Duiba Group Limited Announces 2019 Annual Results

HONG KONG, Mar 31, 2020 – (ACN Newswire) – Duiba Group Limited,(the “Company” and together with its subsidiaries, the “Group”; Stock Code:1753.HK) China’s leading user management SaaS provider for online businesses and pioneer of the interactive advertising platform operator, is pleased to announce the audited consolidated annual results of the Group for the year ended 31 December 2019 (the “Reporting Period”).

Financial Highlight:
For the 12 months ending 31 December 2019, the Group recorded:
– A total revenue of approximately RMB 1.65 billion, with an increase of approximately 45% YoY.
– The adjusted profit was approximately RMB 340.0 million, representing a growth of approximately 66% YoY.
– The adjusted net profit margin increased from 18.0% in 2018 to 20.6%.
– The revenue from interactive advertising business surged by approximately 45.7% to RMB 1.62 billion YoY.
– The revenue from user management SaaS increased significantly by approximately 146.4% to RMB 33.7 million YoY.

For the year ended 31 December 2019, the Group recorded a total revenue of RMB 1.65 billion (2018: RMB 1.14 billion), with an increase of approximately 45% from 2018. The adjusted profit of the Group was approximately RMB 340 million (2018: RMB205 million), representing a growth of approximately 66%. Meanwhile, the Group’s adjusted net profit margin increased to 20.6% (2018:18.0%).

The adjusted profit is the addition of share-based payments, listing expenses, changes in the fair value of financial liabilities measured at fair value and recorded in profit and loss, and financing costs.

The increase of the Group’s total revenue was primarily attributed by the growth in the revenue from
the Group’s interactive advertising business during the year ended 31 December 2019, surged by approximately 45.7% to RMB1.62 billion (2018: RMB 1.11billion). 43% of the revenue was contributed by e-commerce industry and 44% of the revenue was contributed by the financial industry. As at 31 December 2019, 90% of the Group’s interactive advertising platform’s audience came from non-tier-one-cities. Currently, advertisers such as financial enterprises and e-commerce platforms with increased penetration to lower tier cities will increase their spending on interactive advertisement, which will be a key driver for the Group’s growth in coming years.

As at 31 December 2019, the Group designed more than 14,000 advertising campaigns, most of which were the first-of-their-kind on the market. During the year ended 31 December 2019, the average revenue per chargeable click under the CPC model of the Group’s interactive advertising platform increased to RMB0.37 (2018: RMB0.35) while the average CTR (click-through rate) of the Group’s interactive advertising business reached 27.1% (2018: 26.3%) through the Group’s continuing efforts to upgrade products and technology.

As at 31 December 2019, the Group further facilitated the monetization of user traffic generated from the SaaS business, the revenue generated from the Group’s user management SaaS business increased significantly by approximately 146.4% to RMB 33.7million (2018: RMB13.7 million), which mainly due to the increasing number of contracted and renewed customers and the increased unit price. As at 31 December 2019, paying customers which used the Group’s charged user management SaaS services increased to 645 (2018: 373) including 376 app developers which are online businesses and 269 offline businesses. The number of newly signed contracts (including renewed contracts) for the Group’s user management SaaS business reached 649 in 2019 (2018:378). The total value of newly signed contracts (including renewed contracts) in 2019 was approximately RMB43.4 million (2018: approximately RMB9.8 million).

The sales and marketing strategy of the Group’s user management SaaS business for offline businesses is to actively explore cooperation opportunities with top brands in sectors including retailing, catering, banking and new media. In 2019, we made breakthroughs in expanding the Group’s banking customer base. Among the ten contracts with the highest contract value of the newly signed contracts (including renewed contracts) in 2019, the customers of eight contracts were banking customers. The total number and the total value of the newly signed contracts (including renewed contracts) with banking customers in 2019 was 65 (2018: 5) and RMB9.7 million (2018: RMB0.7 million) respectively.

The Group covers a wide variety of different user traffic, and have accumulated certain mainstream and high-quality customers such as large leading apps, WeChat’s public accounts and top brands in offline businesses. These businesses have a large user base and demand for user management SaaS services, and we believe they present a great untapped potential.

For the year ended 31 December 2019, the Group’s net cash inflow generated from operating activities
was RMB 241.0million (2018: net cash outflow RMB7.4 million), net cash outflow used in investing activities was RMB 625.7 million (2018: RMB231.1 million) representing an increase of 170.6% compared with 2018, primarily due to the purchases of financial assets at fair value through profit or loss at the amount of RMB 3,065.9 million (2018: RMB1,564.0 million). The Group’s net cash inflow generated from financing activities was RMB 304.4million (2018: RMB403.6 million), primarily due to the proceeds from issue of Shares.

During the year ended 31 December 2019, the Group continued to increase investment in research and development. As at 31 December 2019, the number of employees from the Group’s research and development department was 363, accounted for 52.4% of the Group’s total employees, which resulted in a 20% increase in the Group’s research and development expenses from RMB88.8 million in 2018 to RMB106.6 million in 2019. In order to improve and optimize the algorithms, the Group launched new technologies called “Feng Huo Tai” and “Ba Gua Tai”. “Feng Huo Tai” has highly advanced real-time data analysis ability and instant and precise audience targeting ability, meanwhile, “Ba Gua Tai” has significantly improved the efficiency of new products tests in the research and development process.

Mr. Chen Xiaoliang, Chairman of the Board stated: “Our vision is to become a company which can represent the industry in the industrial internet era in the next five to ten years, and truly help enterprises improve their efficiency through our products and services. We deeply understand that “right direction”, “long-term perspective” and “persistence” are required for achieving a great cause. Duiba is a very young company with a team full of enthusiasm. Despite many challenges faced in the past years, we have braved difficulties and have achieved good growth in overcoming them.”

About Duiba Group Limited (1753.HK)
Duiba Group Limited (“the Group”) is a leader and pioneer in user management SaaS business and interactive advertising business in the PRC, the mission is to provide Full-cycle service to help more enterprises in user acquisition, retention and monetization. This unique business model together with strong synergies between user management SaaS platform and interactive advertising platform laid a solid foundation to capture rapid and sustainable growth for Duiba Group Limited. The Group’s user management SaaS platform offers various fun and engaging user management tools including reward points operation tools, marketing campaign tools and check-in tools to boost mobile app user activity and participation on apps. Interactive Advertising Business including media monetization service and advertisement serving.

Copyright 2020 ACN Newswire. All rights reserved. www.acnnewswire.com

error: Content is protected !!