Crazy Sports announces 2021 results with a net profit of HK$157 million
HONG KONG,March 28,2022 -- Crazy Sports Group Limited ("Crazy Sports" or the "Company",together with subsidiaries,the "Group",stock code: 82) announced its audited results for the year ended 31 December 2021 (the "year").
During the year,Crazy Sports made every effort to develop the digital sports entertainment business. Through investments in research and development ("R&D"),human resources and sports intellectual properties ("IP"s),it has established a comprehensive online and offline sports community ecosystem encompassing competitive sports,national fitness,sports culture in the industrial chains. These took Crazy Sports' businesses to the next level this year,successfully showcasing the Group's strategic upgrades in technologies,channels,services and branding.
Annual Results Highlights:
Driven by the growth of various businesses,the Group achieved profit attributable to equity holders of the Company of HK$157.0 million. According to the National "14th Five-Year Plan",the market size of China's sports industry will reach RMB5 trillion by 2025. Crazy Sports' digital entertainment ecosystem brings in huge market opportunities,establishing a firm footing for the Group's sustainable growth.
The total number of users on the platform increased by 50% year on year to 48.06 million,and the number of monthly active users increased by 134% year on year to 2.56 million,emerging into a strong driver of persistent growth.
Revenue amounted to HK$511.2 million,up 70.0% year on year,mainly driven by escalating demand for the Group's digital sports entertainment products and services. Compared with 2020,revenue of paid sports information grew 1.4-fold to HK$131.3 million; revenue of sports social interaction platform increased by 89.8% to HK$85.4 million; and revenue of sports and leisure games increased by 32.0% to HK$263.6 million,and lottery-related commission income grew 11.6-fold to HK$30.9 million.
In 2021,our total investments in R&D and intangible assets reached HK$105.9 million,including the use of digital technology to enhance the content,user experience and interaction of the Crazy Red Insights APP and Crazy Sports APP; the official launch of our sports events and interactive quizzing entertainment services platform – Fantasy Sports Events APP; securing official licensing authorizations of top sports and leisure IPs,and developed iconic football e-sports mobile game "Ace Soccer" and a variety of sports games in popular science,injecting impetus into the multi-matrix development of the Crazy Sports ecosystem. Each business segment ushered into a rapid growth phase,and the investment had accomplished significant results.
Review of the four major business segments:
Online paid sports information platform — Crazy Red Insights APPsaw revenue grow more than 1.4-fold year-on-year
During the year,revenue generated form Crazy Red Insights reached HK$131.3 million. Following finals of top 5 European leagues and UEFA Champions League in the first half of 2021,users' enthusiasm for sports quizzes reached a peak during UEFA Euro. After UEFA Euro,enthusiasm of fans participating in sports quizzes did not recede. In addition,as driven by Tokyo Olympic Games,World Cup qualifiers and other events,the revenue of Crazy Red Insights continued to grow.
In 2021,we increase investments in R&D of technologies for Crazy Red Insights with technological innovations as the driver. Crazy Red Insights continued to upgrade its deliverables according to user needs,optimized expert-recommended contents and expanded content categories down to finite details. Crazy Red Insights,based on big data,artificial intelligence,cloud computing and other technological innovations,built an ecological matrix with complementary advantages of content,users,and AI big data through increasing quality content,broadening traffic channels,and upgrading service models
During the year,Crazy Red Insights continued to expand its cooperation channels. In particular,a number of high-quality platforms such as China Mobile's MIGU Video,CCTV.COM,Baidu and ZHCW.COM,etc.,were newly signed before and after UEFA Euro,bringing in a large number of users for Crazy Red Insights. Coupled with the original partners including All FootBall,Zhibo8.cc,HUPU Sports,PP Sports,Crazy Red Insights supplied contents to over 40 platforms,covering about 70% of sports users in China.
Sports social interactive platform — Crazy Sports APP,successfully achieving conversion and realization among business lines
In 2021,a year of sports tournament,the sports social interactive platform of Crazy Sports also grew significantly through capitalizing on high fan demand for sports game information. Crazy Sports APP saw download counts throughout 2021 equivalent to 300% of that for the corresponding period of last year.Revenue increased year-on-year by 89.8% to HK$85.4 million. UEFA Euro ignited the passion of sports fans and fueled growth of Crazy Sports. Crazy Sports provided rich content,such as top expert content from Crazy Red Insights APP,Fantasy Sports Events entertainment activities and live broadcasts,boosting stable growth of paying users and average spending.
