37 Interactive Entertainment 2016 Annual Report

Key insights

6 takeaways

01
Net profit attributable to shareholders of the listed company rose 111.49% year on year to RMB 1,070,162,324.07, while operating revenue grew 12.69%.See it on page 6
02
Mobile game revenue reached RMB 1,639,185,366.69, up 218.86%, while web game revenue fell 19.66% to RMB 2,948,803,661.57.See it on page 14
03
The company reported that its self-developed mobile game 永恒纪元 achieved global single-month gross billings above RMB 315 million in the reporting period.See it on page 11
04
Online game business accounted for RMB 4,622,288,449.71, or 88.08% of operating revenue, with a gross margin of 67.50%.See it on page 14
05
Overseas revenue rose 110.12% to RMB 747,358,598.77, against RMB 4,500,535,129.96 domestically.See it on page 14
06
Research and development expenditure was RMB 317,670,122.59, equal to 6.05% of operating revenue.See it on page 19

Summary

The document is the 2016 annual report of 芜湖顺荣三七互娱网络科技股份有限公司 (37 Interactive Entertainment, listed on the Shenzhen Stock Exchange under code 002555), covering the reporting period 1 January to 31 December 2016 and presenting audited consolidated financial statements prepared under Chinese accounting standards by Tianjian Certified Public Accountants, which issued a standard unqualified opinion. The company operates interactive entertainment, centred on mobile and web game development, publishing and operation, alongside an automotive plastic fuel tank business.

The company reported 2016 operating revenue of RMB 5,247,893,728.73, up 12.69% from RMB 4,656,787,281.09 in 2015. Net profit attributable to shareholders of the listed company was RMB 1,070,162,324.07, up 111.49% from RMB 506,016,504.78. Revenue from the online game segment was RMB 4,622,288,449.71 (88.08% of total), while automotive parts revenue was RMB 625,605,279.02 (11.92%). Within games, mobile game revenue was RMB 1,639,185,366.69, up 218.86%, and web game revenue was RMB 2,948,803,661.57, down 19.66%.

The company stated that its self-developed mobile game 永恒纪元 recorded global single-month gross billings exceeding RMB 315 million during the reporting period. R&D expenditure was RMB 317,670,122.59, or 6.05% of revenue. The board proposed a cash dividend of RMB 1.00 per 10 shares, based on 2,084,794,788 shares.