Inkeverse Group Limited (“Inkeverse” or the “Group”; stock code: 3700.HK) has announced its interim results for the six months ended 30 June 2022 (the “Reporting Period”).
In the first half of 2022, the Group continued to intensify its expansion in the interactive entertainment and social networking sector while enriching its business scenarios to boost operational efficiency. Through its strategy of profiting from a diversified matrix, the Group realized total revenue of RMB4.0 billion. Supported by stable revenue, Excluding the impact of share-based non-cash compensation expenses and goodwill impairment losses, the Group recorded an adjusted net profit of RMB402 million, a year-on-year increase of 150.8%. The Group’s gross profit increased by 22.8% to approximately RMB17.3 billion, and the gross profit margin also increased to 42.6% from 34.9% in the same period last year, primarily due to an increase in the proportion of revenue from products under revenue-sharing businesses with high gross profit and the optimization of the revenue-sharing structure.
In particular, revenue from social networking products accounted for 69.6% of total revenue. Revenue from live streaming products and dating products accounted for 22.2% and 5.5% of total revenue respectively. The encouraging performance of these products demonstrated the effectiveness of the Group’s development strategies, which will help drive future growth.
Mr. Feng Yousheng, Chairman and Chief Executive Officer of the Group, said, “In the first half of 2022, although affected by the macroeconomic environment and short-term epidemic resurgence, we continued to refine our technologies through innovation and maintained stable and sound cash flow which provided strong support for further business expansion. Entering the new era of Web 3.0, we have drawn on our extensive operating experience and social network to continuously acquire new technologies. In June 2022, we upgraded our brand, changing its name to Inkeverse Group Limited, and announcing our entry into the metaverse market. We are poised to seize the new growth opportunities presented by the times and the industry, and strive to bring better returns to our shareholders.”
Business Review
Continuous development in live streaming
Looking at the development of live streaming thus far, it is no longer a tool in a single scenario, but a strong pillar of support facilitating the growth of other business sectors. The new metaverse era has driven the development of virtual reality and other advanced technologies. As the Group’s most mature product, “Inke” APP has innovated the traditional live streaming model with new technology. In May 2022, the Group launched “Panoramic Karaoke”, an immersive KTV function which integrates a 3D space with virtual images, creating a variety of new live streaming scenarios and continuing to empower more business segments to realize higher business value.
Refined social networking operation
The Group continued to refine the management of its existing social networking products and polished its business model, and also actively explored more diversified scenarios to keep abreast of new market trends. With social networking at the core, the Group has built a diversified product portfolio with multiple scenarios for people of different social circles, ages, geographical backgrounds, and interests, laying a solid foundation for the Group’s product development with the continuous launch of new and iterative products. In addition, the Group has been actively exploring the new ecology of metaverse social networking. Its diversified models have also helped improve the profitability of the social networking sector.
Increased dating match efficiency
The Group maintained its market acumen and developed an innovative matching and dating model. By continuously optimizing the user matching strategy, the rapid penetration of the “Cloud Matching” model has completely improved the issue of “unmatched dating information”. The Group has established its position as a leader in the online dating industry with its professional and extensive product operations and user services. In addition to providing professional relationship guidance, “Matchmakers,” has created tens of thousands of jobs in the markets of lower-tier cities and facilitated more than 25 million dating matches. In May 2022, the Group launched “Love Planet” for lovers to create a new ecology for romantic social networking. By reaching male and female users of different ages in different regions, the satisfaction and influence of our brand have been furthered enhanced.
Rapid growth of middle platform value
With the diversification of business development, the value of the Group’s middle platform has grown at an accelerated pace. In addition to stepping up investment in the metaverse, Web 3.0 and other cutting edge technologies, the Group constructed an efficient and intelligent data input system for the overseas market, upgraded the overseas multi-cloud structure and applied HTTP 3 and other technologies to improve service access quality in major countries and regions around the world, providing strong support to the overseas business expansion and development of the metaverse ecology.
Prospects
Looking ahead, the Group will focus on pan-entertainment development of overseas markets. With interactive entertainment and social networking sectors at the core, the Group will promote and replicate its operating experiences in different countries and regions, actively explore local demand and achieve breakthroughs in more markets around the world. At the same time, the Group will seize diversified development opportunities, continue to enrich and upgrade the metaverse elements in its products, quickly enter the emerging Web 3.0 sector and try to integrate frontier elements with social networking experiences to maintain profits and achieve quality growth. In addition, the Group will continue to closely monitor upstream and downstream industrial chains, take business synergies into consideration, explore business areas in line with its existing operations, expand and analyse new growth opportunities globally and create room for multi-dimensional development.
About Inkeverse Group Limited (stock code: 3700.HK)
Inkeverse (3700.HK) is a leading interactive social platform in China. In May 2015, the core product Inke APP was launched, creating the trend of domestic mobile live streaming broadcasting. Inke was listed in Hong Kong in July 2018, making it the first entertainment livestreaming enterprise on the Hong Kong Stock Exchange. Inke continues to deepen its efforts in the field of audio and video streaming. After its listing, Inke is focusing on the strategy of “matrix products” for the development layout of the Group. Based on the mature industrial mid-stage system, aiming at the needs of many vertical markets and individuals, it has successively created a number of phenomenon products such as the Jimu APP, Duiyuan APP and Super Like APP, and has rolled out a rich matrix of social products. Its business covers live broadcasting, dating and social networking. After undergoing multiple online and offline scenarios, and establishing a presence in overseas markets, it has transformed from a single product line into a matrix of products to drive performance growth. Reflecting this shift, in 2022, Inke changed its name to Inkeverse, aiming to create a multidimensional social matrix combining reality and virtual reality based on a new technology model.
Company Website: https://www.inkeverse.com/index.html
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Topic: Press release summary