IGG Inc Interim Results Announcement for the Six Months Ended 30 June 2025

IGG Inc. demonstrated financial resilience during the first half of 2025, reporting stable revenue of HK$2.72 billion and a net profit of HK$321.5 million. This performance reflects a 29% increase in profit compared to the second half of 2024, supported by a robust gross profit margin of 83%. While the flagship title Lords Mobile experienced a slight decline, the company successfully offset this through a 30% year-on-year expansion in its APP business, which now contributes 20% of total revenue. The firm maintains a solid liquidity position with HK$2.50 billion in cash and cash equivalents, enabling a shareholder return policy that distributed approximately 61% of period profits through dividends and active share buy-backs.

The company’s strategic operations remain focused on global mobile gaming and diversified application development. To navigate regulatory constraints in the People’s Republic of China, the group continues to utilize structured contracts with domestic entities like Fuzhou Tianmeng. These arrangements, which account for roughly 3.27% of revenue, remain compliant with current legal frameworks, though management maintains contingency plans should regulatory environments shift. Furthermore, the company manages a portfolio of private equity investments and unquoted securities valued at HK$373.69 million, despite recording minor unrealized losses and impairment charges on certain associates during this period.

Corporate governance and human capital management are anchored by extensive share-based incentive schemes. While the traditional Share Option Scheme has been largely phased out, the company actively utilizes a Share Award Scheme to align executive and employee interests with long-term performance. During the first half of 2025, the firm navigated the lapsing of 14.33 million performance-based shares due to unmet conditions while simultaneously issuing new grants to ensure continued talent retention. With a reduced gearing ratio of 25.6% and minimal capital commitments, the company is positioned to prioritize operational efficiency and portfolio optimization in the coming periods.