Contents
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4
About Razer Company
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Recent History
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Vision and Mission
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Leader
9
Purpose and Objectives
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Company Structure
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Corporate Culture
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Products and Services
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Corporate Information
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Finacial Summary
18
Chairman’s Statement
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Previous, present and Future Performance
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Physical, Financial, and Human Resources
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Short-term and Long-term Goals
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Thank You Letter
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COMPANY INTRODUCTION Razer is an American-Singaporean multinational technology company that designs, develops, and sells consumer electronics, financial services, and gaming hardware. The company was founded in 2005 by Min-Liang Tan and Robert “RazerGuy” Krakoff, although the brand originated in 1998.
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HISTORY 2023 Contracts/Agreements In November, the company entered into an agreement with Immersion to make Immersion’s patents available to Razer’s gaming computer peripherals, laptop computers, and AR/VR products. 2022 Contracts/Agreements In October, the company, Qualcomm and Verizon partnered to introduce the ultimate 5G handheld gaming device. 2022 New Products/Services In October, the company launched the limited-edition Sanrio wireless gaming mouse.
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VISION & MISSION
OUR VISION To become the leading lifestyle brand for gamers around the world.
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OUR MISSION Providing the best gaming experience for gamers around the world through innovative and high-quality products
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LEADER Co-Founder & CEO Mr. Min-Liang Tan is the co-founder of Razer and has served as the Chief Executive Officer since September 2006. In addition to his role as Chief Executive Officer, he also serves as the Creative Director and is responsible for directing and overseeing the design and development of all the products at the Company.
MIN-LIANG TAN 8
PURPOSE To become the leading lifestyle brand for gamers around the world
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Market Leadership Achieve and maintain a dominant position in the gaming peripherals market by continuously innovating and offering high-quality products.
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Product Innovation Develop cutting-edge gaming peripherals with the latest technology to stay ahead of competitors and meet the evolving needs of gamers.
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Financial Growth Achieve consistent and sustainable financial growth by effectively managing costs, optimizing operations, and increasing revenue streams.
These objectives align with common business goals for companies in the gaming industry and are indicative of the multifaceted nature of a business like Razer. Keep in mind that specific objectives may vary based on the company’s internal strategy, market conditions, and other factors.
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STRUCTURE
NOTES Razer had a typical corporate structure with various departments and divisions responsible for different aspects of the business. It’s important to note that specific roles and departments can vary, and the company’s structure might change over time in response to business needs and strategic goals. For the most accurate and current information, it is recommended to refer to Razer’s official website, press releases, or recent financial reports.
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CULTURE Razer is renowned for cultivating a vibrant company culture deeply rooted in the gaming industry. Founded and led by individuals with a genuine passion for gaming, the company fosters an environment that values innovation and design, evident in their cutting-edge gaming peripherals. Embracing an entrepreneurial spirit and a commitment to excellence, Razer provides a dynamic and fast-paced work atmosphere, encouraging employees to take initiative and contribute to the company’s growth. Actively engaged with the gaming community through sponsorships and collaborations, Razer promotes a sense of community and shared interests among its diverse, global workforce. The company’s emphasis on high performance and empowerment further contributes to a culture that values individual contributions and encourages employees to excel in their roles.
