6-K
GRAVITY Co., Ltd. (GRVY)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2022
Commission File Number 000-51138
GRAVITY Co., Ltd. ———————————————————————————————————————
(Translation of registrant’s name into English)
15F, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795, Korea
——————————————————————————————————————— (Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: [x] Form 20-F [ ] Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
RESULTS OF THE ANNUAL GENERAL MEETING OF SHAREHOLDERS OF GRAVITY CO., LTD.
Gravity Co., Ltd. (the “Company”) held its Annual General Meeting of Shareholders (the “AGM”) at the Conference Room # 2 located at 3F, Business Tower, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795 Korea at 10:00 a.m. on March 31, 2022.
The AGM was held with a quorum present and the agenda items were resolved by the shareholders in accordance with the Korean Commercial Code and the Company’s Articles of Incorporation as follows:
•Agendum 1: the shareholders approved the Company’s consolidated and separate financial statements as of and for the years ended December 31, 2021 and 2020 prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea, or Korean IFRS, and audited in accordance with Korean Standards on Auditing.
•Agendum 2: the shareholders approved the reappointment of eight directors, Messrs. Hyun Chul Park, Yoshinori Kitamura, Kazuki Morishita, Kazuya Sakai, Heung Gon Kim (who are inside directors), Jung Yoo, Yong Seon Kwon, and Kee Woong Park (who are independent directors)
•Agendum 3: the shareholders approved the amount of KRW 2,500,000,000 as the maximum amount of compensation payable to directors as a group for fiscal year 2022.
Furthermore, the Company’s 2021 Annual Business Report was presented to the shareholders at the AGM.
The Company’s Board of Directors, consisting of the eight reelected directors, held a meeting immediately following the AGM (the “Board Meeting”). At the Board Meeting, Mr. Hyun Chul Park was reappointed as Chief Executive Officer and Mr. Yoshinori Kitamura was reappointed as Chairman of the Board of Directors.
Messrs. Jung Yoo, Yong Seon Kwon, and Kee Woong Park were reappointed as Audit Committee members at the Board Meeting.
The Company expects to file the Company’s consolidated and separate financial statements, including the notes thereto, which are prepared in the Korean language prepared in accordance with Korean IFRS and audited in accordance with Korean Standards on Auditing as of and for the years ended December 31, 2021 and December 31, 2020 (“2021/2020 Korean IFRS consolidated and separate financial statements”) with the Financial Supervisory Service of Korea no later than April 14, 2022. The condensed English translation version of the 2021/2020 Korean IFRS consolidated and separate financial statements is expected to be submitted to the United States Securities and Exchange Commission on Form 6-K at the same time.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| GRAVITY CO., LTD. | |
|---|---|
| By: | /s/ Heung Gon Kim |
| Name: | Heung Gon Kim |
| Title: | Chief Financial Officer |
Date: March 31, 2022
Exhibit Index
| Exhibit No. | Description |
|---|---|
| 99. 1 | Gravity Reports Consolidated Financial Results for 2021 |
| 99. 2 | Gravity Reports Separate Financial Results for 2021 |
| 99. 3 | 2021Annual Business Report |
Document
Exhibit 99.1
GRAVITY REPORTS CONSOLIDATED FINANCIAL RESULTS FOR 2021
Seoul, South Korea, March 31, 2022 - GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or the “Company”), an online and mobile game developer and publisher based in South Korea, announces its consolidated financial results for the fiscal year ended December 31, 2021, prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. Financial statements are available on Edgar at http://www.sec.gov.
REVIEW OF FINANCIAL RESULTS
Revenues and Cost of Revenues
Revenues for 2021 were KRW 413,938 million (US$ 348,260 thousand), representing a 2.0% increase from KRW 405,953 million for 2020.
Online game revenue decreased by 15.8% to KRW 75,370 million (US$ 63,411 thousand) in 2021 from KRW 89,545 million in 2020. The decrease in online game revenue was mostly decreased revenues from Ragnarok Online in Thailand.
