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  • What are the percentages of revenue from arcade games and online games in January? Will online businesses be divided into mobile games and online games and will the licensing fee exceed 5%? What are the percentages of revenue from arcade games and online games this year? What are the reasons for changes in the percentage of revenue from each product? What is the reason for the decrease in arcade games?

    Revenue from arcade games and online games accounted for 18% and 82% of the revenue in January, respectively. Online games are no longer distinguished by mobile games, and online games and licensing fees for Knights of Valour did not exceed 5%. The biggest market for arcade games used to be Mainland China. Competition in arcade games in China has become intense. We no longer have the overwhelming advantage we had in terms of overall business competition. Although the market is substantial, the competition has become intense. Therefore, only appropriate levels of revenue can be maintained in terms of overall business performance. The arcade and online revenue proportions in January can be used as a reference for future operations and there would be little deviation overall.
  • What are the future and present goals for games with more significant growth and higher levels of anticipation such as Alpha, fishing games, and Golden HoYeah? What is the current state for app games? What are the goals for the five major product lines this year?

    Alpha Children’s card games account for a low proportion and we have the Hero of Robots 2 children’s card game this year which account for a low proportion. The app has been the main source of growth since Q4 last year.
    In terms of the rankings, the Company’s top five major apps in January were Golden HoYeah, Star 3 in 1, Mangan Dahen, Good Luck 777, and Ocean King. The expectations for each product line are ranked similarly with the highest expectations and chances of growth for those ranked on top and relatively lower growth for those ranked last.
  • Do you have overseas development plans for the five major apps?

    The Company has continuously operated in its overseas market. However, overall business operations in the overseas market have been more difficult than we expected. However, we never give up on operations in other markets and we will continue to do our best. Despite our best effort, we have not seen results in Thailand and Malaysia.
  • Golden HoYeah has made up for the Fafafa contract termination. How will the Company continue to increase its revenue?

    Golden HoYeah has achieved significant growth since November last year and it has approached the average value in 2016. Although the number of players is half of the number of Fafafa, the paid rate and average payment per person has been higher than that of Fafafa. Therefore, we have approached the average revenue with Fafafa despite losing half the players.
  • Was the growth of Golden HoYeah due to the introduction of the AI system? How does the Company calculate or share the AI system software expenses? Does the Company plan to introduce AI into Star 3 in 1 or Mangan in the future? How will you calculate the introduction expenses in the future? Will the expenses increase?

    We have only begun preliminary use of AI and we mostly use it for labeling, multi-faceted labeling, and CRM maintenance and use them with precision on the sales platform. The introduction of AI is effective on certain levels. However, the most important thing is the implementation of follow-up strategies. Correct labeling in games facilitates the use of sales and compensation strategies which are the same when applied to other products when projects introduce strategies for players. The software expenses for introducing AI into app games is insignificant for the Company and does not affect the Company.
  • What are the difficulties of duplicating the successful business model of Golden HoYeah into other games? Is player analysis the most difficult part? Can the growth of Golden HoYeah be attributed to AI?

    Each game has a different group of players and it is not that easy to quickly transfer the same concepts to other groups of players. The main purpose of AI is to analyze players with the aim of duplicating successful concepts to other groups. AI is only a small part of the process, and success cannot be totally attributed to AI. It only helps with analysis.
  • What is current state of the launch of the Knights of Valour in China? Is it still being developed?

    Advertising for the Knights of Valour 2 has not officially begun in China and it will first be launched in Taiwan. We mainly operate IP licensing for the first generation of Knights of Valour in China.
  • What games are currently developed in collaboration with Tencent? Are operations performing poorly? Tencent's performance has not been good lately.

    What games are currently developed in collaboration with Tencent? Are operations performing poorly? Tencent's performance has not been good lately.
  • What is the progress on the Hero of Robots 2? What is the current state of the cartoons? How many units does the Company expect to sell in China in April?

    Hero of Robots 2 was launched in December last year in Taiwan and we plan to launch it in China in April this year. We have not produced large cartoons and we will produce 4 episodes of a mini animation series of approximately 12 minutes, expecting to complete them by July. We also expect to ship 1,000 units to China, but we will modify it depending on the reaction of the market. After all, the first generation of Hero of Robots has paved the way for Hero of Robots 2 and Hero of Robots 2 has many great features.
  • The quarterly revenue had been approximately NT$700 million or more and it is now approximately NT$900 million. Is it mainly attributed to Golden HoYeah? What is Golden HoYeah's share? Does Golden HoYeah contribute to 50% of the revenue?

