Today, NetEase announced the fourth quarter and full year of 2021 financial reports, and the earnings conference call will be held at 8 p.m. Beijing time.
According to the data, NetEase's net income in Q4 in 2021 was 24.4 billion yuan, and its net income in 2021 was 87.6 billion yuan. Under non-GAAP, net profit attributable to shareholders of the Company in Q4 2021 was $6.6 billion and net profit attributable to shareholders of the Company in 2021 was $19.8 billion.
After the release of the data, NetEase once went higher, but due to the impact of the external environment, it is now down 2.2%.
Fourth quarter financial indicators
Net income was RMB24.4 billion (US$3.8 billion), an increase of 23.3% year-on-year.
Gross profit was RMB12.9 billion (US$2 billion), up 30.1% year-on-year.
Operating expenses totaled RMB8.3 billion (US$1.3 billion), an increase of 20.2% year-on-year.
Net profit attributable to shareholders of the Company was RMB5.7 billion (USD 893.5 million). Non-GAAP net profit attributable to shareholders of the Company was RMB6.6 billion (US$1 billion).
Basic net income per share was $0.27 (basic net income per Adsary Washi was $1.36). Non-GAAP net income per underlying share was $0.32 (basic net income per Adsary Share was $1.58).
Fourth quarter operating indicators
Net revenue from online gaming services was RMB17.4 billion (US$2.7 billion), an increase of 29.8% year-on-year.
Youdao's net income was RMB1.3 billion (US$209.3 million), an increase of 20.5% year-on-year.
Cloud Music's net revenue was RMB1.9 billion (US$296.5 million), an increase of 23.9% year-on-year. Q4 Gross margin was further improved, with a gross margin of 2.0% in 2021. By the end of 2021, the number of independent musicians settled in NetEase Cloud Music exceeded 400,000, ranking first in the industry.
Innovation and other business net income was RMB3.8 billion (US$588.9 million), an increase of 0.6% year-on-year.
Full-year 2021 metrics
Net income for 2021 was RMB87,606 million (US$13,747.3 million) and RMB73,667.1 million for 2020.
Net profit attributable to shareholders of the Company for 2021 was RMB16,856.8 million (USD 2,645.2 million) and RMB12,062.8 million for 2020.
Net profit attributable to shareholders of the Company under non-GAAP for 2021 was RMB19,761.9 million (USD 3,101.1 million) and RMB14,706.0 million in 2020.
Basic net income per share of $0.80 for 2021 (net income per basic ADS of $3.98) and basic net income per share of $0.57 for 2020 (net income per basic ADS of $2.86)
Full-year 2021 operating metrics
Net revenue from online gaming services was RMB62,806.5 million (US$98,555.7 million) in 2021 and RMB54,608.7 million in 2020. Net revenue from mobile games accounted for 70.4% of net revenue from online gaming services in 2021, compared to 71.9% in 2020.
Youdao's net income for 2021 was RMB5,354.4 million (US$840.2 million) and RMB3,167.5 million in 2020.
Cloud Music's net revenue was RMB6,997.6 million (US$1,098.1 million) in 2021 and RMB4,895.7 million in 2020.
Net income from innovation and other businesses was RMB12,447 million (US$1,953.3 million) in 2021 and RMB10,995 million in 2020.
The year-over-year increase in gross profit from online gaming services was primarily driven by revenue contributions from newly launched games such as The Oracle, Forever Forever, Harry Potter: Magical Awakening, and revenue increases from certain existing games such as the Journey to the West series and Light Encounter.
The year-on-year increase in Youdao gross profit was mainly due to the increase in its gross profit from learning services.
The year-over-year increase in cloud music gross profit was mainly due to the increase in net income and improved cost control.
The slight year-on-year decline in gross profit from innovation and other businesses was primarily due to a decline in gross profit from the advertising business.
Operational highlights for the fourth quarter of 2021 and early 2022:
Popular new games are strong and loved by players:
The number of online users of Forever Ends has reached a new high, and it was named to steam's 2021 Best Games list as the "Best Selling Game". Its Bruce Lee linkage content is widely praised by players around the world.
Harry Potter: Magical Awakening continues to launch blockbuster content updates and has repeatedly been at the top of China's iOS download and best-seller lists.
"Absolute Deduction" reached the top of the China iOS download list after its launch in December 2021.
During the quarter, flagship game products such as the Fantasy Journey to the West and Journey to the West series performed well.
Continue to enrich the product line of game development, and will soon launch: "Forever Destroyer" console and mobile game versions, "Diablo: Immortal" and "Ghost of a Woman", etc., and will launch "Harry Potter: Magical Awakening" and "Dead by Daylight Mobile - NetEase" in overseas markets.
Youdao steadily advanced the development of its learning services and smart hardware businesses, achieving positive operating cash flow from continuing operations during the quarter.
Ding Lei's words
"2021 is a fruitful year, NetEase has launched a number of high-profile new products, and various businesses have developed steadily. NetEase ended with an overall net income of RMB24.4 billion in the fourth quarter, an increase of 23.3% year-on-year. ”
Mr. Ding Lei, CEO and Director of NetEase, said, "NetEase's flagship games continue to be robust, and we have successfully launched a series of new games such as Forever Doom and Harry Potter: Magical Awakening. These new game products not only further enrich our product matrix, but also show NetEase's strength in developing world-class game works. Looking ahead to 2022, we look forward to bringing exciting new games to more players and consolidating the path of steady development." ”
"We have successfully completed the launch of cloud music and will continue to improve the product structure and content of music to enrich the user experience." In 2022, we plan to further polish our core businesses and launch more high-quality products and content to help our businesses thrive. Ding Lei concluded.