He Youjun, the son of the gambling king, has won the first stock of Chinese esports.
On July 26th, Xingjing Weiwu Group (hereinafter referred to as Xingjing Weiwu, the parent company of well-known e-sports clubs eStar Gaming and Ninjas in Pyjamas), an e-sports company under the son of the gambling king He Youjun, was listed on the NASDAQ Stock Exchange with the stock code "NIPG" and a public offering price of $9/ADS. On the first day of listing, the stock price of Xingjing Weiwu fluctuated significantly, rising more than 45% at one point, reaching a high of $13.12 per share, and then falling sharply again, breaking through at one point, with the lowest stock price reaching $8.04 per share, down about 10% from the issue price. As of the close, the stock rose slightly by 0.22% to $9020, with a total market value exceeding $500 million.
The successful listing of Xingjing Weiwu also signifies the official birth of China's first esports stock. On Weibo, He Youjun said, "Going public is not just my dream, but also carries the expectations of countless Star Racing powerhouses, and can be considered a small step for the entire Chinese esports industry." "Star Racing powerhouses, come on! Chinese esports, come on
China's first esports stock is born
On July 26th, Eastern Time, Xingjing Weiwu was listed on the NASDAQ Stock Exchange with the stock code "NIPG". He Youjun, Chairman and Co CEO of Xingjing Weiwu, Hicham Chaxin, Co CEO of Xingjing Weiwu, and Sun Liwei, President of Xingjing Weiwu, attended the Nasdaq bell ringing ceremony. Bob McCoy, Vice Chairman and Asia Pacific Chairman of Nasdaq Group, emphasized that He Youjun has set a record as the youngest founder of a Nasdaq listed company in Asia.
Public information shows. Xingjing Weiwu is an e-sports and gaming joint venture formed by the merger of Swedish e-sports organization Ninjas in Pyjamas and Chinese e-sports brand ESV5. The two companies officially merged in early 2023 and soon renamed their League of Legends team Victory Five as Ninjas in Pyjamas. As a global comprehensive digital sports group with electronic sports club business as its core and diversified businesses such as event activities and digital sports talent brokerage developing in parallel, Star Sports Weiwu's business covers countries and regions in Asia, Europe, South America, etc. Xingjing Weiwu has multiple mainstream esports projects such as League of Legends, Honor of Kings, Counter Strike: Global Offensive, Rainbow Six: Siege, CrossFire, etc. It has esports bases in Wuhan and Shenzhen, and offices in Stockholm, Sweden, Shanghai, and Sao Paulo, Brazil.
In this IPO, Xingjing Weiwu issued a total of 2.25 million ADS (American Depositary Shares) at a price of $9 per ADS, raising a total of $20.25 million. The successful listing of Xingjing Weiwu also marks the official birth of "China's first esports stock".
According to the prospectus, Xingjing Weiwu's revenue for 2023 was 83.67 million US dollars, an increase of 27% compared to the same period last year's 65.8 million US dollars; The gross profit was approximately 7.2 million US dollars, compared to 3.74 million US dollars in the same period last year. The overall gross profit margin and the gross profit margins of the three main business segments have steadily improved, demonstrating strong business growth capabilities. At the same time, Xingjing Weiwu is creating a unique& quot; Esports+& quot; Business model, expanding talent management, event activities, advertising, and other innovative businesses through e-sports club business. As of the end of 2023, the net revenue from the operation, talent management, and event activities of Xingjing Weiwu Esports Club accounted for 25.9%, 62.9%, and 11.2%, respectively. Diversified revenue sources ensure sustainable profitability. In addition, Xingjing Weiwu is actively exploring opportunities in the fields of esports education and training, community marketing, esports complexes, and IP licensing.
(Xingjing Weiwu's revenue for 2022 and 2023. Source: sec. gov)
Xingjing Weiwu believes that esports has a unique system of rules and interactive modes. As a pioneer and explorer in the professionalization, popularization, and globalization of esports, Xingjing Weiwu is becoming a positive and motivating sports bridge. This listing in the United States will further enhance the company's governance capabilities, open up new opportunities for the company's globalization and diversified development, and become an innovative sample for investors to understand the electronic sports and digital sports industry and participate in the layout of emerging tracks.
