[年报]三七互娱(002555):2024年年度报告摘要（英文版）
原标题:三七互娱:2024年年度报告摘要（英文版） 37 Interactive Entertainment Network Technology Group Co., Ltd. 2024 Annual Report (Summary) April 2025 Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of 37 Interactive Entertainment Network Technology Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the truthfulness, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. Xu Zhigao, the Company’s legal representative, and Ye Wei, the Company’s Chief Financial Officer & Board Secretary, hereby guarantee that the financial statements carried in this Report are truthful, accurate and complete. All the Company’s directors have attended the Board meeting for the review of this Report. Huaxing Certified Public Accountants LLP has issued an unqualified audit report with an emphasis of matter paragraph for the Company, for which the Company's Board of Directors and Supervisory Committee have provided detailed statements. And investors are advised to pay attention to the said contents. Any plans and other forward-looking statements in this Report shall not be deemed as promises to investors. Investors and other stakeholders shall be fully aware of the risk and understand the difference between plans, forecasts and promises. Most of these forward-looking contents can be found in “XI Prospects” of “Part III Management Discussion and Analysis” herein. The Company is subject to the disclosure requirements for listed companies engaged in software and IT services. The Board has approved a final dividend plan as follows: based on the total issued share capital (exclusive of shares in the Company’s account for repurchased shares) on the date of record, a cash dividend of RMB 3.70 (tax inclusive) per 10 shares is planned to be distributed to all the shareholders of the Company, with no bonus issue from either profit or capital reserves. Table of Contents Part I Important Notes, Table of Contents and Definitions ........................................................................................... 2 Part II Corporate Information and Key Financial Information ....................................................................................... 4 Part III Management Discussion and Analysis .............................................................................................................. 8 Part IV Corporate Governance ................................................................................................................................... 36 Part V Environmental and Social Responsibility ......................................................................................................... 55 Part VI Share Changes and Shareholder Information ................................................................................................. 58 Part VII Financial Statements .....................................................................................................................................65 Part II Corporate Information and Key Financial Information I Corporate Information
The independent auditor hired by the Company:
? Applicable □ Not applicable
□ Applicable ? Not applicable VI Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below. □ Yes ? No
deducting non-recurring profits and losses was negative for the last three accounting years, and the latest independent auditor’s report indicated that there was uncertainty about the Company’s ability to continue as a going concern. □ Yes ? No Indicate by tick mark whether the lower of the net profit attributable to the Listed Company’s shareholders before and after deducting non-recurring profits and losses was negative. □ Yes ? No VII Key Financial Information by Quarter Unit: RMB
what have been disclosed in the Company’s quarterly or interim reports. □ Yes ? No VIII Non-recurring Profits and Losses ? Applicable □ Not applicable Unit: RMB
Part III Management Discussion and Analysis I Industry Overview for the Reporting Period The Company is subject to the disclosure requirements for listed companies engaged in software and IT services as stated in Guideline No. 3 of the Shenzhen Stock Exchange for Self-regulation of Listed Companies—Industry-specific Information Disclosure. 1. Steady growth in domestic and overseas markets; high-quality development of the gaming industry According to the 2024 China’s Game Industry Report released by the Game Publishing Committee of China Audio-video and Digital Publishing Association (CADPA), in 2024, the actual sales revenue of the domestic gaming market reached RMB325,783 million, representing a year-over-year (YoY) increase of 7.53% and setting a new record. The number of game users totaled 674 million, a YoY increase of 0.94%, also reaching a historical high. In 2024, the mini-game segment continued its explosive growth, with several outstanding products emerging. These games expanded into previously untapped user demographics within existing application scenarios. Their accessible entry points more precisely and effectively attracted target players, while fragmented gameplay and lightweight user experiences introduced more casual gaming modes. These features met users’ demand for light, fragmented entertainment and brought new growth potential to the gaming industry. In 2024, revenue from domestic applet games amounted to RMB39,836 million, a YoY growth of 99.18%, indicating that the sector remains in a rapid growth phase. In 2024, Chinese gaming companies proactively coped with a growth slowdown and increasingly fierce competition in the global gaming market. Revenue of self-developed Chinese games in overseas markets reached USD18,557 million, a YoY increase of 13.39%, surpassing RMB100 billion for the fifth consecutive year and setting another record high. The United States, Japan, and South Korea remained the primary overseas markets for Chinese mobile games, accounting for 31.06%, 17.32%, and 8.89% of total revenue, respectively. Among the top 100 self-developed mobile games in terms of overseas revenue, strategy games accounted for 41.38%, shooting games for 10.40%, and role-playing games for 10.37%. These three categories have remained the top three for five consecutive years. 