Mobile game revenue for 2021 was KRW 320,164 million (US$ 269,365 thousand), representing a 7.3% increase from KRW 298,324 million for 2020. This increase was mainly due to increased revenues from Ragnarok X: Next Generation which was launched in Southeast Asia on June 18, 2021 and Ragnarok Origin which was launched in Japan on June 28, 2021 and such increase was partially offset by decreased revenues from Ragnarok M: Eternal Love and Ragnarok Origin in Korea.
Other revenue was KRW 18,404 million (US$ 15,484 thousand) in 2021, representing a 1.8% increase from KRW 18,084 million in 2020.
Cost of revenues was KRW 224,173 million (US$ 188,604 thousand) in 2021, representing a 6.2% decrease from KRW 239,045 million in 2020. The decrease in cost of revenues was mainly due to decreased commissions paid for service fees of royalty payments, mobile platforms and outsourcing fees for game services related to Ragnarok M: Eternal Love.
As a result of the foregoing factors, gross profit for 2021 was KRW 189,765 million (US$ 159,656 thousand), representing a 13.7% increase from KRW 166,908 million for 2020.
Selling, General & Administrative Expenses (“SG&A”)
The Company’s total SG&A increased 19.1% to KRW 92,201 million (US$ 77,572 thousand) in 2021 compared with KRW 77,434 million in 2020. This increase in SG&A was mostly attributable to increased advertising expenses, salaries, and research and development expenses.
Based on the foregoing factors, the Company recorded an operating income of KRW 97,564 million (US$ 82,084 thousand) in 2021, compared to an operating income of KRW 89,474 million in 2020.
Non-operating Income and Non-operating Expenses
Non-operating income for 2021 was KRW 1,737 million (US$ 1,461 thousand) compared with non-operating expenses KRW 1,463 million in 2020. This increase in non-operating income was primarily due to increased gain on foreign currency transaction and decreased impairment loss on other non-current assets.
Profit before income tax for 2021 was KRW 99,301 million (US$ 83,545 thousand), compared with profit before income tax of KRW 88,011 million in 2020.
Gravity recorded a net profit of KRW 65,880 million (US$ 55,427 thousand) in 2021 compared with a net profit of KRW 62,556 million in 2020.
The balance of cash and cash equivalents and short-term financial instruments was KRW 247,105 million (US$ 207,898 thousand) as of December 31, 2021.
Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the rate of KRW 1,188.59 to US$1.00, the noon buying rate in effect on December 30, 2021 as quoted by the Federal Reserve Bank of New York.
Document
Exhibit 99.2
GRAVITY REPORTS SEPARATE FINANCIAL RESULTS FOR 2021
Seoul, South Korea, March 31, 2022 - GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or the “Company”), an online and mobile game developer and publisher based in South Korea, announces its separate financial results for the fiscal year ended December 31, 2021, prepared in accordance with International Financial Reporting Standards as adopted by the Republic of Korea. Financial statements are available on Edgar at http://www.sec.gov.
REVIEW OF FINANCIAL RESULTS
Revenues and Cost of Revenues
Revenues for 2021 were KRW 288,258 million (US$ 242,521 thousand), representing a 25.9% increase from KRW 228,996 million for 2020.
Online game revenue decreased by 20.4% to KRW 30,176 million (US$ 25,388 thousand) in 2021 from KRW 37,917 million in 2020. The decrease resulted largely from the decrease in revenues from Ragnarok Online in Thailand and Korea.
Mobile game revenue for 2021 was KRW 256,918 million (US$ 216,154 thousand), representing a 34.6% increase from KRW 190,926 million for 2020. This increase was mainly due to increased revenues from Ragnarok X: Next Generation which was launched in Southeast Asia on June 18, 2021 and Ragnarok Origin which was launched in Japan on June 28, 2021 and such increase was partially offset by decreased revenues from Ragnarok Origin in Korea and Ragnarok M: Eternal Love.
Other revenue was KRW 1,164 million (US$ 979 thousand) in 2021, representing a 662.5% increase from KRW 153 million in 2020.
Cost of revenues was KRW 141,815 million (US$ 119,314 thousand) in 2021, representing a 18.9% increase from KRW 119,227 million in 2020. The increase in cost of revenues was mainly due to increased commission paid related to game services for Ragnarok X: Next Generation.
As a result of the foregoing factors, gross profit for 2021 was KRW 146,443 million (US$ 123,207 thousand), representing a 33.4% increase from KRW 109,769 million for 2020.
