Crazy Sports Group Limited

(Incorporated in Bermuda with limited liability)

(Stock Code: 82)

Number of Platform Users Up 38% Supporting Steady Business Growth

Expanded Capabilities in Paid Sports Information Driving Segment Revenue Up 19% YoY

Upgraded Sports Games to Extend Life Cycle While Assembling Strategic Sports Game IPs

(Hong Kong, 25 August 2023) – Crazy Sports Group Limited (“Crazy Sports”, together with its subsidiaries collectively known as the “Group”, stock code: 82) is pleased to announce its unaudited condensed consolidated interim results for the six months ended 30 June 2023 (the “Period”).

In the first half of 2023, the Group was able to capitalize on the market boom in the post-pandemic and post-World-Cup window, while strengthening its technological R&D in fields such as web 3.0, blockchain and AIGC. The expanding capability in turn, has allowed the Group to raise product innovation and improve service quality, further consolidating the Group’s leading position in the digital sports industry. The Group was committed to maintain product competitiveness and user retention. As of the end of June 2023, the total number of platform users grew by 37.3% year on-year (“YoY”) to 79.5 million. The average monthly active users in the platform also reached 3.2 million during the Period, representing an increase of 18.8% YoY. The Group’s revenue only dropped by 4.7% to HK$272.9 million YoY. Each major business segment has implemented key strategic deployments to prepare for the Group’s long-term development.

Performance Highlights and Outlook

Enhance Technical R&D, Improve User Experience: The Group is committed to enhancing its R&D to improve product functionality and service quality. Crazy Red Insights APP, through the integration of advanced data analytics and artificial intelligence, aims to strengthen interactive performance and provide users with seamless user experience. In numbers, the monthly retention rate of new users of Crazy Red Insights increased by 37.5%; the retention rate of core users in the first half of the year reached 53.6%, showcasing an extending user lifecycle; yet, the revenue of paid sports information platform in the first half of 2023 increased by 18.6% to HK$114.7 million.

Brand Building and Promotion to Capture Long-tail Benefits of World Cup: During the Period, the Group has seen an increasing youth participation in the sports lottery market resulting from the increased brand building and products promotion to potential users. According to the data released by the Ministry of Finance, total sales of national sports lottery tickets was RMB184.1 billion in the first half of 2023, an increase of 71.7% over the corresponding period of 2022. With the post-pandemic “lipstick effect” and the post-World Cup effect, the sales potential of sports lotteries has been further stimulated and the market sees an influx of new lottery buyers. In order to expand our user base in response to the craze, the Group leveraged its MCN team to conduct live broadcast and short video marketing through short video platforms such as Douyin, Kuaishou and WeChat Channel, to further expand customer acquisition channels for business enhancement. As at the end of June 2023, there were approximately 15.35 million views and 3.61 million live-streaming viewers on the Kuaishou platform, highlighting the power of multi-channel traffic. Nevertheless, the sports lottery retail service implemented refined operation and management, and seized new opportunities in sports lottery. The Group is currently exploring models such as live broadcasting + online celebrity lottery stores, sports lottery franchised stores + new retail, scratch-off lottery kiosks, and welfare lottery, so as to further expand its product offerings. As the development of domestic sports industry and events and the sales channel of lottery tickets will continue to advance and differentiate, the Group’s current investment should prepare well for its long-term development.

Driving the Digitalization of Sports Events and Enhance Sports Community Consumption:

During the Period, Fantasy Sports Events APP has successfully live-streamed various events in full, including the opening match of the IPBU International Professional Boxing Series held in Macau in May. As the exclusive digital entertainment and interactive platform for the event, Fantasy Sports Events attracted over 1 million viewers during the three-hour live broadcasting. In June, the platform also live-streamed the entire 2023 CBSA Chinese Pool International Professional League – International Elite, with fans being able to watch the matches, participate in interactive activities, engage in live chats, and enjoy fun quizzes through the APP. Looking into the second half, the platform is looking to empower more domestic sports events, including the“JiuJiu Cup (九九杯)” Hainan (Wenchang) Township Volleyball League, which will last for almost a month and a half. The Group’s diversified offerings should greatly enhance the enjoyment and entertainment of events, while promoting its digital transformation of sports events.

Comprehensive Upgrade of Gaming Portfolio, Enriching its IP Resources: During the Period, the Group’s sports games such as “Ace Soccer” (球場風雲), “Dream Soccer”

(夢想足球), and “Soccer Manager” (夢幻足球世界) have all delivered upgrades and launch of new versions, leading the development of sports games with longer life cycle. In March 2023, Crazy Sports officially obtained the gaming IP license of LaLiga, we are now a game publisher with three major sports IPs, namely FIFPro, LaLiga and CSL. The comprehensive portfolio is expected to lay a solid foundation for the release of phenomenal sports games in the future. In July 2023, Crazy Sports also officially obtained the global IP license of FIFPro for the next three years, and is expected to launch its international versions in the second half of 2023. Besides, the Group’s games co-publishing business continued to maintain stable growth in the first half of 2023.

Supported by Favorable National Policies, Innovation to Bring New Business Opportunities: In 2023, a number of policies favorable to the sports industry were released one after another. These include the promotion of sports, leisure, culture and tourism consumption in the second half of the year, as suggested by Political Bureau of the CPC Central Committee meeting in July 2023. During the same period the State General Administration of Sports also issued 16 measures to restore and expand sports consumption, include pointing out the need to enrich the supply of sports lotteries. Thus, it is obvious that the development of Crazy Sports is in line with the direction of the national policies. Entering the second half of 2023, Crazy Sports will continue to adhere to the policy guidance, insist on innovation, and coordinate development of multiple businesses so as to build competitiveness in the new reality.

Mr. Peng Xitao, Chief Executive Officer of Crazy Sports Group, said, “Supported by favorable policies and market development, we believe we have now entered a new stage, with a larger market space that we can create better values. In the future, we will remain steadfast in solidifying our leading position in the domestic digital sports entertainment field, and we will strive to make greater contributions to building a strong sports nation and a healthy China. Let Sports Create Happiness!”

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

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