Exhibit 99.3
2023 Annual Business Report
Table of Contents
1.Business Overview
(1)Business Results and Financial Statements for the Past Three Fiscal Years (2021 – 2023)
2.Company Overview
(1)Registered Purpose of the Company
(2)Description of Primary Business
(3)Problems Confronting the Company
(4)Business Offices and Game Development Facilities
(5)Stock
(6)Debenture
(7)Major Shareholders
(8)Investment in Other Companies
(9)Directors Holding Concurrent Positions
(10)Material Transactions with Related Parties
(11)Significant Creditors
(12)Employees
(13)Directors and Auditors
(14)Material Events after the End of Fiscal Year 2023
3. Consolidated Financial Statements as of and for the fiscal years ended December 31, 2023 and 2022
(1)Consolidated Financial Positions
(2)Consolidated Comprehensive Income
(3)Consolidated Statements of Changes in Equity
(4)Consolidated Statements of Cash Flows
4. Separate Financial Statements as of and for the fiscal years ended December 31, 2023 and 2022
(1)Financial Positions
(2)Comprehensive Income
(3)Statements of Appropriation of Retained earnings
(4)Statements of Changes in Equity
(5)Statements of Cash Flows
1. Business Overview
(1)Business Results and Financial Statements for the Past Three Fiscal Years (2021 – 2023)
(In thousands of Korean Won)
Category | 2023 | 2022 | 2021 | |||||||||||||||||
Current assets | 320,313,123 | 250,876,266 | 219,505,575 | |||||||||||||||||
• Quick assets | 320,313,123 | 250,876,266 | 219,505,575 | |||||||||||||||||
Non-current assets | 56,133,360 | 41,433,074 | 39,159,998 | |||||||||||||||||
• Investment asset | 35,451,234 | 26,732,334 | 21,679,845 | |||||||||||||||||
• Property and Equipment, net | 4,179,602 | 3,520,385 | 5,608,320 | |||||||||||||||||
• Intangible asset | 5,989,596 | 3,867,939 | 3,228,635 | |||||||||||||||||
• Other non-current asset | 5,279,592 | 1,574,623 | 1,701,669 | |||||||||||||||||
Total assets | 376,446,483 | 292,309,340 | 258,665,573 | |||||||||||||||||
Current liabilities | 41,707,393 | 28,335,116 | 48,803,832 | |||||||||||||||||
Non-current liabilities | 3,977,710 | 3,382,407 | 4,184,648 | |||||||||||||||||
Total liabilities | 45,685,103 | 31,717,523 | 52,988,480 | |||||||||||||||||
Share capital | 3,474,450 | 3,474,450 | 3,474,450 | |||||||||||||||||
Capital surplus | 27,482,683 | 27,482,683 | 27,482,683 | |||||||||||||||||
Other components of equity | - | - | - | |||||||||||||||||
Retained earnings | 299,804,247 | 229,634,684 | 174,719,960 | |||||||||||||||||
Total equity | 330,761,380 | 260,591,817 | 205,677,093 | |||||||||||||||||
Revenues | 242,775,498 | 232,717,405 | 288,258,376 | |||||||||||||||||
Operating income | 70,755,035 | 62,144,800 | 78,174,467 | |||||||||||||||||
Net income before income tax | 92,062,740 | 75,203,609 | 92,546,064 | |||||||||||||||||
Net income | 70,169,563 | 54,914,724 | 64,732,833 |
2. Company Overview
(1)Registered Purpose of the Company
1)Software consulting, development and supply
2)Development and sales of software and CD
3)Information-technology-related software development
4)Production, development, distribution, sales, and consulting of software, including game software, as well as corresponding licensing
5)Online network game services
6)Applied package-related software development
7)Production and sales of computer programs
8)Import and export of software
9)E-commerce
10) Character development business
11) Animation business
12) Real estate leasing
13) Service-area restaurant business
14) Media-related business
15) Printing and publication
16) Record & video production and distribution
17) Production, development, distribution, sales, and consulting of digital content, including digital content based on the technology of NFT and blockchain as well as corresponding licensing
18)Sports facility business including golf practice facilities and screen golf courses
19)Any other businesses incidental to the above businesses
(2)Description of Primary Business
Gravity Co., Ltd. (the “Company”) is the developer of Ragnarok Online, an MMORPG, which was launched in August 2002 and is commercially offered in 91 markets worldwide, including Korea, Japan, Taiwan, Thailand, Southeast Asia, the United States, Europe and Middle East as of December 31, 2023.
