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INSIDE	                                                      INSIDE 	                                                    J...
INSIDE	                                    SUMMARY	  Jiayuan is a leading online dating site inChina. It operates a freem...
INSIDE	                                          REGISTERED USERS	                                                        ...
INSIDE	                                          AVG MONTHLY USERS                                                        ...
INSIDE	                                          USER DEMOGRAPHICS	    Jiayuan users are serious:	    “We actively discour...
INSIDE	                                                        REVENUES	       Millions USD	         30	                  ...
INSIDE	                           FREEMIUM MODEL	 Jiayuan operates a freemium model whereby users can start browsing for f...
INSIDE	                                           REVENUE SOURCES	                                                        ...
INSIDE	                                                REVENUE BREAKDOWN	                       By Net Revenues 	         ...
INSIDE	                                          COMPETITORS	                                              Zhenai operates...
INSIDE	                                        INDUSTRY GROWTH	         Jiayuan cites four key factors driving growth in C...
INSIDE	                                         Jiayuan Homepage	                                                         ...
Account Page	                        Buy stamps                     (required to send  Msgs in inbox	       messages)	   G...
Payment methods include                               Payment Page	online banking, credit card,phone credit, phone charge ...
Search Page	        Location / gender	                Age	               Height	                                          ...
Profile Page	                   Profile info	                         Message User	   Send Greeting (wink)	Similar users
Messaging System	             Profile info	                                    Use a Jiayuan stamp	   Send free msg	If a st...
INSIDE	                        IPO STATUS	•  Jiayuan plans to list on NASDAQ on May 11, 2011 under the ticker   DATE.	•  A...
INSIDE	                                          OFFICIAL STRUCTURE	                                                   (OU...
INSIDE	                                          OFFICIAL STRUCTURE	                                                    (I...
INSIDE	                              ABOUT ICHINASTOCK	   Snowball Finance is a financial media platform that includes two ...
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Inside Jiayuan (NASDAQ: DATE) -By iChinaStock

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Online-dating site Jiayuan targets China's urban singles looking for serious relationships. Users can browse for free, but the initial message to another user costs money (2 RMB). It will list on NASDAQ under the ticker DATE at an planned valuation of about $344 million. Report by iChinaStock.com.

