IGG Inc. reported a 12% year-on-year revenue decline to $312.3 million, yet net profit surged 88% to a record $132.8 million, largely driven by a $54.3 million gain from investments in companies like XD Inc.
See it on page 6Flagship title *Lords Mobile* experienced a resurgence, reaching a record monthly gross billing of over $60 million in July 2020.
See it on page 7The company maintains a strong liquidity position with $339.9 million in cash and cash equivalents, facilitating $79.7 million in dividends and $14.1 million in share repurchases during the period.
See it on page 59Operations rely on a Variable Interest Entity (VIE) structure via Fuzhou Tianmeng to navigate Chinese regulatory restrictions, though this structure currently accounts for less than 8% of total revenue.
See it on page 31The Group is actively pursuing growth through acquisitions, investing $3.3 million in online gaming associates during the first half of 2020.
See it on page 8Corporate governance remains centralized under a combined Chairman and CEO structure to streamline strategic development.
See it on page 15IGG Inc. demonstrated significant financial resilience during the first half of 2020, characterized by a strategic pivot toward investment gains and cost management despite a softening in top-line revenue. While total revenue decreased 12% year-on-year to $312.3 million due to the natural lifecycle decline of legacy titles, net profit surged 88% to a record $132.8 million. This profitability was primarily driven by a $54.3 million gain from global investments, most notably a substantial fair value increase in the Group’s stake in XD Inc., alongside a resurgence in the flagship title *Lords Mobile*, which achieved record monthly gross billing of over $60 million in July 2020.
The Group’s operations remain globally diversified, with Asia, North America, and Europe serving as primary markets. To navigate Chinese regulatory restrictions on foreign investment in gaming, the Group utilizes a "Structured Contracts" framework via Fuzhou Tianmeng. While this Variable Interest Entity (VIE) structure faces potential long-term regulatory scrutiny under China’s Foreign Investment Law, it currently accounts for less than 8% of total revenue and is deemed a manageable risk. Corporate governance remains stable, with the Board maintaining a combined Chairman and CEO structure to streamline strategic development.
Financially, the Group ended the period in a robust liquidity position, holding $339.9 million in cash and cash equivalents. This capital strength supported aggressive shareholder return initiatives, including $79.7 million in dividends and $14.1 million in share repurchases. Furthermore, the Group continued to incentivize its workforce through expanded share option and award schemes while simultaneously pursuing new growth opportunities through $3.3 million in acquisitions of online gaming associates. These actions reflect a dual focus on maintaining a strong balance sheet while positioning for future growth in the global mobile gaming market.
