IGG (799) investor relations material

Executive summary

• Revenue for H1 2026 reached HK$2.88 billion, up 6% year-on-year and 4% sequentially, driven by strong performance in mobile games and app business.

• Net profit was HK$313 million, down 4% year-on-year but up 20% sequentially; core business net profit (non-IFRS) was HK$322 million.

• Major titles contributed significantly: "Lords Mobile" generated HK$1.02 billion, "Doomsday: Last Survivors" HK$700 million (+33% YoY), and "Viking Rise" HK$350 million.

• App business revenue was HK$570 million, up 7% year-on-year, accounting for 20% of total revenue, with 71 million monthly active users.

• Interim and special dividends totaling HK16.4 cents per share were declared, representing a 60% payout ratio.

Financial highlights

• Gross profit was HK$2.45 billion (+9% YoY), with gross margin at 85% (up from 83% YoY).

• Cost of revenue decreased 8% YoY to HK$428 million.

• Administrative expenses rose 21% YoY to HK$192 million; R&D expenses increased 13% to HK$447 million.

• Cash and cash equivalents stood at HK$1.99 billion as of 30 June 2026.

• Net cash inflow from operations was HK$294 million.

Outlook and guidance

• Continued momentum expected from "Doomsday: Last Survivors," new game launches (Project AA in Q4 2026, Project SA in Q1 2027), and steady app business performance.

• Focus on global operational excellence, innovation, and expanding a diversified product matrix.

• R&D and administrative expenses projected to decline in 2027 as overseas project budgets are halved.

• Margin expansion anticipated as upfront investments taper off and new projects become profitable.

• Long-term goal to build a sustainable gaming ecosystem and expand IP portfolio.