    The quarterly revenue had been approximately NT$700 million or more and it is now approximately NT$900 million. Is it mainly attributed to Golden HoYeah? What is Golden HoYeah's share? Does Golden HoYeah contribute to 50% of the revenue?
  • What is the Company’s estimated expense ratio and tax ratio for this year? Will there be more significant changes compared to the previous year? In terms of dividends, will cash dividends exceed those of the previous year?

    According to the Company’s plans, revenue will grow as the number of players increases and apps will account for higher proportions. Gross margin will also grow and the overall numbers will be higher than those of 2018. The Company’s policy has always been to distribute profits to shareholders and cash dividend this year will be similar to the previous year.
  • Does the Company have new self-produced games this year?

    We have Queen 3 which is expected to be launched this year. Other new product lines consist mostly of arcade games such as Monster Eye 2, VR Racing, and Hero of Robots 2 will soon be launched. Performance of the existing app products will be improved.
    Mobile games and online games now account for a higher proportion of games. No new games have been launched for Star 3 in 1, Golden HoYeah, Good Luck777, Mangan Dahen, and Ocean King, but these games have become platforms for many games. We add dozens of games to the platforms every year to increase the competitiveness and contents of the platforms, so that players do not get tired of playing and we seek to add more methods for operations. When it comes to increasing payments, the tools may be important, but we dedicate a lot of effort on customer relations and customer management to categorize players, analyze players’ behavior, and stimulate player’s consumption. In terms of the structure of current and past products, the difference is that revenue has become relatively stable after these platforms are established. In the past, we were required to develop other markets after we achieved a certain level of saturation in market sales. However, the successful development of the platform has helped us maintain relatively stable maintenance and growth, and it has greatly increased the Company’s projected future revenue, providing us with more confidence in the Company's future operations.
  • What is the status of the mobile gaming market in 2019?

    The Company's main products are mostly leisure gambling products for which the Company has greater confidence. In terms of the products of other companies, they consist mostly of popular IP works in the era of browser games and online games. They naturally attract a number of fans when they are converted to mobile games and they have relatively greater chances of success. However, players must also accept these new products and they don't always succeed.
  • More than 1,000 Alpha units were shipped in 2018. What is the reason behind the smaller increase in 2019?

    Children’s card games are product lines that require intensive operations. Armor Hero products have significant standards and we have higher expectations for Hero of Robots 2, mainly because of the reputation achieved by the first generation of Hero of Robots. In addition, we also work with Wahlap which currently has the largest operations in children’s card games in China.
  • Has Alpha achieved more than NT$10 million in revenue? Has its revenue, coupled with Hero of Robots children’s card games, surpassed the top five APP product lines?

    Licensing fees are only collected for deliveries and the revenue is insignificant. Revenue from children’s card games will no surpass the top five APP product lines.
  • What are the most popular games on the Golden HoYeah platform?

    The Company’s Golden HoYeah is different from other slot machines. Golden HoYeah has fishing games, arcade systems, and a mall that players can purchase tools from the mall. We design different gift packages for different players, and design tools for distribution for slot machines. With careful CRM operations, we have achieved many breakthroughs in the game.
  • What are the most favored products and markets for arcade games this year ?

    We have new a few major arcade game products launched this year such as VR, Hero of Robots 2, Monster Eye 2, and Speed Driver 5. In addition, we also launched the ticket progressive JP in China, and fishing progressive JP in the United States.
  • What are the Company's views on revenue in 2019? Will it achieve growth compared to 2018?

    2018 was a low point for arcade games. In addition to a reduced number of new venues in China which affected consuming capacity, the Company’s major products were also not launched on schedule and they affected the performance in arcade games in 2018. After the major products are launched in 2019, we should achieve good performance in replacement of machines in old venues even if there are fewer new venues. We expect to achieve better performance in 2019 compared to 2018 but we cannot provide a firm estimate of the level of growth.
  • Sales in Malaysia have not yet recovered since the election in the middle of the previous year. How does the Company view Malaysia?

    We have not yet achieved stable growth in arcade games in Malaysia, but the Company will continue to work hard on mobile games.
  • Will revenue in 2019 exceed NT$4.5 billion?

