IGG(00799) - 2023 - 中期业绩

Financial Performance - For the six months ended June 30, 2023, IGG Inc reported revenue of HKD 2,499,020, an increase of 0.5% compared to HKD 2,485,739 in the same period of 2022[7]. - The group recorded a net loss of HKD (359,798) for the period, compared to a loss of HKD (171,771) in the previous year, primarily due to ongoing investments in new game development[7]. - The group's revenue for the first half of 2023 reached HKD 2.499 billion, a 1% increase year-on-year and a 19% increase compared to the second half of 2022[16]. - The gross profit for the period was HKD 1.806 billion, a 6% increase from HKD 1.699 billion in the same period last year, resulting in a gross margin of 72%[18]. - 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 359,798 in the previous period[118]. Revenue Sources - The classic game "King of Kingdoms" contributed over HKD 1.6 billion in revenue during the first half of 2023, demonstrating stable performance after seven years of operation[7]. - The new games "Doomsday: Last Survivors" and "Viking Rise" achieved monthly revenues exceeding HKD 70 million, with "Doomsday: Last Survivors" reaching a record of HKD 82 million in July[7]. - The new games "Doomsday: Last Survivors" and "Viking Rise" contributed approximately 35% to the group's revenue, with "Doomsday: Last Survivors" generating HKD 249.85 million and "Viking Rise" generating HKD 122.88 million in the first half of 2023[10][17]. - Revenue from mobile games was HKD 2,309,934,000, with a notable decrease in revenue from "Kingdoms of Camelot" to HKD 1,657,471,000 from HKD 2,008,898,000 year-over-year[127]. Cost Management - The cost of sales decreased to HKD (693,307), down from HKD (787,102) year-on-year, indicating improved cost management[7]. - R&D and administrative expenses were reduced by 30% year-on-year, reflecting effective cost control measures[8]. - Administrative expenses for the period were HKD 159 million, a decrease of 19% compared to HKD 197 million in the same period of 2022, representing 6% of revenue, down from 8%[21]. - R&D expenses for the period were HKD 500 million, a significant decrease of 32% from HKD 738 million in the same period of 2022, accounting for 20% of revenue, down from 30%[22]. User Engagement - IGG Inc has a total user base exceeding 1.6 billion, with monthly active users (MAU) surpassing 38 million, indicating strong market presence[9]. - The total registered users for the APP business exceeded 300 million, with nearly 20 million monthly active users as of June 30, 2023[13]. - The total number of registered users for "Kingdoms of the World" reached 640 million, with nearly 10 million monthly active users as of June 30, 2023[11]. Strategic Outlook - The company is optimistic about future performance, expecting growth from the expansion of new games and APP business[8]. - The group plans to continue leveraging AIGC technology to enhance operational efficiency and reduce costs in future developments[15]. - The company plans to continue focusing on mobile game development and expanding its customer base in international markets, leveraging its diverse portfolio[126]. Financial Position - As of June 30, 2023, the group had net current assets of HKD 839 million, down from HKD 1.147 billion as of December 31, 2022, with a debt-to-asset ratio of 34.6%[25]. - The group had cash and cash equivalents of HKD 1.481 billion as of June 30, 2023, down from HKD 1.582 billion as of December 31, 2022[25]. - The company reported a total of HKD 5,783,000 in the balance of joint ventures as of June 30, 2023, down from HKD 7,599,000 as of December 31, 2022[149]. Shareholder Information - The company has a total of 295,559,643 shares held by various beneficial owners, representing 24.67% of the total shares[44]. - The performance shares that failed to meet vesting conditions totaled 7,688,862 shares for Mr. Cai and 1,289,437 shares for Mr. Zhang[46]. - The company has established an audit committee to oversee financial reporting and risk management, composed entirely of independent non-executive directors[96]. Regulatory and Compliance - The company is subject to Chinese laws that restrict foreign ownership in value-added telecommunications services and prohibit foreign provision of internet content and information services[96]. - The company confirmed that there have been no regulatory inquiries from Chinese authorities regarding the structural contracts as of the report date[104]. - The company has retained independent non-executive directors to review the performance and compliance of the structural contracts annually[105]. Investment and Acquisitions - The company is exploring potential acquisitions to enhance its product offerings and market presence, with a focus on companies that align with its strategic goals[194]. - The company plans to acquire full equity of Fuzhou Tianmeng and Xinhan Liao Kuo if regulations allow in the future[107]. - The company has ongoing commitments for the construction of self-use office buildings amounting to HKD 245,847 as of June 30, 2023[189].