Selling, General & Administrative Expenses (“SG&A”)
The Company’s total SG&A increased 28.6% to KRW 68,269 million (US$ 57,437 thousand) in 2021 compared with KRW 53,094 million in 2020. This increase in SG&A was mostly attributable to increased advertising expenses, commission paid, and research and development expenses.
Based on the foregoing factors, the Company recorded an operating income of KRW 78,174 million (US$ 65,770 thousand) in 2021, compared to an operating income of KRW 56,675 million in 2020.
Non-operating Income and Non-operating Expenses
Non-operating income for 2021 was KRW 14,372million (US$ 12,091 thousand) compared with non-operating expenses KRW 1,625 million in 2020. The increase in non-operating income was primarily due to increased dividend income.
Profit before income tax for 2021 was KRW 92,546 million (US$ 77,861 thousand), compared with profit before income tax of KRW 55,050 million in 2020.
Gravity recorded a net income of KRW 64,733 million (US$ 54,462 thousand) in 2021 compared with a net income of KRW 39,417 million in 2020.
The balance of cash and cash equivalents and short-term financial instruments was KRW 174,602 million (US$ 146,899 thousand) as of December 31, 2021.
Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the rate of KRW 1,188.59 to US$1.00, the noon buying rate in effect on December 30, 2021 as quoted by the Federal Reserve Bank of New York.
Document
Exhibit 99.3
2021 Annual Business Report
Table of Contents
1.Business Overview
(1)Business Results and Financial Statements for the Past Three Fiscal Years (2019 – 2021)
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 2021
- Consolidated Financial Statements as of and for the fiscal years ended December 31, 2021 and 2020
(1)Consolidated Financial Positions
(2)Consolidated Comprehensive Income
(3)Consolidated Statements of Changes in Equity
(4)Consolidated Statements of Cash Flows
- Separate Financial Statements as of and for the fiscal years ended December 31, 2021 and 2020
(1)Financial Positions
(2)Comprehensive Income
(3)Statements of Appropriation of Retained earnings
(4)Statements of Changes in Equity
(5)Statements of Cash Flows
- Business Overview
(1)Business Results and Financial Statements for the Past Three Fiscal Years (2019 – 2021)
(In thousands of Korean Won)
| Category | 2021 | 2020 | 2019 |
|---|---|---|---|
| Current assets | 219,505,575 | 164,602,523 | 100,881,643 |
| • Quick assets | 219,505,575 | 164,602,523 | 100,881,643 |
| Non-current assets | 39,159,998 | 28,537,796 | 26,687,368 |
| • Investment asset | 21,679,845 | 14,958,641 | 12,393,218 |
| • Property and Equipment, net | 5,608,320 | 3,176,858 | 2,855,143 |
| • Intangible asset | 3,228,635 | 2,663,857 | 2,025,543 |
| • Other non-current asset | 8,643,198 | 7,738,440 | 9,413,464 |
| Total assets | 258,665,573 | 193,140,319 | 127,569,011 |
| Current liabilities | 48,803,832 | 48,824,376 | 23,916,264 |
| Non-current liabilities | 4,184,648 | 3,370,754 | 2,151,426 |
| Total liabilities | 52,988,480 | 52,195,130 | 26,067,690 |
| 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 | - | 929 | (26,017) |
| Retained earnings | 174,719,960 | 109,987,127 | 70,570,205 |
| Total equity | 205,677,093 | 140,945,189 | 101,501,321 |
| Revenues | 288,258,376 | 228,996,069 | 133,151,813 |
| Operating income | 78,174,467 | 56,675,048 | 34,546,553 |
| Income before income tax | 92,546,064 | 55,050,476 | 35,304,130 |
| Net income | 64,732,833 | 39,416,922 | 23,468,283 |
- 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 digital contents, 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) 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 and Europe as of December 31, 2021.
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 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 and Gravity Game Arise Co., Ltd. in Tokyo, Japan. In order to strengthen its presence in the overseas markets, the company was established subsidiaries in Singapore on January 4, 2021 and in Hong Kong on January 5, 2022.