    There are more variables for arcade games and we expect overall revenue from arcade games to exceed revenue in 2018. However, the amount of growth remains unclear. Apps have accelerated growth and the proportion will be increased. It is less certain whether arcade games can achieve growth from levels in 2018.
  • Can the decline in arcade machines in the first half of the year be reversed in the second half of the year?

    The overall arcade game market did not decline. Instead, the Company has reduced its efforts because of fierce competition. The Company chooses product lines in which it is competitive for operations. In addition, as sales of major products scheduled for the postponed to launch in June and July this year, also as arcade games generally perform better in the second half of the year compared to the first half, arcade game machines will have better performance in the second half of the year.
    Revenue from arcade games in the first half of the year declined by more than NT$60 million compared to last year. However, overall sales of arcade game machine in July amounted to more than NT$130 million. Therefore, the sales volume in July alone could make up for overall deficiencies in arcade game machines in the first half of the year. However, July has always been a busy month for arcade game machine shipments, and many shipments of important product lines are in the second half of the year. As a result, July should be considered as a peak. However, changes in the future would be determined by market response which would be an important factor for determining whether large-scale shipments can be achieved in the second half of the year. We cannot determine whether there can be major breakthroughs in the second half of the year. However, as major products are scheduled for launch in the second half of the year, we expect to achieve higher shipments for these products in the second half of the year.
  • What are the Company's views for arcade machines in the third quarter? What is the visibility rate of purchase orders for the machines?

    Our current view is that it will be better than the second quarter. The visibility of machines means the promotion of products on the market. High product acceptance rate implies more purchase orders. Therefore, only purchase orders can help us predict market response, but we cannot confirm the actual quantity with precision.
  • What is the current market response to arcade machines in Taiwan? Which markets are the main targets for arcade games?

    The response to Ultra Moto VR and Speed Driver 5 onsite has been overwhelming and the market for fishing games has always been great.
    The main market for fishing games is in the United States; the main markets for simulation games is mainly China and Southeast Asia; the main markets for card games is Taiwan and China.
  • How is the current state of Hero of Robots 2 compared to Hero of Robots when it was first launched?

    300 units were launched in Taiwan in November last year and 1,000 units were launched in China, but only 800 or more units were placed in the market. The game currently performs better in Taiwan than in China. As the product was only launched in China in mid to late-April, we are still optimizing and adjusting the products. We hope that game optimization and the launch of animation will contribute to better performance in the fourth quarter.
  • What is the timing for the launch of the Hero of Robots animation? How will it be operated? Will there be a series of products in the future?

    The animation will be played in Taiwan starting from August 16th . The first session will begin in China on August 23rd and the second session will begin in October. The Hero of Robots animation remains in its preliminary stage and the IP recognition remains low. Our current main goal is to increase exposure and the cash realization has yet to begin. We have less experience in this respect and we cannot promote the IP like other dedicated companies in a planned manner and we will try to increase realization in this respect.
  • What are the proportions for the three major arcade games (fishing, cards, and simulator)?

    Current response to cards has been average, and the growth is slower than expected. We planned to launch the machines in Taiwan, thereafter start shipping 1,000 units to China immediately. However, competition now appears to be more intense in China. Therefore, we began to adjust product contents after shipping 800 units. We currently have no plans for rapid expansion in the market and we will wait till adjustments are made for the product line before continuing. In terms of these three product lines, the fishing games have received great response in the United States that account for approximately 30% in terms of revenue in July while simulators account for approximately 60%. As card machines were shipped before this period, the proportion would be lower.
  • Due to outstanding performance in revenue in the past few months, can you analyze the contribution of the five major mobile game product lines to revenue, their future prospects, and the current paid rate?

