GLOBAL PRESENCE

Established in 2006, IGG is a renowned developer and publisher of mobile games and applications with a strong global presence and an international customer base. Leveraging its success in client and browser PC online games, the Group changed its strategy to target the mobile games market in 2013. After years of effort, the Group’s mobile games are now available in 23 different languages worldwide with approximately 1.45 billion gamers in total and 17 million monthly active users (“MAU”), and the APP Business has also established itself as a diversified growth catalyst for the Group after over a decade of perseverance. Embracing our corporate spirit of “Innovators at Work, Gamers at Heart”, the Group is dedicated to creating high-quality and enjoyable games and applications that will stand the test of time.

IGG is headquartered in Singapore with local offices in the United States, China, Canada, Japan, South Korea, Thailand, the Philippines, Indonesia, Brazil, Türkiye, Italy and Spain, and users from more than 200 countries and regions worldwide. Over the years, IGG has aggressively pursued a strategy of globalisation in R&D and operations, establishing long-term relationships with over 100 business partners, including global platforms, advertising channels, and vendors such as Apple, Google, and Meta. The Group’s international presence and partnerships have enhanced its competitive advantage in the industry.

BUSINESS REVIEW

Having achieved a remarkable turnaround from a loss to a profit in 2023, the Group is now directing its efforts towards “Profit-driven Growth” in 2024. In terms of revenue, the Group experienced a 9% year-on-year increase, reaching HK$2.74 billion in the first half of 2024. This growth was primarily driven by the consistent contributions from the two highly-rated strategy games, “Doomsday: Last Survivors” and “Viking Rise”, along with the outstanding performance of the APP Business. “Lords Mobile”, IGG’s flagship title launched eight years ago, contributed HK$1.34 billion in the first half of 2024. During the Period, “Doomsday: Last Survivors” and “Viking Rise” generated approximately HK$500 million and HK$300 million, respectively, replacing “Lords Mobile” to become the new growth drivers. Following its restructuring at the beginning of 2024, the APP Business swiftly regained momentum and achieved record-breaking revenue of HK$400 million in the first half of 2024, accounting for 15% of the Group’s total revenue and establishing itself as a diversified growth catalyst. During the Period, revenue from Asia, Europe and North America accounted for 41%, 34% and 21%, respectively, of the Group’s total revenue.

With the contribution of the aforementioned businesses, continuous resource optimisation, and extensive utilisation of AI technology, the Group achieved a net profit of HK$330 million in the first half of 2024. The Group’s core business exceeded HK$350 million in net profit, while the investment business recorded a slight loss of approximately HK$25 million due to fair-value changes of investees.

“Lords Mobile”

“Lords Mobile”, released in March 2016, is the Group’s first cross-platform, multi-language, real-time game designed for global gamers. Since its launch, the game has garnered widespread acclaim from gamers, and is recognised for its longevity and ability to generate stable revenue for the Group. As at 30 June 2024, it has amassed 710 million registered users worldwide and has 9.5 million MAU. The Group unveiled an exciting array of new marketing initiatives, including the much-anticipated “Guild Expedition” feature and collaborations with esteemed partners such as iconic Italian sports car manufacturer “PAGANI”, blockbuster movies like “Shrek” and “Godzilla x Kong: The New Empire”, and the fighting game “THE KING OF FIGHTERS XV”, to offer players a refreshing gaming experience.

“Doomsday: Last Survivors”

Expanding on the initial version of “Doomsday: Last Survivors”, the group introduced an exciting blend of MOBA (Multiplayer Online Battle Arena) and Battle Royale features to its strategy gameplay. To further enhance the experience, the Group has unveiled “Genesis War”, a thrilling large-scale guild battle that adds a new dimension to the game, propelling the average monthly gross billing to HK$86 million. The Group worked with the renowned fighting game, “THE KING OF FIGHTERS ’ 97” and held the first International Offline SLG Championship for “Doomsday: Last Survivors” and “Lords Mobile”. This groundbreaking tournament is a first for the games industry.

“Viking Rise”

“Viking Rise”, released in December 2022, is a real-time war strategy game based on Norse mythology and Viking history. Throughout the first half of 2024, the Group continued to enhance the game’s content, introducing a variety of in-game features including social play, instances, and guild battles. In a marketing campaign, the Group partnered with Hafþór Júlíus Björnsson, the “World’s Strongest Man” and renowned actor from the classic American TV show, to be the forefront authority for the new Valhalla Drill game mode. Additionally, the collaboration between the game and the popular TV show “Vikings” from MGM Television and its spinoff series “Vikings: Valhalla” was very well received by the game’s 30 million players. With recent marketing initiatives, the game is projected to achieve a new record in August, with monthly gross billing expected to reach HK$80 million.

APP Business

Following a strategic restructuring in early 2024, the APP Business swiftly regained its stride and achieved remarkable milestones in gross billing and user acquisition. During the Period, the APP Business experienced a surge in monthly gross billing, to an impressive HK$100 million, contributing a substantial HK$400 million in revenue for the Period, accounting for 15% of the Group’s total revenue. It solidified the APP Business as a pivotal catalyst for diversified growth within the Group. As at 30 June 2024, it has over 41 million MAU. The Group’s commitment to promoting and diversifying its product portfolio, leveraging its platform-based business model, led the APP Business to achieve a monthly gross billing of HK$120 million in July.

Investments

The main objectives of the Group’s investments are to strengthen its overall R&D capability and enrich its product portfolio. Through strategic agreements with companies in the games industry, including licensed publishing and outsourced game development, the Group strives to diversify its game portfolio. At the same time, the Group tracks strategic directions in the Internet industry by investing in private equity funds with outstanding performance and portfolios focused on mobile Internet business. During the Period, the Group recorded a slight loss of approximately HK$25 million due to fair-value changes of investees.

PROSPECTS

By adhering to its long-term operational strategy, the Group will drive steady growth in both its core game business and the APP Business. Additionally, the Group will continue to adopt Artificial Intelligence Generated Content (“AIGC”) technology to optimise costs and enhance profitability. Increased marketing initiatives for “Viking Rise” and the continued growth of the APP Business are fuelling the Group’s upward trajectory and positioning it for sustained profitability in the long run. Embracing the corporate spirit of “Innovators at Work, Gamers at Heart”, the Group will continue to strengthen its global R&D and operation capabilities, to relentlessly pursue its strategy of quality, innovation, and excellence in creating innovative yet timeless games.