Innovation is the core competiveness of high-tech companies while research and development investment is often regarded as one of the key indicators for measuring the growth potential of these firms. Joy Spreader Group Inc. (HKG:6988, “the Group”, “Joy Spreader”), a leading marketing technology company listed in Hong Kong, revealing details of surging R&D investment through its interim results of 2021.
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. Gross profit (excluding foreign exchange gains or losses) for the period grew 105.15 per cent YoY to HK$214 million (approx. US$27.4 million), while net profit for the period increased 102.26 per cent YoY to HK$137 million (approx. US$17.5 million).
Joy Spreader also increased investment in data analysis and modeling of algorithms during the reporting period. R&D expenses showed a YoY gain of 712.5 per cent to HK$29.9 million (approx. US$3.73 million). With plans to expand into foreign markets, the firm is seeking to build first mover advantage and competence in technologies in the mobile media performance-based marketing sector outside of China, including e-commerce marketing and interactive entertainment, by putting substantial R&D resources into data analysis and algorithm modeling for video content on international mobile new media platforms such as TikTok.