IGG(00799) - 2019 - 中期财报

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].