Having strong global network and success from Ragnarok Online, the Company is expanding its business areas from online game development and publishing to cultural contents business based on various platforms, such as development of games for smartphones, console and IPTV, and animation and game character merchandising.
In addition, the Company has 8 subsidiaries, such as Gravity NeoCyon, Inc. in Korea, Gravity Interactive, Inc. in the United States, Gravity Communications Co., Ltd in Taiwan. Gravity Game Tech Co., Ltd. in Bangkok, Thailand, PT Gravity Game Link in Jakarta, Indonesia, Gravity Game Arise Co., Ltd. in Tokyo, Japan, GRAVITY GAME HUB PTE., Ltd in Singapore and GRAVITY GAME VISION LIMITED in Hong Kong.
(3)Problems Confronting the Company
Since the Company operates in a highly competitive industry, the Company is making every effort to enhance its development capacity and to maintain and increase its market share in overseas markets to preserve its competitive advantage.
The Company is in need of diversified revenue structure, continuous global market expansion and new business initiatives for sustainable revenue growth. The Company is doing its best diversely to expand new markets, to publish mobile games, to develop mobile games and to do IP licensing business.
(4)Business Offices and Game Development Facilities
Classification | Location | |||||||
Head Office | (Nuritkum Square R&D Tower) 15F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea | |||||||
Game Development Facilities | (Nuritkum Square R&D Tower) 15F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea |
(5)Stock
1) Total number of shares
(As of December 31, 2023)
Total number of shares authorized | Total number of shares issued | Total number of shares unissued | ||||||||||||
40,000,000 shares | 6,948,900 shares | 33,051,100 shares |
2) Type of Stock issued (Par value per share: KRW 500)
(As of December 31, 2023)
Type | Number of shares | Total par value | % | |||||||||||||||||
Registered common stock | 6,948,900 shares | KRW 3,474,450,000 | 100 % |
(6)Debenture: None.
(7)Major Shareholders
(As of December 31, 2023)
Shareholder | Shares Owned | % | Transaction with the Company | |||||||||||||||||
GungHo Online Entertainment, Inc. | 4,121,737 | 59.31 | - | |||||||||||||||||
Others | 2,827,163 | 40.69 | - | |||||||||||||||||
Total | 6,948,900 | 100.00 | - |
(8)Investment in Other Companies
(As of December 31, 2023)
Companies | Relationship with the Company | |||||||||||||||||||||||||||||||||||||
Name | Location | Common Stock | Main business | Shares owned | % | Relationship | ||||||||||||||||||||||||||||||||
Gravity Interactive, Inc. | California, USA | USD 10,540,000 | Online and Mobile Game Service | 290,000 | 100.00% | Subsidiary | ||||||||||||||||||||||||||||||||
Gravity NeoCyon, Inc. | Seoul, Korea | KRW 3,990,990,000 | Mobile game development | 794,440 | 99.53% | Subsidiary | ||||||||||||||||||||||||||||||||
Gravity Communications Co., Ltd | Taipei, Taiwan | NTD 155,100,000 | Online and Mobile Game Service | 15,510,000 | 100.00% | Subsidiary | ||||||||||||||||||||||||||||||||
PT Gravity Game Link | Jakarta, Indonesia | IDR 43,221,000,000 | Online and Mobile Game Service | 3,025,470 | 70.00% | Subsidiary | ||||||||||||||||||||||||||||||||
Gravity Game Tech Co., Ltd. | Bangkok, Thailand | THB 88,049,940 | Online and Mobile Game Service | 8,804,994 | 100.00% | Subsidiary | ||||||||||||||||||||||||||||||||
Gravity Game Arise Co., Ltd. | Tokyo, Japan | JPY 100,000,000 | Online and Mobile Game Service | 120,000 | 100.00% | Subsidiary | ||||||||||||||||||||||||||||||||
