Financial Performance - In 2022, the company reported a revenue decline of 24% to HKD 4.59 billion, marking its first annual loss since going public[9]. - The group's total revenue for the year ended December 31, 2022, was HKD 4.591 billion, a decrease of 24% compared to HKD 6.051 billion in 2021[30]. - The group recorded a loss of approximately HKD 503.6 million for the year, with a main business loss of HKD 176.8 million[30]. - The gross profit for the year ended December 31, 2022, was HKD 3,151,000,000, a decrease of 25% from HKD 4,198,000,000 in 2021, with a gross margin of 69%[35]. - Other net losses for the year ended December 31, 2022, were HKD 264,000,000, compared to HKD 31,000,000 in 2021, primarily due to impairment provisions for certain investments[38]. - The net cash used in operating activities for the year ended December 31, 2022, was HKD 98,239,000, compared to HKD 660,263,000 generated in 2021[49]. - The company had cash and cash equivalents of HKD 1,581,832,000 as of December 31, 2022, down from HKD 1,949,971,000 at the end of 2021[48]. - The income tax expense for the year ended December 31, 2022, was HKD 18,000,000, a decrease of 77% from HKD 77,000,000 in 2021, due to the company recording a loss[43]. User Engagement and Game Performance - The total registered users for the company's games reached 600 million, with an average monthly revenue of HKD 330 million[10]. - The company’s flagship strategy game, "Castle Clash," has accumulated nearly 300 million users over its ten-year operation[10]. - The game "King of Kingdoms" had 600 million registered users and maintained 11 million monthly active users as of December 31, 2022[21]. - The total user base reached nearly 1.5 billion, with monthly active users exceeding 35 million[19]. - The company achieved top three rankings on both Apple and Google platforms for its game "Mythic Heroes" in the Japan and South Korea markets[11]. Cost Management and Operational Efficiency - The marketing and administrative expenses were reduced by 23% and 16% respectively in the second half of the year, demonstrating effective cost control measures[9]. - The group reduced R&D and administrative expenses by 23% and 16% respectively in the second half of 2022[18]. - The cost of sales for the year ended December 31, 2022, was HKD 1,440,000,000, down 22% from HKD 1,853,000,000 in 2021[34]. - The total employee-related costs for the year ended December 31, 2022, amounted to HKD 1.3 billion, an increase from HKD 1.19 billion in the previous year, despite a 19% reduction in total employees from 3,101 to 2,503[61]. Strategic Initiatives and Future Plans - The company launched a new strategy game, "Viking Rise," which has received positive feedback for its unique gameplay and themes[11]. - The company plans to leverage its global R&D and operational advantages to navigate economic uncertainties in 2023[14]. - The group plans to promote potential new games in 2023, expecting profit pressure in the short term[29]. - The company emphasized its commitment to global market expansion and long-term operational strategies despite economic challenges[14]. - The group aims to leverage advancements in AI-generated content (AIGC) technology to enhance game development efficiency[29]. Investment and Financial Position - The group invested in internet gaming companies and recognized an investment-related loss of approximately HKD 326.8 million due to industry downturns[30]. - The group's external investments as of December 31, 2022, were HKD 655 million, down from HKD 1.021 billion a year earlier, including interests in associates and joint ventures[62]. - The group recognized an impairment loss of HKD 242 million for 21 associates and joint ventures, compared to HKD 33 million for 7 associates in the previous year, indicating significant financial distress in these investments[64]. - The fair value of the investment in MFund decreased from HKD 167.8 million in 2021 to HKD 118.7 million in 2022, resulting in an unrealized loss of HKD 49.2 million for the year[68]. - The fair value of the investment in Griffin increased from HKD 110.7 million in 2021 to HKD 114.2 million in 2022, yielding a gain of HKD 1.7 million[68]. Corporate Governance and Leadership - The company has a strong leadership team with over 26 years of experience in technology and finance, including key roles in major firms like Charles Schwab and Barclays Global Investors[81][84][85]. - The Chief Financial Officer has been with the company since 2009 and has extensive experience in financial management and compliance, having previously worked at various financial institutions[84]. - The company is focused on strategic investments in external startups and internal incubation projects, indicating a commitment to innovation and market expansion[85]. - The