Phoenix COO Lyapunov: There is a considerable divergence between stock prices and corporate valuations

(i) Phoenix New Media COO Lyapunov recently interviewed by the "Dialogue Wall Street" program, Lyapunov on the show that Phoenix New media performance solid high growth, but the stock price and the company's valuation has a considerable deviation, so is strengthening communication with investors; when it comes to specific business, he stressed that the Phoenix New media is not a traditional gateway, But to think more is to rely on differentiated content, media operations, and is the only one more focused on serving the mainstream netizens, more mature netizens, more educated netizens such a network media.　　Future mobile phone Phoenix, Wireless interactive products and wireless commerce will have great potential for development, and the company will actively and carefully develop social products and actively cooperate with other platforms.　　The following is a transcript of the interview: Ifeng performance and high growth will strengthen the communication with investors Moderator: Li Zhen Hello, very happy to come to our dialogue on Wall Street program to participate in our interview.　　Lyapunov: Very happy.　　Moderator: What is the main purpose of your trip to the United States this time? Lyapunov: is to attend a party in this industry, at the same time attend two investor's meeting as well as a kind of call Non-deal Roadshow, the Chinese should translate should be the non-tradable road show, should be such. This industry meeting, in fact, is a discussion of some of the leading media companies and internet companies in the United States on the future trends of the industry, which is very interesting.　　Other things like meeting our existing shareholders, and potential shareholders, and fund managers.　　Moderator: So what is the effect of the roadshow? Lyapunov: What's the effect? We expect to see the share price in the next two or three months, maybe it's not just through the roadshow, but in fact, my colleague and I, our CFO, and our CEO, Liu Yan, we all actually have a part of the work that is strengthening our communication with our investors. So I think this is also because we realize that our company's own performance, and our strong growth is actually not fully communicated, not let investors see our strength and potential, so we say at least as the company's operators, We think that the stock price and the company's valuation is a considerable departure. So in the course of the roadshow, in fact, I think a lot of the fund managers are getting to know us better, and as to what they're going to do, I think it's also hostage to some of the overall concerns of the big American market for the Chinese concept stock companies.　　And with this overall worry, different funds will adopt different strategies for high risk, high growth or low risk and high growth.　　For example, I think a company like ours it should be a solid performance, but also a high-growth company, their different strategies, I think this work will continue, then we will from the next two or three months, from their own companies, including I think a lot of the stock price of the shares in the hope to see the results.Ifeng non-traditional meaning portal two quarterly profit exceeding expected 86% host: Then you communicate with the investors, and the May when the Phoenix market, when the roadshow and investors communication, you think the feedback of investors what is different? Lyapunov: I think there are a few different things. The 1th is that the roadshow is more of a communication with him about the results we have disclosed, to show him that we were on the market when we said we were going to do what we wanted to do, and we did it, and far more than we expected. It is true that our two-quarter profit exceeded analysts ' expectations of 86%, so the profit is to throw away the option fee, which is more than 86% of what analysts expect from an analyst.　　Because to do so is actually a very important part of a listed company. 2nd, we are to let more companies focus on our future strategy and our, including the hands of so much cash, and the company's profitability is very good, then the future investment will be how to maintain a high growth. What about that? We actually, if you allow me to unfold, I can say, perhaps more in this, in some analysts they think may be portals, the network portal of this model seems to be outdated, and like social media, micro-blog, etc. is also a great way, Is there a real uncertainty about whether we can have high user growth in the future? So we actually passed it, including this year's operating data also pointed out that is why Phoenix New media It is different from the first generation of mass information rapid release platform for the core competitiveness of such a relatively homogeneous, A relatively high alternative to such a first generation portal model. We actually want to be more dependent on differentiated content, media operations, and in all of the so-called portals, we are the only one that is more focused on serving the mainstream netizens, more mature netizens, more educated netizens such as a network media. We hope to do is not only a mass information of the rapid release platform, more importantly, in a can say rapid change in a Chinese society, hope to achieve the social diversity of the balance of views and dialogue organizers. Our reports hope to be able to touch the heart of life, the trend of insight into the social trends of the Times, to guide our audiences to explore the meaning behind the events, and to disseminate what we think of the value of social progress. Such a media positioning, in fact it is more able to put, it is more to pay attention to a our audience of his entire people, pay attention to his spirit, pay attention to his heart, in fact, it can win from the heart of our audience for our brand recognition and the love of our website.　　