Gravity Game Hub PTE., Ltd. | Singapore | SGD 6,819,991 | Online and Mobile Game Service | 682,000 | 100.00% | Subsidiary | ||||||||||||||||||||||||||||||||
Gravity Game Vision., Ltd. | Hong Kong | HKD 3,900,001 | Online and Mobile Game Service | 39,001 | 100.00% | Subsidiary |
(9)Directors Holding Concurrent Positions
Name | Company | |||||||||||||||||||
Name | Position | Responsibility | ||||||||||||||||||
Hyun Chul Park | Gravity Co., Ltd. | CEO | Overall management | |||||||||||||||||
Gravity NeoCyon, Inc. | Executive Director | Chief Operating Officer | ||||||||||||||||||
Gravity Interactive, Inc. | President | - | ||||||||||||||||||
Yoshinori Kitamura | Gravity Co., Ltd. | Executive Director | Chief Operating Officer Chief Compliance Officer | |||||||||||||||||
Gravity Interactive, Inc. | CEO | Overall management | ||||||||||||||||||
Gravity NeoCyon, Inc. | CEO | Overall management | ||||||||||||||||||
Gravity Communications Co., Ltd. | CEO | Overall management | ||||||||||||||||||
PT Gravity Game Link | CEO | Overall management | ||||||||||||||||||
Gravity Game Tech Co., Ltd. | CEO | Overall management | ||||||||||||||||||
Gravity Game Arise Co., Ltd. | CEO | Overall management | ||||||||||||||||||
Gravity Game Hub PTE., Ltd. | CEO | Overall management | ||||||||||||||||||
Gravity Game Vision., Ltd. | CEO | Overall management | ||||||||||||||||||
Heung Gon Kim | Gravity Co., Ltd. | Executive Director | Chief Financial Officer | |||||||||||||||||
Gravity NeoCyon, Inc. | Executive Director | Chief Financial Officer | ||||||||||||||||||
Gravity Interactive, Inc. | Vice President | - | ||||||||||||||||||
Gravity Communications Co., Ltd. | Executive Director | Chief Financial Officer | ||||||||||||||||||
PT Gravity Game Link | Executive Director | - | ||||||||||||||||||
Gravity Game Tech Co., Ltd. | Executive Director | - | ||||||||||||||||||
Gravity Game Arise Co., Ltd. | Executive Director | - | ||||||||||||||||||
Gravity Game Hub PTE., Ltd. | Executive Director | Chief Financial Officer | ||||||||||||||||||
Gravity Game Vision., Ltd. | Executive Director | Chief Financial Officer |
(10)Material Transactions with Related Parties
① Sales and purchases
(In thousands of Korean Won)
Nature | Related Companies | 2023 | 2022 | |||||||||||||||||||||||
Sales | Purchases | Sales | Purchase | |||||||||||||||||||||||
Parent company | GungHo Online Entertainment, Inc. | 17,681,836 | 15,379 | 24,812,723 | 20,319 | |||||||||||||||||||||
Related company | GungHo Online Entertainment America | - | 54,884 | - | 42,479 | |||||||||||||||||||||
Subsidiaries | Gravity Interactive, Inc. | 10,194,989 | 1,604,089 | 13,180,944 | 1,462,367 | |||||||||||||||||||||
Gravity NeoCyon, Inc. | 353,437 | 5,895,579 | 507,777 | 7,064,199 | ||||||||||||||||||||||
Gravity Communications Co., Ltd.(*1) | 19,240,621 | 4,584,439 | 19,256,844 | 6,326,904 | ||||||||||||||||||||||
PT Gravity Game Link | 126,912 | 151,217 | 360,061 | 484,278 | ||||||||||||||||||||||
Gravity Game Tech Co., Ltd. | 7,510,241 | 60,685 | 7,583,917 | 56,087 | ||||||||||||||||||||||
Gravity Game Arise Co., Ltd. | 10,032 | 3,191,285 | 27,928 | 3,401,736 | ||||||||||||||||||||||
Gravity Game Hub PTE., Ltd. | 32,108,671 | - | 892,325 | - | ||||||||||||||||||||||
Gravity Game Vision Limited | 15,286,908 | - | 13,257,431 | - | ||||||||||||||||||||||
Total | 102,513,647 | 15,557,557 | 79,879,950 | 18,858,369 |
(*1) In 2023 sales, the dividend received KRW 12,072,740 thousand is included, and in 2022 sales, the dividend received KRW 8,839,924 thousand is included.
