(Yicai Global) Dec. 15 -- Wuhu 37 Interactive Entertainment Network Technology Group has bought into the All Gamers E-Sports Club as the Chinese game developer branches out into professional tournaments for the first time.

Guangzhou-based Wuhu 37 has paid tens of millions of Chinese yuan, equivalent to millions of US dollars, for a stake in China’s oldest e-sports club AG that dates back to 1999, the two firms said today.

The two parties will collaborate on multiple fronts, Wuhu 37 Chairman Li Yifei said at the signing ceremony. They will develop more e-sports games, set up more clubs, sponsor more tournaments and create more video game-related products, he said.

China’s e-sports sector has experienced a boom during the Covid-19 pandemic. Revenue soared 54.7 percent in the first half to CNY71.9 billion (USD11 billion), according to the China Audio-Video and Digital Publishing Association. The number of gamers lept 9.9 percent to 484 million.

AG runs virtual sports teams that compete in 12 different games including tactical weapon-based combat game CrossFire and the multiplayer role-playing battle arena game Arena of Valor on both personal computers and mobile devices.

The Chengdu-based club had earlier secured tens of millions of yuan in A-round financing led by Shanghai-based investment firm Real Power Capital in August.

Wuhu 37, which mainly develops desktop and mobile games, is not short of money. It logged a 45.3 percent surge in net profit to CNY2.3 billion (USD351 million) in the first three quarters. Revenue was up 18.1 percent to CNY11.3 billion (USD1.7 billion).

Wuhu 37’s stock [SHE:002555] closed down 0.38 percent at CNY28.80 (USD4.40) today, with a market capitalization of CNY60.8 billion (USD9.3 billion).

Editor: Kim Taylor