NIP Group Inc. Reports Second Half and Full Year 2024 Unaudited Financial Results
Event Production Net Revenues Up 92.6% YoY to US$14.6M in the Second Half of 2024
Integrated Digital Entertainment Ecosystem Sets the Stage for Revenue Diversification and Growth
ABU DHABI, United Arab Emirates, April 30, 2025 (GLOBE NEWSWIRE) -- NIP Group Inc. ("NIPG" or the "Company") $(NIPG)$, a leading digital entertainment company, today announced its unaudited financial results for the second half and full year of 2024.
Second Half of 2024 Financial and Operational Highlights
-- Total net revenues for the second half of 2024 increased by 1.8%
year-over-year to US$45.9 million, led by a 92.6% year-over-year increase
in net revenues from event production.
-- Gross profit for the second half of 2024 was US$0.6 million, compared
with US$4.9 million in the same period of 2023.
-- Net loss for the second half of 2024 was US$8.0 million, compared with
net loss of US$2.0 million in the same period of 2023.
-- Adjusted EBITDA for the second half of 2024 was negative US$7.3 million,
compared with US$1.0 million in the same period of 2023.
Full Year of 2024 Financial and Operational Highlights
-- Total net revenues for the full year of 2024 increased by 1.9%
year-over-year to US$85.3 million, led by a 147.5% year-over-year
increase in net revenues from event production.
-- Gross profit for the full year of 2024 was US$3.0 million, compared with
US$7.2 million in 2023.
-- Net loss for the full year of 2024 was US$12.7 million, compared with net
loss of US$13.3 million in 2023.
-- Adjusted EBITDA for the full year of 2024 was negative US$9.9 million,
compared with negative US$1.7 million in 2023.
Business Updates
-- Expanded our esports portfolio through a strategic partnership with The9
Limited in November 2024 to transform "MIR M" into a competitive global
esports title.
-- Entered the MOBA game publishing market with the open beta launch of our
first sci--fi title, "Re: Aetatis," in December 2024.
-- Secured a five-year landmark agreement with the Abu Dhabi Investment
Office in January 2025 to establish the Company's consolidated global
headquarters in Abu Dhabi.
-- Formed a strategic collaboration with Optics Valley Traffic Company in
February 2025 to co--develop a cutting--edge digital entertainment hub
beneath Wuhan East Railway Station.
-- Renewed our partnership with Red Bull in March 2025 to drive new content
creation, fan engagement, and operational stability across our Ninjas in
Pyjamas teams.
-- Joined the Esports World Cup Foundation Club Partner Program in March
2025, securing funding and global exposure ahead of EWC 2025.
Mario Ho, Chairman and Co-CEO of NIP Group, commented, "2024 tested the entire industry. Despite this challenging backdrop, we maintained modest top--line growth in the second half and for the full year, highlighting the resilience of our model. As we continue to integrate our businesses and diversify our revenue streams, event production has become a compelling growth engine, with revenues surging 92.6% year-over-year in the second half of the year and more than doubling for the full year. We are transitioning from a pure esports organization into a fully integrated gaming--centric digital entertainment platform. Looking ahead, we plan to expand our three core businesses, while also introducing new games and entering the hospitality market, opening our first S-tier integrated gaming entertainment complex. With our growth initiatives in place, including our expansion in the Middle East with new strategic funding from ADIO, the Guangxi government, and the Esports World Cup Foundation, we are well positioned to drive sustainable growth in 2025 and beyond."
Hicham Chahine, Co-CEO of NIP Group, commented, "Our entry into the Middle East is central to our geographic expansion and revenue diversification strategy, marking a once--in--a--generation opportunity for gaming and esports. We now have global headquarters in Abu Dhabi and a landmark partnership with the Abu Dhabi Investment Office that will accelerate our growth across our gaming ecosystem. Separately, we are receiving valuable support from the Abu Dhabi Department of Culture and Tourism, including payroll subsidies as well as subsidized office and production facilities. By anchoring our strategic initiatives in Abu Dhabi, we are tapping into a vibrant, youthful market that is quickly emerging as the newest global gaming hub. With resources on the ground and our years of experience, we can empower local talent, foster grassroots ecosystems, and continue expanding our integrated platform that now spans esports teams, arenas & events, content & influencer networks, game publishing and hospitality. With our robust base in Abu Dhabi, we are laying the foundation for harnessing growth opportunities on a global stage. I'm confident that this region will drive our next wave of growth and cement NIP Group's position as a global leader in digital entertainment."
