株探米国株
英語
エドガーで原本を確認する
6-K 1 a6-k20240329resultoftheagm.htm 6-K Document

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 2024
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 #1 located at 4F, Business Tower, 396 World Cup buk-ro, Mapo-gu, Seoul 121-795 Korea at 10:00 a.m. on March 29, 2024.

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, 2023 and 2022 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 nine directors, Messrs. Hyun Chul Park, Yoshinori Kitamura, Kazuki Morishita, Kazuya Sakai, Heung Gon Kim (who are inside directors), Jung Yoo, Yong Seon Kwon, Kee Woong Park, and Ms. Hyo Eun Lim (who are independent directors) and the appiontment of two directors Mr. Koji Yoshida (who is an inside director) and Ms. Geum Ok Sim (who is an independent director).

•Agendum 3: the shareholders approved the amount of KRW 4,000,000,000 as the maximum amount of compensation payable to directors as a group for fiscal year 2024.

Furthermore, the Company’s 2023 Annual Business Report was presented to the shareholders at the AGM.

The Company’s Board of Directors, consisting of the nine reelected directors and the two elected 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, 2023 and December 31, 2022 (“2023/2022 Korean IFRS consolidated and separate financial statements”) with the Financial Supervisory Service of Korea no later than April 12, 2024. The condensed English translation version of the 2023/2022 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 29, 2024




Exhibit Index
EX-99.1 2 exhibit991.htm EX-99.1 Document

Exhibit 99.1
GRAVITY REPORTS CONSOLIDATED FINANCIAL RESULTS FOR 2023
Seoul, South Korea, March 29, 2024 - 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, 2023, 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 2023 were KRW 725,516 million (US$ 561,993 thousand), representing a 56.5% increase from KRW 463,618 million for 2022.
Online game revenue decreased by 9.2% to KRW 81,017 million (US$ 62,757 thousand) in 2023 from KRW 89,256 million in 2022. The decrease in online game revenue was mostly decreased revenues from Ragnarok Online in Taiwan and the Philippines.
Mobile game revenue for 2023 was KRW 629,604 million (US$ 487,698 thousand), representing a 75.5% increase from KRW 358,772 million for 2022. This increase was mainly due to increased revenues from Ragnarok Origin which was launched in Southeast Asia on April 6, 2023 and such increase was partially offset by decreased revenues from Ragnarok X: Next Generation in Southeast Asia and Taiwan, Ragnarok Origin in the United States, Canada, Korea, and Japan, and Ragnarok M: Eternal Love.

Other revenue was KRW 14,895 million (US$ 11,538 thousand) in 2023, representing a 4.5% decrease from KRW 15,590 million in 2022.
Cost of revenues was KRW 484,958 million (US$ 375,654 thousand) in 2023, representing a 81.4% increase from KRW 267,365 million in 2022. The increase in cost of revenues was mainly due to increased commissions paid related to game services for Ragnarok Origin in Southeast Asia.
As a result of the foregoing factors, gross profit for 2023 was KRW 240,558 million (US$ 186,339 thousand), representing a 22.6% increase from KRW 196,253 million for 2022.
Selling, General & Administrative Expenses (“SG&A”)
The Company’s total SG&A decreased 13.0% to KRW 79,552 million (US$ 61,621 thousand) in 2023 compared with KRW 91,411 million in 2022. This decrease in SG&A was mostly attributable to decreased advertising expenses.
Based on the foregoing factors, the Company recorded an operating income of KRW 161,006 million (US$ 124,718 thousand) in 2023, compared to an operating income of KRW 104,842 million in 2022.
Non-operating Income and Non-operating Expenses
Non-operating income for 2023 was KRW 7,693 million (US$ 5,959 thousand) compared with non-operating income KRW 5,040 million in 2022. This increase in non-operating income was primarily due to increased interest income.
Profit before income tax for 2023 was KRW 168,699 million (US$ 130,677 thousand), compared with profit before income tax of KRW 109,882 million in 2022.
Gravity recorded a net profit of KRW 131,982 million (US$ 102,236 thousand) in 2023 compared with a net profit of KRW 83,058 million in 2022.
The balance of cash and cash equivalents and short-term financial instruments was KRW 461,297 million (US$ 357,326 thousand) as of December 31, 2023.


Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the rate of KRW 1,290.97 to US$1.00, the noon buying rate in effect on December 29, 2023 as quoted by the Federal Reserve Bank of New York.


EX-99.2 3 exhibit992.htm EX-99.2 Document

Exhibit 99.2
GRAVITY REPORTS SEPARATE FINANCIAL RESULTS FOR 2023
Seoul, South Korea, March 29, 2024 - 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, 2023, 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 2023 were KRW 242,775 million (US$ 188,057 thousand), representing a 4.3% increase from KRW 232,717 million for 2022.
Online game revenue decreased by 0.6% to KRW 32,778 million (US$ 25,391 thousand) in 2023 from KRW 32,970 million in 2022. The decrease resulted largely from the decrease in revenues from Ragnarok Online in Taiwan.
Mobile game revenue for 2023 was KRW 209,450 million (US$ 162,242 thousand), representing a 5.5% increase from KRW 198,512 million for 2022. This increase was mainly due to increased revenues from Ragnarok X: Next Generation which was launched in Korea on January 5, 2023 and Ragnarok Origin which was launched in Southeast Asia on April 6, 2023 and such increase was partially offset by decreased revenues from Ragnarok X: Next Generation in Southeast Asia and Taiwan and Ragnarok Origin in the United States, Canada, Korea, and Japan.

Other revenue was KRW 547 million (US$ 424 thousand) in 2023, representing a 55.7% decrease from KRW 1,235 million in 2022.
Cost of revenues was KRW 121,572 million (US$ 94,171 thousand) in 2023, representing a 8.1% increase from KRW 112,512 million in 2022. The increase in cost of revenues was mainly due to increased commission paid related to game services for Ragnarok X: Next Generation in Korea and outsourcing fee.
As a result of the foregoing factors, gross profit for 2023 was KRW 121,203 million (US$ 93,886 thousand), representing a 0.8% increase from KRW 120,205 million for 2022.
Selling, General & Administrative Expenses (“SG&A”)
The Company’s total SG&A decreased 13.1% to KRW 50,448 million (US$ 39,078 thousand) in 2023 compared with KRW 58,060 million in 2022. This decrease in SG&A was mostly attributable to decreased advertising expenses.
Based on the foregoing factors, the Company recorded an operating income of KRW 70,755 million (US$ 54,808 thousand) in 2023, compared to an operating income of KRW 62,145 million in 2022.
Non-operating Income and Non-operating Expenses
Non-operating income for 2023 was KRW 21,308 million (US$ 16,505 thousand) compared with non-operating income KRW 13,059 million in 2022. The increase in non-operating income was primarily due to increased interest income and dividend income.
Profit before income tax for 2023 was KRW 92,063 million (US$ 71,313 thousand), compared with profit before income tax of KRW 75,204 million in 2022.
Gravity recorded a net income of KRW 70,170 million (US$ 54,354 thousand) in 2023 compared with a net income of KRW 54,915 million in 2022.
The balance of cash and cash equivalents and short-term financial instruments was KRW 281,157 million (US$ 217,787 thousand) as of December 31, 2023.


Note: For convenience purposes only, the KRW amounts have been expressed in U.S. dollars at the rate of KRW 1,290.97 to US$1.00, the noon buying rate in effect on December 29, 2023 as quoted by the Federal Reserve Bank of New York.


EX-99.3 4 exhibit993.htm EX-99.3 Document

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