IGG(00799) - 2023 - 中期财报

Financial Performance - For the first half of 2023, IGG reported revenue of HKD 2,499,020, a year-on-year increase of 0.5% from HKD 2,485,739 in 2022[6]. - The company recorded a net loss of approximately HKD 359,798 for the first half of 2023, with a main business loss of HKD 360,765[6]. - Total revenue for the period was HKD 2.499 billion, a 1% increase year-on-year and a 19% increase compared to the second half of 2022[15]. - Gross profit for the period was HKD 1.806 billion, with a gross margin of 72%, up from 68% year-on-year[17]. - The company reported a total comprehensive loss of HKD 404,783 for the six months ended June 30, 2023, compared to a loss of HKD 171,771 for the same period last year[117]. - The company incurred a total loss of HKD 359,798 thousand for the period, which is a substantial increase from the loss of HKD 171,771 thousand reported in the same period last year[111]. - The company reported a pre-tax loss of HKD 359,798,000 for the six months ended June 30, 2023, compared to a loss of HKD 171,771,000 for the same period in 2022, representing an increase in loss of 109.5%[136]. Revenue Sources - The revenue distribution for the period was 44% from Asia, 26% from Europe, and 25% from North America[9]. - Kingdom Age contributed over HKD 1.6 billion in revenue during the period, accounting for 66.3% of total revenue[16]. - Doomsday: Last Survivors generated over HKD 82 million in revenue in July, with a total of 2.2 million players[12]. - Viking Rise achieved over HKD 70 million in revenue in May, following its launch in December 2022[11]. - Revenue from mobile games amounted to HKD 2,309,934,000, with the top titles being "King of Kingdoms" at HKD 1,657,471,000 and "Doomsday: Last Survivors" at HKD 249,850,000[126]. - Revenue from the app and mobile advertising aggregation platform business was HKD 189,086,000, a substantial increase from HKD 47,210,000 in the previous year[126]. User Metrics - IGG's total user base exceeded 1.6 billion, with monthly active users reaching over 38 million[8]. - The APP business experienced significant growth, with monthly revenue increasing from over HKD 12 million at the beginning of the year to over HKD 63 million in July, with registered users exceeding 300 million[12]. Expenses and Cost Management - R&D and administrative expenses were reduced by 30% year-on-year due to the integration of AI-generated content technology[7]. - Sales and distribution expenses increased by 85% to HKD 1.521 billion due to concentrated promotion of new games[19]. - R&D expenses decreased by 32% to HKD 500 million, representing 20% of total revenue[21]. - The total employee-related costs for the period amounted to HKD 541 million, down from HKD 714 million in the same period last year, with the number of employees decreasing to 2,165 from 2,763[31]. Cash Flow and Assets - The group reported a net current asset value of HKD 839 million, down from HKD 1.147 billion as of December 31, 2022, with a capital debt ratio of 34.6% compared to 25.4% in the previous year[24]. - The group had cash and cash equivalents of HKD 1.481 billion as of June 30, 2023, a decrease from HKD 1.582 billion as of December 31, 2022[24]. - The net cash outflow from operating activities during the period was HKD 44 million, an improvement from HKD 140 million in the same period last year, primarily due to increased advertising expenses for new game promotions[25]. - The net cash outflow from investment activities was HKD 13 million, with major cash outflows related to the construction of the office building in Fuzhou amounting to HKD 47.9 million[26]. Corporate Governance - The group is committed to maintaining high standards of corporate governance, with a focus on transparency and accountability to shareholders[40]. - The board of directors includes five executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of power and authority[40]. - The group has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are currently held by the same individual[40]. Shareholder Information - The company holds a total of 295,559,643 shares, representing approximately 24.67% ownership[43]. - The beneficial owner Cai Zongjian holds 746,000 shares directly and has rights to 193,752,027 shares in Duke Online, totaling 194,498,027 shares[44]. - The company has not declared any interim dividends for the six months ended June 30, 2023, consistent with the previous year[30]. Strategic Initiatives - The company is optimistic about future performance, driven by the launch of two major new games and the expansion of the APP business[14]. - The company is focused on expanding its gaming distribution network in China through these structural agreements[98]. - The company plans to acquire full equity of Fuzhou Tianmeng and Xinhan Liaohuo if regulations allow in the future[106]. Structural Contracts and Regulatory Compliance - The original structural contract with Fuzhou Tianmeng was terminated, and a new structural contract was established, allowing for the financial performance of Fuzhou Tianmeng to be consolidated as if it were a subsidiary of the company[96]. - The company confirmed that there have been no regulatory inquiries from Chinese authorities regarding the structural contracts[104]. - The company has engaged KPMG as auditors to ensure compliance with structural contracts and that no dividends have been paid to equity holders of Fuzhou Tianmeng and Xinhan Liaohuo[105].