board currently consists of nine members, including five executive directors and three independent non-executive directors, ensuring a balance of power and authority[100]. - The company has maintained a high level of corporate governance, adhering to the corporate governance code, with the exception of clause C.2.1, which states that the roles of chairman and CEO should be separated[96]. Risk Management and Compliance - The company emphasizes the importance of clear communication with shareholders and maintains a shareholder communication policy that is reviewed annually[150]. - The company has integrated "Environmental, Social, and Governance" (ESG) risks into its risk management framework[145]. - The board has established a risk management and internal control system, which is reviewed quarterly, and considers it appropriate and effective as of December 31, 2022[145]. - The company has engaged legal, accounting, and tax advisors in various jurisdictions to ensure compliance with relevant laws and regulations[147]. - The company has implemented internal policies to ensure proper handling and communication of insider information[146]. Stakeholder Engagement and ESG Initiatives - The company actively communicates with stakeholders through various channels to understand and respond to their expectations and demands[176]. - Stakeholders expect IGG to protect user privacy, ensure game quality, and promote fair play, with communication through customer service and social media[177]. - IGG has identified and prioritized ESG issues through stakeholder surveys to establish a reporting framework that meets stakeholder expectations[183]. - The company aims to integrate social responsibility into its products, services, and community initiatives, promoting sustainable development[191]. - The company has implemented a robust anti-corruption policy, including a whistleblower system that allows for anonymous reporting of misconduct[195].

Financial Performance - The company reported revenue of HKD 2,485.74 million for the first half of 2022, a decrease of 23% compared to HKD 3,237.46 million in the same period last year, and a 12% decrease from HKD 2,813.44 million in the second half of 2021[14]. - The company recorded a loss of HKD 171.77 million for the first half of 2022, which is a 17% improvement from a loss of HKD 207.31 million in the second half of 2021, and a significant decline from a profit of HKD 576.92 million in the same period last year[15]. - The overall loss for the first half of 2022 was approximately HKD 171.77 million, compared to a loss of HKD 206.91 million in the second half of 2021[15]. - The group recorded a net loss of HKD 114 million in the first half of 2022 due to valuation changes and performance losses from invested companies[25]. - The company reported a total comprehensive loss of HKD 269,747,000 for the six months ended June 30, 2022, which includes a loss of HKD 171,771,000 and other comprehensive losses of HKD 97,976,000[175]. - The company reported a basic loss per share of HKD 0.1481 for the period, compared to earnings of HKD 0.4901 per share in the previous year[166]. - The company reported a net cash outflow from operating activities for the period was HKD 140 million, a significant decrease from a net cash inflow of HKD 541 million in the same period last year[44]. Revenue Sources - Revenue distribution for the company in the first half of 2022 was 37% from Asia, 33% from North America, and 24% from Europe[18]. - The revenue from the game "King of Glory" was HKD 2,008,898,000, down 26.6% from HKD 2,737,262,000 in the previous year[186]. - The game revenue from Fuzhou Tian Meng for the six months ended June 30, 2022, was HKD 102,307 thousand, contributing 4.12% to the group's total revenue[153]. User Engagement - The company has a total user base of 1.4 billion, with a monthly active user (MAU) count exceeding 33 million[17]. - The number of global registered users exceeded 540 million, with nearly 11 million monthly active users as of June 30, 2022[20]. Cost and Expenses - Research and development expenses increased by 48% to HKD 738 million compared to HKD 498 million in the same period last year[35]. - The total employee-related costs for the period reached HKD 714 million, an increase from HKD 515 million in the first half of 2021[51]. - Advertising and promotion expenses were 774,484 thousand HKD for the six months ended June 30, 2022, down from 935,264 thousand HKD in the same period of 2021, a decrease of about 17.2%[195]. Strategic Initiatives - The company plans to increase advertising and marketing investments for potential new games to drive revenue growth in the second half of 2022[15]. - The group aims to maintain a strategic focus on mobile gaming, having shifted its emphasis from client and web