- Gross billing and revenue both recorded high for the first-half year
- E-commerce Services achieved over fivefold growth in GMV
- Profitability significantly recovered from the full year of 2022
(August 25, 2023 – Shanghai) Netjoy Holdings Limited (“Netjoy” 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, announced the unaudited consolidated results for the six months ended June 30, 2023 (“1H23”).
Comprehensively improved the business layout to support long-term development
In the first half of 2023, Netjoy further solidified the strength and steadily improved the businesses through continuous enhancement of platform-based technology, diverse and comprehensive media resources as well as high-quality and stable corporate clientele. By consolidating the core advantages and expanding to new business areas to establish a solid foundation for long-term development, the Group’s revenue scale was stable and the profitability rebounded significantly from last year.
During 1H23, the Group achieved a total revenue of RMB1.62 billion with a slight year-on-year growth. The gross billing reached RMB3.84 billion, representing a year-on-year increase of 6.63%. The gross profit amounted to RMB97.02 million, with a gross profit margin of 5.99%, up by 5.07 percentage points from the full year of 2022. The net profit achieved RMB31.46 million, and the net profit margin rose by 7.33 percentage points to 1.94% compared with the annual level of last year. The cash and bank balance of the Group reached RMB526 million, representing abundant cash reserves and sound financial structure.
Iteratively upgraded the platform-based technology to empower the scale and efficiency
The Group insisted to invest in the development of platform-based technology in order to fuel the business scale and efficiency. On the one hand, the Group has continuously upgraded its two self-developed technology platforms, "Tianji" and "Tradeplus". By doing so, Netjoy enabled key-account (KA) clients to achieve better short-video marketing performance with higher operating efficiency and greater autonomy of data management, leading the operating effectiveness of Netjoy to another new record with the gross billing per capita ascending by 18.76% year-on-year to RMB10.16 million during 1H23. On the other hand, the Group has launched a new version of its flagship standardized SaaS-based platform, “Yunshiyouke 3.0”, which is the integration of two original tools - “Yunshiyouke”, a short-video marketing and operation management tool, and “Qunying”, a programmatic short-video creation tool. This newly-upgraded SaaS tool can empower SMBs (small-and-medium businesses) to carry out programmatic and intelligent short-video marketing and operation. Thanks to such technical and business edges, in 1H23 the Group expanded its client base with KA advertisers increasing to 791, and newly obtained 2,556 SMB subscribers for the standardized SaaS marketing tool.
To strengthen the production capacity of creative content driven by data and technology, the Group has started to utilize the graphic and text application of AIGC and NLP technology when creating short videos. As of June 30, 2023, the monthly production capacity of the Group’s internal video production team peaked at over 21,400 videos, and per capita level increased by 31.05% to 359.
Meanwhile, the Group has been extending its creativity and productivity from short video to 3D format, by completing the establishment of VR production center and forming a strategic cooperation with a leading domestic metauniverse and AI technology company to jointly build the infrastructure of metauniverse marketing and strengthen its commercial service capabilities under the VR scenario.
Deepened the business layout in e-commerce area and penetrated to other key vertical industries
Combined with the performance-based target marketing and the brand live-streaming operation, the Group continued broadening its e-commerce services and extended its vertical coverage from consumer goods to life services. Within the short-video ecosystem, the Group has established a full-domain e-commerce service matrix, including brand live-streaming operation, KOL matching and mini-shop operation. Besides, Netjoy provided services covering other multiple media platforms, such as KOL marketing and multi-channel sales services. Overall, the Group aims to help brands achieve full-domain, multi-channel growth of their businesses.
Additionally, the Group further penetrated into the e-commerce industry chain, extending the services to various channels, strengthening advantages in certain dominant verticals and covering up and down-stream of supply and sales aspects, so as to enhance the Group’s recognition and competitiveness in the e-commerce service market.
In this June, the Group begun operating its domestic central-west center in Xi’an, which will strengthen the business resilience and long-term efficiency of the Group’s diverse business streams such as E-commerce Services. During 1H23, Netjoy provided e-commerce services to 25 domestic and international brands and achieved the effective GMV of RMB570.93 million, representing a year-on-year increase of 528.71%.
Enhanced multi-faceted media cooperation and enriched international resources
As a pioneer in the field of short-video marketing, Netjoy has become an important partner for many content distribution platforms to promote their “short videolized” development. In the first half of this year, while continuing deepenihng cooperation with domestic leading platforms such as Douyin, Kuaishou, Tencent, RED, Alibaba Group and JD Group, Netjoy started to partner with BiliBili and has become one of their only seven authorized agencies in the gaming industry in China.
With the optimized media and clientele structure as well as the comprehensive marketing services, the Group has steadily expanded the business scale and effectively improved the profitability. During 1H23, the Group gained several high-quality domestic and international clients with the total number of served advertisers up by 37.80% year-on-year to 791.
In terms of overseas expansion, Netjoy made persistent effort to enhance its edges in the global short-video market by enhancing the video production capacity in different languages and widening the overseas collaboration network. The Group has become the creative content service provider for TikTok for Business and Temu, helping build brand awareness in the global market and reach their target users efficiently.
Looking forward, the Group will continue to firmly develop under the three strategic guidances of “Platformization”, “Diversification” and “Internationalization”. Based on the core business of short-video marketing, the Group will solidify the essential competitiveness and steadily develop new business areas with great potential. The Group will actively embrace the industrial opportunities brought by AIGC and metauniverse, and build a diversified business matrix with synergistic effects. In addition, Netjoy will also proactively and selectively seek strategic cooperation or investment opportunities with outstanding companies to accelerate the development of the Group's business service ecosystem.
This press release is for reference only. The official results announcement shall prevail in case of any discrepancies.