Activation Group (9919.HK) 2021 Annual Results Hit a Record High
Net Profit Significantly Increased by 307.1% YoY to Approx. RMB102.6 Million
HONG KONG, Mar 08, 2022 - (ACN Newswire) - 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), has today announced record-high 2021 annual results for the year ended 31 December 2021 ("FY2021"). Powered by its successful strategic upgrade to a pan-fashion brand data interactive marketing group, opportunities created by strong growth of the domestic Chinese luxury market and accelerated digitalization continue to fuel the Group's long-term and sustainable profitability increases.
| Experiential marketing services cases |
| Douyin live streaming of Lin Xiaozhai, Zhang Li and Chen Yanfei |
| |
| |
RESULTS HIGHLIGHTS (as of 31 December 2021) -- Revenue increased by 97.4% YoY to approximately RMB904.1 million. -- Net profit increased by 307.1% YoY to approximately RMB102.6 million; and profit attributable to owners of the Company was about RMB92.5 million. -- Basic earnings per share of RMB12.51 cents -- Gross profit margin increased from 28.8% in FY2020 to 29.6% in FY2021 -- Net profit margin increased from 5.5% in FY2020 to 11.3% in FY2021 -- The Group continues to have a robust financial position with a cash and cash equivalents balance of approximately RMB405.8 million as of 31 December 2021 (31 December 2020: RMB302.9 million).
During the Period under Review, the Group's revenue was up by 97.4% year-on-year ("YoY") YoY to approx. RMB904.1 million and net profit surging by 307.1% YoY to approx. RMB102.6 million. Net profit margin was 11.3%, representing a YoY increase of 5.8 percentage points. The profit attributable to equity shareholders of the Company was approx. RMB92.5 million. The basic earnings per share were RMB12.51 cents.
For FY2021, the Board has recommended the payment of a final dividend of HK2.00 cents per share. Together with the interim dividend, the Group would provide a total dividend of HK9.96 cents per share for the whole financial year (FY2020: nil).
Business Review
During the Period under Review, revenue for the experiential marketing business segment was approx. RMB686.0 million, an increase of 120.3% from approx. RMB311.4 million in FY2020. The Group has actively promoted its interactive data marketing business in FY2021. Fashion shows and exhibitions are now not only primary events in China with a large volume of guests on-site but also as vehicles for online content for secondary marketing activities, creating massive online exposure through data interactive services. More than 200 offline events were completed throughout FY2021 including CHANEL's first global fragrance exhibition, CARTIER "Trees" Exhibition, CINDY CHAO "The Art Jewel" Exhibition, and GUCCI "Aria Collection" Fashion Show, etc.
Revenue for digital and communication business was approx. RMB201.7 million, an increase of 51.3% compared with approx. RMB133.3 million in FY2020. During the year, the Group formed a joint venture with Vision Entertainment to expand its Douyin live-streaming e-commerce, with promising progress after just five months. The Group's annual GMV has achieved approx. RMB473.9 million for an event with only two celebrity spokespersons, Zhang Li and Chen Yanfei joining live streaming e-commerce. In December 2021, the Group further introduced three new celebrities for this business, for a total of five celebrities by the end of FY2021, including Lin Xiaozhai and Rosamund Kwan Chi Lam.
Revenue generated by IP development business was approx. RMB16.3 million, up 22.6% compared with approx. RMB13.3 million in FY2020. During the year, the Group has signed a memorandum of understanding ("MOU") with Hongkong Land's affiliated company, planning to establish a joint venture for long-term cooperation on operating relevant venues in West Bund Financial Hub within Xuhui District, Shanghai. Besides, 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 branding and operation of Shanghai Design Week. The Group, together with Shanghai Design Week, is committed to promoting Shanghai as a world-class City of Design, attracting high-quality global design talent and resources to create a local and international original design center.
Outlook and Strategy
The Group adheres to the development strategy of "content + marketing + technology" and "organic growth + external merger & acquisition + diversified innovation." Meanwhile, the Group has expanded its layout in the fields of digitalization and innovation to prepare for new opportunities. Thus, the Group has invested in Velocious Technologies Inc., a leading enterprise in the metaverse and virtual reality technology in China, forming a joint venture with that company's subsidiary, Beijing Weikuai Technology Co., Ltd. ("VeeR"), to create a new field of pan-fashion metaverse marketing and provide complete "offline events + online data interaction + metaverse" marketing services for the brands.
