Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is NetEase, Inc. (NTES) Halal?

PASS

NetEase, Inc. · NASDAQ: NTES · Technology

The short answer

Yes — NetEase (NASDAQ: NTES) passes this Shariah stock screen. The Chinese internet company's FY2025 segments are online games and related value-added services (RMB92.1B, ~82% of revenue), Youdao learning (RMB5.9B), Cloud Music (RMB7.8B) and innovative businesses (RMB6.8B) — no disclosed alcohol, gambling, pork, tobacco, cannabis, conventional finance, or adult-entertainment lines. Interest-bearing debt is RMB6.38B (US$913M) ≈1.19% of its ~US$77B market cap (NTES ~US$120.61, Oct 2026); cash and securities ~US$24.3B ≈31.6% of market cap, under the ~33% guideline but close to it. FY2025 interest income, net of RMB3.95B is ~3.51% of net revenues (RMB112.6B), under the 5% ceiling. Honest disclosure: Zoya flags NTES as not Shariah-compliant and Musaffa classifies it as not halal (both Sep 2026); no ShariaPortfolio rating was found. This is a factual screen, not a religious ruling — consult a qualified scholar.

Gate 1 — Business activity: PASS

NetEase, Inc. (NASDAQ: NTES; secondary listing HKEX: 9999) is a Chinese internet technology company founded in 1997 by William Ding (CEO), describing itself as a leading internet and game services provider. FY2025 segment revenues: games and related value-added services RMB92.1 billion (~82% of total; online games ~97.3% of the segment) with franchises such as Fantasy Westward Journey, Identity V, Eggy Party, Sword of Justice, Where Winds Meet and Marvel Rivals, plus Blizzard titles in China (record-high annual revenue in 2025); Youdao online learning RMB5.9 billion; NetEase Cloud Music RMB7.8 billion; innovative businesses and others RMB6.8 billion (Yanxuan e-commerce, advertising, other value-added services). H1 2026 showed the same mix (games RMB50.7 billion of RMB60.7 billion revenue). None of the disclosed lines — online games, online learning, music streaming, e-commerce, advertising — are prohibited lines (no alcohol, gambling, pork, tobacco, cannabis, conventional banking/insurance, or adult entertainment revenue is disclosed; the company reports no gambling revenue line). Note: NetEase was named under the U.S. HFCAA audit-disclosure process but was never delisted — the ADS trades live on NASDAQ. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

At December 31, 2025 NetEase carried RMB6.38 billion (US$913 million) of short-term loans and zero long-term loans (long-term loans were RMB428 million a year earlier), per its FY2025 results announcement. Against a market cap of about US$77 billion (NTES ~US$120.61 per ADS, October 2026 quotes), debt ÷ market cap is about 1.19%, far below the ~33% ceiling. Cash and securities total about US$24.3 billion — cash and cash equivalents RMB47.2B, current time deposits RMB92.6B, short-term investments RMB22.8B, plus non-current deposits and restricted cash — about 31.6% of market cap, under this screen's ~33% guideline but close to it (company-reported net cash after loans: RMB163.5B / US$23.4B). Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: PASS

FY2025 interest income, net was RMB3,953 million (US$565 million) against net revenues of RMB112,626 million (US$16,105 million) — about 3.51% of revenue, below the 5% non-compliant income ceiling. The company says the year-over-year decline was due to lower interest income recognized in FY2025; interest paid was minimal (RMB388 million cash interest paid). Note a competing data point: Zoya cites gross interest income of about ¥4.62 billion (~4.1% of revenue) — also below 5% — yet flags NTES as not Shariah-compliant (September 2026). On the reported income-statement basis used here, Gate 3 passes. Facts only.

Key figures used

Frequently asked questions

What does NetEase do?

NetEase, Inc. (NASDAQ: NTES; also listed in Hong Kong as 9999) is a Chinese internet technology company founded in 1997 by William Ding, who serves as CEO. Its dominant business is online games and related value-added services — about RMB92.1 billion (US$13.2 billion) of FY2025 revenue, roughly 82% of the total — with franchises including Fantasy Westward Journey, Identity V, Eggy Party, Sword of Justice, Where Winds Meet (80 million+ cumulative players) and Marvel Rivals, plus publishing Blizzard titles in China. The rest is Youdao online learning (RMB5.9 billion), NetEase Cloud Music (RMB7.8 billion), and innovative businesses such as the Yanxuan e-commerce brand and advertising (RMB6.8 billion). The ADS is live on NASDAQ (about US$120.61, market cap about US$77 billion, October 2026); it was once named under the HFCAA audit-disclosure law but was never delisted and continues to trade.

Why does NetEase pass this Shariah stock screen?

On this site's three-gate screen NetEase passes: (1) business — no disclosed alcohol, gambling, pork, tobacco, cannabis, conventional finance, or adult-entertainment revenue lines; online games are not casinos, and the company reports no gambling revenue; (2) financial structure — interest-bearing debt of about US$913 million is only ~1.19% of its ~US$77 billion market cap, far below the ~33% ceiling; cash and securities of about US$24.3 billion are ~31.6% of market cap, under the ~33% guideline but close to it; (3) income — FY2025 interest income, net of RMB3.95 billion (US$565 million) is about 3.51% of net revenues (RMB112.6 billion / US$16.1 billion), below the 5% non-compliant income ceiling. Two independent screeners disagree: Zoya flags NTES as not Shariah-compliant and Musaffa classifies it as not halal (both September 2026). This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

What is NetEase's interest-bearing debt ratio?

At December 31, 2025 NetEase reported short-term loans of RMB6.38 billion (US$913 million) and zero long-term loans — long-term loans were nil versus RMB428 million a year earlier. Against a market capitalization of about US$77 billion (NTES at about US$120.61 per ADS, October 2026), debt ÷ market cap is about 1.19%, far below the ~33% ceiling. Cash and securities are large: cash and cash equivalents RMB47.2 billion, current time deposits RMB92.6 billion, short-term investments RMB22.8 billion, plus smaller non-current deposits and restricted cash — about US$24.3 billion in total, or ~31.6% of market cap, which is under this screen's ~33% guideline but close to it (net cash after loans was RMB163.5 billion / US$23.4 billion).

What is NetEase's non-compliant income ratio?

For fiscal year 2025 NetEase reported interest income, net of RMB3,953 million (US$565 million) against net revenues of RMB112,626 million (US$16,105 million) — about 3.51% of revenue, below the 5% non-compliant income ceiling. (Zoya cites a gross interest-income figure of about ¥4.62 billion, roughly 4.1% of revenue — also below 5% — yet flags NTES as not Shariah-compliant, September 2026.) Interest expense is minimal: cash paid for interest in FY2025 was RMB388 million, per the cash-flow statement. The ratio used here is the reported income-statement line, not a blended figure.

Do Zoya, Musaffa, or ShariaPortfolio cover NetEase?

Zoya covers NTES and flags it as not Shariah-compliant (September 2026), citing interest income of about ¥4.62 billion against revenue of ¥112.63 billion (~4.1%). Musaffa also covers NTES and classifies it as not halal under its AAOIFI methodology (September 2026); no reason is stated on its public page. No ShariaPortfolio rating for NTES was found — honestly reported as absent, not invented. This page's PASS result is this site's own three-gate screen applied to NetEase's FY2025 disclosures (results announced February 11, 2026) and differs from the Zoya/Musaffa classifications; the discrepancy is disclosed rather than hidden.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).