HONG KONG, Aug. 31, 2020 /PRNewswire/ -- One of China's top 100 internet companies, V1 Group Limited ("V1 Group" or the "Company", together with its subsidiaries, the "Group"; stock code: 00082.HK), gladly announced its interim results for the six months ended 30 June 2020 (the "period"). During the period, the Group's loss after taxation significantly decreased by 61.8% to approximately HK$16.4 million. The Group promoted the business development of its core business Crazy Sports proactively. The holistic comprehensive online and offline sports community and lottery e-commerce ecosystem had allowed the Group to successfully maintain a strong development momentum amid the economic downturn and had presented great results yet again. Meanwhile, the Group successfully reduced administrative expenses by nearly 30% through management and process optimisation.
Crazy Sports exploited new resources and further integrated the ecosystem to capture new opportunities in the upcoming super sports year
V1 Group is the first internet sports concept stock in Hong Kong. During the period, the revenue of the core business operated by Crazy Sports increased by 53.0% to approximately HK$145 million. It also recorded gross profit of approximately HK$61.7 million with gross profit margin of 42.6%. Though major sports events almost came to a complete stop due to the coronavirus pandemic, Crazy Sports still presented exceptional performance in revenue and gross profit. Its respective businesses made many achievements and successfully initiated partnerships with various leading enterprises in the industry. With more and more room for development, it is expected that the new areas of development would lead the Group towards rapid growth.
Crazy Red Insights further expanded its market coverage during the period. In addition to the previous strategic cooperation with 17 platforms, including All Football, hupu.com, Tencent Sports, and Zhibo8.cc that have over ten million users each, Crazy Red Insights also initiated new partnerships with Taobao, Alipay Lottery, QIUHUI.COM and Kball. Its lottery recommendation contents now cover over 70% of the sports users in China, representing an absolute advantage in terms of user coverage. Thanks to great efforts from the operation and management teams, registered users of Crazy Red Insights and Crazy Sports had a 15% increase in users from the end of December 2019. As of the end of June 2020, the platforms had approximately 23.78 million registered users in total.
As for the sports lottery new retail business, Crazy Sports signed contracts with Guangdong China Resources Vanguard, Dalian Lianhua Quik and 007 Convenience Stores, which had now become partners of Crazy Sports' sports lottery new retail business. Together with the 12 chain enterprise lottery sales channels (such as 7-Eleven in Guangdong, Bianlifeng, Haolinju, Jiajiayue, etc.) which had entered into cooperation agreements with the Group as at the end of December 2019, it is expected that sports lottery terminals will be gradually installed at not less than 15,000 outlets across China. The Group has obtained approvals in nine provinces and cities from their respective local sports lottery administration centres to provide sports lottery sales related services in outlets of local chain enterprises.
The mobile game business benefited from the "stay-at-home economy" formed under the pandemic. The Group seized the opportunity to release and promote various sports and leisure games, including competitive sports chess and card games, simulated football management games, as well as real-time competitive football games. The Group also officially launched the 5G+ cloud game strategy.
Given the actions taken by the Group during the period, it is expected that starting from the second half of the year, as the pandemic gradually subdues, the cumulative advantages of Crazy Sports would return to its glory. Crazy Sports will step up in the implementation of its respective collaborations with different parties, accelerating the installation of sports lottery terminals in offline chain stores, launching sales and promotion activities online, including collaborations with Alipay and other payment tools, on its Crazy Red Insights, livestreaming and sports game platforms.
Crazy Sports will also take advantage of being the official game partner of the Chinese Super League ("CSL"), to further utilise official IP licenses of the 16 football clubs and over 500 players from CSL, as well as launch the newly upgraded CSL official real-time competitive mobile game to officially enter the e-sports market. Crazy Sports will activate the 200-million users on its platforms by refining operation and promotion strategies, so as to create a new retail model featuring online to offline user redirection and consumption through both channels. Besides, V1 Group officially entered Sanya in August, leveraging on the favorable policies of the Hainan Free Trade Port, the management is confident that all such strategies will bring a positive prospect of quick linear growth.
Drawing on the Group's internet operation qualifications to explore more e-commerce opportunities
V1 Group possesses the most comprehensive government authorisation, licenses and operating qualifications in the industry. With this as a foundation and led by the management, the V1 platform, CATV and Liangzi Port supply chain businesses drew on their experience in operating the e-commerce and video websites and endeavours to expand the Commerce 5.0 layout of ''content + supply chain'' e-commerce. It is hoped that it will no longer be a cost line and instead start to contribute profit to the Group.
Dr. ZHANG Lijun, Chairman of V1 Group Limited, said, "As the COVID-19 pandemic comes under control, the society and the people are gradually getting back on track. From the second half of the year to 2021 and 2022, major sports events and tournaments including the European Cup, Copa America, Olympic Games and the World Cup will commence. There may be a 'retaliatory' rebound in the industry. V1 Group had developed a solid foundation in internet sports, media and cultural industries and is, hence, more well-equipped to reborn from ashes of adversities. We aspire to use sports lottery as the key entry into China's trillion-RMB sports market. This is also one of the reasons why we took the lead to establish our presence in Hainai Free Trade Port with a Crazy Sports project in August.
"The investment portfolio of the Group recorded a fair value gain of approximately HK$99.3 million. The primary objective of this investment portfolio is to strengthen the Group's leading position in its core business, and serves as a complementary part to the ''connective'' strategy of the Group's businesses, particularly in the areas of fintech, digital currency, artificial intelligence and other innovative technology. I am very confident that with Crazy Sports as our core business, V1 Group will achieve rapid growth and continue to present outstanding results for shareholders and investors!"
About V1 Group Limited
V1 Group Limited first commenced its internet video business in 2005 and became listed on the Hong Kong Stock Exchange in 2006. Since then, as one of China's top 100 internet companies, the Group is principally engaged in the internet business with a focus on the Chinese sports industry. It has created and built a leading comprehensive online and offline sports community and lottery e-commerce ecosystem in China. The Group's business scope covers the sports lottery online information and offline new retail business, internet audio-visual new media, sports games and live-streaming platform, online trading platform and other internet-related investment in the PRC and a satellite TV station in Dubai, the UAE. The Group adheres to its country, market and shareholder-oriented principle. With strong technological capabilities, the Group will maintain a steady and healthy growth momentum and continue to mine the industry. It will promote the widespread and sustainable development of the internet and sports industry, and interpret the world with a digital and innovative mindset, such that we can all live a more prolific, better and happier life.
For more information, please visit ir.v1group.com.hk.