Ben Li, CFO of NIP Group, added, "In the second half of 2024, our revenues reached US$45.9 million despite headwinds in esports sponsorships and advertising that impacted both our top line and margins. Our Talent Management arm remained largely stable while our Event Production segment continued to accelerate. We also incurred higher expenses during the period associated with our IPO and our entry into the game publishing space. Moving forward, these initiatives will support our strategic growth with a more diverse revenue mix and more integrated operations, combined with strategic funding partnerships that strengthen our foundation. We remain focused on generating long--term shareholder value."
Second Half of 2024 Financial Results
Total net revenues
Total net revenues were US$45.9 million for the second half of 2024, a year-over-year increase of 1.8% from US$45.1 million in the same period of 2023.
The following table sets forth a breakdown of the Company's net revenues by business segments for the period indicated.
For the Six Months Ended December 31,
-------------------------------------------
2023 2024
--------------------- --------------------
US$ % US$ %
(US$ in thousands, except for %)
Net revenues:
Esports teams operation 11,807 26.2 5,937 12.9
Talent management service 25,714 57.0 25,375 55.3
Event production 7,584 16.8 14,610 31.8
----------- -------- ---------- --------
Total 45,105 100.0 45,922 100.0
-- Esports teams operation. Net revenues from esports teams operation during
the second half of 2024 were US$5.9 million, representing a change of
49.7% from US$11.8 million in the same period of 2023. This change was
primarily due to a decrease in sponsorships and advertising revenue,
primarily related to the promotion budget adjustment of customers.
-- Talent management service. Net revenues from talent management services
were US$25.4 million during the second half of 2024, representing a
change of 1.3% from US$25.7 million in the same period of 2023,
reflecting the transitory impact of the Company's migration from
low-performance to high-performance online entertainment platforms.
-- Event production. Net revenues from event production increased by 92.6%
to US$14.6 million in the second half of 2024, from US$7.6 million in the
same period of 2023. The increase was primarily driven by the Company
hosting a higher number of events in 2024, due to improved integration of
internal and external resources during the period.
Cost of revenues
Cost of revenues for the second half of 2024 was US$45.3 million, compared to US$40.2 million in the same period of 2023.
The following table sets forth a breakdown of the Company's cost of revenues by business segments for the periods indicated.
For the Six Months Ended December 31,
-------------------------------------------
2023 2024
--------------------- --------------------
US$ % US$ %
(US$ in thousands, except for %)
Cost of revenues:
Esports teams operation 7,705 19.2 6,174 13.6
Talent management service 26,051 64.8 25,940 57.3
Event production 6,444 16.0 13,161 29.1
----------- -------- ---------- --------
Total 40,200 100.0 45,275 100.0
-- Esports teams operation. Cost of revenues from esports teams
operation for the second half of 2024 decreased by 19.9% to US$6.2
million, from US$7.7 million in the same period of 2023. The decline was
primarily driven by a decrease in IP licensing fees paid to athletes
under Ninjas in Pyjamas.
-- Talent management service. Cost of revenues from talent management
service for the second half of 2024 decreased by 0.4% to US$25.9 million,
from US$26.1 million in the same period of 2023. The decrease was mainly
due to the decline in livestreaming service fees paid to online
entertainers.
-- Event production. Cost of revenues from event production for the second
half of 2024 increased by 104.2% to US$13.2 million from US$6.4 million
in the same period of 2023. The increase reflects the increase in
revenues recognized from the Company's event production business.