games since 2013[17]. - The group aims to deepen its global R&D and operational bases to drive long-term development[26]. Corporate Governance - The company is committed to maintaining high levels of corporate governance in line with shareholder interests, with ongoing reviews and improvements[70]. - The board consists of five executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of power and authority[70]. - The external auditor, KPMG, has reviewed the interim financial report in accordance with the relevant standards[68]. Shareholder Information - The company has a total of 305,970,647 shares held by Mr. Cai Zongjian, Mr. Xu Yuan, and Mr. Zhang Hong, representing 25.56% of the total shares[71]. - The company did not recommend any interim dividend for the six months ended June 30, 2022, compared to an interim dividend of HKD 0.145 per share for the same period last year[50]. Investment and Assets - The group's cash and cash equivalents stood at HKD 1.670 billion as of June 30, 2022, compared to HKD 1.950 billion as of December 31, 2021[43]. - The total assets as of June 30, 2022, were HKD 4,953,659 thousand, a decrease from HKD 5,456,152 thousand as of December 31, 2021[171]. - The company's total liabilities and equity amounted to HKD 3,769,565,000 as of June 30, 2022[176]. Structural Agreements - The company has ensured compliance with Chinese laws regarding foreign ownership in value-added telecommunications and internet content services through these agreements[139]. - The financial performance of Fuzhou Tianmeng will be consolidated into the company's financial statements as if it were a subsidiary[139]. - The company aims to enhance its operational capabilities and market presence in China through these strategic agreements[144]. Performance Reward Plans - The performance reward share plan was adopted on May 21, 2021, allowing for the conditional grant of up to 71,635,355 shares, representing approximately 6% of the total issued share capital as of that date[131]. - The shares granted under the performance reward share plan will vest in five tranches, with each tranche representing 20% of the total shares, to be assessed based on the relevant financial year performance[135].

Financial Performance - The company achieved a record revenue of HKD 6 billion in 2021, driven by the strong performance of the game "King of Kingdoms" and the addition of new titles[7]. - Total revenue for the year increased by 11% year-on-year to HKD 6.05 billion, with contributions from Asia, North America, and Europe accounting for 36%, 35%, and 23% of total revenue respectively[13]. - The company's main business profit was HKD 424.3 million, a decrease from HKD 1.15 billion in the previous year[24]. - The company recorded an annual profit of HKD 369.6 million, down from HKD 2.1 billion in the previous year[24]. - The adjusted net profit for the year was HKD 452.9 million, down from HKD 2.12 billion in the previous year[24]. - The company's revenue for the year ended December 31, 2021, was HKD 6.051 billion, an increase of 11% compared to HKD 5.464 billion for the year ended December 31, 2020[28]. - The cost of sales for the year ended December 31, 2021, was HKD 1.853 billion, up 12% from HKD 1.649 billion for the year ended December 31, 2020[29]. - Gross profit for the year ended December 31, 2021, was HKD 4.198 billion, a 10% increase from HKD 3.815 billion for the year ended December 31, 2020, with a gross margin of 69.4%[30]. - Research and development expenses for the year ended December 31, 2021, were HKD 1.254 billion, an 82% increase from HKD 690 million for the year ended December 31, 2020, representing 21% of revenue[35]. - Selling and distribution expenses for the year ended December 31, 2021, were HKD 1.953 billion, a 36% increase from HKD 1.437 billion for the year ended December 31, 2020, accounting for 32% of revenue[32]. User Engagement and Game Development - The total number of users reached nearly 1.3 billion, with monthly active users exceeding 36 million[12]. - "King of Kingdoms" has contributed a cumulative revenue of HKD 23 billion since its launch over six years ago, maintaining its strong market position[8]. - The company launched its first female-oriented game "Princess of Time," which won the "Best Casual Game of 2021" award in South Korea on Google Play[11]. - The company is committed to enhancing its game development standards and aims to deliver more high-quality games to players in the future[11]. - The company is focusing on a strategy of diversification and premiumization in its game offerings[7]. - The company plans to launch new games across various genres in 2022, including the action game "Project Yeager," which received positive feedback during testing[21]. - The company emphasizes a culture of innovation and responsiveness