Although NetEase's earnings report showed good results, interest rates on 10-year US Treasury bonds rose rapidly, leading to a decline in risk appetite in the overall market, and most stocks were affected.
After NetEase released its pre-market earnings report yesterday, the stock price fell by more than 7%, and also fell 3.37% after the market.
However, in terms of the company's overall financial report, according to NetEase's 2021 layout, considering that it has been ranked second in China's game industry all year round and has laid out innovative businesses such as online education and cloud music in recent years, investors should try to ignore short-term fluctuations and look at the company's long-term development.
1. Steady growth in performance and continuous feedback to shareholders
NetEase's net revenue for the quarter was 19.8 billion yuan, up 25.6% year on year. Among them, game revenue was 13.4 billion yuan, up 15.5% year on year, online education brand Youdao's net revenue was 1.1 billion yuan, up 169.7% year on year, and net revenue from innovation and other businesses was 5.3 billion yuan, up 41.3% year on year;
Gross profit remained stable, reaching 9.9 billion yuan, up 20.9% year on year; final net profit was 976 million yuan. Moreover, the company continues to implement measures to give back to shareholders, and the board of directors approved a new $2 billion repurchase plan, which began on March 2 this year.
In 2020, due to the global pandemic, games and other online businesses developed rapidly. NetEase's layout here has been proven through this year's performance growth. As the space for the future game market continues to grow, the further development of online education and cloud music is focusing on building...