37 Interactive Entertainment 2017 Annual Report

Key insights

7 takeaways

01
Mobile game revenue reached 3,283,622,990.10 yuan in 2017, up 100.32%, and now accounts for 53.06% of operating revenue, while web game revenue declined 22.04%.See it on page 17
02
Net profit attributable to shareholders rose 51.43% to 1,620,582,427.47 yuan, while net profit excluding non-recurring items grew 3.71% to 1,048,251,240.84 yuan.See it on page 9
03
The company recorded 401,364,984.06 yuan of performance compensation from the former shareholders of Shanghai Moxun as non-recurring income, which it attributes to that subsidiary missing its profit commitment.See it on page 10
04
The company's domestic mobile game publishing market share reached 5.2% in 2017, behind only Tencent and NetEase, according to a cited iiMedia Research report.See it on page 13
05
Operating cash flow net amount increased 74.14% to 1,831,895,928.30 yuan, which the company attributes to higher operating revenue.See it on page 23
06
Research and development investment was 439,094,559.01 yuan in 2017, equal to 7.09% of operating revenue, up 38.22% from the prior year.See it on page 22
07
The board proposed a cash dividend of 1.00 yuan per 10 shares (tax included), totaling 214,811,084.40 yuan, based on 2,148,110,844 shares.See it on page 2

Summary

The document is the 2017 annual report of 37 Interactive Entertainment (芜湖顺荣三七互娱网络科技股份有限公司), a Shenzhen Stock Exchange-listed company (stock code 002555) that develops, publishes and operates mobile and web games and also manufactures automotive plastic fuel tanks. It covers the reporting period from 1 January to 31 December 2017, with audited consolidated financial statements from Guangdong Zhongzheng Zhujiang Certified Public Accountants issuing a standard unqualified opinion. Mobile game revenue rose to 3,283,622,990.10 yuan, a 100.32% increase, while web game revenue fell 22.04% to 2,298,860,026.39 yuan. Total operating revenue was 6,188,828,116.75 yuan, up 17.93%, and net profit attributable to shareholders was 1,620,582,427.47 yuan, up 51.43%. Earnings include 401,364,984.06 yuan of performance compensation from the acquired Shanghai Moxun subsidiary, which the company classified as non-recurring. Excluding non-recurring items, net profit attributable to shareholders was 1,048,251,240.84 yuan, up 3.71%.