to player feedback to drive game development[11]. - The company has engaged in collaborations with cultural institutions to enhance player experiences, as seen with "Princess of Time"[11]. - The company emphasizes the importance of user experience in gaming, continuously innovating and updating game content to attract and retain users[186]. - The company has established localized operational teams globally to understand local cultures and gaming preferences, enhancing service to local players[187]. Research and Development - The R&D team expanded from over 500 members in 2016 to 2,000 members in 2021, focusing on cities with a high concentration of talent such as Shanghai and Chengdu[8]. - The company has implemented multiple R&D evaluation mechanisms to continuously test products in the market during development[8]. - The company has established new R&D bases in Asia to leverage opportunities arising from the pandemic and regulatory changes in the gaming industry[7]. - The company plans to expand its game product matrix through increased research and development investments[35]. Corporate Governance and Management - The company appointed Ms. Shen Jielei as CFO in June 2016, who has approximately 25 years of financial and corporate management experience[76]. - The company has a strong focus on external startups and internal incubation projects for strategic investments[77]. - The company has expanded its board with experienced directors, including Dr. Liang Hanki and Mr. Yu Dajian, who bring extensive industry experience[79][82]. - The company is committed to maintaining high levels of corporate governance, ensuring transparency and accountability to shareholders[89]. - The board currently consists of nine members, including five executive directors and three independent non-executive directors, ensuring a balance of power and authority[93]. - The company has adopted a board diversity policy to enhance overall effectiveness and ensure a variety of perspectives are represented[96]. - The independent non-executive directors play a crucial role in providing unbiased opinions on the company's strategies and performance[100]. - The board will continue to review and improve corporate governance practices to maximize shareholder returns[89]. - The company has a strong focus on internal controls and risk management as part of its governance framework[89]. Financial Position and Investments - As of December 31, 2021, the group reported a net current asset value of HKD 14.37 billion, down from HKD 17.45 billion as of December 31, 2020[44]. - The group's cash and cash equivalents amounted to HKD 19.50 billion as of December 31, 2021, compared to HKD 21.73 billion a year earlier[44]. - The group had 3,101 employees as of December 31, 2021, an increase from 2,022 employees a year earlier, with total employee-related costs reaching HKD 1.19 billion[54]. - The group experienced a total loss of HKD 54.68 million from investments for the year ended December 31, 2021, compared to a gain of HKD 949.80 million in the previous year[57]. - The group has invested a total of USD 12 million (approximately HKD 93.3 million) in Griffin, representing about 5.44% equity, with the investment cost and fair value accounting for approximately 1.97% and 2.48% of total assets, respectively[66]. Risk Management and Compliance - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to accept to achieve its strategic objectives, ensuring effective risk management and internal control systems are in place[140]. - The management team continuously monitors the group's business performance through regular meetings with departments and project teams to identify potential risks and develop response strategies[143]. - The group integrates "Environmental, Social, and Governance" (ESG) risks into its risk management framework[143]. - The board is responsible for guiding and overseeing ESG matters, having established an ESG working group directly led by the board[157]. - The company adheres to the United Nations Convention Against Corruption and has implemented an internal anti-fraud system to prevent corruption and fraud[175]. Customer Service and User Safety - The customer service center operates 24/7, ensuring timely and comprehensive support for players globally[198]. - The company has established a customer service emergency response plan to handle unexpected situations effectively[199]. - The company adheres to various local laws and regulations regarding player health and safety, including measures for underage protection in China[197]. - The company collects user feedback through social media, customer service channels, and surveys to improve game quality and service[197]. - The company has implemented measures to address inappropriate user behavior in its service agreement[194].

