Financial Performance - The total revenue for the period was $354.67 million, a decrease of 9% compared to $388.50 million in the same period last year, but stable compared to $360.30 million in the second half of last year[9]. - Net profit for the period was $70.70 million, down 28% from $98.39 million in the same period last year, and decreased by 22% compared to $90.90 million in the second half of last year[10]. - Adjusted net profit was $72.88 million, a decrease of 28% from $101.14 million in the same period last year, and down 22% from $92.90 million in the second half of last year[10]. - The gross profit for the period was $246.20 million, a decrease of 10% from $273.10 million in the same period of 2018, with a gross margin of 69%[26]. - Profit before tax for the six months was $84.050 million, a decline of 32.2% compared to $123.901 million in the previous year[130]. - The total comprehensive income for the six months ended June 30, 2019, was $69,479 thousand, compared to $69,467 thousand for the same period in 2018, showing a slight increase[138]. Revenue Breakdown - Revenue distribution for the period was 43% from Asia, 27% from North America, and 25% from Europe, aligning with the global mobile gaming market distribution[12]. - Revenue from "King of Kingdoms" accounted for $282.10 million, representing 79.5% of total revenue, while "Castle Clash" contributed $44.70 million, or 12.6%[25]. - Game revenue from Fuzhou Tianmeng amounted to $36,474 thousand, representing 10.3% of the group's total revenue for the six months ended June 30, 2019[117]. Expenses and Investments - The group's R&D expenses increased by 48% to $42.90 million, rising from 7% to 12% of total revenue, due to the expansion of new R&D projects[30]. - The sales and distribution expenses were $99.60 million, accounting for 28% of total revenue, an increase from 25% in the same period of 2018[27]. - Cash used in investing activities amounted to $28.3 million, primarily for establishing a game art talent training base and a European branch, compared to $5.1 million in the same period of 2018[37]. Shareholder Returns - The company declared an interim dividend of HKD 0.13 per share, totaling approximately $21.20 million, compared to HKD 0.177 per share in the same period last year[10]. - The second interim dividend approved and distributed for the previous fiscal year was $27,251 thousand, an increase of 14.5% from $23,803 thousand in the same period of 2018[198]. - The company paid dividends amounting to $26,760,000, an increase of 14.1% from $23,394,000 in 2018[142]. Corporate Governance - The company has maintained a high level of corporate governance, with the board consisting of five executive directors, one non-executive director, and three independent non-executive directors[49]. - The external auditor, KPMG, has reviewed the interim financial report in accordance with the relevant standards[49]. - The company has committed to improving corporate governance practices to maximize shareholder returns[49]. Employee and Operational Metrics - As of June 30, 2019, the group employed 1,609 staff, an increase from 1,421 as of December 31, 2018[43]. - Total employee-related costs for the period reached $34.9 million, up from $30 million in the same period of 2018[43]. - The company has a cumulative registered user base of 700 million, with a global presence in over 200 countries and regions[12]. Strategic Initiatives - The company is accelerating its global expansion, establishing subsidiaries in Brazil and Turkey, and building localized teams in Italy and Spain[13]. - Continuous investment in game development and operational promotion is aimed at driving long-term business growth[13]. - The group plans to continue seeking merger and acquisition opportunities to accelerate business growth and breakthroughs[21]. Compliance and Regulatory Matters - The company has taken measures to ensure compliance with structural contracts, including annual reviews by independent non-executive directors[119]. - There have been no regulatory challenges regarding the structural contracts from Chinese authorities as of the report date[119]. - The company acknowledges potential adverse impacts on operations and financial performance if structural contracts need to be unwound or if ownership interests in Fuzhou Tianmeng must be sold[123]. Share Options and Awards - The company has a stock option plan that allows for a maximum of 25% of options to be exercised after each consecutive 12 months of service[64]. - The total number of unexercised options as of June 30, 2019, was 12,332,800, with 1,449,200 options exercised during the period[69]. - The stock reward plan was adopted on December 24, 2013, to recognize contributions and retain key personnel, with a maximum of 10% of the issued share capital available for grants[92].