Gross profit
Gross profit for the second half of 2024 was US$0.6 million, compared with US$4.9 million in the same period of 2023. Gross margin for the second half of 2024 was 1.4%, compared with 10.9% in the same period of 2023. The decrease in gross profit margin was mainly attributable to the decline in esports teams operation revenues.
-- Esports teams operation. Gross loss from esports teams was US$0.2 million
in the second half of 2024, compared with gross profit of US$4.1 million
in the same period of 2023. Gross margin decreased to negative 4.0% in
the second half of 2024 from 34.7% in the same period of 2023, primarily
due to decreased revenue from sponsorships and advertising revenue
together with IP licensing revenue.
-- Talent management service. Gross loss from talent management service
changed to US$0.6 million in the second half of 2024 from US$0.3 million
in the same period of 2023. Gross margin was negative 2.2% in the second
half of 2024, compared with negative 1.3% in the same period of 2023,
primarily due to lower revenue coupled with relatively fixed talent
amortization cost.
-- Event production. Gross profit from event production increased to US$1.4
million in the second half of 2024, from US$1.1 million in the same
period of 2023. Gross profit margin declined to 9.9% in the second half
of 2024 from 15.0% in the same period of 2023, mainly due to new
large-scale music events hosted by the Company in the second half of 2024
with lower average margins compared with the same period of the prior
year.
Selling and Marketing Expenses
Selling and marketing expenses for the second half of 2024 were US$5.3 million, representing an increase of 92.7% from US$2.8 million in the same period of 2023. This was mainly attributable to an increase in marketing and promotion expenses for the game publishing business.
General and Administrative Expenses
General and administrative expenses for the second half of 2024 increased by 58.2% to US$7.1 million, from US$4.5 million in the same period of 2023. The increase was primarily due to an increase in professional service fees in relation to the initial public offering.
Other income for the second half of 2024 was US$2.3 million, compared with other loss of US$0.03 million in the same period of 2023. The increase was primarily due to a one-off waiver of tournament league seat fee of US$0.9 million.
Net loss for the second half of 2024 was US$8.0 million, compared with net loss of US$2.0 million in the same period of 2023.
Adjusted EBITDA, which is calculated as net loss excluding interest expense, net, income tax (benefit) expense, depreciation and amortization, share-based compensation expenses and change in fair value of acquisition contingent consideration, was negative US$7.3 million for the second half of 2024, compared with US$1.0 million in the same period of 2023.
Full Year of 2024 Financial Results
Total net revenues
Total net revenues were US$85.3 million for the full year of 2024, a year-over-year increase of 1.9% from US$83.7 million in 2023.
The following table sets forth a breakdown of the Company's net revenues by business segments for the period indicated.
For the Year Ended December 31,
--------------------------------------
2023 2024
------------------- -----------------
US$ % US$ %
(US$ in thousands, except for %)
Net revenues:
Esports teams operation 21,656 25.9 14,716 17.3
Talent management service 52,611 62.9 47,278 55.4
Event production 9,401 11.2 23,272 27.3
--------- -------- -------- -------
Total 83,668 100.0 85,266 100.0
-- Esports teams operation. Net revenues from esports teams operation during
the full year of 2024 were US$14.7 million, representing a change of
32.0% from US$21.7 million in 2023. This change was primarily due to a
decrease in sponsorships and advertising revenue, primarily related to
the promotion budget adjustment of customers. The change also reflects
the transitory impact of the Company's shift from IP licensing revenue
related to PC and Console games to league revenue share from mobile
games.
-- Talent management service. Net revenues from talent management services
were US$47.3 million during the full year of 2024, representing a change
of 10.1% from US$52.6 million in 2023, reflecting the transitory impact
of the Company's migration from low-performance to high-performance
online entertainment platforms.
-- Event production. Net revenues from event production increased by 147.5%
to US$23.3 million in the full year of 2024, from US$9.4 million in 2023.
The increase was primarily driven by the Company hosting a higher number
of events in 2024, due to improved integration of internal and external
resources during the period.
