BEIJING, May 19, 2022 /PRNewswire/ -- Joy Spreader Group Inc. (HKG:6988, "the Group", "Joy Spreader"), a leading marketing technology company listed in Hong Kong, issued a voluntary announcement on May 17, 2022, detailing the establishment of the overseas e-commerce division and highlights of its performance.
As an important component of the Group's long-term development roadmap, the overseas e-commerce business has been operating within expectations since the commencement of preparatory working in early 2021, delivering significant validation of the business model in the fourth quarter of 2021 as evidenced by a new revenue record of HK$148 million (approx. US$18.8 million) for the quarter.
To maintain the momentum, Joy Spreader has continued efforts to expand its business footprint. In the first quarter of 2022, the overseas e-commerce business booked sales of HK$512 million (approx. US$65.2 million) , soaring by 245.97 per cent over the previous quarter, while sales volume grew to 420,400 units, a 290.55 per cent surge.
The overseas e-commerce business is fed by content traffic based on user recommendations from an already well-established short video new media platform in tandem with a closed-loop business ecosystem, consisting of an e-commerce platform wholly built and operated by Joy Spreader, as well as a proprietary e-commerce supply chain that integrates product sourcing, customs clearance, warehousing, logistics and payment.
To date, the overseas e-commerce business operates in several countries and regions in Southeast Asia and primarily markets several of China's well-known national consumer electronics brands. The Group is one of the first Chinese operators to successfully commercialize its product lineup on a leading overseas short video platform.
The rapid growth of the overseas e-commerce business has led the Group to implement a structural change to the business by establishing a wholly-owned subsidiary in Hong Kong SAR, Joy Spreader Interactive Group (HK) Limited, with the entity running the overseas e-commerce business.
The Group has appointed Zhang Zhidi as the head of the new subsidiary, with responsibility for the development strategy and overall operations. In October 2021, Mr. Zhang exited his former role as Joy Spreader's executive director and general manager in order to take charge of the overseas e-commerce business, including preparatory work and business development. The above reported quarterly results provide evidence of the success of the initial efforts.
The establishment of the new division enhances the Group's capabilities to seize market opportunities, capitalize on first mover advantages and create barriers to competitors. Drawing on its accumulated experience in and proven data models for algorithm-based marketing on the world's short video new media platforms, in tandem with the integration of supply chain resources and e-commerce infrastructure, the Group is on pace to further optimize its overseas e-commerce business, while, in parallel, gradually expanding operations into more emerging markets, with the goal of creating a world-class independently-operated DTC e-commerce platform for consumer electronics.
By expanding into more emerging markets and implementing the enhanced business model, Joy Spreader's overseas e-commerce business is on track to become a new and profitable growth point for the Group while, serving as a robust springboard for further development and growth.
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Source: Joy Spreader Group Inc. Related Stocks: HongKong:06988 HongKong:6988