Financial Performance - The company's revenue for the six months ended June 30 reached HKD 3.24 billion, a 33% increase from HKD 2.43 billion in the same period last year, marking a record high for mid-year revenue [9]. - The profit for the period was HKD 577 million, a decrease of 44% compared to HKD 1.03 billion in the previous year, primarily due to fluctuations in market conditions affecting investment-related income [10]. - The main business profit, excluding investment-related income, was HKD 489 million, down 20% year-on-year, attributed to increased marketing expenditures and ongoing expansion of the R&D team [10]. - The group achieved a net profit of HKD 577 million, with investment-related income exceeding HKD 88 million, leading to a core business profit of HKD 489 million [19]. - The group's total revenue for the period reached HKD 3.237 billion, a 33% increase from HKD 2.426 billion in the same period last year, marking a historical high for mid-term revenue [22]. - The group reported a profit of HKD 576,922 for the six months ended June 30, 2021 [161]. - The company anticipates that the adverse impact on operations and financial performance from potential changes in structural contracts will not be significant [147]. User Engagement and Game Performance - The total user base of the company has reached nearly 1.2 billion, with a monthly active user count exceeding 47 million [12]. - The classic game "King of Kingdoms" achieved a record mid-year revenue with an average monthly revenue of HKD 480 million [9]. - The game "Time Princess," launched in the second half of 2020, has surpassed a monthly revenue of HKD 34 million during this period [9]. - The game "King of Kingdoms" contributed HKD 2.737 billion, accounting for 84.6% of total revenue, while "Princess of Time" generated HKD 155.581 million, representing 4.8% of total revenue [24]. - Monthly average revenue for "King of Kingdoms" was HKD 480 million, while "Princess of Time" surpassed HKD 34 million during the period [22]. - The registered users for "King of Kingdoms" reached 440 million, with MAU increasing from 13.7 million at the end of 2020 to 20 million, a historical high [14]. - "Princess of Time" registered over 9.8 million users, with MAU at 1 million as of June 30, 2021 [15]. Dividends and Share Repurchase - The company declared an interim dividend of HKD 0.145 per share, totaling approximately HKD 173 million, compared to a total of HKD 502 million in interim and special dividends in the same period last year [10]. - The board declared an interim dividend of HKD 0.145 per share, totaling approximately HKD 173 million, representing 40% of the current profit [47][48]. - The group repurchased 5,621,000 shares for a total of HKD 57 million during the period, with total repurchases and dividends amounting to HKD 230 million [48]. Expenses and Costs - The sales cost for the period was HKD 955 million, a 29% increase from HKD 743 million in the same period last year, primarily due to rising channel costs [25]. - Sales and distribution expenses for the period were HKD 935 million, an increase of 78% from HKD 524 million in the same period of 2020, representing 29% of revenue, up 7% from the previous year due to increased marketing investments in core gaming products [29]. - Research and development expenses for the period were HKD 498 million, a 74% increase from HKD 287 million in the same period of 2020, accounting for 15% of revenue, up 3% from the previous year, reflecting accelerated R&D efforts and expansion of global R&D bases [31]. Investments and Strategic Partnerships - The company has established long-term partnerships with major international platforms such as Apple, Google, Amazon, and Microsoft, enhancing its competitive advantage in the global market [12]. - The group has established strategic investment agreements with numerous global gaming companies, enhancing its product matrix and competitiveness [19]. - The group plans to continue investing in game development and operations talent while expanding strategic investments globally [20]. - The group continues to focus on internet-related investments through private equity funds to strengthen its strategic direction in the industry [50]. Corporate Governance and Ownership Structure - The board of directors is committed to maintaining high standards of corporate governance to enhance shareholder value [65]. - The company has a significant shareholder, Mr. Cai Zongjian, holding 264,297,731 shares, representing 22.14% of the total shares [72]. - The ownership structure indicates potential influence over corporate decisions due to the high percentage of shares held by key executives [72]. - The concentration of ownership among a few individuals may impact the company's strategic direction and governance [72]. Structural Contracts and Compliance - The company confirmed that there were no regulatory