Cost of revenues
Cost of revenues for the full year of 2024 was US$82.3 million, compared to US$76.5 million in 2023.
The following table sets forth a breakdown of the Company's cost of revenues by business segments for the periods indicated.
For the Year Ended December 31,
--------------------------------------
2023 2024
------------------- -----------------
US$ % US$ %
(US$ in thousands, except for %)
Cost of revenues:
Esports teams operation 15,037 19.7 12,193 14.8
Talent management service 53,438 69.8 49,144 59.7
Event production 7,995 10.5 20,919 25.5
--------- -------- -------- -------
Total 76,470 100.0 82,256 100.0
-- Esports teams operation. Cost of revenues from esports teams
operation for the full year of 2024 decreased by 18.9% to US$12.2 million,
from US$15.0 million in 2023. The decline was primarily driven by a
decrease in IP licensing fees paid to athletes under Ninjas in Pyjamas.
-- Talent management service. Cost of revenues from talent management
service for the full year of 2024 decreased by 8.0% to US$49.1 million,
from US$53.4 million in 2023. The decrease was mainly due to the decline
in livestreaming service fees paid to online entertainers.
-- Event production. Cost of revenues from event production for the full
year of 2024 increased by 161.7% to US$20.9 million from US$8.0 million
in 2023. The increase reflects the increase in revenues recognized from
the Company's event production business.
Gross profit
Gross profit for the full year of 2024 was US$3.0 million, compared with US$7.2 million in 2023. Gross margin for the full year of 2024 was 3.5%, compared with 8.6% in 2023. The decrease in gross profit margin was mainly attributable to decline in esports teams operation revenues.
-- Esports teams operation. Gross profit from esports teams operation was
US$2.5 million in the full year of 2024, compared with US$6.6 million in
2023. Gross margin decreased to 17.1% in the full year of 2024 from 30.6%
in 2023, primarily due to decreased revenue from sponsorships and
advertising revenue together with IP licensing revenue.
-- Talent management service. Gross loss from talent management service
changed to US$1.9 million in the full year of 2024 from US$0.8 million in
2023. Gross margin was negative 3.9% in the full year of 2024, compared
with negative 1.6% in 2023, primarily due to lower revenue coupled with
relatively fixed talent amortization cost.
-- Event production. Gross profit from event production increased to US$2.4
million in the full year of 2024, from US$1.4 million in 2023. Gross
margin was 10.1% in the full year of 2024, compared with 15.0% in 2023,
mainly due to new large-scale music events hosted by the Company in 2024
with lower average margins compared with 2023.
Selling and Marketing Expenses
Selling and marketing expenses for the full year of 2024 were US$8.1 million, representing an increase of 23.6% from US$6.6 million in 2023. This was mainly attributable to an increase in marketing and promotion expenses for the game publishing business.
General and Administrative Expenses
General and administrative expenses for the full year of 2024 decreased by 22.9% to US$11.8 million, from US$15.3 million in 2023. The decrease was primarily due to a decline in share-based compensation expenses, as the shares under the Company's share incentive plans were fully vested in the first half of 2023.
Other income for the full year of 2024 was US$1.8 million, compared with other income of US$0.2 million in 2023. The increase was primarily due to a one-off waiver of tournament league seat fee of US$0.9 million.
Net loss for the full year of 2024 was US$12.7 million, compared with a net loss of US$13.3 million in 2023.
Adjusted EBITDA, which is calculated as net loss excluding interest expense, net, income tax (benefit) expense, depreciation and amortization, share-based compensation expenses and change in fair value of acquisition contingent consideration, was negative US$9.9 million for the full year of 2024, compared with negative US$1.7 million in 2023.
Cash and cash equivalents
As of December 31, 2024, the Company had cash and cash equivalents of US$9.6 million, compared with US$7.6 million as of December 31, 2023.
