37 Interactive Entertainment 2014 Annual Report

Key insights

6 takeaways

01
Consolidated operating revenue for 2014 was 598,225,373.36 yuan, up 132.67% from 257,115,892.90 yuan in 2013.See it on page 8
02
Net profit attributable to shareholders rose 938.08% to 38,213,446.64 yuan, which the company attributes partly to the consolidation of 37 Interactive Entertainment's December 2014 financial data.See it on page 10
03
The online game segment generated 276,285,669.11 yuan of revenue with a gross margin of 68.76%, against 318,736,286.76 yuan of auto parts revenue at a 19.90% margin.See it on page 15
04
Domestic web game platforms had 380 million cumulative registered users as of 31 December 2014, and the company reported over 450,000 paying users in December 2014.See it on page 17
05
The company proposed a cash dividend of 1.00 yuan per 10 shares (tax included), totalling 32,485,486.80 yuan, plus a capitalisation of 17 shares per 10 shares.See it on page 27
06
Goodwill of 1,580,240,699.75 yuan arose from the acquisition of 60% of 37 Interactive Entertainment (Shanghai), accounting for 46.27% of total assets at year end.See it on page 16

Summary

This is the 2014 annual report of Wuhu Shunrong 37 Interactive Entertainment Network Technology Co., Ltd. (Shenzhen Stock Exchange code 002555), covering the period 1 January to 31 December 2014. The company was formerly an automotive plastic fuel tank maker, and after a major asset restructuring completed in December 2014 it consolidated 37 Interactive Entertainment (Shanghai), which it describes as a dual-core business of auto parts and online game operation. Reported figures are consolidated: operating revenue was 598,225,373.36 yuan, up 132.67% year on year, and net profit attributable to shareholders was 38,213,446.64 yuan, up 938.08%. Revenue from the online game segment was 276,285,669.11 yuan, while auto parts revenue was 318,736,286.76 yuan. The company reports the 37 Interactive Entertainment business had 2014 December consolidated data included, and that the game business's revenue will become a main source of income. The company also states that domestic web game platforms 37.com and 6711.com had 380 million cumulative registered users at year end, and the company reports 1,735 employees. The board proposed a cash dividend of 1.00 yuan per 10 shares together with a capitalisation of 17 shares per 10 shares.