Published in: Technology, Business

Inside Jiayuan (NASDAQ: DATE) -By iChinaStock

  1. 1. INSIDE INSIDE JIAYUAN NASDAQ: DATE A LEADING CHINESE ONLINE-DATING SITE REPORT BY iChinaStock.com profiles Chinese firms that are publicly-listed or may list soon in overseas markets © March 2011 iChinaStock
  2. 2. INSIDE SUMMARY   Jiayuan is a leading online dating site inChina. It operates a freemium modelwhereby users can start browsing for free,but must pay for premium services such asmessages, badges, and targeted searches.   iResearch reports that Jiayuan generates44% of revenues in China’s online datingmarket.   At the midpoint of its IPO range, Jiayuanwould raise $78 million at a $344 millionvaluation. It plans to list on NASDAQ onMay 11, 2011 under the ticker DATE.
  3. 3. INSIDE REGISTERED USERS 40,156,311 35,090,025 19,243,134 12,702,855 2008 2009 2010 2011 (As of March 31) iResearch ranked Jiayuan.com as #1 among Chinese dating sites in terms of number of visits from unique IPs, avg. time spent per user, and avg. page views per user. Source: JiaYuan.com. F-1 SEC Filing
  4. 4. INSIDE AVG MONTHLY USERS (ACTIVE AND PAYING) Millions 5.0   4.74   4.40   4.5   4.20   4.0   3.69   3.5   3.0   2.51   2.5   Ac/ve  Users   2.0   Paying  Users   1.5   0.76   0.88   1.0   0.65   0.50   0.5   0.17   0.19   0.21   0.24   0.31   0.0   Note: *Active user accounts refer to registered user accounts through which registered users have logged-in to our Jiayuan.com website at least once within a calendar month in the case of user accounts registered in prior months, or on at least two separate days within a calendar month, including the day of completion of the registration process, in the case of user accounts newly registered in the calendar month. Source: JiaYuan.com. F-1 SEC Filing
  5. 5. INSIDE USER DEMOGRAPHICS Jiayuan users are serious: “We actively discourage users who are not looking for a serious relationship from using our services.” Jiayuan users are urban: “Leveraging our brand and national recognition, we have attracted a critical user mass locally in not only first-tier cities, such as Beijing, Shanghai, Guangzhou and Shenzhen, but also in many second-tier cities across China. We intend to continue expanding our user base into other second-tier and third-tier cities.” There are also concerns that some percentage of Jiayuan users are fake. Local Chinese press has picked up on a number of such accounts, though it is also possible that Jiayuan’s competitors are attempting to disparage the site. Source: JiaYuan.com. F-1 SEC Filing
  6. 6. INSIDE REVENUES Millions USD 30   25.78   25   20   Net  Revenues   15   Net  Income  (Loss)   9.83   10   Adjusted  Net  Income   4.25   3.64   (non-­‐GAAP)   5   2.57   0.87   1.12   0   2008   2009   2010   -­‐5   -2.13 -2.11 Note: Adjusted net income accounts for stock-based compensation and certain other non-cash costs. It is the basis upon which many investors appraise companies filing for listing. Source: JiaYuan.com. F-1 SEC Filing
  7. 7. INSIDE FREEMIUM MODEL Jiayuan operates a freemium model whereby users can start browsing for free, but must pay for premium services such as messages and virtual gifts. “Although the search capabilities and exploratory services are provided for free and our usersare not required to pay to send an initial message to another user, either the sender orrecipient must purchase a RMB 2.00 virtual stamp in order for the message to be readable. After the initial message is read, future communications between the same users are free onJiayuan.com. Our pricing strategy for the initial message is designed to reach and target themass market with its affordability.” There are also various monthly subscription plans that allow users to send up to 100 initial readable messages per day.
  8. 8. INSIDE REVENUE SOURCES (2010) • “Net  revenue  from  this  sec/on  primarily  consist  of  ini/al  message  fees,   Online  Services   subscrip/on  fees,  and  value-­‐added  services  (i.e.  virtual  giQs,  improved  search   rankings,  IM  service,  and  advanced  memberships.  Messages  services  alone   90%  of  revenues   accounted  for  84.2%  of  net  revenues  in  2010.”   • Jiayuan  hosts  an  average  of  670  large  scale  social  gatherings  per  year  to   Events    VIP  Services   promote  its  brand  and  provide  users  opportuni/es  to  meet  in  person  in  ci/es   across  China.   5%  of  revenues   • Jiayuan  provides  “special,  personalized  services”  for  our  VIP  clients  to  find   companions.   •   “Other  services  revenue  consists  primarily  of  adver/sing  revenues.  Adver/sing   Other  Services  (ads)   revenues  are  principally  derived  from  online  adver/sing  arrangements.”   • In  Oct.  2010,  Jiayuan  also  launched  a  new  wedding  and  event  planning  website   5%  of  revenues   Xique.com.   • Accounted  for  5%  of  revenues  in  2010  Source: Jiayuan.com F-1 SEC Filing