Use of Non-GAAP Financial Measures
Adjusted EBITDA is calculated as net loss excluding interest expense, net, income tax (benefit) expense, depreciation and amortization, share-based compensation expense and change in fair value of acquisition contingent consideration. The non-GAAP financial measure is presented to enhance investors' overall understanding of financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measure to the most directly comparable GAAP financial measure. As non-GAAP financial measure has material limitations as an analytical metric and may not be calculated in the same manner by all companies, it may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure as a substitute for, or superior to, such metrics prepared in accordance with GAAP.
The following table sets forth a breakdown of non-GAAP financial measures of the company for the periods indicated.
For the Six Months Ended
December 31,
--------------------------------------
2023 2024
------------------- -----------------
US$ US$
(US$ in thousands, except for %)
Net loss (1,987) (8,020)
Add:
Interest expense, net 305 197
Income tax benefits (383) (1,439)
Depreciation and amortization(1) 3,217 2,350
Share-based compensation expense (135) -
Change in fair value of
acquisition contingent
consideration - (394)
Adjusted EBITDA 1,017 (7,306)
Adjusted EBITDA margin(2) 2.3 (15.9)
For the Year Ended
December 31,
--------------------------------------
2023 2024
------------------ ------------------
US$ US$
(US$ in thousands, except for %)
Net loss (13,258) (12,685)
Add:
Interest expense, net 523 537
Income tax benefits (1,201) (2,370)
Depreciation and amortization(1) 6,083 5,048
Share-based compensation expense 6,122 -
Change in fair value of
acquisition contingent
consideration - (394)
Adjusted EBITDA (1,731) (9,864)
Adjusted EBITDA margin(2) (2.1) (11.6)
Notes:
(1) Primarily consists of depreciation related to property and equipment, as well as amortization related to intangible assets
(2) Adjusted EBITDA as a percentage of revenues.
Exchange Rate Information
The functional currency of the company's PRC subsidiaries is RMB, which is the local currency used by the subsidiaries to determine financial position and operation result. The functional currency of Ninjas in Pyjamas is SEK, which is the local currency used by the subsidiary to determine financial position and operation result. The Group's financial statements are reported using U.S. Dollars ("$"). The results of operations and the consolidated statements of cash flows denominated in functional currency is translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in functional currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity (deficit). Gains or losses from foreign currency transactions are included in the results of operations.
The following table outlines the currency exchange rates published by the Federal Reserve Board were used in unaudited condensed consolidated financial statements:
As of
--------------------------
December 31, December 31,
2023 2024
------------ ------------
Balance sheet items, except for equity
accounts
RMB against $ 7.0999 7.2993
SEK against $ 10.0506 11.0676
For the Six Months Ended
December 31,
--------------------------
2023 2024
------------ ------------
Items in the statements of operation and
comprehensive loss, and statements of cash
flows
RMB against $ 7.2077 7.1800
SEK against $ 10.7494 10.6731
Recent Developments
-- On November 26, 2024, NIP Group Inc. announced a strategic partnership
with The9 Limited and its subsidiary China Crown Technology to develop
"MIR M" into a global esports title. The collaboration covers in-game
esports integration, tournament system development, and synchronized
marketing, enabling NIPG to leverage its event production and social
media strengths while diversifying its publishing pipeline.
-- On December 20, 2024, NIP Group Inc. entered the MOBA game publishing
market with the open beta launch of its sci-fi title "Re: Aetatis,"
strengthening NIPG's ecosystem and diversifying revenue streams.
-- On January 21, 2025, NIP Group Inc. secured a five-year landmark
agreement with the Abu Dhabi Investment Office to establish its
consolidated global headquarters in Abu Dhabi. Backed by up to
US$40 million in incentives over four years, this move accelerates its
regional expansion.
-- On February 11, 2025, NIP Group Inc. formed a strategic partnership with
Optics Valley Traffic Company to co-develop a "4+N" digital entertainment
hub beneath Wuhan East Railway Station. The project, anchored by
live-stream facilities, influencer districts, esports training centers,
and IP-based tournaments, cements Wuhan as a national esports innovation
center and deepens NIPG's footprint in central China.
