On October 8th, the State Council Information Office held a press conference to introduce the relevant situation of "systematically implementing a package of incremental policies, solidly promoting the improvement of economic structure and the continuous positive development trend".
Zheng Zhajie, Director of the National Development and Reform Commission, stated at the meeting that in response to new situations and issues in the current economic operation, the Party Central Committee and the State Council made scientific and decisive decisions, focusing on increasing countercyclical regulation of macro policies, expanding domestic effective demand, and other aspects, while effectively implementing existing policies, and vigorously introducing a package of incremental policies to promote sustained economic recovery and improvement.
In my opinion, the sports industry, as an important lever to boost domestic demand and promote cultural and tourism development, will have a broader development space under the push of a package of incremental policies. Focusing on the digital sports entertainment market, it is also not difficult to foresee that the leading enterprise in digital sports entertainment - Crazy Sports (0082.HK) may continue to significantly benefit. At this point, there are more reasons to be bullish on its long-term growth acceleration, as the market environment improves and values return.
"Sports+" continues to spark economic growth and is expected to receive sustained policy support.
In his speech, Zheng Zhajie emphasized focusing more on benefiting the people's livelihood and promoting consumption when it comes to promoting consumption through expanding demand and increment policies.
Looking at the market performance during the just-ended National Day holiday, sports consumption is becoming a new potential for stimulating the economy.
On the evening of October 6, 2024, the China Open and the World Table Tennis China Grand Slam concluded in Beijing during the Golden Week holiday. The collision of these two international events with the Golden Week holiday generated considerable economic energy. Data shows that this year's China Open set a new record with a total ticket revenue of 80 million yuan; the China Grand Slam of the World Table Tennis Association had ticket revenue of nearly 60 million yuan, driving comprehensive consumer spending to over 50 million yuan. As of October 5, there were approximately 0.14 million out-of-town tennis fans and over 0.013 million overseas spectators attending the matches.
The successive opening of the two major events significantly impacted the cultural and tourism consumption in their host city, Beijing. Data from the Beijing Railway Bureau of China showed that during the Golden Week holiday period, the estimated total number of passengers arriving and departing via the Beijing Railway Bureau was 26.853 million people, an increase of 0.073 million people year-on-year, a 2.8% increase. Data from Ctrip showed that during the National Day holiday, the order volume for tourism in Beijing increased by 7% year-on-year, and ticket orders increased by 11%.
It can be seen that through the popularity and traffic of blockbuster events, the sports economy can become a new driving force for city development, thereby stimulating economic vitality. In addition, there is another point worth emphasizing. With the continuous deepening of the aging population in our country, the "silver economy" has become an important driving force for future macroeconomic growth.
Sullivan's "White Paper on the Development Trends of China's Industries in the Next 50 Years" released, by the end of 2023, China's population over 60 years old will approach 0.3 billion, and this number is expected to reach 0.4 billion by 2035. Silver-haired families will gradually become the main consumer group in China. Hu Zuquan, director of the Population Development Research Office of the National Information Center Economic Forecast Department, previously stated that China's silver economy is expected to reach around 30 trillion yuan by 2035, accounting for approximately 10% of the GDP at the same period.
Specifically, the industry chain of the silver economy is quite extensive, including medical, retirement, tourism, entertainment, and many other detailed directions. Sports, as a critical factor for middle-aged and elderly people to maintain health and resist aging, is also an important part of the silver economy.
Dr. Zhang Lijun, Chairman of Crazy Sports' Board of Directors, once said that people are eager to learn about the latest achievements in medical technology and hope to receive guidance for a healthy life. It is understood that during his time as a research scholar at Stanford University School of Medicine in USA, Dr. Zhang Lijun was invited to participate in a Health Matters community event organized by the school, where a group of world-class medical professors and experts from Stanford University discussed many key topics related to health and retirement. Dr. Zhang Lijun discovered during the event that there is a high consensus on preventive treatment, anti-aging, and graceful aging both domestically and internationally.
According to the White Paper on the Development Trends and Potential Opportunities of the Silver Economy released by Shanghai Securities, it is estimated that by 2050, the scale of the elderly education market in China will exceed one trillion yuan. Elderly learning includes various types of interest learning such as health and happiness learning, sports exercise learning, etc.
Overall, the ability of sports to bring about multiplier effects for economic development is increasingly prominent. Therefore, it is expected to become an important part of increasing domestic demand at the national level, thereby enjoying more policy support.
The sports industry scale continues to grow, and Crazy Sports is expected to be one of the significant beneficiaries.
Extending this logic for deduction, with the capability to host and operate events in the relevant industry chain, utilizing artificial intelligence technology to empower business, building Crazy Sports that combines "sports+" for a diverse integrated consumer new scene, its value deserves a reassessment.
Specifically, Crazy Sports, by continuously creating a new format of sports+new scenes, has gradually enhanced its attractiveness to both end consumers and businesses, better capturing the incremental growth of the sports market.
In terms of event operation, Crazy Sports, utilizing its unique 'digital+sports' and 'sports+entertainment' resources, has planned and successfully organized significant sports IP events, such as the WBC Professional Boxing World Championship. It is understood that this event has not only set unprecedented popularity in the Chinese professional boxing world, but also significantly boosted local tourism economic development, promoting traditional culture such as Foshan Kung Fu.
As mentioned earlier, following the trend of event economy becoming 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, continuously driving the company's development.
From another perspective, in the current digital economy era, the company utilizing big data and AI technology to build a more complete AI ecosystem, is expected to more fully share the digital sports market dividends. For example, during the 2024 European Cup, the domestic debut of the first 'sports+lottery' vertical domain large-model AI assistant 'Ruyi'. This assistant provides users with personalized services, seizing the first-mover advantage in the field of sports knowledge payment, increasing the willingness to pay and consumption level of private domain users.
It is worth noting that in China's trillion-level silver-haired economy market, there is no absolute dominant giant born domestically. As a pioneer in deepening the 'sports+' field, Crazy Sports is expected to expand more businesses in areas like 'sports+health', 'sports+retirement', 'sports+entertainment', and 'sports+tourism', thereby capturing more dividends of industry growth.
Dr. Zhang Lijun's 'Elegant Life' theory emphasizes the importance of eating well, sleeping well, having a clear mind, and staying energetic, and points out that antioxidation, anti-glycation, and anti-inflammation are key means of anti-aging to achieve a high-quality life. Exercise and physical fitness undoubtedly are important ways to 'gracefully age'.
Thus, Crazy Sports, whether in event operation or in sports technology, has demonstrated its ability to establish a solid foundation for creating a diversified 'sports+' integrated new consumption scene. This not only provides strong impetus for the company's development but also aligns well with the national development trend, likely to continue benefiting from policy support and the rapid development of the industry.
Conclusion
"Crazy Sports+" is leading the new wave in the Chinese consumer market with its unique charm and infinite potential, continuously creating a new situation of "sports setting the stage, economy singing." Companies like Crazy Sports, whose business model conforms to the general trend of economic development in society, have also attracted more attention from the market.
Data shows that as of the close of October 9th, the company's stock price had risen by over 30% in the month. Subsequently, based on the company's solid fundamentals and the continuously emerging diversified growth points, its performance in the capital markets is also worthy of more investors' attention.