DLK Advisory Limited
Crazy Sports Group (82.HK) Announces 2022 Annual Results

Crazy Sports Group Limited

(Incorporated in Bermuda with limited liability)
(Stock code: 82)

Revenue increased c.40% YoY to HK$700 million

Total number of platform users increased c.50% to over 70 million

Expanding coverage of digital sports entertainment services with product smart upgrades
Support growing brand influence

(Hong Kong, 30 March 2023) – Crazy Sports Group Limited (“Crazy Sports”, together with its subsidiaries, the “Group”, stock code: 82) announced its annual results for the year ended 31 December 2022 (“2022”).

Crazy Sports is well-positioned to penetrate the trillion-worth digital sports entertainment industry racetrack. Leveraging its unique massive sports user and event database, along with its key technologies on big data, artificial intelligence, and blockchain, it strives to empower the traditional sports industry, and has established “Crazy Red Insights + Lottery Sales, Events + Quizzes, IP + Games” as its core pathway to materialise its digital sports strategy. Adhering to the mission of “Let Sports Create Happiness,” the Group is committed to serving users with multi-dimensional, innovative, and premium IP-based digital entertainment platforms, offering users with unique and distinctive sports entertainment consumer services. 

Annual results highlights:

• Revenue of the Group increased by 38% year-on-year (“YoY”) to HK$703 million, the total number of platform users increased by 48% to 71.1 million as compared to December 2021, with monthly active users increased by 98% YOY to 5.08 million. Profit for the year was HK$17.7 million, adjusted EBITDA reached HK$110 million. The growth in users and revenue was attributable to the Group’s strategic layout in establishing a premium sports entertainment platform, allowing it to seize the opportunities from the trillion-worth digital sports entertainment market in China.

Riding on the World Cup 2022, Crazy Red Insights continued to be the most important growth engine of the Group. Supported by its investment in the research and development (“R&D”) of big data processing system and AI technologies during the year, the Group was able to carry out various smart upgrades for its products. In particular, Crazy Red Insights continued to upgrade its AI big data model, striving to provide users with a great variety of soccer and basketball games analysis.

• Under the Group’s World Cup Strategy, soccer games such as “Ace Soccer” (球場風雲) and “Soccer Manager” (夢幻足球世界) released World Cup expansion packs, and became the signature products highly recommended by Apple, Android and different channels during the World Cup. In addition, Crazy Sports partnered with well-known games publishing platforms in co-publishing games business in China. Leveraging the resources advantage of the sales channels, the Group saw a growth in revenue generated from the co-publishing games business.

• In 2022, by leveraging its long-standing digital experience and resources, the Group used sports and games as the starting point, seeks to build a metaverse platform which encompasses ‘‘content + technology + ecosystem”. Its newly launched digital collectibles platform, “Qiankun Digital Collectibles”, has also attracted notable noise and traffic, providing a strong impetus to the growth in user base of Crazy Sports’ existing sports entertainment community.

The increase in revenue was mainly due to three driving factors:

Expanding user base and demand – Following its successful user acquisition and retention strategy, the total number of platform users grew by 48% YoY to 71.1 million in 2022. The Group deployed additional resources on product innovation and marketing, especially on digital sports entertainment products that have higher revenue potential. For Crazy Red Insights, the Group launched new functions such as muti-dimensional analytic content, as well as optimizing the user experience for expert and package subscriptions, which were able to better satisfy users’ needs. Notable upgrades have also been made to the Group’s core gaming products such as Ace Soccer, which resulted in improved user satisfaction. Compounded by the World Cup fever and successful marketing campaigns on the Group’s core products, the Group has gained surging publicity, laying a solid foundation for user growth.

Launch of new products, smart upgrades and expansion packs for games and applications – The Group actively pursued various smart upgrades during 2022, which were able to boost user conversion. For example, the Group continued to upgrade its AI big data Red Insights Model under Crazy Red Insights. Crazy Red Insights also joined hands with “Avatar Mulan” (虛擬人沐嵐) during the World Cup, interacting with users through a combination of video+live broadcast, which drew the attention and love from young people and sports fans, as well as boosting sales conversion and user retention. In addition, the Group introduced four premium games in the year, including the new release of ice-snow themed “Dream Ski” (夢幻滑雪), CSL themed “Dream Soccer”, racing themed “Snow Mountain Drift” (雪山漂移) and mythology themed “Genesis: Anthem of Deities” (太初行). Riding on the World Cup momentum, the Group’s soccer games released specific World Cup expansion packs. The Group also signed contracts with major gaming platforms for games co-publishing, expanding its revenue generated from sports and leisure games.

Introduction of the self-developed digital collectibles platform – Qiankun Digital Collectibles was launched in April 2022. Leveraging its on hand premium IP resources, the platform offers its users with themed digital collectibles, successfully gaining attention from sports and cultural enthusiasts as well as the young and trendy users.

Mr. PENG Xitao, CEO of Crazy Sports Group, said, “2022 was a difficult year, as our team strive to work against adversity under the impact of COVID-19 pandemic and fluctuating macro environment. Looking into 2023, Crazy Sports will embrace new industry development, by continuing its venture into sports lottery, event digital empowerment, sports game development, sports and education integration, and sports artificial intelligence. The Group will also strengthen its R&D, particularly on 5G and metaverse applications, so as to improve product innovation and user experience. On individual business segments, we will further improve user experience of our paid sports information platform by introducing advanced data analysis and artificial intelligence technologies to the product. For sports games, we will continue to explore more genres and gameplay to boost user engagement and retention. We will also continue our journey of digital empowerment of sports events, while looking into the opportunities from the increasing integration of sports and education, through our experience and technological advantages. For our sports metaverse, we will strengthen our content innovation, so that we can create a more authentic and immersive experience of virtual sports events, entertaining our users and meeting their needs.”

Dr. Zhang Lijun, Chairman of Crazy Sports Group, said, ”As we enter 2023, the digital sports industry is also stepping into a new era with new developments. Factors such as the growing importance and promotion of sports industry development within the country, as well as the deep integration of the sports industry with other related industries, and digital transformation will create new modes of consumption in sports, have all laid a solid foundation for the sustainable development of Crazy Sports.

As we march into 2023, events such as the FIFA Women’s World Cup, the Asian Games and the FIBA Basketball World Cup are expected to be held as scheduled. Supported by our growing database and our team with rich operational experience, Crazy Sports will grow and evolve in the post-pandemic era, creating more values for our shareholders. Let’s work hard and forge ahead, and achieve greater heights together in 2023!”

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This press release is issued by DLK Advisory Limited on behalf of Crazy Sports Group Limited.

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