-- On March 12, 2025, NIP Group Inc.'s subsidiary Ninjas in Pyjamas renewed
its partnership with Red Bull, integrating branded content,
behind-the-scenes access, and joint activations such as the CS Summit, to
enhance fan engagement, fortify brand equity, and stabilize recurring
sponsorship revenues across its global esports teams.
-- On March 17, 2025, NIP Group Inc. announced its inclusion in the Esports
World Cup Foundation Club Partner Program, securing funding and
elite-level exposure ahead of EWC 2025. This partnership enables
NIP.eStar to field multiple rosters, leveraging NIPG's combined legacy in
PC, console, and mobile esports, and extends its global competitive reach
into new markets.
Conference Call
The Company's management team will hold a conference call at 7:00 A.M. U.S. Eastern Time on Wednesday, April 30, 2025 (3:00 P.M. Abu Dhabi Time on the same day) to discuss the financial results. Details for the conference call are as follows:
Event Title: NIP Group Inc. Second Half and Full Year 2024 Earnings
Call
Registration Link: https://register-conf.media-server.com/regi
ster/BIe5577432f0464227a33354d4e0532885
All participants must use the link provided above to complete the online registration process prior to the conference call. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call.
A live and archived webcast of the conference call will be available at the Company's investor relations website at https://ir.nipgroup.gg/.
About NIP Group
NIP Group (NASDAQ: NIPG) is a global digital entertainment company driving the evolution of gaming and esports. With a diversified ecosystem spanning esports teams, arenas and events, content and influencer networks, game publishing, and hospitality, we engage hundreds of millions of fans and create immersive entertainment experiences. Operating across Europe, the Middle East, Asia, and the Americas, we collaborate with leading gaming companies to push the boundaries of interactive entertainment and bring gaming to new audiences worldwide.
Safe Harbor Statements
This press release contains statements that constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Among other things, the business outlook and quotations from management in this press release, as well as NIP Group's strategic and operational plans, contain forward-looking statements. NIP Group may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. All statements that are not historical or current facts, including but not limited to statements about NIP Group's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIP Group's growth strategies; its future business development, results of operations and financial condition; its ability to maintain and enhance the recognition and reputation of its brand; developments in the relevant governmental laws, regulations, policies toward NIP Group's industry; and general economic and business conditions globally and in the countries or regions where NIP Group has operations; and assumptions underlying or related to any of the foregoing. These statements are based on various assumptions, whether identified in this press release, and on the current expectations of NIP Group's management and are not predictions of actual performance.
NIP Group cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward-looking statements are subject to a number of risks and uncertainties. Further information regarding these and other risks is included in NIP Group's filings with the SEC. There may be additional risks that NIP Group does not presently know or that NIP Group currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. The forward-looking statements in this press release represent the views of NIP Group as of the date of this press release. Subsequent events and developments may cause those views to change. However, while NIP Group may update these forward-looking statements in the future, there is no current intention to do so, except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of NIP Group as of any date subsequent to the date of this press release. Except as may be required by law, NIP Group does not undertake any duty to update these forward-looking statements.
For investor and media inquiries, please contact:
NIP Group Inc.
