Well-known e-sports operator Hero Sports VSPN launched its Hong Kong IPO with Tencent holding 13.54% of its shares

2022-06-21 0 By

On January 31, according to the official website of the Hong Kong Stock Exchange, hero Sports VSPN (hereinafter referred to as Hero VS), a well-known e-sports operator, has submitted A1 form and officially launched its IPO.According to the prospectus (filing) (hereinafter referred to as the prospectus), Hero VS mainly provides comprehensive services such as event organization, event content production and commercial derivative channels for famous competitive games such as King of Glory, Peace Elite and League of Legends. It is an enterprise that distributes the whole e-sports chain business.In the first three quarters of 2021, The total revenue of Hero VS is 1.322 billion yuan.Among them, e-competition business operation, commercialization, community operation contributed 466 million yuan, 451 million yuan, 343 million yuan respectively.Hero VS was founded in 2018. In October 2020, Hero Sports VSPN announced the completion of B round of financing of $100 million, led by Tencent and followed by Tiantu Capital, SIG and Kuaishou.As of the date of disclosure of the prospectus, Tencent’s shareholding ratio is 13.54%, and the actual controller Ying Shuling and his cooperators together hold 35.05% of the voting rights.It is reported that Ying Shuling, who was born in the 1980s, founded Hero Interactive entertainment in 2015. The company is mainly engaged in the development and distribution of mobile esports games and was listed on the New Third Board in the same year.As A star of the New Third Board, Heroes entertainment has made several unsuccessful attempts at a-shares in the past few years.Ying Shuling is currently the chairman and CEO of Heroes VS. His listing goal, which has not been completed in Heroes Interactive entertainment, is expected to be realized through Heroes VS.Since 2016, the group of Hero VS has been cooperating with Tencent. The two sides have close cooperation in esports related business, including events and operation, as well as the commercialization of some of the most popular esports games, such as King of Glory, QQ Speed, Crossfire, etc.And co-managed the Peace Elite Professional League with Tencent from October 2019 to December 2021.A significant portion of the company’s revenue is tied to Tencent, and its business could be adversely affected if its partnership with Tencent changes, the prospectus said.As of the end of September 2021, Heroes VS had run 94 events for 29 esports games in China and overseas, and reached about 5,600 matches, up 67.9 percent and 22.1 percent from 2019 and 2020, respectively, according to the prospectus.In China, Hero VS is 9 of the top 10 most popular esports games (ranked by Baidu index in 2020) providing event organization and operation services, accounting for more than 75% of the market share of esports organization and operation, ranking first in the market share.According to frost Sullivan report, China’s e-sports market will reach 137.2 billion yuan in 2020, accounting for 42.4% of the global e-sports market, and the growth rate will be higher than the global average.It is estimated that the cagR from 2020 to 2026 will be 14.5%, and the market size will reach 309.6 billion YUAN in 2026.In 2021, Hero VS completed its acquisition of Bananagames Media, a company focused on esports under Shanghai Bananagames Cultural Development Co LTD founded by Wang Sicong.As of September 30, 2021, Hero VS recorded a total revenue of 1.322 billion yuan in the first three quarters of 2021, up 144% from the same period in 2020, according to the prospectus.After acquiring the community operation income of the live broadcast platform through the acquisition of Shanghai Houhan, Hero VS has grown from an enterprise with more than 60% of the operating income of the video game to a company with three separate businesses of video game operation, commercialization and community operation.In addition, it further improves the layout of e-sports content production and e-sports related talent incubation.In terms of e-sports alone, the size of China’s e-sports market in 2020 is about 1.4 billion yuan, which is not high in the overall size of China’s e-sports market of 137.2 billion yuan in 2020.From the end of 2019 to the end of the first three quarters of 2021, The number of co-sponsor brands of Heroes VS increased from 17 to 41, with more than 371,000 hours of live streaming of esports, games and pan-entertainment content by its talent and anchors.According to frost Sullivan report, from 2020 to 2023, the global esports industry will maintain a compound annual growth rate of 13.4%, the market size will reach 472.3 billion yuan in 2023, and further grow to 602.1 billion yuan in 2026 with a compound annual growth rate of 8.4%.According to the report, there were 793.9 million esports gamers worldwide in 2020.After decades of development, esports has gradually developed into an important part of contemporary pop culture.In 2020, 488 million people around the world watched esports programs, including 269 million esports fans (who watch esports content at least once a month).It is estimated that there will be 277.6 million esports fans worldwide in 2023.The 2020 LEAGUE of Legends Summer Finals was watched by 65 million viewers, while the NBA Finals that same year were watched by 7.5 million viewers.According to the report, King of Glory Professional League (KPL) is currently the world’s largest mobile esports league in terms of audience size.Since 2017, the company has been the sole event operator of King of Glory Professional League KPL.Disclaimer: This article is reproduced for the purpose of conveying more information.If the source is wrong or violated your legitimate rights and interests, please contact the author with proof of ownership, we will promptly correct, delete, thank you.Email address: newmedia@xxcb.cn