    We will provide a brief analysis for the five major product lines.
    We have set a goal to achieve 3% paid rate for Golden HoYeah, and we had achieved this rate on individual days. However, the daily average payment rate may be lower. Markets are bigger for certain app categories such as Golden HoYeah which targets the international market. Some products are focused on the market in Taiwan such as Star 3 in 1, Good Luck777, and Mangan Dahen. Fishing games target the market in China. Therefore, Golden HoYeah has achieved higher growth in terms of DAU, paid rate, and ARPU because it has a bigger market. In addition, as the team has conducted more research on paid rates, the Company has achieved faster growth for apps in the past few months due to positive competition between the teams. These measures have been effective.
    The Company’s revenue from the five major apps are as follows: Golden HoYeah still ranks first; Star 3 in 1 still ranks second; Mangan Dahen and Good Luck777 compete for the third place; and Ocean King ranks fifth. The Company currently experiences rapid growth from “Golden HoYeah” among the five product lines. Revenue from July has doubled and the source of income accounts for a high proportion of Golden HoYeah. “Star 3 in 1” has achieved more stable growth and it has little room for explosive growth. It has continuously grown each month. The game with weaker growth this year is “Mangan Dahen” which has been maintained at the same level since the beginning of this year. “Good Luck777” started with a lower baseline at the beginning of the year and has grown approximately 150%. “Ocean King” also started with a lower baseline and has grown by 50% to 100%. Therefore, all five product lines have achieved growth and contributed to overall business performance.
  • Has AI been adopted in games other than Golden HoYeah?

    AI has been preliminarily adopted for Star 3 in 1. AI has generated a huge buzz in recent years, and it is almost regarded as a cure for everything. In fact, we really don’t have to pay attention to whether it has such special powers because AI helps us analyze player’s behavior; the key is whether data after the analysis can be used by the Company. Therefore, we should not be misguided into believing that AI would generate exponential growth and rapid revenue. It is not that easy. AI helps us make decisions for markets and players; the key is how we implement AI in projects.
  • What are the operating strategies for the five major product lines in the future? As Golden HoYeah targets the international market, which markets will the Company pursue in the future? Will there be new markets? Mangan Dahen's performance this year has remained the same. Does the Company have a strategy to spur growth? Why did Good Luck777 grow so much this year?

    Golden HoYeah's markets are ranked as follows: China, Taiwan, United States, Japan, and Malaysia. In addition, Golden HoYeah’s team has accumulated more experience in team work, data analysis, and AI introduction than other teams in the Company. The leader's example will be used as reference for other projects to help the newer teams grow. Good Luck777 has achieved relatively good retention rates due to positive internal competition and the introduction of major machines which are the reasons for Good Luck777’s continuous growth. Ocean King has achieved continuous growth in the market in China in the past few months and we have high expectations for it.
    As marketing and promotion budgets have been planned for Star 3 in 1 each year, our next strategy will focus on celebrity endorsements. Due to the introduction of data analytics, we will continue to think of ways to improve the paid rate as well as seek ways to retain more existing players in response to the loss of players. We will also add multiple new games in the Star 3 in 1 all-in-one platform to satisfy the requirements of players in Taiwan. In addition, as Mahjong and chess games are quite popular in the Chinese-speaking area, we hope to have the opportunity to go beyond Taiwan and enter the market in China. Mangan Dahen had entered the Taiwanese market before Good Luck777. The original operating philosophy, data analysis, and business model are currently being adjusted. We plan to introduce related technologies and applications to help with the payment and retention rate. As for other new product lines, we will continue to launch new games in two-month cycles, improve the contents and scale of the platform. Products such as Mangan Dahen have the opportunity to enter foreign markets and we are actively developing these products for launch in the Southeast Asian market.
    We have high expectations for all product lines and we hope to achieve growth each month. All teams of the Company are doing their best to maximize the performance where as they focus on two elements: the first is how to make a product better and the second is finding a bigger market to explore. These measures will continue to be adopted by the Company, but we cannot guarantee that revenue will increase once we’ve optimized products and entered other markets. Nobody can be sure of this but we will keep doing our best. The process of growth starts with a low baseline with bigger room for continuous growth. However, once growth has passed a certain threshold, it is difficult to continue growth at the same pace. We hope to continue growth but we cannot predict the timing for the slowdown and decline of a product. If you have observed the Company’s revenue, you will see that it grew in March, dropped slightly in April, and continued to grow from May to July. However, we cannot guarantee that it would still go up in August because its baseline is already quite high. It may decline in August but we hope it will go up again in September. That’s the way the Company’s growth curve may be.
  • These apps were downloaded from the Internet. Can we see the changes in the number of player downloads, also whether the number continues to increase or has peaked?

    We can see the changes in the AI data but it is difficult to predict how an increase in a certain figure will cause changes in another figure.
  • Does the Company feel like there is an upper limit for Golden HoYeah's revenue?

    Nothing is limited. The question is whether you can achieve breakthroughs with your product. The answer to this question is also determined by two important factors. The first is whether the product is competitive and the second is whether it can break into other markets. There is no real upper limit. According to information provided by the General Manager Mr. Chiang, the Company only has approximately 1% of the market share in related apps so there is the other 99% we can target. It all depends on whether you have the capabilities to take the market.
  • What are the proportions of the markets for the five main apps? What is the proportion for China?

