Weather App 'Moji Weather' to IPO on Shenzhen's ChiNext Growth Board
Sina Tech, 12/24/16
Beijing-based Moji Fengyun Technology, developer of mobile weather app Moji Weather, has submitted a prospectus for listing on the Shenzhen Stock Exchange's ChiNext growth enterprise board, where Moji plans to sell up to 25% of its total equity. Founder and CEO Jin Li holds a 34.63% stake in Moji, China Renaissance K2 Ventures holds 17.44%, e-commerce conglomerate Alibaba Group (NYSE: BABA) holds 15.5%, Innovation Works holds 8.71%, and Shanda Investment Group holds 6.27%. Moji has also set up three employee stock incentive programs covering 60 employees.
Moji Weather provides users with free weather forecasting, community crowd-sourced weather reporting, news and life information services. The mobile app has been installed 470 mln times in the six years since its launch and has 35 mln daily active users. Advertising revenue is Moji Weather's main source of income.
For the periods reported in the prospectus, Moji has impressive revenue growth from RMB 18.408 mln in 2013 to RMB 125.006 mln in 2015, or 160.59% compounded annually. Net profits grew by 525.82% annually from RMB 643,200 in 2013 to RMB 25.191 mln in 2015.
However, Moji's business model is reliant on advertising revenue with 97.25%, 94.84%, 98.10%, and 98.70% of revenue coming from advertising in 2013, 2014, 2015, and H1 2016, respectively. Moji's major ad clients include Chinese internet and mobile services firm Tencent (0700.HK), Alibaba Group, brand management solutions firm BlueFocus Communication Group (300058.SZ), and mobile advertising firm Zhang Kuo Mobile Media (Adwo).
Moji's plans to evolve from a functional app operator to a comprehensive internet weather services provider over the next three years. One growth avenue for the company is a major push for overseas expansion. Another direction is the gradual integration of hardware and software to provide additional weather services for users. Moji will also aggressively pursue an enterprise-facing business, offering government and enterprise clients with customized weather products and services.
Editor's Note: To view the full prospectus (Chinese language only), please click here.
Keywords: Moji Fengyun Shanda Investment IPO revenue wireless mobile advertising active users business model Innovation Works Alibaba Group China Renaissance K2 Ventures Moji Weather Jin Li BABA weather profit mobile application
Sending