2. Policy-guided healthy development driven by both culture and technology In 2024, policies continued to guide the gaming industry towards boutiqueization and high-quality, healthy development. In July 2024, the Third Plenary Session of the Twentieth Central Committee of the Communist Party of China approved the Decision of the Central Committee of the Communist Party of China on Further Deepening Reforms in a Comprehensive Way and Promoting Chinese-Style Modernization, which put forward further requirements for improving the systems and mechanisms for promoting high-quality economic development and deepening the reform of the cultural system. In August 2024, the State Council issued the Guideline on Boosting High-quality Development of Service Consumption (hereinafter referred to as the “Guideline”). The Guideline outlined several key tasks aimed at boosting the vitality of life-enhancing consumption, including cultural and entertainment consumption. Furthermore, the Guideline calls for more efforts to “improve the quality of online literature, online performances, online games, radio and television programs, and online audiovisual services” and “encourage the development of new business formats such as immersive experiences, script-based entertainment, digital art, and online performance live-streaming”. These initiatives are expected to further boost high-quality development in the industry. In March 2025, the General Office of the CPC Central Committee and the General Office of the State Council issued the Special Action Plan for Boosting Consumption, proposing to “strengthen consumption brand leadership. Focus on commerce, logistics, culture and tourism, and other service sectors, and formulate targeted policies to enhance service quality. Develop more Chinese service brands. Integrate outstanding traditional Chinese culture into product design, support the development of original domestic and international markets for fashionable domestic brands”. On one hand, Chinese game developers are committed to creating high-quality games, exploring innovative integrations of culture and gaming, and promoting the inheritance and development of outstanding traditional Chinese culture. On the other hand, emerging technologies represented by artificial intelligence have brought new opportunities to China’s gaming industry. In response to national policies, the Company has earnestly implemented management requirements. It delved into the essence of traditional culture in game R&D and operational strategies. And it has actively sought to integrate cultural significance into player experiences and apply innovative technologies to achieve mutual empowerment of cultural and industrial value. For example, the Company incorporated Cantonese culture, Anhui-style culture, the ancient Maritime Silk Road, and Peking opera facial makeup into its globally published game Trading Legend (叫我大掌柜), helping overseas players gain a deeper understanding of Chinese culture. Furthermore, it actively explored the "Games+" integrated development model of "technology + cultural tourism" to facilitate the promotion of cultural tourism in cities such as Guangzhou, Huangshan, and Wuhu. During the Reporting Period, the Company’s game Xun Dao Da Qian (寻道大千) incorporated the spectacular scenery of Huangshan into in- game scenes. By combining online and offline experiences, the game allowed players to feel the rich historical context of Huangshan and promoted diverse expressions of culture through gaming. The Company also launched innovative cultural tourism campaigns such as the “CongMei City Tour Program—Wuhu” and the “Wuhu Intelligent Manufacturing Industrial Tour” to facilitate the digital communication and inheritance of traditional culture and cultural-tourism consumption in the new era. Additionally, under the guidance of the Guangzhou Municipal Cyberspace Administration, 37 Interactive Entertainment hosted the “Intangible Heritage Guangzhou Red” online promotional campaign, which showcased the charm of intangible cultural heritage through innovative formats. These included a digital culture experience exhibition, AI co-creation experiences, and in-game collaborations with Shi Guang Za Huo Dian (时光杂货店), connecting tradition and modernity, integrating intangible heritage into daily life, and expanding its cultural influence. As AI technology continues to mature, the development of games in sync with AI has become increasingly prominent. Technological innovation in AI is increasingly seen as a key factor in the global competitiveness of products. The Company adheres to technology-driven innovation, and explores the potential for deep integration of AI and other emerging technologies with the Company's business. Also, it improves work efficiency and promotes organic innovation capabilities. During the Reporting Period, the Company played a significant role in drafting the association standard—Compliance Guidelines for Data Application of Generative Artificial Intelligence. This standard