FINANCIAL STATEMENTS

Our revenue increased by 33.3% from US$1,214.6 million in 2020 to US$1,619.6 million in 2021, due to an increase in revenue from both our (i) Hardware and (ii) Software and Services businesses. We generate revenue from four business segments: (i) Peripherals, (ii) Systems, (iii) Software and Services and (iv) Others. The following table sets forth our segment revenue by amount and as a percentage of our revenue for the periods presented.

Our Hardware business consists primarily of sales of Peripherals and Systems, which grew 34.0% from US$1,083.7 million in 2020 to US$1,452.4 million in 2021 on the back of strong consumer demand for our hardware products due to increased gaming activities and continued remote working trends. Revenue from the Peripherals segment increased by 40.2% from US$773.2 million in 2020 to US$1,084.3 million in 2021, primarily due to an overall increase in sales of our mice, keyboards and audio devices. Revenue from the Systems segment increased by 18.6% from US$310.5 million in 2020 to US$368.2 million in 2021, primarily due to sales from the new product lines.

Software and Services. Revenue from the Software and Services segment increased by 26.6% from US$128.4 million in 2020 to US$162.5 million in 2021. The increase was primarily driven by (i) stronger performance of contents and (ii) continual expansion of channels and contents.

Others. Revenue from the Others segment increased by 84.0% from US$2.5 million in 2020 to US$4.6 million in 2021 primarily due to increase in THX certification services and Respawn products.