② Receivables and Payables
(In thousands of Korean Won)
Nature | Related Companies | 2023 | 2022 | |||||||||||||||||||||||||||||
Receivables | Payables | Receivables | Payables | |||||||||||||||||||||||||||||
Parent company | GungHo Online Entertainment, Inc. | 1,839,847 | 2,685 | 2,707,640 | 2,804 | |||||||||||||||||||||||||||
Related company | GungHo Online Entertainment America | - | 1,380 | - | 29,692 | |||||||||||||||||||||||||||
Subsidiaries | Gravity Interactive, Inc. | 3,079,218 | 559,178 | 3,591,765 | 540,346 | |||||||||||||||||||||||||||
Gravity NeoCyon, Inc. | 364,676 | 1,020,207 | 460,846 | 904,356 | ||||||||||||||||||||||||||||
Gravity Communications Co., Ltd. | 1,214,755 | 1,217,102 | 1,581,356 | 1,696,212 | ||||||||||||||||||||||||||||
PT Gravity Game Link | 26,426 | 47,333 | 412,174 | 270,362 | ||||||||||||||||||||||||||||
Gravity Game Tech Co., Ltd. | 1,818,381 | 266,354 | 1,848,604 | 158,370 | ||||||||||||||||||||||||||||
Gravity Game Arise Co., Ltd. | 31,145 | 360,322 | 135,588 | 775,877 | ||||||||||||||||||||||||||||
Gravity Game Hub PTE., Ltd. | 6,804,745 | 4,213 | 707,855 | - | ||||||||||||||||||||||||||||
Gravity Game Vision Limited | 1,322,583 | 921 | 7,359,665 | - | ||||||||||||||||||||||||||||
Total | 16,501,776 | 3,479,695 | 18,805,493 | 4,378,019 |
(11)Significant Creditors: The Company had no significant creditors As of December 31, 2023.
(12)Employees
(As of December 31, 2023)
Category | Directors & Officers | Developers | Marketing/Operating | Finance/Administration | Total | |||||||||||||||||||||||||||
Employees | 12 | 228 | 101 | 49 | 390 |
(13)Directors and Auditors
(As of December 31, 2023)
Name | Position | Main work | Transaction with the Company | |||||||||||||||||
Hyun Chul Park | CEO | Chief Executive Officer | - | |||||||||||||||||
Yoshinori Kitamura | Executive Director | Chief Operating Officer Chief Compliance Officer | - | |||||||||||||||||
Heung Gon Kim | Executive Director | Chief Financial Officer | - | |||||||||||||||||
Kazuki Morishita | Executive Director | - | - | |||||||||||||||||
Kazuya Sakai | Executive Director | - | - | |||||||||||||||||
Jung Yoo | Independent Director | Member of audit committee | - | |||||||||||||||||
Yong Seon Kwon | Independent Director | Member of audit committee | - | |||||||||||||||||
Kee Woong Park | Independent Director | Member of audit committee | - | |||||||||||||||||
Hyo Eun Lim | Independent Director | - | - |
(14)Material Events after the end of fiscal year 2023: None.
3. Consolidated Financial Statements as of and for the fiscal year ended December 31, 2023 and December 31, 2022
(1)Consolidated Statements of Financial Position
GRAVITY CO., LTD. (In thousands of Korean Won)
December 31, 2023 | December 31, 2022 | ||||||||||||||||
Assets | |||||||||||||||||
Current Assets | 546,899,006 | 421,767,238 | |||||||||||||||
Cash and cash equivalents | 184,081,815 | 169,877,341 | |||||||||||||||
Short-term financial instruments | 277,215,000 | 167,000,000 | |||||||||||||||
Accounts receivable, net | 71,212,897 | 77,256,816 | |||||||||||||||
Other receivable, net | 3,637,586 | 139,785 | |||||||||||||||
Prepaid expenses | 2,993,884 | 3,332,317 | |||||||||||||||
Other current financial assets | 4,438,717 | 3,370,146 | |||||||||||||||
Other current assets | 3,319,107 | 790,833 | |||||||||||||||
Non-current Assets | 31,281,715 | 22,326,742 | |||||||||||||||
Property and equipment, net | 10,150,750 | 8,140,129 | |||||||||||||||
Intangible assets, net | 6,369,958 | 3,869,478 | |||||||||||||||
Other non-current financial assets | 1,824,076 | 2,175,769 | |||||||||||||||
Other non-current assets | 6,984,797 | 2,481,845 | |||||||||||||||
Deferred tax assets | 5,952,134 | 5,659,521 | |||||||||||||||
