Chinese games company NetEase listed on the NASDAQ in Jun 2000. In May 2001, the company announced a delay to its 1Q01 results as it had uncovered possible misreporting of US$1m of advertising revenue. In June, this was expanded to include FY00 results prompting the resignation of the company's CEO and CFO, leading to a share price collapse. In August, NetEase announced the completion of its investigation which showed that some revenues had been pulled forward, some bartered and some made up. Sales had been overstated by US$3.7m, or 100%, and losses understated by 16%. Despite this, NetEase went on to become one of China's most successful companies with revenues of more than US$13bn by FY21.

Last updated August 2022.

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