IGG (799) investor relations material

Executive summary

• Revenue for 1H26 reached HK$2,878M, up 6% year-over-year, driven by strong performance in mobile games and app business.

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

• Major titles like Doomsday: Last Survivors and Lords Mobile contributed significantly, with Doomsday achieving record billings and growing 33% year-over-year.

• APP Business contributed 20% of total revenue, maintaining solid results.

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

Financial highlights

• Consolidated revenue: HK$2,878M (+6% YoY); Games revenue: HK$2,311M (+5% YoY); APP Business revenue: HK$570M (+7% YoY).

• Gross profit: HK$2,449M (+9% YoY); Gross margin: 85% (+2ppts YoY); cost of revenue decreased 8% YoY to HK$428M.

• Net profit: HK$313M (-4% YoY); Net profit margin: 11% (-1ppt YoY); adjusted net income (non-IFRS): HK$325M.

• Earnings per share (basic): HK$0.2773; diluted: HK$0.2756.

• Cash and cash equivalents: HK$2,000M as of 30 June 2026.

Outlook and guidance

• Focus on innovation in game development, diversification of product portfolio, and global operational excellence.

• Continued integration of AI technologies to enhance marketing and operational efficiency.

• Plans to launch new strategy games (Project SA and Project AA) to drive future growth.

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