offers companies a valuable reference for their compliant application of generative AI, helping to enhance their data security capabilities. In terms of protection for minors, apart from implementing the real-name authentication system and anti-addiction requirements required by competent authorities, the Company has strengthened protection for minors by consistently improving and upgrading its protection system for minors. We have always advanced various tasks in a proactive and positive manner to ensure minors are well-protected in cyberspace. The Company has rolled out an upgraded version of the "real-name registration and anti-addiction system for minors" for our proprietary platforms. Additionally, we have optimized the logo and wording of the "age-appropriate prompt". Meanwhile, the Company has refined and upgraded our "Parent Monitoring Platform", optimized our customer service procedures, and aided guardians in queries and verification, all aimed at creating a clean and healthy cyberspace for minors. The Company has remained focused on its core business and deepened its "integration of R&D and operation" strategy. We have continued to enhance our capability of producing quality games, solidify our core competitive edge in overseas expansion, and explore possibilities of integrating technology into our business by leveraging resources both within and outside the technology domain. With steady strides, we have advanced high-quality and sustainable business development, dedicated to offering the public a wealth of premium cultural content. II Principal Operations of the Company in the Reporting Period The Company specializes in the development and publishing of games for global players, with the excellent game development brand “Three Seven Games”, as well as professional game publishing brands “37Mobile”, “37GAMES” and “37Online”. The Company precisely grasped the industry development trends, made continuous improvements in operation, and remained a top performer in the industry, while adhering to the "boutiqueization, diversification and globalization" strategy. For the Reporting Period, the Company recorded operating revenue of RMB17,441 million, a YoY increase of 5.40%, and a net profit attributable to its shareholders of RMB2,673 million, a YoY increase of 0.54%. 37 Interactive Entertainment
(I) Overview of the principal operations of the Company in the Reporting Period 1. Continuously enhancing the long-term operation of diverse products In response to industry trends, the Company has consistently adhered to the "diversification" strategy, understanding the demands of diverse user bases and continuously expanding its user base. By tapping into new markets and nurturing new growth drivers, we have continuously pushed back the boundaries of our game genres. In addition to delving into the existing four primary genres: Massive multiplayer online role playing games (MMORPGs), strategy games, gacha games, and business simulation games, we have developed games where RPG, casual, and puzzle elements are incorporated. These diverse and lightweight games have diversified player experiences. During the Reporting Period, the Company’s globally published mobile games achieved peak monthly gross billing of over RMB2.3 billion. During the Reporting Period, the Company released the anniversary version of its Chinese-style fun cultivation game Xun Dao Da Qian (寻道大千). Combining teamwork-based social interaction with strategy gameplay, this version featured deepened content and increased engagement, enhancing user stickiness. This version also saw an in-depth collaboration between the game Xun Dao Da Qian (寻道大千) and other popular IPs, such as the novels Soul Land and A Record of a Mortal’s Journey to Immortality, the animated movie Ne Zha, and Boonie Bears. The differentiated content and customized integration have offered players immersive experiences and new unique gameplay. As a result, the game achieved long-term operation through brand empowerment and social interaction, established a diversified and sustainable user operation system, and helped the Company garner leading experience in the mini-game domain. In August 2024, the modern-themed simulation mobile game Shi Guang Za Huo Dian (时光杂货店) was published by the Company as the agent. Fully recreating the 1990s, the game offers players a chance to relive childhood memories. To ensure better immersive experiences for players, the Company forged collaborations between the game and popular film and TV productions. This has further enhanced the Company’s edge in publishing and operating business simulation games. During the Reporting Report, the Company celebrated the third anniversary of its self-developed card mobile game The Soul Land: Hun Shi Dui Jue (斗罗大陆：魂师对决). To mark that special occasion, the Company introduced new soul masters and gameplay revolving around the “Tang San’s Journey to Becoming a God” storyline in the original work. This update evoked a sense of nostalgia among users for the IP, increasing the number of the game’s daily active users and prolonging the product life cycle. Regarding the mobile game Fan Ren Xiu Xian Zhuan: Ren Jie Pian (凡人修仙传：人界篇), the Company launched its anniversary version in mid-2024, which featured new content of the Immortality Chapter and was published using a traffic management-centric approach. This has not only helped the Company expand its active user base but has also allowed it to continuously improve the game’s ecosystem and enrich players’ experiences. The game has thus become a flagship product in the Company’s cultivation-themed