Group 1 - Tencent's tactical shooting game "Delta Operation" has topped the iOS sales chart after 356 days since its launch, following the "Blazing Fire" season update [1] - Initially, the game had a weak performance on mobile, ranking around 50th in the iOS sales chart at the start of 2024, but stabilized in the top 20 by early 2025, reaching the top 10 in May [1] - The game has established a clear user behavior loop, with mobile catering to casual play and resource gathering, while the PC version focuses on deep tactical experiences, creating a synergistic effect between platforms [1] Group 2 - miHoYo's 3D action otome game "Love and Deep Space" has announced the revival of its first limited event "Unknown Time," running from September 18 to September 27, a year and a half after its initial launch [2] - The revival maintains a 75% chance for three limited five-star characters in the gacha system and includes a targeted wish feature, enhancing the event's scarcity and appeal to both returning and new players [2] - The event's exclusive discount packages and targeted wish mechanism are expected to create a short-term spike in player spending [2] Group 3 - IGG has launched its new game "Mafia Mobile" globally in over 170 countries, aiming to innovate in a competitive overseas market through a blend of strategy and simulation elements [3] - The company is diversifying its product lineup, reducing reliance on its flagship title "King of Kingdoms," and "Mafia Mobile" is expected to complement existing products and strengthen its position in niche markets [3]

Core Viewpoint - IGG's H1 2025 financial report shows stable performance with slight declines in revenue and net profit, indicating a need for new hit games to sustain growth [1][2][14]. Financial Performance - Revenue for H1 2025 was HKD 2.72 billion (approximately RMB 2.5 billion), a year-on-year decrease of 0.51% [1][2]. - Net profit was HKD 325 million (approximately RMB 298 million), down 1.9% year-on-year but up 29% quarter-on-quarter [1][2]. - The cost of sales decreased significantly from HKD 580 million to HKD 464 million [2]. Business Segments - The company operates in three main segments: mobile games, mobile applications, and other businesses [3]. - The mobile application segment generated HKD 530 million (approximately RMB 486 million) in H1 2025, a 30% increase year-on-year, contributing about 20% to total revenue [3]. - Other business revenue was HKD 160 million (approximately RMB 147 million), accounting for 6% of total revenue, down 15.8% year-on-year [3]. Key Games Performance - "King of Kingdoms," IGG's flagship game, generated HKD 1.15 billion (approximately RMB 1.06 billion) but saw a 14.2% year-on-year decline in revenue, dropping its contribution from 49% to 42% of total revenue [7][9]. - Newer titles "Doomsday: Last Survivors" and "Viking Rise" contributed HKD 520 million (approximately RMB 477 million) and HKD 360 million (approximately RMB 330 million) respectively, showing growth but not enough to offset declines from "King of Kingdoms" [9][13]. New Game Launch - The newly launched game "Fate War" has shown promising initial performance with around 1.57 million downloads in its first 18 days and a revenue of approximately HKD 9.2 million (around RMB 8.5 million) [27][33]. - Despite its initial success, the game faces challenges in sustaining high revenue levels due to a lack of ongoing large-scale marketing efforts [39][50]. Strategic Direction - IGG is actively testing numerous new games each year to identify potential hits, with a focus on SLG and other genres [52][61]. - The company aims to balance its established game portfolio with innovative new titles to capture a broader audience and adapt to market trends [68].

Core Insights - IGG (00799) reported a revenue of HKD 2.721 billion for the six months ending June 30, 2025, representing a year-on-year decrease of 0.51% [1] - The profit attributable to equity shareholders was HKD 322 million, down 2.85% year-on-year, with basic earnings per share at HKD 0.2805 [1] - The company proposed an interim dividend of HKD 0.083 per share and a special dividend of HKD 0.056 per share [1] Revenue Breakdown - The core gaming products, "Doomsday: Last Survivors" and "Viking Rise," contributed approximately HKD 520 million and HKD 360 million, respectively [1] - The APP business generated revenue of HKD 530 million, with these three segments collectively accounting for 52% of total revenue [1] - The classic product "King of Kingdoms," which has been online for nine years, contributed significant revenue of approximately HKD 1.15 billion [1] Geographic Revenue Distribution - Revenue distribution by region showed that Asia accounted for 42%, Europe for 35%, and North America for 19% of the total revenue [1] Profitability and Expenses - The group's profit for the first half of 2025 was HKD 320 million, roughly flat compared to the same period last year, but showed a 29% increase quarter-on-quarter [2] - Marketing expenses increased by 10% year-on-year, aimed at deepening engagement with both new and existing users [2] - The main business profit (non-IFRS measure) contributed approximately HKD 340 million, while the investment business recognized an unrealized loss of about HKD 20 million due to fair value changes [2] Future Outlook - Moving into the second half of 2025, the company aims to continue driving growth in its gaming and APP businesses while maintaining long-term stable profitability [2] - The company emphasizes its commitment to evolving with the times while staying true to its core values, focusing on global market development and operations [2]