(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, 2021)
| 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, 2021)
| 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, 2021)
| 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, 2021)
| Companies | Relationship with the Company | |||||
|---|---|---|---|---|---|---|
| Name | Location | Common Stock | Main business | Shares owned | % | Relationship |
| Gravity Interactive, Inc. | California, USA | USD 14,500,000 | Online and Mobile Game Service | 290,000 | 100.00% | Subsidiary |
| Gravity NeoCyon, Inc. | Seoul, Korea | KRW 3,972,200,000 | 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 30,254,700,000 | 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 150,000,000 | Online and Mobile Game Service | 15,000 | 100.00% | Subsidiary |
| Gravity Game Hub PTE., Ltd.(*1) | Singapore | SGD 3,359,991 | Online and Mobile Game Service | 336,000 | 100.00% | Subsidiary |
(*1) Gravity Game Hub PTE., Ltd. was founded during 2021 and has been included as a 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 Communications Co., Ltd. | Executive Director | - | ||||
| Gravity Interactive, Inc. | Executive Director | - | ||||
| Yoshinori Kitamura | Gravity Co., Ltd. | Executive Director | Chief Operating 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 | ||||
| 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 |
(10)Material Transactions with Related Parties
① Sales and purchases
(In thousands of Korean Won)
| Nature | Related Companies | 2021 | 2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | Purchases | Sales | Purchase | ||||||||||
| Parent company | GungHo Online Entertainment, Inc. | 35,489,010 | 57,144 | 20,970,472 | 211,348 | ||||||||
| Subsidiaries | Gravity Interactive, Inc. (*1) | 14,838,616 | 643,324 | 22,952,182 | 859 | ||||||||
| Gravity NeoCyon, Inc. | 327,329 | 6,734,567 | 301,672 | 7,504,107 | |||||||||
| Gravity Communications Co., Ltd.(*2) | 18,682,591 | 5,676,890 | 7,779,917 | 9,855,435 | |||||||||
| PT Gravity Game Link | 298,864 | 157,600 | 1,535,466 | 28,007 | |||||||||
| Gravity Game Tech Co., Ltd. | 6,769,774 | 29,534 | 9,662,919 | 54 | |||||||||
| Gravity Game Arise Co., Ltd. | - | 3,246,517 | - | 2,478,752 | |||||||||
| Total | 76,406,184 | 16,545,576 | 63,202,628 | 20,078,562 |
(*1) Revenue include dividend income of W2,382,800 thousand from Gravity Interactive, Inc. in 2020.
(*2) Revenue include dividend income of W11,326,984 thousand from Gravity Communications Co., Ltd. in 2021.
② Receivables and Payables
(In thousands of Korean Won)
| Nature | Related Companies | 2021 | 2020 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables | Payables | Receivables | Payables | |||||||||||
| Parent company | GungHo Online Entertainment, Inc. | 5,051,013 | 7,448 | 2,449,506 | 4,924 | |||||||||
| Subsidiaries | Gravity Interactive, Inc. | 3,538,932 | 405,359 | 3,845,373 | - | |||||||||
| Gravity NeoCyon, Inc. | 822,009 | 1,550,411 | 349,634 | 862,702 | ||||||||||
| Gravity Communications Co., Ltd. | 1,179,228 | 1,283,908 | 1,021,437 | 1,296,845 | ||||||||||
| PT Gravity Game Link | 35,824 | 9,411 | 442,927 | 14,899 | ||||||||||
| Gravity Game Tech Co., Ltd. | 1,439,384 | 181,043 | 966,402 | - | ||||||||||
| Gravity Game Arise Co., Ltd. | 310,412 | 1,106,765 | 922,360 | 1,461,626 | ||||||||||
| Gravity Game Hub PTE., Ltd. | 96,628 | - | - | - | ||||||||||
| Total | 12,473,430 | 4,544,345 | 9,997,639 | 3,640,996 |
(11)Significant Creditors: The Company had no significant creditors as of December 31, 2021.
