DouYin ecosystem's monetization channels continue to expand and Joy Spreader (06988) will benefit as its important partner

Monday, 7 December 2020, 17:56 HKT/SGT

HONG KONG, Dec 7, 2020 - (ACN Newswire) - Based on its luxurious cornerstone investors' lineup and 1,633-time oversubscription, the IPO of Joy Spreader (06988.HK) has been known as a resounding success. Joy Spreader's share price rose by approximately 75% in the first month after listing, making it one of the most eyecatching stocks in the Hong Kong capital market.

With an increasing recognition by clients from a variety of industries, the sector of performance-based marketing campaigns is experiencing a rapid growth during recent years. As China's largest player in the market, Joy Spreader is therefore recognized because of its exuberance growth prospects and strong fundamentals.

Comparing with most single-channel marketing companies, Joy Spreader is one of the few players with cross-platform capabilities. In addition to the mainstream information platforms, such as WeChat subscription accounts, the Company is also increasing its coverage of new content platforms, such as short video and live broadcast.

According to ZhiTongCaiJing, a financial news app, DouYin, a creative short-video social application developed by Beijing ByteDance Technology Co., Ltd., recently permitted access of mini-programs and games to Android-based DouYin publisher accounts, officially providing monetization channels to DouYin we-media publishers through promoting mini-programs and games to realize marketing income.

DouYin's we-media publishers can add links to mini programs or games through the "anchor point" in the bottom left corner of their DouYin pages to generate marketing income. Mini-program users or gamers can easily add mini-programs or games to their mobile desktop and make payments through WeChat Pay or Alipay.

The launch of monetization service for mini-programs and games marked an important step forward of DouYin's ecosystem, and Joy Spreader will benefit as an important partner. Joy Spreader's game and mini-program business has been fully connected to DouYin platform, providing mini-program developers, game developers, and DouYin we-media publishers with distribution and joint operation services based on data and algorithms.

We-media plays an important role in the distribution of games and mini-programs in China market. These distribution channels in DouYin's ecosystem provide a new growth opportunity for Joy Spreader. According to the prospectus of Joy Spreader, DouYin's platform is an important and rapidly growing source of revenue for the Company. The monetization channels of mini-programs and games offered by DouYin will further enlarge the scale of Joy Spreader's business on DouYin's platform.

First and foremost, Joy Spreader has a rich experience in providing bespoke products for the target audiences of text-based or video-based we-media platforms, which gives it an advantage over its competitors in developing abundant products for DouYin publishers. As an algorithm-based and technology-driven company, the company cooperated with 179 clients in 20 industries. The products offered as of the end of October 2020 consisted of 858 online literature works covering 77 genres, and 205 online games. It also had 156 categories of e-commerce products cooperated, which had expanded from electronic products to daily-use chemical and beauty products.

Secondly, on the traffic side, Joy Spreader has extensive experience in working with internet we-media platforms. According to the latest announcement, as of October 31, 2020, the Company provided content monetization services to an aggregate of 36,612 WeChat subscription accounts and over 3,000 DouYin accounts. The number of we-media user traffic access points had increased to 366,120.

It is not difficult to expect that based on the comprehensive advantages and operational experience, Joy Spreader would gain new business achievement in short-video marketing area and deepen the cooperation with DouYin in the future. In fact, in the past few years, Joy Spreader's growth was nothing short of spectacular.

From 2017 to 2019, Joy Spreader achieved an average CAGR of 87% and 45% in revenue and net profit, respectively, and the company's performance in 2020 is expected to be stellar again. According to the company's latest announcement on December 6, 2020, the gross profit for the ten months ended October 31, 2020 was approximately RMB175 million, which equaled to approximately 1.5 times of gross profit for the full year of 2019 (RMB117 million).

Topic: Press release summary Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network