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wrote a column · Apr 30 15:29

From 'Blockbuster Logic' to 'Assembly Line Industry': The 'Replicable' Code Hidden in the Growth of 37 Interactive Entertainment

Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
Author |Purple Maple
Editor |Little White
In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two.
Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors.
Recently, Sanqi Interactive Entertainment released its Q1 2026 report: revenue reached 3.72 billion yuan, a 6.15% increase quarter-over-quarter, while net profit attributable to shareholders was 873 million yuan, marking a substantial year-over-year growth of 59.02%. This strong start is solid evidence that the company's revenue growth has begun to recover from last year’s adjustment period.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
(Source: Market Value Wind APP)
When analyzing financial statements, one should not only look at absolute numbers but also focus on relative changes and the underlying drivers. The 6.15% quarter-over-quarter rebound in revenue merely scratches the surface of the financial data; what Fengyun Capital discerns from the report is the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. These are the critical factors that determine whether Sanqi Interactive can maintain financial health and continue to create value for shareholders.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
The 'replicable' logic behind successful products
For the capital markets, 'accidental' successes carry uncertainty, whereas a 'predictable' business model holds long-term value. In recent years, Sanqi Interactive has systematized its experience with hit games into a reusable methodology. The success of three blockbuster titles in Q1 2026 clearly demonstrates the practical application of this approach.
01 Industrial output in the mini-games sector: 'Survival 33 Days'
The self-developed survival-themed game 'Survival 33 Days,' launched between late 2025 and early 2026, quickly topped the best-seller charts on multiple platforms, including WeChat, Douyin Mini Games, and TapTap.
According to the '2025 China Gaming Industry Report,' revenue from domestic mini-program games surged by 34.39% year-over-year in 2025, reaching 53.535 billion yuan. Heavy app-based games are facing the challenge of plateauing user engagement, while mini-games have successfully capitalized on the fragmented entertainment habits of users.
Sanqi Interactive's competitiveness in this space lies in its mature 'precise traffic operation' strategy combined with a 'lightweight core gameplay' that quickly attracts users, creating an efficient business model.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
For example, the self-developed survival RPG 'Survival 33 Days' incorporates innovative 'search-fight-retreat' mechanics within the 'RumbleLike' framework. Features such as one-click teleportation provide an ultra-lightweight experience, directly appealing to mini-game players’ desire for fast-paced, uncomplicated gameplay.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
(Source: Publicly available online information)
It is essentially an extremely sophisticated funnel for monetizing traffic: the early-stage low-barrier enjoyment quickly attracts a broad base of casual gamers, and then later-stage numerical progression bottlenecks complete the commercial monetization. This deep insight into user psychology and the efficiency of traffic conversion has always been 37 Interactive Entertainment's traditional strength.
According to the 'Top 100 Chinese Mini-Game Companies in 2025,' 37 Interactive Entertainment had a total of 14 games on the list, ranking at the top. From classic hits like 'Xun Dao Da Qian' and 'Time Grocery Store' to breakout successes in 2025 such as 'Time Big Bang' and 'Heroes Without Flash,' and then to year-end hits like 'Survival 33 Days' and 'Football Greats,' multiple products have consistently ranked high on the best-seller charts, forming a strong product portfolio. These successes demonstrate that 37 Interactive Entertainment’s ability to create hit games in the mini-game sector is systematic and replicable.
02 Innovation in 'genre fusion' for overseas SLG: 'Last Asylum: Plague'
Overseas markets are the vast expanse for China's game developers. In 2025, 37 Interactive Entertainment's overseas revenue was 5.381 billion yuan, accounting for approximately 33.7% of total revenue, remaining roughly the same as before.
In the first quarter, 'Last Asylum: Plague,' a new SLG title globally published by 37 Interactive Entertainment, performed strongly. According to a report by third-party data platform Sensor Tower, the game powerfully entered the Top 10 of the 'Global Mobile Game Revenue Growth Rankings' and the Top 5 of the 'China Mobile Game Overseas Revenue Growth Rankings' in March 2026, showing robust growth momentum in overseas markets.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
Industry insiders know well that pure SLG gameplay revolves around the '4X' model—right from the start, it involves building armies, stockpiling resources, and engaging in battles, which can be overly hardcore for new players, leading to poor early retention.
How did 37 Interactive Entertainment break through? The answer lies in 'micro-innovations in genre fusion.'
As early as with 'Puzzles & Survival,' a long-term ace title with cumulative revenue exceeding 15 billion yuan, 37 Interactive Entertainment validated the blockbuster logic of 'match-3 + SLG.' Using match-3 casual gameplay to attract a large number of low-cost casual users and gradually converting them into deep-paying SLG users, they tapped into the long-term operational value.
