BEIJING, Aug. 26, 2021 /PRNewswire/ -- Luokung Technology Corp. (NASDAQ: LKCO) ("Luokung" or the "Company"), a leading spatial-temporal intelligent big data services company and provider of interactive location-based services ("LBS") and high-definition maps ("HD Maps") in China, today announced preliminary revenue results for the six months ended June 30, 2021, which remain subject to semi-annual period end closing adjustments.
Luokung achieved record total revenue for the six months ended June 30, 2021 of approximately $37.8 million, compared to $7.3 million in the prior-year period.
For the six months ended June 30, 2021, revenue from the LBS business was $31.6 million, an increase of $24.5 million, or 345.1%, from $7.1 million for the six months ended June 30, 2020. The increase was mainly due to the integration and continuous improvement of geographic information points of interest (POI), characteristic areas of interest (AOI) and other data with AI algorithms, which subsequently improved advertising conversion to meet a growing customer base and increased demand.
For the six months ended June 30, 2021, revenue from sales of remote sensing and GIS data management service platform software and services increased to $4.4 million, from $0.24 million for the six months ended June 30, 2020.
eMapgo Technology (Beijing) Co., Ltd. ("EMG"), a leading provider of navigation and electronic map services in China, contributed revenue of approximately $1.8 million during the period since the closing of its acquisition on March 17, 2021. This revenue was mainly driven by HD Map data services provided to auto makers in connection with autonomous driving.
Management Commentary
Mr. Xuesong Song, Chairman and CEO, stated, "Our continued investment in technology has resulted in what we believe is a superior portfolio of products and a competitive edge in the markets in which we operate. We are very pleased with our market growth in 2021, which has enabled us to achieve record revenues during this period, growing revenue by more than five times that of the prior-year period. We completed the acquisition of the control of EMG in March and quickly began integrating their portfolio of products and technical capabilities into Luokung. As a result, we believe we have established greater competitive advantages in smart transportation (autonomous driving, smart highway, vehicle-road collaboration), natural resource asset management (carbon neutrality and environmental protection remote sensing data service) and LBS smart industry application spatial-temporal data commercialization. We expect to build on the positive momentum of the first half of 2021 as additional business orders are executed and delivered in the remainder of the year."
Update on Financial Reporting for the Remainder of 2021
As a foreign private issuer, Luokung is required to report its results for the six months ended June 30, 2021, by December 31, 2021, according to Nasdaq Listing Rules. The Company intends to provide preliminary financial updates in the future, in addition to financial results filed or furnished with the Securities and Exchange Commission.
Luokung currently anticipates reporting its unaudited financial results for the first half of 2021 within approximately the next two months and plans to host an interim period earnings call to discuss these results and recent corporate developments.
ABOUT LUOKUNG TECHNOLOGY CORP.
Luokung Technology Corp. is a leading spatial-temporal intelligent big data services company, as well as a leading provider of LBS and HD Maps for various industries in China. Backed by its proprietary technologies and expertise in HD Maps and multi-sourced intelligent spatial-temporal big data, Luokung established city-level and industry-level holographic Spatial-temporal digital twin systems and actively serves industries including smart transportation (autonomous driving, smart highway and vehicle-road collaboration), natural resource asset management (carbon neutral and environmental protection remote sensing data service), and LBS smart industry applications (mobile Internet LBS, smart travel, smart logistics, new infrastructure, smart cities, emergency rescue ,among others). The Company routinely provides important updates on its website: https://www.luokung.com.
ABOUT EMAPGO
eMapgo, a variable interest entity of Luokung, is a leading provider of navigation and electronic map services in China, as well as a leading provider in Internet map services, geographic information system engineering and other A-level mapping qualifications. eMapgo possesses the National Class-A qualification certificates of navigable Surveying and Mapping and actively develops autonomous driving and HD Map services. For more information, please visit eMapgo's website: www.emapgo.com.cn.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Information regarding the Company's future growth prospect and the preliminary unaudited financial results contained in this press release may constitute forward-looking-information within the meaning of securities laws. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The financial estimates provided in this press release are to provide early guidance on the semi-annual financial performance of the Company and readers are cautioned that this information may not be appropriate for any other purpose. When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events including that the Company has not finished its review of the full financial positions and the Company may continue to incur net losses. The Company has assumed that the material factors referred to herein will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Other than as required under securities laws, we do not undertake to update this information at any particular time.
Forward-looking information contained in this press release, including with respect to any future growth, is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement.
CAUTION REGARDING FINANCIAL ESTIMATES
The financial estimates set forth above are based on an initial review of the Company's operations for the six months ended June 30, 2021 and are subject to change. The Company's independent registered public accounting firm has not audited, reviewed or performed any procedures with respect to the accompanying financial estimates and other data, and accordingly does not express an opinion or any other form of assurance with respect thereto. They should not be viewed as a substitute for audited financial statements prepared in accordance with generally accepted accounting principles and are not necessarily indicative of the Company's results for any future period.
CONTACT:
The Company:
Mr. Jay Yu
Chief Financial Officer
Tel: +86-10-5327-4727
Email: ir@luokung.com
Investor Relations:
Ms. Carolyne Sohn
Vice President
The Equity Group Inc.
Tel: 415-568-2255
Email: csohn@equityny.com
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