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• Activation Announces 2020 Interim Results

Sabtu, 29 Agustus 2020 14:59:00

Activation Announces 2020 Interim Results

Actively Developing Digitalized Business and Investing in Pan-cultural Sector to Capture Market Opportunities in Post-pandemic Era
HONG KONG,  - 27 August, 2020 - Activation Group Holdings Limited ("Activation" or the "Company", which together with its subsidiaries, is referred to as the "Group"; stock code: 9919), a provider of integrated marketing solutions in Greater China, announces its interim results for the six months ended 30 June 2020.
 
During the period under review, the China-United States trade war and the outbreak of the novel coronavirus pneumonia pandemic (COVID-19) led to a decrease in the number of engagements for brand events, weighing on the earnings in the first half of the year.

The Chinese government gradually loosened several pandemic prevention measures, including restrictions on public gatherings, activities, exhibitions, and travel in April when the disease abated. The Group's experiential marketing services and public relation services, which were significantly affected by the pandemic, have begun to recover in the second half of the year.

Meanwhile, the Group seizes opportunities on the market and has been successfully engaged by several luxury and premium brands as the experiential marketing service provider in organizing the brand events and IP intellectual property ("IP") development in the People's Republic of China ("PRC") in the second half of 2020.
 
Quick recovery in Experiential Marketing and Public Relation services
 
The Group is an experiential marketing services provider to premium and luxury brands in Greater China, providing a comprehensive range of marketing solutions for its clients. Such services include the development of a concept for an event, event planning, production and event management.

The clients can expect to achieve a desired effect on the general public and target audience alike through the brand-building and marketing projects designed, organized and managed by the Group.

After a number of pandemic prevention measures were relaxed in April, Activation has resumed holding a series of fashion events for its clients, including the Christian Dior "Designer of Dreams" Exhibition in July and the Louis Vuitton Men's Spring-Summer 2021 show in August.
 
Although the pandemic continues to rage in many countries and regions, the disease has been brought under control in mainland China by the country's effective measures. The Group expects that its clients such as premium and luxury brands will turn to the market of mainland China which has a quicker economic rebound. This will ultimately benefit the Company.
 
Actively Expanding Digitalized Business
 
The digital and brand communication business has not been affected by the pandemic, and even achieved a slight growth compared with its performance in the first half of 2019.

The revenue generated from this service increased from RMB45.4 million in the first half of 2019 to RMB47.0 million in the first half of 2020. Furthermore, some clients reallocated their budget from offline to online marketing activities., thus creating a great opportunity for the Company's digital marketing services.  (*).