(Yicai Global) Feb. 24 -- Shares NetEase, one of China's largest online gaming companies, sank in Hong Kong trading after the company reported a 30 percent drop in fourth-quarter profit.

NetEase [HKG: 9999] ended 11.2 percent lower at HKD123.50 (USD15.74) a share today. In pre-market trading in New York, the firm’s shares [NASDAQ: NTES] were 4.8 percent lower at USD82.89 each as of 5.34 a.m. local time, after sliding 3.7 percent yesterday.

Net profit came in at CNY4 billion (USD573 million) in the three months ended Dec. 31, compared with CNY5.7 billion a year earlier, mainly because of slow growth in gaming revenue, the Hangzhou-based firm's earning report showed late yesterday. Revenue jumped 4 percent to CNY25.4 billion (USD3.7 billion).

Income from gaming and value-added services rose only 1.6 percent to CNY19.1 billion in the quarter, mainly as NetEase was not awarded any game licenses for a year after China introduced strict anti-addiction measures for minors in the second half of 2021.

NetEase began to regain ground in the gaming market last September, when game licensing approvals resumed. The firm said it would continue to enrich its gaming library this year with upcoming titles, including Justice, Naraka: Bladepoint, Badlanders, Racing Master, and Naraka: Bladepoint, as well as Harry Potter: Magic Awakened for international markets.

Revenue from NetEase Cloud Music, China's second-largest music streaming platform, jumped 26 percent to CNY2.4 billion, with online education platform Youdao bringing in CNY1.5 billion, up 9 percent from 2021. Revenue from innovative businesses rose 3.4 percent to CNY2.4 billion.

Full-year net profit grew 21 percent to CNY20.3 billion in 2022 on a 10 percent gain in revenue to CNY96.5 billion. The NetEase did not provide any guidance for this year.

Editor: Martin Kadiev