First Quarterly Report 2014

IGG Inc. achieved substantial financial expansion during the first quarter of 2014, signaling a successful transition from a net loss of US$3.9 million in the prior year to a profit of US$13.6 million. Total revenue reached US$44.1 million, representing a 206.3% year-over-year increase. This growth was primarily fueled by the mobile gaming segment, which accounted for 79.3% of total revenue, largely due to the widespread success of the title Castle Clash. Despite rising operational, marketing, and research expenditures, adjusted net income climbed to US$13.8 million, a 193.6% increase compared to the first quarter of 2013.

The company maintained a robust international footprint as of March 31, 2014, serving 14.5 million monthly active users across 180 countries. Strategic initiatives during this period included a partnership with Tencent for distribution within the People’s Republic of China and the expansion of research and development capabilities through new subsidiaries in Canada. These efforts underscore a commitment to scaling global operations while diversifying the company’s technical infrastructure.

Corporate governance and internal management remained central to the company’s operations, characterized by a structured shareholding arrangement and the implementation of long-term incentive programs. Specifically, the company utilized Pre-IPO and post-listing share option schemes, granting 3.7 million options and 1.56 million awarded shares to employees and directors with four-year vesting schedules. While the company adheres to standard governance protocols, it maintains a combined Chairman and CEO role, which the board justifies as a necessary measure for effective strategic management. No dividends were declared for the period, as the company prioritized reinvestment and the allocation of capital toward share purchase schemes to support its ongoing growth trajectory.