A few days ago the top 500 domestic companies list the net profit list, the first look up, the top are the bank's name: ICBC, China Construction Bank, Shanghai Pudong Development, Everbright, as well as Huishang Bank, Bank of Nanjing and so on. In the top 22 companies, banks accounted for 19, which is simply the show of wealth of domestic banks list, "money monster" deserved. However, surrounded by many banks, I saw the name of an Internet company with a net profit margin of 48.32%, ranking fourth in the list.
What is the concept of net profit margin? Net profit as a percentage of main business income. In other words, this business's main business income, nearly half of the net profit, the surprisingly high rate of profitability is very strong. Say no feeling, take the country's most profitable communications operator - China Mobile, its 2013 net profit margin of less than 20%.
The Internet company's name is Netease. Perhaps many people will be surprised, this domestic veteran Internet companies actually make money! If replaced by the limelight in recent years, BAT (Baidu, Alibaba, Tencent) in any one, we will calm down a lot. However, the fact is true, although from the operating income, the absolute value of net profit comparison, NetEase volume is smaller than BAT several levels, but it will make money.
How to practice the most profitable domestic Internet company? Answer two words: game. The reporter consulted Netease financial data in recent years, game business revenue in Netease's revenue constitutes a very important position, the contribution rate of net profit at about 89%. Taking 2013, the total revenue was 9.77 billion yuan, of which game revenue was 8.309 billion yuan.
Almost every year, investors ask Ding Lei, "Your game has been 5 years," "Your game has been 10 years, you can not continue?" Ding Lei's answer is that the sustainable development of the game can be done. In addition to the PC-side games, NetEase is still in the mobile game layout, which they regarded as the next "gold mine."
Netease deep love for the game business, unique in the domestic Internet companies, this is their way to success. However, compared to other major Internet companies, Netease is a bit conservative. BAT these three Internet giants goes without saying that in the past two years through a series of acquisitions to seize the heights of the era of mobile Internet and improve the industrial chain layout, WeChat is considered to be Tencent mobile Internet era to get the "ticket." The other two veteran Internet companies, Sina microblogging, Sohu video and Sogou, and Netease in addition to the game what? Breaking the fingers number one, Netease news client, cloud music, cloud reading, Netease open class, youdao dictionary, Dao Yun notes ... ... really a lot, but always feel that these products have a bad breath, not enough Detonated a market, creating a new situation, in other words, Netease lack of a killer application.
In this case, Yi Xin has become Netease's most important pawn in the layout of the mobile Internet. Last year, Ding Lei played a zero score for the performance of Yi Shun, so that the industry side, is he lost confidence in the letter? This is actually not the case, which shows exactly what is the responsibility of love. Ding also said at the time "You do not want to be under pressure, and I'm under a lot of pressure than you." Obviously, he attached great importance to Yi Xin.
This year, Yi Xin team moved to the nearest office from Ding Lei Hangzhou area, the basic daily to accept his "inspection." A few days ago, Yi Xin announced the total number of users has more than 100000000, monthly active users accounted for about 30%. In the mobile IM market, grab hundreds of millions of users in a short time can be considered "miracles." Ding Lei also said in-house, the next 3-5 years will be "regardless of price and commitment to do easy to believe."
Regardless of the price to do one thing, it seems the first time I heard Ding Lei release such a ruthless. For Netease, the game is now, Yi letter represents the future.