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PRODUCTS & SERVICES
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CORPORATE INFORMATION BOARD OF DIRECTORS Executive Directors
Executive Directors
Mr. Min-Liang TAN
Mr. Min-Liang TAN
(Chairman & Chief Executive Officer)
Mr. TAN Chong Neng
Audit and Risk Management Committee Mr. CHAU Kwok Fun Kevin (Chairman) Mr. LEE Yong Sun Mr. Gideon YU Remuneration Committee Mr. Gideon YU (Chairman) Mr. CHAU Kwok Fun Kevin Mr. Min-Liang TAN
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Independent Non-executive Directors Mr. CHAU Kwok Fun Kevin Mr. LEE Yong Sun Mr. Gideon YU Registered Office Maples Corporate Services Limited PO Box 309 Ugland House Grand Cayman KY1-1104 Cayman Islands Corporate Headquarters 9 Pasteur, Suite 100, Irvine, CA 92618, United States
Joint Company Secretaries Mr. CHOO Wei Pin Ms. CHAN Wai Ling Principal Place of Business in Hong Kong Level 54, Hopewell Centre 183 Queen’s Road East Hong Kong
Auditors KPMG, Public Interest Entity Auditor registered in accordance with the Financial Reporting Council Ordinance, 8th Floor, Prince’s Building 10 Chater Road, Central Hong Kong Principal Share Registrar and Transfer Office Maples Fund Services (Cayman) Limited PO Box 1093 Boundary Hall, Cricket Square
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NEW RAZER BLADE 16 AUTOMOBILI LAMBORGHINI EDITION
Year ended December 31
Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income
2017 US$’000
2017 US$’000
2017 US$’000
2017 US$’000
2017 US$’000
Revenue
517,937
712,439
820,795
1,214,570
1,619,590
Gross profit
151,025
170,078
168,063
271,008
389,180
Profit/(loss) before income tax
(164,585)
(89,547)
(77,816)
4,352
52,263
Profit/(loss) for the year
(165,839)
(97,908)
(83,470)
805
43,389
Total comprehensive income for the year
(164,877)
(103,308)
(83,252)
6,955
40,305
Profit/(loss) attributable to equity shareholders of the Company
(164,020)
(96,966)
(84,179)
5,626
46,162
Total comprehensive income attributable to equity shareholders of the Company
(163,058)
(102,453)
(81,755)
11,381
43,425
As at December 31,
Condensed Consolidated Statements of Financial Position
2017 US$’000
2017 US$’000
2017 US$’000
2017 US$’000
2017 US$’000
93,429
144,576
146,879
200,273
183,106
911,834
885,156
847,928
1,042,618
1,045,568
1,005,263
1,029,732
994,807
1,242,891
1,228,674
Current liabilities
217,966
353,879
401,920
620,568
643,263
Net current assets
693,868
531,277
446,008
422,050
402,305
Non-current liabilities
3,921
13,911
18,099
15,099
35,938
781,608
659,810
568,275
581,921
543,934
1,768
2,132
6,513
25,303
5,539
783,376
661,942
574,788
607,224
549,473
Non-current assets Current assets
Total assets
Total equity attributable to equity shareholders of the Company Non-controlling interests Total equity
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FINANCIAL SUMMARY
CHAIRMAN’S STATEMENT For the full year of 2021, we recorded a revenue of US$1,619.6 million with 33.3% year-on-year growth, driven by demand in first half of 2021 due to the pandemic, market share increase for the Hardware business, and continued expansion of channels and content for the Services business. Gross Profit Margin increased to 24.0% from 22.3% in the prior year, driven by ongoing expansion of Hardware margins, partially offset by the sudden spike in freight rates due to industry-wide supply chain and logistics challenges. Adjusted EBITDA* (a non-GAAP measure) was US$96.1 million, an increase of 115.5% from US$44.6 million in the prior year. Net Profit was US$43.4 million, compared to US$0.8 million in the prior year, driven by revenue growth, ongoing gross margin expansion and productivity improvement
Core Segment HARDWARE
34.0% YEAR-ON-YEAR GROWTH TO US$1,452.4 MILLION In 2021, our Hardware business achieved 34.0% year-onyear growth to US$1,452.4 million, driven by the growth of our Peripherals and Systems businesses. Our Peripherals business maintained its market-leading position in gaming peripherals across the U.S., Europe and Asia-Pacific1 regions, fueled by the market launch of multiple products across
We define adjusted EBITDA as profit/(loss) from operations added back with depreciation and amortisation, share-based compensation expense, restructuring expense, impairment
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of long-lived assets and merger and acquisition expense.
