– Half-year Revenue Amounted to RMB1.618 Billion with Year-on-Year and Sequential Growth –
– Half-year Net Profit Achieved Nearly Fourfold Rebound Sequentially –
– Steady Development of Diversified Businesses with Technology-driven Growth –
(August 25, 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, announces the unaudited consolidated results for the six months ended June 30, 2022 (“1H22”).
Business Review
Actively and Promptly Responded to Macro Challenges and Steadily Progressed Business Development
In the first half of 2022, the Group actively and promptly responded to the complex changes in macro environment and remained focused on the development of marketing technology platforms as well as commercial services that empower client growth. Therefore, the overall business of the Group demonstrated a positive trend of recovery in the first quarter of this year after the second half of 2021. During the second quarter of this year, the resurgence of the COVID-19 pandemic in Shanghai caused a significant impact on our headquarter and key commercial operating companies located in Shanghai, which pressured several business aspects including client acquisition, operating efficiency and cost efficiency for a quarter. However, despite market uncertainties, the Group still achieved year-on-year and sequential growth in the half-year revenue in the first half of 2022 and maintained business profitability. This is mainly attributable to the long-term resilience of our excellent clientele, the commercial applications of our continuously developing technology and accumulated data, and the incremental improvement of the commercial service system.
During 1H22, our gross billing increased by 2.71% year-on-year and 17.19% sequentially to RMB3.601 billion. The total half-year revenue amounted to RMB1.618 billion, representing a year-on-year increase of 3.02% and a sequential increase of 4.27%. We delivered a gross profit of RMB97.50 million, sequentially up 40.50%. Net profit and adjusted net profit amounted to RMB62.19 million and RMB72.46 million respectively, sequentially increasing by 3.72 times and 1.72 times respectively.
Industry-leading, platformized technology enabled the continual optimisation of the online marketing solutions business
During the first half of the year, the Group’s core business of online marketing solutions business maintained a steady and healthy development regardless of the challenging market environment. Leveraging our industry-leading capability of large-scale, data-driven short-video production, our monthly video production capacity reached over 21,400 videos, setting a new record and representing a year-on-year increase of 19.03%. Our full-time video production team was able to produce more than 274 videos per person every month, representing a year-on-year increase of 159.43%. Meanwhile, the Group’s self-developed commercial video matchmaking and trading platform “hepai.video” connected 712 individual and institutional video creators with our short-video service ecosystem, further enhancing the scale and automation level of our content production. As of June 30, 2022, the short videos delivered and programmatically distributed by the Group had accumulated over 956.4 billion impressions and over 282.8 billion video views.
The Group has further tightened the direct cooperation with the top five short-video platforms in the market of mainland China. At the same time, the Group also formulated in-depth business collaboration with leading content distribution platforms such as Alibaba Group and RED to achieve comprehensive coverage in the short-video media and channel market. Based on the Company’s high industrial technical edge and strong media network, the number of advertisers served by the Group in the first half of 2022 increased to 574 advertisers, and the average gross billing per advertiser exceeded RMB6.27 million. The Group also further balanced its clientele structure, covering multiple vertical sectors, including online gaming, internet services, financial services, e-commerce, culture & media, etc.
Continuously Improved SaaS capabilities to empower all-sized business clients
The Group continued investing technology-wise in the SaaS service brand “Tradeplus”, upgrading it with several commercial solutions for large-sized enterprise clients and small and medium-sized business (SMB) clients.
For SMB clients, the Group launched a SMB-tailored SaaS-based one-stop marketing cloud product in the first quarter of 2022 to help SMBs manage the full marketing chain, including the establishment of corporate account on short-video platforms, the AI short-video generation, the automated content delivery, and the automated user track and engagement. Once introduced, our SMB-tailored product, as a pioneering solution in the industry, has been recommended by Qunfeng Service Market (群峰服務市場) and listed on the homepage of its official website. As of June 30, 2022, 1,995 SMB clients subscribed for our SaaS service through the distribution network.
Meanwhile, the Group’s SaaS solutions for large-sized enterprise clients have been continuously upgraded, including the one-stop cross-platform programmatic advertising and data management platform “Longhills (連山智投)” and the cross-platform self-account management platform “Tianji (天璣)” that was launched during 1H22. In particular, “Longhills” improves clients’ large-scale management ability by enabling cross-platform intelligent advertising and optimizes their advertising performance by enhancing algorithm technologies including attribution modelling. “Tianji” facilitates clients to perform efficient cross-platform and account self-management and collaboration by providing features of data overview, account statement, self-recharge and transfer and so on, and is gradually expanding its target users to medium-sized businesses. These new products and functions further reinforced the product matrix and service capability of the Group’s SaaS service and provided a stable and effective infrastructure for increasing the client number and improving the efficiency of synergistic network. During the first half year of 2022, our SaaS service business generated a total subscription contract value of RMB22.60 million, making continuous contribution to the Group’s business expansion.
Accelerated the expansion of the diversified business landscape to form additional growth curves
Leveraging our industry-leading short-video marketing technical capabilities and professional services, the Group continued making strategic expansion in multiple business fields, such as brand live-streaming operations, maker economy and local lifestyle, to further deepen our client relationship. For example, the Group’s brand live-streaming operation business provided clients one-stop services covering short-video content creation, target advertising, live-streaming planning and operation and data management and analysis. We generated an effective gross merchandise volume (the “effective GMV”) of RMB 90.81 million during 1H22, higher than the effective GMV of RMB 72.93 million in 2021.
In the meantime, the Group’s internationalization strategy was implemented in an orderly manner. We have formed the content and business cooperation with the top short-video platform in the overseas market and generated the revenue correspondingly during the first half year of this year. Additionally, through the strategic cooperation with WOTOKOL Network which we invested in, the Group has facilitated domestic enterprises to go global and seize the opportunity in the overseas short-video market, accelerating the internationalization of the Group’s marketing business.
Business Outlook
Looking ahead, the Group will continue upgrading the technology platformization to strengthen our R&D and applicability of the latest digital technologies. Also, we will optimise our short-video technology ecosystem through closely following the trends of the Internet industry and the short-video industry, as well as further deepening cooperation with media channels. Furthermore, the Group will remain attentive of new growth opportunities in the domestic and overseas short-video marketing industry, actively seek out more diversified business forms, and cooperate with strategic partners to provide enterprise clients with a globalized, high-quality technology and service offerings.
This press release is for reference only. The official results announcement shall prevail in case of any discrepancies.