The Group's two major metaverse projects are expected in 2022: 1. Establishment of the Laliga Land ecosystem with LaLiga Club: to enable football fans to have access to watching football matches and purchase the related merchandise in metaverse world;
2. Establishment of DesignVerse of Shanghai Design Week: to provide the design industry with a design communication platform in the metaverse, meanwhile, it helps local brands to go abroad and attract foreign brands to China, promoting Shanghai as a "world-class" design center.
Mr. Steve Lau Kam Yiu, Joint-chairman and Chief Executive Officer of Activation, said, "In the future, our businesses will focus on data interactive marketing as the core business model. We will constantly accelerate the overall digitalized marketing layout, so as to provide one-stop comprehensive "offline + online + metaverse" marketing service solutions for our clients, striving to be the world's leading pan-fashion data interactive marketing group. Recently, we have made a new breakthrough in the IP development business, and Shanghai Design Week will become one of our major growth drivers in the future. At present, Shanghai is already ranked among the top in the field of culture and creative design in China, and the total output of the creative and design industry will exceed RMB 2 trillion by 2025, which will drive the development in China in the future. With the rapid growth of digitalization, we will speed up our metaverse projects and actively look for acquisition opportunities on e-commerce operation companies, planning to close the deal within this year, aiming to create synergy with our existing brand resources."
About Activation Group Holdings Limited Activation Group Holdings Limited (9919.HK) was listed on the Main Board of The Stock Exchange of Hong Kong Limited on January 16, 2020, is a leading Interactive Data Performance Marketing Group 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 PR services, digital marketing, metaverse marketing, live streaming e-commerce services, 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% share of the market. All businesses of the Company are driven 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".
Source: Activation Group Holdings Limited Sectors: Fashion & Apparel
Copyright ©2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
Latest Release
Honda and IBM sign Memorandum of Understanding to Explore Long-term Joint Research and Development of Semiconductor Chip and Software Technologies for Future Software-Defined Vehicles May 15, 2024 14:30 JST
| Eisai Initiates Rolling Biologics License Application to US FDA for LEQEMBI (lecanemab-irmb) for Subcutaneous Maintenance Dosing for the Treatment of Early Alzheimer's Disease Under the Fast Track Status May 15, 2024 11:19 JST
| SMEIC Proposes to Acquire Shanghai Prime: A Catalyst for Developing a New Dual-Wheel Driver Pattern May 14, 2024 21:54 JST
| DENSO and Certhon Introduce Artemy, A Fully Automated Cherry Truss Tomato Harvesting Robot May 14, 2024 11:02 JST
| Supercomputer Fugaku retains first place worldwide in HPCG and Graph500 rankings May 13, 2024 18:32 JST
| Eisai's Antiepileptic Drug Fycompa Approved in China for Adjunctive Treatment of Primary Generalized Tonic-Clonic Seizures May 13, 2024 17:06 JST
| Ogier and TOYOTA GAZOO Racing triumph again May 13, 2024 14:36 JST
| Spa points haul for TOYOTA GAZOO Racing May 13, 2024 13:56 JST
| DOCOMO to Launch NTT DOCOMO GLOBAL for Global Expansion May 10, 2024 18:13 JST
| Release of "Fugaku-LLM" - a large language model trained on the supercomputer "Fugaku" May 10, 2024 12:20 JST
| Paltalk, Inc. Reports Slight Increase in Revenue and 33% Reduction in Net Loss for First Quarter 2024 May 09, 2024 20:39 JST
| Cordlife Accelerates Lab and Technical Staff Recruitment to Rebuild Foundation and Strengthen Core Processes in Singapore May 09, 2024 19:00 JST
| Honda Opens New R&D Facility in Bengaluru to Accelerate Electrification in India May 09, 2024 14:13 JST
| Fujitsu introduces "explainable AI" for use in genomic medicine and cancer treatment planning May 09, 2024 10:41 JST
| Mitsubishi Heavy Industries Increases Dividends on Back of Historically High FY2023 Results, Releases FY2024 Guidance May 08, 2024 14:27 JST
| Rome becomes the first European city to offer open loop transit payments to JCB Cardmembers May 08, 2024 12:00 JST
| NEC X Invests in Public Safety Startup Multitude Insights, Scaling AI-Powered Collaboration and Information Sharing for Law Enforcement May 08, 2024 10:24 JST
| ServiceNow and Fujitsu announce strategic commitment to launch innovative cross-industry solutions May 08, 2024 08:52 JST
| Fujitsu launches mainframe modernization automation service for the Japanese market May 07, 2024 17:53 JST
| MHI Agrees to Collaborate with Chiyoda Corporation for Licensing of CO2 Capture Technologies May 07, 2024 13:49 JST
|
More Latest Release >>
|