    Taiwan still accounts for a large percentage and the main source of revenue for Star 3 in 1, Mangan Dahen, and Good Luck777. These three major apps account for more than 30% of total revenue.
    We have achieved more breakthrough in Golden HoYeah and Ocean King this year. The proportion of revenue from the two games has improved in China, but it remains relatively low.
  • In the previous investor conference, the Company mentioned that sales of arcade machine may decline this year and new products have maintained sales at the same level by July. The two major markets from previous years, Malaysia and Italy did not contribute much to business this year. What is the Company's view on the opportunities in these two markets in the next six months to one year? As these two markets account for a high share of profits, I would like to ask the Chairman for his views. Does the Company have a chance to win them back?

    I don’t think we can at this moment. There is currently no chance of recovery in Malaysia or Italy within a short time. There may be more changes in certain laws in Italy and it would be difficult to duplicate past success. The Company currently does not view these two markets as important markets for arcade game machines.
  • With regard to the YoY revenue and the YoY profitability for July, why didn't the YoY profitability achieve the same growth as the YoY revenue?

    The Company’s overall performance in the first half of the year exceeded expectations and we have lobbied for better benefits for employees in the managers’ meeting and the Board of Directors to reward employees for creating good performance for the Company in the past six months. We therefore distributed travel allowances and increased the performance bonus and employee remuneration appropriation ratio in July. The expenses therefore increased and the overall profits before tax dropped. Every company seeks a balance. Employees have worked hard for our achievements, we hope that appropriate levels of encouragement would help motivate employees and encourage them to perform better. I believe that the policy would create mutual prosperity for shareholders in the long run.
  • Why was the earnings expenses ratio before tax in the second quarter this year lower than the expenses ratio in the second quarter of the previous year?

    It takes time for marketing personnel to understand products and R&D. It also takes time for R&D and product personnel to understand marketing. Once their efforts are connected, the performance will improve. We will reconsider whether to spend the budgets we created and reconsider the places of deployment to maximize effects. These methods are used to reduce overall marketing expenses. That is the main reason.
  • Golden HoYeah is more universal. Can Star 3 in 1 be promoted to overseas areas?

    Our team has actually considered this issue. Star 3 in 1 is a local Mahjong game which employs Mahjong rules unique to Taiwan. We have worked with Tencent in China in the past, but we did not succeed because of the incompatibility of the use of 13 tiles or 16 tiles in Mahjong. Our product could not be integrated into Mainland Chinese culture. However, the team has not given up. I believe that different regions have similar rules for related chess games and we can perhaps continue to try different things. We can, for instance, show ads in other regions and observe the effects, whether there are too many similar products or whether we can localize and adjust products to enter the markets. These are the teams’ current tasks.
    We have different things to consider for arrangements of the Company’s internal product lines. For instance, Golden HoYeah's original game structure was designed to be a product internationally. Star 3 in 1 started in Taiwan and some aspects of the product have been more local. When we begin planning a product, we would determine the product's market. We would naturally think about whether we have the opportunity to expand to other countries. Based on our past experience, direct duplication of a game to another market has rarely succeeded.
  • The tax rate has increased in the second quarter. How will the tax rate for this year be estimated?

    The tax rate is approximately 16% to 17% each year. The government currently stipulates 20%, but the Company has tax credits for investments and the offset amounts are different for each year.
  • Are the new R&D personnel added since last year? Are they all related to AI operations?

    The main reason for the current R&D personnel expansion is to expand into more markets, and new personnel are not confined to a single discipline. They include software, hardware, art, and planning. The Company’s demand for AI talents is actually not that high.
  • How does IGS compare to competitors in the mobile gambling game market in Taiwan?

    Every company is unique. Other competitors mostly have a single product lines, and specialize in a sector that corresponds to one of our five main apps. Our company has a wider product range and we are the only company that continue to produce arcade game machines. Therefore, we rarely compare ourselves with companies that have singular product lines.
  • Does the Company consider quarterly dividend distribution? Will the Company change its dividend policy next year?

