Century Jia Yuan: Mo Mo is not a competitor

Tencent Science and Technology wood language February 28 compiled Century Good Edge Thursday released the company as of December 31, 2013, the fourth quarter and the whole year without the audit earnings. Earnings showed that the net revenue for the quarter was 133.1 million yuan (about 22 million U.S. dollars), an increase of 20.4% per cent, and a net profit of 25 million yuan (about 4.1 million US dollars), up 45.2% per cent year-on-year. After the earnings release, the century Jia margin CEO Wulin Light and CFO Guchangxiu and other executives attended the ensuing analyst conference call, interpretation of earnings points and answer the analyst questions. The following is the main part of the conference call analyst question and answer session: Bank of America-Merrill Lynch analyst: What are the main components of your cost structure in 2014? Guchangxiu: 2014, the investment in research and development, sales and marketing is our focus. For research and development costs, growth is expected to be at an equal or slightly higher level of income growth, with marketing and sales costs about 40% to 44% per cent of our total revenue. For the first quarter, sales and marketing costs are expected to exceed 80 million yuan, and in the first quarter we have spent 25 million of the advertising fees on CCTV and other television stations. Usually in the quarter of the century good margin is the off-season, users are not very active, so the fourth quarter we are hungry advertising spending will be relatively low. Citibank Analyst: I would like to know the current VIP service price of the century Jia Yuan, how many VIP members are there at present? Are these members from the century Jiayuan line user or offline user? Wulin Light: 2013 The fourth quarter century Jiayuan VIP monthly pay user is about 1.4 million, VIP members mainly from our existing online users, as for ARPU (per pay user average income) value, different regions are not the same, and the scope of the difference is very large, the price from the beginning of 10,000 yuan, But will increase with the user's request, this is a very personalized service, so we have introduced different services to meet their different needs. As for the century Jiayuan VIP dating service member sources, mainly from our 100 million registered users, we will be part of it into VIP members. There are also customers who come directly from the click Net. Citigroup analyst: How many of the century's good fortune flows are natural growth and how many of them come from navigation sites? Guchangxiu: About 20% of the traffic is natural growth from registered users. Analyst: Can you talk about the competitive environment you are facing, especially on the mobile side, the dating applications such as MO have impact on you, what are your advantages on the mobile side? Guchangxiu: Over the past year we have not seen a big change in our competitors, our main competitor remains the Lily net and the treasure NET, the mobile domain is a predestined network. In the Mobile field, Century Jiayuan is currently in the installation volume and user stay long, are far ahead of competitors, our users have more than 50% of the time to use the market share. We will adhere to the market segmentation strategy, the introduction of new products to meet the needs of different users.For example, we launched a courtship product last year, while testing another product that focuses on the mobile side. These focused on the mobile end of the product or service, will help us to expand market share, our competitors and competitive advantage. As for the MO, we don't think it is our competitor, it is more the social domain of the dating software.