Congratulations to UJU Interactive on its Successful Listing on the Hong Kong Stock Exchange | Gaorong Ventures News

On November 8, UJU HOLDING LIMITED, one of China's largest online marketing service providers, officially listed on the Hong Kong Stock Exchange under ticker 1948, with an IPO price of HK$6.70 per share.

Founded in 2017, UJU primarily offers advertisers one-stop cross-media online marketing solutions through its media partners, with a particular focus on short video marketing. According to iResearch, UJU ranked as the second-largest online marketing service provider by total billings from online short video advertising in 2020, and was also China's second-largest provider by ad spend on online short video platforms that same year. Additionally, by total billings from e-commerce platform advertisers on online short video platforms in 2020, UJU was the largest online marketing service provider in China. Recognizing the company's rapid growth and future prospects, UJU has received investments from ByteDance, Xiaomi, and Gaorong Ventures, among others.

A Vast Market with Efficiency and Data Driving Short Video Marketing Forward

In recent years, driven by the proliferation of mobile internet devices and the rapid development of online short video platforms, the short video marketing market has grown dramatically from RMB 30.2 billion in 2018 to approximately RMB 184.6 billion in 2020, representing a compound annual growth rate of 147.3%. Looking ahead, as information technology infrastructure continues to improve and short video marketing solutions become more widespread, the market is projected to maintain rapid expansion at a 30.7% CAGR over the next five years, reaching an estimated RMB 704 billion by 2025. Ma Xiaohui, UJU's executive director and chairman, commented: "With the rapid evolution of the mobile internet industry and continuous technological advances in network infrastructure, particularly the commercialization of 5G, online short video marketing has become one of the most prevalent and important advertising formats, and we expect this market to grow substantially. Since our founding, we have keenly tracked shifts in the internet industry, focusing on the short video market from the very beginning, which has given us a leading advantage."

Robust content production capability stands as one of UJU's core competitive strengths. To date, the company maintains a professional content team of over 375 staff, including editors, copywriters, directors, and cinematographers, capable of producing more than 20,000 online short videos per month. UJU operates short video production facilities in Beijing, Shanghai, Guangzhou, and Chongqing, equipped with top-tier professional gear. In 2019, the company established an online short video research center that analyzes massive volumes of video data to study the structure, elements, copy, and consumer profiles of trending short videos, identifying patterns behind viral content to generate creative insights, innovative concepts, and proprietary techniques for its marketing solutions.

Behind the creative and operational work, UJU launched its self-developed efficiency- and performance-driven technology system, Youliang Engine, in 2020. This intelligent online short video marketing solution for placement, optimization, and management features rich analytical tools and functional modules covering production, storage, intelligent placement, analysis, optimization, and management — empowering clients on both the operational and creative fronts.

Revenue Surges as Advertiser Base Diversifies

Leveraging its strong ad performance optimization, content production output, and technological empowerment, UJU has grown rapidly. Revenue from its online marketing solutions surged from RMB 1.16 billion in 2018 to RMB 3.45 billion in 2019, and further to RMB 6.36 billion in 2020. UJU has established long-term partnerships with numerous premium media partners, including China's leading online short video platforms, social media platforms, and search engines. On the advertiser side, its client base spans diverse industries including e-commerce, internet services, automotive, fast-moving consumer goods, and leisure travel. Stable major accounts provide solid support for revenue growth. The retention rate for major clients with annual billings exceeding RMB 10 million has consistently surpassed 90%, while for those exceeding RMB 50 million, retention exceeds 95%.

Ma Xiaohui stated: "Listing on the Hong Kong Stock Exchange marks an important milestone in UJU's development. Going forward, we will continue upgrading the Youliang Engine platform with AI capabilities and SaaS technology; explore innovative and intelligent e-commerce marketing solutions through leading online short video platforms; develop and enhance our online short video content production capabilities; strengthen and expand relationships with media partners and advertisers; and pursue strategic alliances, investments, and acquisitions to integrate industry resources, actively enhance our core competitiveness, and maximize value for our shareholders and investors."

Chang Chen, founding partner of Gaorong Ventures, said: "With the arrival of the 5G era, short video represents enormous opportunity, and short video marketing is experiencing explosive growth. UJU's founding team has lived through the transitions from search marketing to feed marketing to short video marketing, possessing deep understanding and extensive experience in digital marketing. Driven by data and efficiency at its core, the company has grown into one of the fastest-growing players in the industry. We look forward to UJU continuing to lead a new era of digital marketing based on its strong operational service capabilities, content production strength, and technical expertise."