This time, with 'Last Asylum: Plague,' they cleverly introduced elements like 'simulation management' within the core SLG framework. The early game starts with simulation management mechanics, offering lightweight gameplay, clear goals, and instant feedback, significantly reducing the tedium and entry barriers typical of traditional SLGs in their early stages, attracting a broader audience of casual gamers.
As the game progresses to the mid-to-late stages, the gameplay transitions to the traditional 4X model. Players need to venture out to explore the map, fight mutated creatures, and compete for resource points. At this stage, deep content such as city-building, hero development, and alliance warfare fully unfolds.
This subtle innovation not only perfectly aligns with overseas players' preference for survival-themed content but also serves as an early 'traffic magnet,' significantly reducing user acquisition costs and solving the longstanding challenge of customer acquisition in SLG games.
From 'match-3+' to 'simulation management+,' 37 Interactive Entertainment has mastered this 'genre fusion' micro-innovation on the overseas SLG track with remarkable finesse.
03Refined IP Operations for MMO Overseas: 'RO: New World Adventure'
In January 2026, 'RO: New World Adventure' was launched in the Hong Kong, Macao, and Taiwan regions. According to publicly available online information, the game reached the top of the free and top-grossing charts in local major app stores shortly after its release.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
(Source: Publicly available online information)
The Hong Kong, Macao, and Taiwan markets have historically been the 'outpost' for domestic MMOs going global. As a classic PC gaming IP, 'RO: New World Adventure' comes with a built-in player base, but revitalizing it depends on the publisher's execution capabilities.
37 Interactive Entertainment demonstrated its ability to implement region-specific, refined operations. On one hand, 37 Interactive employed aggressive marketing strategies to reignite nostalgia among veteran players. According to publicly available online information, promotional materials were released three months in advance, peaking during the official launch; they also enlisted actress Alyssa Chia as a spokesperson, invited well-known streamers for promotion, held frequent giveaways and resource showcases on social media platforms, and conducted extensive offline promotions.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
(Source: Publicly available online information)
On the other hand, the game underwent 'streamlining' optimizations tailored to modern players' preferences, such as implementing an automated battle system, removing the power-leveling system, and shortening daily task durations. This lighter gameplay naturally attracted more players.
The successful topping of the charts in the Hong Kong, Macao, and Taiwan markets provided a data model and optimization experience for subsequent expansion into Southeast Asia and broader overseas markets. By validating through a strong regional market and then gradually expanding globally, this steady distribution strategy maximized the long-tail effect of the IP.
In summary, 37 Interactive Entertainment has successfully built a clear and replicable methodology for hit products. The core logic of this methodology lies in precisely designing a 'user funnel' for specific categories and markets, significantly lowering the barriers to acquisition and retention through gameplay integration and experience optimization, and then leveraging a mature commercialization and operational system to maximize value extraction.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
Looking at growth 'sustainability' from a forward-looking layout
If the outstanding performance of new products is the fruit on the tree, then the underlying R&D system and strategic reserves are the deep roots underground. Short-term performance growth may rely on one or two hits, but medium- to long-term investment value must be built on 'sustainability.'
37 Interactive Entertainment's strategy is very clear: maintaining control over core category self-development, forming alliances through investments in diverse categories, and sustaining overall growth via continuous product releases, precise user acquisition spending, and long-term operations.
While solidifying its self-developed foundation, the company has deeply tied up with high-quality external development teams like Ejoy Network and Yanqu Network through industrial investments. The 'self-developed + agency' dual-channel model has built the company a multi-layered and highly robust 'product arsenal.' From Q-version fantasy RPGs to medieval survival SLGs, from simulation management to casual card games, the company has greatly expanded its genre boundaries.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
(Selected key pipeline products of 37 Interactive Entertainment; source: 2025 Annual Report)
A rich reserve means extremely high earnings fault tolerance. If Game A fails to meet expectations during testing, Games B and C can immediately step in. This dual-driven strategy smooths out performance fluctuations caused by individual product life cycles, providing high visibility and certainty for sustained growth over the next 2-3 years.
Deeper sustainability is reflected in how large AI models comprehensively empower the entire gaming pipeline.
The large AI model 'Little Seven,' self-developed by 37 Interactive Entertainment, has been deeply integrated into the company’s research and operational processes. According to the company’s 2025 annual report, on the publishing and content generation side, AI-generated 2D art assets account for over 80%, and ad material videos exceed 70%. On the R&D side, AI-assisted code generation penetration exceeds 40%, and 3D asset generation accounts for more than 30%.
On the user acquisition side, in the past, you needed to maintain hundreds of bidding specialists and material teams who manually experimented with countless ad videos daily. Now, AI can generate tens of thousands of video variations with different scripts and art styles within a day, targeting them precisely to users with different tags, greatly improving user acquisition efficiency.
