IGG Inc. Annual Report 2023

Key insights

7 takeaways

01
IGG Inc. returned to profitability in 2023 with a net profit of HK$73.05 million, reversing a HK$503.59 million loss from the previous year.See it on page 14
02
Annual revenue grew 15% year-on-year to HK$5.27 billion, fueled by the performance of Lords Mobile and new launches including Doomsday: Last Survivors and Viking Rise.See it on page 11
03
The company maintains a strong liquidity position with HK$1.47 billion in cash and cash equivalents and no significant interest-bearing debt.See it on page 14
04
Aggressive growth strategies resulted in a 57% increase in selling and distribution expenses, which was offset by cost optimization and improved gross margins.See it on page 12
05
Asia remains the company's core market, generating 44% of total revenue and holding 82% of its specified non-current assets.See it on page 158
06
Capital management efforts in 2023 included the repurchase and cancellation of 13.875 million shares to increase shareholder value.See it on page 196
07
The company ended 2023 with a global workforce of 1,976 employees and has integrated ESG management directly under the Board of Directors.See it on page 26

Summary

IGG Inc. achieved a significant financial turnaround in 2023, reporting a net profit of HK$73.05 million, a marked recovery from the HK$503.59 million loss recorded in 2022. This performance was underpinned by a 15% year-on-year revenue increase to HK$5.27 billion, driven by the sustained popularity of the flagship title Lords Mobile, the successful launch of new games such as Doomsday: Last Survivors and Viking Rise, and the expansion of the company’s diversified APP business. While aggressive marketing efforts led to a 57% rise in selling and distribution expenses, the company successfully optimized costs and improved gross margins to return to profitability.

The company maintains a global operational footprint, with Asia serving as its primary market, accounting for 44% of total revenue and 82% of specified non-current assets. To ensure long-term stability, IGG Inc. manages a robust liquidity position, holding HK$1.47 billion in cash and cash equivalents with no significant interest-bearing debt. Capital management strategies in 2023 included the repurchase and cancellation of 13.875 million shares to enhance shareholder value, alongside the continued use of performance-based share award schemes to retain key talent. The company also maintains structured contracts for its Mainland China operations to comply with foreign ownership restrictions, though these represent a minor portion of total revenue and assets.

Corporate governance and sustainability remain central to the company’s strategic framework. IGG Inc. has integrated environmental, social, and governance (ESG) management directly under the Board of Directors, emphasizing data privacy, cybersecurity, and anti-corruption measures. The company’s workforce, which totaled 1,976 employees at year-end, benefits from comprehensive welfare programs and professional development initiatives. By adhering to rigorous internal controls and international accounting standards, the company ensures operational transparency and risk mitigation, positioning itself for continued growth in the competitive global gaming sector.