Activation Group Holdings Limited (Activation or the Company, collectively, the Group, HKG: 9919), a provider of integrated marketing solutions in Greater China, is pleased to announce its unaudited 2021 interim results. The Group has achieved a significant improvement, with revenue increasing substantially by approximately 436.5% to RMB385.2 million and profit to RMB38.5 million (2020 Interim: loss of RMB20.0 million). Profit attributable to owners of the Company was RMB35.5 million (2020 Interim: loss of RMB19.3 million). Basic earnings per share were RMB4.80 cents, compared with a loss per share of RMB2.47 cents in 2020 Interim.
The Board has declared the payment of an interim dividend of HK1.03 cents and an interim special dividend of HK6.93 cents for the six months ended 30 June 2021 (2020: nil).
Due to the rapid rise in luxury consumption in mainland China and the recovery of the Hong Kong market, the Group’s Experiential Service experienced exponential growth. Revenue generated from associated services has significantly increased by 1,286.5%, rising from RMB20.0 million in 2020 Interim to RMB277.3 million in 2021 Interim. Activation Events has launched numerous events, including CARTIER “Trees” Exhibition, GUCCI “Aria” Collection Launch Show, GUCCI Garden “Archetypes” Exhibition, DIOR 2021 FALL Fashion Show, CINDY CHAO “The Art Jewel” Exhibition, MERCEDES-AMG GLA 35 & GLB 35 Extraordinary Journey, etc. as well as other large-scale projects in the first half of 2021.
During the review period, the Group upgraded its original digital marketing offering to a comprehensive digital campaign offering which includes the MCN and Target Media Services. Revenue generated from such services increased by 66.2% to RMB78.3 million in 2021 Interim. With respect to public relations services, revenue generated from this segment surged by 427.0% to RMB19.5 million. During the interim report period, the group is the retainer agency of numerous brands, including MAXMARA, CLARINS, GIVENCHY BEAUTY, SK-II, TORY BURCH and LOEWE; the group has also launched quite a few digital marketing campaigns, for instance, LEGO CNY Digital Campaign, BALABALA “Boundless Dream” Campaign and DIOR 2021 J’adore Infinissime MP Project.
During the interim period, Activation organized the 2021 Criterium Ride Race in Lin-gang, Shanghai, which attracted the participation of more than 2,000 riders. The Company is planning to organize two to three more events in the second half-year. Revenue generated from this service significantly increased by 910.0% to RMB10.1 million as at 2021 Interim. Separately, the Group has signed two business cooperation agreements pertaining to its IP business, which include: (i) FISE (the world-renowned X-games league under Hurricane Group); and (ii) Jiu Shi Sports Group (one of the largest state-owned sports groups that hold the exclusive rights to Formula 1, ATP Shanghai 1000) to co-develop an IP that will be owned by both parties in China.
Mr. Steve Lau Kam Yiu, Joint-chairman and Chief Executive Officer of Activation, said, “After the impact of the pandemic in the first half of 2020, China’s economy has achieved rapid recovery and rebound, and this trend continues in 2021. As a result of economic recovery, and coupled with the impact of inflation, high-end consumption has been significantly stimulated, which has also driven the rapid growth of the luxury marketing industry. As an industry leader in the luxury experiential industry, our experiential marketing and public relations businesses have benefited greatly and achieved significant growth. The Group’s investment in digital marketing in recent years has started to bear fruits. The next step in the Group’s strategy will be to develop digital marketing technology and e-commerce and to provide all-inclusive e-commerce services. We will further improve our capabilities and teams in e-commerce operations and hope to integrate offline and online consumer data; constantly improve and amass data on consumer behavior and preferences, particularly on mid-to-high-end brand consumers; assist brands in making operational decisions; enhance the strategic value and stickiness of the Group with such brands, and ultimately, to share our profits from the incremental rise in e-commerce sales.”
Activation Group Holdings Limited is a leading Interactive Data Performance Marketing Group for Fashion Brands in Greater China, offering experiential marketing, digital and brand communication, and public relations services, digital marketing, e-commerce services as well as IP operations etc. It is the largest experiential marketing company serving luxury and trendy brands in Greater China, claiming a 7% share of the market. Its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on January 16, 2020. All businesses of the Company are driven by interactive data performance and the Company has kept accelerating the comprehensive deployment of its digital marketing capability, including setting up the MCN organization, providing effective marketing and live e-commerce services to brands, thereby build a closed-loop – marketing to sales – system.