BEIJING, Sept. 8, 2021 /PRNewswire/ -- Joy Spreader Group Inc. (HKG:6988, "the Group", "Joy Spreader"), a leading marketing technology company, hosted a conference call regarding its interim results for 2021 On August 31. During the meeting, the Group's management discussed several topics of importance to the industry, including personal data protection, algorithm-based recommendations and data security. The firm's data falls into three categories: product, new media content and anonymous user behavior, none of which involves the collection of users' personal information such as name and gender.
With an overall shift to an information-based society, the internet has introduced fundamental changes to daily living, initiating the growth of the digital economy while opening the door to an avalanche of unprecedented issues around unauthorized collection of data, fraudulent transactions and abuse of personal information.
Against this backdrop, China has officially established a data governance framework centered around a trio of laws that came into effect on August 20, 2021: the Network Security Law, the Data Security Law and the Personal Information Protection Law. The framework ensures information security in the digital world while helping promote the long-term, healthy growth of the digital economy, including the mobile new media performance-based marketing sector.
The Chinese government's increased regulatory efforts to ensure data security and protect personal information are expected to reduce uncertainties about the growth of the digital economy and stabilize market expectations. At the same time, the barrier to market access has been raised as a result of the government setting stricter compliance requirements for industry players. This, in turn, helps the better performing players in the industry stand out and build competiveness by virtue of their ability to remain in compliance of the new laws.
Joy Spreader, a leading marketing technology company mainly engaged in mobile new media intelligent performance-based marketing, has fully incorporated the concept of environmental, social, and corporate governance (ESG) into its operational management while ensuring compliance with the new laws.
Recently, Chinese regulators have strengthened regulations guiding algorithm-based recommendations, allowing users to opt out of algorithm-driven services and delete point of interest (POI) tags by themselves. When responding to this topic, Joy Spreader said that the company also has an interest-based recommendation mechanism, but it only involves recommendations of marketing points and products as well as recommendations to each other. The firm has not been affected by the government's heightened regulations concerning algorithm-based recommendations as its recommendation mechanism is in no way similar to mechanisms that offer interest-based content recommendations to internet users.
It is hard for internet users to avoid being influenced by fraudulent traffic and fake comments on the internet as the information has become so prevalent in daily lives. In this regard, Joy Spreader said that fraudulent traffic and fake comments are associated with the management of accounts or the fan economy, both businesses that the firm hasn't and will not become involved in.
Fake fans and comments would undermine Joy Spreader's business as they can mislead the company's algorithm models. The government's increased efforts to crack down on fraudulent traffic and fake comments are helping create a healthier new media environment, which is good news for Joy Spreader.
As for data security, Joy Spreader stated that the firm has been viewing data as a core asset from day one with an ongoing commitment to protecting it in accordance with the strictest industry standards. With multi-tier licensing and a comprehensive backup mechanism, the Group's database is securely stored on trusted cloud and on-premises server platforms. In addition, the company has strengthened its IT and internal control audits in an effort to ensure data security.
The interim financial report showed that Joy Spreader achieved revenue of HK$624 million (approx. US$79.8 million) during the first half of 2021, an increase of 62.37 per cent from the same period of the previous year.
Net profit excluding foreign exchange losses for the period also grew 102.26 per cent year on year to HK$137 million (approx. US$17.5 million). Joy Spreader uses a cost-per-sale (CPS) approach as its main revenue model. During the first half of the year, CPS-based revenue accounted for 92.71 per cent of the Group's total. With a high barrier to entry, the CPS approach requires accumulation of sufficient real data that spans a meaningful period of time while relying on investment into research and development over the long-term as well as continued optimization of the algorithms. The strong performance that led to the firm's excellent interim results has demonstrated the role of compliance with all rules concerning data algorithms in boosting the growth of the business.
Going forward, Joy Spreader plans to fulfill its responsibilities as an industry leader by strengthening awareness of the importance compliance across the organization while implementing measures that ensure that the firm is always in compliance with existing regulations. By doing so, the firm expects to lead the industry in terms of data security and information protection by leveraging its extensive experience with the secure use of data, promoting the stable growth of the industry.
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