2022-04-25 14:37Financial Performance - Total net revenue for 2021 reached RMB 19,383.684 million, a 61.5% increase from RMB 11,998.976 million in 2020[7] - Gross profit for 2021 was RMB 4,043.147 million, representing a 42.3% increase from RMB 2,840.176 million in 2020[7] - Net loss attributable to shareholders for 2021 was RMB 6,789.228 million, compared to RMB 3,011.704 million in 2020, indicating a 125.5% increase in losses[7] - The company reported a pre-tax loss of RMB 6,713.450 million for 2021, compared to RMB 3,000.648 million in 2020, indicating a 123.4% increase in pre-tax losses[7] - The company reported a net loss of RMB 6,808,739 for the year 2021, compared to RMB 3,054,017 in 2020, indicating a significant increase in losses[63] - The company reported a total comprehensive loss for 2021 reached RMB 7,229,730, compared to RMB 3,379,117 in 2020, indicating a significant increase in losses[55] Assets and Liabilities - Total current assets as of December 31, 2021, amounted to RMB 36,446.856 million, up from RMB 15,739.547 million in 2020, reflecting a growth of 131.1%[8] - Total assets increased to RMB 52,053.151 million in 2021 from RMB 23,865.608 million in 2020, marking a growth of 118.5%[8] - Total liabilities rose to RMB 30,337.085 million in 2021, compared to RMB 16,083.404 million in 2020, an increase of 88.6%[8] - Total equity attributable to shareholders reached RMB 21,716.066 million in 2021, up from RMB 7,782.204 million in 2020, a growth of 178.1%[8] - Cash and cash equivalents increased from RMB 4.68 billion in 2020 to RMB 7.52 billion in 2021, a growth of 60.0%[21] - Short-term investments surged from RMB 3.36 billion in 2020 to RMB 15.06 billion in 2021, marking a 347.5% increase[21] Revenue Streams - Revenue from in-game virtual items for the year ended December 31, 2021, was RMB 5,090.9 million[15] - Revenue from value-added services surged to RMB 6,934.9 million in 2021, up from RMB 3,845.7 million in 2020, marking an increase of about 80.5%[125] - Advertising revenue increased to RMB 4,523.4 million in 2021, compared to RMB 1,842.8 million in 2020, reflecting a growth of approximately 145.5%[125] - E-commerce and other revenue rose to RMB 2,834.5 million in 2021, up from RMB 1,507.2 million in 2020, indicating an increase of around 88.0%[125] Operating Expenses - Operating expenses rose to RMB 10.47 billion in 2021, up 75.5% from RMB 5.98 billion in 2020[53] - Total operating costs rose to RMB 76,232 in 2021, up from RMB 37,087 in 2020, representing a 105% increase[55] - Research and development expenses surged to RMB 316,607 in 2021, up from RMB 126,250 in 2020, reflecting a 150% increase[55] - Sales and marketing expenses increased to RMB 53,452 in 2021, compared to RMB 40,808 in 2020, marking a 31% rise[55] Cash Flow and Financing - Operating cash flow for 2021 was negative at RMB (2,647,008), a decline from positive RMB 753,103 in 2020[63] - The company raised approximately HKD 22.9 billion (RMB 19.3 billion) from its global offering in March 2021, following its listing on the Hong Kong Stock Exchange[67] - The net cash provided by financing activities in 2021 was RMB 30,389,152 million, compared to RMB 5,078,842 million in 2020[64] - The company recorded net cash used in investing activities of RMB 2,906.6 million for the year ended December 31, 2021[81] Shareholder Information - Basic and diluted net loss per share for 2021 was RMB (17.87), worsening from RMB (8.71) in 2020[55] - The weighted average number of ordinary shares (basic) increased to 379,898,121 in 2021 from 345,816,023 in 2020[55] - The company reported a net loss attributable to shareholders of RMB (6,789.2 million) for the year ended December 31, 2021[197] Taxation and Compliance - The effective corporate income tax rate for the group was 1.42% for the year ended December 31, 2021, compared to 1.78% in 2020 and 2.83% in 2019, primarily due to tax incentives[162] - The group has accumulated net operating tax losses of RMB 9,785,503 thousand, with RMB 286,268 thousand expiring in 2025 and RMB 9,155,679 thousand expiring in 2026 and beyond[163] - The group is subject to a 6% sales tax on services and a value-added tax (VAT) ranging from 0% to 16% on goods sold, with an additional cultural business construction fee of 1.5% applicable until December 31, 2024[164] Employee Compensation - Employee benefits expenses for the year ended December 31, 2021, totaled RMB 761.3 million, a substantial increase from RMB 235.9 million in 2020, reflecting a growth of approximately 222.5%[184] - The total medical and pension plan contribution expenses for the year ended December 31, 2021, were RMB 695.3 million, significantly higher than RMB 195.7 million in 2020, indicating increased investment in employee welfare[184] Investment and Acquisitions - The company issued USD 1,600 million 2026 December notes in November 2021 with a coupon rate of 0.50%, netting RMB 10.16 billion after deducting issuance costs[176] - The company has a purchase obligation for the acquisition of broadcasting rights for the League of Legends World Championship, totaling RMB 800 million (USD 125.5 million), with RMB 315 million (USD 49.4 million) remaining unpaid as of December 31, 2021[198]