massively multiplayer online role-playing game (MMORPG) lineup. Trading Legend (叫我大掌柜), a Chinese-style simulation mobile game of the Company, has successfully converted new players through an engaging and nostalgic marketing approach and intellectual property (IP) collaborations. By creating a long- term ecosystem with a focus on user interactions, this game has consistently sparked a boom. On the game’s third anniversary, a “palace version” featuring ancient palace elements was released. In this version, players role-play as minor palace characters and climb the ranks. This version has helped the Company expand its user base and prolong the game’s life cycle, further demonstrating the Company’s capability of long-term operation. During the Reporting Period, the Company also deeply integrated Anhui-style intangible cultural heritage into the gameplay and promotion of Trading Legend (叫我大掌柜), creating another exemplary case of mutual empowerment between games and traditional culture. We adopted an innovative marketing approach combined with top-tier celebrity endorsements for Ba Ye (霸业), one of our self-developed strategy mobile games on the theme of the Three Kingdoms. With a constant stream of creative materials, this game saw a growing player base, helping the Company stabilize the structure of its strategy game portfolio. Ling Hun Xu Zhang (灵魂序章), the self-developed game based on the Soul Land IP, reinterpreted the classic fun of the Soul Land IP through lightweight gameplay, continuously offering new game content for IP fans and establishing a benchmark for lightweight gaming under the “integration of R&D and operation” strategy. Regarding the 3D realistic ant-themed strategy mobile game, Underground Kingdom (小小蚁国), the Company has continuously optimized its mechanics to help players gather resources more efficiently and make the overall gaming experience more seamless. This optimization has reduced the daily quest burden on players, improved long-term player retention, and ensured steady operations. The Company consistently adheres to long-term operation, providing players with meticulous and comprehensive long-term services. It deeply integrates the highlights of its intellectual property (IP) to continuously innovate in terms of reflow methods and activities, consistently prolonging the product life cycle and igniting product vitality. This demonstrates the Company’s strong capabilities of long-term game operation. 2. Continuously exploring global market opportunities, and promoting the mutual empowerment between games and culture During the Reporting Period, the Company achieved overseas operating revenue of RMB5,722 million. The Company, drawing upon its years of experience in overseas expansion, has continuously explored its overseas markets in line with the "tailored games" strategy. It continued to seek growth opportunities in the overseas market, achieved regional breakthroughs, and continued to refine its long-term operation strategy. We have consolidated our strengths in sectors such as MMORPGs, strategy games, gacha games, and business simulation games, and opened up opportunities in the casual game market, thereby boosting the steady growth of our overseas business. Puzzles & Survival, a phenomenal product launched overseas by the Company, integrates “Match-3 gameplay + SLG”, demonstrating strong competitiveness and wide user appeal across multiple international markets. It performed especially well in key regions including Hong Kong, Macao and Taiwan of China, Europe and North America, Japan, South Korea, and Vietnam. It ranked among the top 8 outbound mobile games by revenue on the Sensor Tower 2024 leaderboard, highlighting its exceptional market performance and commercial value. Since its launch in 2020, Puzzles & Survival has generated over RMB10 billion in gross billing, showcasing its global brand presence and growth potential. During the Reporting Period, the Company continued to explore player preferences and market trends within the strategy game genre to iterate high-quality products through theme diversification and gameplay differentiation. For example, as an iteration of Puzzles & Survival, Puzzles & Chaos integrates “Match-3 gameplay + SLG” while retaining the core experiences of Puzzles & Survival. Compared to its predecessor, Puzzles & Chaos features greatly enhanced art design and special effects. Since its launch, the game has consistently broken new ground in overseas markets with growing gross billing, ranking among the top 20 strategy games in different regions worldwide multiple times. The ant-themed game Ant Legion aims to represent a realistic and detailed insect world. By delving into player demands through preliminary research and considering the R&D and operational capacity, the Company has developed an immersive, ant world-themed version. In this version, players build ant colonies, fend off predators, and lead their ant armies to conquer the challenging natural environment, securing victories one after another. These continuous breakthroughs have led to a steady rise in player satisfaction. The Company has deeply integrated the gameplay themes and promotional materials of its products with excellent traditional Chinese culture. This approach creates a communication method that resonates with diverse regional, national, and audience groups, promoting the global expression of Chinese stories. For example, the game Trading Legend (叫我大掌柜) has demonstrated the Company’s commitment to carrying forward traditional Chinese culture. During the Reporting Period, the Company initiated