Sports events and interactive quiz entertainment services platform – Fantasy Sports Events APP is ready to shine in 2022
In early 2021,Crazy Sports obtained the approval of relevant government authorities of Hainan Province to carry out sports quiz platform and rewards points system,and successfully launched the Fantasy Sports Events platform and Duoduo Rewards Points e-store in September. In 2021,Crazy Sports signed contracts in various sports events,and the sports event live broadcast + interactive quiz model began to harvest results. Several thousands of comprehensive sport events were signed,including the international professional boxing tournaments in Hainan to be held by the International Professional Boxing Unite (IPBU),the Chinese Men's Handball Super League and the pool tournaments,which Crazy Sports has secured events broadcasting rights and the right to cooperate in interactive entertainment. Users can watch the events on the platform while participating in various forms of interactive entertainment related to the league provided by the platform,including interacting with other users,and live broadcast interaction with sports stars,online anchors,and senior commentators,as well as participating in quizzing games related to the league to win various gifts and services through reward points.
Sports and leisure games business released many blockbuster games to drive revenue growth
The Group's sports and leisure games business achieved revenue growth of 32.0% year on year to HK$263.6 million. It released several blockbuster mobile games,giving birth to a hot-selling football mobile gamein mainland China – "Ace Soccer". "Ace Soccer",a strategy flagship game under Crazy Sports,was the first football e-sports mobile gamelaunched in the mainland China market in 2021 with the official IP license from FIFPro. It was debuted on Android and iOS channels in May and June 2021 respectively. Driven byproduct innovation and events,the game was positively received by players on various channels.The game,with its excellent retention and payment data performance,had won long lasting recommendation on key channels including Apple,Huawei,OPPO,VIVO,Jiuyou,Yingyongbao,and TapTap. In August,"Ace Soccer"officially landed in Hong Kong,Macauand Taiwan. and GameOne Group Limitedcarried out comprehensive promotion in Hong Kong. In December 2021,Michael James Owen,an international superstar,became theambassador of "Ace Soccer",drawing attention of many football fans and escalated the game to be a star product in the industry.
In addition,through the establishment of its own distribution ecosystem integrating sports community,promotion through purchasing traffic,alliances,exchanging traffic and giving incentives,Crazy Sports has co-published numerous premium games which have already been signed,significantly enriching its premium games portfolio. The strategy of co-publishing premium games has achieved great success in 2021 and brought strong growth to the sports and leisure games business of the Group.
Sports lottery retail services cover 17 provinces and municipalities nationwide
The sports lottery retail business saw revenue grew by 11.6 times year-on-year with number of sports lottery retail points of sale approved for setting up exceeding 7,000,covering 17 provinces and municipalities nationwide. In addition to the existing 18 contracted branded convenience store chains,21 new channels were added during the year,making a total number of 39 national chain retail brands in cooperation.
Mr Peng Xitao,CEO of Crazy Sports,said: "2022 is a year gathering major events. Embracing the forthcoming FIFA World Cup Qatar,we plan to launch a World Cup strategy to cement our success in this area. Leverage growth experiences in previous large events,our team will develop our strategic game plan in advance and prepare technologies in need. We shall align our pulse with those of the Cup matches to enroll fresh players through our new retail operations offline. Meanwhile in the online space Crazy Red Insights will drive the Group's online revenue growth. In addition,we will sign up official IP franchise authorisations with more sports events at home and overseas to enrich our sports events IP matrix. We shall provide on the Fantasy Sports Events platform,more sports event information,event live broadcasts,paid insights sports experts,allowing users to experience interactive entertainment quizzes on more sports events. We are tapping opportunities afforded by launches of the metaverse and digital collectibles. We plan to release a variety of our digital collectibles linking the games. Crazy Sports has released the first metaverse sports game in China,'Crazy Soccer',and will feature new game plots surrounding the World Cup theme that are set to raise eyebrows of game critics from around the world."
Looking ahead,Crazy Sports Group Chairman Zhang Lijun said: "According to the National '14th Five-Year Plan',by 2025,the sports industry in China will reach a significant market size of RMB5 trillion. Becoming a sports superpower has evolved into a strategy on the national level,receiving escalating policy support. This is our first annual results announcement following our official name change,showcasing our strong growth momentum. This has proven that we did the right thing at the right time. In the future,Crazy Sports will be associated with global sports events,and will establish a racetrack for happiness in the metaverse. Crazy Sports will connect with everyone in the world,and inspired by the Olympic motto 'Faster,Higher,Stronger — Together',make human beings stronger! In 2022,let's go to the future together!"
About Crazy Sports Group Limited
Crazy Sports Group Limited is a leading digital sports entertainment community operator and internet sports industry leader in China,and it is listed on the Main Board of HKEX (Stock code: 82.HK). Laying our strategy on powering up China through sports,we dive deep into the trillion-worth digital + sports entertainment industry racetrack. Based on the unique massive sports user database,leveraging digital,artificial intelligence and blockchain technology to empower traditional sports events,we operate in three core business areas pivoted on "Events + Quizzes,IPs + Sports Games,Crazy Red Insights + Lottery Sales". Our mission is "Let Sports Create Happiness",we are dedicated to building a multi-channel entertainment platform allowing real-time participation in sports events.
