Financial · May 14, 2014

First Quarterly Report 2014

Published by IGG

Summary

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.

From the report

FIRST QUARTERLY REPORT CLASH TEXAS HOLD ' EM OFLORDS POKER CASTLE ICG WINGS I GOT GAMES DESTINY CLASH HEROES SLOT DNSTER Machines GODSWAR IGG INC TaA T Incorporated in the Cayman Islands with limited liability

CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM. take responsibility no any of Hong Kong and expressly of the contents Limited of Exchange or completeness or any disclaim and The Stock as to its accuracy upon the whole given part and Clearing no Limited representation from or in reliance includes particulars of The Stock make arising Market Directors, Hong for the Kong contents Exchanges of this for report, any loss howsoever and individually accept on full the responsibility, Growth regard Enterprise to the and Company. belief, the The information and there

on from or in reliance includes particulars of The Stock make arising Market Directors, Hong for the Kong contents Exchanges of this for report, any loss howsoever and individually accept on full the responsibility, Growth regard Enterprise to the and Company. belief, the The information and there liability this report. whatsoever the Directors collectively the Listing of of giving Securities information best of their with knowledge not misleading misleading. or deceptive, This report, for which with the Rules Limited Governing for the purpose confirm that, in all to material the respects herein and or this report in compliance of Hong Kong enquiries, and complete make any statement Exchange made all reasonable is accurate of which would having in this omission report contained matters are no other the

The preferred shares have no expiry date. However, at any time commencing on 1 December 2011 (inclusive), then subject to the applicable laws of the Cayman Islands and, if so requested by the holders of more than seventy-five percent (75%) of HIGHLIGHTS For the three months ended 31 March financial liability at fair value through profit or loss on initial recognition. The initial carrying values of the Series A and B 2014 2013 US’ 000 US’ 000 fair value of the warrants on the exercise date plus the cash proceeds from the exercise. They are measured subsequently (Unaudited) (Unaudited) at fair value at each period end with changes in fair value recognised in the income statement. The Company determined the Rev fair value of Series Shares based on valuations performed by Jones Lang LaSalle. enue 44,055 14,421 Profit/(loss) for the period attributable to owners of the parent 13,647 (3,896) Adjusted net income* 13,821 4,677 * Adjusted net income represented profit excluding share-based compensation,For the three months ended 31 March and the fair value loss of the redeemable convertible Preferred Shares, which were converted to ordinary Shares on 31 May 2013 in accordance with the then applicable articles of association of the Company and have been transferred to equity.

re-based compensation,For the three months ended 31 March and the fair value loss of the redeemable convertible Preferred Shares, which were converted to ordinary Shares on 31 May 2013 in accordance with the then applicable articles of association of the Company and have been transferred to equity. It is considered a useful supplement to the condensed consolidated statement of profit or loss indicating the Group’s profitability and operational performance for the financial periods presented. At 1 January 66,595 – The Group’s revenue for the Period was approximately US$44.1 million, representing an increase of approximately 206.3% over the revenue of approximately US$14.4 million for the corresponding period in 2013 and an increase of approximately 20.2% over US$36.7 million for the three months ended 31 December 2013. – The Group’s profit attributable to owners of the parent for the Period was approximately US$13.6 million, comparing with the loss attributable to the owners of the parent of US$3.9 million for the corresponding period in 2013 and an increase of approximately 41.7% over US$9.6 million for the three months ended 31 December 2013. – The Group’s adjusted net income for the Period was approximately US13.8 million, representing an increase of 193.6% over the US4.7 million for the corresponding period in 2013, and an increase of approximately 42.3% over US$9.7 million for the three months ended 31 December 2013. – The Directors do not recommend the payment of any dividend for the three months ended 31 March 2014 (three months ended 31 March 2013: Nil). FIRST QUARTERLY RESULTS (UNAUDITED)

riod in 2013, and an increase of approximately 42.3% over US$9.7 million for the three months ended 31 December 2013. – The Directors do not recommend the payment of any dividend for the three months ended 31 March 2014 (three months ended 31 March 2013: Nil). FIRST QUARTERLY RESULTS (UNAUDITED) The Board is pleased to announce the unaudited consolidated quarterly results and the unaudited condensed consolidated financial statements of the Group for the Period, together with the comparative figures for the three months ended 31 March 2013. These results have been reviewed by the Company’s audit committee, comprising all of the independent non-executive Directors and non-executive Directors, with one of the independent non-executive Directors chairing the audit committee.

Pages: 32
Words: 16,393
Type: Financial

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