IGG Inc. reported H1 2023 revenue of HK$2.5 billion, a 1% year-over-year increase, with flagship title Lords Mobile contributing HK$1.6 billion.
See it on page 67The company recorded a net loss of HK$360 million, more than doubling the prior year's HK$171.8 million loss due to an 85% surge in marketing expenses totaling HK$1.48 billion.
See it on page 10Aggressive integration of AIGC technology reduced R&D expenses by 32% and administrative costs by 19%, enabling the Group to return to monthly profitability by June 2023.
See it on page 8The mobile application business segment grew rapidly, reaching HK$63 million in monthly gross billings by July 2023 as part of a strategic diversification effort.
See it on page 7The Group maintains a strong liquidity position with HK$1.48 billion in cash, despite managing HK$250 million in capital commitments for office construction.
See it on page 12Asia remains the company's primary market, contributing HK$1.10 billion in revenue during the first half of 2023.
See it on page 68Management implemented a new Share Incentive Scheme to replace expired plans and align key personnel with long-term corporate objectives.
See it on page 42IGG Inc. reported a revenue of HK$2.5 billion for the first half of 2023, representing a 1% year-over-year increase. This performance was anchored by the flagship title Lords Mobile, which contributed HK$1.6 billion, alongside the rapid scaling of new strategy titles Doomsday: Last Survivors and Viking Rise. A significant strategic shift was evidenced by the surge in the mobile application business, which reached monthly gross billings of HK$63 million by July 2023, signaling successful diversification beyond the core gaming portfolio.
Despite stable revenue and a high gross profit margin of 72%, the Group recorded a net loss of HK$360 million, a substantial increase from the HK$171.8 million loss in the prior year. This deficit was primarily driven by an 85% surge in selling and distribution expenses, totaling HK$1.48 billion, as the company aggressively marketed its new titles. To mitigate these costs, management aggressively integrated AIGC technology into development and operations, contributing to a 32% reduction in R&D expenses and a 19% drop in administrative costs. These optimization efforts allowed the Group to return to monthly profitability by June 2023.
The Group maintains a robust global presence, with Asia remaining its largest revenue contributor at HK$1.10 billion. Operations in China continue to utilize structured contracts to navigate foreign investment restrictions in the telecommunications and internet sectors, though these entities represent a small fraction of total assets and revenue. Financially, the Group remains liquid with HK$1.48 billion in cash, even as it manages HK$250 million in capital commitments for office construction. Governance during this period focused on streamlining incentive programs, including the adoption of a new Share Incentive Scheme to replace expiring and terminated plans, ensuring continued alignment between key personnel and long-term corporate objectives.