Financial Performance - In 2018, IGG's revenue increased by 23% year-on-year to $749 million, while net profit rose by 22% to $189 million[8]. - The company's revenue reached a record high of $748.8 million, an increase of 23% compared to $607.3 million last year[28]. - Net profit surged by 22% to $189.3 million from $155.1 million in the previous year[25]. - Revenue from Asia accounted for 46.2% of total revenue, while North America and Europe contributed 26.6% and 22.7%, respectively[29]. - Monthly active users (MAU) for "King of Kingdoms" reached 13 million, with total registered users exceeding 180 million by the end of the year[19]. - Revenue for the last quarter reached $150 million, representing a 15% increase compared to the previous quarter[66]. - Future guidance indicates a projected revenue growth of 20% for the upcoming quarter[66]. Game Portfolio and User Engagement - The flagship game "King of Kingdoms" has over 180 million registered users and 13 million monthly active users, maintaining the top position in the global strategy mobile game rankings for 19 consecutive months[9]. - The newly launched game "Mobile Royale" gained over 4 million registered users within two months of its release[10]. - The company has expanded its game portfolio to include sandbox and casual games, with plans to launch new titles within the year[10]. - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[66]. - IGG has established localized operational teams globally to understand local cultures and gaming preferences, enhancing targeted marketing strategies[166]. Market Strategy and Expansion - IGG aims to continuously improve game experiences and content quality to reward players and maintain its market position[11]. - The company plans to enhance its global market presence by establishing localized teams in Brazil, Turkey, and Western Europe[28]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2025[66]. - The company is investing $10 million in research and development for new technologies aimed at enhancing user experience[66]. - New product launches are expected to contribute an additional $20 million in revenue over the next fiscal year[66]. Corporate Governance - The company has maintained compliance with the corporate governance code, except for the provision A.2.1, which states that the roles of Chairman and CEO should be separated[80]. - The board consists of nine members, including five executive directors and three independent non-executive directors, ensuring a balanced governance structure[84]. - The company is committed to maintaining high standards of corporate governance to create shareholder value[80]. - The board will continue to review and improve its governance practices to align with best practices and shareholder interests[80]. - The board has reviewed and established corporate governance policies and practices as of December 31, 2018[111]. Financial Management and Expenses - Sales and distribution expenses increased by 17% to $186.6 million, primarily due to increased advertising for "King of Kingdoms"[35]. - Administrative expenses for the year ended December 31, 2018, were $44.7 million, a 34% increase from $33.4 million in 2017, with the ratio of administrative expenses to revenue remaining stable at 6%[36]. - R&D expenses for the year ended December 31, 2018, were $63.6 million, a 36% increase from $46.7 million in 2017, with the ratio of R&D expenses to revenue remaining stable at 8%[37]. - Income tax expenses for the year ended December 31, 2018, were $47.1 million, a 97% increase from $23.9 million in 2017, primarily due to increased pre-tax profits and provisions for tax risks[40]. Employee Engagement and Development - As of December 31, 2018, IGG had a total of 1,421 employees, representing a 35% increase from the previous year[194]. - Employees under 30 years old accounted for 42% of the total workforce, while female employees made up 30%[194]. - In 2018, IGG conducted approximately 50 internal sharing sessions, covering various topics related to game planning, production, art, and programming[195]. - The total participation in training sessions exceeded 1,200 person-times, with a total duration of over 27,000 hours in 2018[195]. Corporate Social Responsibility and Ethics - The company has established a robust anti-corruption policy, ensuring compliance with local regulations and training for new employees[161]. - IGG collaborates with organizations to provide employment opportunities for disabled individuals, prioritizing their hiring when job requirements are met[194]. - The company is developing a sustainable development policy to address governance, business operations, social welfare, and environmental protection[159]. - The company emphasizes user privacy protection and game quality as key expectations from gaming users[144]. Customer Service and Satisfaction - The internal quality inspection rate for customer service reached 99% in 2018, with 91% of players expressing satisfaction with the service[174]. - In 2018, the customer service center handled over 990,000 inquiries through game backend, over 520,000 online chat queries, and more than 440,000 emails, reflecting a significant increase in user engagement compared to 2017[173]. - The customer service team dynamically adjusts staffing based on real-time service data to meet player inquiries promptly[173]. Risk Management and Compliance - The board has reviewed and deemed the risk management and internal control systems effective as of December 31, 2018, covering financial, compliance, and operational monitoring[121]. - The group employs legal, accounting, and tax professionals in multiple jurisdictions to ensure compliance with relevant laws and regulations[122]. - The company has established internal policies to ensure compliance with local regulations in all operational countries, including hiring local legal and tax professionals[180].