On February 22, 37 Interactive Entertainment (002555. SZ) disclosed its 2021 annual results forecast. According to the announcement, the company expects to achieve a net profit after deducting non-recurring gains and losses of 2.55 billion yuan to 2.6 billion yuan in 2021, which is expected to increase by 6.61% to 8.7% year-on-year. With the continued good performance of high-quality games and globally released games, the company's net profit in the fourth quarter hit a record high, and the net profit attributable to the mother is expected to reach 1.08 billion to 1.13 billion yuan.
2021 is destined to be an extraordinary year for the game industry, and the great changes in channels, traffic and user levels are reconstructing the underlying logic of the industry, returning to the game itself, and focusing on its own real strength to become the main theme of the industry. In order to build unique vitality and lasting competitiveness, 37 Interactive Entertainment has continuously promoted the strategy of "high-quality, diversified and globalized" products to achieve steady increase in performance.
High-quality transformation is cashed in, and R&D is increased to build core competitiveness
37 Interactive Entertainment's grasp of industry trends has always been accurate, and the most obvious action is to continue to increase investment in research and development and lay a good foundation for the development of high-quality products. According to the company's 2021 third quarter report, the R&D investment in the first three quarters of 37 Interactive Entertainment totaled 991 million yuan, an increase of 15.83% year-on-year, the R & D organization was continuously upgraded, and the game development management was more refined and scientific.
Since 2021, the company has launched a number of self-developed game new products, such as the fantasy IP theme strategy card game "Douluo Continent: Soul Master Showdown", the magic theme MMORPG game "Glory Archangel", etc., while reserves "Codename Three Kingdoms BY", "Codename C6", "Codename Female to CY" and other nearly ten blockbuster self-developed products covering MMO, SLG, cards and simulated business categories, covering a variety of themes, the product matrix continues to improve, It fully proves that the company's R & D investment is gradually being transformed into product results.
Among them, Douluo Continent: Soul Master Showdown was developed for the first time using a next-generation 3D game engine. In order to present a more delicate picture, enhance the player's sense of immersion.
The company's R&D team also applied PBR (physically based lighting) technology to Douluo Continent: Soul Master Showdown to achieve panoramic 3D effects, real-time seamless day and night switching, and dynamic volumetric light tracking. The ultimate pursuit of game quality has been highly recognized by users, and the game, known as the "transformation work" of 37 Interactive Entertainment, reached 3.7 million new users on the first day, and after the global launch, it also handed over an excellent answer sheet with a peak monthly flow of more than 700 million yuan.
In terms of deepening the development model of "R&D integration", the company uses advanced technology to empower the three core sectors of teamwork, product development and distribution and operation. Among them, the AI big data computing power research and operation middle platform "Zeus" can realize the automation and standardization of the whole process of research and development, deployment and operation, and provide support for departmental collaboration. Systems such as "Quantum" and "Tianji" can improve the delivery efficiency through big data analysis and AI algorithms, and through the statistical analysis and prediction of game data, the team can more effectively control the long-term operation rhythm of the product, improve user stickiness, and stabilize the product life cycle.
Overseas games have performed well, and overseas markets have gradually become the second growth pole
While increasing investment in research and development and focusing on high-quality games, 37 Interactive Entertainment has also set its sights on the promising overseas market. Looking at a variety of products that 37 Interactive Entertainment has landed in overseas markets, although the themes and categories are not the same, they have achieved good results.
At present, 37 Interactive Entertainment has maintained a leading edge in Southeast Asia, Japan and South Korea, Europe and the United States and other regions, and since the second half of 2021, the company has continued to rank at the forefront of the Chinese game manufacturers' overseas revenue list, and its global influence is gradually increasing.
From the perspective of overseas strategy, 37 Interactive Entertainment adopts the strategy of "adapting to local conditions", that is, according to the situation in different regions, the release of suitable local game categories, marketing promotion and operation are based on localization as the core. This makes 37 Interactive Entertainment no longer bound by past experience and traditional marketing methods, and can better meet the needs of local users.
From the perspective of specific games, globally released games such as Puzzles & Survival, Call Me big boss, and Song of the Cloud City continue to contribute revenue, which verifies the strong overseas operation strength of 37 Interactive Entertainment.
Among them, "Puzzles & Survival" will be the most popular match-3 gameplay in the European and American markets and the traditional heavy SLG gameplay has been perfectly integrated, after the game was launched, it quickly listed in the top 30 list of seafood, and successfully ranked 4th in the 2021 global mobile game revenue growth list of Sensor Tower; the other-world adventure theme MMORPG "Song of the Cloud City" successfully entered the Korean best-seller list Top5 after launching the Korean market. At the same time, it ranks among the top 25 overseas income list of domestic mobile games, and the overseas market has made a breakthrough.
At the same time, 37 Interactive Entertainment actively pays attention to the cultural core of the game, and tries to implant China's excellent traditional culture from all aspects such as game themes, content gameplay, and promotion materials, so as to achieve two-way empowerment of traditional culture and games.
Taking the ancient Chinese simulated business mobile game "Call Me a Big Treasurer" released globally as an example, 37 Interactive Entertainment integrates historical and cultural elements in an innovative form, and adds elements of Chinese history and culture such as the Maritime Silk Road, dragon boat racing, and shadow puppetry to the game version for different countries and regions, so as to stimulate the interest of users around the world to feel and explore traditional Chinese culture from the product. In 2021, the company was once again selected as a key enterprise of national cultural export in 2021-2022.
As one of the game companies that show greater certainty in the game going to sea, 37 Interactive Entertainment's achievements in the game sea have been unanimously recognized by institutions, including Shenwan Hongyuan, Huatai Securities, CITIC Securities, Guotai Junan and other institutions have issued research reports, optimistic about the company's future overseas performance and high-quality, diversified strategic breakthroughs, giving 37 Interactive Entertainment "buy" or "overweight" rating.
It can be seen that behind the performance forecast data, it reflects the company's thinking on the development of the industry and its own strategic transformation. 37 Mutual Entertainment is taking "boutique, diversification and globalization" as the core, constantly paving the way for high-quality products, which is beyond the foresight of existing market cognition, so that 37 Interactive Entertainment can gradually exchange for long-term benefits.
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Editor 丨Jian Xiaobian
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