Financial Performance - In 2019, IGG's total revenue and profit declined, but net profit in the second half of the year increased by 33% compared to the first half[34]. - The group's total revenue for the year reached $667.6 million, a decrease of 11% compared to the previous year, primarily due to the natural decline in revenue from the long-standing classic game "King of Kingdoms"[38]. - Net profit for the year was $164.8 million, down 13% year-on-year, while net profit in the second half increased by 3% year-on-year and by 33% compared to the first half, reaching $94.1 million[38]. - The group's gross profit for the year was $462.8 million, a decrease of 12% from the previous year, with a gross margin of 69%, down from 70%[54]. - Other net income increased by 258% to $32.6 million, primarily due to the appreciation of investments in mobile internet gaming-related companies[55]. - The sales and distribution expenses for the year were $164.9 million, a decrease of 12% from the previous year, maintaining a ratio of 25% of total revenue[56]. - R&D expenses for the year ended December 31, 2019, were $92.5 million, an increase of 45% from $63.6 million in 2018, representing 14% of revenue compared to 8% in 2018[58]. - Income tax expenses decreased by 46% to $25.2 million for the year ended December 31, 2019, down from $47.1 million in 2018, primarily due to a decrease in profit before tax[60]. - Net cash generated from operating activities was $126.9 million for the year ended December 31, 2019, a decrease from $239.2 million in 2018, mainly due to reduced operating profit[66]. - Cash used in investing activities was $29.2 million for the year ended December 31, 2019, compared to $41.0 million in 2018, primarily for establishing a game art training base and acquiring property in Italy[67]. - Cash used in financing activities was $78.1 million for the year ended December 31, 2019, down from $131.6 million in 2018, mainly due to dividend payments and share buybacks[68]. - The board declared a second interim dividend of HKD 0.176 per share, totaling HKD 0.306 per share for the year, down from HKD 0.344 per share in 2018[72]. - The group repurchased 34,594,000 shares for $27 million, with total share buybacks and dividends amounting to $76.3 million, representing 46% of the year's profit[75]. User Engagement and Game Development - As of December 31, 2019, IGG's flagship game "King of Kingdoms" had 270 million registered users and nearly 8.2 million monthly active users, generating an average monthly revenue of approximately $50 million[34]. - IGG launched over 10 new games in 2019, expanding into genres such as sandbox and casual games, with plans to introduce more new categories in 2020, including MOBA and shooting games[35]. - The company has a total of 740 million registered users globally, with a strong presence in over 200 countries and regions[37]. - The revenue from "King of Kingdoms" accounted for 80.7% of total revenue, generating $539 million, while "Castle Clash" contributed 11.4% with $75.9 million[50]. - The company aims to enhance user gaming experience by continuously innovating and improving game quality, with frequent updates and new gameplay features[169]. - The company has localized operational teams globally to better understand local cultures and gaming preferences, improving service to local players[169]. - IGG engages players through various interactive activities, including international esports tournaments and offline meetups, enhancing community connections[176]. - The company emphasizes player feedback through multiple channels, ensuring game content updates to retain player interest[173]. Corporate Governance - The company has a board of directors consisting of nine members, including five executive directors and three independent non-executive directors, ensuring compliance with listing rules[97]. - The company has adhered to corporate governance principles, with a commitment to transparency and accountability to shareholders, except for the separation of the roles of Chairman and CEO[94]. - The independent non-executive directors bring diverse experience from various industries, enhancing the board's effectiveness[92]. - The company has implemented a board diversity policy to ensure a range of perspectives and experiences are represented[98]. - The board is responsible for overseeing the company's overall strategy, financial performance, and risk management[97]. - The company has maintained a high level of corporate governance, with independent non-executive directors making