China Literature Ltd. · HKEX:772
China Literature — FY2017 Earnings Presentation
11 slides from China Literature's earnings presentation, Mar 19, 2018
Slide 1: 2017 Annual Results
2017 Annual Results March 19, 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: 2017 Results Highlights
2017 Results Highlights Total Increased 60.2% from RMB2.6 billion in 2016 to RMB4.1 billion Revenues (USD626.7 million1) in 2017 Gross • Increased 96.8% from RMB1.1 billion in 2016 to RMB2.1 billion (USD317.6 million) in 2017 Profit • Gross margin increased from 41.3% to 50.7% YoY Operating • Increa
Slide 5: Continuous Expansion of Ecosystem
Continuous Expansion of Ecosystem Intellectual Property Operations Writers Content Adaptation Literary Works 6.9 mm (1) Partners 10.1 mm 200+ Online Reading Interactive Adapted Community Entertainment Products Readers 191.5 mm MAUs (2) Virtuous cycle driven by writers, content, reader base, and IP o
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: Revenue Structure
Financials: Revenue Structure Revenue Breakdown by Businesses Online Reading Breakdown (RMB mm) (RMB mm) 4,095 YoY 2% Revenues +60.2% 5% 3,421 - Online Reading +73.3% 9% - IP Operations +48.0% 14% 2,557 4% 1,974 9% 10% 13% 84% 86% 77% 87% 2016 2017 2016 2017 Online reading IP operations Physical boo
Slide 8: Financials: Key Operating Metrics
Financials: Key Operating Metrics Average MAUs (1) Average MPUs (2) (mm) (mm) 191.5 11.1 YoY: +12.7% YoY: +33.7% 8.3 169.9 2016 2017 2016 2017 Paying ratio (3) Average Monthly ARPU (4) (RMB) 5.8% 22.3 YoY: +18.4% YoY: +28.2% 17.4 4.9% 2016 2017 2016 2017 Notes: (1) Average MAU is calculated as the a
Slide 9: 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 Gross margin 28.7% 23.6% 41.3% 50.7% 965 734 2,020 1,502 2016 2017 General and Administrative Expenses as % of total reve
Slide 10: Financials: Profitability
Financials: Profitability (RMB’ 000) FY2016 FY2017 Year-over-Year EBITDA 106,402 576,328 441.7% Margin % 4.2% 14.1% Adjusted EBITDA(1) 184,425 759,276 311.7% Margin % 7.2% 18.5% Operating profit 33,323 510,776 1,432.8% Margin % 1.3% 12.5% Adjusted operating profit (2) 118,104 754,715 539.0% Margin %
Slide 11: Thank You
_= Thank You =