So we can be in, even if the social media is actually surging in the past 12 months, then our user growth should also be the leading. Fragmentation propagation cannot replace Ifeng media value so that, in particular, is that socialMedia including Weibo it's such a I think it's very timely, very diverse, but it's a way of reporting, participatory, and actually it's not a substitute for real media operations such as the value of a company like Phoenix New Media, when a major event occurs, In fact, if the user came to a special report on Phoenix, he said he could see multimedia, from video links to the editorial of the big print media, to the poll results of our millions of users, to the selection of other micro blogs, to the comments of special columnists, and to the traditional blog posts and so on,　　Its spread efficiency, its comprehensiveness or depth of understanding of events, is not a fragmented microblog that might be able to replace it. So we think that in this fierce competition of China's Internet, we are able to maintain the growth of our users according to our media genes.　　This is actually a very important point in communicating with investors. Cell Phone Phoenix, the future of wireless interactive products and wireless business potential another is for China's future advertising market, we may also help them point out that the 1th is in this, although there may be macroeconomic uncertainties, I am not an economist, and we do not assert what it will, but internet advertising, Including possible wireless advertising after all it's in people putting this media consumption or the time for entertainment or communication has shifted dramatically to the age of the internet and mobile phones, and it's such a drop in time from advertising to consumer spending that it actually has a very big potential, and it's this kind of growth that drives Will still be much more than the worries that the economy might bring.　　So from this point of view, in fact, with investors, want them to see the Internet primarily, but also including wireless advertising and video advertising, it will actually be in the next three years, or will drive a lot of Chinese internet companies, including Phoenix New media, can have very strong growth. Like we are now in the mobile phone Phoenix above called 3g.ifeng.com, the site's traffic every day almost 160 million of PV, this flow is basically not realizable. And as more and more smartphone users spend more time on the phone for media consumption, and even mobile phones have the function of shopping terminals, then wireless advertising, wireless commerce, it must have a very large potential.　　These can lead China's drive, China's internet companies, including ourselves, can continue to maintain the current, a high-speed advertising growth.　　Ifeng user growth Rapid Precision marketing Meet market demand Moderator: Just now you are talking about the development trend of network media, Phoenix A core competitiveness, as well as a profitability problem.　　Lyapunov: Right, right. Moderator: So here I extend some other questions, such as you mentioned earlier Phoenix more attention to some of the more high-endUsers, more high-end some netizens, then you see this group is also growing? And we've also seen that other major portals or microblogging their users are growing, to a large extent, thanks to the overall number of Internet users in China as the urbanization and urbanization process is constantly increasing, so this can lead to an increase in their users, and Phoenix this part is more high-end, more professional this part of netizens,　　You are seeing that their annual number is increasing. Lyapunov: I think it may not be particularly accurate to use the word high-end, because we actually sometimes talk about the mainstream of netizens, but in fact, the most important feature is that Phoenix attracts netizens who want to have their own independent thinking, want to have their own views, and the pursuit of knowledge, the importance of education, are relatively strong. This audience is actually more than 200 million per month for our independent visitors, and this is our company's own data, so it attracts more than just, perhaps, high-end users like the first tier city,　　In fact, the Phoenix it attracts is already in fact some of the most popular Chinese internet users who are well educated. Since China now has almost 500 million netizens, but in fact its age, regional distribution, education, the difference is very large, young users under the age of 20, the proportion of users is very high, far more than I think actually may be other developed society, because it is a new thing, China relative to the elderly population, They have less time for this use of the Internet, or more of this proficiency, so in such a degree, we think that is to be a good service to their target audience, should be a certain audience-oriented, so as to better for them, around their needs and interests to organize content.　　