Core Insights - NIP Group has launched a new joint venture, NIP Culture & Entertainment, to expand its live entertainment business in China, moving beyond its core esports operations [1][4] - The inaugural event, the 2025 Qianfan Music Season - Wonderland Music Festival, attracted over 70,000 fans, marking it as one of the largest outdoor music festivals in Beijing [2][4] - The venture aims to create immersive experiences that combine music, gaming, and cultural content, targeting the younger demographic that is increasingly investing in live experiences [3][4] Company Strategy - The formation of NIP Culture & Entertainment aligns with NIP Group's strategy to leverage its esports following to create cross-promotional opportunities in live entertainment [4] - The company plans to host a series of large-scale music festivals in key cities throughout China in 2025, aiming to deepen audience engagement and diversify revenue streams [4] - NIP Group's focus on integrating music and gaming experiences is expected to unlock proprietary intellectual property and sustainable value for stakeholders [3][4] Market Context - According to the China Association of Performing Arts, China's live entertainment market reached RMB 79.6 billion (approximately US$ 11.0 billion) in 2024, with nearly 75% of festival attendees being under 30 years old [3] - The demographic overlap between music fans and the existing gaming audience positions NIP Group favorably to capitalize on this growing market [4]

Company Overview - NIP Group Inc. is a leading global digital entertainment company focused on the evolution of gaming and esports, with a diversified ecosystem that includes esports teams, arenas, events, content and influencer networks, game publishing, and hospitality [4] Conference Participation - NIP Group's Co-CEO, Hicham Chahine, has been invited to speak at the "2025 Virtual Tech Conference: Discover the Innovations Reshaping Tomorrow," hosted by Maxim Group LLC on June 3, 2025 [1] - The conference will focus on how emerging growth companies are leveraging Quantum Computing and Artificial Intelligence (AI) to enhance their future positioning [2] Industry Engagement - The conference will feature dialogues with CEOs and key executives from various technology-focused businesses, emphasizing the impact of technology on company growth [2]

5月31日至6月1日，由星竞文娱主办、红鲤文化承办的千帆音乐季·奇遇海音乐节在北京市昌平区拉斐特城堡举办。这场融合了音乐、电竞、美食与文旅的 盛宴，邀请了19组音乐人、2支电竞战队加盟，吸引近7万乐迷前来打卡。 星竞文娱是星竞威武集团从数字体育向演出和娱乐领域横向发展的一次全新尝试。对此，星竞威武集团董事长兼CEO何猷君表示："星竞威武集团的建 立，植根于年轻人对于电竞的热爱和追求。电竞与音乐具有相同的精神内核。我们希望将这种对年轻人的理解和经验转化成生产力，打破传统娱乐形式的 边界，为年轻人创造一个全新的、更具活力和吸引力的舞台。我们相信，星竞文娱将为音乐和演出行业解锁更多可能性。" 年轻消费者，为何愿意不远千里奔赴音乐节，星竞文娱又如何将他们持续留在"奇遇海"？星竞文娱执行董事、CEO高原指出，年轻消费者正展示出"为情 绪和体验买单"的鲜明特质："年轻人对于娱乐的追求是多元的、个性化的。我们希望星竞文娱可以成为年轻人连接彼此和自我表达的一片自留地。我们一 起欢呼、生长，一起拥抱热爱、音乐、游戏和多样性。" 在汇聚众多顶流音乐人的同时，奇遇海音乐节延伸串联文旅项目、文创集市等文化消费场景，为观众们提供更多元 ...

Group 1 - The core viewpoint emphasizes the importance of focusing on business model construction in the esports industry, similar to traditional sports like the NBA [2] - The current industry adjustment period is seen as an opportunity for reflection and expansion of business models, leading to the creation of a comprehensive ecosystem covering various verticals in esports and gaming [2] - The decision to go public during an industry downturn was driven by the need to attract international capital and solidify the company's leading position in the global market while maintaining rapid business growth [2] Group 2 - Many commercially valuable games are not necessarily esports projects, but esports is recognized as a form of sports due to its alignment with the competitive spirit of traditional sports [3] - The gaming sector is showing positive development, exemplified by the global attention garnered by the game "Black Myth: Wukong," which successfully conveys Chinese culture [3] - The focus on AI's impact is on its application in the gaming sector rather than esports, with an emphasis on efficiency improvements in training and performance optimization for players [3]