    We have discussed this in an internal meeting, and we currently have no such plans. Based on past dividend policies, we will distribute most of our dividends to shareholders, and the direction of the policy will not be changed. Therefore, the more profits the Company earns, the more dividends we have for distribution.
  • As both Fafafa and Golden HoYeah are assigned to the Arcade Games Business Division, I believe that they are gambling games. How do you avoid legal issues for these gambling games? (02/06/2018)

    Fafafa and Golden HoYeah have zero cash flow issues and they are considered light gambling. On the other hand, games such as our Mangan Dahen involve cash flow. Current Taiwanese law provides that as long as a company does not operate purchases and sales in the cash flow process, it is considered legal according to the laws of Taiwan. It is not considered illegal under Taiwanese laws even if there are players who play with cash flow procedures.
  • Mangan Dahen has maintained its position among the top 15 whereas Xin Stars and 08 Online have always been ranked among the top 5. What methods have they employed to achieve such results? In addition, there have been many changes in the rankings of Star 3 in 1, Mangan Dahen, Golden HoYeah, and Golden Tiger. What can we do to reduce the fluctuations for Golden Tiger? (02/06/2018)

    Xin Stars and 08 Online are successful because they had an early start. Games such as Golden HoYeah and Fafafa have no legal issues. Companies like Company A have studied the laws thoroughly and they understand what they cannot do. They would draw a line. Companies with Hondreds of millions in revenue do not cross these lines simply to get a larger piece of the market. They have very strict requirements in terms of legal compliance. As for Star 3 in 1, the game itself is very casual and people can pay to play for one whole month. They consume a lot of our bandwidth and more than 90% of them do not pay. The MAU is approximately 700,000 to 800,000. We only collected a little more than NT$20 million and it is not enough. We will think of ways to encourage non-paying players to pay a little to make the game more fun.
  • With regard to arcade games in the Malaysian market, sales have dropped due to the election. How much of the sales have the Company recovered so far? (08/14/2018)

    We still need to adapt to the policies of the new government in the Malaysian market, and the transition consolidation period would take 3-4 months. We expect to recover 30%, and we also took opportunities to sell a batch of products in July. We will naturally continue to obtain the information on the latest market developments.
  • Arcade game revenue from January to July has declined in comparison to the previous year. Aside from the poor performance in the Malaysian market, what are the reasons for declines in China and the United States? Have the adjustments in the arcade gaming venues opened in China in recent years come to a close or does the market need more time for adjustments? Will the arcade gaming venues set to open in shopping centers in the second half of the year open on schedule? What is the sales status of fishing games and skill games in the United States? Can they make up for the previous decline in AWP? (08/14/2018)

    In China, the main factor was that we had sold more slot machines and ticket machines last year, but the inventory for these two types of machines has remained high this year. Therefore, we could not achieve the outstanding new orders as we did in the previous year. Due to the slowdown in the opening of new venues in tier 2 and tier 3 cities, we would indeed need time to observe market conditions. Fishing games are our mainstay in the United States and we have also faced excess inventory issues since the second quarter. Performance has also been poor when compared to the same period last year. We will develop new fishing games in the third quarter and launch them in the fourth quarter. As for skill games, we have yet to achieve a major breakthrough with our products.
  • Will revenue from arcade games in the second half of the year exceed levels in the first half of the year? (08/14/2018)

    The performance of arcade games in the second half of the year was generally better than the first half. We have new products that we plan to launch in the second half of the year, but we may not be able to attain the same level of sales as in the previous year.
  • Please explain the development status of Hero of Robots 2. Do you have a specific launch date? In addition to Mainland China and Taiwan, do you have plans for launching the product in other areas such as Japan and Southeast Asia? (08/14/2018)

    The Hero of Robots 2 children's card game is now being developed based on the original plan. We expect to launch the game in Taiwan in the first quarter of next year. We also plan on launching the game in the Chinese and Southeast Asian market. Our primary focus will be the Chinese market.
  • What is the introduction progress of the two products produced in collaboration with Tencent? (08/14/2018)

    Fish Gamer: After Tencent started the introduction process at the end of last year, revenue has achieved sufficient growth. Its revenue has made significant contributions to the Company since March 2018. Ocean King: Introduction began in July and we have seen a substantial increase in revenue.
  • The Company has licensed four mobile gaming products to the Chinese and Southeast Asian markets in the second quarter. Can you describe the current progress of these products? (08/14/2018)