SOFTWARE
44.1% YEAR-ON-YEAR GROWTH TO APPROXIMATELY 177.7 MILLION TOTAL USER ACCOUNTS WITH OVER 30.0% GROWTH IN MONTHLY ACTIVE USERS O ur Software platform saw approximately 44.1% year-onyear increase in total user accounts to approximately 177.7 million, as of December 31, 2021. Monthly active users surged by over 30.0% year-on-year, as of December 31, 2021. The increase was attributable to strong growth across our Software offerings, boosted by increases in gaming, rewarded play and livestreaming activities. Throughout the year, we continued our efforts to further enrich the user experience and drive stickiness to the Razer ecosystem In 2021, Razer Cortex for PC continued to see a strong increase in user engagement, fueled by more users playing more games. Cortex ended 2021 with a 66.0% year-on-year increase in monthly active users. Focusing on engagement events like Squad Rewards hosted inside Cortex, we saw an average of 200,000 users signing up for each competition. During each two-week competition, user logged an average of 3.7 million hours of PC game time, up 74.1% year-on-year. The combined increase in active users and focus on engagement events drove year-on-year growth of 121.5% in PC game sessions using popular evergreen features like Cortex Game Booster.
SERVICES 26.6% YEAR-ON-YEAR GROWTH IN REVENUE TO US$162.5 MILLION Razer offers payment services for youth, millennials and Generation Z. Our Services business, comprising of Razer Gold and Razer Fintech, grew 26.6% year-on-year to US$162.5 million for the full year 2021. Gross margin was 38.5% and contributed 16.1% of the Group’s gross profit RAZER GOLD Razer Gold, a global gaming and digital entertainment payment service, recorded a 56.3% year-on-year increase in total payment volume (“TPV”), primarily driven by the increase in number of transactions conducted through the Razer Gold platform. In terms of geography, Southeast Asia, Europe, the Middle East, Africa and Latin America were the key TPV growth contributors for the full year of 2021. As of December 31, 2021, Razer Gold recorded approximately 33.1 million registered users, representing 24.0% year-on-year growth. In 2021, we further expanded our footprint and added more channel touchpoints in places such as Southeast Asia and Europe, the Middle East and Africa. Users from more than 130 countries can now purchase Razer Gold from over 5.62 million channel touchpoints
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#GOGREENWITHRAZER
SUSTAINABILITY At Razer, we play hard, we play fair, and we want to ensure the world remains an arena we can all continue to play in. All of us need to do our part in making our world a better place, and we are taking responsibility through our #GoGreenWithRazer initiative to drive towards a sustainable future.
CAREERS BE PHENOMENAL. JOIN US.
As a part of Razer, you’ll be at the forefront of the most exciting industry in the world—video games. And you’ll be undertaking the greatest mission of all: bringing gamers closer to the games they love. Razer is a company made up of gamers. We excel because gamers rely on teamwork, are wicked problem-solvers and tenacious about reaching their goals, whether it’s beating a raid boss or launching a product. So if you’ve always been up for a real challenge, this is your chance.
zVENTURES zVentures is Razer’s corporate ventures arm and an integral component of Razer’s strategic investments activities. We focus on companies that have or will have a role to play within the larger Razer ecosystem. In addition to providing capital, we help our companies interface with Razer by allowing them access to Razer’s network of suppliers and OEMs, customers and investors, as well as allowing them to meet other stakeholders, industry leaders and influencers.
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PREVIOUS, PRESENT, FUTURE PERFORMANCE Previous Performances (up to 2021) Razer Inc. is a global gaming hardware manufacturing company and esports and financial services provider established in 2005. Over the years, Razer gained prominence for its gaming peripherals, laptops, and other gaming-related products. The company went public on the Hong Kong Stock Exchange in November 2017.
Future Performances (Speculative) Predicting future performance involves various uncertainties, and it’s essential to consider the dynamic nature of the technology and gaming industries. Razer’s success in the future would depend on its ability to adapt to changing consumer preferences, technological advancements, and competition.
In the years leading up to 2021, Razer experienced growth driven by the increasing popularity of gaming and esports. The company expanded its product offerings and entered new markets, collaborating with game developers and launching initiatives like Razer Gold and Razer Fintech.
