IGG(00799)2025-03-26 12:09Revenue and Profit Growth - In 2024, the revenue from the new games "Doomsday: Last Survivors" and "Viking Rise" reached approximately HKD 1 billion and HKD 700 million respectively, contributing to a total revenue increase of 67% year-on-year, with their combined revenue share rising from 32% in 2023 to 49% in 2024[11]. - The long-standing game "King of Kingdoms" generated nearly HKD 2.6 billion in revenue this year, maintaining a stable income stream for the company after nine years of operation[12]. - The APP business achieved approximately 11 billion HKD in revenue, supported by a user base of 62 million monthly active users, further solidifying the company's diversified growth strategy[12]. - The company reported a significant profit increase of 697% year-on-year, reaching HKD 580 million in 2024, following a profit of HKD 73 million in 2023[15]. - In 2024, IGG's revenue increased by 9% year-on-year to HKD 5.74 billion, driven by new games and stable APP business growth[19]. - The contribution from new games "Doomsday: Last Survivors" and "Viking Rise" along with APP business accounted for 49% of total revenue, up from 32% in 2023[19]. - The group achieved a profit of HKD 582.6 million in 2024, a significant increase of 697% year-on-year, with core business profit soaring by 3,626% to HKD 655.5 million[20]. Game Performance - "King of Kingdoms" celebrated its 9th anniversary with 740 million registered users and over 9 million monthly active users[21]. - "Doomsday: Last Survivors" saw a 50% year-on-year revenue growth, attracting 73 million players[22]. - "Viking Rise" experienced a 66% year-on-year revenue increase, with over 40 million players engaged[23]. - The gaming business revenue breakdown includes: "Kingdoms Rise" at HKD 2.589 billion (45.1%), "Doomsday: Last Survivors" at HKD 1.021 billion (17.8%), and "Viking Rise" at HKD 680 million (11.8%) for the year ended December 31, 2024[36]. Research and Development - The introduction of innovative gameplay features and AI-assisted development has enhanced product competitiveness and reduced R&D costs[13]. - Research and development expenses for the year ended December 31, 2024, were HKD 787 million, a 16% decrease from HKD 935 million, representing 14% of revenue, down from 18%[42]. - The company plans to launch a series of new strategy games in 2025, leveraging its strengths in the strategy game sector to drive further growth[15]. - The company plans to launch two major strategy games and one casual game in 2025, aiming for sustained growth in gaming and APP business[30]. Financial Position and Cash Flow - The company's revenue for the year ended December 31, 2024, was HKD 5.737 billion, an increase of 9% compared to HKD 5.266 billion for the year ended December 31, 2023[35]. - Gross profit for the year ended December 31, 2024, was HKD 4.611 billion, an 18% increase from HKD 3.919 billion in the previous year, with a gross margin of 80%, up from 74%[38]. - The company reported a net cash inflow from operating activities of HKD 1.121 billion for the year ended December 31, 2024, compared to HKD 128 million in the previous year[51]. - The company's cash and cash equivalents increased to HKD 2.446 billion as of December 31, 2024, from HKD 1.475 billion a year earlier[49]. - The income tax expense for the year ended December 31, 2024, was HKD 97 million, a 304% increase from HKD 24 million in the previous year[46]. - The company’s capital debt ratio was 29.3% as of December 31, 2024, compared to 26.0% a year earlier[49]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, ensuring transparency and accountability to shareholders[88]. - The board currently does not separate the roles of chairman and CEO, with Mr. Cai Zongjian serving in both capacities, which the board believes provides strong leadership[89]. - The company has adhered to the corporate governance code, except for the provision C.2.1 regarding the separation of the roles of chairman and CEO[88]. - The board consists of five executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of power and authority[89]. - The company has appointed at least three independent non-executive directors, meeting the requirements of the listing rules[92]. - The board diversity policy was first adopted in September 2013 and reviewed annually, with the latest review in March 2022[95]. - The company has established a dividend policy aimed at providing consistent dividends to shareholders while preserving liquidity for future growth opportunities[105]. Risk Management and Compliance - The company has established a risk management and internal control system to ensure effective management of business risks[127]. - The company monitors various indicators such as game data, player feedback, and employee turnover rates to identify potential risks[133]. - The company has established a comprehensive risk management framework that incorporates ESG factors, with the board responsible for overseeing risk management and internal control effectiveness[157]. - The company emphasizes the importance of information security and user privacy protection as a key expectation from its users[159]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an ESG working group led by the board to effectively implement and oversee ESG matters[145]. - The company aims to ensure that new office buildings meet China's Green Building Evaluation Standards and promotes energy-saving and waste reduction measures[147]. - The company received the "Annual Corporate Governance Award" at the ESG100 Green Development Awards in November 2024, highlighting its integration of corporate governance and sustainable development practices[153]. - The company actively participates in public welfare activities and charitable donations while leveraging the influence of games to fulfill social responsibilities[147]. Supplier and Procurement Management - The company has approximately 400 major suppliers, with 76% located in Asia, 13% in North America, and 10% in Europe[180]. - The company conducts regular audits of supplier performance to ensure product and service quality, utilizing various assessment indicators[180]. - The company has established a procurement management system to ensure transparency and fairness in procurement processes[180]. Customer Engagement and Support - The company has a customer service center that operates 24/7, handling over 959,000 inquiries and more than 640,000 online chat interactions in 2024, ensuring timely and accurate support[197]. - The company actively collects player feedback through various channels to improve product quality and enhance player engagement[194]. - The company is continuously optimizing customer service and quality inspection systems to enhance service efficiency and quality[198].