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]

Core Viewpoint - IGG has experienced a significant turnaround in its financial performance, with total revenue for 2024 reaching HKD 57.37 billion (approximately RMB 53.6 billion), a year-on-year increase of about 9%, and net profit soaring to HKD 5.8 billion (approximately RMB 5.4 billion), marking a staggering year-on-year growth of approximately 700% [1][2][4]. Financial Performance - For the fiscal year ending December 31, 2024, IGG reported total revenue of HKD 5,737,114, up from HKD 5,265,911 in 2023 [2]. - The cost of sales decreased to HKD 1,126,244 from HKD 1,346,854, while net profit rose to HKD 582,580 from HKD 73,053 [2]. - Adjusted net profit for 2024 was HKD 607,011, compared to HKD 114,987 in 2023 [2]. Product Development and Diversification - IGG has launched two key products, "Tycoon Master" and "Frozen War," and tested nearly 40 new games over the past year, indicating a robust pipeline of new offerings [1][2][16]. - The company has successfully diversified its revenue streams, with the contribution from its flagship game "King of Kingdoms" dropping from 80% in 2022 to 45% in 2024, thanks to the performance of new titles [13][14]. Market Strategy and Future Outlook - IGG's strategy includes a focus on stable growth and long-term profitability, with a cautious approach to new business areas such as APP and AI [34]. - The company aims to maintain a balanced revenue structure while exploring new opportunities for growth, as evidenced by the anticipated success of upcoming titles like "Rebirth of Glory" [34][36].