Scienjoy Holding Corporation · NASDAQ:SJ
Scienjoy — Wealthbridge Acquisition — SPAC Merger (December 2019)
38 slides from Scienjoy's SPAC merger presentation, Dec 16, 2019
Slide 1: We spread joy through science and technology
We spread joy through science and technology. INVESTOR PRESENTATION December 2019
Slide 2: Disclaimer
This investor presentation (“Investor Presentation”) is for informational purposes only and does not constitute an offer to s ell , solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of Wealthbridge Acquisition Limited (“HHHH”) or Sicenjo
Slide 3: Disclaimer: Forward-Looking Statements
03 Disclaimer Forward - Looking Statements This Investor Presentation includes “forward - looking statements” within the meaning of the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995 . Forward - looking statements can be identified by the use of words such as “fo
Slide 4: Content
Content Company Overview Growth Strategy Financial Highlights Appendix Transaction Summary
Slide 5: Transaction Summary and Pro Forma Valuation
Pro Forma Valuation Pre-Money Pro Forma 2019E Net Income Multiple 9.5x 12.4x 2020E Net Income Multiple 7.0x 9.1x Pro Forma Valuation Illustrative share price (per share) 10.15$ Shares outstanding 24,374,525$ Total Equity Value 247,401,425$ Pro Forma Net Debt (64,549,813)$ Pro Forma Enterprise Value
Slide 6: Company Overview
Company Overview
Slide 7: We Provide Online Entertainment Services Through Live Streaming
We Provide Online Entertainment Services Through Live Streaming Who Are We?
Slide 8: Current Business Model
$$ $$ Current Business Model 0 8 Value added business model (Future) Advertising (Future) $$ $$ Users Broadcasters $$ Events Community Gaming Live Streaming $$ Mobile Live Streaming
Slide 9: Scienjoy by Numbers
200 USD (2) Leading live streaming platform with growth potential in the niche market of live streaming. ARPPU (1) • Quarterly ARPPU in Q4 2018 1.72% Paying Ratio • Quarterly paying ratio in Q2 2019 14,732,240 QAU (3) • Avg. Quarterly Active Users in 2018 184,983,388 (4) # of Total Users 12,492 Quar
Slide 10: Milestones since establishment in 2011
We have launched 3 show - centric products since our establishment in 2011 and have become the leading player among the live show platforms. 2011 2012 Scienjoy established • Officially launched “Showself Live” • Completed series B financing Launched “Haixiu Live” Reached Avg. MAU 10 million June 201
Slide 11: China Has A Large Live Streaming Market
China Has A Large Live Streaming Market Source: (1) Deloitte; China Internet Network Information Center (CNNIC); Frost & Sullivan, Insight & Info Consulting; (2) Bloomberg as of September 25, 2019; Company public announcements * Note: Exchange rates for CNY:USD for 2016, 2018 and 2022 are 6.9430, 6.
Slide 12: ARPPU and Quarterly Active Users vs Peers
ARPPU – average revenue paying per user Live Streaming Industry Quarterly ARPPU, Q4 2018 (1) 12 Source: (1) Company Annual Reports and Tianfeng Securities Co ; China Merchants Securities; (2) Analysys; Note: (1) ARPPU refers to Average Revenue Per Paying User; Exchange rate for CNY:USD as at 31st De
Slide 13: User Loyalty and Commitment
User Loyalty and Commitment 13 Dreamer, 31 Medium - sized fund director Average spending: RMB 1~ 1.5 million / year Daily spending outside the busy season: RMB 50~60k / day Infinite Storm, 29 Branding d irector Average spending: RMB 200k / year Cowboy in a jet, 27 Founder of a trading company Averag
Slide 14: Monetize Psychological Needs
Monetize Psychological Needs 14 (1) Source: American Psychological Association, International Journal of Human - Computer Studies Human beings have a strong innate drive to satisfy their basic psychological needs for: We provide users with the possibility to live versatile virtual lives to satisfy b
Slide 15: Core Business Strategy
Gamified Product Design Methodology Multi - product Strategy Key Innovation Areas Visionary and Creative Team with Tech Expertise Core Business Strategy 1 5
Slide 16: Gamified Product Design Methodology
Gamified Product Design Methodology 16 Embedding Game Thinking Into Mobile Live - streaming Platform Stable Track Record Average % of users making a purchase after playing in - app games (trophies won after playing games) Data Mining • Monitoring and evaluating user activities Reward System • For us
Slide 17: Multi-product Strategy
17 Showself Live Since 2014 Multi - product Strategy Vibrant Ecosystem of Products Haixiu L ive Since 2016 Lehai L ive Since 2015 Users and Broadcasters Attract More Users and Improve User Retention Internal Cooperation Different Operating Methods
Slide 18: Key Innovation Areas
Key Innovation Areas 18 Innovation is part of our DNA. Current Applications Optimizing User Experience Strong Tech Genes Frontier Research Team Rich IP Accumulation Continue to I nnovate in Big Data, AI, AR/VR AI, AR/VR: Add - on functions in live streaming (e.g. face changing, AR effects) Big data
Slide 19: Creative Team with Strong Tech Expertise
