On February 29, NetEase announced its financial results for the fourth quarter and the full year of 2023, marking a year of significant R&D investment totaling 16.5 billion CNY, leading the industry with a 16% R&D intensity.
The financial report reveals that NetEase's total revenue for 2023 reached 103.5 billion CNY; under non-GAAP, the net profit attributable to the company's shareholders from continuing operations was 32.6 billion CNY.
For Q4, NetEase reported revenue of 27.1 billion CNY; under non-GAAP, the net profit attributable to the company's shareholders from continuing operations was 7.4 billion CNY.
Throughout 2023, NetEase progressively increased its R&D efforts, peaking at a record 16.5 billion CNY for the year. In-house technologies, including AI large models, have been fully integrated and empowered core businesses.
In terms of specific business sectors, NetEase Games achieved milestone breakthroughs, with annual revenue reaching 81.6 billion CNY and Q4 revenue at 20.9 billion CNY;
NetEase Cloud Music enhanced its membership monetization, achieving an annual revenue of 7.9 billion CNY and turning a profit for the first time; Q4 revenue was 2 billion CNY, with a gross margin increase to 30.3%;
NetEase Youdao launched the "Zi Yue" Education Large Model 2.0, surpassing expectations in education and advertising, leading to an annual revenue of 5.4 billion CNY and Q4 revenue of 1.5 billion CNY;
Innovation and other businesses saw an annual revenue of 8.6 billion CNY, with Q4 revenue at 2.8 billion CNY. The gross margin for the quarter increased year-on-year and quarter-on-quarter to 34.4%;
NetEase Yanxuan solidified its position in the pet and household cleaning sectors, with Pro membership income increasing by 57% year-on-year; NetEase Media enhanced its differentiated content creation, launching the NetEase Culture & Tourism brand;
NetEase News remained the leader in average daily usage time among news apps, with a 64% year-on-year increase in premium UGC content.
