Is 37 Interactive Entertainment profitable in 2025?

Yes. FY2025 net profit attributable to shareholders rose 8.50% YoY to RMB 2.90 billion even as revenue fell 8.46% to RMB 15.97 billion, per the company's 2025 annual report filed 2026-04-27.

Could AI replace 37 Interactive Entertainment's business?

Unlikely. Its core assets, licensed IP deals, distribution scale, and China game-publishing licenses, are not AI-replicable. The company itself uses AI internally for translation (85% of overseas games) and ad screening, per a 2025-11-09 interview, as a cost tool not a threat to its model.

Is 37 Interactive Entertainment losing market share to Tencent or NetEase?

It's under pressure. Revenue fell 8.46% in FY2025 and 12.32% YoY in Q1 2026. In May 2025 app-store data it ranked #3 among China iOS publishers at $51.3M, well behind NetEase's #2 spot at $89.4M.

Who owns 37 Interactive Entertainment?

It is publicly traded on the Shenzhen Stock Exchange under ticker 002555, with no controlling parent identified in filings. Zhong Ou Asset Management held roughly 5.4% of shares as of mid-2024, per WSJ data from 2025-12-22.

Who is 37 Interactive Entertainment's biggest competitor?

Tencent dominates China's overall gaming and browser-game market, while NetEase directly outranks 37 in mobile publishing, posting $89.4M in China iOS revenue in May 2025 versus 37's $51.3M, per PocketGamer.biz app-store tracking.

Is 37 Interactive Entertainment's revenue growing?

No, it's shrinking. FY2025 revenue fell 8.46% YoY to RMB 15.97 billion and Q1 2026 revenue dropped 12.32% YoY to RMB 3.72 billion, though its WeChat mini-game segment grew 34.39% YoY in 2025.

Gaming companies · China

37 Interactive Entertainment

37.com ↗

Chinese mobile game publisher, #3 on iOS by revenue, running on hit-driven catalog and mini-games.

Losing its protection

Assessed 23 July 2026 · Evidence as of 23 July 2026

The structural protection is eroding.

On the recordSince 23 July 2026 · Checkable from August 2026 · Every call on the record Checkpoint: H1 2026 earnings report, key test of Soul Land: Lie Hun Shi Jie and mini-game growth

The call

Profits are up but revenue keeps shrinking, and nothing stops Tencent or NetEase from simply outspending 37 for the same players.

37 Interactive makes and publishes mobile games for phones in China, and it ranks third by money made on Apple's app store there. The company makes money right now and runs lean, but its sales are shrinking year after year. The problem is that bigger companies like Tencent and NetEase can do exactly what 37 Interactive does, and nothing stops them from taking its customers. The real test is whether a new game called Soul Land: Lie Hun Shi Jie becomes a hit when it launches, because this company survives by betting on new games instead of having something competitors cannot copy.

Why

AI pressure: Generative AI game tools used by rivals and small studios. AI art and code tools cut costs for everyone, letting more studios flood China's mobile game charts and squeeze 37's slots. Could AI do the core job? Unlikely.

Bigger players: Tencent and NetEase. Both outrank 37 on China iOS revenue and can outspend it on marketing, IP licensing, and mini-game placement inside WeChat. Could a giant copy it? Yes, easily.

What protects it. Deep buy-in-heavy monetization know-how and IP relationships that keep older titles like Soul Land profitable even as growth slows.

What would change this call

37 Interactive's Q2/H1 2026 earnings report (expected around August 2026). Shows whether revenue decline is stabilizing or worsening against Tencent/NetEase competition.
Soul Land: Lie Hun Shi Jie commercial launch results after mid-2025 testing. Indicates whether its core IP pipeline can offset shrinking catalog revenue.
WeChat mini-game revenue growth rate in 2026 versus 2025's 34.39% YoY. Shows if Tencent's own platform control is squeezing 37 Interactive's mini-game gains.

