– Annual Revenue Up 21.17% Year-over-Year to Reach RMB3.12 Billion –
– Successful Commercialisation of Short-Video Marketing Cloud Service Platform with First-Year Revenue Reaching RMB32.88 million –
– Announces Final Dividend for the First Time of HK$0.05 per ordinary share –
(31 March 2022 – Shanghai) Netjoy Holdings Limited (“Netjoy Holdings” or “The Company”, together with its subsidiaries, “the Group”, stock code: 2131.HK), a leading one-stop short-video marketing solutions platform provider in the PRC, is pleased to announce the annual results for the year ended 31 December, 2021 (the “Year”).
2021 Business Overview
Maintained Steady Business Growth and Healthy Profitability
2021 is a year of opportunities and challenges. As the world has entered the post-pandemic era, the development of digital economy has accelerated significantly, and the demand for high-quality online marketing services from a wide range of industries has become increasingly strong. The Group firmly grasped this opportunity to accelerate the expansion of its business landscape and promote the upgrading of technical capabilities, aiming to quickly meet the evolving market demand. Facing the challenges during the second half of 2021, when the overall domestic advertising market was under temporary pressure from the macroeconomic uncertainties and the tightening industry regulations, the Group still strived to strengthen its technology, product and service capabilities. As such, the Company still maintained steady business growth and healthy profitability throughout the Year despite the challenging market environment. Meanwhile, the Group continued to scale up its core online marketing solutions business, accelerate the development of its short-video marketing cloud services, and further enrich its revenue streams by expanding its business into new areas such as the fast-growing brand live-streaming operations, brand cross-border services and the key opinion leader (“KOL”) marketing through consistent technology research and development.
During 2021, total revenue reached RMB 3.12 billion, representing an increase of 21.17% compared to RMB2.58 billion in 2020. Gross profit increased by 7.91% year-on-year (“yoy”) from RMB202.65 million in 2020 to RMB218.67 million in 2021. Net profit increased by 13.31% to RMB117.40 million, and adjusted profit reached RMB 146.54 million, maintaining healthy profitability.
To reward shareholders for their long-term support of the Group and to reflect the profits created by the company's businesses, the Board of Directors recommends to distribute a final dividend of HK$0.05 per ordinary share for the year ended 31 December 2021 (2020: Nil). Based on the number of shares in issue as of the date of the company's announcement, the total dividend distribution is approximately HK$40,000,000.
Scale of Core Short-Video Commercialisation Business Recorded Another High
The Group continued to leverage its strengths as an industry leader, achieving nearly full coverage of the China’s short-video market through direct cooperation with the top five short-video platforms in the market. The Group also provided clients with all-round and full-cycle technology and services through its short-video commercialisation business driven by twin engines of big data managements capabilities and large-scale data-driven short-video production capabilities, enabling clients to reduce marketing costs, track real time marketing data, and efficiently improve marketing performance, thereby further consolidating the Group’s competitive advantage and market leadership position. In 2021, the number of advertisers served by the Company increased to 882, with total billings increased by 61.29% year-on-year to RMB 6.58 billion.
Successful Commercialisation of Short-Video Marketing Cloud Service Business to Further Diversify Business Landscape
The Group introduced the new short-video marketing cloud service business in the first half of 2021, developing cloud service platforms such as “Tradeplus” and “hepai.video”. These platforms provide a wide array of functions covering programmatic and cross-channel ad placement, smart video material management and intelligent derivation, real-time data analysis and report generation, empowering clients with advanced technology to create large-scale user increment through quantifiable metrics, real-time data tracking and low marketing costs, thereby helping them to achieve tremendous commercial growth. During the Year, “Tradeplus” generated revenue of approximately RMB 32.88 million from SaaS services. In the meantime, the Group continued to expand its technology and service capabilities to more business areas, such as the rapidly developing brand live-streaming operations, cross-border brand services, and KOL marketing, to further improve the short-video full-cycle service ecology.
