IGG Inc. demonstrated a resilient financial performance during the first half of 2020, characterized by a strategic pivot toward investment-driven profitability despite a 12% year-on-year decline in total revenue to US$312.3 million. While legacy gaming titles experienced a natural contraction, the flagship title Lords Mobile maintained its market relevance, achieving record monthly gross billings of over US$60 million by July. The company’s net profit surged by 88% to US$132.8 million, a result heavily bolstered by a significant increase in other net income, primarily derived from a US$41.4 million unrealized gain on its equity investment in XD Inc. and broader fair value gains on financial assets.
The company maintained a robust liquidity position throughout this period, reporting US$339.9 million in cash and increasing net assets to US$462.7 million. Capital management remained a priority, evidenced by the declaration of US$79.7 million in dividends and the aggressive repurchase of 20,059,000 shares for cancellation. Operationally, the firm diversified its portfolio by launching over ten new titles and utility applications. To ensure long-term talent retention, the organization continued to utilize structured share option and award schemes, maintaining rigorous vesting schedules for employees and consultants.
Corporate governance remained stable, with the company adhering to standard regulatory requirements, though the chairman and CEO roles remained consolidated under Mr. Zongjian Cai. The firm’s operational presence in the People’s Republic of China is supported by structured contracts with Fuzhou Tianmeng. These arrangements, which accounted for 7.23% of total revenue, are deemed non-critical to the group’s core global operations, mitigating risks associated with potential regulatory shifts. Overall, the period reflects a transition toward a more diversified investment and gaming portfolio, supported by disciplined cost control and a strong balance sheet.
