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NetEase.com Q4 2006 Earnings Call Transcript

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2007-02-27 12:29:07.0

Tags: NetEase Inc.

Question-and-Answer Session

Operator

Yes sir. Thank you. (Operator Instructions). Our first question will come from Richard Ji with Morgan Stanley.

Richard Ji - Morgan Stanley

Hi William, Michael and Denny. Congratulations on a good quarter. I have actually two questions regarding your existing games Fantasy Westward Journey and Westward Journey II. Regarding Fantasy Westward Journey, when do we expect the rollout of the new expansion pack to ramp up the user volume. On Westward Journey II, especially I am curious about your plan to migrate your user base to Westward Journey III and do you have any concrete plan at this stage? Thanks.

Michael Tong

Hi, Richard.

Richard Ji - Morgan Stanley

Hey

Michael Tong

When you ask the question, do you mind to just translate it into Chinese as well?

Richard Ji - Morgan Stanley

(Foreign Language)

William Ding

(Foreign Language).

Michael Tong

So, let me put that in English. Our Fantasy Westward Journey has just released an expansion pack in January and we are preparing another new expansion pack that we have not fixed the time yet. For Westward Journey III, it is part of an upgrade to Westward Journey II and we will try to keep the existing users of the Westward Journey II into the new platform.

Richard Ji - Morgan Stanley

(Foreign Language)

William Ding

(Foreign Language).

Michael Tong

Just to summarize is that when all the users will be transferred into Westward Journey III then we will stop the operation of Westward Journey II. So, that’s the idea.

Richard Ji - Morgan Stanley

Yes. Thank you.

Michael Tong

Thanks.

Operator

Moving on we will go with [Lin Shi] with Lehman Brothers.

Lin Shi - Lehman Brothers

(Foreign Language)

William Ding

(Foreign Language)

Michael Tong

Yes, why don't I do a very brief summary before we go on to the next one? So, the question was why was there growth in the ACU of Fantasy Westward Journey? The similar answer to that is that besides the Christmas and the New Year's activities that we have done for the marketing during that time, we have also put a lot of hard work in improving the security for the players. They used to have some stolen accounts and that makes them difficult to log into these games and so on. But we have improved on the security systems, so that more and more players come back to play the games. The second question was, how do we think about Tianxia? The answer is, no doubt that the competition is slightly fierce but as we have prepared the game for a long time and also that we have developed a game for the taste of Chinese users and culture and we are super confident about our game. Next question?

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