37 Interactive Entertainment 2019 Annual Report

Key insights

6 takeaways

01
The company's operating revenue for 2019 was 13.23 billion yuan, a 73.30% increase from 7.63 billion yuan in 2018.See it on page 7
02
Net profit attributable to shareholders of the listed company reached 2.11 billion yuan, an increase of 109.69% compared to 2018.See it on page 7
03
Mobile game revenue accounted for 11.99 billion yuan of the total revenue, marking a 114.78% increase over the previous year.See it on page 15
04
The company's actual controller changed from the Wu family (Wu Xushun, Wu Weidong, Wu Weihong) to Li Weiwei during the reporting period.See it on page 6
05
Research and development expenses for 2019 totaled 820.39 million yuan, an increase of 52.57% compared to 537.71 million yuan in 2018.See it on page 18
06
The company proposed a cash dividend of 3 yuan (including tax) for every 10 shares, totaling approximately 633.68 million yuan.See it on page 31

Summary

The 2019 Annual Report for 37 Interactive Entertainment covers the company's financial and operational performance for the fiscal year ending December 31, 2019. The company focuses on the research, development, and operation of mobile and web games, while also investing in sectors such as 5G cloud gaming, film, animation, and internet education. During this period, the company underwent a change in its actual controller from the Wu family to Li Weiwei.

For the 2019 fiscal year, the company reported operating revenue of 13.23 billion yuan, a 73.30% increase compared to 7.63 billion yuan in 2018. Net profit attributable to shareholders of the listed company was 2.11 billion yuan, representing a 109.69% increase over the previous year's 1.01 billion yuan. The company attributed this growth primarily to a significant increase in mobile game business gross billings. Net profit after deducting non-recurring gains and losses reached 2.09 billion yuan, up 339.90% from 474.91 million yuan in 2018.

Operating costs for the network game industry were 1.78 billion yuan. The company's mobile game business generated 11.99 billion yuan in revenue, while web game business revenue was 1.23 billion yuan. As of the end of 2019, the company held 2.15 billion yuan in monetary funds. The board proposed a profit distribution plan to pay a cash dividend of 3 yuan (including tax) for every 10 shares to all shareholders, based on a total share capital of 2.11 billion shares.