Joy Spreader Group Inc. — Capital/Financing Update 2020

Dec 6, 2020

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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Joy Spreader Interactive Technology. Ltd 樂享互動有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 6988)

BUSINESS UPDATE AND FINANCIAL UPDATE

This announcement is made by Joy Spreader Interactive Technology. Ltd (the “ Company ”, together with its subsidiaries, the “ Group ”) pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of Directors of the Company (the “ Board ”) wishes to provide the shareholders and potential investors of the Company with the latest situation and progress of the Group’s business and certain unaudited financial data for the ten months ended 31 October 2020.

Business layout:

The Group’s game and mini-program business is fully accessing the Douyin platform port, providing mini-program developers, game developers, and Douyin we-media publishers with distribution and joint operation services based on data and algorithms. Douyin is a creative short-form video social application (or app) developed by Beijing ByteDance Technology Co., Ltd. (北京字節跳動科技有限公司). Douyin recently permitted the access of mini-programs and games to Android-based Douyin accounts, officially providing monetization channels to Douyin wemedia publishers through publishing mini-programs and games. Douyin we-media publishers with monetization channels for links of mini-programs or games to its webpages to realize marketing income.

Business updates:

On the traffic side, as of 31 October 2020, the Company provided content monetization services to an aggregate of 36,612 WeChat official accounts, an increase of 63.5% as compared to the number as of 31 December 2019. The number of cooperating Douyin accounts, with e-commerce purchase links and product placement, exceeded 3000. The number of we-media user traffic access points increased to 366,120.

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On the product side, as of 31 October 2020, the Company cooperated with 179 companies covering about 20 industries, an increase of 49 new companies, comparing to the number as of 31 December 2019. The number of online literature works was 858 covering 77 genres, an increase of 276 covering 10 new genres, comparing to the number as of 31 December 2019. There were 205 online games promoted, an increase of 61 new games, comparing to the number as of 31 December 2019. There were 156 categories of e-commerce products cooperated, which have expanded from electronic products to daily use chemical products and beauty products, gradually completing the development of the full product line involving people’s livelihood products.

Financial updates:

According to the unaudited consolidated management accounts of the Group, the gross profit of the Group for the ten months ended 31 October 2020 (the “ Period ”) is approximately RMB175.30 million (the “ Financial Data ”). According to the Company’s prospectus dated 10 September 2020, and the interim report published on 27 September 2020, the Group’s gross profit for the year ended 2019 and the six months ended 30 June 2020 was approximately RMB116.95 million and RMB94.51 million, respectively.

The information contained in this announcement is only based on the Board’s preliminary assessment with reference to the unaudited consolidated management accounts of the Group for the Period and is not based on any financial data or information which has been audited or reviewed by the Company’s independent auditor or the audit committee of the Board. The above Financial Data may change, therefore, the information contained in this announcement is for reference only.

Shareholders of the Company and potential investors are advised to exercise caution in dealing in the securities of the Company.

By order of the Board Joy Spreader Interactive Technology. Ltd Zhu Zinan Chairman

Beijing, the PRC, 6 December 2020

As at the date of this announcement, the Board comprises Mr. Zhu Zinan, Mr. Zhang Zhidi and Mr. Cheng Lin as executive Directors; Mr. Guo Sijia, Mr. Hu Qingping and Ms. Chen Yuanyuan as non-executive Directors; and Mr. Xu Chong, Mr. Tang Wei and Mr. Fang Hongwei as independent non-executive Directors.

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