Summary of 37 Interactive Entertainment Investor Day Company Overview - **Company**: 37 Interactive Entertainment (002555.SZ) - **Event**: Investor Day held on January 22, 2026, at the Guangzhou Global Headquarters Key Industry Insights - **Mini Game Market**: Continued robust growth with diverse genres and AI-empowered applications [11] - **Strategy Game (SLG) Market**: Expanding total addressable market (TAM) due to a younger and more diverse audience [11] - **Casual Games**: Significant potential for growth in overseas markets, with low penetration from Chinese developers [11] Strategic Focus and Developments - **Game Development**: Emphasis on lighter gameplay for MMORPGs targeting younger gamers [12] - **Restructuring**: Reintroduction of a veteran studio and focus on campus recruitment to attract young talent [13] - **Game Portfolio**: Plans to develop 5 key mini games and 5 SLG games, with a focus on both domestic and overseas markets [24] Financial Performance and Estimates - **Revenue Estimates**: FY25-27E revenue estimates raised by 1.6%, 9.7%, and 5.7% to Rmb16.8 billion, Rmb18.5 billion, and Rmb18.7 billion respectively [1] - **Profit Estimates**: FY25-27E profit estimates adjusted by 1.5%, 3.4%, and -0.2% to Rmb3.2 billion, Rmb3.6 billion, and Rmb4.0 billion respectively [1] - **Target Price**: Raised to Rmb33 from Rmb25.5, reflecting a 20x PE on FY26E profit [1] AI Strategic Investments - **AI Integration**: Focus on improving existing business and future strategic investments in AI [3][25] - **AI Applications**: Over 60% penetration of AI in art design and other operational areas, significantly shortening development cycles [27] - **Future Outlook**: Anticipation of deeper integration of AI in gameplay within the next 2-3 years [26] Market Expansion Plans - **Overseas Strategy**: Emphasis on expanding into Southeast Asia and other markets for SLG and casual games [18][19] - **New Game Launches**: Upcoming launches of SLG games targeting overseas markets, with beta testing currently underway [18] Shareholder Returns - **Dividend Policy**: Commitment to stable quarterly dividends of around Rmb500 million since 2024, with plans to maintain this strategy [30] - **Cash Flow Management**: Sufficient internally generated cash flows to support strategic investments [30] Conclusion - **Growth Potential**: Management expresses confidence in sustaining growth through strategic investments in AI and expanding game genres [29] - **Market Leadership**: 37 aims to maintain its leadership position in the mini game market and re-establish itself in overseas SLG and casual game markets [1][11]

Summary of China Online Gaming Industry Journal (Dec 2025 Edition) Industry Overview - The report focuses on the **China Online Gaming Industry**, highlighting key insights from various companies and market trends in the sector [1][2]. Key Companies Mentioned - **Century Huatong** - **37 Interactive Entertainment** - **Perfect World** - **Kingnet** - **G-Bits** - **Giant Network** Core Insights and Arguments 1. **Market Performance**: The A-share gaming sector experienced a rally in early January, indicating a positive sentiment towards the industry. The focus is on the monetization potential of the upcoming game cycle and performance during the Chinese New Year promotion [1]. 2. **Earnings Visibility**: There is an emphasis on strengthening shareholder returns to boost market confidence in earnings visibility as the sector approaches 2026 [1]. 3. **Constructive Outlook**: The report maintains a positive outlook on the China online gaming sector, citing quality earnings growth, accelerating overseas expansion, and increased exposure to AI gaming [1]. 4. **Company Rankings**: The new A-share gaming pecking order is established as follows: Century Huatong > Kingnet > Giant Network > 37 > G-Bits > Perfect World [1]. Financial Highlights - **Global Mobile Game Revenues**: According to AppMagic, global mobile game grossing remained stable with a **0.5% year-over-year increase**, while downloads rose by **4.6% year-over-year**. Notably, 12 of the top 30 most profitable mobile games globally were developed by Chinese studios [2]. - **Top Performers**: Among the top 30 mobile games, **Whiteout Survival** from Century Games was highlighted as the fastest-growing mobile game globally, achieving **50% year-over-year grossing growth** [2]. Company-Specific Updates 1. **Century Huatong**: Released the domestic version of **High Seas Hero** on WeChat mini game and is testing multiple new strategy games in domestic and overseas markets [3]. 