NetEase beats Activision Blizzard, The lithium price drops, Hotpot chain Haidilao’s comeback

Gaming giant NetEase reported 2022 revenue of 96.49 billion yuan ($13.99 billion), a year-on-year increase of 10.15%, and net profit of 20.33 billion ($2.94 billion), an increase of 15.43%. Games and related services accounted for 77.27% of total 2022 revenue of the Nasdaq-listed NetEase. From April 2022 when monthly game approvals recommenced in China, NetEase has had five games approved. NetEase delivered much better results than its erstwhile U.S. partner Activision Blizzard, which reported 2022 net income of $1.51 billion, a decline of 43.94%.

The price of lithium carbonate has fallen below the 400,000 yuan ($57,500) per ton mark, a drop of 21.6% from the beginning of the year when the price topped 510,000 yuan ($73,300). The price of battery-grade lithium carbonate rose from 47,000 yuan ($6,755) per ton in 2020 to above 600,000 yuan ($86,241) in November 2022. Over this period, electric vehicle (EV) and battery industry profits were concentrated in upstream lithium mining. The price of lithium carbonate is expected to decrease gradually to the level of about 200,000 yuan ($28,747) in 2024 as lithium supply exceeds demand and as alternative materials (notably sodium-ion batteries) become more widely used.

Hotpot restaurant chain Hǎidǐlāo 海底捞 pulled in 34.6 billion yuan ($4.97 billion) in revenue last year, and made a net profit of 1.3 billion yuan ($186.85 million), according to its forecast. A return to profitability marks a remarkable turnaround for Haidilao, which reported net losses of 4.16 billion yuan ($598.08 million) in 2021 and 267 million yuan ($38.2 million) in the first half of 2022. The company attributed the turnaround to its “woodpecker plan,” launched in November 2021, by which it closed hundreds of under-performing stores.