(12)Employees
(As of December 31, 2021)
| Category | Directors & Officers | Developers | Marketing/Operating | Finance/Administration | Total |
|---|---|---|---|---|---|
| Employees | 11 | 208 | 70 | 46 | 335 |
(13)Directors and Auditors
(As of December 31, 2021)
| Name | Position | Main work | Transaction with the Company |
|---|---|---|---|
| Hyun Chul Park | CEO | Chief Executive Officer | - |
| Yoshinori Kitamura | Executive Director | Chief Operating 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 | - |
(14)Material Events after the end of fiscal year 2021: Gravity Game Vision Limited, a subsidiary in Hong Kong, was established on January 5, 2022.
- Consolidated Financial Statements as of and for the fiscal year ended December 31, 2021 and December 31, 2020
(1)Consolidated Statements of Financial Position
GRAVITY CO., LTD. (In thousands of Korean Won)
| December 31, 2021 | December 31, 2020 | |||
|---|---|---|---|---|
| Assets | ||||
| Current Assets | 306,134,920 | 246,585,717 | ||
| Cash and cash equivalents | 99,104,943 | 110,632,482 | ||
| Short-term financial instruments | 148,000,000 | 71,000,000 | ||
| Accounts receivable, net | 52,614,595 | 59,761,256 | ||
| Other receivable, net | 1,080,516 | 8,333 | ||
| Prepaid expenses | 3,164,075 | 2,237,708 | ||
| Other current financial assets | 598,099 | 817,825 | ||
| Other current assets | 1,572,692 | 2,128,113 | ||
| Non-current Assets | 21,391,403 | 18,786,651 | ||
| Property and equipment, net | 11,337,999 | 7,695,046 | ||
| Intangible assets, net | 3,342,028 | 3,362,879 | ||
| Other non-current financial assets | 3,018,823 | 1,323,865 | ||
| Other non-current assets | 1,973,064 | 2,814,792 | ||
| Deferred tax assets | 1,719,489 | 3,590,069 | ||
| Total assets | 327,526,323 | 265,372,368 | ||
| Liabilities | ||||
| Current liabilities | 73,997,475 | 82,720,222 | ||
| Account payables | 41,199,401 | 52,687,616 | ||
| Deferred revenue | 13,480,518 | 13,692,283 | ||
| Withholdings | 3,596,403 | 2,851,636 | ||
| Accrued expenses | 1,484,019 | 1,364,753 | ||
| Income tax payable | 10,628,981 | 9,469,833 | ||
| Other current liabilities | 3,608,153 | 2,654,101 | ||
| Non-current liabilities | 6,687,990 | 5,304,130 | ||
| Long-term account payables | 729,173 | 1,402,466 | ||
| Long-term deferred revenue | 98,226 | 101,015 | ||
| Other non-current liabilities | 5,860,591 | 3,800,649 | ||
| Total liabilities | 80,685,465 | 88,024,352 | ||
| Equity attributable to owners of the Parent Company | 246,070,907 | 176,910,875 | ||
| Share capital | 3,474,450 | 3,474,450 | ||
| Common shares | 3,474,450 | 3,474,450 | ||
| Capital surplus | 27,098,264 | 27,109,803 | ||
| Other components of equity | 2,180,388 | (1,044,533) | ||
| Retained earnings | 213,317,805 | 147,371,155 | ||
| Non-controlling interest | 769,951 | 437,141 | ||
| Total equity | 246,840,858 | 177,348,016 | ||
| Total liabilities and equity | 327,526,323 | 265,372,368 |
(2)Consolidated Statements of Comprehensive Income
GRAVITY CO., LTD. (In thousands of Korean Won)
| 2021 | 2020 | |||
|---|---|---|---|---|
| Revenues | 413,937,974 | 405,953,021 | ||
| Online games | 75,370,395 | 89,545,060 | ||
| Mobile games | 320,163,555 | 298,323,908 | ||
| Other revenue | 18,404,024 | 18,084,053 | ||
| Cost of revenues | 224,172,902 | 239,044,923 | ||
| Gross profit | 189,765,072 | 166,908,098 | ||
| Selling, general and administrative expenses | 92,201,177 | 77,433,905 | ||
| Operating Profit | 97,563,895 | 89,474,193 | ||
| Non-operating income and expenses | 1,736,637 | (1,463,083) | ||
| Financial income | 5,268,535 | 3,475,764 | ||
| Financial costs | (2,686,170) | (3,832,610) | ||
| Other non-operating income | 606,731 | 657,898 | ||
| Other non-operating expenses | (1,452,459) | (1,764,135) | ||
| Profit before income tax expense | 99,300,532 | 88,011,110 | ||
| Income tax expense | 33,420,741 | 25,455,435 | ||
| Profit for the year | 65,879,791 | 62,555,675 | ||
| Owners of the Parent Company | 65,946,650 | 62,703,088 | ||
| Non-controlling interests | (66,859) | (147,413) | ||
