- Netjoy records gross billing of RMB3.66 billion in 1H2024

- AIGC drives intelligent marketing business upgrade

- Gross profit of e-commerce services doubled

( August 19, 2024 - Shanghai) Netjoy Holdings Limited (“Netjoy” or “the Company”, together with its subsidiaries, “the Group”, stock code: 2131.HK), an [industry-leading intelligent marketing industry platform], today announced its interim results for the six months ended 30 June 2024 (the “Reporting Period”),

In the first half of 2024, the “new quality productive forces” represented by the artificial intelligence (“AI”) big model had driven in-depth integration of technological innovation and applications in the technological sector, and speeded up personalized, diversified, and intelligent development of digital marketing. During the Reporting Period, with a keen sense of time, the Group continued to implement its three long-term development – “Platformization”, “Diversification” and “Internationalization” – strategies. The Group  enhanced its core competitiveness with innovative technologies and creative content, laying a solid foundation for achieving sustainable development.

During the Reporting Period, the Group’s total gross billing amount remained healthy at approximately RMB3.66 billion. Total revenue reached RMB1.56 billion. Its gross profit increased by 6.68% to RMB130 million in the first half of 2024 from RMB122 million in the first half of 2023, of which, the gross profit of e-commerce service solutions increased by 107.33% year-on-year to RMB11.45 million. The Group’s gross profit margin at 8.33%, 0.82 percentage points higher year-on-year. Adjusted net profit rose 5.56% year-on-year to RMB43 million. As at 30 June 2024, the Group had cash and bank balance amounted to RMB465 million, reflective of it being cash-sufficient to support future growth and development.

During the Reporting Period, the Group continued to intensively cultivate the intelligent marketing solution sector, focusing on promoting development of its e-commerce service solution business, and strengthening the ties and interaction of its two key business segments. The Group’s innovative businesses, such as micro-short dramas, were also booming. In general, thanks to its new corporate structure, the Group is reaping diverse business synergies and achieving high-quality development, and pushing on to explore market potential.

Comprehensive upgrade of intelligent marketing technology

With the global digital economy rapidly developing and alive to the profound changes in the marketing landscape, the Group has, by applying its leading technological innovation strengths and acute market insights, markedly enhanced coverage of cooperative media and the depth of its customer service, as well as the capabilities of its cross-platform and intelligent advertising operation. During the Reporting Period, the Group executed diversified channel expansion strategy and maintained close cooperation with online media platforms such as Douyin, Kuaishou, Tencent, Xiaohongshu, Bilibili, JD.com, and also [expanded to] such high-quality traffic platforms as Youku, helping it broaden its digital marketing business presence. During the Reporting Period, it provided intelligent marketing solutions to 954 advertisers, 20.60% more than in the last corresponding period, and gross profit margin of the business increased to 5.61%, maintaining its service advantage.

Regarding AI technology upgrade, the Group strived to accelerate the application of AIGC throughout the marketing chain. By combining the advantages of leading platform technology, it has raised the level of automation and intelligence of all aspects in the marketing chain from content production to budget management. As at 30 June 2024, the Group's “Tianji (天璣)” platform had 549 corporate users, a 103.33% leap year-on-year, and the highest quarterly turnover of the platform was RMB1.22 billion. Using the platform, a user can save no less than 5,000 minutes of work in a single month. The 1,426 registered users of the Group’s proprietary AIGC products were able to produce image materials on average around 20 times more efficient and around 14 times cheaper in cost than using the previous manual production model. During the Reporting Period, the monthly production capacity of the Group’s internal video production team reached the highest of more than 784 per person, a 118.38% surge year-on-year. As at the end of the Reporting Period, the short videos it delivered and programmed had generated accumulatively more than 1,323.7 billion impressions and more than 473.8 billion views.

E-commerce drove strong growth of diversified businesses

With the digital economy driving fast industrial transformation, the Group has kept enhancing its “people, goods and fields” full-link solutions with Internet traffic ecology in mind. By integrating all marketing channels, it has enhanced social media marketing and simultaneously expanded traditional shelf e-commerce to form an advantageous omni-channel layout, realizing integrated online and offline operations for creating one-stop full-link e-commerce service solutions. During the Reporting Period, the Group recorded GMV of RMB370 million, with gross profit margin up 10.69 percentage points year-on-year to 27.50%. By optimizing and improving its integrated e-commerce business system, the Group formed competitive advantages in a number of vertical sectors, including such high-growth tracks as 3C digital, beauty and personal care, pet food, health and local life, injecting new impetus to support continuous business growth.

At the same time, the Group also actively explored innovative businesses and made breakthroughs mainly with micro-short dramas. Capitalizing on its strong creative content production capabilities and mature short video marketing and delivery system, the Group has formed a closed-loop ecological chain integrating IP creativity, content production, film release, and platform operation for its micro-short drama business. As at  the end of the Reporting Period, the micro-short drama small programs operated by the Group had 35.8 million users. During the Period, the Group actively deployed overseas markets and launched its first overseas micro-short drama APP, which is already available in Hong Kong, the United States, Singapore, Thailand, Malaysia and other countries and regions. The move not only represents an upgrade of the Group’s internationalization strategy and effort to explore new business growth drivers, but will also allow the Group to build up strength for developing the global market in the long run.

Looking ahead, the Group will continue to focus on the three core directions of “Platformization”, “Diversification” and “Internationalization”, plus build a resilient business ecosystem by integrating resources, optimizing its technical structure and expanding its business footprint. At the same time, it will continue to implement emerging technologies and optimize its digital operation capabilities, so as to consolidate its leadership in the digital marketing field and keep advancing towards the goal of becoming a competitive comprehensive digital marketing group.