Activation Group (9919.HK) 2021 Full-Year Results Reach Record High | Taiwan News
Net profit increased significantly by 307.1% year-on-year to approx. 102.6 million RMB
HIGHLIGHTS OF RESULTS (as of December 31, 2021)
- Revenue grew 97.4% year-on-year to approximately RMB 904.1 million.
- Net profit increased 307.1% year-on-year to approximately RMB 102.6 million; and profit attributable to owners of the company was approximately RMB 92.5 million.
- Basic earnings per share of 12.51 RMB cents
- Gross profit margin decreased from 28.8% in fiscal year 2020 to 29.6% in fiscal year 2021
- Net profit margin increased from 5.5% in fiscal year 2020 to 11.3% in fiscal year 2021
- The Group continues to have a strong financial position with a cash and cash equivalent balance of approximately RMB 405.8 million as of December 31, 2021 (December 31, 2020: RMB 302.9 million).
HONG KONG SAR – Media outreach – March 7, 2022 – A leading interactive data performance marketing group for pan-fashion brands in Greater China, Activation Group Holdings Limited (“Activation” or the “Company”, collectively, the “Group”, stock code: 9919), today announced record 2021 full-year results for the fiscal year ended December 31, 2021 (“FY2021”). Propelled by its successful strategic upgrade to a pan-fashion brand data interactive marketing group, the opportunities created by the strong growth of the Chinese luxury market and accelerating digitalization continue to fuel profitability increases at long-term and sustainable Group.
During the period under review, Group sales increased by 97.4% year-on-year (“YoY”) YoY to approx. RMB 904.1 million and net profit up 307.1% year-on-year to approx. 102.6 million RMB. Net profit margin was 11.3%, representing a year-on-year increase of 5.8 percentage points. Profit attributable to shareholders of the Company was approx. 92.5 million RMB. Basic earnings per share was 12.51 RMB cents.
For the 2021 financial year, the Board of Directors has recommended the payment of a final dividend of 2.00 HK cents per share. With the interim dividend, the Group would provide a total dividend of 9.96 HK cents per share for the full year (FY2020: nil).
During the period under review, revenue for the experiential marketing business segment was c. RMB686.0 million, an increase of 120.3% from approx. 311.4 million RMB in FY2020. The Group actively promoted its interactive data marketing business in FY2021. Fashion shows and exhibitions are no longer just main events in China with a large number of on-site guests, but also online content vehicles for secondary marketing activities, creating massive online exposure through interactive data services. More than 200 offline events were held throughout FY21, including CHANEL’s first global fragrance exhibition, CARTIER’s “Trees” exhibition, CINDY CHAO’s “The Art Jewel” exhibition and the GUCCI “Aria Collection” fashion show, etc.
The turnover of the digital and communication activities was approx. RMB 201.7 million, an increase of 51.3% from approx. 133.3 million RMB in fiscal 2020. During the year, the Group formed a joint venture with Vision Entertainment to develop its live Douyin e-commerce, with promising progress after just five month. The Group’s annual GMV reached approx. 473.9 million RMB for an event with only two famous spokespersons, Zhang Li and Chen Yanfei, joining the live e-commerce. In December 2021, the Group additionally introduced three new celebrities for this business, for a total of five celebrities by the end of fiscal 2021, including Lin Xiaozhai (林小宅) and Rosamund Kwan Chi Lam.
The revenue generated from the IP development activity was approx. RMB16.3 million, up 22.6% from approx. RMB 13.3 million in fiscal year 2020. During the year, the Group signed a Memorandum of Understanding (“MOU”) with the affiliated company of Hongkong Land, planning to establish a joint venture to long-term cooperation on operating relevant sites in the West Bund Financial Hub in Xuhui District, Shanghai. In addition, the Group entered into a strategic co-creation partnership with Shanghai Design Week in February 2022, became one of the co-creation partners with government agencies and industry leaders to participate in the strategy branding and operation of Shanghai Design Week. The group, in collaboration with Shanghai Design Week, is committed to promoting Shanghai as a world-class design city, attracting high-quality global design talents and resources to create a local and international original design center .
Outlook and strategy
The Group adheres to the “content + marketing + technology” and “organic growth + external merger & acquisition + diversified innovation” development strategy. At the same time, the Group has expanded its presence in the areas of digitalization and innovation to prepare for new opportunities. Thus, the Group has invested in Velocious Technologies Inc., a leading company in metaverse and virtual reality technology in China, forming a joint venture with the subsidiary of this company, Beijing Weikuai Technology Co., Ltd. (北京為快科技有限公司) (“VeeR”), to create a new pan-fashion metaverse marketing area and provide “offline events + online data interaction + metaverse” comprehensive marketing services for brands.
The Group’s two major metaverse projects expected in 2022:
1. Creation of the LaLiga Land (西甲俱樂部元宇宙) ecosystem with the LaLiga Club: to allow football fans to access football matches and purchase related goods in the metaverse world;
2. Shanghai Design Week DesignVerse established: To provide the design industry with a design communication platform in the metaverse, meanwhile, it helps local brands to go overseas and attract foreign brands in China, promoting Shanghai as a “world-class” design hub.
Mr. Steve Lau Kam Yiu, Co-Chairman and Managing Director of Activation, said, “Going forward, our businesses will focus on interactive data marketing as the core business model. We will constantly accelerate the global layout of digitized marketing, to provide our customers with comprehensive one-stop “offline + online + metaverse” marketing service solutions, striving to be the world’s leading group of interactive pan-mode data marketing. Recently, we made a new breakthrough in IP development, and Shanghai Design Week will become one of our main growth drivers in the future. At present, Shanghai is already ranked among the best in the field of culture and creative design in China, and the total output of the creative and design industry will exceed 2 trillion RMB by 2025. , which will boost the development in China in the future. With the rapid growth of digitalization, we will accelerate our metaverse projects and actively pursue acquisition opportunities on e-commerce operating companies, expecting to close the deal during this year, creating synergy with our existing brand assets.
About Activation Group Holdings Limited
Activation Group Holdings Limited (9919.HK) was listed on the Board of Hong Kong Stock Exchange Limited on January 16, 2020, is one of the leading interactive data performance marketing groups for Pan-Fashion brands in Greater China. The Company’s core business covers experiential marketing, digital and brand communication and IP operation, including experiential marketing and public relations services, digital marketing, metaverse marketing, online e-commerce services. direct and world-class IP operation, etc. Currently, the company has accumulated more than 500 brands, and its mid to high-end experiential marketing services rank first in Greater China, claiming a 9.2% market share. All of the company’s activities are guided by interactive data performance marketing, continuously accelerating its digital capabilities to provide brands with one-stop comprehensive marketing service solutions for “offline + online + metaverse marketing”.
The issuer is solely responsible for the content of this announcement.