Core Insights - The company experienced a 1.8% year-over-year increase in total net revenue for 2H24, reaching US$45.9 million, primarily driven by a 92.6% increase in event production revenue [1] - The net loss for the period widened to US$8.0 million from US$2.0 million in 2H23, while adjusted EBITDA declined to negative US$7.3 million from positive US$1.0 million in the prior year [1] - The growth in event production was supported by a higher volume of events, although the gross profit margin for this segment fell to 9.9% due to lower average margins from new large-scale music events and upfront investments in staffing and marketing [1] - For the full year 2024, total revenue reached US$85.3 million, a 1.9% increase from US$83.7 million in 2023, but below the forecast of US$92 million, primarily due to a reduction in sponsorship and advertising revenue [1] - The revenue mix shifted from IP licensing of PC and console games to mobile game league revenue sharing, leading to a downward revision of the 2025 revenue forecast from US$108 million to US$90 million [1]

ABU DHABI, United Arab Emirates, May 12, 2025 (GLOBE NEWSWIRE) -- NIP Group Inc. (“NIPG” or the “Company”) (NASDAQ: NIPG), a leading digital entertainment company, today announced that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 with the Securities and Exchange Commission (the "SEC") on May 12, 2025. The annual report, which contains the Company’s audited consolidated financial statements, can be accessed on the Company's investor relations website at ir.nipgroup. ...

