Recently, Shaanxi Culture Industry Investment Holdings Group Limited (“Shaanxi Culture”) has reached a strategic investment agreement with Netjoy, in which Shaanxi Culture will provide the necessary financial and other resources to support the development of Netjoy’s short drama business, together aiming for commercial success.

Shaanxi Culture is a prominent state-owned enterprise in Shaanxi Province, serving as a key player in implementing its cultural strategy and transforming it into a notable cultural province. Shaanxi Culture is also recognized as one of the most dynamic and resourceful state-owned cultural enterprises in China. On the other hand, Netjoy, being a pioneer in intelligent marketing solutions, centers its operations on short video marketing, with new ventures into e-commerce services and short dramas, all presenting significant growth opportunities.

As the Chinese short drama market continues to gain traction, there is a prevailing trend of Chinese short drama going global. This highlights the notable commercial potential in the future.

Since 2022, Netjoy has been strategically expanding its presence in the short drama industry, leveraging its robust content creation capability and in-depth marketing know-how. As of June 2024, the number of users on Netjoy’s self-operated short drama mini-program in China reached 35.8 million, progressively establishing Netjoy as a leading force in the sector. The Company has also recently launched GoodDrama, its first short drama APP for the overseas market, to further expand its international footprint.

All in all, the strategic collaboration with Shaanxi Culture is expected to further solidify Netjoy’s market position in the short drama industry, especially with the newly-added funding and resources support. Along with its strengths on content creation and production, Netjoy aims to advance the development of the short drama industry, and create mutual benefits for both parties.