37Games's Half Year Financial Report Shows a Leading Position

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Sep 30, 2015, 10:00 ET

SHANGHAI, Sept. 30, 2015 /PRNewswire/ -- Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. (002555.SZ) recently released its 2015 half year fiscal report. The report shows that its subsidiary Sanqi Interactive Entertainment Technology Co., Ltd. (hereinafter refer to as "37Games") had a revenue of 1.96 billion CNY and net profit of 380 million CNY for the first half year. This indicates a rapid grow in both revenue and net profit when compared with 2014's January to July figures of 1.49 billion CNY in revenue with a net profit of 193 million CNY. 37Games also predicts that profits will continue to grow to between 545 and 565 million CNY in the first three financial quarters of this year.

37Games as Top Chinese Browser Game Operation Platform and Developer

The co-founder and president of 37Games Li Yifei stated, "Given the current statues of 37Games market position, we (37Games) have a 2-3 years goal to achieve a 50% or higher annual revenue growth rate. Improvement in net profit rate is important, but for now we are focusing on expanding our market share." According to Chinese big-data analysis company Analysys's data, 37Games' two in-house developed browser games Archangel's Sword and Legend of Conqueror brought about a great amount of cash flow, which largely contributed to 37Games' high first half year revenue and its current leading position. With the robust growth in revenue, 37Games has expanded its Chinese browser game market share from 13.4% to 13.9%, ranked only second to Tencent. Additionally, 37Games is ranked number one in the browser game developer's market, with a 9.3% market share.

The Key Factor in Growth

One of the biggest contributing factors to 37Games' success is its capacity to convert traffic into registers and income. This is the core to 37Games high recognition in the Chinese gaming industry, and is the objective of 37Games in the North American and European Markets. By June 30^th, 2015, 37Games's gaming platforms including 37.com and 6711.com had accumulated more than 480 million registers, with 11 million new registrations monthly. Li Yifei believes that as the Chinese browser game market is getting increasingly mature, the cost of traffic acquisition has gone up several-fold in contrast to that of 2010. Gaming companies have to improve their ability to convert traffic into loyal players and profit. The key to achieving this is by producing innovative, well-crafted games coupled with superior customer service.

Achieve Sustainable growth by Diversifying Business and Products

Apart from the advantage of a massive user base and increasing sales, 37Games has been looking into new areas of revenue by connecting with partners from various aspects of the entertainment industry. Li Yifei mentioned that the development of cooperation and partnerships will not be limited to just games in the future, but a much broader spectrum of interactive entertainment. This year, 37Games has already established strategic agreements with Chinese Animation industry giant Alpha Animation and MengoFun, the subsidiary of leading TV station HunanTV, in terms of utilization of intellectual properties, media, advertising resources and capital. Additionally, 37Games and FILMKO Entertainment will jointly produce two big budget movies 'Summer Desire'(working title) and 'The Eight Immortals''(working title), setting a milestone for 37Games to enter the film business. 37Games also has reached an agreement with the well-known Chinese web directory website 2345.com and the internet entertainment networking platforms provider Shunwang Technology to have an in-depth cooperation in its users big data, internet finance, browser game co-operation and traffic acquisition areas. In addition, 37Games' is about to launch a new real-time video streaming site for the Chinese market. "With a strong and diversified business portfolio, we are optimistic about the future," Li Yifei added.

About 37Games

Sanqi Interactive Entertainment (Shanghai) Technology Co., Ltd. (also known as "37Games"), is a subsidiary of Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. (002555.SZ). Founded in 2011, Sanqi Interactive Entertainment has become a Chinese top 10 gaming platform and a Top 30 Chinese Internet company in 2015. As a game developer and publisher, 37Games provides browser games and mobile games in multiple languages including Chinese, English, French, Turkish, Thai and Vietnamese. For more information, please visit our official website: www.37.com

Shadow Hong
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SOURCE 37Games