Corporate Structure and Operations - The company operates primarily through wholly-owned subsidiaries in Sweden and China, with a significant portion of its business conducted via variable interest entities (VIEs) in China[29]. - As of June 2023, the company completed a restructuring that resulted in the Former VIE becoming a wholly-owned subsidiary, enhancing control over its operations[30]. - The company faces unique risks associated with its holding company structure, including potential regulatory changes in China that could impact its ability to consolidate financial results from VIEs[33]. - The company has not received any formal inquiries or sanctions from PRC authorities regarding necessary permissions for its operations as of the report date[44]. - The company is subject to the Holding Foreign Companies Accountable Act, which could restrict trading of its shares if audit reports are not issued by PCAOB-inspected firms for two consecutive years[41]. - The company has maintained a business license for its PRC subsidiaries and VIEs, ensuring compliance with local regulations[44]. - The company is exposed to various legal and operational risks due to the evolving regulatory landscape in China, which could adversely affect its business operations and financial condition[36]. - The company relies on contractual arrangements with variable interest entities (VIEs) in China, which may not provide the same level of control as direct ownership, posing risks to operational effectiveness[191]. - Any failure by the VIEs or their shareholders to fulfill contractual obligations could lead to significant costs and resource expenditure for the company[192]. - The company is susceptible to regulatory changes in China that could impact its corporate structure and operations, potentially leading to severe penalties or loss of interests in VIEs[186]. Financial Performance - As of December 31, 2024, NIP Group Inc. reported total assets of US$312.57 million, with cash and cash equivalents amounting to US$9.56 million[56]. - For the year ended December 31, 2024, consolidated net revenue was US$85.27 million, while the cost of revenue was US$82.26 million, resulting in a net loss of US$12.69 million[59]. - Cumulative capital investment transferred to the WFOE by NIP Group Inc. was US$34.6 million, with an additional US$11.3 million transferred to Wuhan ESVF through intra-group loans[50]. - The total liabilities of NIP Group Inc. and its subsidiaries as of December 31, 2024, were reported at US$70.14 million[56]. - The consolidated total equity as of December 31, 2024, was US$239.47 million, reflecting a significant capital structure[56]. - For the year ended December 31, 2022, the company reported net revenue of $65,835,000 and a net loss of $6,306,000[61]. - For the year ended December 31, 2023, net cash used in operating activities was $(5,154,000), while net cash provided by financing activities was $1,364,000[63]. - For the year ended December 31, 2024, net cash used in operating activities totaled $(16,543,000), with net cash provided by financing activities amounting to $23,458,000[62]. - The company has incurred losses in the past and may continue to experience losses in the future, which could materially affect its financial condition[68]. - The company incurred operational losses of $8.1 million, $14.7 million, and $16.9 million, and net losses of $6.3 million, $13.3 million, and $12.7 million in 2022, 2023, and 2024 respectively[96]. Market and Competitive Landscape - The company operates in a highly competitive market, and failure to compete effectively may adversely affect its business and operating results[68]. - The company’s business in Asia is in the early stage of development, with a limited operating history since starting in 2016[83]. - The company faces significant competition in the esports industry, which may impact its ability to retain fans, viewership, and sponsorship resources[91]. - The esports sponsorship and advertising market's growth is critical; failure to capture a sufficient market share could materially affect financial results[84]. - The esports industry is rapidly evolving, and failure to adapt to changing game popularity and consumer preferences could adversely affect business prospects[105]. - The company operates in the esports and entertainment industry, facing intense competition from established entertainment forms like television and sports events, which could adversely affect demand for its content and live events[107]. Regulatory and Compliance Risks - The company is subject to restrictions on foreign exchange and cross-border cash transfers, impacting its ability to distribute earnings to shareholders[51]. - The PRC government's restrictions on online gaming for minors may lead to a decrease in the viewer base and negatively impact business operations[145]. - The implementation of anti-addiction regulations may reduce the popularity of the gaming and esports industry among minors, affecting future prospects[148]. - The tightening regulatory environment for virtual gifting in the live streaming industry may adversely impact the talent incubation and management business, potentially affecting revenues from community engagement[149]. - The company must comply with the new Trial Administrative Measures for overseas securities offerings, which could impose additional regulatory burdens[209][211]. - Any failure to comply with the CSRC filing requirements for future offerings may lead to sanctions that could adversely impact the company's operations and financial condition[211]. - The PRC legal system's uncertainties may impede the enforcement of contracts and adversely affect business operations[217]. - The company has obtained necessary commercial performance permits for operating in the esports-related service industry, but cannot guarantee all required licenses are maintained[220]. Talent and Human Resources - The ability to attract and retain qualified esports talents is critical, with significant competition for professional athletes and online entertainers[156]. - The company may need to offer higher compensation and better benefits to retain talents, which could increase costs and adversely affect margins[158]. - The loss of senior management or key personnel could disrupt operations and negatively impact future growth[160]. Internal Controls and Reporting - The company has identified a material weakness in its internal control over financial reporting as of December 31, 2024, which may affect the accuracy of financial results[171]. - The company has adopted share incentive plans, with a maximum of 4,360,799 shares under the 2021 Plan and 11,956,812 shares under the 2024 Plan, potentially increasing share-based compensation expenses[163][164]. - The company identified a material weakness related to insufficient accounting and financial reporting personnel knowledgeable in U.S. GAAP, leading to significant management adjustments in consolidated financial statements[172]. - The company has taken measures to remedy the identified material weakness, but cannot guarantee full remediation, which could result in inaccuracies in financial statements and hinder compliance with reporting requirements[174]. - The company is subject to the Sarbanes-Oxley Act of 2002, requiring management to report on the effectiveness of internal controls over financial reporting in its annual report[175]. Economic and External Factors - The COVID-19 pandemic has had a material adverse impact on the company's business, financial condition, and results of operations, with ongoing uncertainties affecting operations and consumer spending[179]. - The company faces risks related to economic conditions, including high unemployment and reduced consumer confidence, which could negatively affect discretionary spending on esports and related merchandise[184]. - Fluctuations in exchange rates, particularly with the Renminbi, Euro, and Swedish Krona against the U.S. dollar, could materially affect revenues and financial condition[185]. - Changes in China's economic, political, or social conditions could materially affect the company's financial condition and results of operations[205].

