37 Interactive Entertainment 2025 Annual Report

Key insights

6 takeaways

01
37 Interactive Entertainment reported a 2025 net profit of RMB 2.90 billion, an 8.50% increase, despite an 8.46% decline in total operating revenue to RMB 15.97 billion.See it on page 8
02
Overseas markets generated 33.7% of total revenue, with flagship titles 'Puzzles & Survival' and 'Trading Legend' serving as the primary drivers of international performance.See it on page 10
03
The company increased R&D investment by 6.07% in 2025, focusing on the integration of the proprietary 'Xiao Qi' large model to automate art generation and administrative workflows.See it on page 28
04
Financial stability improved significantly, highlighted by an 18.02% increase in net cash flows from operating activities and total shareholders' equity reaching RMB 13.67 billion.See it on page 91
05
Following administrative penalties and public censures from the CSRC and Shenzhen Stock Exchange, the company abolished its Supervisory Committee and implemented a new market value management system.See it on page 52
06
The firm is prioritizing a 'Games+' model and AI-driven innovation to maintain its competitive position within the global strategy game segment.See it on page 20

Summary

In 2025, 37 Interactive Entertainment navigated a complex fiscal landscape characterized by a strategic pivot toward operational efficiency and technological integration. While the company reported an 8.46% year-over-year decline in total operating revenue to RMB 15.97 billion, it successfully improved its bottom line, with net profit attributable to shareholders rising 8.50% to RMB 2.90 billion. This performance was underpinned by a core strategy of boutiqueization, diversification, and globalization, supported by a 6.07% increase in research and development investment. The company’s financial health remained robust, evidenced by a 18.02% increase in net cash flows from operating activities and total shareholders' equity reaching RMB 13.67 billion.

The company’s global footprint remains a critical pillar of its business model, with overseas revenue accounting for 33.7% of the total. Flagship titles such as Puzzles & Survival and Trading Legend continue to anchor this international presence, while the integration of the proprietary Xiao Qi large model has streamlined R&D, art generation, and administrative workflows. By leveraging AI-driven innovation and a "Games+" model, the firm seeks to maintain competitiveness in the global market, particularly within the strategy game segment, which remains a high-performing category for Chinese self-developed titles.

Corporate governance and regulatory compliance emerged as significant themes during the 2025 reporting period. While the company maintained an unqualified audit opinion and reported no material weaknesses in internal controls, it faced administrative penalties and public censures from the China Securities Regulatory Commission and the Shenzhen Stock Exchange involving key executives. In response, the firm has overhauled its governance structure, including the abolition of its Supervisory Committee and the implementation of a formal market value management system. Moving forward, the company remains focused on talent retention and sustainable growth, balancing its aggressive pursuit of AI-led technological advancement with the demands of evolving industry regulations and investor expectations.