Total assets | 578,180,721 | 444,093,980 | |||||||||||||||
Liabilities | |||||||||||||||||
Current liabilities | 106,433,493 | 105,709,908 | |||||||||||||||
Account payables | 61,777,889 | 73,549,144 | |||||||||||||||
Deferred revenue | 18,092,463 | 18,543,037 | |||||||||||||||
Withholdings | 3,072,036 | 3,201,011 | |||||||||||||||
Accrued expenses | 2,313,022 | 2,040,357 | |||||||||||||||
Income tax payable | 16,927,054 | 5,469,061 | |||||||||||||||
Other current liabilities | 4,251,029 | 2,907,298 | |||||||||||||||
Non-current liabilities | 8,019,266 | 8,204,251 | |||||||||||||||
Long-term account payables | 677,520 | 373,989 | |||||||||||||||
Long-term deferred revenue | 1,784,849 | 30,239 | |||||||||||||||
Other non-current liabilities | 3,174,635 | 4,968,325 | |||||||||||||||
Deferred tax liabilities | 2,382,262 | 2,831,698 | |||||||||||||||
Total liabilities | 114,452,759 | 113,914,159 | |||||||||||||||
Equity attributable to owners of the Parent Company | 463,087,831 | 329,527,917 | |||||||||||||||
Share capital | 3,474,450 | 3,474,450 | |||||||||||||||
Common shares | 3,474,450 | 3,474,450 | |||||||||||||||
Capital surplus | 27,098,264 | 27,098,264 | |||||||||||||||
Other components of equity | 4,016,535 | 2,475,675 | |||||||||||||||
Retained earnings | 428,498,582 | 296,479,528 | |||||||||||||||
Non-controlling interest | 640,131 | 651,904 | |||||||||||||||
Total equity | 463,727,962 | 330,179,821 | |||||||||||||||
Total liabilities and equity | 578,180,721 | 444,093,980 |
(2)Consolidated Statements of Comprehensive Income
GRAVITY CO., LTD. (In thousands of Korean Won)
2023 | 2022 | ||||||||||||||||
Revenues | 725,515,935 | 463,617,872 | |||||||||||||||
Online games | 81,017,362 | 89,256,406 | |||||||||||||||
Mobile games | 629,604,084 | 358,771,544 | |||||||||||||||
Other revenue | 14,894,489 | 15,589,922 | |||||||||||||||
Cost of revenues | 484,958,333 | 267,365,143 | |||||||||||||||
Gross profit | 240,557,602 | 196,252,729 | |||||||||||||||
Selling, general and administrative expenses | 79,552,396 | 91,410,933 | |||||||||||||||
Operating Profit | 161,005,206 | 104,841,796 | |||||||||||||||
Non-operating income and expenses | 7,693,403 | 5,039,981 | |||||||||||||||
Financial income | 23,266,528 | 15,953,466 | |||||||||||||||
Financial costs | (14,934,727) | (10,779,361) | |||||||||||||||
Other non-operating income | 913,359 | 605,316 | |||||||||||||||
Other non-operating expenses | (1,551,757) | (739,440) | |||||||||||||||
Profit before income tax expense | 168,698,609 | 109,881,777 | |||||||||||||||
Income tax expense | 36,716,548 | 26,824,189 | |||||||||||||||
Profit for the year | 131,982,061 | 83,057,588 | |||||||||||||||
Owners of the Parent Company | 132,019,054 | 83,161,723 | |||||||||||||||
Non-controlling interests | (36,993) | (104,135) | |||||||||||||||
Other comprehensive income | 1,566,080 | 281,375 | |||||||||||||||
Items that may be subsequently reclassified to profit or loss | 1,558,944 | 285,034 | |||||||||||||||
Foreign currency translation adjustments | 1,536,445 | 297,848 | |||||||||||||||
Non-controlling interest of foreign currency translation adjustments | 22,499 | (12,814) | |||||||||||||||
Items that will never be reclassified to profit or loss | 7,136 | (3,659) | |||||||||||||||
Remeasurement of defined benefit liabilities | 4,415 | (2,561) | |||||||||||||||
Non-controlling interest of remeasurement of defined benefit liabilities | 2,721 | (1,098) | |||||||||||||||
Total comprehensive income for the year | 133,548,141 | 83,338,963 | |||||||||||||||
Owners of the Parent Company | 133,559,914 | 83,457,010 | |||||||||||||||
Non-controlling interests | (11,773) | (118,047) | |||||||||||||||
Earnings per share attributable to the equity holders of the Parent Company | |||||||||||||||||
