EXHIBIT 99.1

ZW Data Action Technologies Reports First Quarter 2022 Unaudited Financial Results

BEIJING, May 17, 2022 (GLOBE NEWSWIRE) -- ZW Data Action Technologies Inc. (Nasdaq: CNET) (the "Company"), an integrated online advertising, precision marketing, data analytics and other value-added services provider serving enterprise clients, today announced its unaudited financial results for the three months ended March 31, 2022.

Financial Highlights

• Gross profit of $0.13 million for the first quarter of 2022, compared to a gross loss of $0.72 million for the same period last year;
  
  
• Gross profit margin improved to 1.8% for the first quarter of 2022, compared to -8.5% for the same period last year;
  
  
• Working capital of $10.92 million as of March 31, 2022, compared to $11.10 million as of December 31, 2021.
  

First Quarter 2022 Financial Results

Revenues

For the first quarter of 2022, revenues decreased by $0.74 million, or 8.9%, to $7.65 million from $8.40 million for the same period last year. The decrease in revenues was primarily attributable to the decrease in revenues from our Internet advertising and related services business segment, as a result of the regional COVID-19 rebound in many provinces in China during the first quarter of fiscal 2022, which affected business of most of our small medium enterprises (“SMEs”) clients.

Cost of revenues

Total cost of revenues decreased by $1.60 million, or 17.5%, to $7.52 million for the first quarter of 2022 from $9.11 million for the same period last year. The decrease in cost of revenues was primary attributable to the decrease in costs associated with distribution of the right to use search engine marketing service we purchased from key search engines and cost related to providing Internet advertising services at our ad portals, which was in line with the decrease in the related revenues.

Gross profit (loss) and gross profit (loss) margin

Gross profit was $0.13 million for the first quarter of 2022, compared to a gross loss of $0.72 million for the same period last year, which was primarily attributable to the increase of gross margin rate of our main stream of service revenues, i.e. the distribution of the right to use search engine marketing services. Overall gross profit margin rate was 1.8% for the first quarter of 2022, compared to a gross loss margin of 8.5% for the same period last year.

Operating expenses

Sales and marketing expenses increased by $0.04 million, or 146.4%, to $0.07 million for the first quarter of 2022 from $0.03 million for the same period last year. The increase in sales and marketing expenses was mainly attributable to the increase in staff salaries, staff benefits and other general office expenses of our sales department in Guangzhou, as a result of the business development of our Guangzhou office since the fourth fiscal quarter of 2021.

General and administrative expenses increased by $0.55 million, or 55.4%, to $1.55 million for the first quarter of 2022 from $1.00 million for the same period last year. The increase in general and administrative expenses was mainly attributable to an increase in amortization of administrative assets.

Research and development expenses were $0.07 million for both the first quarter of 2022 and the same period last year. Research and development expenses remained stable between the periods.

Operating loss

Loss from operations was $1.55 million for the first quarter of 2022, compared to $1.82 million for the same period last year. Operating loss margin was 20.3% for the first quarter of 2022, compared to 21.6% for the same period last year.

Other income, net

Total other income decreased to $0.83 million for the first quarter of 2022 from $2.48 million for the same period last year. The decrease was primarily attributable to the decrease in gain from change in fair value of warrant liabilities.
   
Net income (loss) attributable to CNET and earnings (loss) per share

Net loss attributable to CNET was $0.72 million, or loss per share of $0.02, for the first quarter of 2022. This was compared to a net income attributable to CNET of $0.69 million, or earnings per share of $0.02, for the same period last year.

Financial Condition

As of March 31, 2022, the Company had cash and cash equivalents of $4.82 million, compared to $7.17 million as of December 31, 2021. Accounts receivable, net was $3.61 million as of March 31, 2022, compared to $3.44 million as of December 31, 2021. Working capital was $10.92 million as of March 31, 2022, compared to $11.10 million as of December 31, 2021.

Net cash used in operating activities was $0.89 million for the first quarter of 2022, compared to $3.71 million for the same period last year. Net cash used in investing activities was $1.46 million for the first quarter of 2022, compared to $1.87 million for the same period last year.

About ZW Data Action Technologies Inc.

Established in 2003 and headquartered in Beijing, China, ZW Data Action Technologies Inc. (the “Company”) offers online advertising, precision marketing, data analytics and other value-added services for enterprise clients. Leveraging its fully integrated services platform, proprietary database, and cutting-edge algorithms, the Company delivers customized, result-driven business solutions for small and medium-sized enterprise clients in China. The Company also develops blockchain and artificial intelligence enabled web/mobile applications and software solutions for clients. More information about the Company can be found at: http://www.zdat.com/.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of ZW Data Action Technologies Inc., which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including business uncertainties relating to government regulation of our industry, market demand, reliance on key personnel, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on ZW Data Action Technologies Inc.’s current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting ZW Data Action Technologies Inc. will be those anticipated by ZW Data Action Technologies Inc. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. ZW Data Action Technologies Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

For more information, please contact:

Sherry Zheng        
Weitian Group LLC
Email: shunyu.zheng@weitian-ir.com
Phone: +1 718-213-7386

ZW DATA ACTION TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
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*All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets.

ZW DATA ACTION TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
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ZW DATA ACTION TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
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