- Profitability Increased with Business Scale Expansion
- Revenue and Net Profit Maintain High Growth
Duiba Group Limited. (“Duiba Group” or the “the Group”; Stock Code:1753.HK) Duiba Group is pleased to announce the unconsolidated interim results of the Group for the six months ended 30 June 2019 (the “Reporting Period”).
Financial Highlights
For the 6 months ending 30 June 2019, the Group recorded：
– A total revenue of RMB 780.3 million, which increased 64.5% from the same period of last year.
– The revenue from interactive advertising business surged 66.6% or RMB 307.7 million from the same period of last year.
– The revenue from user management SaaS increased 225.2% or RMB 7.4 million from the same period of last year.
– The adjusted profit was RMB 126.5 million, representing a growth of 78.2% from the same period of last year.
– The adjusted net profit margin increased from 15 % to 16.2 % from the same period of last year.
– Dividends: The Board proposed an interim dividend of RMB9 cents per share for the six months ended 30 June 2019 to be paid out of the share premium of the Group, subject to the shareholders’ approval.
During the Reporting Period, the Group has achieved strong financial performance and enhanced leading position in two business segments. For the six months ended 30 June 2019, the group recorded a total revenue of RMB 780.3 million, which increased 64.5% from the same period of last year. Such increase was primarily attributed by the revenue from the group’s interactive advertising business during the Reporting Period as compared to the six months ended 30 June 2018, representing a 66.6% (RMB 307.7 million) increase to RMB 769.56 million, reflecting the increases in advertising page views and number of chargeable clicks from 5,671.8 million to 9,733.8 million and 1,776.2 million to 2,583.4 million. During the Reporting Period, mainly due to the increased number of advertisers and advertisers’ increasing spending on the Group’s interactive advertising platform. The revenue from the group’s user management SaaS platform business also recorded an increase of 225.2% (RMB 7.4 million) to RMB 10.7 million during the Reporting Period as compared to the six months ended 30 June 2018, mainly due to the increased number of paying customers.
During the Reporting Period, the Group recorded adjusted profit of RMB 126.5 million, representing a growth of 78.2% year-over-year. The Group’s adjusted net profit margin increased to 16.2% (1H2018: 15.0%) mainly due to the greater economies of scale and the improvement of management efficiency.
For the six months ended 30 June 2019, the Group recorded selling and distribution expenses of RMB 53.9 million. Meanwhile, selling and distribution expenses as a percentage of the group’s total revenue decreased to approximately 6.9%, mainly due to greater economies of scale. Administrative expenses as a percentage of the Group’s total revenue decreased to approximately 15.2%, mainly due to improvement of management efficiency.
The Board proposed an interim dividend of RMB9 cents per share for the six months ended 30 June 2019 to be paid out of the share premium of the Group, subject to the shareholders’ approval. representing approximately 48.6% of the Group’s adjusted profit for the year ended 31 December 2018 (namely, our profit for the year, adding back share-based payment, listing expenses, changes in fair value of financial liabilities at fair value through profit or loss, and finance costs).
Established in Hangzhou in 2014, the Group firstly developed the user management SaaS platform and then the interactive advertising platform as the group’s main business models.
The Group’s user management SaaS platform is designed to help businesses attract and retain online users in a cost-effective manner, by offering various fun and engaging user management tools including reward points operation tools, marketing campaign tools and check-in tools to boost mobile app user activity and participation on apps. As at 30 June 2019, the number of mobile apps registered with the Group increased to more than 16,000 (1H2018: more than 12,000), reaching more than 1.3 billion mobile app users. Meanwhile, the Group has been extending user management SaaS solutions to serve offline enterprises, the sales and marketing strategy of the group’s user management SaaS business for offline businesses is to actively explore cooperation opportunities with top brands in sectors including retailing, catering, banking and new media. Duiba Group currently cover a wide variety of different user traffic, and accumulated mainstream and high-quality customers such as large leading apps, WeChat’s public accounts and top brands in offline businesses. As at 30 June 2019, paying customers which used Duiba Group’s charged user management SaaS services increased to 568 (1H2018: 101) including 415 app developers which are online businesses and 153 offline businesses.
Interactive advertising business, as group’s another main business model, maintained high growth and continue to became the major increase motivity of the group. In 2015, the Group pioneered and launched interactive advertising business, which aggregated the traffic of different app scenarios, systematically managed content activities, and achieved large-scale monetization through advertisements, thereby achieving a win-win situation for each of the advertisers, media partners and users. During the Reporting Period, the Group’s interactive advertising business served 2,475 ultimate advertisers (either through advertising agent customers or as the group’s direct customers). The DAU grew to 29.9 million (1H2018: 16.9 million) while the MAU grew to 402.2 million (1H2018: 223.2 million). Duiba Group will continue to maintain scale advantage and efficiency of, data, algorithm and operations.
According to iResearch, the market size of user management SaaS for both online and offline business in China is expected to grow rapidly to RMB41.9 billion in 2023, representing a CAGR of 56.8% from 2018, while the market size of interactive advertising business in China is expected to grow rapidly to RMB13.5 billion in 2023, representing a CAGR of 44.5% from 2018. Both are massive and unexplored markets where Duiba Group have already gained a substantial head start.
Looking forward to the future, as the leader and pioneer in user management SaaS business and interactive advertising business in the PRC, Duiba Group will continue to utilize the group’s professionalism and commitment to comprehensively bolster service standards and quality. The Group will help more enterprises in user acquisition, retention and monetization. The Group are also committed to retaining the leading position in user management SaaS and interactive advertising technology in China.
About Duiba Group Limited (1753.HK)
Duiba Group Limited (“the Group”) is a leader and pioneer in user management SaaS business and interactive advertising business in the PRC, the mission is to provide Full-cycle service to help more enterprises in user acquisition, retention and monetization. This unique business model together with strong synergies between user management SaaS platform and interactive advertising platform laid a solid foundation to capture rapid and sustainable growth for Duiba Group Limited. The Group’s user management SaaS platform offers various fun and engaging user management tools including reward points operation tools, marketing campaign tools and check-in tools to boost mobile app user activity and participation on apps. Interactive Advertising Business including media monetization service and advertisement serving.
Source: ACN Newswire