In Q1 2026, while the company's revenue increased quarter-over-quarter, its selling expenses decreased by 22.28% year-over-year, administrative expenses dropped by nearly 20%, and net profit excluding non-recurring items increased by 13.68% year-over-year. This is one of the results of the overall improvement in operational efficiency and refined cost management, with significant contributions from the empowerment of technologies such as AI.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
Strong cash flow and high shareholder returns demonstrate business resilience.
No matter how perfect a business logic may seem, if it doesn't generate real cash, it’s all empty talk.
In 2025, NetEase Games’ net operating cash flow reached 3.538 billion yuan, an increase of 18.19% year-over-year. Over the past three full fiscal years, this figure has cumulatively reached 9.69 billion yuan, making it a true 'cash cow.'
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
(Source: Market Value Wind APP)
Additionally, the net cash ratio has remained above 100% in recent years, showcasing excellent cash flow performance.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
(Source: Market Value Wind APP)
In recent years, NetEase Games has maintained a policy of high dividend payouts, being one of the few A-share listed companies that consistently offers quarterly cash dividends, allowing investors to share in the company's growth. In 2025, NetEase Games' cash dividend reached 2.27 billion yuan, setting a new record, representing 78.3% of net profit attributable to shareholders. In other words, the company distributed close to 80% of its profits to shareholders.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
(Source: Market Value Wind APP)
Based on this calculation, at the closing price of 21.61 yuan on April 28, NetEase Games' dividend yield over the past 12 months was approximately 4.77%, higher than many traditional industry companies that tout themselves as 'high-dividend' stocks.
In Q1 2026, the company distributed a dividend of 0.21 yuan per share to shareholders and committed to paying dividends for the next two quarters, providing shareholders with stable dividend expectations.
As a result, the company has established a virtuous cycle of 'stable operations - generating cash flow - rewarding shareholders - enhancing trust,' serving as reliable proof of the sustainability of its business model.
Introduction: Quarter-on-quarter growth and profit release are just surface phenomena; the core is the systematic ability to transform occasional successes into inevitable models Author |Purple Maple Editor |Little White In the entertainment and culture sector, which is heavily content-driven with a strong product lifecycle attribute, many investors are accustomed to valuing companies based on 'blockbuster logic'—one hit product sends the stock price soaring; when the product reaches the end of its lifecycle without a replacement, the stock price crashes. As a result, we've seen too many 'flash-in-the-pan' companies that shine for only a year or two. Through self-developed games and agency operations, combined with its robust game publishing and operational capabilities, 37 Interactive Entertainment has built an 'industrial assembly line' for game products. By leveraging a diversified product matrix's sustainability to offset the short lifecycle of a single 'hit product,' the company demonstrates long-term investment value to all market investors. Recently, 37 Interactive Entertainment delivered its report card for Q1 2026: revenue of 3.72 billion yuan, a quarter-on-quarter increase of 6.15%, and net profit attributable to shareholders of 873 million yuan, a year-on-year surge of 59.02%. This promising start serves as strong evidence that the company's revenue growth has begun to emerge from last year's adjustment period. (Source: Market Value Wind APP) When analyzing financial reports, one should not only look at absolute numbers but also pay attention to relative changes and the underlying drivers. The 6.15% quarter-on-quarter rebound in revenue is just the superficial layer of the interim financial data. From the financials, Fengyun Jun discerns the 'replicability' of hit-making and the 'sustainability' of the product ecosystem. This is the essence of 37 Interactive...
Overall, facing a complex, volatile, and fiercely competitive global gaming market, NetEase Games has built a 'growth engine' capable of withstanding industry cycles through a repeatedly validated hit game evolution strategy, along with a robust R&D ecosystem fortified by AI industrial pipelines and a diversified product portfolio.
Sanqi Interactive Entertainment exhibits dual attributes, featuring both AI-enabled growth and overseas expansion of new games, while also being a company that places great emphasis on shareholder returns. Against the backdrop of the current A-share market's popularity with the 'barbell strategy' (dividends + technology), Sanqi Interactive Entertainment demonstrates unique dual characteristics.
The strong start of new releases in the first quarter highlights a clear trend of improvement for Sanqi Interactive Entertainment. From a long-term investment perspective, its core competitiveness lies in 'a stable foundation + an increasingly validated methodology + a high dividend yield as a safety cushion.'
A broad and long-term view is essential; good companies are worth our patience as time allies.
Disclaimer:This report (article) is based on the public company attributes of listed firms and relies on independently disclosed information by these companies in accordance with their legal obligations (including, but not limited to, interim announcements, annual reports, and official interactive platforms) as the core reference for third-party research. Market Value风云 strives to ensure that the content and viewpoints presented in this report (article) are objective and fair, but does not guarantee their accuracy, completeness, or timeliness. The information or opinions contained in this report (article) do not constitute any form of investment advice, and Market Value风云 assumes no responsibility for any actions taken based on the use of this report.
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