The DDMC Group announced yesterday (August 7) that Xin’ai Sports, the newly founded company of DDMC subsidiary Super Sports and iQIYI to run iQIYI Sports, had received CNY500m funding from IDG and Chinese investment company Huiyingborun. The set up of Xin’ai Sports was recently announced the day before on August 6.
IDG’s investment was made through two of its subsidiaries, Hexieanlang and Zhixingbingjin. The two investment companies acquired a 10% and 3.33% stake in Xin’ai Sports respectively. They invested CNY300m and CNY100m respectively, out of which CNY288m and CNY96m were additional paid-in capital. Huiyingborun, a company that is reported to be an affiliated company of DDMC Group, acquired a 3.33% stake in Xin’ai Sports for CNY100m of which CNY96m was additional paid-in capital.
After receiving these fundings, the new structure of the stakeholders in Xin’ai Sports will look like this:
Super Sports (CNY42.5m, 35.42%), iQIYI (CNY38.25m, 31.88%), Beijing Super Sports Huizhi Media Technology (CNY15m, 12.5%), Zhuhai Hexieanlang (CNY12m, 10%), Yu Lingxiao (CNY4.25m, 3.54%), Zhuhai Zhixingbingjin (CNY4m, 3.33%), Huiyingborun (CNY4m, 3.33%). The total capital is CNY120m.
Currently, the company value of Xin’ai Sports is said to be CNY3bn.
Super Sports and DDMC Group are reported to have a bigger control of the company. Super Sports can appoint three members to the board of directors, iQIYI two, IDG one. The Chairman of the board will be selected from the three members appointed by Super Sports and the Vice Chairman from the two members appointed by iQIYI.
Insiders say the A round financing of Xin’ai Sports has not yet been finalized.
Reference: DDMC Group website
Proofread by Raymond Fitzpatrick