IGG Interim Results Announcement: Six Months Ended 30 June 2016

IGG demonstrated robust financial growth during the first half of 2016, characterized by a 21.4% year-over-year revenue increase to US$126.0 million. This performance was underpinned by a transition toward a mobile-first strategy, with mobile games accounting for 97.3% of total earnings. Profitability remained stable, with net profit reaching US$25.0 million, as the company balanced revenue gains against strategic increases in research and development, advertising, and promotional expenditures intended to fuel global expansion. Shareholders benefited from this growth through an interim dividend declaration of HK4.3 cents per share.

The company’s success was largely driven by the strong performance of established titles like Castle Clash, which sustained over 10 million monthly active users, alongside the successful launch of Lords Mobile. Geographically, the company maintained a diversified revenue stream across North America, Europe, and Asia, effectively mitigating risks associated with regional regulatory shifts. Notably, new Chinese publishing regulations were projected to have a negligible impact on the bottom line, given that the Chinese market accounted for only 3% of total revenue during this period.

Operational stability was further supported by a healthy balance sheet, marked by an absence of bank borrowings and a diversified customer base where no single entity contributed more than 10% of total revenue. Corporate governance remained a priority, with the audit committee confirming compliance with listing requirements. Furthermore, the company actively managed its capital structure through share-based incentive programs and a significant share repurchase initiative, which saw 39,723,000 shares cancelled for approximately HK$136.7 million. These actions reflect a commitment to enhancing shareholder value while maintaining the financial agility necessary to compete in the global mobile gaming market.