The Transaction Adds Momentum to the Continued Growth of Joy Spreader's Overseas Independent Station E-Commerce Business
BEIJING, June 9, 2022 /PRNewswire/ -- On June 7, Joy Spreader Group Inc. ("Joy Spreader" or the "Company") announced that it has entered into a placement and subscription agreement to raise approximately HK$600 million (approx. US$76.5 million) to further support the rapid development of its overseas independent station e-commerce business, as well as to expand the scale of the business and consolidate its market position. Goldman Sachs, the world's leading investment bank, acted as the exclusive agent for the placement.
Joy Spreader is a leader in new media performance-based marketing, providing new media traffic commercialization services both in China and abroad through digital technologies that facilitate the direct-to-consumer ("DTC") sales of their clients' products. The Company is one of the largest in China using marketing algorithm models and an intermediary platform for new media marketing businesses. Joy Spreader offers performance-based marketing services for e-commerce and interactive entertainment products on the Douyin and WeChat platforms in China, through which consumers can purchase personalized products based on their personalized content on new media platforms.
In the fourth quarter of 2021, Joy Spreader was the first in the industry to complete the commercialization of its e-commerce business on TikTok, booking revenue of HK$148 million for the quarter. In the first quarter of 2022, the Company announced revenue of HK$512 million, representing a 246% increase. Joy Spreader in concert with its partners has put in place a supply chain service system for cross-border supply of goods, overseas warehousing, local logistics, as well as offline and online payment. In order to adapt to the features of TikTok, Joy Spreader built an online independent station based on an interest-based algorithm model. The Company's business operates in several countries and regions across Southeast Asia, mainly selling consumer electronics from many leading Chinese brands.
The recent performance of Joy Spreader's share price is a testament to the capital market's expectations for the Company's overseas e-commerce business. Over the 60 days leading up to the close of trading on June 6, 2022, the share price of Joy Spreader had increased by 65.9%. The fact that Goldman Sachs, a top international investment bank, chose to act as the exclusive agent for this placement further evidences the recognition by international institutions of Joy Spreader's growth potential, especially around the commercialization of interest-based traffic on TikTok and the overseas e-commerce business of Chinese consumer electronics products.
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