Joy Spreader Group Inc. — Interim / Quarterly Report 2021

May 10, 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 Interactive Technology. Ltd 樂享互動有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 6988)

VOLUNTARY ANNOUNCEMENT FINANCIAL AND BUSINESS UPDATE

This announcement is made by Joy Spreader 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 (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 three months from January 1, 2021 to March 31, 2021.

Certain unaudited financial data of the Group for the three months from January 1, 2021 to March 31, 2021, together with comparative figures for the corresponding period in 2020, are as follows:

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FINANCIAL RESULTS HIGHLIGHTS

			Year-on-
			year changes
	As of March 31,		Increase/
	2021	2020	(decrease)
		(Restated) (1)
	(HK$ million)		(%)
Revenue	248.43	186.42	33.26%
Interactive entertainment and
other digital products marketing	219.98	174.16	26.31%
E-commerce products marketing	28.45	11.68	143.58%
Other products(2)	0.00	0.58	(100.00)%
Gross profit	77.40	47.15	64.16%
Interactive entertainment and
other digital products marketing	54.65	37.70	44.96%
E-commerce products marketing	22.76	9.34	143.68%
Other products(2)	0.00	0.11	(100.00)%

Notes:

(1) The presentation currency of the Company was changed from RMB to HK$ in 2020, therefore, the above financial results highlights are presented in HK$. The comparative information has been restated to reflect the variation arising from the change of presentation currency to HK$.

(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 three months from January 1, 2021 to March 31, 2021, together with comparative figures for the full year of 2020 or the three months ended March 31, 2020, are as follows:

INFORMATION HIGHLIGHTS ON OPERATIONS

						Increase for
						first quarter
						end of 2021
	As at	As at	As at	Quarter-on-		compared
	March 31,	March 31,	December 31,	quarter		to end of
	2021	2020	2020	increase	(%)	last year（%）
Number of customers and marketing products
(quantities/types)
Number of marketers	295	216	276	36.57%		6.88%
Number of interactive entertainment
and other digital products	1,457	838	1,320	73.87%		10.38%
Number of e-commerce products	198	109	183	81.65%		8.20%
Number of marketing SaaS services customers
(quantities)
Customers on WeChat official accounts	55,616	22,960	40,890	142.23%		36.01%
Customers of Douyin	29,828	3,268	21,771	812.73%		37.01%
Customers of WeChat video channels	11,567	-	8,763	100.00%		32.00%
Number of realizable access points	638,950	236,146	469,968	170.57%		35.96%
						Quarter-on-
		For the three		months		quarter
			ended March 31,		increase (%)
			2021	2020
Transaction data
ARPU(3)of interactive entertainment and
other digital products (HK$)			2.11	1.19		77.31%
E-commerce products GMV(4)(HK$ million)		142.25		58.40		143.58%

Notes:

(3) ARPU refers to Average Revenue Per User.

(4) GMV refers to Gross Merchandise Volume.

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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 three months ended March 31, 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 Board. 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 Interactive Technology. Ltd Zhu Zinan Chairman

Beijing, the PRC, May 10, 2021

As at the date of this announcement, the Board comprises Mr. Zhu Zinan, Mr. Zhang Zhidi, Mr. Cheng Lin, Ms. Qin Jiaxin and Mr. Sheng Shiwei as executive Directors; Mr. Hu Qingping and Mr. Hu Jiawei as non-executive 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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