Luokung Technology Corp.

For the year ended December 31, 2021, total revenue was $145.1 million versus $18.3 million in 2020, an increase management said was driven mainly by $113.5 million of additional LBS revenue plus growth in software/services and smart transportation. Gross profit margin rose to 11.1% from 4.3% a year ago, while cost of revenue increased to $129 million and operating expenses rose to $81.7 million. Cash at December 31, 2021 was $16.4 million, up from $0.07 million at December 31, 2020. Management said it exceeded its prior goal of $100 million in revenue by 45.1%. For 2022, the company did not provide a formal revenue or EPS outlook; it said it expects Hongda Jiutong to contribute revenue in the near term, gross margin to improve over time, and R&D spending as a percentage of revenue to remain stable versus 2021.

President Dongpu Zhang framed 2021 as a foundational year and emphasized Luokung’s positioning across HD maps, IoT, autonomous driving, smart transportation, carbon neutrality, and remote sensing. He said the eMapgo acquisition was transformative and argued that Luokung is building a platform around the connection between the physical world and digital space, with smart roads and vehicle-road collaboration as a core theme. His tone was upbeat and strategic, with repeated emphasis on long-term growth potential and expanding partnerships.

CFO Jie Yu focused on the financial uplift from scale and mix. He said revenue reached $145.1 million, cost of revenue was $129 million, gross margin was 11.1% versus 4.3% in 2020, operating expense was $81.7 million, and cash ended at $16.4 million versus $0.07 million a year earlier. He attributed the margin improvement to value-added services and higher-margin smart transportation and natural resource asset management, and said R&D as a percentage of revenue should remain stable in 2022.

In Q&A, management was asked whether the Hongda Jiutong acquisition would produce revenue and what it meant strategically. Baomin Li said the deal brings both technology and existing business, should strengthen HD Maps and vehicle-to-road collaboration, and expects it to contribute revenue in 2022 with additional growth from synergies. Management was also asked about the prospects and revenue mix of natural resource asset management and smart transportation; Dongpu Zhang said software/services remain the core, that margins should rise as platform development matures, and broadly suggested profitability could improve over time, though the answer was qualitative rather than a formal percentage disclosure.