GLOBAL PRESENCE 

Established in 2006, IGG is a renowned developer and publisher of mobile games with a strong global presence and an international customer base of nearly 1.3 billion users and over 36 million MAU. Leveraging its success in client and browser PC online games, the Group changed its strategy to target the mobile games market in 2013. After nine years, the Group’s mobile games and apps are now available in 23 different languages worldwide, while IGG has been listed among the “Top 52 Publishers” globally by data.ai1 for seven consecutive years. Embracing our corporate spirit of “Innovators at Work, Gamers at Heart”, the Group is dedicated to creating high-quality and enjoyable games 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, Turkey, 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, Amazon, Meta and Steam. The Group’s international presence and partnerships have enhanced its competitive advantage in the industry. 

BUSINESS REVIEW 

In 2021, the continuous spread of the COVID-19 pandemic across the globe and the introduction of new regulatory measures for games in China intensified competition in the games industry. IGG continues to maintain its competitive edge by leveraging its years of experience in global operations. The Group successfully released several new games in different genres, achieving a new milestone in portfolio diversification. 

Leveraging its twin engines of existing and new games, IGG’s revenue increased by 11% year-on-year to HK$6.0 billion. During the Year, revenue generated from markets in Asia, North America and Europe accounted for 36%, 35% and 23%, respectively, of the Group’s total revenue. For IGG, 2021 was also a year for strategic investments. IGG seized opportunities in the “home-based” economy to enhance marketing promotions and expand R&D teams to create momentum in the long run. The substantial increase in marketing and R&D expenses placed the Group’s net profit under short-term pressure, realizing HK$424 million in net profit for its core game business.

Due to market volatility, the Group’s investments in online mobile game companies and funds did not perform as well as in 2020, recording a loss of approximately HK$55 million. The increase in expenses and loss on investments resulted in a decrease in the Group’s net profit from nearly HK$2,100 million in 2020 to HK$370 million for the Year. 

“Lords Mobile”

“Lords Mobile”, released in March 2016, is the Group’s first cross-platform, multi-language, real-time game designed for global gamers. The game has been well-received by gamers since launch and continues to generate stable revenue for the Group. As of 31 December 2021, it has over 490 million registered users worldwide and 12 million MAU. 

With regular updates and streamlined game operation, “Lords Mobile” continued to deliver solid performance, with average monthly gross billing of over HK$440 million. Following on the “Saint Seiya” IP collaboration in early 2021, IGG is collaborating with Universal Pictures to introduce their smash hit, Kung Fu Panda 3, into the game. IGG will continue to release new game content and different promotional initiatives to extend the game’s longevity. 

“Time Princess” 

“Time Princess”, released in the second half of 2020, is the first female-oriented game developed by the Group. On top of the frequent release of new interactive stories since its debut, the game has seen tie-ups with the Kunsthistorisches Museum in Vienna and Xi’an Museum in China for collaborative events, giving players a refreshing gaming experience. During the Year, “Time Princess” continued to be recognized by both gamers and the gaming industry, and was selected as the “Best of 2021 Awards – Best Pick Up & Play” by Google Play in South Korea. 

“Castle Clash” 

“Castle Clash” is a fast-paced tower defence game launched in 2013. After nearly nine years, the game remains popular. Frequent content updates and regular addition of new features have successfully sustained the game’s appeal. 

New Titles 

A diverse line-up of new titles, including strategy and action games, are scheduled for release to give players new gaming experiences. “Project Yeager”, a new action game offering top-notch 3D graphics, a dynamic combat system and a wide variety of characters, is slated for release in 2022. It has been well-received by players and the market during beta testing. 

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 Year, due to market volatility, the Group’s investments in online mobile game companies and funds did not perform as well as last year, recording a loss on investments of approximately HK$55 million. 

PROSPECTS AND BUSINESS UPDATE FOR THE FIRST QUARTER OF 2022 

Entering into 2022, the Group is affected by the international political situation and policy implications of respective countries, such as the international financial and trade sanctions caused by the war between Ukraine and Russia, which may also cause shocks to the global economy. In the meantime, major Chinese game companies are accelerating their international expansion out of China, which intensifies the competition and promotion cost of the industry. In the face of multiple challenges, despite the Group’s best efforts to manage cost through integrating R&D resources, strengthening internal competition mechanism and actively controlling resources and expenditure, the Group’s net profit still faces short-term pressure. Based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the period from 1 January 2022 to 28 February 2022 and other available information, it is expected that the Group will record HK$1,200 million to HK$1,400 million in revenue, and HK$70 million to HK$110 million of net loss in core game business in the first quarter of 2022. Due to market volatility, the Group’s investments in online mobile game companies and funds are expected to face losses in the first quarter.