Driven by Successful Implementation of Strategy, Joy Spreader Expands SFV-based E-commerce Marketing Business Achieves Outstanding Result
BEIJING, Aug. 31, 2021 /PRNewswire/ — Joy Spreader (HKG: 6988, “Group”, “Joy Spreader”), a leading marketing technology company, recently announced its interim results for the first six months ended June 30, 2021, whereby the firm achieved revenue of HK$624 million (approx. US$79.8 million) during the first half of 2021, an increase of 62.37 per cent from the same period of last year. Gross profit and net profit (excluding foreign exchange gains or losses) for the period also grew 105.15 per cent and 102.26 per cent year on year to HK$214 million (approx.US$27.4 million) and HK$137 million (approx. US$17.5 million), respectively.
The interim financial report also showed that Joy Spreader achieved a total turnover of matching transactions of HK$2.416 billion (approx. US$309.2 million) during the first half of 2021, representing a year on year rise of 149.17 per cent. In particular, sales of interactive entertainment products gained 123.38 per cent year on year to HK$1.769 billion (approx. US$226.4 million) while gross merchandise value (GMV) of e-commerce products rose 264.08 per cent to HK$647 million (approx. US$82.8 million).
Since its incorporation, Joy Spreader has helped customers accurately target consumers and facilitate transactions while actively expanding in the new mobile media marketing sector. The Group has also started implementing an innovative business model which involves establishing close relationships with customers across a variety of industries via the cost-per-sale (CPS) model.
Over the past few years, Joy Spreader has capitalized on opportunities to further expand its e-commerce products marketing business focused on selling goods via short-form video (SFV) platforms, now the Group’s second biggest growth engine, in addition to constantly strengthening its interactive entertainment and other digital product marketing businesses, including gaming and cyber literature.
Benefiting from the booming SFV-based e-commerce sector, Joy Spreader’s e-commerce products marketing business posted a rise of 285.24 per cent in revenue, surging to HK$129 million (approx. US$16.5 million) for the first half of 2021. Gross profit also showed a year on year increase of 143.31 per cent to HK$65.28 million (approx. US$8.3 million).
The spurt in the growth of the e-commerce products marketing business was partly attributable to the rapid expansion of the SFV sharing app Douyin-based e-commerce market. According to data from LatePost, combined GMV of e-commerce merchants on Douyin exceeded 500 billion yuan (approx. US$75 billion) for the whole of 2020 and is expected to almost double to 1 trillion yuan (approx. US$150 billion) in 2021. According to LatePost, the figure is anticipated to reach 9.5 trillion yuan (approx. US$1.4 trillion) by 2023.
In addition, Joy Spreader has further enhanced its capabilities in marketing products and providing services via Douyin, which has in turn driven the rapid growth in the SFV-based marketing business. As of June 30, 2021, the number of Douyin accounts had grown to 657,300, a year on year gain of 720.23 per cent, 65,200 of which are active, up 215.93 per cent. Averaged GMV of the active Douyin accounts also showed a year on year rise of 15.24 per cent to HK$9,920.44 (approx. US$1,296.8).
With the further expansion of the Douyin-based e-commerce market, in tandem with the continuous enhancement of the marketing ecosystem of e-commerce merchants on Douyin, Joy Spreader’s SFV-based e-commerce products marketing business is expected to continue rapid growth thanks to the successful implementation of its strategy to expand the business.
Going forward, Joy Spreader plans to further deepen its leadership in the SFV-based e-commerce market. To this end, the Group expects to provide tailor-made new media content to corporate customers by continuing to support the creation of new media accounts and IP content to increase traffic through strategic alliances, investments and incubation projects.
At the same time, Joy Spreader intends to further its efforts in building relationships with overseas e-commerce platforms with the establishment of Hainan Joy Spreader Interactive International Technology Co., Ltd, an e-commerce marketing platform for foreign markets.
So far, the Group has created a new technology model and service system based on the characteristics of new mobile media platforms and of the market environment outside of China, with the aim of expanding its e-commerce products marketing business via international e-commerce platforms modeled on Douyin. To this end, the Group plans to launch an e-commerce marketing service first in Southeast Asia, followed by the anticipated expansion of the service into other countries and regions worldwide.
With the continued growth of the SFV-based e-commerce business, Joy Spreader expects to further consolidate its leadership in the performance marketing sector and enter a new stage of growth characterized by unified management, diversified businesses and global reach.
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