Factors that could impact Razer’s future performance include the adoption of new gaming technologies, global economic conditions, and the success of their initiatives in fintech and other non-hardware sectors. Keep an eye on the company’s strategic moves, partnerships, and financial results for insights into its future direction.
Present Performances (2022 and beyond) Razer’s performance in recent years would be influenced by various factors, including market trends, competition, and the overall economic climate. It’s important to check the latest financial reports and updates to get an accurate picture of the company’s current standing. Razer continued to release new products, innovate in the gaming space, and explore opportunities in adjacent markets.
For the latest and most accurate information, consider checking Razer’s official announcements, financial reports, and reputable financial news sources.
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INFORMATION
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PHYSICAL, FINANCIAL, HUMAN RESOURCES
Physical Resources
Financial Resources
Facilities: Razer has offices and facilities in various locations worldwide. The company’s headquarters is in Singapore, and it has offices in cities like San Francisco, Hamburg, and Shanghai.
Revenue: Razer generates revenue through the sale of gaming peripherals, laptops, software, and services. Additionally, Razer has ventured into financial services with Razer Fintech, which includes products like Razer Gold and Razer Pay.
Manufacturing: Razer doesn’t own manufacturing facilities but relies on third-party manufacturers for its hardware products. These facilities could be located in different regions, depending on the specific product.
Financial Performance: Razer’s financial performance can be assessed through its annual reports, financial statements, and stock performance. Key financial indicators include revenue, net income, profit margins, and any debts or liabilities.
Human Resources Employees: Razer employs a diverse workforce with expertise in various fields, including engineering, design, marketing, and sales. The number of employees may vary over time as the company expands or restructures. Leadership: Razer’s leadership team, including executives and key decision-makers, plays a crucial role in the company’s strategic direction. Leadership information can be found on the company’s official website and in regulatory filings.
Corporate Culture: The company has been known for its focus on gaming and innovation. Razer often collaborates with the gaming community and sponsors esports events, showcasing a commitment to gaming culture.
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GOALS Official Announcements: Press releases and official statements from Razer can provide insights into the company’s recent and upcoming goals. Investor Relations Materials: Annual reports, shareholder letters, and presentations to investors often outline a company’s strategic objectives and goals. Earnings Calls: Listening to or reading transcripts of Razer’s earnings calls can offer information about the company’s performance and future plans as discussed by its leadership. Company Website: Razer may share information about its mission, vision, and strategic goals on its official website, particularly in sections like “About Us” or “Investor Relations.” Media Coverage: Business news articles and interviews with Razer executives may provide additional context and information about the company’s goals.
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SHORT TERM, AND LONG TERM GOALS 25
Thank You Letter We hope this message finds you in great spirits. On behalf of the entire Razer team, we wanted to express our sincere gratitude for your continued support and enthusiasm for our brand. It is customers like you who inspire us to push the boundaries of gaming innovation. Your dedication to Razer has not gone unnoticed, and we are thrilled to have you as part of our global community. We understand that your gaming experience is paramount, and we are honored to be a part of it. Your choice to trust Razer products speaks volumes, and we are committed to continually delivering the high-quality, cutting-edge technology that you deserve. At Razer, our mission is to provide gamers with the best possible tools to enhance their gaming adventures. Your feedback and loyalty are invaluable to us, and they drive us to constantly strive for excellence in everything we do. Whether it’s our gaming peripherals, laptops, or software solutions, we are dedicated to meeting and exceeding your expectations. We also appreciate your recognition of our customer service team. Delivering exceptional service is a top priority for us, and we are pleased to hear that your interactions with our team have been positive. Rest assured that we will continue to work hard to provide the support you need whenever you reach out to us.
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C O N 2023
Asia-Pacific (Singapore) Office Razer SEA HQ 1 one-north Crescent, #02-01 Singapore 138538 Irvine, California, and Singapore Singapore, 138538 https://www.razer.com/ Customer Service: 888-697-2037 Warranty Support: 855-872-5233