collaborations between the game with the classic costume drama The Legend of Zhen Huan and the Chinese comic book Fox Spirit Matchmaker. The game incorporated hot pot, a key element of Chinese culinary culture, into its content and launched a promotional video featuring Sichuan’s intangible cultural heritage art of jin qian ban (brass coin clapper talk). The goal is to bring distinctive gameplay to global players, giving them an immersive taste of Chinese culture. During the Reporting Period, Puzzles & Survival collaborated with the national-level intangible cultural heritage project Guangzhou-Style Color Porcelain to launch a themed version showcasing this traditional craft, representing an innovative expression of Chinese traditional culture. The casual incremental mobile game Xiao Yao Wen Dao (小 妖问道) features meticulously customized promotions in localities and thematic packaging. Through collaboration with popular fantasy IPs such as Soul Land and A Record of a Mortal’s Journey to Immortality, this game has contributed to cultural exchanges, achieved impressive market performance, and garnered positive feedback from international players. These have laid a solid foundation for the Company’s expansion into overseas markets of casual incremental games. 3. Building a rich product pipeline for the global market The Company focuses on its core gaming business. On one hand, it continuously expands the boundaries of self- development capabilities, actively expands into various categories, and develops products with a global perspective. It carefully works out details regarding gameplay design, art quality, music effects, etc., continues to invest in product iteration, user experience and other aspects, and has formed professional layouts in MMORPGs, strategy games and light games. Remaining "Dedicated to Making Premium Games", it has a strong pipeline of refined self-developed mobile games. On the other hand, based on its self-developed brands, the Company consistently prioritizes high-quality content as its strategic direction. Through multi-dimensional approaches such as investment empowerment and business support, the Company has carried out in-depth collaborations with reputable game developers such as EyuGame and Yanqu Network. This approach has allowed the Company to accumulate abundant external R&D reserves, which is conducive to its diversified arrangements for product supply. In terms of IP, the Company has secured adaptation rights for several IPs including Battle Through the Heavens (斗破苍穹), Lord of Mysteries (诡秘之主), and Soul Land (斗罗大陆), providing a richer content foundation for building a diversified product portfolio. The Company has built a portfolio of games across genres such as MMORPGs, strategy games, gacha games, and business simulation games. These games cover diverse themes, including western fantasy, oriental fantasy, Three Kingdoms, modern themes, and ancient themes. These include: the Chinese comic oriental fantasy MMORPG The Soul Land: Lie Hun Shi Jie (斗罗大 陆：猎魂世界), the Japanese Chibi-style MMORPG Code MLK (代号 MLK), the realistic Three Kingdoms SLG Code Zheng Qi SLG (代号正奇 SLG), the American cartoon-style survival SLG Code XSSLG (代号 XSSLG), the oriental fantasy SLG Code GMSLG (代号 GMSLG), the traditional Chinese ink painting-themed business simulation game Zhui Xu (赘婿), the oriental fantasy RPG Code Dou Po (代号斗破), and the oriental fantasy RPG Code Po Jian (代号破茧). The Company is currently accelerating the release schedule of its reserved products, aiming to deliver a more diversified gaming experience for players. In early 2025, several titles including Shi Guang Da Bao Zha (时光大爆炸) and Ying Xiong Mei You Shan (英雄没有闪) were launched successively. Among them, Shi Guang Da Bao Zha (时光大爆炸) ranked fourth on the WeChat mini-game grossing chart, while Ying Xiong Mei You Shan (英雄没有闪) quickly entered the top five of the iOS grossing chart, and topped the WeChat mini-game grossing chart, demonstrating strong growth potential. Looking ahead, certain key games in the pipeline are presented below: Intended Developer Name of game Game category, theme and style publishing area
ecosystem based on a self-developed industry-specific large language model As one of the earliest game companies in China to systematically adopt AI technologies, the Company places a high strategic emphasis on the deployment and application of big data and AI technologies. After years of technological accumulation and business practice, the Company has established an AI architecture centered on the AI capability foundation, which covers the intelligent product layer and business application layer, forming a full-link AI empowerment system for game R&D and operation. This system comprehensively enhances the industrialization level of the Company’s game R&D and operation. Building the AI capability foundation: Based on deep data accumulation from business scenarios and computility investment, the Company continuously conducts internal training and inference optimization on the massive, high-quality data accumulated over the years, independently developing the gaming-specific large language model “Xiao Qi”. The Company, using “Xiao Qi” and incorporating an advanced external large language model cluster, has developed more than 40 AI capabilities. This AI capability foundation fully empowers various general and specialized systems across the Company, following the technology iteration path of chatbot/tool-copilot-agent-digital labor. Upgrade of the intelligent product matrix: Based on the industry-specific large language model “Xiao Qi”, the Company has （未完）  |