Sports consumption activates new economic potential, and the growth of crazy sports is accelerating and the value can be expected

On October 8, the Information Office of the State Council held a press conference to introduce the relevant situation of "systematically implementing a package of incremental policies to solidly promote the optimization of the upward structure of the economy and the continuous improvement of the development trend".

Zheng Shajie, director of the National Development and Reform Commission, said at the meeting that in view of the new situation and new problems in the current economic operation, the Party Central Committee and the State Council have made scientific decisions and taken decisive actions.

In the author's view, the sports industry, as an important starting point for stimulating domestic demand and promoting the development of cultural tourism, has ushered in a broader space for development under the promotion of a package of incremental policies. Focusing on the digital sports entertainment market, it is also not difficult to foresee that the leading digital sports entertainment company, Crazy Sports (0082.HK), may still benefit significantly. At this time, there are more reasons to be optimistic about the acceleration of medium- and long-term growth, and the return of value as the market environment improves.

"Sports+" continues to spark economic sparks and is expected to continue to be promoted by policies

In her speech, Zheng Shajie emphasized that the policy of expanding domestic demand should focus more on benefiting people's livelihood and promoting consumption. So, how can consumption be promoted?

Referring to the market performance of the just-concluded National Day holiday, we will find that sports consumption is becoming a new potential to activate the economy.

On the evening of October 6, the 2024 China Open Tennis Championships and the World Table Tennis Professional League China Grand Slam ended in Beijing. According to the data, the total box office of China Network this year hit a record high, reaching 80 million yuan; The box office of the World Table Tennis Federation China Grand Slam was nearly 60 million yuan, and the comprehensive consumption exceeded 50 million yuan. As of October 5, about 140,000 foreign fans and more than 13,000 overseas spectators have attended the game.

The successive opening of the two major events has had an obvious spillover effect on the cultural and tourism consumption of Beijing, where it was held. According to the data of the Beijing Bureau of China Railway, during the "Eleventh" Golden Week, the Beijing Bureau expects the total number of passengers to arrive and depart will be 26.853 million, an increase of 73,000 or 2.8% year-on-year. According to Ctrip data, during the National Day holiday, Beijing's travel orders increased by 7% year-on-year, and ticket orders increased by 11% year-on-year.

It can be seen that through the popularity and traffic of blockbuster events, the event economy can become a new driving force for urban development, thereby stimulating economic vitality. In addition to this, there is another point worth paying attention to. With the deepening of the aging of the population in the mainland, the "silver economy" has become an important driving force for macroeconomic growth in the future.

According to the White Paper on China's Industrial Development Trends in the Next 50 Years, China will have nearly 300 million people over the age of 60 by the end of 2023, and this number is expected to reach 400 million by 2035. Silver-haired families will gradually become the main consumer group in China in the future. Hu Zuquan, director and researcher of the Population Development Research Office of the Economic Forecasting Department of the State Information Center, previously said that it is expected that by 2035, the scale of the mainland's silver economy will reach about 30 trillion yuan, accounting for about 10% of GDP in the same period.

Specifically, the industrial chain of the silver economy is quite extensive, including many subdivisions such as medical care, pension, tourism, and entertainment. As a key part of middle-aged and elderly people to maintain health and anti-aging, sports are also an important part of the silver economy.

Dr. Zhang Lijun, chairman of the board of directors of Crazy Sports, has said that people are eager to learn about the latest medical science and technology achievements and hope to be guided by healthy living. It is understood that during Dr. Zhang Lijun's research fellowship at Stanford University School of Medicine in United States, he was invited to participate in a Health Matters health community event organized by Stanford University School of Medicine, during which a group of world-class medical professors and experts from Stanford University discussed many key topics related to health and elderly care. Dr. Zhang Lijun found in the event that there is a high degree of consensus in both China and foreign countries in terms of preventive treatment, anti-aging and elegant aging.

According to the "Seeking Knowledge, Health, Pleasure, Friends, and Actions - Trends and Potential Opportunities of the Silver Economy" released by Shanghai Securities, it is expected that by 2050, the scale of China's elderly education market will exceed 100 billion yuan. Learning for the elderly includes different types of interest learning, such as health and well-being learning, physical exercise learning, etc.

Overall, the ability of sport to bring a multiplier effect to economic development is becoming more and more prominent. Therefore, it is expected to become an important part of the country's expansion of domestic demand, and then enjoy more policy support.

The sports industry continues to grow, and Crazy Sports is expected to be one of the significant beneficiaries

Extending this logic, the value of crazy sports, which has the ability to host and operate events in the relevant industry chain, uses artificial intelligence technology to empower business, and creates a new scenario of "sports +" diversified and integrated consumption, is worth revaluing.

Specifically, by constantly creating a new format of sports + new scenes, Crazy Sports has gradually increased its attraction to both To C and To B, and can better undertake the increment of the sports market.

In terms of event operation, Crazy Sports has used its unique "Digital + Sports" and "Sports + Entertainment" resources to plan and successfully hold sports IP events of great significance, such as the WBC Professional Boxing Championship. It is understood that the event not only created an unprecedented popularity in China's professional boxing industry, but also significantly drove the development of the local tourism economy and carried forward the traditional culture such as Foshan Kung Fu.

As mentioned above, as the event economy continues to become a new driving force for urban development, Crazy Sports' continuous deepening of event operation capabilities in this field may have the opportunity to attract more event hosting opportunities and continue to promote the company's development.

From another perspective, in the face of the current digital economy era, the company uses big data and artificial intelligence technology to build a more complete AI ecosystem, which is expected to more fully share the dividends of the digital sports market. For example, during the Euro 2024 Euro Cup, the first large-scale model AI assistant "Ruyi" in the vertical field of "sports + lottery" in China, will be launched. The assistant provides users with personalized services, successfully seizes the opportunity in the field of sports knowledge payment, and improves the willingness to pay and consumption level of private domain users.

It is worth noting that in China's 30 trillion silver economic market, there is no absolute dominance of the birth of giants in China, Crazy Sports, as a pioneer in the deep cultivation of "sports +", is expected to expand more business in the future in "sports + health", "sports + pension", "sports + entertainment" and "sports + tourism", so as to eat more dividends of industrial growth.

Dr. Zhang Lijun's theory of "elegant life" emphasizes the importance of eating well, sleeping well, having a clear mind, and being energetic, and points out that antioxidant, anti-glycation, and anti-inflammation are the key means of anti-aging to achieve a high quality of life. And physical exercise, physical fitness is undoubtedly an important way to "age gracefully".

It can be seen that the ability of Crazy Sports in both event operation and sports technology has laid a solid foundation for it to create a new scenario of "sports +" diversified and integrated consumption, which can not only bring a strong impetus to the company's development, but also highly fit the national development trend, and is expected to continue to benefit from the promotion of policies and the rapid development of the industry.

epilogue

With its unique charm and unlimited potential, "Sports+" is leading the new wave of China's consumer market, and constantly creating a new development situation of "sports on the stage, economic singing". Enterprises with business models in line with the general trend of social and economic development, such as Crazy Sports, have also won more attention from the market.

According to the data, as of the close of trading on October 9, the company's share price rose by more than 30% that month. Subsequently, based on the company's own solid fundamentals and continuous extension of diversified growth points, its future performance in the capital market is also worthy of more investors' attention.