First Sports raises 80-million-yuan Series A financing

The fitness service provider First Sports has completed 80 million yuan (about US $12.12 million) in Series A financing, which was led by Shenzhen Capital Group and China International Capital Corporation Limited, co-invested by other investors including First Capital and Northeast Securities.

Two months ago, the sports company was listed on the National Equities Exchange and Quotations, also known as the New Three Board. Although First Sports currently operates only 9 fitness locations in China, it managed to reach a high estimated value because of its strong community management resources, backed by its parent company Modern Land.

In 2016, First Sports generated a revenue of 22.23 million yuan, with net profit reaching 1.6 million yuan.

As Qinghu, the CEO of the sports company, told Chinese tech media outlet 36Kr, that one of the reasons why First Sports has attracted so many investors is that it has gained such strong support from its parent company. In other words, community resources have demonstrated an increasing importance to success in the fitness industry.

Source: ifeng

Proofread by William Logsdon