| Other comprehensive income | 3,271,136 | (1,319,071) | ||
| Items that may be subsequently reclassified to profit or loss | 3,273,897 | (1,319,071) | ||
| Foreign currency translation adjustments | 3,226,854 | (1,319,071) | ||
| Non-controlling interest of foreign currency translation adjustments | 47,043 | - | ||
| Items that will never be reclassified to profit or loss | (2,761) | - | ||
| Remeasurement of defined benefit liabilities | (1,933) | - | ||
| Non-controlling interest of remeasurement of defined benefit liabilities | (828) | - | ||
| Total comprehensive income for the year | 69,150,927 | 61,236,604 | ||
| Owners of the Parent Company | 69,171,571 | 61,384,017 | ||
| Non-controlling interests | (20,644) | (147,413) | ||
| Earnings per share attributable to the equity holders of the Parent Company | ||||
| Basic earnings per share | 9,490 | 9,023 | ||
| Diluted earnings per share | 9,490 | 9,023 |
(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<br><br>interest | Total<br><br>Equity | |
|---|---|---|---|---|---|---|---|
| Balance at January 1, 2020 | 3,474,450 | 27,127,684 | 274,538 | 84,668,067 | 115,544,739 | 221,351 | 115,766,090 |
| Profit for the year | - | - | - | 62,703,088 | 62,703,088 | (147,413) | 62,555,675 |
| Equity transaction | - | (17,881) | - | - | (17,881) | 1,227 | (16,654) |
| Non-controlling interests | - | - | - | - | - | 361,976 | 361,976 |
| Foreign currency translation adjustments | - | - | (1,319,071) | - | (1,319,071) | - | (1,319,071) |
| Balance at December 31, 2020 | 3,474,450 | 27,109,803 | (1,044,533) | 147,371,155 | 176,910,875 | 437,141 | 177,348,016 |
| Balance at January 1, 2021 | 3,474,450 | 27,109,803 | (1,044,533) | 147,371,155 | 176,910,875 | 437,141 | 177,348,016 |
| Profit for the year | - | - | - | 65,946,650 | 65,946,650 | (66,859) | 65,879,791 |
| Equity transaction | - | (11,539) | - | - | (11,539) | 353,454 | 341,915 |
| Remeasurements of defined benefit liabilities | - | - | (1,933) | - | (1,933) | (828) | (2,761) |
| Foreign currency translation adjustments | - | - | 3,226,854 | - | 3,226,854 | 47,043 | 3,273,897 |
| Balance at December 31, 2021 | 3,474,450 | 27,098,264 | 2,180,388 | 213,317,805 | 246,070,907 | 769,951 | 246,840,858 |
(4) Consolidated Statements of Cash Flows
GRAVITY CO., LTD. (In thousands of Korean Won)
| 2021 | 2020 | |||
|---|---|---|---|---|
| Cash flows from operating activities | 74,182,958 | 69,856,903 | ||
| Profit for the year | 65,879,791 | 62,555,675 | ||
| Adjustments | 40,575,779 | 32,132,238 | ||
| Changes in operating assets and liabilities | (2,883,876) | (12,952,425) | ||
| Interest received | 995,149 | 1,122,471 | ||
| Interest paid | (111,416) | (185,742) | ||
| Income tax paid | (30,272,469) | (12,815,314) | ||
| Cash Flows from investing activities | (82,471,756) | (36,049,464) | ||
| Proceeds from disposal of property and equipment | 13,850 | 3,039 | ||
| Proceeds from disposal of other intangible assets | 14,861 | - | ||
| Decrease in other non-current financial assets | 594,774 | 22,479 | ||
| Increase in short-term financial instruments | (77,000,000) | (31,500,000) | ||
| Purchase of property and equipment | (1,747,427) | (1,071,379) | ||
| Purchase of intangible assets | (2,463,914) | (2,624,540) | ||
| Increase in other non-current financial assets | (1,883,900) | (879,063) | ||
| Cash Flows from Financing Activities | (3,306,019) | (2,547,245) | ||
| Proceeds from capital contribution from non-controlling interests | 353,454 | 361,976 | ||
| Repayment of lease liabilities | (3,647,934) | (2,892,567) | ||
| Payment of share issuance | (11,539) | (16,654) | ||
| Effects of exchange rate changes on cash and cash equivalents | 67,278 | (55,691) | ||
| Net increase (decrease) in cash and cash equivalents | (11,527,539) | 31,204,503 | ||
| Cash and cash equivalents at beginning of the year | 110,632,482 | 79,427,979 | ||
| Cash and cash equivalents at end of the year | 99,104,943 | 110,632,482 |
- Separate Financial Statements as of and for the fiscal year ended December 31, 2021 and December 31, 2020.
