Joy Spreader Announces 2020 Annual Results

HONG KONG, Mar 20, 2021 - (JCN Newswire) - Joy Spreader Interactive Technology. Ltd ("Joy Spreader"or the "Company", Stock Code: 06988.HK) is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively, the "Group") for the year ended December 31, 2020, with the comparative figures for the preceding financial year.

RESULTS HIGHLIGHTS

- The revenue was HK$923.92 million, representing an increase of 71.73% as compared with that of last year.
- The profit for the year (excluding the impact of non-recurring profit or loss) was HK$220.69 million, representing an increase of 121.42% as compared with that of the year.
- The gross profit was HK$301.56 million, representing an increase of 126.98% as compared with last year.
- The gross profit margin increased from 24.70% in the same period last year to 32.64% in 2020.

In 2020, with the rapid development of the mobile-new-media industry and significant market demands for performance-based marketing and traffic monetization, Joy Spreader won the favor of numerous industry clients and content publishers with a leading position in MarTech. During the year, the number of new clients, marketing products, and monetization access points of the Group recorded a remarkable increase. In addition to the continuous growth of the marketing business of interactive entertainment and other digital products, the marketing business of e-commerce products made great progress and achieved gratifying results.

The revenue of the Group increased by 71.73% from HK$538.00 million in 2019 to HK$923.92 million in 2020. The Group achieved a gross profit of HK$301.56 million in 2020, representing an increase of 126.98% as compared with HK$132.86 million in 2019. The gross profit margin was 32.64%, representing an increase of 7.94 percentage points from 2019. The profit for the year (excluding the impact of non-recurring profit or loss) was HK$220.69 million, equivalent to 2.2 times of 2019.

The Company's Leading Position in Industry Remains Stable with Continuous Growth of Demand for Performance-based Marketing and Marketing SaaS Services

With the development of the mobile internet ecological environment and marketing technology, performance-based marketing, which features with strengths of accuracy and high-cost efficiency, is becoming the major option of marketers to conduct product marketing and promotion, and the market demand keeps on growing. At the same time, the rapid growth of the number of mobile-new-media content publishers and their published content also brings a sharp increase in demand for traffic monetization. In 2020, the Group has achieved outstanding performance in both business segments of the performance-based marketing and marketing SaaS services.

Performance-based Marketing Service
- In 2020, with the increase in the number of clients and products of interactive entertainment and other digital product marketing, together with the rising of ARPU value, the scale of business of Joy Spreader was boosted rapidly. In addition, the epidemic prevention and control measures in 2020 provided a growth opportunity for the online recreational industry, including games, online literature, and live broadcasting. Owing to the reinforcement of the user habits of interactive entertainment and other digital products, more online products consisted of mobile applications and mini-programs came into the market, which also drove the demand for online performance-based marketing services.

- At the same time, the video e-commerce industry continued to grow remarkably in 2020, becoming an important channel for e-commerce product distribution, presenting a blowout type of growth. Due to the early business layout in the field of video e-commerce product marketing and the accumulation of relevant data and model algorithms, Joy Spreader began to take shape in conducting non-live e-commerce marketing business over video platform which revealed the potential of rapid growth. As of December 31, 2020, the e-commerce product GMV of HK$593.64 million was achieved through the Group's performance-based marketing services, representing a year-on-year increase of 353.92%, becoming one of the fastest-growing business segments and main drive force of the Group in 2020.

Marketing SaaS Services
In 2020, with the rapid growth of the global SaaS industry, the development and popularity of standardized and modular marketing SaaS services have also provided content publishers with low-threshold, more convenient, and efficient tools and means. Joy Spreader began to provide mobile new media publishers with marketing SaaS monetization services in 2013. With the development of the SaaS platform, the Group provided the interface to content publishers, helping them to access their product library. The Group also recommended the product portfolios to their subscribers by using interest-based recommendation technology, and ultimately helped the content publishers to realize traffic monetization. Joy Spreader obtained revenue sharing via the process of traffic monetization and obtain the content resources and user behaviors data quickly and automatically, as well as improve the model algorithm, which in turn promote the Group's marketing efficiency and effectiveness and ultimately improve the profitability. As of December 31, 2020, the Group has cooperated with 469,968 mobile new media marketing access points, representing a year-on-year increase of 106.06%.

Looking forward to 2021, as a technology-driven company with data and algorithms as its core competencies, Joy Spreader will continue to optimize its data algorithm models and marketing SaaS platforms, actively expand the number of industry clients and mobile new media marketing SaaS clients, and make pre-deployment for the business expansion in overseas markets, in a bid to build an industry-leading service system of mobile new media performance-based marketing and marketing SaaS.

About Joy Spreader Interactive Technology. Ltd
Joy Spreader is a leading marketing technology company, engaged in mobile new media performance-based marketing and marketing SaaS services in China. The Group uses data and algorithms as the core competencies and uses aggregation and matching technologies based on interest-based recommendations to help marketers'products and mobile new media content to achieve coupled transactions, so as to realize marketers'marketing goals such as product sales and promotions. The Group also helps content publishers to realize the commercial value of their traffic.

Joy Spreader was listed on the Main Board of the Hong Kong Stock Exchange on September 23, 2020 with the stock code of 06988.HK.



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