Core Viewpoint - The recent administrative penalty notice from the China Securities Regulatory Commission (CSRC) against 37 Interactive Entertainment reveals multiple violations related to false shareholder records, undisclosed related party transactions, and misleading announcements from 2014 to 2021 [2][3] Summary by Sections Regulatory Actions - The CSRC has proposed to order 37 Interactive Entertainment to rectify its actions and issue warnings, with a total fine of 32.55 million yuan imposed on the company and six related individuals, including 14 million yuan on the current chairman Li Weiwei [3] Violations Details - The violations include false records of shareholder holdings in annual reports from 2014 to 2020, failure to disclose related party transactions in the 2018 annual report, and omissions in the 2020 interim announcement and annual report regarding related party transactions [2][4] Company Background - 37 Interactive Entertainment transitioned from an automotive parts company to a gaming company after acquiring 100% of the game company "Shanghai 37 Play" in 2014 and subsequently changing its name [3][4] Financial Performance - In the first three quarters of the year, the company reported revenue of 12.461 billion yuan, a year-on-year decrease of 6.59%, while net profit attributable to shareholders was 2.345 billion yuan, an increase of 23.57% [5] - The third quarter alone saw revenue of 3.975 billion yuan, down 3.23%, but net profit rose by 49.24% to 944 million yuan [5] Game Performance and Market Reception - The company attributed its performance growth to effective long-term operations of existing products and the successful launch of new games such as "Time Explosion" and "Douluo Dalu: Soul World" [5] - However, player ratings on TapTap for these games were relatively low, with scores of 4.5, 6.1, and 6.8, indicating dissatisfaction with aspects like server management and monetization strategies [6] Cost Management - Despite a 19.53% decrease in sales expenses to 6.199 billion yuan, these costs still accounted for nearly 50% of total revenue, while research and development investment was only 512 million yuan [6]
证监会重磅处罚!三七互娱因七年信披违法领罚 现任董事长李卫伟个人被罚1400万