Gelonghui March 29th 丨Doumeng Technology (01917.HK) announced that for the year ending December 31, 2022, losses and other comprehensive income attributable to company owners of the Group were RMB 54.3 million, while losses and other overall income attributable to company owners for the same period last year were RMB 109 million. The basic loss per share was RMB 0.024.

In the reporting period, total revenue decreased by 43.7% compared to the corresponding period. The main reason was that the Group's short video and live e-commerce business accounted for a relatively large amount of revenue, and the settlement model for this part of the business was to settle sales commissions with customers rather than advertising service fees. At the same time, the increase in the share of short video and live e-commerce business has also made outstanding contributions to gross profit growth, and the Group's profitability has gradually increased. During the reporting period, the Group's gross profit and gross margin were RMB 16.6 million and 32.4% respectively, up from RMB 12.3 million and 13.6% in the corresponding period.

The impact of the COVID-19 pandemic in 2019 and any adverse changes in China's economic conditions and market environment will have a major impact on advertisers' production development and marketing plans, which in turn may damage our original business and operating performance. New consumption models and new products are being formed in the market. Using existing technology and talent advantages, the company has greatly optimized its business structure and model, from a business model that helps advertisers accurately market to help brands provide full-case impact marketing services. The short video and live e-commerce business that began in the fourth quarter of 2021 was based on the Group's technical capabilities and advertiser resources in the Internet advertising and marketing industry. The development of this business achieved a phased victory during the reporting period and became the Group's main business growth point. It achieved the layout of a number of representative projects in the industry, demonstrating the Group's leading operating ability and good market response to brand customers with live streaming agency operation services based on platforms such as Douyin Kuaishou.