04 Oct Alisports Extends to 5 years its Management Agreement with YuuGames for its eSports Arenas, Targeting China’s 450 Million Gamers
- YuuGames, the Chinese j.v. of YuuZoo Corp Ltd and Alisports, the subsidiary of China’s leading e-Commerce company Alibaba, have signed a 5-year extension of the recently signed 1-year management agreement for YuuGames to manage all of AliSports’s eSports Arenas in China.
- The extension between YuuGames and Alisports is expected to generate a steady and strong new revenue stream via e-Sports gaming, e-Commerce and social network services for the huge games market in China, with an estimated 450 million gamers and an online games market size of 150 billion RMB
CHINA & SINGAPORE, October 4th 2016 – YuuGames, the Chinese joint venture company of Singapore-based YuuZoo Corporation Limited (“YuuZoo” SGX: AFC), today announced the extension of its management agreement with Alisports, a subsidiary of Chinese e-Commerce giant Alibaba, for the management of Alisports eSports Arenas throughout China. The agreement is now set to last until February 2021, bringing the full contract commitment to a total of 5 years from the initial period of 1 year.
After a successful collaboration for the China Qualifiers of the World Electronic Sports Games (WESG), which in just 2 months drew thousands of participants across 15 Chinese provinces, YuuGames and Alisports have strengthened their commitment to each other by extending to 5 years the initial 1-year management agreement.
The announcement comes at a time when China’s games market is booming. China is the global leader in game revenues, with Chinese games revenues estimated to be over 150 billion RMB in 2016.
The Arena Operation scheme is conceived to transfigure internet cafés in China into eSports Arenas with eSports and e-Commerce as main revenue drivers. eSports spurs online game revenue, as gamers spend on online game products. The e-Commerce market in China is estimated to be worth around 20 trillion RMB, with the projection of hitting 28 trillion RMB by 2018. On top of these 2 main revenue drivers, advertising and sponsorship revenue will add to the ability of YuuGames and AliSports to generate a steady and strong new revenue stream.
YuuGames has vast experience in the Chinese games industry, and enjoys a close and strong relationship with China’s internet cafes, which number close to 150,000. YuuGames is transfiguring internet cafes into eSports Arenas across 15 Chinese provinces including Shanghai, Qingdao, Changsha, Hefei, Beijing, Shenyang, Nanning, Chengdu, Wuhan, Xian, Shenzhen, Hangzhou, Fuzhou, Harbin and Kunming. The transfiguration is expected to not only benefit YuuGames and AliSports but also the many internet cafes who, while adopting online e-Sports gaming as a core service, are able to streamline their business focus and yield new revenues and profits in both eSports and e-Commerce.
“We sincerely appreciate the trust and confidence Alisports has shown us by extending the relationship to five years,” says Thomas Zilliacus, Chairman of YuuZoo and YuuGames. “YuuZoo is building digital turnkey platforms and solutions which generate revenue via social networking, e-Commerce, eSports and games in a marketplace which is a one-stop haven for users. We are very pleased to work with AliSports in China in transforming an old Internet café concept into an exciting new eSports environment that enables hundreds of millions of people to be part of the booming eSports scene in China.”
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 provide 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 on deals to screen the NFL in China, sponsor FIFA Club World Cup, and signed partnerships with Brazil star Ronaldo and the governing bodies of boxing and basketball.
Headquartered in Singapore and listed on the SGX mainboard (SGX: AFC), with access to over 118 million registered users in 164 countries, YuuZoo uniquely combines social networking, e-Commerce and games in a mobile-optimised, fully localised tribal marketplace, where the consumer can access hundreds of tribal social networks, shops and entertainment through one single login. YuuZoo grows it international business through a network of franchisees and partners. The network currently covers 68 countries.
To see YuuZoo’s tribal marketplace, log into: www.yuuzoo.com.
For more information about YuuZoo, please log on to: www.yuucorp.com
For more information, please contact:
DD : +65 6577 0658