Issues Fresh Licenses in Positive Sign for Recovering Industry

China’s game licensing regulator green-lit a fresh batch of titles for market for the third time in as many months. January’s licenses are an...

Caixin Global

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