China Literature Ltd. · HKEX:772
China Literature — H1 2019 Earnings Presentation
13 slides from China Literature's earnings presentation, Aug 12, 2019
Slide 1: 2019 Interim Results
2019 Interim Results August 12, 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: 2019 Interim Results Highlights
2019 Interim Results Highlights Increased 30.1% from RMB2.3 billion in 1H18 to RMB3.0 billion Revenues (USD432.2 million1) in 1H19 Gross • Increased 35.5% from RMB1.2 billion in 1H18 to RMB1.6 billion (USD235.8 million) in 1H19 Profit • Gross margin increased from 52.4% to 54.6% YoY Operating • Decr
Slide 4: Continued Expansion of Ecosystem
Continued Expansion of Ecosystem Readers Content Adaptation 217.1 mm MAUs (2) 200 Partners + New Classics Media User: top-notch user platform Content: content oriented ecosystem Adapted • Total writers increased Entertainment Products from 7.3 mm as of June 30, 2018 to 7.8 mm as of June 30, 2019. To
Slide 5: Online Business Highlights
Online Business Highlights • Strengthened Leadership Position: ‐ 17 out of the top 20 online literary works were created on the Company’s platform, according to Baidu’s search ranking in June 2019 ‐ 25 works received recommendations and honors from SAPPRFT(1) and from the China Writers Association a
Slide 6: IP Operation Highlights
IP Operation Highlights • New Classics Media: ‐ Memories of Peking (芝麻胡同) was aired and ranked 1st in terms of viewership during its specific broadcast time slot on Beijing TV and 4th on Shanghai Dragon TV ‐ Dramas series, The Best Partner (精英律师) and Last Romance (流金岁月), were included in the 2018-20
Slide 7: Financials: Key Operating Metrics
Financials: Key Operating Metrics Average MAUs (1) Average MPUs (2) Average Monthly ARPU (3) (mm) YoY: +1.7% (mm) YoY: (9.3%) (RMB) YoY: (7.8%) 213.5 217.1 24.4 22.5 10.7 9.7 106.3 115.6 107.2 101.5 1H18 1H19 1H18 1H19 1H18 1H19 Notes: (1) Average MAU is calculated as the average of MAUs for each ca
Slide 8: Financials: Income Statement
Financials: Income Statement RMB’ 000 1H18 1H19 YoY Revenues 2,282,900 2,970,951 30.1% Cost of revenues (1,086,401) (1,349,801) 24.2% Gross profit 1,196,499 1,621,150 35.5% Interest income 84,901 85,589 0.8% Other gains, net 184,511 269,572 46.1% Selling and marketing expenses (527,272) (976,720) 85
Slide 9: Financials: Revenue Structure
Financials: Revenue Structure Online Business Revenues Breakdown Revenues by Segment (RMB mm) YoY: (11.5%) 1,879 (RMB mm) On third-party YoY: +30.1% 2,971 1,662 platforms 283 246 500 On our self-operated 2,283 431 channels on Tencent products 1,308 1,097 985 On our self-owned 404 platform products 1
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 23.1% 32.9% 14.6% 15.9% 977 473 334 527 1H18 1H19 1H18 1H19 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 52.4% 54.6% 26.5% 17.8% 22.1% 13.2% YoY: +35.5% YoY: (12.6%) YoY: (22.0%) (RMB mm) (RMB mm) (RMB mm) 1,621 604 1,196 528 504 393 1H18 1H19 1H18 1H1
Slide 12: Financials: Non-GAAP Profitability
Financials: Non-GAAP Profitability (RMB’ 000) 1H18 1H19 YoY EBITDA 415,406 266,830 （35.8%） Margin % 18.2% 9.0% Adjusted EBITDA(1) 491,152 427,871 （12.9%） Margin % 21.5% 14.4% Operating profit 603,866 527,722 （12.6%） Margin % 26.5% 17.8% Non-GAAP operating profit (2) 552,131 517,120 （6.3%） Margin % 2
Slide 13: Thank You
— Thank You =