BEIJING,
Aug. 26, 2021 /PRNewswire/ --
Luokung Technology Corp. (NASDAQ: LKCO) ("Luokung" or the
"Company"), a leading spatial-temporal intelligent big data
services company and provider of interactive location-based
services ("LBS") and high-definition maps ("HD Maps") in
China, today announced preliminary
revenue results for the six months ended June 30, 2021, which remain subject to
semi-annual period end closing adjustments.
Luokung achieved record total revenue for the six months ended
June 30, 2021 of approximately
$37.8 million, compared to
$7.3 million in the prior-year
period.
For the six months ended
June 30, 2021, revenue from the LBS
business was $31.6 million, an
increase of $24.5 million, or 345.1%,
from $7.1 million for the six months
ended June 30, 2020. The increase was
mainly due to the integration and continuous improvement of
geographic information points of interest (POI), characteristic
areas of interest (AOI) and other data with AI algorithms, which
subsequently improved advertising conversion to meet a growing
customer base and increased demand.
- Sales of Remote Sensing and GIS Data Management Service
Platform Software and Services
For the six months ended
June 30, 2021, revenue from sales of
remote sensing and GIS data management service platform software
and services increased to $4.4
million, from $0.24 million
for the six months ended June 30,
2020.
eMapgo Technology (Beijing) Co., Ltd. ("EMG"), a leading provider
of navigation and electronic map services in China, contributed revenue of approximately
$1.8 million during the period since
the closing of its acquisition on March 17,
2021. This revenue was mainly driven by HD Map data services
provided to auto makers in connection with autonomous
driving.
Management Commentary
Mr. Xuesong Song, Chairman and
CEO, stated, "Our continued investment in technology has resulted
in what we believe is a superior portfolio of products and a
competitive edge in the markets in which we operate. We are very
pleased with our market growth in 2021, which has enabled us to
achieve record revenues during this period, growing revenue by more
than five times that of the prior-year period. We completed the
acquisition of the control of EMG in March and quickly began
integrating their portfolio of products and technical capabilities
into Luokung. As a result, we believe we have established greater
competitive advantages in smart transportation (autonomous driving,
smart highway, vehicle-road collaboration), natural resource asset
management (carbon neutrality and environmental protection remote
sensing data service) and LBS smart industry application
spatial-temporal data commercialization. We expect to build on the
positive momentum of the first half of 2021 as additional business
orders are executed and delivered in the remainder of the
year."
Update on Financial Reporting for the Remainder of
2021
As a foreign private issuer, Luokung is required to report its
results for the six months ended June 30,
2021, by December 31, 2021,
according to Nasdaq Listing Rules. The Company intends to provide
preliminary financial updates in the future, in addition to
financial results filed or furnished with the Securities and
Exchange Commission.
Luokung currently anticipates reporting its unaudited financial
results for the first half of 2021 within approximately the next
two months and plans to host an interim period earnings call to
discuss these results and recent corporate developments.
ABOUT LUOKUNG TECHNOLOGY CORP.
Luokung Technology Corp. is a leading spatial-temporal
intelligent big data services company, as well as a leading
provider of LBS and HD Maps for various industries in China. Backed by its proprietary technologies
and expertise in HD Maps and multi-sourced intelligent
spatial-temporal big data, Luokung established city-level and
industry-level holographic Spatial-temporal digital twin systems
and actively serves industries including smart transportation
(autonomous driving, smart highway and vehicle-road collaboration),
natural resource asset management (carbon neutral and environmental
protection remote sensing data service), and LBS smart industry
applications (mobile Internet LBS, smart travel, smart logistics,
new infrastructure, smart cities, emergency rescue ,among others).
The Company routinely provides important updates on its website:
https://www.luokung.com.
ABOUT EMAPGO
eMapgo, a variable interest entity of Luokung, is a leading
provider of navigation and electronic map services in China, as well as a leading provider in
Internet map services, geographic information system engineering
and other A-level mapping qualifications. eMapgo possesses the
National Class-A qualification certificates of navigable Surveying
and Mapping and actively develops autonomous driving and HD Map
services. For more information, please visit eMapgo's website:
www.emapgo.com.cn.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Information regarding the Company's future growth prospect and
the preliminary unaudited financial results contained in this press
release may constitute forward-looking-information within the
meaning of securities laws. By their nature, forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or
achievements, or other future events, to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. The financial estimates
provided in this press release are to provide early guidance on the
semi-annual financial performance of the Company and readers are
cautioned that this information may not be appropriate for any
other purpose. When relying on the Company's forward-looking
statements and information to make decisions, investors and others
should carefully consider the foregoing factors and other
uncertainties and potential events including that the Company has
not finished its review of the full financial positions and the
Company may continue to incur net losses. The Company has assumed
that the material factors referred to herein will not cause such
forward-looking statements and information to differ materially
from actual results or events. However, there can be no assurance
that such assumptions will reflect the actual outcome of such items
or factors.
Other than as required under securities laws, we do not
undertake to update this information at any particular time.
Forward-looking information contained in this press release,
including with respect to any future growth, is based on our
current estimates, expectations and projections, which we believe
are reasonable as of the current date. The reader should not place
undue importance on forward-looking information and should not rely
upon this information as of any other date. All forward-looking
information contained in this press release is expressly qualified
in its entirety by this cautionary statement.
CAUTION REGARDING FINANCIAL ESTIMATES
The financial estimates set forth above are based on an initial
review of the Company's operations for the six months ended
June 30, 2021 and are subject to
change. The Company's independent registered public accounting firm
has not audited, reviewed or performed any procedures with respect
to the accompanying financial estimates and other data, and
accordingly does not express an opinion or any other form of
assurance with respect thereto. They should not be viewed as a
substitute for audited financial statements prepared in accordance
with generally accepted accounting principles and are not
necessarily indicative of the Company's results for any future
period.
CONTACT:
The Company:
Mr. Jay Yu
Chief Financial Officer
Tel: +86-10-5327-4727
Email: ir@luokung.com
Investor Relations:
Ms. Carolyne Sohn
Vice President
The Equity Group Inc.
Tel: 415-568-2255
Email: csohn@equityny.com
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SOURCE Luokung Technology Corp.