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RKS CSI 800ESG Rating Released: 37 Interactive Entertainment Is the Only A-Level Non-Financial Enterprise

GUANGZHOU, China, Nov. 10, 2020 /PRNewswire/ — Recently, Hexun and RKS jointly released the 2020 RKS CSI 800 ESG Rating Report (hereinafter referred to as RKS ESG Rating). As the only non-financial enterprise, 37 Interactive Entertainment received an A-rating alongside 15 well-known Chinese financial companies, such as Industrial and Commercial Bank of China and China Construction Bank. These companies have more comprehensive corporate governance and risk management mechanisms. The profitability and sustainable development capabilities of these companies make them more competitive than their peers and their internal systems lower systemic and specific risks in their organizations. All of which make them value targets worthy of long-term investment in the capital market.

Only 2% of Companies receive A-Ratings, 37 Interactive Entertainment Ranked 1st in the Entertainment Industry

The rating report is based on RSK’s self-developed ESG (Company’s Environmental, Social and Corporate Governance) rating standards and tools from 2019 to track and evaluate the ESG public information of CSI 800 constituent companies.

The rating is divided into 7 levels: AAA, AA, A, BBB, BB, B, and CCC. Amongst the 800 listed companies participating in the rating, only 16 companies achieved an A; 2% of the total.

RKS ESG Rating Report also listed the ESG leading companies (top 10%) of each industry. 37 Interactive Entertainment ranked No.1 in the entertainment industry.

Rankins CSR Ratings (RKS) is an authoritative third-party rating agency for corporate social responsibility in China. Since 2008, the agency has been tracking and evaluating the CSR reports issued by all A-share listed companies. So far, it has evaluated more than 7,000 CSR reports for 12 consecutive years, involving more than 1,000 A-share listed companies.

It is reported that the core objective of the RKS ESG rating is to respond to investor concerns. Through the analysis and evaluation of the target’s ESG risk management process and results, it gives a glimpse of the company’s ESG risk management environment, capability, effectiveness, as well as corporate sustainability, providing quantitative reference data for medium and long-term investors.

The rating is based on a multi-dimensional evaluation of three aspects: management planning, management implementation, and management performance. The effectiveness of the company’s board of directors, business ethics, risk management, and human resources are all key factors to the evaluation. An A-rating means that the company has outstanding performance in corporate governance mechanisms, risk control mechanisms, and sustainable development.

As the only A-rated non-financial company, 37 Interactive Entertainment strictly adheres to corporate governance and being responsible to its investors. The company rigorously abides by all laws and regulations, ensures effective communication, effectively protects investors’ rights and interests, and creates value for investors. Abiding by Corporate Law, Securities Law along with the related laws and regulations of CSRC and SZSE, 37 Interactive Entertainment has established a complete corporate governance structure and a strict operating system. At the same time, the company also strengthened the internal control and management systems to improve corporate governance more comprehensively.

The results of this evaluation study done by RKS highly recognized the ESG performance of 37 Interactive Entertainment, and at the same time, encourages all companies to work towards sustainable development in the future.

37 Interactive Entertainment Emphasizes Corporate Sustainability in All Aspects of the Company to Pursue Lasting Operations

ESG, as an invisible indicator that has not been paid attention to by traditional evaluation systems, is an important reference standard for global investors to measure the sustainability of corporate development and social responsibility. Active development of a company in the ESG field is conducive to consolidating the cohesion of the society, shareholders, customers, and other stakeholders, enhancing the company’s anti-risk ability, highlighting the corporate social responsibility image, and shaping a good brand reputation and social recognition. Companies with excellent ESG performance can significantly reduce the financing costs, which is favorable for their long-term sustainable and healthy development.

As a leading company in the A-share game industry, the management team of 37 Interactive Entertainment has always maintained long-term management thinking and crisis awareness, pursued the long-term sustainable development of the company.

While achieving its business goals, 37 Interactive Entertainment also actively assumes social responsibilities and pays attention to the demands and expectations of stakeholders. The company integrates sustainable development into all aspects of corporate governance, core values, culture, strategy, risk management, and internal control.

In terms of CSR development, 37 Interactive Entertainment has released CSR reports for four consecutive years. The company continues to improve shareholders’ rights and benefits, abide by laws and regulations, protect employees’ rights and benefits, protect user data security, participate in public welfare activities, and conserve the heritage of traditional culture. The company continues focus on its goals of enhancing corporate management mechanisms and compliance systems, and providing talents with more space for developing bigger projects. Implementing social responsibility management through organizational governance concepts, 37 Interactive Entertainment is putting planning into practice. The practice of these CSR work has also become a key driving force for the company’s high-quality, sustainable development.

According to 37 Interactive Entertainment’s financial statement, in the first half of 2020, the company achieved a revenue of ¥7.989 billion RMB, a year-on-year increase of 31.59%, which topped the A-share game companies revenue ranking; The net profit attributable to shareholders was ¥1.7 billion RMB, a year-on-year increase of 64.53%. The growth has exceeded expectations. Besides, 37 Interactive Entertainment’s market share in China’s mobile game market has exceeded 10%, next only to Tencent and NetEase.

While strengthening the management, practice, and disclosure of sustainable development, 37 Interactive Entertainment will continue working with industry partners to create more value for society.