Investor Relations: ir@nipgroup.gg
Public Relations: pr@nipgroup.gg
NIP GROUP INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars, except for share and per share data,
or otherwise noted)
As of
--------------------------
December 31, December 31,
2023 2024
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 7,594,601 $ 9,559,298
Short-term investments - 2,995,607
Accounts receivable, net 18,995,477 28,379,548
Advance to suppliers 400,655 1,066,329
Amounts due from related parties 269,817 896,177
Prepaid expenses and other current
assets, net 2,093,740 1,518,143
Total current assets 29,354,290 44,415,102
----------- -----------
Non-current assets:
Property and equipment, net 2,917,525 3,043,272
Intangible assets, net 133,969,114 127,981,521
Right-of-use assets 2,124,481 1,965,772
Goodwill 141,402,327 131,909,760
Deferred tax assets 550,794 2,088,820
Other non-current assets 3,521,024 1,162,119
Total non-current assets 284,485,265 268,151,264
----------- -----------
Total assets $313,839,555 $312,566,366
=========== ===========
LIABILITIES
Current liabilities:
Short-term borrowings $ 5,324,019 $ 10,550,327
Long-term borrowing, current portion 281,694 273,998
Accounts payable 12,728,929 19,070,470
Payable related to league tournaments
rights, current 1,921,518 732,236
Accrued expenses and other
liabilities 6,106,258 6,527,390
Deferred revenue 500,785 1,038,307
Operating lease liabilities, current 644,858 768,955
Amount due to related parties,
current 1,270,663 1,372,808
Total current liabilities 28,778,724 40,334,491
----------- -----------
Non-current liabilities:
Long-term borrowing, non-current 3,713,180 3,376,519
Amount due to related party,
non-current 131,017 131,017
Payable related to league tournaments
rights, non-current 2,342,940 1,546,701
Operating lease liabilities,
non-current 1,475,374 1,093,079
Deferred tax liabilities 24,659,215 23,661,207
-----------
Total non-current liabilities: 32,321,726 29,808,523
----------- -----------
Total liabilities $ 61,100,450 $ 70,143,014
=========== ===========
NIP GROUP INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In U.S. dollars, except for share and per share data,
or otherwise noted)
As of
-------------------------------
December 31, December 31,
2023 2024
------------- ----------------
Commitments and contingencies
MEZZANINE EQUITY
Class A redeemable preferred
shares $114,893,066 $ -
Class B redeemable preferred
shares 16,766,736 -
Class B-1 redeemable preferred
shares 190,882,461 -
Redeemable non-controlling
interests - 2,958,555
Total mezzanine equity $322,542,263 $ 2,958,555
----------- ------------
(DEFICIT) EQUITY:
Ordinary Shares (US$0.0001 par
value; 429,552,072 and nil
shares authorized as of
December 31, 2023 and 2024,
respectively, 37,163,379 and
nil issued and outstanding as
of December 31, 2023 and
2024, respectively) $ 3,716 $ -
Class A Ordinary Shares
(US$0.0001 par value;
461,995,682 shares authorized
as of December 31, 2024,
75,392,253 issued and
outstanding as of December
31, 2024) - 7,539
Class B Ordinary Shares
(US$0.0001 par value;
38,004,318 shares authorized,
issued and outstanding as of
December 31, 2024) - 3,800
Subscription receivable (3,716) (3,808)
Additional paid-in capital - 373,890,499
Statutory reserve 72,420 72,420
Accumulated deficit (80,300,893) (128,921,657)
Accumulated other
comprehensive income (loss) 5,425,370 (10,522,210)
-----------
Total (deficit) equity attributable
to the shareholders of NIP Group
Inc. (74,803,103) 234,526,583
Non-controlling interests 4,999,945 4,938,214
Total (deficit) equity (69,803,158) 239,464,797
=========== ============
Total liabilities, mezzanine equity
and equity (deficit) $313,839,555 $ 312,566,366
=========== ============
NIP GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(In U.S. dollars, except for share and per share data,
or otherwise noted)
For the Six Months Ended December 31,
---------------------------------------------
2023 2024
------------------------ -------------------
Net revenue - third
parties $ 44,496,103 $ 45,163,796
Net revenue - related
parties 608,902 758,038
---------------- ---------------
Total net revenue 45,105,005 45,921,834
---------------- ---------------
Cost of revenue - third
parties (39,841,398) (45,092,830)
Cost of revenue - related
parties (358,433) (182,483)
---------------- ---------------