Core Insights - IGG reported a total revenue of HKD 2.72 billion for the first half of 2025, showing stable year-on-year performance [1] - The company declared an interim dividend of HKD 0.139 per share, totaling approximately HKD 161 million, which represents 50% of the profit for the period [1] Financial Performance - The group's gross profit for the period was HKD 2.257 billion, an increase of 5% compared to HKD 2.155 billion in the same period of 2024 [2] - The gross profit margin improved to 83%, up from 79% year-on-year, primarily due to optimized operating costs and increased revenue from high-margin APP business [2] - The profit for the period was HKD 320 million, roughly flat compared to the same period last year, but showed a 29% increase quarter-on-quarter [1] Business Segments - Core gaming products contributed approximately HKD 5.2 billion and HKD 3.6 billion from "Doomsday: Last Survivors" and "Viking Rise," respectively [1] - The APP business generated revenue of HKD 530 million, a year-on-year growth of 30%, and accounted for about 20% of total revenue [2] - The APP business achieved over 73 million monthly active users, a 79% increase compared to the previous year [2] Shareholder Returns - The total amount for dividends and share buybacks was approximately HKD 350 million, representing 61% of the period's profit [1] - The company repurchased shares worth about HKD 35 million, which is 11% of the profit for the period [1]

Core Insights - IGG reported a revenue of HKD 2.721 billion for the six months ending June 30, 2025, representing a year-on-year decrease of 0.51% [1] - The profit attributable to equity shareholders was HKD 322 million, down 2.85% year-on-year, with basic earnings per share at HKD 0.2805 [1] - The company proposed an interim dividend of HKD 0.083 per share and a special dividend of HKD 0.056 per share [1] Revenue Breakdown - The core gaming products, "Doomsday: Last Survivors" and "Viking Rise," contributed approximately HKD 520 million and HKD 360 million, respectively [1] - The APP business generated revenue of HKD 530 million, with the three main projects accounting for 52% of total revenue [1] - The classic product "King of Kingdoms," which has been online for nine years, contributed significant revenue of approximately HKD 1.15 billion [1] Geographic Revenue Distribution - Revenue from Asia, Europe, and North America accounted for 42%, 35%, and 19% of total revenue, respectively [1] Profitability and Expenses - The profit for the period was HKD 320 million, roughly flat compared to the previous year, but showed a 29% increase quarter-on-quarter [2] - Marketing expenses increased by 10% year-on-year, aimed at enhancing user engagement and extending product lifecycle [2] - The main business profit (non-IFRS measure) contributed approximately HKD 340 million, while investment activities recognized an unrealized loss of about HKD 20 million due to fair value changes [2] Future Outlook - Moving into the second half of 2025, the company aims to continue growth in gaming and APP businesses, focusing on long-term stable profitability [2] - IGG emphasizes its commitment to global market development and innovation in mobile internet products, adhering to its corporate culture of "keeping pace with the times while staying true to its original intention" [2]

Core Insights - IGG has become more conservative after experiencing significant fluctuations in its business performance, with a revenue of over 5.7 billion HKD (approximately 5.2 billion RMB) last year, marking a 9% year-on-year growth, and a profit increase of 697% to 580 million HKD, compared to previous losses [1][27] - Despite the recovery, IGG's competitive edge is diminishing, as evidenced by its drop from around 15th to over 20th place in the global revenue rankings by Sensor Tower [1] Product Strategy - IGG maintains a testing rhythm of about 30 new products annually, shifting its focus back to the SLG genre, moving away from niche categories [3][4] - Over half of the new products tested in the past two years are SLG games, with three major upcoming titles: SLG "Project PSS," casual social game "Tycoon Master," and SLG "Frozen War" [4][20] - "Project PSS" is a significant investment, building on the previous title "Rebirth of Glory," which incorporates elements from top competitors while adding RTS features [4][5] Game Development - "Rebirth of Glory" features enhanced production mechanics and a more complex gameplay structure compared to its competitors, focusing on resource management and strategic gameplay [5][6] - IGG is also exploring various SLG gameplay innovations, including titles like "Dawn Gathering" and "Myco Citadel," which incorporate different thematic elements and gameplay styles [8][10] - The company is testing new SLG products that blend RPG elements and casual gameplay, indicating a shift towards integrating lighter mechanics into traditional SLG frameworks [18][20] Financial Performance - Despite last year's recovery, the revenue from the gaming segment has slightly declined due to the drop in income from "King of Kingdoms," indicating that the gaming business has not fully returned to growth [27][30] - The APP business has seen significant growth, with monthly active users increasing from 9.5 million in 2023 to 62 million in 2024, contributing to a revenue increase from 100 million HKD in 2022 to 1.09 billion HKD in 2024 [32] Market Position - IGG's anxiety about its market position is evident, as it struggles to find new hits that can surpass "King of Kingdoms," leading to a more cautious approach in product development [33] - The company is focusing on creating reliable products rather than taking risks on innovative but uncertain concepts, reflecting a strategic shift in response to market pressures [33]