37 Interactive Entertainment 2022 Annual Report

Key insights

6 takeaways

01
Mobile games generated most of 2022 revenue, at 15,631,909,881.38 yuan, or 95.28% of operating revenue.See it on page 19
02
Overseas revenue rose 25.47% to 5,993,982,285.91 yuan in 2022.See it on page 15
03
Net profit attributable to shareholders was 2,954,376,856.53 yuan, up 2.74% year on year.See it on page 13
04
Web game revenue fell 27.76% to 599,189,194.88 yuan, which the company attributes to users shifting to mobile and fewer web game products.See it on page 17
05
R&D expense decreased 27.64% to 904,696,560.53 yuan in 2022.See it on page 23
06
The 2022 profit distribution proposal is 4.50 yuan cash (tax included) per 10 shares, with no bonus shares.See it on page 3

Summary

This is the 2022 annual report of 37 Interactive Entertainment Network Technology Group Co., Ltd. (Shenzhen Stock Exchange code 002555), a Chinese online game research, publishing and operations company, covering the period 1 January to 31 December 2022. The report sets out the company's business, industry environment, financial statements, governance, related-party transactions and shareholder information. It states that the audit was performed by Huaxing Certified Public Accountants and gives an unmodified opinion.

Financially, the report gives 2022 operating revenue of 16,406,034,152.65 yuan, up 1.17% year on year, and net profit attributable to shareholders of 2,954,376,856.53 yuan, up 2.74%. Mobile game revenue was 15,631,909,881.38 yuan, or 95.28% of operating revenue, and overseas revenue was 5,993,982,285.91 yuan, up 25.47%. R&D expense fell 27.64% to 904,696,560.53 yuan, which the company attributes to adjusting its development categories.

The company also proposed a 2022 profit distribution of 4.50 yuan cash per 10 shares, subject to shareholder approval. The company states that the 2020-2022 performance commitment for Guangzhou 37 Network Technology was met, with cumulative net profit (after deducting non-recurring gains and losses, excluding statutory subsidies and tax reductions) of 4,534,949,600.00 yuan (453,494.96 ten thousand yuan) against a commitment of 4,296,000,000.00 yuan (429,600.00 ten thousand yuan).