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 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]