The Board routinely monitors risks that could materially and adversely affect YY’s ability to achieve strategic goals, financial condition and results of operations. Through the executive management team, the Board has identified a list of risks related to our business and the market in which we operated. Below is a selection of the risks.
Risks related to our business:
- Our business is based on a relatively new business model that may not be successful.
- Failure to effectively manage our growth or implement our business strategies.
- Become more dependent on revenues from Internet Value-added Services, which may decline in the future.
- Failure to retain existing users and attract new users in online music and entertainment and online games businesses.
- Failure to source new online games, maintain favourable revenue-sharing arrangements, or retain paying users for online games.
- Failure to keep our users highly engaged.
- Failure to compete effectively in the major aspects of our business, resulting in loss of users and advertisers.
- Reliance on third party services and technologies may affect our service, which may result in financial loss and/or loss of users.
Risks related to our corporate structure and industry:
- Potential changes in PRC laws and regulations or interpretations of the laws and regulations.
- Reliance on contractual arrangements with our PRC consolidated affiliated entities and their shareholders for the operation of our business.
- Substantial influence of our existing shareholders may discourage, delay or prevent a change in control of our company.
- Changes in China’s economic, political or social conditions or government policies.
- Content posted or displayed on our platform may be found objectionable by PRC regulatory authorities.
Download the Risk Factors for the full list.