Interim Report 2022

IGG reported a net loss of HK$172 million for the first half of 2022, a significant reversal from the HK$577 million profit recorded during the same period in 2021.

Revenue declined 23% year-on-year to HK$2.49 billion, primarily due to the natural maturity of the flagship title Lords Mobile and HK$114 million in investment losses.

The company increased research and development spending by 48% to HK$738 million as part of a strategic pivot to stabilize performance through new title development.

Operational cost-cutting measures included an 11% reduction in total headcount, and the Board elected not to declare an interim dividend to prioritize resource optimization.

While core game operations returned to profitability by the second quarter of 2022, the company expects to continue recording net losses through the remainder of the year.

IGG maintains a diversified investment portfolio with stakes in private equity funds such as MFund and Griffin Gaming Partners to support its long-term global mobile gaming strategy.

The company continues to operate in China via structured contracts to navigate foreign investment restrictions, despite acknowledging the inherent regulatory uncertainty of this model.