Financial Data and Key Metrics Changes - Total net revenues increased by 1.8% year over year to $45.9 million in the second half of 2024, driven by a 92.6% year over year increase in events production revenue [7][30] - Full year total revenue reached $85.3 million, an increase of 1.9% over 2023, with event production revenue surging 147.5% to $23.3 million [31][32] - GAAP net loss widened to $8 million in the second half compared to a net loss of $2 million in the prior year period, while full year net loss narrowed slightly to $12.7 million from $13.3 million [31][32] Business Line Data and Key Metrics Changes - Events production revenue nearly doubled year over year to $14.6 million in the second half, contributing significantly to overall revenue growth [30][31] - Esports team operations revenue declined by 49.7% year over year to $5.9 million, reflecting softer advisor spending and sponsorships [30] - Talent management services revenue was broadly stable at $25.4 million, down 1.3% year over year [30] Market Data and Key Metrics Changes - The Western esports operations showed early signs of recovery, while performance in China was slightly softer [10][11] - The company is seeing increasing momentum across its commercial pipeline, particularly in the West with new sponsorships [12] Company Strategy and Development Direction - The company is transitioning from a pure esports organization to a comprehensive gaming-centric digital entertainment company, focusing on building an integrated ecosystem [6][10] - The consolidation of global headquarters in Abu Dhabi aims to streamline operations and enhance resource alignment [7][19] - The company is exploring broader opportunities, including leveraging AI and pursuing targeted M&A to accelerate growth [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2024 but expressed confidence in the company's adaptability and strategic direction [5][9] - The company expects to benefit from new funding support and initiatives from the Abu Dhabi Investment Office and other partners in 2025 [9][20] - Management highlighted the importance of the Esports World Cup partnership, which is expected to unlock additional revenue growth opportunities [52] Other Important Information - The company is preparing to open its first S-tier integrated gaming entertainment complex in Chengdu by the end of the third quarter [17][18] - A significant partnership with the Guangxi government is expected to provide up to RMB50 million in strategic support for developing a digital sports industry park [15][16] Q&A Session Summary Question: What were the primary drivers of the 93% year over year growth in event production revenue in the second half? - The growth was primarily driven by hosting a higher number of events and securing finals of significant titles from Tencent, solidifying the company's status in the events production space [36][37] Question: Can you elaborate on your music festival pipeline and its expected growth in 2025? - The company expects to host another 10 music festivals in 2025, with a focus on self-funding to improve margins [40][41] Question: Can you provide insights on the health of esports team revenue in 2025? - The revenue dip in 2024 was a deliberate decision to restructure teams, but early signs in 2025 indicate a return to tier one events, which will positively impact revenue [46][50] Question: What are the benefits of joining the Esports World Cup Foundation Hub Partner Program? - Benefits include access to a $70 million revenue pool, increased global exposure, and the ability to consolidate teams for better monetization [54][55] Question: What is the execution timeline for the Abu Dhabi HQ build-out and its P&L impact? - The execution is well underway, with $40 million in financial incentives over four years, significantly lowering operational costs [60][61] Question: What KPIs will be monitored for the Chengdu S-tier complex, and how replicable is this model? - KPIs will include occupancy rates, and the model is expected to be highly replicable in other cities due to strong partnerships [63][64]

Financial Data and Key Metrics Changes - Total net revenues increased by 1.8% year over year to $45.9 million in the second half of 2024, driven by a 92.6% year over year increase in events production revenue [7][8] - Full year total revenue reached $85.3 million, an increase of 1.9% over 2023, with event production revenue surging 147.5% to $23.3 million [33] - GAAP net loss widened to $8 million in the second half compared to a net loss of $2 million in the prior year period, while full year net loss narrowed slightly to $12.7 million from $13.3 million [32][34] Business Line Data and Key Metrics Changes - Events production revenue almost doubled year over year to $14.6 million in the second half, contributing significantly to overall revenue growth [32] - Esports team operations revenue declined by 49.7% year over year to $5.9 million, reflecting softer spending and sponsorships [32] - Talent management services revenue was stable at $25.4 million, down 1.3% year over year, as the company transitions to higher performance platforms [32] Market Data and Key Metrics Changes - The Western esports operations are showing early signs of recovery, while performance in China was slightly softer [11][12] - The company is experiencing a challenging global economic environment, impacting esports sponsorship and talent-driven revenues [9] Company Strategy and Development Direction - The company is transforming from a pure esports organization to a comprehensive gaming-centric digital entertainment company, focusing on building an integrated ecosystem [6] - Strategic consolidation of global headquarters in Abu Dhabi aims to streamline business lines and enhance operational efficiency [7][21] - The company is exploring broader opportunities, including leveraging AI and pursuing targeted M&A to accelerate growth [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced in 2024 but expresses confidence in the long-term resilience of the esports segment and the diversified business model [11][31] - The company expects to benefit from new funding support and initiatives from the Abu Dhabi Investment Office and other partners, which will improve cash position and operational flexibility [10][22] - Management anticipates that the structural foundation laid in 2024 will translate into improved profitability as revenue engines scale [10] Other Important Information - The company is set to open its first S-tier integrated gaming entertainment complex in Chengdu by the end of the third quarter, which will serve as a physical anchor for experiential engagement [19][20] - A partnership with the Esports World Cup Foundation provides access to a $70 million commercial framework, enhancing brand equity and revenue streams [12][58] Q&A Session Summary Question: What were the primary drivers of the 93% year over year growth in event production revenue in the second half? - The growth was primarily driven by hosting a higher number of events and securing finals of significant titles, solidifying the company's status as a top events production company in China [39] Question: Is the lower margin profile of the event production segment a structural characteristic? - The margin dip was deliberate due to front-loaded staffing and marketing fees to secure tier one festivals, but improvements are expected as infrastructure investments are completed [40][41] Question: Can you elaborate on the music festival pipeline and its growth in 2025? - The company expects to host another 10 music festivals in 2025, with a focus on self-funding to improve margins [44][45] Question: Can you provide insights on esports team revenue health in 2025? - The revenue dip in 2024 was a deliberate restructuring decision, and early signs in 2025 indicate a return to tier one events, which will lead to revenue recovery [52][55] Question: What are the benefits of joining the Esports World Cup Foundation Hub Partner Program? - Benefits include access to a $70 million revenue pool, increased global exposure, and the ability to aggregate fan bases for better monetization [58][60] Question: What is the execution timeline for the Abu Dhabi HQ build-out? - The execution is well underway, with $40 million in financial incentives over four years, and the company is on track to meet KPIs [65] Question: What KPIs will be monitored for the Chengdu S-tier complex? - Key performance indicators will include occupancy rates, with expectations for the payback period to outperform traditional hotel models [67][70]

