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We are China's largest online community-driven literary platform. Our platform has six original literature websites, covering a large number of literary genres. Market research firm iResearch data show that in 2011 the total number of unique users per month up to 69.7 million. Since December 31, 2011 inception, we have been on these sites created about 1.6 million writers over 5.8 million literary works. Through our sales partner of China Mobile (microblogging) reading base, our independent content to attract the 68 million mobile subscribers, of which 20.11 million users to buy the premium content, in 2011 the average monthly mobile page views amounted to 1.6 billion times. From March 2010 to December 2011, a total of 115 million mobile access to independent reading base of China Mobile users browse through our content to our online Chinese literature community is widely regarded as a leading Chinese online literature sites. According to iResearch report data, in 2011, in order to calculate revenue, online literature market in China accounted for 72.1 percent of the market share to the user to calculate the residence time, we took 57.7 percent of the market share. Our network's starting point is China's largest Chinese original literature, according to iResearch report, in 2011 to revenues to calculate, from the Chinese network Chinese online literature occupy 43.8% of the market share. We firmly believe that our large and highly engaged online community creates a natural network effect of Chinese well-known and respected writer formation attractiveness, and thus enhance the relevance of our website and to promote the development of our writers to provide a Post literary medium, so that these works can not be achieved before the Internet era, the speed and scale easily to cover a large number of readers. Our community created a writer, while writers and literary works through a virtual, as well as millions of readers further affect us. Many of our readers are in the view shared by the community inspired after we started writing full and sustained expansion of the scope of an original literary genres, including fantasy, martial arts, science fiction, fairy tale and love story. One of our literature, Yang Guan Road desolate beauty was selected in 2008 China's college entrance exams reading material. As of December 31, 2011, our online library literature, including the millions of readers of the collected works of online communities, has reached about 5.8 million. In 2011, the daily average of about 60 million Chinese characters were uploaded to our library. In addition, as of December 31, 2011, our platform provides more than 105,000 audio book chapters, and over 770 electronic magazine. We also have a line publishing business, Openbook data show that in 2010 we published the top three best-selling book in China two works, as well as a private publishing company in 2011 launched China's best-selling general interest books. Cloud Bookstore is our October 2010 launch of a website, the integration of content search and marketing business now We offer both free and paid content. We also have a line publishing business, through the chain and online bookstores, as well as wholesale sales of books, and then get revenue in the past three years, our performance has grown rapidly. 2009, 2010 and 2011, our net revenues were 134.6 million yuan, 393 million yuan and 701.1 million yuan (about 111.4 million U.S. dollars), the annual average growth rate of 128.3%. 2009, 2010 and 2011, our net loss was 74.5 million yuan, 56.5 million yuan and 35.9 million yuan (about 5.7 million U.S. dollars) as of December 31, 2009, December 31, 2010 and 2011 on December 31, our Chinese subsidiary Shengting IT Limited, did not generate a profit, it will not and can not pay a dividend for the foreign entity until the company under the laws comply with the statutory reserve requirement funds industry, including literature online literature content through a variety of media formats and devices creation, distribution and consumption. Prior to China's domestic book publishing market in the creation and marketing are very scattered. Online literary development also by the rapid spread of the Internet and wireless networks, increased disposable income, consumer spending increased Internet, e-commerce development, literary content digitization, government policy support for innovative industries driven by factors such sales: online literature content via the Internet and wireless networks to sell. Smart phones, mobile tablets, e-readers and other mobile networking equipment also makes the popularity of online literary content at any time, any place sales more convenient. IResearch data show that from 2009 to 2011, China's original online literature industry has been growing rapidly by the 150 million yuan to 600 million yuan, the annual average growth rate of 100.0%. China's online original literature market is very concentrated. IResearch report noted that in 2011 the industry leader accounted for 72.1% of the market share line publication of the entire Chinese publishing market is still the most important part, and the state-run publishing houses still dominate. China has about 3,000 private publishing company, and because of its flexibility and market caused by the way they operate, private line publishing market in China has played an increasingly important role. Openbook data show that in 2011 China's five largest private publishing company's books retail sales reached 2.442 billion yuan, while in 2009 was 1.482 billion yuan, an average annual growth rate of 28.3%, we believe the following strengths will create what we have achieved, is what distinguishes us from our competitors:2011 novel read throughout the test questions resolved seven languages
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