Netease's fourth quarter revenue was 12.1 billion yuan, net online game income accounted for 74%

Financial report data shows that Netease's net income for the fourth quarter of 2016 was 12.099 billion yuan (US$1.743 billion), a year-on-year increase of 53.1%; net profit was 3.683 billion yuan (US$530 million), a year-on-year increase of 70.2%.

Original title: Netease announced its 2016 full-year financial report, net online game revenue of approximately 28 billion yuan

. On February 16, Netease announced its unaudited financial results for the fourth quarter ended December 31, 2016 and the 2016 financial year.

The report shows that Netease's net income for the fourth quarter of 2016 was 12.099 billion yuan (US$1.743 billion), a year-on-year increase of 53.1%; net profit was 3.683 billion yuan (US$530 million), a year-on-year increase of 70.2%. In 2016, net income was 38.179 billion yuan (US$5.499 billion), a year-on-year increase of 67.4%; net profit was 11.605 billion yuan (US$1.671 billion), a year-on-year increase of 72.3%; net income from online games in 2016 was 27.980 billion yuan (US$4.030 billion), a year-on-year increase of 61.6%.

Net income from online game services in the fourth quarter of 2016 was 8.959 billion yuan (US$1.290 billion), a year-on-year increase of 62.8% and a month-on-month increase of 36.4%. The previous quarter and the same period last year were 6.568 billion yuan and 5.503 billion yuan respectively.

The financial report shows that Netease's gross profit in 2016 was 21.664 billion yuan (US$3.120 billion), and in 2015 it was 13.404 billion yuan; gross profit in the fourth quarter of 2016 was 6.463 billion yuan (US$931 million), compared with 5.334 billion yuan and 4.220 billion yuan respectively in the previous quarter and the same period last year.

One of the main reasons for the increase in gross profit of online games is the revenue contribution from self-developed mobile games, including mobile games such as "Journey to the West","Dream Journey to the West","Yin Yang Master" and "Ghost Story", as well as the agents of Blizzard Entertainment."Overwatch" and "World of Warcraft".

Ding Lei, CEO and director of Netease, said that in 2016, Netease launched more than 40 new mobile games. In the fourth quarter, the launched self-developed mobile games "Yin Yang Shi","World" mobile games and "The Road to the Great Navigation", as well as the new agent ARPG "HIT: Everything I Protect", all performed well.

Among them,"Yin Yang Shi" won the top ten games of the year in Apple's China App Store. Netease launched "Yin Yang Shi" to Southeast Asian markets in December, and plans to launch it to Japan, Canada, Europe and the United States this year. Other mobile games such as "Journey to the West","Dream Journey to the West" and "Ghost Story" mobile versions have also maintained high popularity.

So far, Netease has launched more than 100 mobile game products, and plans to launch more mobile game versions and other self-developed new products and agency products in the future. New products to be released in the near future include ARPG "Journey to the West" and RPG "Treasure Hunter".

In terms of end-games in the fourth quarter, new expansion packs were released for "Martial Soul 2","Demon Suppression Song","World 3","Tang Dynasty Unparalleled Zero" and "New Ghost Story". The computer version of "Dream Westward Journey" and new expansion packs of "Revelation" have also been released recently, and a new expansion pack of "New Journey Journey 2" will be released in the next few months.

In terms of agency, as of the end of December,"Overwatch Pioneer" has sold more than 5 million copies in the mainland of China, setting a sales record for buyout games in the China market.

Currently, Netease is committed to introducing the end game and mobile version of "Minecraft" game.

Editor: Nancy