up one-third of the board[97]. - The company has a commitment to continuous improvement in corporate governance practices to maximize shareholder value[94]. - The board includes members with significant experience in finance and management, ensuring effective oversight of the company's operations[97]. - The company has appointed independent non-executive directors with appropriate professional qualifications in finance and management, meeting regulatory requirements[97]. - The board of directors has adopted a dividend policy to enhance transparency and ensure prudent and disciplined dividend payments to shareholders, while preserving liquidity for future growth opportunities[109]. Social Responsibility and Community Engagement - IGG has committed to social responsibility by donating over 1.5 million medical supplies in response to the COVID-19 pandemic[35]. - The company actively engages with stakeholders to understand and respond to their expectations and needs regarding social responsibility[153]. - The company is committed to corporate social responsibility, focusing on environmental protection, community investment, and supply chain management[163]. - The company is developing a sustainable development policy to support long-term growth in governance, business operations, social welfare, and environmental protection[165]. - The company has identified key stakeholders and tailored engagement plans to address their concerns and expectations regarding environmental, social, and governance issues[159]. Employee Development and Welfare - Employee-related costs totaled $71.4 million for the year ended December 31, 2019, an increase from $65.3 million in 2018, with total employees rising to 1,587 from 1,421[76]. - IGG's total number of employees as of December 31, 2019, was 1,587, representing a 12% increase from the previous year[191]. - 41% of IGG's employees are under the age of 30, and 29% are female, reflecting the characteristics of the gaming industry[191]. - In 2019, IGG held over 60 internal sharing sessions, with nearly 1,400 total participants and over 36,000 hours of training[193]. - The company has established a comprehensive training system, offering over 400 online courses to employees, allowing for flexible learning opportunities[193]. - The company actively encourages employment for disabled individuals, providing job opportunities and financial support[191]. - The company provides social security benefits such as pension, medical, unemployment, work injury, and maternity insurance, along with housing provident fund contributions[198]. - The company has established an employee welfare committee and a trust fund to provide medical assistance for senior management and core employees, as well as scholarships for employees' children[198]. - The company has a multi-channel internal communication mechanism to collect employee feedback, receiving over 500 feedback submissions in 2019 through its online suggestion system[200]. - The company emphasizes fairness and justice as core cultural values, allowing employees to file complaints regarding unfair treatment[200]. Risk Management and Compliance - The board reviews the risk management and internal control systems quarterly and considers them effective as of December 31, 2019[136]. - The company monitors various indicators such as game data, player feedback, and employee turnover rates to manage potential risks[136]. - The board has established internal management procedures to ensure business risks are controlled and managed effectively[136]. - The company has implemented internal policies to manage and control insider information effectively[136]. - The company has implemented measures to comply with local laws regarding gaming health, including player real-name authentication and age restrictions[172]. - The company actively protects its intellectual property with a 24/7 alert system and collaborates with global trademark databases to monitor potential infringements[182].

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].

目錄 | 公司資料 | 2 | | --- | --- | | 主席報告書 | 4 | | 管理層討論及分析 | 5 | | 董事及高級管理層簡介 | 14 | | 企業管治報告 | 19 | | 企業社會責任報告 | 33 | | 董事會報告 | 63 | | 獨立核數師報告 | 98 | | 綜合損益表 | 104 | | 綜合全面收益表 | 105 | | 綜合財務狀況表 | 106 | | 綜合權益變動表 | 108 | | 綜合現金流量表 | 110 | | 財務報表附註 | 111 | | 財務摘要 | 182 | | 釋義 | 184 | 1 公司資料 董事會 執行董事 蔡宗建先生 （主席兼首席執行官） 許元先生 張竑先生 沈潔蕾女士 陳豐先生 非執行董事 池元先生 獨立非執行董事 梁漢基博士 余大堅先生 陸釗女士 董事會委員會 審核委員會 梁漢基博士 （主席） 余大堅先生 陸釗女士 提名委員會 梁漢基博士 （主席） 蔡宗建先生 余大堅先生 陸釗女士 薪酬委員會 陸釗女士 （主席） 蔡宗建先生 余大堅先生 聯席公司秘書 沈潔蕾女士 鄺燕萍女士 （香港特許秘書公會資深會員） 授權代表 蔡宗建先生 ...