2. **37 Interactive Entertainment**: The mini game **Survival in 33 Days** achieved significant traction, reaching the 2 position in WeChat mini game grossing in December 2025 [4]. 3. **Perfect World**: Announced the third round of closed beta testing for **Neverness to Everness**, available on multiple platforms [5]. 4. **Kingnet**: Launched a new MMORPG titled **Divine** in South Korea, featuring unique gameplay mechanics [6]. Additional Insights - The report suggests that the recent performance of 37 Interactive Entertainment supports its potential for re-rating as a sector laggard following the removal of regulatory overhang [4]. - The focus on AI gaming exposure indicates a trend towards integrating advanced technologies in game development, which could enhance user engagement and monetization strategies [1]. Conclusion The China Online Gaming Industry is poised for growth, driven by strong earnings potential, innovative game releases, and a favorable market environment as it heads into 2026. The emphasis on shareholder returns and AI integration reflects a strategic approach to enhance competitiveness in the global gaming landscape [1][2].

Summary of China Online Gaming Industry Journal (Nov 2025 Edition) Industry Overview - The report focuses on the **China Online Gaming Industry**, highlighting key data and updates from various companies within the sector, including **Century Huatong**, **37 Interactive Entertainment**, **G-Bits**, and **Kingnet** [1][22]. Key Highlights 1. **Industry Growth**: - The China domestic game market reached **Rmb 31.4 billion** in October 2025, reflecting a **7.8% year-over-year (yoy)** and **5.7% month-over-month (mom)** growth, primarily driven by National Day promotions [1][22]. - The **PC gaming segment** grew by **29.4% yoy** and **1.9% mom** to **Rmb 7.23 billion**, with notable contributions from games like **Delta Force** (Tencent) and **Where Winds Meet** (NetEase) [1][22]. - The **mobile gaming segment** saw a **2.4% yoy** and **5.3% mom** increase to **Rmb 22.6 billion**, driven by promotions for **HoK** (Tencent) and **Genshin Impact** (miHoYo) [1][22]. 2. **Company Performance**: - **Century Huatong**'s game **Whiteout Survival** climbed to **3** in mobile grossing rank, adding over **Rmb 100 million** in sequential grossing [1][22]. - **Overseas grossing** from Chinese studios increased by **11.9% yoy** and **11.0% mom** to **US$ 1.80 billion**, with top performers including **Arknights** (Hypergryph) and **Genshin Impact** (miHoYo) [1][22]. 3. **Investment Outlook**: - Despite a soft sentiment in the A-share gaming sector, the report maintains a positive outlook for most A-share gaming companies, citing a rich game pipeline and competitive advantages in overseas markets [1][22]. - The recommended pecking order for A-share gaming companies is: **Century Huatong > Kingnet > Giant Network > G-Bits > 37 > Perfect World** [1][22]. Company Updates - **Century Huatong**: - Announced the first beta for **Uncharted Waters: Origin** and **La Tale Mobile**, indicating ongoing development and expansion in mobile gaming [2]. - **37 Interactive Entertainment**: - Launched a survival RPG **Survival in 33 Days**, which quickly entered the top 30 in WeChat mini game grossing [2]. - **G-Bits**: - Conducted the final beta for **Jiu Mu Zhi Ye**, with an official launch scheduled for December 18 [2]. - **Kingnet**: - Announced a new Android closed paid beta for **Soul Land** [3]. Additional Insights - The report emphasizes the potential for **portfolio diversification** through investments in the online gaming sector, especially in light of current market conditions focused on AI [1][22]. - The performance of mobile games during promotional periods, such as National Day, highlights the importance of marketing strategies in driving revenue growth [1][22]. This summary encapsulates the essential insights and data from the China Online Gaming Industry Journal, providing a comprehensive overview of the current state and future outlook of the sector.