Chinese online gaming company, Inc. reported on late Wednesday its first-quarter net earnings declined from the previous year.

The Beijing, China-based company said its first quarter net profit was RMB269.4 million or US$38.4 million, compared to RMB301.5 million or US$43.0 million for the first quarters of 2007.

NetEase reported earnings per American depositary share of US$0.30 for the first quarter of 2008, compared to US$0.32 for the first quarters of 2007.

Analysts polled by First Call/Thomson Financial expected the company to earn US$0.31 per share for the quarter.

Total revenues for the first quarter of 2008 were RMB651.9 million or US$93.0 million, compared to RMB554.6 million or US$79.1 million first quarters of 2007.