YEAHKA LIMITED (Yeahka), a leading Technology platform from China, announced it has reached an agreement to acquire a 42.5% additional stake in Beijing Chuangxinzhong Technology Co., Ltd. for RMB170 million. This increases its stake to 85%.
The consideration shares would form approximately 1.10% of the existing issued share capital of Yeahka as at the date of the announcement and approximately 1.08% of the enlarged issued share capital. In November 2020, Yeahka announced its initial agreement to acquire a 42.5% stake in Chuangxinzhong. The additional agreement depicts Yeahka’s commitment to develop and enhance its technology-enabled business services with great emphasis on precision marketing.
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Chuangxinzhong is one of the content performance marketing service providers in China with a large advertiser base. It provides the advertisers with comprehensive performance marketing strategies, creativity, performance monitoring and optimization services. It provides Content Delivery with audience analysis through Big Data.
The agreement ensures Chuangxinzhong’s commitment to delivering a net profit of around RMB45 million, RMB53 million and RMB62 million in the next three years respectively. With these payment services, Yeahka will reduce the cost of customer acquisition marketing service, and maximize the value of its marketing services through insights gained from merchants and consumers.
Yeahka has also launched Juliang, its Data Management Platform (“DMP”), a precision advertising platform powered by AI and machine learning. It has attracted a large amount of offline traffic from over ten offline payment-based channels, including gas stations, car parks, supermarkets and retailers, as well as colleges and universities.
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With the additional stake, both companies will expand their marketing services. The strategic partnership will further enhance the integration of their high-quality resources and unlock online and offline media resources and data.
Mr. Luke Liu, Chairman of the Board, Chief Executive Officer and Executive Director of Yeahka, remarked, “Our additional stake in Chuangxinzhong represents a critical step in the development and expansion of our precision marketing platform. Yeahka’s core investment rationale is based on extensive potential synergies and strong relationships between two parties. On one hand, the cooperation with Chuangxinzhong will rapidly expand Yeahka’s online advertising inventory and potential, which will enable Juliang to offer more effective services. The rapid expansion of customer profiles and traffic labels will further optimize Yeahka’s adverting delivery model and improve its advertising efficiency to achieve favorable marketing ROIs for advertisers. On the other hand, the extensive experience of Chuangxinzhong’s team in the advertising industry and their well-regarded capabilities in delivering precision online advertising will further strengthen overall capabilities and improve advertising creativity of Yeahka’s marketing team, enabling Yeahka to achieve more effective marketing services for digital content.”
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