HONG KONG / ACCESSWIRE / August 30, 2019 / V1 Group Limited ("V1 Group" or the "Group"; stock code: 00082.HK) today announced the interim results of the Group for the six months ended 30 June 2019 (the "Reporting Period" or the "Period"). During the Reporting Period, the Group maintained steady development of its business performance and business sectors despite the global economic downturn. For the six months ended 30 June 2019, the Group recorded unaudited revenue of over HK$1.2 billion. Gross profit for the Period was over HK$70 million, compared to a gross loss recorded in the same period last year, successfully achieving a turnaround, and far exceeded the industry average. The full acquisition of Fengkuang Tiyu ("Crazy Sport") generated great potential for the Group's revenue and the business became the main profit growth driver for the Group during the Period.
Loss saw significant reduction while main business achieved a turnaround from loss to profit to contribute net profit
During the Period, V1 Group recorded gross profit of over HK$70 million, achieving a significant reduction in losses compared to the same period last year. The Group's major businesses achieved a turnaround in gross profit. During the Period, Crazy Sport contributed over HK$30 million in gross profit and became one of the largest online sports communities in the country. Liangzi Gang ("量子港") recorded a substantial increase in gross profit margin. Liangzi Gang has become an Apple T2 authorised dealer during the Period.
Performance of Crazy Sport exceeded expectations with strong growth momentum in both revenue and profit
The Group completed the full acquisition of Crazy Sport last year. During the Period, Crazy Sport continued to cultivate its position in the sports industry. In the first half of 2019, it exceeded expectations and completed 60% of the guaranteed profit as stated in the acquisition document, showing growth in both revenue and profit.
By business sector, the monthly average revenue per user (ARPU) of sports live broadcasting showed a 3.5 times growth, while the number of daily active anchors and total number showed a threefold and fivefold increase respectively. The Crazy Recommendation ("瘋狂紅單") mobile App provides paid information services for sports lottery players. It has achieved outstanding performance in the paid lottery knowledge sector by expanding the lottery analyst team, comprehensively upgrading sports lottery analysis tools and exploring traffic cooperation channels. As a senior business partner for official games of the Chinese Super League, Crazy Sport makes good use of its advantages to record a total revenue of more than RMB100 million and secure more than 1 million sports game users during the Period.
Based on the Group's development strategy, in the second half of the year, Crazy Sport will continue to focus on the sports industry and forge a business ecosystem for its "Video +" sports community.
V1 Group's overall business revenue remained stable and satisfactory; well-deployed management strategy led to good results
Dr. ZHANG Lijun, Chairman and Executive Director of V1 Group Limited, said, "The Group kept up its momentum in the less-than-ideal investment environment and maintained a stable, satisfactory overall business development. This showed that our strategy of 'business streamlining, deployment adjustment, and video focused' for the video business is taking effect. In the future, we will further implement the integrated development strategy, and seize the opportunities brought by 5G technology to improve our new media matrix. With video news community, video sports community, and video new retail e-commerce as spearheads, we will continue to focus on our major businesses and strive to develop into a smart Internet enterprise"
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 Sport") 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.
SOURCE: V1 Group Ltd