Luokung Technology (LKCO) Announces Preliminary Results for First Half 2021

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.

• LBS Business

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.

• EMG Business

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.

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