BEIJING, September 2, 2021 / PRNewswire / – Joy Spreader Group Inc. (HKG: 6988, “the Group”, “Joy Spreader”), a leading company in the field of marketing technologies listed in Hong Kong, recently announced its interim results for the first half of the year ended June 30, 2021. Joy Spreader achieved a turnover of HK $ 624 million (about. US $ 79.8 million) in the first half of 2021, an increase of 62.37% compared to the same period of the previous year. The Group has opted for a cost per sale (CPS) approach as its main business model. In the first half of the year, CPS-based revenue represented 92.71 percent of the company’s total.
The company, a Chinese technology leader primarily engaged in intelligent performance marketing based on new mobile media, maintained rapid growth in the first half of 2021. Gross profit and net profit excluding special items for the period also increased by 105.15% and 102.26% per year. from one year to 214 million Hong Kong dollars (about. US $ 27.4 million) and 137 million Hong Kong dollars (about. US $ 17.5 million), respectively.
By deploying this model in tandem with its professional services and technology skills, the company has helped corporate clients gain new customers and orders by meeting their challenges and expectations of the Direct to Consumer (DTC) model. by Joy Spreader. Joy Spreader then negotiates a compensation model with each client based on several performance indicators, with sales being one of the most important.
Joy Spreader’s financial results were closely associated with two metrics: the number of marketing points covered and Average gross merchandise value (VMC) of products at marketing points because the company’s product sales are calculated by multiplying the number of these points by the average GMV of the products sold.
From June 30, 2021, the number of covered marketing points included in Joy Spreader’s marketing ecosystem increased to 1.5616 million, up 208.65% from the previous year. Among the marketing points, 689,500 are active in nature, up 126.32%. The average GMV of the products of the covered outlets showed an annual gain of 10.1% at 3504.26 HK $ (about. US $ 448.5). It should be noted that the average GMV of e-commerce products sold at active marketing points on the popular Douyin e-commerce platform jumped 15.24% to reach HK $ 9,920.44 (about. $ 1,269.80) while the GMV of interactive entertainment products in premium locations on WeChat channels increased 1.63% to HK $ 2,833.77 (about. $ 362.70).
The growth spurt in the number of active marketing points for product placement, along with an increase in the average GMV of products sold, facilitated the rapid improvement in Joy Spreader’s intermediate results.
Joy Spreader is continuing its efforts to expand its presence on the Douyin platform. From June 30, 2021, the number of covered points of sale of the Group on the platform increased by 720.23% year-on-year to reach 657,300. Of these 65,200 assets, an increase of 215.93%. The company’s abridged video-based (SFV) e-commerce business is expected to have huge growth potential due to the possible conversion of many of its covered marketing points to active points.
With the conversion of an increasing number of marketing points not covered by Joy Spreader on Douyin into active points of sale, along with the continued increase in the average GMV of the products placed there, the e-commerce marketing activity of the SFV-based group is expected to grow rapidly. , further promoting the rapid growth of the company’s overall results.
In the future, Joy Spreader plans to further expand the SFV-based e-commerce business outside of China. With the advantages of the technologies that the Group has already built on the national market, the company fully expects to be successful in the effort.
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SOURCE Joy Spreader Group Inc.