Total cost of revenue (40,199,831) (45,275,313)
---------------- ---------------
Gross profit 4,905,174 646,521
Operating expenses:
Selling and
marketing expenses (2,771,373) (5,340,461)
General and
administrative
expenses (4,477,954) (7,084,114)
---------------- ---------------
Total operating expenses (7,249,327) (12,424,575)
---------------- ---------------
Operating loss (2,344,153) (11,778,054)
Other income (expense):
Other income, net 279,880 2,516,554
Interest expense,
net (304,892) (196,993)
---------------- ---------------
Total other
(expense) income,
net (25,012) 2,319,561
---------------- ---------------
Loss before income tax
expenses (2,369,165) (9,458,493)
Income tax benefits 382,640 1,438,727
Net loss (1,986,525) (8,019,766)
================ ===============
Net income
attributable to
non-controlling
interest 117,764 23,389
---------------- ---------------
Net loss
attributable to NIP
Group Inc. (2,104,289) (8,043,155)
Preferred shares
redemption value
accretion (31,084,334) -
Net loss
attributable to NIP
Group Inc.'s
shareholders (33,188,623) (8,043,155)
================ ===============
Other comprehensive
income (loss):
Foreign currency
translation (loss)
income attributable
to non-controlling
interest, net of
nil tax (5,238) 1,493
Foreign currency
translation income
(loss) attributable
to ordinary
shareholders, net
of nil tax 3,964,784 (7,718,540)
---------------- ---------------
Total comprehensive
income (loss) $ 1,973,021 $ (15,736,813)
================ ===============
Total comprehensive
loss attributable
to non-controlling
interest 112,526 24,882
Total comprehensive
income (loss)
attributable to NIP
Group Inc. 1,860,495 (15,761,695)
Net loss per ordinary
share
Basic and Diluted (0.89) (0.08)
Weighted average number
of ordinary shares
outstanding
Basic and Diluted 37,163,379 104,155,063
NIP GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(In U.S. dollars, except for share and per share data,
or otherwise noted)
For the Year Ended December 31,
-------------------------------------
2023 2024
------------------ -----------------
Net revenue - third parties $ 82,502,622 $ 84,056,642
Net revenue - related parties 1,165,819 1,209,664
------------- -------------
Total net revenue 83,668,441 85,266,306
------------- -------------
Cost of revenue - third parties (75,884,571) (81,909,050)
Cost of revenue - related
parties (585,184) (346,721)
------------- -------------
Total cost of revenue (76,469,755) (82,255,771)
------------- -------------
Gross profit 7,198,686 3,010,535
Operating expenses:
Selling and marketing
expenses (6,577,396) (8,130,777)
General and administrative
expenses (15,273,231) (11,768,315)
------------- -------------
Total operating expenses (21,850,627) (19,899,092)
------------- -------------
Operating loss (14,651,941) (16,888,557)
Other income (expense):
Other income, net 716,554 2,370,956
Interest expense, net (523,317) (537,479)
------------- -------------
Total other income, net 193,237 1,833,477
------------- -------------
Loss before income tax expenses (14,458,704) (15,055,080)
Income tax benefits 1,200,855 2,369,759
Net loss (13,257,849) (12,685,321)
============= =============
Net income attributable to
non-controlling interest 180 4,464
------------- -------------
Net loss attributable to
NIP Group Inc. (13,258,029) (12,689,785)
Preferred shares
redemption value
accretion (43,914,707) (35,930,979)
Net loss attributable to
NIP Group Inc.'s
shareholders (57,172,736) (48,620,764)
============= =============
Other comprehensive income
(loss):
Foreign currency
translation (loss) income
attributable to
non-controlling interest,
net of nil tax (1) 1,628
Foreign currency
translation income (loss)
attributable to ordinary
shareholders, net of nil
tax 5,253,255 (15,947,580)
------------- -------------
Total comprehensive loss $ (8,004,595) $ (28,631,273)
============= =============
Total comprehensive income
attributable to
non-controlling interest 179 6,092
Total comprehensive loss
attributable to NIP Group
Inc. (8,004,774) (28,637,365)
Net loss per ordinary share
Basic and Diluted (1.54) (0.69)
Weighted average number of
ordinary shares outstanding
Basic and Diluted 37,160,593 70,200,374
(END) Dow Jones Newswires
April 30, 2025 04:00 ET (08:00 GMT)
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