(1)Statements of Financial Position
GRAVITY CO., LTD. (In thousands of Korean Won)
| December 31, 2021 | December 31, 2020 | |||
|---|---|---|---|---|
| Assets | ||||
| Current Assets | 219,505,575 | 164,602,523 | ||
| Cash and cash equivalents | 26,602,122 | 45,956,245 | ||
| Short-term financial instruments | 148,000,000 | 71,000,000 | ||
| Accounts receivable, net | 40,569,841 | 44,353,327 | ||
| Other receivable, net | 1,677,451 | 478,428 | ||
| Prepaid expenses | 1,823,623 | 1,293,345 | ||
| Other current financial assets | 790,051 | 841,092 | ||
| Other current assets | 42,487 | 680,086 | ||
| Non-current Assets | 39,159,998 | 28,537,796 | ||
| Investments in subsidiaries | 21,679,845 | 14,958,641 | ||
| Property and equipment, net | 5,608,320 | 3,176,858 | ||
| Intangible assets, net | 3,228,635 | 2,663,857 | ||
| Other non-current financial assets | 2,895,565 | 1,128,475 | ||
| Other non-current assets | 1,701,669 | 1,891,247 | ||
| Deferred tax assets | 4,045,964 | 4,718,718 | ||
| Total assets | 258,665,573 | 193,140,319 | ||
| Liabilities | ||||
| Current liabilities | 48,803,832 | 48,824,376 | ||
| Accounts payables | 29,467,721 | 34,810,387 | ||
| Deferred income | 4,139,025 | 4,680,655 | ||
| Withholdings | 2,754,347 | 2,096,706 | ||
| Accrued expenses | 785,358 | 610,004 | ||
| Income tax payable | 9,403,175 | 4,998,566 | ||
| Other current liabilities | 2,254,206 | 1,628,058 | ||
| Non-current liabilities | 4,184,648 | 3,370,754 | ||
| Long-term account payables | 729,173 | 1,402,466 | ||
| Long-term deferred revenue | 199,062 | 133,936 | ||
| Other non-current liabilities | 3,256,413 | 1,834,352 | ||
| Total liabilities | 52,988,480 | 52,195,130 | ||
| 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 | ||
| Other components of equity | - | 929 | ||
| Retained earnings | 174,719,960 | 109,987,127 | ||
| Total equity | 205,677,093 | 140,945,189 | ||
| Total liabilities and equity | 258,665,573 | 193,140,319 |
(2)Statements of Comprehensive Income
GRAVITY CO., LTD. (In thousands of Korean Won)
| 2021 | 2020 | |||
|---|---|---|---|---|
| Revenues | 288,258,376 | 228,996,069 | ||
| Online games | 30,176,025 | 37,917,065 | ||
| Mobile games | 256,918,510 | 190,926,376 | ||
| Other revenue | 1,163,841 | 152,628 | ||
| Cost of revenues | 141,815,263 | 119,227,125 | ||
| Gross profit | 146,443,113 | 109,768,944 | ||
| Selling, general and administrative expenses | 68,268,646 | 53,093,896 | ||
| Operating Profit | 78,174,467 | 56,675,048 | ||
| Non-operating income and expenses | 14,371,597 | (1,624,572) | ||
| Financial income | 4,921,817 | 2,735,951 | ||
| Financial costs | (1,989,233) | (2,909,451) | ||
| Other non-operating income | 11,997,743 | 3,020,932 | ||
| Other non-operating expenses | (558,730) | (4,472,004) | ||
| Profit before income tax | 92,546,064 | 55,050,476 | ||
| Income tax expense | 27,813,231 | 15,633,554 | ||
| Profit for the year | 64,732,833 | 39,416,922 | ||
| Other comprehensive income | - | 26,946 | ||
| Items that may be subsequently reclassified to income or loss | - | 26,946 | ||
