Our strategy

To continue to grow our business, we focus on the delivery in the following areas:

Further expand our user base

We believe the size of our user base represents an important competitive advantage. As a social platform, we rely on viral network effects to acquire new users. However, we analyze our user behaviour to gain a deeper understanding of their needs and preferences to further enhance and expand our products and services. Through improving user experience and meeting their demands, more users are attracted to the social community. In September 2014, we added a video clip feature to Mobile YY, our music and entertainment mobile app, so users can share their favourite content with friends on other social platforms. The total number of monthly active users on YY platform reached 117m in Q1 2015, a 230% increase since the end of 2010.

Increase monetization of our user base

We increase the monetization of our user base through paid virtual items and value-added services. We focus on two areas: firstly, developing and introducing new initiatives and widening the range of virtual items; secondly, increasing the number of paying users by raising their awareness of our paid products and service and enhancing the online payment process. Since October 2013, we have also enabled mobile payment through Mobile YY.

Further develop and expand the use of mobile

We aim to further develop our mobile capability to make our products and services more accessible. According to China Internet Network Information Centre, China had 618m internet users in 2013, more than 80% of whom accessed via the internet mobile devices. Since the launch of our Mobile YY app in September 2010, an increasing portion of our users has been accessing our platform through mobile devices. We continue to improve functionalities and introduce new features on Mobile YY, as well as optimise mobile payment methods in the past four years. In order to increase the appeal to specific groups of users, we have also launched dedicated apps for each business segment, such as Xunhuan app for online dating and Huya for game broadcasting.

Continue to invest in our leading technology infrastructure

We continue investing in and developing our industry-leading technology that supports our platform. As our user base continues to grow, we need to augment our infrastructure capacity by adding more servers and bandwidth as part of our efforts to ensure that we can continue to provide high quality services to our users. We believe that maintaining our leading technology infrastructure will help us continue to attract new users and engender greater user loyalty. As of the end of 2014, more than 55% of our total workforce were in the R&D function, designated to developing and maintaining the YY platform.

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