challenges regarding the structural contracts with Chinese authorities as of the report date [141]. - The board believes retaining structural contracts is essential for maintaining the company's position in China for further development [139]. - Independent non-executive directors will review the performance and compliance of structural contracts annually, ensuring that all revenues from Fuzhou Tianmeng and Xinhan Liaokua are retained by the group after expenses [141]. - The company has engaged KPMG as auditors to ensure compliance with structural contracts and that no dividends are distributed to equity holders of Fuzhou Tianmeng and Xinhan Liaokua [143]. Cash Flow and Financial Position - The group's net cash inflow from operating activities was HKD 541 million, down from HKD 672 million in the same period of 2020, primarily due to higher growth rates in advertising and R&D expenses compared to revenue growth [40]. - The group's net cash inflow from investment activities was HKD 552 million, mainly due to the disposal of shares in Heartbeat Limited, compared to a net cash outflow of HKD 58 million in the same period of 2020 [41]. - The company's total equity as of June 30, 2021, was HKD 3,585,891,000, reflecting a decrease from HKD 3,636,674,000 at the beginning of the year [164]. - The company reported a decrease in cash generated from operations due to an increase in income tax paid, which was HKD 100,778,000 compared to HKD 2,362,000 in the previous year [166].

Financial Performance - Global gaming market revenue reached $174.9 billion in 2020, a year-on-year growth of 19.6%[35] - Total revenue for the year ended December 31, 2020, was $704.1 million, a 5% increase from $667.6 million in 2019[49] - Net profit for 2020 reached $270.2 million, a 64% increase compared to $164.8 million in 2019, driven by strong performance in gaming and global investment[49] - Revenue from the classic game "King of Kingdoms" was $603.7 million, accounting for 85.7% of total revenue, up from 80.7% in 2019[52] - Investment income surged to $127 million, a 381% increase year-over-year, reflecting successful investments in mobile internet and gaming sectors[48] - The group's gross profit for the year ended December 31, 2020, was $491.7 million, an increase of 6% from $462.8 million for the year ended December 31, 2019, primarily due to the growth in revenue from "King of Kingdoms"[54] - The group's gross margin for the year ended December 31, 2020, was 69.8%, up 0.5% from 69.3% for the year ended December 31, 2019, mainly due to reduced server costs[54] - Other net income for the year ended December 31, 2020, was $131.4 million, a 303% increase from $32.6 million for the year ended December 31, 2019, primarily from gains on investments[57] - Selling and distribution expenses for the year ended December 31, 2020, were $185.1 million, a 12% increase from $164.9 million for the year ended December 31, 2019, representing 26% of revenue, up from 25%[58] - Research and development expenses for the year ended December 31, 2020, were $88.9 million, a decrease of 4% from $92.5 million for the year ended December 31, 2019, accounting for 13% of revenue, down from 14%[60] User Engagement and Growth - Monthly active users for IGG increased from 14.6 million to 39 million, marking a significant growth[35] - Monthly active users (MAU) reached nearly 39 million, with total registered users exceeding 1 billion globally[41] - Core game "King of Kingdoms" achieved a historical peak monthly revenue of $66 million, reversing a downward trend from previous years[35] - The new game "Fantasy Bookland" generated nearly $3 million in revenue within its first month of launch in January 2021[35] - The new game "Fantasy Bookland" launched in August 2020, achieved nearly $3 million in revenue by January 2021, with over 6 million registered users[46] - IGG has established localized operational teams globally to enhance player service and marketing strategies, adapting to local cultures and preferences[186] - In 2020, IGG's customer service center handled over 1,077,000 inquiries through game backend, 537,000 online chat interactions, and 564,000 email consultations[191] - The internal quality inspection rate for customer service in 2020 reached 99%, with over 90% of players expressing satisfaction with the service[193] Strategic Investments and Development - IGG established R&D teams in Beijing, Shanghai, and Chengdu to enhance its development capabilities in the Chinese market[38] - The company signed strategic investment agreements with dozens of gaming companies globally to enhance product offerings[38] - IGG plans to continue diversifying its game portfolio, focusing on SLG genres while exploring new game types[35] - The company plans to continue expanding its strategic investments globally and enhance its product line in the gaming sector[48] - The group acquired 27 