Mar 29, 2021

HONG KONG, Mar 29, 2021 - (ACN Newswire) - WANKA ONLINE INC. (Stock Code: 1762.HK) announced the consolidated annual results for the year ended 31 December 2020 (the "Reporting Period") on 26 March. Despite the harsh environment affected by the COVID-19 epidemic, WANKA ONLINE stand with the participants of Android ecology, the Company is concerned about the health of the Android ecological environment all the time, and through constant investment in research and development to improve and enhance the professional ability and level, so that the Company can maintain a level of commitment. During the reporting period, WANKA ONLIE recorded a revenue of RMB1,726.75 million. The gross profit, operating profit and profit for the year attributable to owners of the parent of WANKA ONLINE were RMB242.75 million, RMB95.12 million and RMB66.81million respectively. In 2020, WANKA ONLINE strengthened its relationship with Chinese mobile phone manufacturers and mobile distribution channel providers by actively deepening and diversifying its cooperation, which in turn provided them with quality mobile internet contents on a continuous basis. While deepening its existing partnerships, the Company also continued to explore new partnership opportunities by leveraging its excellent placement efficiency. In respect of industrial customers, the Company strengthened its risk control management in response to the pandemic impacts by adopting a much more prudent approach to screen potential quality customers, tracking the promotion scale and repayment conditions of small and medium-sized new customers, and maintaining ongoing communication with existing customers so as to ensure the safety and stability of its main business operation. Due to the pandemic impact, customers across a spectrum of industries generally reduced their marketing budgets, and the demand for mobile distribution slowed down, which has led to a year-on-year decrease in the Company's mobile distribution. During 2020, revenue from its mobile advertising service amounted to RMB1,663.6 million, representing a decrease of 26.9%, while revenue from its online-video distribution services and game co-publishing services in 2020 amounted to RMB55.4 million and RMB7.8 million, respectively. As at 31 December 2020, WANKA ONLINE had co-published 26 mobile games in China. In line with the stabilizing pandemic conditions and improving economic conditions in 2021, however, the Company expect the demand for mobile distribution and placement will grow, resulting in an upward trend of the mobile distribution industry. In addition, based on the close relationship with mobile phone manufacturers, WANKA ONLINE continues to help mobile phone manufacturers to build value-added mobile Internet services, help developers to realize monetization, and expand new sources of traffic channels. In order to comply with the trend of video, WANKA ONLINE has built video business around mobile phone manufacturers. With the popularity of 5G mobile phones, the business of this sector is expected to accelerate growth. The DAPG platform represents its key instrument to connect with a wide range of Android mobile internet participants with efficient placement services. Despite the challenging environment, the Company will be committed to its continued investments in the research and development on the DAPG platform for the purposes of continuous update at any moment, and as a result of which it is expect to continue to develop new technologies, which will enable the Company to remain as the leader of the fast-moving mobile internet market and provide more accurate placement services. During the Reporting Period, the research and development expenses increased by 61.9% to RMB73.5 million. In light of the accumulated data and experience derived from the DAPG platform's outstanding placement efficiency, the DAPG platform has multi-dimensional scalability, providing customized distribution services to different presentation methods in more industry sectors. In 2020, WANKA ONLINE developed functional modules that support innovative forms of placements such as interactive videos and interactive games, and the Company will expand the DAPG platform to cover more areas based on partnership requirements and market opportunities. WANKA ONLINE have provided various support and carried out layout around the Quick App ecosystem. In order to capitalize on the opportunities presented by the widely use of 5G technology. In 2020, Quick App has been launched in more than 170 countries and regions around the world, with more than 500 million monthly active users and more than 4 billion monthly users. Based on the Quick App technology, the Company promoted the cooperation in the area of Internet of Vehicles and launched the SaaS products in a timely manner, which provided a starting point for its strategic layout in the 5G era and allowed the Company to gain valuable experience. WANKA ONLINE believe that Quick App, as an excellent connection medium, can enable more traditional industries to become participants in the Android ecosystem. Despite the impact of the pandemic and the international situation, the Company continued to explore and lay out its network in overseas markets. In 2020, WANKA ONLINE accumulated extensive experience in the distribution and operation of mobile games overseas through the distribution of its self-developed mobile games in Hong Kong, Macau, Taiwan and overseas countries. The Company's mobile games also attracted positive response. In the future, with less uncertainties on and the gradual popularization of 5G technology, Chinese mobile phones and Quick Apps around the world, the Company will carry out more business cooperation overseas. Gao Dinan, the Chairman of WANKA ONLINE said, "Although the pandemic remains one of the factors of instability in 2021, we are confident that we will gradually get the business back on track in the coming year with the experience accumulated in 2020 and our robust business chain as a result of enhanced management as well as the recovery and continued growth of mobile distribution market. We will also continue to deepen our cooperative relationship with the upstream and downstream partners of the business chain. While ensuring the stable development of our existing business, we will endeavor to explore new businesses in synergy with our principal business, give full play to the scalability of the DAPG platform and expand more new markets with the potential of mobile Internet. Focusing on 'connectivity', in the field of Quick App, we will place emphasis on the traffic, development and user development. We will also continue to explore potential cooperation opportunities to make Quick App an important medium of artificial intelligence and Internet of Things in the 5G era." Topic: Press release summary