He Youjun said, "Creating extraordinary esports experiences and helping dreams connect the world is the original intention and mission of Xingjing Weiwu Group, and it is also the driving force for our continuous progress. The development of Xingjing Weiwu comes from the love and support of millions of gamers, which inspires us to constantly pursue excellence and always stand at the forefront of the gaming and entertainment ecosystem. In the future, we will take the opportunity of going public to create the world's most popular and valuable digital sports group, bringing the ultimate competitive experience to esports enthusiasts worldwide and creating greater value for global investors
He Youjun also posted on his personal Weibo account for the first time, saying, "Thank you all for your support and encouragement along the way. In the future, we will continue to move forward with determination
(Source: He Youjun Weibo)
Hicham Chaxin said, "This is an incredibly exciting moment. As a pioneer in the esports industry, NIP Esports Club has been competing in the esports arena since 2000. Starting today, we will embark on a new journey. The listing of Xingjing Weiwu Group represents the first truly global esports organization spanning across Asia, Europe, and South America, officially meeting with everyone
The esports industry is rapidly developing, and the first esports Olympics will be held in Saudi Arabia in 2025
As an emerging industry, the electronic sports industry has developed rapidly in recent years. According to a report by Frost&Sullivan, the market size of the global esports gaming industry was $57.9 billion in 2022 and is expected to grow to $102.4 billion by 2027.
In 2023, e-sports will debut as an official competition event at the Hangzhou Asian Games, with a total of 7 events. The Chinese team also performed well in the esports event, finishing with 4 gold and 1 bronze.
On July 23 this year, the International Olympic Committee officially passed a proposal at its 142nd session in Paris, France, to host the first Olympic Esports Games in Saudi Arabia in 2025.
The International Olympic Committee has stated that it will prioritize cooperation with international sports organizations that have already conducted esports competitions. In addition, it will establish a new specialized agency that is clearly separated from the traditional Olympic Games preparation and financial model.
The International Olympic Committee has been researching esports for many years, attempting to establish connections with the younger generation of potential Olympic fans and setting up a dedicated committee to seek opportunities. As early as 2021, the Olympic Virtual Series was developed and considered a pilot project for esports. Based on the successful experience of the Olympic Virtual Series, the International Olympic Committee held the first Olympic Esports Week in June 2023. This is the first offline event under the International Olympic Committee named "Esports". In September 2023, the International Olympic Committee announced the establishment of the Esports Commission.
In addition to the Esports Asian Games, the 2024 Esports World Cup officially opened in Riyadh, the capital of Saudi Arabia, on July 3rd local time. This year's Esports World Cup will run from July 3rd to August 25th, featuring 22 matches across 21 esports events. 1500 athletes from 425 clubs will compete for the honor of the first Esports World Cup championship. In addition to professional competitions, this year's Esports World Cup is also the largest esports festival in history, where visitors can participate in game exhibitions, mass competitions, concerts, and other activities.
In addition, before the entry of esports into the Olympics, the entry of esports into Asia had already attracted high attention. At last year's Hangzhou Asian Games, esports made its debut as an official competition event on the Asian Games stage. There are a total of 7 esports projects, including "League of Legends", "Honor of Kings Asian Games Version", "Peace Elite Asian Games Version", "DOTA2", "Dream Three Kingdoms 2", "Street Fighter 5", and "FIFA Online 4". The Chinese national training team won 4 gold and 1 bronze medals in esports competitions.
Just yesterday, the 2024 Global Esports Conference opened in Shanghai, where the "Report on China's Esports Industry from January to June 2024" was released. After experiencing two consecutive years of negative growth, the Chinese esports market also reached a turning point in the first half of this year, with revenue returning to the growth track year-on-year. Several executives of listed companies believe that esports has become a universal language for young people worldwide, and China's esports going global has become an important channel for promoting industry development.
According to the "Report on China's Gaming Industry from January to June 2024", the actual sales revenue of China's e-sports industry from January to June this year was 12.027 billion yuan, a year-on-year increase of 4.43%. Among them, live streaming of esports games is the main source of income, accounting for 79.45%; In addition, tournament, club, and other revenues accounted for 8.86%, 7.35%, and 4.35%, respectively.
Zhang Yijun stated that the actual sales revenue growth of electronic sports games is mainly due to the stable and rising revenue of top electronic sports games. The launch of multiple new electronic sports game products this year may bring new revenue growth.
Xiao Hong, Chairman of Perfect World Holdings Group, stated that the entry of esports into the Olympics has brought opportunities for the global development of the esports industry, and esports has become a common language among young people worldwide. As a cultural enterprise, Perfect World will work together with all parties to actively promote the globalization, sportsmanship, and socialization of China's esports industry, accelerate international cooperation, and help China's esports move towards a comprehensive and high-level development path of "internal repair and external integration".