    The two mobile games licensed to the Southeast Asian market have been launched. The consumption habits in Southeast Asian countries appear to be quite different from our expectations, and we need to modify the contents of the game and enhance promotion and marketing. We are still exploring the market, and we will report if we have achieved better performance. The two games licensed to China were Knights of Valour 2 and Ocean King. The second generation will be marketed in the fourth quarter as early as possible. Ocean King has been launched in China and it appears that it would only contribute to revenue in the fourth quarter.
  • Mangan Dahen: Is the growth in online games this year mostly contributed by Mangan Dahen? (08/14/2018)

    Mangan Dahen is a product that targets Taiwan as the main source of revenue. Mangan Dahen was launched in the first quarter of 2016, and the growth in revenue in Online Business Division's mobile games would include both Star 3 in 1 and Mangan Dahen in addition to Mangan Dahen.
  • Will the Company continue to provide overseas licensing for the five games (Star 3 in 1, Mangan Dahen, Golden HoYeah, Golden Tiger, and Good Luck 777)? What are the main issues considered for overseas licensing? Is revenue from overseas licensing recognized in online business On-line and arcade business On-line or will they be recognized together? (08/14/2018)

    With regard to the five mobile games you mentioned, we have developed a separate version for Mangan and licensed it to overseas markets. We do not have overseas licensing plans for the other four games. However, both Golden HoYeah and Golden Tiger have been launched in overseas markets. If we have other partners or opportunities for cooperation, we will not rule out such opportunities. As for the Division under which revenue would be recognized, it will be determined based on the unit responsible for the app.
  • Why did the Company terminate the contract with Company A? Was the termination initiated by the Company or Company A?

      Due to rapid changes in the online game market, Company A reviewed the market environment and adjusted its development strategy after nearly two years of collaboration with the Company. It expressed its intent to discontinue the partnership and both parties agreed to terminate the partnership. The Company agreed to terminate the original partnership with Company A in the resolution of the Board of Directors on June 27th, 2017. We estimate that by the end of July 2017, all games previously authorized by Company A shall be removed from the Company's webpages and platforms. The Company shall take over this platform and member players and rebrand the platform as "Golden HoYeah" game platform to continue to provide games produced by the Company and maintain services on the platform. The rights and interests of the players will not be affected.
  • The Company's stock price has fallen so much since the shareholder's meeting this year. If revenue from the Fafafa game was not as poor as expected, why does the stock price remain low? Why doesn't the Company buy back treasury stocks to st

      The Company focuses on the operations of its core businesses. The stock price is an expression of market conditions and shareholder's structure and cannot be controlled by the Company. In addition, the Company's profits are always provided as feedback to shareholders and the dividends distribution rate has been very high. The retained earnings are retained as operating capital and the Company's operations may be affected if they are used to purchase treasury stocks. The market's response to the stock price is temporary. Investors should be more concerned about business performance instead of financial operations in response to stock prices. However, if the Company has plans for employee bonuses at a time of irrational decline in stock prices, we will request instructions from supervisors and the Board of Directors regarding the feasibility of treasury stocks.
  • The Company's performance has been outstanding this year but the Company's price–earnings ratio is severely underrated when compared to other high-price stocks. Does the Company have the resolve to defend its stock price?

      The Company focuses on the operations of its core businesses. The stock price is an expression of market conditions and shareholder's structure and cannot be controlled by the Company. The Company does not intend to focus on the stock price and investors must consider their own financial strengths and risk tolerance and manage their positions for investment.
  • Why didn't the Company appoint a male spokesperson which might help respond to irrational shareholders?

      The opinions of shareholders shall be forwarded to supervisors and the Board of Directors as reference for arrangements on the candidate.
  • Please discuss the Company's views on the fourth quarter and future prospects. How is the Company's performance in self-produced games since the termination of the contract with Company A in Australia in June? Will there be urgent orders from th