Victor He Co - Founder & CEO Co - Founder & COO Co - Founder & EVP Bo Wan Wesley Lu Creative Team with Strong Tech Expertise Three founders have strong tech experience and deep industry understanding, while sharing a similar vision. • 19 years of IT & Internet industry experience , worked in UTStarc
Slide 20: Growth Strategy
Growth Strategy
Slide 21: We Spread Joy Through Next Generation Interactions
We Spread Joy Through Next Generation Interaction s
Slide 22: Our Path Towards Real + Virtual Second Life
Live Streaming 2.0: With VR and AI becoming the next - gen cutting - edge technology, which is unlocking the immersive “Real + Virtual” second life. Smart Communication 2 2 Our Path T owards “Real + Virtual” S econd Life 1 2G & 3G era s: C omputer terminals ( e.g. keyboard, mouse) Messaging 2G 3G In
Slide 23: Real + Virtual Second Life: VR
“Real + Virtual” Second Life 23 VR - the N ext G eneration I nteraction Live Streaming 2.0: Exciting Social Experiences Combining Real and Virtual Worlds Enhanced User Experience • Avatars in various scenes • New interactions in VR world • Live in a vibrant and immersive virtual community
Slide 24: What's Next
What’s Next 24 Mergers and Acquisitions Enter Overseas Markets Continue to Expand 2 3 4
Slide 25: Enormous Market Opportunities
Enormous Market Opportunities 25 Global Live Streaming Industry Revenues (1) Unit: Billion USD 2018 2022F 2019E 2020F 2021F 8.25 11.93 14.65 17.99 22.09 Source: (1) Frost and Sullivan; (2) Newzoo The global live streaming industry is expected to grow at a CAGR of 22.8% from 2018 to 2022, reaching $2
Slide 26: Enter Overseas Markets
• 438 Million internet users • 119 Million internet users in Brazil alone in 2018 • 74 Million internet users in Mexico alone in 2018 • 164 Million internet users in 2018 • E - commerce market size reached $8 Billion in 2017 and is expected to reach $29 Billion in 2022 • 350 Million internet users*
Slide 27: Expand Our Business Model
03. Expect to Expand O ur Business Model Advertising Value - added Services For businesses, goods and services Customized services for broadcasters and premium users In - live - streaming overlay ads Special promotion live events Brands selection – Impulse brands Banner, slide images and auto recomm
Slide 28: Tap Into Industry Potential Through M&A
04. Tap Into The Next Phase of E normous Industry Potential Through M&A 2 8 M & A To support the execution of each element of our growth strategy “Real + Virtual” Second Life Overseas Expansion Business Model Extension 1 2 3 Revenue Growth
Slide 29: Financial Highlights
Financial H ighlights
Slide 30: Revenue and Net Profit
Revenue and net profit are both projected to grow. • The second half of 2018 saw a flat revenues as a result of a commission payout policy adjustment with broadcasters. • After the successful restructuring , revenue resumed growth in 2019. Financial Highlights 30 Revenue and Net Profit 717,129 836,6
Slide 31: ARPPU and Paying Ratio
Financial Highlights 31 Unit: RMB ARPPU Paying Ratio 881 1,064 1,293 899 1,017 1,183 1,062 1,086 1,135 1,372 Q3 Q2 Q4 1,135 1,238 2018 Q1 994 2019 H1 2017 + 21% + 13% + 2% + 21% + 22% + 16% 1.49% 1.24% Q2 Q4 2018 1.10 % 1.50 % 1.26 % Q1 2017 1.02 % 1.72% 2019 H1 1.09 % 1.01% Q3 1.28 % 0.94 % 1.00 %
Slide 32: Comparable Companies Analysis
Comparable Companies Analysis 32 FY 2019E Price/Earnings Source: CapIQ , Factset , Company Reports as of 12/09/2019 12.4x 66.8x 17.8x 9.4x NM 9.1x 30.9x 12.6x 21.6x 20.4x FY 2020E Price/Earnings Average: 31.3x Discount to comps’ average: 60% Average: 21.4x Discount to comps’ average: 57%
Slide 33: Appendix
Appendix
Slide 34: Income Statement
ScienJoy Amounts in thousands of RMB and US$ * , except share and per share data or otherwise stated (US - GAAP) For the years ended December 31 For the year ended Dec 31 For the six months ended Jun 30 2016 2017 2018 2018 2019 RMB RMB US$ RMB US$ RMB RMB US$ (Unaudited) (Unaudited) (Unaudited) Net
Slide 35: Balance Sheet: Assets
ScienJoy Amounts in thousands of RMB and US$ * , except share and per share data or otherwise stated (US - GAAP) For the year s ended December 31 For the year ended Dec 31 For the six months ended Jun 30 2016 2017 2018 2019 RMB RMB US$ RMB US$ RMB US$ (Unaudited) (Unaudited) ASSETS Current assets Ca
Slide 36: Balance Sheet: Liabilities and Equity
Amounts in thousands of RMB and US$ * , except share and per share data or otherwise stated (US - GAAP) For the years ended December 31 For the year ended Dec 31 For the six months ended Jun 30 2016 2017 2018 2019 RMB RMB US$ RMB US$ RMB US$ (Unaudited) (Unaudited) LIABILITIES AND EQUITY Current lia
Slide 37: Cash Flow Statement
Amounts in thousands of RMB and US$ * , except share and per share data or otherwise stated (US - GAAP) For the years ended December 31 For the year ended Dec 31 For the six months ended Jun 30 2016 2017 2018 2018 2019 RMB RMB US$ RMB US$ RMB RMB US$ (Unaudited) (Unaudited) (Unaudited) Cash flows fr
Slide 38: Thank You
Thank You www.scienjoy.com
Wealthbridge Acquisition — SPAC Merger (December 2019) on 6ix