Main financial results in the fourth quarter of 2020:
Net income was 19.8 billion yuan (US $3 billion), up 25.6% year on year.
Net revenue from online game services was 13.4 billion yuan (US $2.1 billion), up 15.5% year on year.
Youdao’s net income was 1.1 billion yuan (US $169.6 million), up 169.7% year on year.
Net income from innovation and other businesses was 5.3 billion yuan (US $805.3 million), up 41.3% year on year.
Gross profit was 9.9 billion yuan (US $1.5 billion), an increase of 20.9% year on year.
Operating expenses totaled 6.9 billion yuan (US $1.1 billion), up 32.1% year on year.
Key points of operation in the fourth quarter of 2020 and the beginning of 2021:
Launched a series of new games in the Chinese market, continue to expand the user scale and enrich the game product line.
Since its launch in January 2021, Tianyu mobile game has attracted much attention and quickly reached the top of China’s IOS download list.
Other new products include: picturesque traveler in time and space, above the Kuroshio, fantasy book apocalypse and game king: Duel link.
A number of mobile game products continue to maintain high popularity. In the past few months, games such as “dream journey to the west” and “big talk journey to the west” mobile game, “the land of the land” and “after tomorrow” have all ranked among the best sellers of IOS in China.
The international influence of Netease Games has further deepened, and in the fourth quarter, wilderness action has repeatedly topped the best-selling list of IOS in Japan.
The upcoming new products include: forget the romance of Sichuan, endless Lagrange, Harry Potter: the magic awakening, the Lord of the rings: rise to war, super fight dream, the secret world of the beautiful girl, Diablo: immortality and the adventure of pockmann.
Youdao learning services and learning products business continued to maintain a strong growth momentum. In the fourth quarter, their net income increased by 198.8 and 253.8 year-on-year respectively, and the net cash inflow from operating activities was about 129.0 million yuan (19.8 million US dollars).
Ding Lei, chief executive officer and director of Netease, said: “in the fourth quarter, our main businesses maintained a steady development, with an overall net income of 19.8 billion yuan, up 25.6% year on year. Since 20 years ago, our game business has performed well, and our diversified product line has been widely supported and welcomed. At the beginning of the new year, we launched the Tianyu mobile game, which has brought a good start to the first quarter of 2021. We are also looking forward to launching a number of new products this year to pave the way for steady growth in 2021. “
“2020 is a challenging year for many companies around the world. In this year, we have successfully overcome the difficulties and achieved the comprehensive development of online games, online education, music and e-commerce. This shows that our business model of content innovation and user experience first is effective. We will continue to bring innovative experience to users, adhere to the diversification strategy and deepen the international layout to promote revenue growth, provide high-quality products and services in line with the tone of Netease brand, and create greater value for our users and shareholders. “