Accelerated the Programmatic Level and Productivity of Video Production Activity through Cutting-edge Technology Capabilities
Through its self-developed platform, the Group has realised the programmatic settlement of videos, accelerated the enhancement of its video productivity and the automation of video production. Meanwhile, the Group employed its video-related artificial intelligence (“AI”) technologies such as scene replacement, audio subtitle conversion, automatic editing, etc., which facilitates the application of AI technologies in the automatic video production, enhances the level of mechanisation in video production and expands its video production capability and scale. As at 31 December 2021, the Group’s monthly video production capacity has exceeded 21,000 videos. Our full-time video production team has a monthly production capacity of over 271 videos per person, while the “hepai.video” has programmatically established programmatic connections with over 620 video creators including individuals and institutions. As of December 31, 2021, the short videos delivered and distributed through programs have accumulated approximately over 800 billion impressions and over 212.3 billion video views.
Continuous Industry Recognition with Prestigious Awards
The Group won recognition from a wide range of sectors with its leading technology and platform services capabilities, receiving multiple awards and accolades from various parties including clients, media, industries and capital markets. These include “2021 Top 50 Leading Enterprises with Technological Strength” by Frost & Sullivan, a globally renowned growth consultancy firm, the “Best SaaS Company” of the 6th Golden Hong Kong Stock, “The 14th Golden Investment Award Gold Award 2021”, the “Best Martech Company” of the 16th iResearch Awards. “2021 TopDigital Innovative Marketing Award – Product of the Year”, “Top 20 New Engines of 2021 Pipeline” of the Engine Conference by ByteDance’s Ocean Engine, “Brand Service Provider 2022” of Douyin E-Commerce, “KA Effect 2021 Outstanding Partners” by Kuaishou’s Online Marketing Services, the “Innovation Power Award for the Year” at the 2021 Channel Award Ceremony by Tencent Advertisement. Recently, the Group has also been selected as a constituent stock of the FTSE Global Stock Index, China Regional Index, reflecting that the Company’s development potential is well-recognised by the capital market.
Business Outlook
Looking ahead, the Group will drive business growth based on four strategic directions.
Deepen cooperation with top domestic online platforms, and broaden overseas short video market
The Group will continue to consolidate the diversified media network, deepen all-round cooperation with top domestic short-video platforms, with a view to provide clients with a full range of larger-scale and more efficient all-round service capabilities. In the meantime, the Group will continue to closely follow the trend of the domestic internet market, seize new opportunities amid the industry development and explore more new forms of cooperation with the top online platforms in short-video technology services. The Group will also accelerate the business expansion in overseas markets with the direct partnership with overseas leading short-video platforms or strategic cooperation with leading industry players.
Strengthen the application of the latest digital technology through continuous R&D
The Group will continue to deploy its resources with a focus on developing and improving its data and technology assets, and will continue to upgrade its big data analytics capabilities and enhance the mechanization and automation of its cloud service platforms in all segments along the short-video industry chain, including but not limited to short-video content production, content distribution, and performance optimisation. The Group will also develop the marketing SaaS service capabilities for emerging or specific vertical industries, and expand SaaS capabilities to other business areas, including but not limited to brand live-streaming operations and KOL marketing. Meanwhile, the Group is also committed to further explore the application and innovation of AI technology in commercialised scenarios such as live-streaming e-commerce, including artificial intelligence in 3D modelling and digital human modelling, as well as conversational AI, such that the Group will be well-positioned for the commercial application of virtual-reality technology in the future.
Develop the Short-Video Marketing Services Ecosystem
The Group will expedite its advantages, such as industry-leading position, platform infrastructure, massive data accumulation, along the upstream and downstream industry chains of short-video marketing, derivative industry chains and other related industry ecosystems, seeking more diversified business models and considerable business growth driven by technology in areas such as brand live-streaming operation, cross-border brand services, KOL marketing and local consumer services. In parallel, the Group will deepen its cooperation with existing clients and attract new key clientele through these businesses, in turn benefiting its business growth in the long run.
Seek Strategic Partnerships, Investments and Acquisition Opportunities to Pursue Long Term Synergies
The Group will actively seek opportunities to invest in or acquire businesses, chiefly targeting at companies with competitive advantages in SaaS services, big data analytics and AI capabilities, augmented reality (AR) and mixed reality (MR) technologies, cross-border brand services, content development and production, upstream and downstream synergy and other strategic resources.
This press release is for referential purposes only. The results announcement is the only official and legally binding version.