| Foreign currency translation adjustments | - | 26,946 | ||
| Total comprehensive income for the year | 64,732,833 | 39,443,868 |
(3)Statements of Appropriation of Retained earnings
GRAVITY CO., LTD. (In thousands of Korean Won)
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| Confirmed disposition date:<br><br>March 31, 2022 | Confirmed disposition date:<br><br>March 31, 2021 | |||||
| Retained earnings before appropriation | 174,719,960 | 109,987,127 | ||||
| Unappropriated retained earnings carried over from prior year | 109,987,127 | 70,570,205 | ||||
| Profit for the year | 64,732,833 | 39,416,922 | ||||
| Appropriation of retained earnings | - | |||||
| Unappropriated retained earnings to be carried forward | 174,719,960 | 109,987,127 |
(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, 2020 | 3,474,450 | 27,482,683 | (26,017) | 70,570,205 | 101,501,321 |
| Profit for the year | - | - | - | 39,416,922 | 39,416,922 |
| Foreign currency translation adjustments | - | - | 26,946 | - | 26,946 |
| Balance at December 31, 2020 | 3,474,450 | 27,482,683 | 929 | 109,987,127 | 140,945,189 |
| Balance at January 1, 2021 | 3,474,450 | 27,482,683 | 929 | 109,987,127 | 140,945,189 |
| Profit for the year | - | - | - | 64,732,833 | 64,732,833 |
| Foreign currency translation adjustments | - | - | (929) | - | (929) |
| Balance at December 31, 2021 | 3,474,450 | 27,482,683 | - | 174,719,960 | 205,677,093 |
(5)Statements of Cash Flows
GRAVITY CO., LTD. (In thousands of Korean Won)
| 2021 | 2020 | |||
|---|---|---|---|---|
| Cash flows from operating activities | 70,320,586 | 43,998,181 | ||
| Profit for the year | 64,732,833 | 39,416,922 | ||
| Adjustments | 18,716,916 | 19,381,149 | ||
| Changes in operating assets and liabilities | (2,637,125) | (8,008,589) | ||
| Interest received | 966,070 | 998,281 | ||
| Dividend received | 11,326,984 | 2,382,800 | ||
| Interest paid | (68,886) | (120,865) | ||
| Income tax paid | (22,716,206) | (10,051,517) | ||
| Cash flows from investing activities | (88,153,976) | (36,633,521) | ||
| Decrease in other non-current financial assets | 500,000 | 6,391 | ||
| Decrease in other non-current financial liabilities | 89,860 | - | ||
| Disposal of property and equipment | 235 | 1,238 | ||
| Acquisition of investments in subsidiaries | (6,721,204) | (3,853,178) | ||
| Increase in short-term financial instruments | (77,000,000) | (31,500,000) | ||
| Increase in other non-current financial assets | (1,660,952) | (100) | ||
| Purchase of property and equipment | (1,210,372) | (158,284) | ||
| Purchase of intangible assets | (2,151,543) | (1,129,588) | ||
| Cash flows from financing activities | (1,787,171) | (1,515,930) | ||
| Repayment of lease liabilities | (1,787,171) | (1,515,930) | ||
| Effects of exchange rate changes on cash and cash equivalents | 266,438 | 19,265 | ||
| Net increase (decrease) in cash and cash equivalents | (19,354,123) | 5,867,995 | ||
| Cash and cash equivalents at the beginning of the year | 45,956,245 | 40,088,250 | ||
| Cash and cash equivalents at the end of the year | 26,602,122 | 45,956,245 |