associates and two joint ventures for approximately $50.1 million during the year ended December 31, 2020[70] - The company has established strategic investment agreements with dozens of gaming companies worldwide to inject new products and momentum into its operations[48] - The company has been actively expanding its management team with experienced professionals from various sectors, enhancing its operational capabilities[92][95][96] Corporate Governance and Compliance - The company has a commitment to compliance and governance, as evidenced by the qualifications of its financial leadership[95] - The company has a board of directors consisting of nine members, including five executive directors and three independent non-executive directors, ensuring a balanced power structure[109] - The company has complied with the listing rules by appointing at least three independent non-executive directors, with independent directors making up one-third of the board[109] - The chairman and CEO roles are currently held by the same individual, which the board believes provides strong leadership and effective execution of company plans[107] - The company is committed to maintaining high standards of corporate governance to create value for shareholders[107] - The board is responsible for overseeing all significant matters, including policy formulation, strategy development, and financial performance monitoring[109] - The company has established good corporate governance practices to ensure transparency and accountability to shareholders[107] - The board regularly reviews the responsibilities and performance of the management team to ensure alignment with company objectives[109] - The company has a commitment to risk management and internal controls as part of its corporate governance framework[107] - The board adopted a diversity policy on September 19, 2013, updated on December 29, 2018, to ensure necessary knowledge and experience for effective governance[110] Social Responsibility and Sustainability - The company is currently developing a sustainable development policy to enhance governance, business operations, and social responsibility[178] - IGG INC conducts regular training on anti-fraud policies to mitigate risks and ensure compliance[180] - The company actively engages with stakeholders to understand their expectations and improve its sustainability efforts[167] - IGG's social responsibility report covers its performance in economic, social, and environmental aspects for the year 2020[160] Intellectual Property and Data Protection - Intellectual property protection is a priority for IGG, with dedicated personnel and global agencies managing IP rights[200] - The company has a 24/7 alert system for IP infringement and a rapid response mechanism for violations[200] - IGG conducts regular global trademark monitoring to prevent unauthorized registrations of similar trademarks[200] - The company emphasizes the importance of respecting others' intellectual property and ensures original content creation[200] - IGG emphasizes user data and privacy protection, adhering to global regulations such as GDPR and CCPA[198] - The company has appointed data protection officers and external consultants to ensure compliance with privacy regulations[198] - IGG provides training to employees on information security and privacy policies[198] - The company has established internal mechanisms for information management and access control to protect customer data[198] - IGG's privacy policy is publicly available, detailing the collection and use of user data[198]

Financial Performance - The company's revenue for the six months ended June 30 was $312.3 million, a decrease of 12% compared to $354.7 million in the same period last year, but showing signs of recovery compared to $313.0 million in the second half of 2019[23]. - Net profit for the period was $132.8 million, an increase of 88% from $70.7 million in the same period last year, and up 41% from $94.1 million in the second half of 2019[24]. - Adjusted net profit was $134.3 million, an increase of 84% year-on-year and up 40% from the previous half-year[24]. - The gross profit for the period was $216.7 million, a decrease of 12% from $246.2 million in the same period of 2019, maintaining a gross margin of 69%[40]. - Operating profit increased significantly to $148.560 million, compared to $85.134 million in the previous year, representing a growth of 74%[157]. - Profit before tax for the six months was $147.682 million, up from $84.050 million, marking a 75% increase year-over-year[157]. - Basic earnings per share rose to $0.1084 from $0.0562, reflecting an increase of 93%[157]. - Total comprehensive income for the period was $130.111 million, compared to $69.467 million in the same period last year, an increase of 87%[160]. User Engagement and Market Presence - The total registered user base reached 720 