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5	5	The company started its operations in July 2011 when its founders established Beijing Momo in China. In order to facilitate foreign investment in its company, the company incorporated its holding company under the name of Momo Technology Company Limited in the British Virgin Islands in November 2011. In July 2014, Momo Technology Company Limited was redomiciled in the Cayman Islands as an exempted company registered under the laws of the Cayman Islands, and was renamed Momo Inc. The following outlines other major changes to its corporate structure in the past years.
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7	7	* In December 2011, the company established Momo HK, a wholly-owned subsidiary, in Hong Kong.
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28	28	On August 18, 2016, the special committee of its board of directors received a letter from the Buyer Group, stating that the Buyer Group would like to withdraw the non-binding going private proposal with immediate effect.
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30		-==== Business Overview ====
	32	+= Business Overview =
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32	32	The company operate Momo, one of China’s leading mobile-based social networking platforms. The company enable users to establish and expand social relationships based on location and interests. The company's platform includes its Momo mobile application and a variety of related features, functionalities, tools and services that the company provide to users, customers and platform partners. The company also operate a stand-alone video application called Hani, which features the live video content on its core Momo mobile application.
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38	38	The company's Momo mobile application can be downloaded and used free of charge, and the company generate its revenues from the various services the company offer on the Momo platform. The company's revenues increased significantly from US$44.8 million in 2014 to US$134.0 million in 2015 and further to US$553.1 million in 2016. The company currently generate its revenues from live video service, value-added service, mobile marketing, mobile games and other services. The company's live video service, which was launched in September 2015 and allows users to purchase and send in-show virtual gifts to other users hosting live shows, currently contributes to the largest share of its revenues, generating 68.1% of its net revenues in 2016. The company generated 66.5%, 43.6% and 12.2% of its net revenues from value-added service in 2014, 2015 and 2016, respectively, in relation to its membership subscription package that provides members with additional functions and privileges on its platform and, starting in the fourth quarter of 2016, virtual gift service, which allows its users to purchase and send virtual gifts to other users outside of the live video service. Mobile marketing services, mobile games and other services contributed 4.4%, 25.1% and 4.0%, respectively, of its revenues in 2014, 29.0%, 23.2% and 3.3%, respectively, of its revenues in 2015, and 12.0%, 6.4% and 1.3%, respectively, of its revenues in 2016. The company had a net loss of US$25.4 million in 2014, and a net income of US$13.7 million and US$145.3 million in 2015 and 2016, respectively.
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40		-==== The Momo Platform ====
	42	+= The Momo Platform =
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42	42	The company's Momo platform includes its Momo mobile application and a variety of related features, functionalities, tools and services that the company provide to users, customers and platform partners. The Momo mobile application, which is available on Android, iOS and Windows platforms, enables users to establish and expand their social relationships based on locations and interests. Momo offers a personal and lively way for users to discover people nearby, and facilitates the connecting, communicating, interacting, and content sharing with others. Momo features various location and interest-based features, including Nearby functions, live broadcast and others. Communications within its platform are supported by multi-media instant messaging tools. Momo’s social features are increasingly integrated with video functions to offer more fun and entertaining contents and to enhance and encourage social interaction between users.
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150	150	The company's corporate policy requires a user to accept its terms of use during the registration process before becoming a Momo user. In the user agreement, the user makes certain acknowledgments and covenants, including, among others, (i) the user is solely responsible for the authenticity, legality, harmlessness and relevancy of all information submitted for registration purpose or delivered to other users, (ii) the user is not impersonating other people or spreading information in the name of others, (iii) the user alone is responsible for any losses or injuries arising from or caused by the content on its platform and (iv) the user agrees to indemnify it for its losses or injuries arising from or caused by the activities of or content generated by the user.
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152		-**Branding and Marketing**
	154	+= Branding and Marketing =
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154	154	The company primarily attract its users through word-of-mouth and other free channels. The company's brand building activities generally comprise purchasing online advertising in the form of text, banner and video, placing TV commercials, and public relations efforts. In January 2017, the company hosted its Momo Live Broadcasting 2017 Evening of Surprise, featuring A-list celebrities and popular hosts, in Beijing in order to further promote its brand and live video service. The company also acquire users directly through online and offline marketing channels such as search engines, application stores and pre-installations.
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156		-**Customer Service**
	158	+= Customer Service =
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158	158	As of the date of this annual report, Momo has a dedicated team of over 60 customer service personnel in its customer service center in Chengdu, China, who support its viewers and broadcasters of live video service, members and mobile game players. The company's dedicated customer service team is well-trained on its live video service, membership services and mobile games functionalities. For its users who subscribed to its membership services, its customer service personnel provide around-the-clock support through a members-only toll-free phone number and other online communication channels. The company's customer service team helps its members with issues they encounter on its mobile platform, gathers feedback on how to improve its services and receives member complaints and suggestions. The company's customer service team also addresses issues that its mobile game players encounter and gathers player feedback on the functionality and popularity of the mobile games the company offer.
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160		-**Intellectual Property**
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162	162	The company rely on a combination of patent, copyright, trademark and trade secret laws and restrictions on disclosure to protect its intellectual property rights. As of December 31, 2016, the company had four pending patent applications filed with the State Intellectual Property Office of the PRC. The company had registered 132 trademarks and had applied for 154 trademarks with the Trademark Office of the State Administration for Industry & Commerce of the PRC. The company had registered 60 software copyrights and 56 copyrights with the PRC National Copyright Administration. The company had also registered 53 domain names, including immomo.com, wemomo.com, immomogame.com and momocdn.com.
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164		-**Seasonality**
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166	166	Overall, the historical seasonality of its business has been relatively mild due to its rapid growth, but seasonality may increase in the future. Historically, there is noticeable downward trends in user activities as well as revenue growth in the weeks prior to and after the Chinese Lunar New Year. However, seasonal fluctuations have not historically posed significant operational or financial challenges to it, as such periods tend to be brief and predictable. Due to its limited operating history, the seasonal trends that Momo has experienced in the past may not apply to, or be indicative of, its future operating results.
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168		-**Competition**
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170	170	As a mobile social networking platform that also provides live video service, Momo is subject to intense competition from providers of similar services, as well as potential new types of online services.
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172	172	The company's competitors may have substantially more cash, traffic, technical, performer and other resources, as well as broader product or service offerings and can leverage their relationships based on other products or services to gain a larger share of marketing budgets from customers. The company believe that its ability to compete effectively depends upon many factors, including the size, composition and engagement of its user base, its ad targeting capabilities, its pool of popular live broadcasters, market acceptance of its mobile marketing services and online entertainment services, its marketing and selling efforts, and the strength and reputation of its brand. The market in which the company operate is fragmented and highly competitive. If Momo is unable to compete effectively for users or user engagement, its business and operating results may be materially and adversely affected. The company also experience significant competition for highly skilled personnel, including management, engineers, designers and product managers. The company's growth strategy depends in part on its ability to retain its existing personnel and add additional highly skilled employees.
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