Source: Beast Finance Author: Beast Finance
Monster Finance learned that NeoTV (NeoTV Group), an e-sports operator from Shanghai, hereinafter referred to as NeoTV, has recently submitted a prospectus to the US Securities and Exchange Commission (SEC) to apply for IPO listing on Nasdaq. The stock code is (NTV) NeoTV plans to raise $43 million by offering 6.8 million common shares at $6.25 each through the Nasdaq IPO.
Business
According to the NeoTV prospectus, Wangying Culture was founded in 2006 and is headquartered in Shanghai. It conducts all major business operations in China through VIE (variable interest entity), provides e-sports customers with event operation, participation and content production, and is specially held in China. , Operate and promote e-sports competitions and professional events. Similar to most e-sports event operating companies, the main source of income of Wangying Culture is the service of e-sports events, accounting for more than 90% of the total revenue.
Compared with the online video culture, its brand NeoTV is more well-known in the industry. NeoTV has many years of experience in operating and broadcasting large-scale international e-sports events, a professional program production team, rich professional commentary hosts and player resources, an independent media website and mobile terminal platform, and promotion channels all over the country. NeoTV is committed to creating a comprehensive platform for high-quality international e-sports games.
NeoTV provides a one-stop solution for e-sports customers, focusing on hosting, operating and promoting e-sports competitions and professional events worldwide, and as a fan anytime, anywhere with e-sports teams, athletes, influencers, broadcasters, brands and Portal for Sponsor Contact.
NeoTV's management is led by Chairman and Chief Executive Officer Yuxin Lin, who has been with the company since 2007 and prior to that, obtained a Bachelor of Arts in Interior Design from the School of Fashion Design and Merchandising.
As of June 30, 2022, NeoTV has received US$11 million in investment from investors including ZYD Holding Limited.
Industry Overview
According to the market research report of iResearch in 2022, the scale of China's e-sports market in 2021 is 23.6 billion US dollars, and it is expected to reach 30.8 billion US dollars by 2024.
This represents a forecast CAGR of approximately 9% for the industry from 2021 to 2024.
The main drivers of this expected growth are the increased use, availability and broadband connectivity of smartphones.
Here's what's going on with the key players in China's esports industry
NeoTV's main competitors in this industry are:
(1) Hero Sports
(2) ImbaTV
(3) FUNSPARK
(4) EM ELECTRONIC SPORTSEM
(5) GaoJing Culture (6)
LiChang E-sports (
7) XianZhi E-sports
(8) ) PGL
(9) DSPORT
(10) Huya (HUYA)
(11) Douyu (DOYU)
(12) Roblox (RBLX)
financial situation
According to the prospectus, the financial performance of NeoTV is as follows:
(1) Declining revenue
(2) Significant decline in gross profit and gross margin
(3) Increased operating loss
(4) Decreased cash used in operations
Total revenue: As of June 30, 2022, NeoTV's total revenue in 2020, 2021, and 2022 are: US$24.51 million, US$33.71 million, and US$7.22 million, respectively.
Gross profit (loss): As of June 30, 2022, NeoTV's gross profit in 2020, 2021, and 2022 are: US$6.22 million, US$7.61 million, and US$830,000, respectively.
Gross profit margin: As of June 30, 2022, NeoTV's gross profit margins in 2020, 2021, and 2022 are: 25.39%, 22.59%, and 11.51%, respectively.
Operating profit (loss): As of June 30, 2022, NeoTV's operating profit in 2020, 2021, and 2022 are: US$1.77 million, US$1.72 million, and US$930,000, respectively.
Comprehensive income (loss): As of June 30, 2022, NeoTV's comprehensive income in 2020, 2021, and 2022 are: US$2.16 million, US$2.68 million, and US$430,000, respectively.
Operating cash flow: As of June 30, 2022, NeoTV's operating cash flow in 2020, 2021, and 2022 are: US$2.42 million, US$500,000, and US$20,000, respectively.
As of June 30, 2022, NeoTV had $2.1 million in cash and $9.9 million in total liabilities.
NeoTV has negative free cash flow ($2.9 million) for the 12 months ending June 30, 2022.
Agency
Prime Number Capital, the sole underwriter for NeoTV's Nasdaq IPO, has led IPOs over the past 12 months with an average negative return (63.0%) since IPO. It was the underwriter's lowest performance during the period.
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