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].

Core Insights - The global gaming industry has undergone structural adjustments over the past year, with increasing competition and rising user acquisition costs, leading to challenges in content innovation and cost control for game developers [1] - IGG reported a significant financial performance, with a 9% year-on-year revenue growth to HKD 5.74 billion and a staggering 697% increase in net profit to HKD 580 million, alongside a planned dividend payout [1][4] Financial Performance - The company achieved an operating cash flow of HKD 1.12 billion and increased cash reserves to HKD 2.25 billion, providing ample resources for new product promotions [4] - The basic earnings per share reached HKD 0.51, with a total dividend payout ratio of 30% for the year [1] Product Strategy - IGG's long-term operation of classic products, such as "King of Kingdoms," which generated HKD 2.59 billion in revenue, remains a strong competitive advantage [6] - New games like "Doomsday: Last Survivors" and "Viking Rise" have shown differentiated success, with revenues of HKD 1.02 billion and HKD 680 million respectively, reflecting year-on-year growth of 50% and 66% [6] Future Game Releases - The company plans to launch two major strategy games, "Frozen War" and the PSS project, along with a casual game "Tycoon Master" in 2025, with over 20 new games in development [7][11] - "Frozen War" is expected to have significant potential based on initial testing data, while the PSS project aims to attract a broader audience, particularly female players [7][14] AI Integration and Global Strategy - IGG has integrated AI technology into its operations, resulting in a 16% reduction in R&D costs to HKD 790 million, enhancing operational efficiency [9] - The company's global monthly active users surpassed 62 million, contributing HKD 1.09 billion in revenue from its app business, which represents 19% of total revenue [10] Valuation and Market Position - IGG's current dynamic price-to-earnings ratio of 7.5 is significantly lower than the industry average, indicating a mismatch between valuation and growth potential [11] - The company aims to optimize its revenue structure and improve operational leverage by leveraging its cash reserves and new product launches [11][22]

Core Viewpoint - IGG (00799) reported significant growth in its annual performance for the year ending December 31, 2024, with adjusted net profit increasing by 427.9% to HKD 607 million, driven by new game launches and robust app business development [1][2] Financial Performance - The company achieved revenue of HKD 5.737 billion, marking an 8.95% year-on-year increase [1] - Shareholder profit reached HKD 5.81 billion, up 694.87% compared to the previous year [1] - Earnings per share stood at HKD 0.5061 [1] Revenue Contributions - The new games "Doomsday: Last Survivors" and "Viking Rise," along with the app business, were key growth drivers, contributing approximately HKD 1 billion, HKD 700 million, and HKD 1.1 billion respectively [1] - The revenue share from these projects increased from 32% in 2023 to 49% in 2024, indicating a diversification in revenue sources [1] - The classic product "King of Kingdoms" continued to perform well, generating nearly HKD 2.6 billion in revenue [1] Geographic Revenue Distribution - Revenue distribution by region showed that Asia accounted for 42%, Europe for 34%, and North America for 20% of the total revenue [1] Profit Growth - The company reported a profit of HKD 5.58 billion, a substantial increase of 697% year-on-year, attributed to the expansion of its business and the deep application of AI technology [2] - Main business profit surged by 3626% to HKD 650 million [2] - The investment business recognized an unrealized loss of approximately HKD 70 million due to changes in the fair value of investment targets [2]