  9. 9. INSIDE REVENUE BREAKDOWN By Net Revenues By Revenue Share (2010) $25,000,000 Other $20,312,000 Events Services $20,000,000 VIP 2008 5% 2009 Services $15,000,000 2010 5% $10,000,000 $6,986,915 Online $5,000,000 $2,414,100 $3,980,000 Services $1,970,597 $1,194,735 878,386 $643,780 $1,100,000 90% $0 Online Services Events VIP Other Services Services Source: JiaYuan.com F-1 SEC Filing
  10. 10. INSIDE COMPETITORS Zhenai operates an online-offline hybrid site that combines a website with a large call center. The site serves in large part to upsell users to Zhenai’s matchmaking services which run for about RMB 3000 (450 USD). The call center employees then offer personalized service to find the customer a match. Zhenai has run aggressive advertising campaigns across China to gain audience. Baihe is an dating site that organizes lots of offline activities. The focus is on “VIP” members who pay a high fee to be introduced to potential matches. Baihe has fallen behind Zhenai in name recognition as that site has increased its marketing efforts. As compared to other dating sites, Jiayuan places more focus on online activity and interaction between users. Jiayuan’s competitors include both dedicated dating sites and web portals: “Our principal competitors include Baihe.com and Zhenai.com, both of which operate online dating platforms. In addition, we face competition from Internet portals such as Sina.com.cn, Sohu.com, QQ.com and 163.com and social networking websites such as Renren.com and Kaixin001.com, each of which provide various online services or platforms that could be used to deliver dating services.” Source: JiaYuan.com. F-1 SEC Filing
  11. 11. INSIDE INDUSTRY GROWTH Jiayuan cites four key factors driving growth in China’s online dating sector: 1.  Unprecedented urbanization 2.  Rapid demographic changes, including a growing gender imbalance 3.  Chinas unique cultural considerations and traditional values 4.  Chinas fast growing Internet industry. “According to iResearch, the number of singles over the age of 18 visiting online dating websites increased from 14 million in 2009 to 19 million in 2010 and is expected to reach 60 million in 2015.” Source: JiaYuan. F-1 SEC Filing
  12. 12. INSIDE Jiayuan Homepage Pink theme of site pleases many female users Log-in Search Ads for offline activities and TV shows Register Log-in New users
  13. 13. Account Page Buy stamps (required to send Msgs in inbox messages) Gifts One free stamp (upon registration) Profile % complete
  14. 14. Payment methods include Payment Page online banking, credit card,phone credit, phone charge Stamps costs 2RMB each (the alterative cards, Alipay, and more is buying a monthly subscription plan) Messaging (stamps) account for 84% of Jiayuan’s net revenues
  15. 15. Search Page Location / gender Age Height Searching for you Other criteria include educational background,constellation sign, Chinese horoscope, blood type, Browsing is free, but Quick Search income, etc. an initial message requires one stamp (2rmb)
  16. 16. Profile Page Profile info Message User Send Greeting (wink) Similar users
  17. 17. Messaging System Profile info Use a Jiayuan stamp Send free msg If a stamp is used, recipient can read the message for free. If a free message is sent, the recipient must use a stamp (2rmb) to read the message.After the initial message, all subsequent messages between the two users are free.
  18. 18. INSIDE IPO STATUS •  Jiayuan plans to list on NASDAQ on May 11, 2011 under the ticker DATE. •  At the midpoint of its IPO range, Jiayuan would raise $78 million at a $344 million valuation. •  Underwriters on the IPO are being led by Bank of America Merrill Lynch and Citi.
  19. 19. INSIDE OFFICIAL STRUCTURE (OUTSIDE CHINA) Anticipated shareholder structure Source: JiaYuan.com. F-1 SEC Filing
  20. 20. INSIDE OFFICIAL STRUCTURE (INSIDE CHINA) Anticipated shareholder structure Source: JiaYuan.com. F-1 SEC Filing
  21. 21. INSIDE ABOUT ICHINASTOCK Snowball Finance is a financial media platform that includes two sites. One is iMeigu.com, a Chinese-language site that covers all US-listed stocks. The other is iChinaStock.com, an English-language site that covers Chinese stocks listed in the US. Each site provides stock quotes, business news, and analysis. Snowball Finance has also established my.iMeigu.com, a Web 2.0 platform for global investors to share news and insights on stocks they follow. Snowball Finance also publishes the iChinaStock 30 Index, a representative sample of Chinese stocks on the NYSE and NASDAQ. © March 2011 iChinaStock

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