Basic earnings per share | 18,999 | 11,968 | |||||||||||||||
Diluted earnings per share | 18,999 | 11,968 |
(3)Consolidated Statements of Changes in Equity
GRAVITY CO., LTD. (In thousands of Korean Won)
Share capital | Capital surplus | Other components of equity | Retained Earnings | Total | Non-controlling interest | Total Equity | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | 3,474,450 | 27,098,264 | 2,180,388 | 213,317,805 | 246,070,907 | 769,951 | 246,840,858 | ||||||||||||||||||||||||||||||||||
Profit for the year | - | - | - | 83,161,723 | 83,161,723 | (104,135) | 83,057,588 | ||||||||||||||||||||||||||||||||||
Defined benefit obligation adjustments | - | - | (2,561) | - | (2,561) | (1,098) | (3,659) | ||||||||||||||||||||||||||||||||||
Gain on overseas operations translation | - | - | 297,848 | - | 297,848 | (12,814) | 285,034 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 3,474,450 | 27,098,264 | 2,475,675 | 296,479,528 | 329,527,917 | 651,904 | 330,179,821 | ||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | 3,474,450 | 27,098,264 | 2,475,675 | 296,479,528 | 329,527,917 | 651,904 | 330,179,821 | ||||||||||||||||||||||||||||||||||
Profit for the year | - | - | - | 132,019,054 | 132,019,054 | (36,993) | 131,982,061 | ||||||||||||||||||||||||||||||||||
Defined benefit obligation adjustments | - | - | 4,415 | - | 4,415 | 2,721 | 7,136 | ||||||||||||||||||||||||||||||||||
Gain on overseas operations translation | - | - | 1,536,445 | - | 1,536,445 | 22,499 | 1,558,944 | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | 3,474,450 | 27,098,264 | 4,016,535 | 428,498,582 | 463,087,831 | 640,131 | 463,727,962 |
(4) Consolidated Statements of Cash Flows
GRAVITY CO., LTD. (In thousands of Korean Won)
2023 | 2022 | ||||||||||||||||
Cash flows from operating activities | 132,429,737 | 98,278,652 | |||||||||||||||
Cash flows generated from operating activities | 150,231,732 | 124,674,561 | |||||||||||||||
Profit for the year | 131,982,061 | 83,057,588 | |||||||||||||||
Adjustments | 36,164,732 | 31,362,848 | |||||||||||||||
Changes in operating assets and liabilities | (17,915,061) | 10,254,125 | |||||||||||||||
Interest received | 10,434,574 | 3,032,676 | |||||||||||||||
Interest paid | (156,631) | (121,724) | |||||||||||||||
Income tax paid | (28,079,938) | (29,306,861) | |||||||||||||||
Cash Flows from investing activities | (116,579,700) | ) | (22,340,445) | ||||||||||||||
Cash inflow from investment activities | 24,103 | 19,708 | |||||||||||||||
Proceeds from disposal of property and equipment | 21,024 | 14,609 | |||||||||||||||
Decrease in other current financial assets | 3,079 | 5,099 | |||||||||||||||
Cash outflow from investment activities | (116,603,803) | (22,360,153) | |||||||||||||||
Increase in short-term financial instruments | (110,179,175) | (19,000,000) | |||||||||||||||
Purchase of property and equipment | (2,461,226) | (739,413) | |||||||||||||||
Purchase of intangible assets | (3,337,218) | (2,055,632) | |||||||||||||||
Increase in other current assets | - | (200) | |||||||||||||||
Increase in other non-current financial assets | (626,184) | (564,908) | |||||||||||||||
Cash Flows from Financing Activities | (4,083,272) | (3,917,977) | |||||||||||||||
Cash inflow from financing activities | - | - | |||||||||||||||
Cash outflow from financing activities | (4,083,272) | (3,917,977) | |||||||||||||||
Repayment of lease liabilities | (4,083,272) | (3,917,977) | |||||||||||||||
Effects of exchange rate changes on cash and cash equivalents | 2,437,709 | (1,247,832) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 14,204,474 | 70,772,398 | |||||||||||||||
Cash and cash equivalents at beginning of the year | 169,877,341 | 99,104,943 | |||||||||||||||
