Embark Group AB (publ) publishes half-year report for 2024

FINANCIAL OVERVIEW OF THE SECOND QUARTER AND THE FIRST SIX MONTHS OF 2024 (2023)

SIGNIFICANT EVENTS DURING THE SECOND QUARTER OF 2024

• At the Annual General Meeting held on 28 June 2024, it was resolved that Calvin Lim Eng Kiat be elected as Executive Chairman of the board of directors, Calvin has subsequently resigned as Chief Executive Officer (“CEO”), and Chi Ho Li was appointed as the new CEO for the Company. Cosmin Mihai Stan and Hans Isoz have been elected as new members of the board of directors. The outgoing members of the board of directors were Per Eriksson, Carl Falkenberg, Chi Ho Li and Claes Kalborg, as they declined re-election.
• The Company terminated liquidity guarantee agreement with Carnegie Investment Bank.
• Fully owned subsidiary in Latvia was fully dissolved with insignificant financial impact, as impairment was already made in 2023.
• The new shares for both the directed issue (83,847,317) and the set-off issue (44,510,532) as resolved on 25 January 2024, were fully issued on 15 May 2024. The directed share issue generated approximately SEK 21.3m in cash for 2024. The set-off issue has settled the NCTK convertible loan of approximately SEK 40.2m.
• The Group signed two separate leases of office property in Taiwan and Malaysia respectively. As a result of these agreements, lease assets and lease liabilities in the region of SEK 9.3m were recognised.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

• LL Lucky Games AB (publ) changed its name to Embark Group AB (publ).

A WORD FROM THE CEO

Dear Shareholders,

As the new CEO of Embark Group, I am delighted to welcome you to my inaugural CEO letter.

With my extensive experience serving in executive roles, including my most recent role as CEO of CYG Pte. Ltd, I am enthusiastic and confident in leading the Company into its next phase of growth and expansion at Embark Group, in close collaboration with our highly capable management team.

To fully dedicate my efforts to this exciting opportunity, I have stepped down from my role as CEO of CYG Pte. Ltd, which will allow me to focus entirely on driving Embark Group’s success and future growth.

With this transition in leadership, I’m pleased to share that Embark Group has demonstrated strong business performance in the second quarter of 2024, marked by significant milestones and continued growth across our key markets. We continue to capitalise on opportunities as more operators integrate our games into their platforms, and this has translated into increased revenue, especially from Asia.

Building on our strengthened presence in Asia, largely driven by the 20% acquisition of CYG Pte. Ltd. in 2023, we have continued to leverage the synergies gained and expand our regional connections, resulting in increased revenue from technology development, maintenance, and consulting services. However, we also acknowledge that we still carry significant technology debt, which will require more time and careful planning to address before we can scale up. A key part of this strategy involves hiring the right people and ensuring they are placed in roles where they can excel—avoiding the mistake of putting a square peg in a round hole.

Stockholm, 23 August 2024
Chi Ho Li
CEO


FUTURE REPORTING DATES

Q3 2024 November 22, 2024

Q4 2024 March 14, 2025

All financial reports are published on the company's website, www.ladyluckgames.io.