China Literature Ltd. · HKEX:772
China Literature — H1 2018 Earnings Presentation
12 slides from China Literature's earnings presentation, Aug 13, 2018
Slide 1: 2018 Interim Results
2018 Interim Results August 13, 2018
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: Our mission is to create value for writers and to bring literature to people
Our mission is to create value for writers and to bring literature to people 3
Slide 4: 2018 Interim Results Highlights
2018 Interim Results Highlights Total Increased 18.6% from RMB1.9 billion in 1H17 to RMB2.3 billion Revenues (USD345.0 million1) in 1H18 Gross • Increased 24.4% from RMB1.0 billion in 1H17 to RMB1.2 billion (USD180.8 million) in 1H18 Profit • Gross margin increased from 50.0% to 52.4% YoY Operating
Slide 5: Continuous Expansion of Ecosystem
Continuous Expansion of Ecosystem Intellectual Property Operations Writers Content Adaptation Literary Works 7.3 mm (1) Partners 10.7 mm 200+ Online Reading Interactive Adapted Community Entertainment Products Readers 213.5 mm MAUs (2) Virtuous cycle driven by writers, content, reader base, and IP o
Slide 6: Our Extensive Reader Reach and Scale
Our Extensive Reader Reach and Scale Multiple Content Distribution Channels Capable of Reaching a Vast User Base Channels 4 Entertainment 1 Well-developed self-owned Market platform composed of QQ Film Reading which serves as content TV Series aggregator, and branded mobile 3 Third-party apps and
Slide 7: 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 8: Financials: Revenue Structure
Financials: Revenue Structure Revenue Breakdown by Businesses Online Reading Breakdown (RMB mm) (RMB mm) YoY Revenues +18.6% - Online Reading +13.3% - IP Operations +103.6% 2,283 2% 3% 1,924 14% 1,851 2% 5% 1,634 8% 15% 13% 81% 85% 85% 87% 1H17 1H18 1H17 1H18 8 Online reading IP operations Physical
Slide 9: Financials: Key Operating Metrics
Financials: Key Operating Metrics Average MAUs (1) Average MPUs (2) Average Monthly ARPU (3) (mm) YoY: +11.3% (mm) YoY: -7.0% (RMB) YoY: +19.0% 213.5 24.4 11.5 191.8 10.7 20.5 106.3 88.3 103.5 107.2 1H17 1H18 1H17 1H18 1H17 1H18 Notes: (1) Average MAU is calculated as the average of MAUs for each ca
Slide 10: Financials: Cost and Operating Expenses
Financials: Cost and Operating Expenses Cost of Revenue Selling and Marketing Expenses as % of total revenue, total amount in RMB mm as % of total revenue, total amount in RMB mm 24.3% 23.1% Gross margin 527 467 50.0% 52.4% 1,086 962 1H17 1H18 General and Administrative Expenses as % of total revenu
Slide 11: Financials: Profitability
Financials: Profitability (RMB’ 000) 1H17 1H18 YoY EBITDA 266,045 415,406 56.1% Margin % 13.8% 18.2% Adjusted EBITDA(1) 348,436 491,152 41.0% Margin % 18.1% 21.5% Operating profit 234,214 567,365 142.2% Margin % 12.2% 24.9% Non-GAAP operating profit (2) 334,412 515,630 54.2% Margin % 17.4% 22.6% Pro
Slide 12: Thank You
— Thank You =