At the same time this is actually our advertisers to our request. Because many industry advertisers, such as automobiles, real estate, finance, home appliances and so on, they may actually first hope that a media target audience and their target consumers are matched, both the propensity to buy and the ability to buy people, otherwise, in fact, even if there is interaction there is a click so he may also be ineffective. So in fact, the precise marketing in the crowd matching is actually the basis of some interactive marketing, so why is it that in fact when we make a strategy, the people we identify don't seem to be trying to serve all internet users, but to identify their target audience. But at the same time it also makes our business model, in fact, more able to conform to a true backward evolution of a trend. Any real market economy to the later, any one of the industry's products or services, it should all go towards a except maybe we say that even if drinking water, there is actually some water it is for some health-conscious groups produced.　　So such a trend to form the audience demand is an inevitable trend of the development of a market economy. Ifeng willActively and cautiously develop social products and actively collaborate with other platforms moderator: You have also talked about this issue of Weibo, we now see that almost all of these large portals have their own microblog, including some professional financial sites also have their own microblog, then how do you think that is Phoenix will,　　Is it possible to develop micro-blogging business? Lyapunov: Our first Phoenix has Weibo, but we launched micro-blog, in fact, is certainly more than Sina late I think there should be a year, and later also this year also launched a call for fast Bo products, it is between the microblog and blog a product. The efforts of these social products, in fact, we realize that when the consumption habits of the media and the consumption habits of the media are changed, we must explore this. But at the same time we are aware that the foundation of an enterprise's strategy is based on its understanding of the competition. Oneself have what kind of advantage, oneself have what kind of inadequacy or restriction condition. So what we understand about ourselves, the excellent quality of content that we actually scarce, and our media operations, and the so-called fusion model convergence, is a fusion operation in this mobile video and graphic Internet portal,　　This is actually an advantage of our differentiated competition. Then we have to develop our own strategy on the basis of our own strategic advantages, so on the one hand we will be positive, but we will be cautious of this rhythmic, to explore the social media independently developed, independent products. At the same time, also in a wide range of, including such as Tencent, Sina Weibo, including happy, everyone such a broad cooperation. Because in fact, especially in the media fragmentation, including in the network channel in the Times of the times, actually scarce content and valuable people, in fact, all of these channels they value.　　That's why, in fact, different social networking sites and social media are very willing to work with Phoenix, and that's because we have such a scarce high quality content that we have such a valuable group of people and Phoenix's preeminent brand. Chinese concept stocks should be honest to the market to do what they do host: Well, we return to this part of the listed company.　　In the face of a near-madness crackdown on the Chinese concept stocks in the 2011, what do you think Chinese companies can do to better cope? Lyapunov: I think the first 1th is, must be honest this is certain, because once there is any dishonest record of this discovery, it may destroy other people's confidence in you. So I think that most of the company's professional managers, founders or all have such awareness. The other thing is to attach great importance to the commitment that we gave in the listing roadshow, that is, to do what we promised, including our growth rate, including the investment in our strategic development, and so on, we started with a little faith in the market,Let them see that we can do what we want. On this basis, we may have more flexibility in the strategy of this workaround.　　So I think it is very important to say this.　　