By Hong Kong Newsroom
HONG KONG (Mar 19) -- Online publishing and e-book company, China Literature said Monday its net profit surged in 2017 helped by higher revenue and increased gross margin.
Net profit for the twelve months ended Dec. 31 totaled 556.13 million yuan ($87.81 million), up from 36.68 million yuan a year earlier, the company said in an exchange filing. Revenue was up 60.2% to 4.10 billion yuan from 2.56 billion yuan in the year-ago period.
The company, majority owned by social media and gaming major Tencent Holdings, said gross margins improved from 41.3% in 2016 to 50.7% in 2017 thanks to "shift of business towards online reading and intellectual property operations," cost control measures and increased economies of scale.
China Literature's flagship product QQ Reading is a unified mobile content aggregation and distribution platform. It provides online readers access to its content library that includes nearly 10 million original literature works as part of its content offering. The company also licenses its content to third-party distribution partners like Chinese search engines Baidu and Sogou and Chinese e-commerce company JD.com.
Revenues from online reading increased by 73.3% benefitting from growth in both the number of paying users and the average revenue per paying user in 'self-owned platform products.'
The shares of the company were listed on the Hong Kong stock exchange in November after highly sought after initial public offering, raising total net proceeds of HK$7.24 billion ($922.32 million).
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