Key numbers

FY2025 revenue RMB 15.97B, down 8.46% YoY (2025-12-31)
Q1 2026 revenue RMB 3.72B, down 12.32% YoY (2026-03-31)
#3 China iOS publisher at $51.3M, NetEase #2 at $89.4M (2025-05-31)

Named risks

Two consecutive years of revenue decline signals aging back-catalog dependence. Severity: high
Unproven Soul Land: Lie Hun Shi Jie pipeline is the main swing factor for a turnaround. Severity: medium
China's game-license regulatory regime could shift and disrupt operations. Severity: medium
Mini-game segment growth occurs on Tencent's WeChat platform, a competitive dependency. Severity: medium
Conflicting HQ and headcount data across sources suggests evidence quality gaps. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Tencent	contesting	Dominates China gaming and browser-game market; 37 historically #2 in browser games behind it
NetEase	gaining on	Ranked #2 iOS publisher at $89.4M vs 37's $51.3M, May 2025
Lilith Games	gaining on	Revenue grew +37.15% MoM vs 37's +13.68% MoM in May 2025
FunPlus	contesting	37 ranked #3 ($51.3M) ahead of FunPlus #5 ($22.1M), which fell -19.99% MoM May 2025

Questions people ask

Is 37 Interactive Entertainment profitable in 2025?: Yes. FY2025 net profit attributable to shareholders rose 8.50% YoY to RMB 2.90 billion even as revenue fell 8.46% to RMB 15.97 billion, per the company's 2025 annual report filed 2026-04-27.
Could AI replace 37 Interactive Entertainment's business?: Unlikely. Its core assets, licensed IP deals, distribution scale, and China game-publishing licenses, are not AI-replicable. The company itself uses AI internally for translation (85% of overseas games) and ad screening, per a 2025-11-09 interview, as a cost tool not a threat to its model.
Is 37 Interactive Entertainment losing market share to Tencent or NetEase?: It's under pressure. Revenue fell 8.46% in FY2025 and 12.32% YoY in Q1 2026. In May 2025 app-store data it ranked #3 among China iOS publishers at $51.3M, well behind NetEase's #2 spot at $89.4M.
Who owns 37 Interactive Entertainment?: It is publicly traded on the Shenzhen Stock Exchange under ticker 002555, with no controlling parent identified in filings. Zhong Ou Asset Management held roughly 5.4% of shares as of mid-2024, per WSJ data from 2025-12-22.
Who is 37 Interactive Entertainment's biggest competitor?: Tencent dominates China's overall gaming and browser-game market, while NetEase directly outranks 37 in mobile publishing, posting $89.4M in China iOS revenue in May 2025 versus 37's $51.3M, per PocketGamer.biz app-store tracking.
Is 37 Interactive Entertainment's revenue growing?: No, it's shrinking. FY2025 revenue fell 8.46% YoY to RMB 15.97 billion and Q1 2026 revenue dropped 12.32% YoY to RMB 3.72 billion, though its WeChat mini-game segment grew 34.39% YoY in 2025.

Timeline

2026-07-02PitchBook logs early-stage VC investment by 37 Interactive into AI firm Lexiang Intelligent
2026-06-27TTM revenue reported at RMB 15.44 billion, down 8.81% YoY
2026-03-31Q1 2026 revenue RMB 3.72 billion, down 12.32% YoY; net profit up 59.02% YoY
2025-12-31FY2025 revenue RMB 15.97 billion (down 8.46%); net profit RMB 2.90 billion (up 8.50%)
2025-11-0936kr interview details internal AI system Xiaoqi and translation/ad-screening use
2025-07-31Public testing launched for Soul Land: Lie Hun Shi Jie
2025-05-31Ranked #3 among China iOS game publishers at $51.3 million revenue
201437 Interactive reached A-share market via reverse merger into Shunrong San Qi shell
2011-0937Games founded by Li Yifei and Zeng Kaitian

Revision history

23 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

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