China Literature Ltd. · HKEX:772
China Literature — FY2018 Earnings Presentation
12 slides from China Literature's earnings presentation, Mar 18, 2019
Slide 1: 2018 Annual Results
2018 Annual Results March 18, 2019
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements relating to the industry and business outlook, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basi
Slide 3: 2018 Annual Results Highlights
2018 Annual Results Highlights Increased 23.0% from RMB4.1 billion in 2017 to RMB5.0 billion Revenues (USD734.1 million1) in 2018 Gross • Increased 23.2% from RMB2.1 billion in 2017 to RMB2.6 billion (USD372.7 million) in 2018 Profit • Gross margin increased from 50.7% to 50.8% YoY Operating • Incre
Slide 4: Continued Expansion of our Ecosystem
Continued Expansion of our Ecosystem Readers Content Adaptation 213.5 mm MAUs (2) 200 Partners + New Classics Media User: top-notch user platform Content: content oriented ecosystem Adapted • Total writers increased Entertainment Products from 6.9 mm in 2017 to 7.7 mm in 2018 • Total works increased
Slide 5: Continued Expansion of our Ecosystem (con’t)
Continued Expansion of our Ecosystem (con’t) • Acquired New Classics Media to go downstream along the value chain • Co-invested TV & web released in 2018: Pretty Man, Our Glamorous Time, Martial Universe, Battle Through the Heavens, and Ever Night • Co-produced animations released in 2018: Stellar T
Slide 6: Growth Strategies
Growth Strategies 1 Systematically Attract, Nurture and Promote Writers 2 Increase the Depth of Our Content Library and Expand to New Genres 3 Drive Technological Innovation to Enhance User Experience 4 Broaden Our Multi-layer Distribution Channel 5 Strengthen IP Operations and Expand Downstream 6 E
Slide 7: Financials: Key Operating Metrics
Financials: Key Operating Metrics Average MAUs (1) Average MPUs (2) Average Monthly ARPU (3) (mm) YoY: +11.5% (mm) YoY: -2.7% (RMB) YoY: +8.1% 213.5 24.1 11.1 10.8 22.3 191.5 109.2 90.9 100.6 104.3 2017 2018 2017 2018 2017 2018 Notes: (1) Average MAU is calculated as the average of MAUs for each cal
Slide 8: Financials: Income Statement
Financials: Income Statement RMB’ 000 2017 2018 YoY Revenues 4,095,066 5,038,250 23.0% Cost of revenues (2,019,626) (2,480,271) 22.8% Gross profit 2,075,440 2,557,979 23.2% Interest income 103,787 200,817 93.5% Other gains, net 110,723 338,910 206.1% Selling and marketing expenses (965,121) (1,293,1
Slide 9: Financials: Revenue Structure
Financials: Revenue Structure Online Business Revenues Breakdown Revenues by Segment (RMB mm) YoY: +9.7% 3,828 (RMB mm) 3,490 On third-party YoY: +23.0% 5,038 platforms 663 465 952 On our self-operated 4,095 1,210 1,082 channels on Tencent products 605 1,943 2,213 On our self-owned platform products
Slide 10: Financials: Operating Expenses
Financials: Operating Expenses Selling & Marketing Expenses General & Administrative Expenses as % of total revenue, total amount in RMB mm as % of total revenue, total amount in RMB mm 23.6% 25.7% 16.7% 14.4% 1,293 726 684 965 2017 2018 2017 2018 10
Slide 11: Financials: Key Profitability Metrics
Financials: Key Profitability Metrics Gross Profit and Operating Profit and Net Profit and Gross Profit Margin Operating Profit Margin Net Profit Margin 50.7% 50.8% 15.0% 22.1% 13.7% 18.1% YoY: +23.2% YoY: +81.4% YoY: +62.1% (RMB mm) (RMB mm) (RMB mm) 2,558 1,115 912 2,075 563 615 2017 2018 2017 201
Slide 12: Thank You
— Thank You =