05 Jun YuuZoo Forms E-Sport Joint Venture in China, Partner Commits to Minimum 5 Million Active Paying Users and Minimum 1.5 Million RMB in Profits in First 12 Months
JV partner XG AMA has existing relationships with over 3,000 online games bars in China.
Online games in China has a penetration rate of 59.5% among total internet users and 33% of mobile users.
In-game purchasing is a lucrative source of revenue, with 66% of gamers in China spending money on games each month.
Singapore, June 4th , 2015: Singapore-listed YuuZoo Corporation (“YuuZoo” SGX: AFC.SI) one of the world’s fastest growing third generation mobile social e-commerce companies, today announced it has formed a new joint venture company in China with XG AMA, a leading provider and organizer of e-sport events and related games activities through internet games bars and cafes in China. Under terms of the agreement XG AMA is committed to deliver a minimum of 5 million active paying users and a minimum profit of 1,5 million RMB in the first 12 months of operations.
The new joint venture company, “YuuGames” will sit within YuuZoo’s virtual shopping mall, fully localized and mobile-optimized for China. It will be managed by Hu Zhi Xiang, the founder of XG AMA and one of the best-known pioneers and entrepreneurs in the internet games bar business in China.
YuuGames will target the over 146,000 internet games bars in China which serve some 120 million game players. XG AMA already has existing agreements with over 3,000 net bars in place. Most of these bars have thousands of individual members.
YuuGames will leverage these partner bars for an (O2O) business model, wherein the visitors of the partner bars will become members of the YuuZoo social e-commerce network, effectively converting offline customers into online members of YuuZoo. YuuGames is developing a mobile app, which allows interaction be-tween the bars and its users, helping the users find the location of the bar’s and enable the user to reserve seats and arrange matches between e-sport teams. The app will also enable shopping, mobile games broad-cast, game events and video screening, lottery games and voting on mobile for games and events.
At the end of 2013 the online games market was worth $13.5 billion (82.1 billion RMB). This is expected to grow to 131 billion RMB by the end of 2015, with mobile games accounting for 33.8 billion of the total revenue. Experts predict that the rapidly growing number of smartphone users in the country will mean that mobile will continue to increase its share of the Chinese online games market. By 2018, it is expected that the gap in revenue share between online games and other games will close, with online games accounting for nearly half of all games spend in the country. It is estimated that in 2015 there will be 266 million Chinese online gamers, spending at least 2 hours per month games.
Commenting on YuuGames joint venture, Thomas Zilliacus, Chairman and CEO of YuuZoo said, “According to official statistics, there are 146,000 Internet games bars and around 120 million Internet games bar customers in China. About 45 million customers patronize the net bars each day. 80 per cent of them are playing games. They have an average age of 18~25. e-Sports Gaming is one of our three strategic pillars to engage users and generate revenue”
“We are very excited about the new joint venture with one of China’s leading entrepreneurs in the Internet games bar space. YuuZoo’s business in China is growing very rapidly. In less than one month, our Chinese social e-commerce site www.yuuzoo.cn has jumped in the global Alexa ranking by more than 11 million positions. YuuGames will increase the attractiveness even more, and contribute to revenue and MAU growth in the world’s largest market” he further added.
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Headquartered in Singapore and listed on the SGX mainboard (SGX: AFC), with access to over 85 million registered users and some 800 million TV viewers in 164 countries, YuuZoo in a unique way combines social networking and e-commerce in a mobile-optimized, fully localized virtual shopping mall, where the consumer can access hundreds of targeted social networks, targeted shops and targeted entertainment through one single login. All networks are localized for each market as comes to language as well as merchandise and design. To see the networks, log into: www.yuuzoo.com and www.yuuzoo.cn. For more information about the company, please log on to: www.yuucorp.com
Shanghai Xigu Network Technology Co., Ltd (AMA), founded in October 2014, is one of the largest advocates of Internet Café E-Sports Union and E-Sports Entertainment and Cultural Industry in China. AMA focuses in providing complete e-sports solution for the internet café e-sport industry. So far, AMA covers 18 provinces in China, operating and promoting events in more than 1,000 cities, with elite team members from game and e-sports industry. Its business scope includes traditional e-sports event organization, e-sport commentary, competition training, and game video playback etc.
Macquarie Capital (Singapore) Pte. Limited (“Macquarie”) was the financial adviser to W Corporation Limited (now known as YuuZoo Corporation Limited) in relation to the acquisition of the entire issued and paid-up share capital of YuuZoo Corporation and its subsidiaries. Macquarie assumes no responsibility for the contents of this announcement.