Interim Report 2014

IGG Inc. achieved substantial financial transformation during the first half of 2014, pivoting from a loss-making position in the prior year to a period of robust profitability. Total revenue surged by 219.1% year-over-year to US$91.9 million, while net profit reached US$32.9 million. This growth was primarily fueled by the successful performance of mobile titles such as Castle Clash and Clash of Lords II, which collectively shifted the company’s revenue composition toward mobile gaming, now accounting for 81.5% of total earnings. Reflecting this improved operational scale and liquidity, the company declared an interim dividend of HK5.6 cents per share.

The company’s global reach expanded significantly, supported by a user base of over 160 million registered accounts and 16.7 million monthly active users across North America, Asia, and Europe. To sustain this momentum, the organization is prioritizing long-term development through investments in the Link Messenger social platform and the expansion of internal R&D capabilities. Notably, the company terminated its external R&D outsourcing agreement with GameCoreTech, transitioning these functions to an internal Canadian subsidiary to streamline operations. This move, alongside the implementation of various share-based incentive schemes, underscores a strategic focus on retaining key talent and enhancing in-house innovation.

Financially, the company maintains a strong balance sheet with US$104.1 million in cash and bank balances and no bank borrowings. Corporate governance remains a priority, with ongoing compliance efforts regarding foreign investment regulations in the PRC, including the use of structured contracts to navigate telecommunications sector requirements. By maintaining rigorous adherence to GEM Listing Rules and successfully integrating new IFRS standards, the company has solidified its financial foundation while positioning itself for continued expansion within the competitive global mobile gaming market.