Joy Spreader Group Inc. Attributes Strong Growth of Its 2021 Interim Results to Three Key Competitive Advantages
BEIJING, Sept. 1, 2021 /PRNewswire/ -- Joy Spreader Group Inc.(HKG:6988, "the Group", "Joy Spreader"), a leading marketing technology company listed in Hong Kong, announced its interim results for the first six months ended June 30, 2021. Since the beginning of the year, the Group has demonstrated robust growth across-the-board by continuously strengthening its competitiveness through active expansion into new fields and improved services to existing corporate clients.
Joy Spreader 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 the previous year. Gross profit and net profit excluding foreign exchange 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 strong growth of Joy Spreader's interim financial results was partly attributable to the Group's expansion into the performance-based marketing sector. In light of the firm's role as a Chinese technology leader mainly engaged in the new mobile intelligent performance-based marketing, the impressive results were also driven by the growth of the digital economy, in particular the flourishing short-form video (SFV)-based e-commerce sector.
The SFV-based e-commerce sector is experiencing a boom and is now the fastest growing online market in China. At the same time, overseas e-commerce platforms, with TikTok serving as a prime example, are in the initial stage of monetization and expect to offer huge growth potential thanks to increasing customer expectations. Given this scenario, Joy Spreader has taken advantage of the unprecedented opportunity to expand into e-commerce marketing markets outside of China, in line with what many players in the sector are doing.
Joy Spreader Opts for a Cost-per-sale (CPS) Approach, Choosing it As Its Main Business Model.
During the first half of 2021, CPS-based revenue accounted for 92.71 per cent of the Group's total. Using this model in tandem with its professional services and competence in technologies, the company has helped corporate clients win new customers and orders by addressing their challenges with Joy Spreader's Direct to Consumer (DTC) solution. 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 has deepened its ongoing efforts to develop performance-based marketing technologies in a move to further optimize its supply-side platform (SSP) and demand-side platform (DSP) services which, when considered together, vastly increase the possibilities for collaborations, with the aim of creating a mobile marketing ecosystem.
The SSP services business provides data-rich profiles of online service channels alongside a product recommendation engine to assist sellers in choosing the most suitable merchandise for sale in each channel. As of June 30, 2021, the number of covered marketing points included in the Group's marketing ecosystem had risen to 1.5616 million, up 208.65 per cent from 505,900 in the same period of 2020. Of the marketing points, 689,500 are active, up 126.32 per cent compared with 304,700 in the same period of the previous year.
As for DSP services, corporate clients that subscribe to the service have access to detailed descriptions of products in tandem with intelligent forecasting services. As of June 30, 2021, the number of corporate clients grew 36.86 per cent year on year to 308 while the line-up of e-commerce and interactive entertainment products expanded to 1,538, up 62.92 percent, with the number of product categories rising 86.29 per cent to 231.
The two fundamental components of Joy Spreader's group business, SSP and DSP services, are highly complementary, coming together to create a complete organic ecosystem that facilitates mutual growth of product inventories, traffic pools and model performance.
From the perspective of regulatory trends and the evolution of platforms, Joy Spreader is uniquely positioned to provide cross-platform services as an independent third party and, by doing so, responds to the Chinese government's call for antitrust and business integration across platforms. Given the trend towards internet platform companies strengthening their business integration and breaking down artificial barriers, internet-based platforms will find themselves in a position to provide more business opportunities to partners while strengthening cross-platform collaborations as third-party service providers. By leveraging the opportunities from cross-platform business integration, Joy Spreader expects to leverage its experience to enhance its capabilities in providing services across platforms given the absence of exclusive partnerships with a specific platform, in an effort to better meet the business needs of internet platforms by helping them become part of the bigger ecosystem.
With the new mobile performance-based marketing market showing a continuous increase in demand, Joy Spreader is strengthening its leading advantages to further drive the rapid growth of its results. The firm plans to continue its commitment to providing innovative and premium performance-based marketing services powered by technological innovation.
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SOURCE Joy Spreader Group Inc.
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