Martech Firm Pleasure Spreader maintains speedy development
Joy Spreader (HKG: 6988, “Group”, “Joy Spreader”), a leading marketing technology company, recently announced its interim results for the first half of the year June 30, 2021, with the company having sales of HK $ 624 million (approx. $ 79.8 million) in the first half of 2021, an increase of 62.37 percent compared to the same period of the previous year. Gross profit and net profit (excluding foreign exchange gains or losses) for the period also increased 105.15 percent and 102.26 percent, respectively, over the previous year HK $ 214 million (approx.$ 27.4 million) and HK $ 137 million (approx. $ 17.5 million), respectively.
The interim financial report also showed that Joy Spreader had total revenue from matching transactions of HK $ 2.416 billion (approx. $ 309.2 million) in the first half of 2021, which corresponds to an increase of 149.17 percent compared to the previous year. In particular, sales of interactive entertainment products rose by 123.38 percent compared to the previous year HK $ 1.769 billion (approx. $ 226.4 million), while the gross value of goods (GMV) of e-commerce products rose 264.08 percent. rose HK $ 647 million (approx. $ 82.8 million).
Since its inception, Joy Spreader has helped its customers target consumers and facilitate transactions while actively expanding into new mobile media marketing. In addition, the Group has started to implement an innovative business model in which close relationships with customers from various industries are established using the cost-per-sale (CPS) model.
Over the past several years, Joy Spreader has taken the opportunity to further expand its e-commerce product marketing business with a focus on selling goods via short video (SFV) platforms, which are now the Group’s second largest growth engine, in addition to constantly strengthening its interactive entertainment and other digital product marketing companies, including games and cyber literature.
Joy Spreader’s e-commerce product marketing business benefited from the booming SFV-based e-commerce sector, posting sales growth of 285.24 percent HK $ 129 million (approx. $ 16.5 million) for the first half of 2021. The gross profit also rose by 143.31 percent compared to the previous year HK $ 65.28 million (approx. $ 8.3 million).
The growth spurt in the marketing business for e-commerce products was due, among other things, to the rapid expansion of the e-commerce market, which is based on the SFV sharing app Douyin. According to data from LatePost, the combined GMV of e-commerce retailers on Douyin has been exceeded 500 billion yuan (approx. $ 75 billion) for the whole of 2020 and is expected to almost double 1 trillion yuan (approx. $ 150 billion) in 2021. According to LatePost, that number is expected to reach 9.5 trillion yuan (approx. $ 1.4 trillion) until 2023.
In addition, Joy Spreader has continued to improve its skills in marketing products and delivering services through Douyin, which in turn has fueled the rapid growth of the SFV-based marketing business. away June 30, 2021, the number of Douyin accounts had risen to 657,300, an increase of 720.23 percent over the previous year, of which 65,200 are active, an increase of 215.93 percent. The average GMV of active Douyin accounts was also up 15.24 percent year over year CHF 9,920.44 (approx. $ 1,296.8).
With the further expansion of the Douyin-based e-commerce market, along with the continued improvement of the marketing ecosystem of e-commerce merchants on Douyin, the SFV-based e-commerce product marketing business is expected to be from Joy Spreader thanks to the successful implementation of the business expansion strategy.
For the future, Joy Spreader plans to further expand its leading position in the SFV-based e-commerce market. To that end, the group expects to bring tailored new media content to corporate clients by continuing to support the creation of new media accounts and IP content to drive traffic through strategic alliances, investments and incubation projects.
At the same time, Joy Spreader intends to continue its efforts to build relationships with overseas e-commerce platforms with the establishment of Hainan Joy Spreader Interactive International Technology Co., Ltd, an e-commerce marketing platform for overseas markets.
So far, the group has created a new technology model and service system that is based on the properties of new mobile media platforms and the market environment outside of China, with the aim of expanding the marketing business for e-commerce products via international e-commerce platforms modeled on Douyin. To this end, the group is planning to introduce an e-commerce marketing service for the first time in South East Asia, followed by the expected expansion of the service to other countries and regions around the world.
As the SFV-based e-commerce business continues to grow, Joy Spreader expects to further consolidate its leadership position in the performance marketing sector and enter a new phase of growth characterized by unified management, diversified businesses and global reach.
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