Chinese webnovel site IPO at $11.6 billion USD

[Xianxia]

https://www.bloomberg.com/quote/772:HK

MARKET CAP (B HKD)
91.186

with the current exchange rate, that's $11.6 billion USD. CRAZY!!!


https://www.cnbc.com/2017/11/08/tenc...-in-debut.html


http://www.dw.com/en/china-literatur...ipo/a-41288841

http://technode.com/2017/11/08/china...e-stock-spike/



I wrote about its $10 million investment to expand translation into English (www.webnovel) in the other thread. Just found out that they IPO today.

[Xianxia]

http://www.cetusnews.com/business/Sh...rk9i4xlkf.html

Although China is famed for inventing the printed book, the digital version has quickly become more profitable in a country whose citizens are glued to their smartphones.

China’s top 10 online writers earn twice as much as the country’s top 10 offline writers, according to consultancy Frost & Sullivan, in research commissioned by China Literature. Chinese adults spend roughly one-third of their leisure time on the mobile internet, according to research by state media.

China Literature is the country’s market leader in online literature in terms of both readers and writers, who it contracts — it publishes 88 per cent of all writers published online in China, according to Frost & Sullivan. The company first made a slim profit in 2016. It posted a net profit of Rmb213m ($32m) in the first half of this year, with a net profit margin of 11.1 per cent.

[frahse]

Originally Posted by Xianxia

http://www.cetusnews.com/business/Sh...rk9i4xlkf.html

lthough China is famed for inventing the printed book, the digital version has quickly become more profitable in a country whose citizens are glued to their smartphones.

China’s top 10 online writers earn twice as much as the country’s top 10 offline writers, according to consultancy Frost & Sullivan, in research commissioned by China Literature. Chinese adults spend roughly one-third of their leisure time on the mobile internet, according to research by state media.

China Literature is the country’s market leader in online literature in terms of both readers and writers, who it contracts — it publishes 88 per cent of all writers published online in China, according to Frost & Sullivan. The company first made a slim profit in 2016. It posted a net profit of Rmb213m ($32m) in the first half of this year, with a net profit margin of 11.1 per cent.

These statistics are astonishing.

[Xianxia]

From its youtube video about the IPO

2017 first 6 months: $290 million in revenue
2017 first 6 months: $32 million in net profit

So we could be looking at a webnovel company that generate $600 million USD + in revenue this year.

[Dopedangel]

Considering that China has 1.3 billion population and each year larger part of it is joining the middle income group. A $11 billion is understandable. I have feeling that the only companies in the future that would be really competing with Amazon in online retail business will be Chinese companies like Alibaba etc