Cash and cash equivalents at end of the year | 184,081,815 | 169,877,341 |
4. Separate Financial Statements as of and for the fiscal year ended December 31, 2023 and December 31, 2022.
(1)Statements of Financial Position
GRAVITY CO., LTD. (In thousands of Korean Won)
December 31, 2023 | December 31, 2022 | ||||||||||||||||
Assets | |||||||||||||||||
Current Assets | 320,313,123 | 250,876,266 | |||||||||||||||
Cash and cash equivalents | 32,157,091 | 42,985,625 | |||||||||||||||
Short-term financial instruments | 249,000,000 | 167,000,000 | |||||||||||||||
Accounts receivable, net | 31,529,998 | 35,117,290 | |||||||||||||||
Other receivable, net | 1,760,646 | 961,918 | |||||||||||||||
Prepaid expenses | 1,148,345 | 1,556,323 | |||||||||||||||
Other current financial assets | 4,476,977 | 3,249,537 | |||||||||||||||
Other current assets | 240,066 | 5,573 | |||||||||||||||
Non-current Assets | 56,133,360 | 41,433,074 | |||||||||||||||
Investments in subsidiaries | 35,451,234 | 26,732,334 | |||||||||||||||
Property and equipment, net | 4,179,602 | 3,520,385 | |||||||||||||||
Intangible assets, net | 5,989,596 | 3,867,939 | |||||||||||||||
Other non-current financial assets | 1,164,926 | 2,048,028 | |||||||||||||||
Other non-current assets | 5,279,592 | 1,574,623 | |||||||||||||||
Deferred tax assets | 4,068,410 | 3,689,765 | |||||||||||||||
Total assets | 376,446,483 | 292,309,340 | |||||||||||||||
Liabilities | |||||||||||||||||
Current liabilities | 41,707,393 | 28,335,116 | |||||||||||||||
Accounts payables | 24,162,504 | 17,641,888 | |||||||||||||||
Deferred income | 4,627,119 | 4,258,298 | |||||||||||||||
Withholdings | 1,230,318 | 1,540,197 | |||||||||||||||
Accrued expenses | 1,101,738 | 881,213 | |||||||||||||||
Income tax payable | 8,270,305 | 2,406,367 | |||||||||||||||
Other current liabilities | 2,315,409 | 1,607,153 | |||||||||||||||
Non-current liabilities | 3,977,710 | 3,382,407 | |||||||||||||||
Long-term account payables | 677,520 | 373,989 | |||||||||||||||
Long-term deferred revenue | 1,790,097 | 30,239 | |||||||||||||||
Other non-current liabilities | 1,510,093 | 2,978,179 | |||||||||||||||
Total liabilities | 45,685,103 | 31,717,523 | |||||||||||||||
Equity | |||||||||||||||||
Share Capital | 3,474,450 | 3,474,450 | |||||||||||||||
Common shares | 3,474,450 | 3,474,450 | |||||||||||||||
Capital surplus | 27,482,683 | 27,482,683 | |||||||||||||||
Retained earnings | 299,804,247 | 229,634,684 | |||||||||||||||
Total equity | 330,761,380 | 260,591,817 | |||||||||||||||
Total liabilities and equity | 376,446,483 | 292,309,340 |
(2)Statements of Comprehensive Income
GRAVITY CO., LTD. (In thousands of Korean Won)
2023 | 2022 | ||||||||||||||||
Revenues | 242,775,498 | 232,717,405 | |||||||||||||||
Online games | 32,778,385 | 32,969,528 | |||||||||||||||
Mobile games | 209,449,600 | 198,512,493 | |||||||||||||||
Other revenue | 547,513 | 1,235,384 | |||||||||||||||
Cost of revenues | 121,571,928 | 112,512,407 | |||||||||||||||
Gross profit | 121,203,570 | 120,204,998 | |||||||||||||||
Selling, general and administrative expenses | 50,448,535 | 58,060,198 | |||||||||||||||
Operating Profit | 70,755,035 | 62,144,800 | |||||||||||||||
Non-operating income and expenses | 21,307,705 | 13,058,809 | |||||||||||||||
Financial income | 16,603,926 | 13,734,710 | |||||||||||||||
Financial costs | (7,260,236) | (9,975,732) | |||||||||||||||
Other non-operating income | 13,476,681 | 9,578,611 | |||||||||||||||
Other non-operating expenses | (1,512,666) | (278,780) | |||||||||||||||
Profit before income tax | 92,062,740 | 75,203,609 | |||||||||||||||
Income tax expense | 21,893,177 | 20,288,885 | |||||||||||||||
Profit for the year | 70,169,563 | 54,914,724 | |||||||||||||||
Other comprehensive income | - | - | |||||||||||||||
