SHANGHAI, Sept. 13, 2021 /PRNewswire/ — CooTek (Cayman) Inc. (NYSE: CTK) (“CooTek” or the “Company”), a global mobile internet company, has achieved diversification of revenue and enhancement in profitability through the innovations in mobile gaming and original IP content, thanks to its improved digital operation and product conversion. Under the strategy of diversification, external expansion and innovation, the Company’s global content ecosystem has become increasingly rich and robust.
Enriching IP Content Reserve, Creating More Opportunities for Commercialization
Fengdu Novel, CooTek’s online literature app, has developed a solid foundation from its extensive IP content reserve, long-term operation strategy and the diversification of literature genres. In addition, Fengdu Novel has made several breakthroughs in its business model; for instance, Fengdu Novel has created a well-rounded distribution model for online literature, introducing more external players into the ecosystem to further enhance the profitability and influence of online literature business.
Through the traditional online literature channels, Fengdu Novel aims to maximize its return by publishing authorized content to the target audience on its platform. In the meantime, it strives to promote its original content and cater to the user demands for fragmented content consumption on social media channels. These initiatives allow Fengdu Novel to fully unfold the value of novels and extend their lifecycle to reach a larger user group.
Along with the development of original online literature, Fengdu Novel is also well-prepared to launch its derivative IP contents. In terms of audiobooks, Fengdu has been collaborating with industry leaders such as Ximalaya (喜马拉雅) and Lanren Tingshu (懒人听书) to expand the market for online literature audiobooks. A series of Fengdu-published novels, such as Three-Thousand-Year-Old Princess (世子妃三千岁), have also been authorized to be adapted into TV dramas. In the future, Fengdu will continue to expand its content ecosystem while focusing on product innovation and new technology.
With the opening up of the IP value chain, the pathway to profitability has become increasingly clear. The well-rounded and bottom-up approach adopted by CooTek allows the Company to make the growth of IP contents more comprehensive, while its constant business innovation makes its growth more sustainable.
Mobile Games Business Ushers in A High Monetization Period
As supported by its excellent front-end operational capability, CooTek has continued to optimize the monetization capability of mobile games business. The stellar performance of CooTek’s hit mobile games products has won universal recognition for the Company from the upper stream suppliers and downstream game studios. Moreover, the diversification of business models and the commercialization capabilities have been greatly improved. By integrating user traffic with the proprietary ad platform, CooTek has become more flexible in converting traffic into profits.
Through strategic investment and cooperation, CooTek has built several outstanding game development teams while forming a full-service chain of game development, game operation and game publishing. For example, after launching Catwalk Beauty, a top-ranking game in more than 50 countries, CooTek’s overseas game studio Smillage has developed a number of hit games, all of which have been widely followed and generating revenue with millions of dollars on a monthly basis. For the second half of 2021, CooTek expects a competitive product pipeline with more than 15 games in the domestic market and more than 20 games in the overseas market under the smooth combination of its internal development and external cooperation.
At the same time, CooTek’s enhanced profitability is also reflected by its long-term exploration and optimization of the IAA (In-App Advertisement) model. By integrating the various monetization tools, the ad bidding mechanism and the distinctive features of mobile games, CooTek is able to fully unleash the value of user traffic.
About CooTek (Cayman) Inc.
CooTek is a mobile internet company with a global vision that offers content-rich mobile applications, focusing on three categories: online literature, scenario-based content apps and mobile games. CooTek’s mission is to empower everyone to enjoy relevant content seamlessly. CooTek’s user-centric and data-driven approach has enabled it to release appealing products to capture mobile internet users’ ever-evolving content needs and helps it rapidly attract targeted users.
For more information on CooTek, please visit https://ir.cootek.com.
For investor enquiries, please contact:
CooTek (Cayman) Inc.
Mr. Robert Yi Cui
ICA Investor Relations (Asia) Limited
Mr. Kevin Yang
Source: CooTek (Cayman) Inc.