Profitability improved significantly
Adjusted net profit reaches RMB24.96 million
Deepened AIGC technology application; Achieved business growth; E-commerce services GMV up close to 300% year-on-year
Netjoy Holdings Limited (Netjoy or the Company, together with its subsidiaries, the Group, HKG: 2131), a leading one-stop short video marketing solution platform service provider in the PRC, announced today its annual results for the year ended 31 December 2023 (the Reporting Period), reporting historical high total bill and marked increase in profitability.
Steady high-quality development Consolidating business and exploring new opportunities
In 2023, benefitting from thriving cutting-edge technologies such as AI and social media content platforms increasingly leaning towards “short video”, the content forms in various digital economic fields became more diverse and intelligent. During the Reporting Period, the Group adhered to its development strategy underscored by technologies and creativity, and effectively met the higher requirements of advertisers in digital marketing, channel diversity, and achieving precise results. In 2023, the Group fortified its results performance and saw its profitability rebound. Moreover, with leading marketing techniques and the ability to provide one-stop solutions, its businesses either grew with robust or prided strong growth momentum.
During the Reporting Period, the Group achieved healthy gross bill growth, reaching historical high at RMB 8.137 billion, 10.54% higher than the RMB7.361 billion in 2022. The compound annual growth rate (CAGR) of its gross bill between 2018 and 2023 was 38.25%. With its business layout steadily expanding and active adjustment made to the structure of its quality customer base, the Group record total revenue of RMB3.01 billion.
With efforts made to raise operational efficiency, optimize cost structure and respond with flexibility to market demand, the Group managed to markedly boost profitability. Its gross profit increased by 722.62% year-on-year to RMB 250.75 million, with gross profit margin at 8.33%, up by 7.41 percentage points year-on-year. Adjusted net profit rose 112.53% year-on-year to RMB 24.96 million, and cash and cash equivalents were RMB361 million, reflective of the Group being cash-sufficient to support operation and pursue new initiatives.
Upgrading platform technology Driving business growth of high-quality and efficiency
Short video marketing is one of the core strengths of the Group. During the Reporting Period, the Group provided customized online marketing solutions to 1,089 advertisers and gross profit margin of the business increased by 5.30 percentage points year-on-year to 5.70%. By utilizing platform systems like “Tianji” and “Tradeplus”, the Group was able to produce content in scale, ensures precise delivery, employs big data to analyze effectiveness and carry out independent budget management to meet customers’ fine demands along the short video marketing chain.
With the Group having completed interation and upgrade of “Tianji”, the number of users of the platform increased by 188.24% year-on-year to 490 during the Reporting Period, and its highest quarterly turnover continued to climb, by 18.85% year-on-year, to RMB1.324 billion. Moreover, the Group has invested more resources into research and commercialization of AIGC technology, and has used AIGC products to automatically create short video scripts, social media content and graphics, and advertising images and video materials. During the Reporting Period, the Group’s gross billing per capita increased by 16.19% year-on-year to RMB23.18 million, and the Group’s own video production team had put out the most more than 436 project items per capita in a month, 21.45% more year-on-year. The cumulative impressions generated by the Group’s programmed and delivered short videos have surpassed 1,303.7 billion, with views exceeding 468.8 billion.
Deepened close cooperation with leading platforms to foster consumer base expand
During the Reporting Period, as online marketing content has become more diverse and personalized, the Group established a high-standard virtual reality (“VR”) production base and forged strategic partnerships with leading domestic metaverse and AI technology companies. It also continued to deepen cooperation with leading content platforms such as Douyin Group, Kuaishou, Tencent, Xiaohongshu, Alibaba Group, and JD.com, and expanded its reach to new platforms such as Bilibili and Alipay. The Group also further expanded its customer base. As at the end of 2023, it served 1,089 advertisers, representing a 21.54% increase year-on-year, from industries like financial services, Internet services, online games, culture and media, e-commerce, and others, boasting a clientele with a stable and balanced structure, and heading for diversified development.
The Group also exports creative short videos to help it tap the international market. With the help of AI translation, AI avatar synthesis and other technologies, it managed to localize production of creative videos for markets such as Europe, America and Southeast Asia, empowering corporate customers to speed up advance into overseas markets and increase brand awareness. As at the end of the Reporting Period, the Group’s business covered markets with users speaking 13 foreign languages namely English, German, French, Italian, Spanish, Japanese, Korean, Thai, Portuguese, Vietnamese, Arabic, Indonesian, Malay and became partner of TikTok and Temu in commercial video creation.
Improved full-solution e-commerce service system to form vertical advantages in multiple fields
In 2023, the Group gradually improved its e-commerce service system which covers different marketing formats, including brand self-broadcasting, KOL promotion and store operations, to provide brands with complete e-commerce chain services based on the short video ecology comprising “people, goods and venues”. During the Reporting Period, the Group achieved effective gross merchandise volume (“effective GMV”) of RMB1,129.15 million, 293.13% more year-on-year. With big data analytic skills and shrewd insights of customer needs, the Group provided the short video marketing Click ID (“CID”) technical services, which facilitated seamless data linkages for e-commerce customers both within and outside the advertising placement station.
Also in 2023, the Group enhanced its e-commerce service advantages for serving such vertical industries as 3C digital, beauty and personal care, household daily cleaning, pet foods, local living, and Big Health-related products. It was able to extensively reach upstream suppliers and downstream sales terminals of the e-commerce industrial chain, expand coverage of its yet more comprehensive e-commerce service capability, as well as strengthen influence in the social media e-commerce industrial chain.
During the Reporting Period, the Group’s headquarters in Xi’an overseeing business in central and western China began operation and became its important business operation and development base. This headquarters served as a crucial base for various functions, including the Group’s research and development, video production, live e-commerce operation, short video and live broadcasting training, etc., giving the Group a better business management model and cost structure, allowing it to improve internal human resources allocation and business operational efficiency on multiple fronts.
Looking ahead at 2024, the Group is committed to advancing its major development strategies of “Platformization,” “Diversification,” and “Internationalization.” Building upon this foundation, the Group will continue to pursue R&D of and apply the latest digital technologies to power up AIGC technology, strengthen its diversified business matrix and explore new models to help it thrive on new potential-rich business tracks. To further expand its market share, the Group will also deepen its e-commerce industrial chain layout and intensify its presence in key vertical industries. In addition, it will improve international resources so as to enlarge the room for value growth in overseas markets. Moreover, the Group will seek strategic cooperation, and investment merger and acquisition opportunities, integrate upstream and downstream resources to give full play to its leading role, and seize market opportunities compatible with its capabilities and advantages, and hasten laying out and developing its high-value business ecology.
About Netjoy Holdings Limited
Founded in 2012, Netjoy Holdings Limited (Netjoy, HKG: 2131) is a leading one-stop short video marketing solutions platform provider in the PRC. The Group is committed to connecting global customers with Chinese audiences efficiently using cutting-edge marketing technology. It provides advertisers in its diverse and high-growth customer base with full-chain integrated short-video marketing services, comprising content production, programmatic and precise cross-platform advertising, real-time performance monitoring and data analytics.
With a self-developed cloud service system, Netjoy provides services, including internet services, online gaming, financial services, and e-commerce, to 29,643 advertisers in 277 vertical segments. Armed with leading technological advantages and rich industry experience, the Group has expanded its diversified business to cover new fields such as e-commerce services, cross-border brand services and the talent economy.
For more information about Netjoy Holdings Limited, please visit: www.netjoy.com