million, reflecting the company's strong market presence and user engagement[26]. - Monthly revenue from the flagship game "King of Kingdoms" rebounded to $54 million during the period, reaching a historical high of over $60 million in July[23]. - The monthly active users (MAU) for the game "King of Kingdoms" exceeded 13 million, with a revenue increase of 18% quarter-on-quarter in Q2 2020, reaching a historical high of over $60 million in July 2020[1]. - Revenue from Asia, North America, and Europe accounted for 40%, 30%, and 24% of total revenue, respectively[27]. Strategic Focus and Partnerships - The company has shifted its strategic focus to mobile gaming since 2013, now offering products in 23 different languages worldwide[26]. - The company has established long-term partnerships with major platforms such as Apple, Google, and Amazon, enhancing its competitive advantage in the global market[26]. - The pandemic accelerated the rise of the "stay-at-home economy," benefiting the company's gaming business during the first half of 2020[27]. Expenses and Cost Management - The sales and distribution expenses decreased by 32% to $67.5 million, with the ratio to revenue dropping from 28% in 2019 to 22% in 2020[41]. - The group’s R&D expenses decreased by 14% to $36.9 million, maintaining a ratio of 12% to revenue[42]. - Employee costs totaled $33,786,000 for the six months ended June 30, 2020, compared to $34,914,000 for the same period in 2019, reflecting a decrease of 3.2%[184]. - Channel costs for the six months ended June 30, 2020, were $87,755,000, down from $99,245,000 in 2019, indicating a reduction of 11.6%[186]. Cash Flow and Investments - The net cash generated from operating activities for the period was $86.7 million, up from $46.1 million in the same period of 2019, primarily due to reduced advertising and R&D expenses[50]. - Cash used in investing activities was $7.4 million, a decrease from $28.3 million in the same period of 2019, mainly due to investments in mobile internet gaming companies and fixed assets[51]. - Cash used in financing activities amounted to $45.5 million, compared to $35 million in the same period of 2019, primarily due to the payment of interim dividends and share buybacks[52]. - The company incurred a net cash outflow from investing activities of $(7,441) thousand for the six months ended June 30, 2020, compared to $(28,283) thousand in the same period of 2019, indicating improved cash flow management[170]. Shareholder Returns and Dividends - The company declared an interim dividend of HKD 0.251 per share, totaling approximately $79.7 million, compared to HKD 0.130 per share in the same period last year[24]. - The total dividend declared for the period was approximately $79.7 million, representing a payout of 71% of the current profit, compared to 39% in the same period of 2019[57]. - The company repurchased ordinary shares amounting to $14,060 thousand during the six months ended June 30, 2020, compared to $6,666 thousand in the same period of 2019, indicating a significant increase in share buybacks[170]. Corporate Governance and Management - The Board believes that effective corporate governance is crucial for creating more value for shareholders[67]. - The Group's Chairman and CEO roles are currently not separated, which the Board believes benefits the Group's business prospects and management[67]. - The Group has adopted a standard code regarding securities trading by directors, confirming compliance during the reporting period[67]. Structural Contracts and Compliance - The structural contracts include eight agreements, ensuring compliance with Chinese regulations regarding foreign investment in internet services[129]. - The company confirmed that there have been no challenges from Chinese authorities regarding the structural contracts as of the report date[145]. - The company has taken measures to ensure the effective implementation of structural contracts and compliance with regulations[145]. - The company aims to qualify for the acquisition of 100% equity in Fuzhou Tianmeng when restrictions on foreign ownership in value-added telecom services are relaxed[150]. Stock Options and Incentive Plans - The company has granted stock options to various executives, with a total of 6,400,000 options granted to senior management as of June 30, 2020[88]. - The stock options granted to executives are intended to align their interests with the company's success and increase their equity stake[85]. - The company adopted a share option plan on September 16, 2013, allowing eligible individuals to acquire personal equity in the company, aimed at incentivizing performance and retaining talent[91]. - A total of 1,881,000 reward shares were granted on May 6, 2020, under the share incentive plan[116].

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].

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].