YuuZoo Forms E-Sport Joint Venture in China

Singapore, June 4th , 2015

Key Highlights:

• JV partner XG AMA has existing relationships with over 3,000 online gaming bars in China.
• Online gaming in China has a penetration rate of 59.5% among total internet users and 33% of mobile users.
• In-game purchasing is a lucrative source of revenue, with 66% of gamers in China spending money on gaming each month.

Singapore-listed YuuZoo Corporation (“YuuZoo” SGX: AFC.SI) one of the world’s fastest growing third generation mobile social e-commerce companies, today announced it has formed a new joint venture company in China with XG AMA, a leading provider and organizer of e-sport events and related gaming activities through internet gaming bars and cafes in China. Under terms of the agreement XG AMA is committed to deliver a minimum of 5 million active paying users and a minimum profit of 1,5 million RMB in the first 12 months of operations.

The new joint venture company, “YuuGames” will sit within YuuZoo’s virtual shopping mall, fully localized and mobile-optimized for China. It will be managed by Hu Zhi Xiang, the founder of XG AMA and one of the best-known pioneers and entrepreneurs in the internet gaming bar business in China.

YuuGames will target the over 146,000 internet gaming bars in China which serve some 120 million game players. XG AMA already has existing agreements with over 3,000 net bars in place. Most of these bars have thousands of individual members.

YuuGames will leverage these partner bars for an (O2O) business model, wherein the visitors of the partner bars will become members of the YuuZoo social e-commerce network, effectively converting offline customers into online members of YuuZoo. YuuGames is developing a mobile app, which allows interaction be-tween the bars and its users, helping the users find the location of the bar’s and enable the user to reserve seats and arrange matches between e-sport teams. The app will also enable shopping, mobile games broad-cast, game events and video screening, lottery games and voting on mobile for games and events.

At the end of 2013 the online gaming market was worth $13.5 billion (82.1 billion RMB). This is expected to grow to 131 billion RMB by the end of 2015, with mobile gaming accounting for 33.8 billion of the total revenue. Experts predict that the rapidly growing number of smartphone users in the country will mean that mobile will continue to increase its share of the Chinese online gaming market. By 2018, it is expected that the gap in revenue share between online gaming and other gaming will close, with online gaming accounting for nearly half of all gaming spend in the country. It is estimated that in 2015 there will be 266 million Chinese online gamers, spending at least 2 hours per month gaming.

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