Total comprehensive income for the year | 70,169,563 | 54,914,724 |
(3)Statements of Appropriation of Retained earnings
GRAVITY CO., LTD. (In thousands of Korean Won)
2023 | 2022 | ||||||||||||||||
Confirmed disposition date: March 29, 2024 | Confirmed disposition date: March 31, 2023 | ||||||||||||||||
Retained earnings before appropriation | 299,804,247 | 229,634,684 | |||||||||||||||
Unappropriated retained earnings carried over from prior year | 229,634,684 | 174,719,960 | |||||||||||||||
Profit for the year | 70,169,563 | 54,914,724 | |||||||||||||||
Appropriation of retained earnings | - | - | |||||||||||||||
Unappropriated retained earnings to be carried forward | 299,804,247 | 229,634,684 |
(4) Statements of Changes in Equity
GRAVITY CO., LTD. (In thousands of Korean Won)
Share capital | Capital Surplus | Other components of equity | Retained Earnings | Total | |||||||||||||||||||||||||
Balance at January 1, 2022 | 3,474,450 | 27,482,683 | - | 174,719,960 | 205,677,093 | ||||||||||||||||||||||||
Profit for the year | - | - | - | 54,914,724 | 54,914,724 | ||||||||||||||||||||||||
Balance at December 31, 2022 | 3,474,450 | 27,482,683 | - | 229,634,684 | 260,591,817 | ||||||||||||||||||||||||
Balance at January 1, 2023 | 3,474,450 | 27,482,683 | - | 229,634,684 | 260,591,817 | ||||||||||||||||||||||||
Profit for the year | - | - | - | 70,169,563 | 70,169,563 | ||||||||||||||||||||||||
Balance at December 31, 2023 | 3,474,450 | 27,482,683 | - | 299,804,247 | 330,761,380 |
(5)Statements of Cash Flows
GRAVITY CO., LTD. (In thousands of Korean Won)
2023 | 2022 | ||||||||||||||||
Cash flows from operating activities | 85,687,105 | 45,514,786 | |||||||||||||||
Cash flows generated from operating activities | 82,075,516 | 59,578,964 | |||||||||||||||
Profit for the year | 70,169,563 | 54,914,724 | |||||||||||||||
Adjustments | 5,891,373 | 12,550,795 | |||||||||||||||
Changes in operating assets and liabilities | 6,014,580 | (7,886,555) | |||||||||||||||
Interest received | 8,427,882 | 2,964,848 | |||||||||||||||
Dividend received | 12,072,740 | 8,839,924 | |||||||||||||||
Interest paid | (91,294) | (61,533) | |||||||||||||||
Income tax paid | (16,797,739) | (25,807,417) | |||||||||||||||
Cash flows from investing activities | (94,593,238) | (26,443,349) | |||||||||||||||
Cash inflow from investment activities | 20,295 | 2,269 | |||||||||||||||
Decrease in other current financial assets | - | 901 | |||||||||||||||
Disposal of property and equipment | 20,295 | 1,368 | |||||||||||||||
Cash outflow from investment activities | (94,613,533) | (26,445,618) | |||||||||||||||
Acquisition of investments in subsidiaries | (8,718,900) | (5,052,489) | |||||||||||||||
Increase in short-term financial instruments | (81,999,800) | (19,000,000) | |||||||||||||||
Increase in other current financial assets | - | (200) | |||||||||||||||
Increase in other non-current financial assets | (545,000) | (500,000) | |||||||||||||||
Purchase of property and equipment | (704,398) | (291,433) | |||||||||||||||
Purchase of intangible assets | (2,645,435) | (1,601,496) | |||||||||||||||
Cash flows from financing activities | (2,060,721) | (2,049,532) | |||||||||||||||
Cash inflow from financing activities | - | - | |||||||||||||||
Cash outflow from financing activities | (2,060,721) | (2,049,532) | |||||||||||||||
Repayment of lease liabilities | (2,060,721) | (2,049,532) | |||||||||||||||
Effects of exchange rate changes on cash and cash equivalents | 138,320 | (638,402) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (10,828,534) | 16,383,503 | |||||||||||||||
Cash and cash equivalents at the beginning of the year | 42,985,625 | 26,602,122 | |||||||||||||||
Cash and cash equivalents at the end of the year | 32,157,091 | 42,985,625 |