       In the fourth quarter, even though October would appear to be the lowest point in the quarter, business will grow in November and December. Although the revenue in the fourth quarter may not reach standards in the third quarter, the Company's EPS has reached NT$9.82 as of the end of the third quarter. We intend to reach the annual revenue we attained in the previous year. In terms of the Company's current profitability structure, if our revenue can be close to the revenue of the previous year, the profitability may be better than the previous year.
       If we continue the operating structure, we expect stable growth in the next year.
       We announced the termination of the contract with the Australian gambling company Aristocrat in the shareholder's meeting at the end of June. We estimated a reduction in revenue of NT$28 million each month and a reduction in profits of NT$7 million per month. It would be difficult for the profitability in the entire year to exceed levels in the previous year. However, under the leadership of the President Mr. Chen and with the hard work of the team, our performance has been better than expected.
       In terms of arcade games, we will continue to focus on the markets in China, Southeast Asia, and the United States. We will also launch new products such as VR and children's card games.
       In terms of online games, we renamed the "Fafafa" game developed in collaboration with Aristocrat to "Golden HoYeah" in August and maintained a line-up of more than 10 games. With revenue from the "Star 3 in 1" game platform and overseas royalties, we expect to achieve stable growth in overall revenue next year.
      However, the performance of new products in the gaming industry must be tested by the market before conclusions can be drawn. The greatest risk associated with arcade games is the change of regulations in different countries. The uncertainty in revenue is high and investors should pay attention to the impact of these risks on revenue.
      There will not be urgent orders from the Italian market this year like those in the previous year.
  • The Company's performance has been outstanding this year but the Company's price–earnings ratio is severely underrated when compared to other high-price stocks. Does the Company have the resolve to defend its stock price?

        The capital market has recently experienced higher levels of volatility due to the elections in United State and small & medium stock indexes have been oversold. We will continue to communicate with long-term foreign funds and life insurance companies and encourage them to become long-term shareholders of the Company. This will reduce volatility in stock prices which would not experience such fluctuations when revenue falls short of expectations for a few months. We will ask the Chairman and the President regarding their thoughts and opinion on treasury stocks. Thank you for your support.
  • The Company's stock price has fallen so much since the shareholder's meeting this year. Is there a reason for declining? Is there a possibility of buying back treasury stocks?

        The Company's stock price had been livelier in the first half of the year. The Chairman was a bit conservative in his views on the second half of the year. In addition, the policy changes in Italy were also exceptional and related revenue were lower than expected. However, Southeast Asia provides huge momentum for growth in revenue. Overall, the Company has achieved tremendous growth this year and the stock price is now exhibits signs of over-dropping. For long-term investors, both the cash yield of IGS's stocks and the stock deductible rate are considered to be very high. We provide this information as reference for long-term investors. We will ask supervisors and the Board of Directors regarding the feasibility of buying back treasury stocks.
  • The Company's revenue in April 2016 was the second highest in its history. How did it happen? Will such great performance persist in the future? Why did the stock price respond negatively?

        The Company's momentum for growth in arcade games had been very strong in April and it included the main markets of China, Southeast Asia, and Italy. In addition, the growth in revenue from the gambling game Fafafa platform continued to create new highs for the game and revenue exceeded expectations in April. The subsequent revenue may continue along similar trends but we must continue to observe the actual performance and related development of the product lines in the market. The increase in the stock price has been more substantial this year and the Company has been closely scrutinized by the competent authority. The Company's stocks were essentially classified as full-cash delivery stocks in April 2016 and the Company has sought methods to clarify with the competent authority. We hope that the competent authority would not use such methods to penalize companies that have achieved large-scale growth in profitability.
  • The Company's revenue in March 2016 was exceptional. How did it happen? Will such great performance persist in the future?

        The Company's momentum for growth in arcade games had been very strong in March and it included the main markets of China, Southeast Asia, and Italy. In addition, the growth in revenue from the gambling game Fafafa continued and it appears that the growth may hold steady in April. We must continue to observe the actual performance and related development of the product lines in the market.
  • The Company has achieved substantial growth in revenue at the end of the previous year compared to past years and it has exhibited signs of returning to EPS levels of more than NT$10. What is the reason? What is the Company's view on future revenue?

        IGS's revenue began its rapid growth due to revenue from arcade games at the end of the previous year as economy recovered in the main markets in China and Southeast Asia. The gambling game platform established in collaboration with the major Australian slot machine company Aristocrat began to grow. In addition, the first quarter was the peak season for online games and the performance of chess and card games often reach their highest levels in the year after the new year. Overall, we expect positive growth in the revenue of the first quarter.
  • Investor Relations Contacts

    Shareholder services:Ssu-Yu Sung
    Contact Number:02-22995048#1228

    Investor communication platform:
    Acting Spokesperson:A-Chien Chen, President
    Contact Number:02-22995048#1300


  • Stock transfer agency

    Department of Stock Affairs, Capital Securities Corporation
    Address:B2, No. 97, Section 2, Dunhua South Road, Taipei City (10601)