Joy Spreader Group Inc. — Interim / Quarterly Report 2021

Nov 29, 2021

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 Group Inc. 樂享集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 6988)

VOLUNTARY ANNOUNCEMENT FINANCIAL AND BUSINESS UPDATE

This announcement is made by Joy Spreader Group Inc. (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 (the “ Board ”) of directors (the “ Directors ”) of the Company wishes to provide the shareholders of the Company and potential investors with certain unaudited financial and business update of the Group for the nine months from January 1, 2021 to September 30, 2021.

Certain unaudited financial data of the Group for the nine months from January 1, 2021 to September 30, 2021, together with comparative figures for the corresponding period in 2020, are as follows:

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FINANCIAL RESULTS HIGHLIGHTS

	For the nine	months ended	Year-on-year
	September 30		changes
	2021	2020(1)	Increase/
	(Unaudited)	(Unaudited)	(decrease)
	(HK$ in	(HK$ in
	millions)	millions)
		(Restated)
Revenue	944.70	586.52	61.07%
Interactive entertainment and
other digital products marketing	750.48	536.34	39.93%
E-commerce products marketing	194.22	48.54	300.12%
Other products(2)	0.00	1.64	(100.00)%
Gross profit	331.47	170.43	94.49%
Interactive entertainment and
other digital products marketing	223.96	131.28	70.60%
E-commerce products marketing	107.51	38.83	176.87%
Other products(2)	0.00	0.32	(100.00)%

Notes:

(1) The presentation currency of the Company was changed from Renminbi to Hong Kong Dollars (“ HK$ ”) in 2020, therefore, the above financial results highlights are presented in HK$. The comparative information has been restated to reflect the change in presentation currency to HK$ accordingly.

(2) Other products mainly refer to non-performance-based marketing campaigns the Company provided to customers.

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Business data of the Group for the nine months from January 1, 2021 to September 30, 2021, together with comparative figures for the corresponding period in 2020, are as follows:

INFORMATION HIGHLIGHTS ON OPERATIONS

	As at September 30 or	As at September 30 or	As at September 30 or	Year-on-year
	for the nine months			changes
	ended September 30			Increase/
	2021		2020	(decrease)
Number of platform-based marketing
points (quantities)
Covered marketing points(1)	1,794,832	632,791		183.64%
Douyin	829,651		82,840	901.51%
WeChat official accounts	928,637	543,531		70.85%
WeChat video channels	36,544		6,420	469.22%
Active marketing points(1)	743,004	426,614		74.16%
Douyin	79,463		26,572	199.05%
WeChat official accounts	663,541	400,042		65.87%
Average turnover per active marketing point(1)
Douyin e-commerce products (HK$)	11,286.26	9,681.71		16.57%
WeChat official accounts interactive
entertainment (HK$)	4,086.51	3,253.56		25.60%
Average turnover per active marketing point (HK$)	4,856.51	3,653.93		32.91%
Matching transactions turnover
E-commerce products GMV(2)(HK$ million)	896.84		257.26	248.61%
Interactive entertainment products
turnover (HK$ million)	2,711.57	1,301.56		108.33%
Total matching transactions turnover (HK$ million)	3,608.41	1,558.82		131.48%
Number of customers and marketing products
(quantities/types)
Number of marketers	329		253	30.04%
Number of interactive entertainment and
other digital products	1,645		977	68.37%
Number of e-commerce products	358		178	101.12%
R&D investments
R&D expenditure (HK$ million)	46.84		16.22	188.78%
Number of data models (sets)	175		135	29.63%

Notes:

(1) For details of “covered marketing points”, “active marketing points” and “average turnover per active marketing point”, please refer to the sections under “Our Business” and “Our Revenue Models” in the “Interim Report 2021” of the Group;

(2) Gross Merchandise Volume (“ GMV ”).

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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 nine months ended September 30, 2021 and is not based on the financial data or other information which has been audited or reviewed by the Company’s independent auditor or the audit committee of the Company. The above 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 Group Inc. Zhu Zinan Chairman

Beijing, the PRC, November 29, 2021

As at the date of this announcement, the Board comprises Mr. Zhu Zinan, Mr. Cheng Lin, Ms. Qin Jiaxin and Mr. Sheng Shiwei as executive Directors; Mr. Hu Qingping and Mr. Hu Jiawei as nonexecutive Directors; and Mr. Xu Chong, Mr. Tang Wei, Mr. Fang Hongwei and Mr. Yap Jin Meng Bryan as independent non-executive Directors.

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