And that's also based on our own in the past second quarter, some of our own experiences and lessons have been drawn up to the point where we are trying to give the market such a surprise that, of course, it is perhaps the most important thing to give them such surprise, except this very good growth and profit. China's Internet highly marketable short to promote corporate governance more standardized host: There is a final question, that is, since the May listing to now almost half a year, perhaps you have also experienced, the whole Phoenix also experienced some rise and fall, then what experience and lessons can give those,　　Is it still the Chinese companies that want to finance the U.S. capital markets to share? Lyapunov: I think we actually see Youku's successful IPO, and then some other competitors, including potatoes and thunder (Weibo), either reluctantly or not, and including phoenix ourselves, we happen to be on this Renren (Weibo) after the listing of almost a week more time. One thing we can actually feel is that this capital market, its uncertainty is growing, and now we know that the so-called Chicago Volatility Index is a historical, and should be said to be a very high, one-fold higher than the historical average level.　　So the case makes no visibility is to say without this.　　Moderator: Visibility. Lyapunov: There is no visibility to the capital market, so it must be prepared in advance, their financial audit, their own legal affairs and so on, once there is a window to be able to bang.　　But in fact the challenge now may be that when it looks good and then starts the road show, the road is over and it's not going to happen again.　　Moderator: The situation has changed. Lyapunov: This really poses a very big challenge, so in this case I think it is really good to prepare for a protracted war, and prepare for a protracted war. In fact, it may be that in the so-called bubble burst, this is actually the winner of the king is very important. We look at the time more than 10 years ago to do E-commerce is a lot of companies, from 8848 to me there are many, including the so-called era of the network community, but the last can be left, in fact, Alibaba (Weibo) is a winner of the king.　　So in a lot of areas I think, including now we are more worried about the group buying field and so on, is the strategy of their own industry a game of thinking, I think is very critical. But I would like to point out here, perhaps, just to share some of the views of shareholders and investors who may be interested in the Chinese concept stock investment. I think China's internet companies are the most marketable part of China's entire economy, and they have experienced a very severe test of US capital markets,To a very high number of short companies such a professional, systematic attack, and sometimes it is a certain distortion of the facts of some short attacks. The more so, in fact, the stock prices of these companies should now be said to be quite a bit back to a point I think is lower, this is a very good opportunity, and these companies I think their corporate governance, their integrity should not be lost in a a-shares or the gem, especially such a business.　　We can see that these companies are not their entrepreneurs or professional managers, they should be said to be many, are my own very respectable peers, their professional ethics and their level of effort and intelligence. And one, perhaps, from a balanced perspective on the risk of their own assets, I would also like to point out that in the current European debt crisis is serious, and the U.S. economy is relatively good, is the dollar in fact, the value of the dollar itself is actually hope that the European debt crisis will be further consolidated. So for the Chinese market, I have a fund company worried about this in the roadshow, will China's macro-economic bubble, as well as some bad loans in informal financing channels, or some of the pressure on private companies, make it a bust of asset bubbles in the case of excessive currency issuance? , and this raises some concerns about a possible inflationary rise, or even a devaluation of the renminbi.　　In fact, I think if we can fit in with more of our investment, in the United States listed in the shares that I think the risk of such a currency is also a balance. Listing is a gift for adults to help enterprises enhance their competitiveness moderator: OK, really is the last question, we also know that all the costs of each company to do everything, including listing or all the costs, if the cost we all attribute it to the opportunity cost, that is, the cost of listing is not listed can bring some consequences, So through the listing of the last six months I want to ask the one is for yourself and Phoenix, get the most?　　What is the most lost? Lyapunov: OK, Overall I think the listing is still a company called coming of age should be called the adult rite such a thing, it actually has a lot of by listing, in fact it in the brand in talent retention and attraction, basically will get greater promotion. In particular, through a public company such a transparent disclosure mechanism, in fact, the company's own governance, including the company's own strategy can withstand the test of the industry in fact, there are very many benefits.　　Although there may be a lot of financial costs, the cost of the law, as well as the cost of communication, but also to bear the stock price downturn brought about by some of the worries and anxieties, but in fact, I think it for a company fully market-oriented mechanism to strengthen their competitiveness, it is absolutely should pursue.　　Moderator: Well, thank you very much for your acceptance of our interview. Lyapunov: Non-It's always a pleasure, thank you.