30 Mar Alibaba and YuuZoo Sign Agreement for YuuZoo to Manage and Run Alibaba Sport Group’s E-Sport Events in China
- YuuZoo signs agreement with Alibaba, the largest e-commerce and payment company in China, for YuuZoo’s Chinese JV YuuGames to manage and run Alibaba’s eSport events throughout China
- Alibaba through Alisports group plans to invest RMB 100 million (US$ 15.4 million) for WESG alone
- Multimillion-dollar contract reinforces the position of YuuGames as a leading organiser of eSport events in China
- Partnership with China’s largest e-commerce and payment company opens the door for discussions about co-operation in YuuZoo’s other areas of activity in China, including games, social networking, e-commerce and payments
- RMB 35.6 million (US$5.5 million) prize money awaits grand champion for the competition
Singapore & Shanghai, 30 March 2016: Singapore-listed YuuZoo Corporation Limited (“YuuZoo” SGX: AFC.SI), a leading global third generation social e- and m-commerce company, in a press conference organised today in Shanghai with the Alibaba Group, announced that it has signed an agreement with Alibaba Sports Group (“AliSports”). Under this agreement, YuuZoo, through its Chinese JV YuuGames, will organise and run the AliSports World Electronic Sport Games (“WESG”), as well as manage the E-Sports Clubs Competition Center for Alibaba throughout China. WESG will commence in April 2016 with the 20 appointed e-sports clubs competition centers. Contest participants will compete for the RMB 35.6 million (US$5.5 million) prize money. AliSports is the newly-formed sports division of global e-commerce powerhouse Alibaba. It targets China’s highly lucrative sports industry, which is expected to grow to US$813.87 billion by 2025. AliSports will be engaged in different sectors of the sports industry, including eSports. The group plans to invest RMB 100 million (US$ 15.4 million) for WESG alone.
Under the agreement, AliSports will pay YuuGames a multimillion US dollar fee to organise and run WESG and manage AliSports’ E-Sports Clubs Competition Center. Through this deal, YuuZoo will gain a significant mumber of new users, who will be added to YuuZoo’s fast-growing userbase. Further, YuuZoo will generate additional revenue from promotional fees, advertising revenue, and e-commerce sales. AliSports and YuuGames are planning to launch 1200 eSports events this year in 15 cities across China, which is home to over 100 million eSports fans, and over 440 million gamers.
Thomas Zilliacus, chairman of both YuuZoo and YuuGames says, “We are very proud to have been selected by Alibaba Group and AliSports to be their partner and to organise their eSports events throughout China. This comes hot on the heels of YuuGames organizing some of China’s largest eSport events, the highly successful ESCC and CIG games, in partnership with key Chinese Government entities. We are confident that we can make Alibaba’s World Electronic Sport Games a hugely successful and leading event in China’s massive games market. As a new partner to China’s largest e-commerce group, we are not only looking to reinforce our position as a leader in China’s eSports sector, but also to discuss opportunities with Alibaba Group to jointly grow YuuZoo’s other China-based businesses, including our e-Sports gaming business, payment business and social e-commerce business.” At the press conference Zhang Dazhong, CEO of AliSports said, “Sports is a multibillion dollar business in China, with massive growth potential. That is why Alibaba is investing heavily in this vertical. Linking sport and technology enhances the quality of life. That is what we want to do through AliSports. We are happy and proud to have YuuZoo as a partner. In YuuGames, we have found a partner who shares our ideals. With YuuGames’ much lauded successes in organizing the top eSport events in China, it was easy for us to choose them as our official partner in organising our events. We look forward to working with them as we kick off World Electronic Sport Games in April.”
ABOUT YUUZOO: Headquartered in Singapore and listed on the SGX mainboard (SGX: AFC), with access to over 118 million registered users and hundreds of millions of TV viewers across 164 countries, YuuZoo uniquely combines social networking, e-commerce, games and payments in a mobile-optimised, fully localised ‘Tribal Marketplace’, where the consumer can choose the Tribe to join and access hundreds of tribal and targeted social networks, shops and entertainment through one single login. All networks are by franchisees localised for each market as comes to language as well as merchandise and design. Based on this business model, unique in the digital space, YuuZoo is able to grow internationally at a very low cost. The model has consistently generated strong margins. To see the networks, log into: www.yuuzoo.com. For more information about YuuZoo, please log on to: www.yuucorp.com
ABOUT YUUGAMES: YuuGames, founded in October 2014, is one of the leading organisers of e-sport events in China. YuuGames focuses in providing complete eSports solution for the eSport industry. YuuGames covers 18 provinces in China, operating and promoting events in more than 1,000 cities, with elite team members from game and eSports industry. Its business scope includes traditional eSports event organisation, e-sport commentary, competition training, and game video playback.
ABOUT ALIBABA GROUP: Alibaba Group Holding Limited is China’s leading e-commerce company. It provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals. It also provides electronic payment services, a shopping search engine and data-centric cloud computing services. The group was founded in 1999 when Jack Ma founded the website Alibaba.com, a business-to-business portal to connect Chinese manufacturers with overseas buyers. In September 2014 it listed through the largest IPO in history with a market cap of US$231 billion. In 2015, Alibaba reported revenues of US$12.29 billion. Alibaba’s consumer-to-consumer portal Taobao, similar to eBay.com, features nearly a billion products and is one of the 20 most-visited websites globally. The Group’s websites accounted for over 60% of the parcels delivered in China by March 2013, and 80% of the nation’s online sales by September 2014. AliPay, an online payment escrow service, accounts for roughly half of all online payment transactions within China.
ABOUT ALISPORTS: Alisports was set up in September with Alibaba as majority owner alongside Sina and Yunfeng Capital, an investment firm owned by Alibaba chairman Jack Ma Yun. The company is focused on China’s sports market, which has been forecast by the government’s state council to grow to 5 trillion yuan by 2025. The government has declared sport as the next driver of economic growth. AliSports CEO is Zhang Dazhong, former COO of Shanghai Media Group (SMG). The plan of AliSports involves leveraging the reams of data on the hundreds of millions of users of Alibaba web products to encourage them to become sports fans and participants – and then splash out on sports events, merchandise and equipment. AliSports aims to be the go-to provider of web-shops, profile sites, etc. for global sports stars and teams aiming to connect with those millions of consumers. In the six months since founding, Alisports has agreed deals to screen the NFL in China, sponsor Fifa’s Club World Cup, and signed partnerships with Brazil star Ronaldo and the governing bodies of boxing and basketball.
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