HONG KONG, Jan. 21, 2020 /PRNewswire/ -- One of China's top 100 internet companies with a tri-core "Video+" business focus, V1 Group Limited ("V1 Group" or the "Company", together with its subsidiaries, the "Group"; stock code: 00082.HK), today announced to allot and issue the 75,000,000 Placing Shares to Yonxi Great China Fund SPC at a price of HK$0.2 per Placing Share, which represent approximately 1.75% of the Company's issued share capital enlarged by the Placing Shares.
According to the Placing Agreement, the placing price represents a premium of approximately 4.06% to the average of the closing prices per Share as quoted on the Stock Exchange for the five consecutive trading days prior to the date of the Placing Agreement. After deducting the costs and expenses, the net proceeds from the Placing of approximately HK$14.8 million will be used for the purpose of general working capital of the Group.
Based on the announcement, there is still a huge potential to develop the sports lottery industry in the PRC, and the demand for sports lottery in the PRC will inevitably attract a higher-than-normal growth due to the major tournaments that are to be held in the coming three years. With the acquisition of Beijing Crazy Sports Management Company Limited ("Crazy Sports") in November 2018 and the remarkable progress of the Group towards building a business ecosystem to provide all-in-one online and offline sports entertainment destination for sports and sports lottery users, the Board believes that, the sports lottery business will become one of the core business segments of the Group, and the Placing will allow for the acceleration in building up the Group's sports lottery new retail business.
The online and offline businesses of Crazy Sports form a new retail model that encourages O2O user redirection and consumption through both channels. The Company has started to develop its presence in the sports lottery market since 2010. Over the decade, it has become an experienced operator in the lottery business. With a vast lottery player community and comprehensive match statistics database, the Group keeps up with the country's national lottery strategies to update its business focus accordingly. This has supported the Group to achieve a relatively fast growth and has brought to it bright prospects.
The Group previously announced that the net profit of Crazy Sports for FY2019 shall exceed the guaranteed profit of RMB50 million as stipulated in the initial sales and purchase agreement, and sports lottery terminals will be installed in 8,960 locations across 12 provinces in China to provide sports lottery sales services. In addition, Crazy Sports has also commenced one-to-one VIP lottery sales services through 45 authorised lottery sale centres.
Dr. ZHANG Lijun, Chairman and Executive Director of V1 Group Limited, said, "There is still a huge development potential for the sports lottery industry in the PRC, given that the coming three years will be crucial to the sports industry as there will be many key global sports tournaments being held. This will bring tremendous opportunities to the Company. The Placing represents the first milestone to bring in financial and strategic investors to the Group. We will closely follow the market trend and accelerate the building of the sports lottery new retail business."
About V1 Group Limited
Founded in 2005, V1 Group Limited became a listed company on the Main Board of the Hong Kong Stock Exchange in 2006 and is the first China online video company to be listed in Hong Kong. The Group has a "Video+" business focus. Supported by 5G technology, it aims to build an ecosystem around news video community, sports video community and video new retail. In 2016, V1 Group successfully transformed from a new media enterprise into an internet-based new economy entity. Leveraging on its diverse business covering the media, connected living, internet financing, advanced internet technology as well as other sectors, the Group has become one of the top 100 internet companies in China. the Company made a full acquisition of Fengkuang Tiyu ("Crazy Sports") in 2018 to accelerate the construction of its "Video+" sports community business model, creating a strong overall revenue growth momentum for the Group.
For more information, please visit ir.v1group.com.hk.