Financial Data and Key Metrics Changes - Total net revenues increased by 1.8% year over year to $45.9 million in the second half of 2024, driven by a 92.6% year over year increase in events production revenue [6][30] - Full year total revenue reached $85.3 million, an increase of 1.9% over 2023, with event production revenue surging 147.5% to $23.3 million [31] - GAAP net loss widened to $8 million in the second half compared to a net loss of $2 million in the prior year period, while full year net loss narrowed slightly to $12.7 million from $13.3 million [31][32] Business Line Data and Key Metrics Changes - Events production revenue almost doubled year over year to $14.6 million in the second half, contributing significantly to overall revenue growth [30][14] - Esports team operations revenue declined by 49.7% year over year to $5.9 million, reflecting softer spending and sponsorships [30] - Talent management services revenue was broadly stable at $25.4 million, down 1.3% year over year [30] Market Data and Key Metrics Changes - The Western esports operations showed early signs of recovery, while performance in China was slightly softer [10][11] - The company is seeing increasing momentum across its commercial pipeline, particularly in the West with new sponsorships [12] Company Strategy and Development Direction - The company is transitioning from a pure esports organization to a comprehensive gaming-centric digital entertainment company, focusing on building an integrated ecosystem [5][6] - Strategic initiatives include the consolidation of global headquarters in Abu Dhabi, which aims to streamline operations and enhance efficiency [9][19] - The company is exploring broader opportunities such as leveraging AI and pursuing targeted M&A to accelerate growth [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2024 but expressed confidence in the company's adaptability and long-term growth potential [4][5] - The company expects to benefit from new funding support and initiatives from the Abu Dhabi Investment Office and other partners in 2025 [9][33] - Management highlighted the importance of the Esports World Cup partnership, which is expected to unlock additional revenue growth opportunities [54] Other Important Information - The company is preparing to open its first S-tier integrated gaming entertainment complex in Chengdu by the end of the third quarter [17][18] - A significant partnership with the Guangxi government aims to co-develop a digital sports industry park, enhancing the company's growth ambitions in China [15][16] Q&A Session Summary Question: What were the primary drivers of the 93% year over year growth in event production revenue in the second half? - The growth was primarily driven by hosting a higher number of events and securing finals of significant titles from Tencent, solidifying the company's status in the events production space [37][38] Question: Can you elaborate on your music festival pipeline and its growth in 2025? - The company expects to host another 10 music festivals in 2025, with a focus on self-funding to improve margins [42][43] Question: Can you provide insights on esports team revenue and its health in 2025? - The revenue dip in 2024 was a deliberate decision for restructuring, with expectations of recovery in 2025 as teams return to tier one events [50][54] Question: What are the benefits of joining the Esports World Cup Foundation Hub Partner Program? - Benefits include access to a $70 million revenue pool, increased global exposure, and the ability to aggregate fan bases for better monetization [56][58] Question: What is the execution timeline for the Abu Dhabi HQ build-out and its P&L impact? - The execution is well underway, with $40 million in financial incentives over four years, significantly lowering operational costs [64] Question: What KPIs will be monitored for the Chengdu S-tier complex, and how replicable is this model? - KPIs will include occupancy rates, with plans to replicate the model in other cities based on strong partnerships and market interest [66][68]