For Immediate Release
V1 Group's All-in-one Online & Offline Sports Lottery New Retail Business
Generates Vast Revenue Growth Potential and Accelerates Monetisation
Net profit of Crazy Sports for FY2019 shall exceed the guaranteed profit
Collaborating with Smart Franchise Store Chains to install close to 9,000 sports lottery terminals
(Hong Kong, [-] January 2020) - 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 that the Group has made remarkable progress towards building a business ecosystem to provide all-in-one online and offline sports entertainment services. The FY2019 net profit of the Company's wholly-owned subsidiary, Beijing Crazy Sports Management Company Limited ("Crazy Sports"), shall exceed the guaranteed profit of RMB50 million as stipulated in the initial sales and purchase agreement. Crazy Sports has also entered into collaboration agreements with 12 smart franchise store chains to install sports lottery terminals at 8,960 locations across 12 provinces in China, so as to provide sports lottery sales services. The synergies created by bridging its online and offline business will allow the Group to accelerate monetisation of its resources.
With regard to its online business, the Company acquired Crazy Sports in November 2018, with its three main sources of revenue being the Crazy Recommendation (瘋狂紅單) App, a paid lottery information services platform, the Fengkuang Tiyu App, a match information, live-streaming and social interactive services platform, and its sports mobile games operation and distribution business. The Company has announced that such main business has successfully recorded overall positive growth in FY2019.
According to the acquisition agreement of Crazy Sports, the vendor has warranted and guaranteed that the actual net profit of Crazy Sports for FY2019 to be not less than RMB50 million. Based on the unaudited management account of Crazy Sports for the year ended 31 December 2019, the net profit of Crazy Sports will exceed the guaranteed profit.
With respect to the offline sports lottery sales business, the Group proactively commenced the operation of the offline franchised lottery sales business which involve the collaboration with large convenience store chains and existing authorised lottery sale centres in China. As at 31 December 2019, Crazy Sports has entered into collaboration agreements with 12 smart franchise store chains, including Haolinju (好鄰居), Quanshi (全時), Bianlifeng (便利蜂), Jiajiayue (家家悅), Pangzidian (胖子店), Wanhexiang (萬合祥), 7-Eleven, Youkejia (優客家), Qianhui (千惠), Tianfu (天福), Heli (合力) and Youlinyoujia (友鄰有家), through its subsidiary, Beijing Crazy Sports Management Company Limited. Sports lottery terminals will be installed in 8,960 locations across 12 provinces in China to provide sports lottery sale 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, "The Group strives to develop and expand its all-in-one online and offline sports lottery new retail ecosystem: the online business accumulates a vast sports user base, which continues to bring profit to the Group, whereas offline, the expanding geographical coverage of sports lottery sales terminals as they continued to be installed in chain convenience stores across the country will bring a new lottery retail experience to users. We believe the synergies that stems from bridging our online and offline sports lottery business will help accelerate the Group's overall performance in monetising our resources and further expand our sports lottery retail footprint in the future."
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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.