Taomee Holdings Limited is one of the leading children's entertainment and media company in China with a mission to create exceptional entertainment experiences for children that are fun, safe and trusted by parents. Our strong content development capability, professional knowledge of designing engaging virtual worlds, innovative working culture and broad operating experience in Chinese children's entertainment market allow us to consistently develop a wealth of memorable and iconic characters, images and story lines that resonate and attract a loyal following among children between the ages of 5 and 15 years. Our vision: to become the top children's entertainment and media brand across multiple media formats in China.
As of June 2010, we were ranked as the largest online entertainment community for children in China measured by market share and active accounts, according to iResearch Report. The report also stated that four of the top six most visited virtual children's worlds were from our vast online entertainment community, which can be found at www.61.com. The "Seer" and "Mole's World" virtual communities that Taomee developed are the first and second most visited virtual worlds for children in China according to iResearch Report. Children adopt avatars and immerse themselves into Taomee's virtual world by participating in interactive games and activities set in fantasy landscapes with continually evolving story lines. With a strong track record of creating virtual worlds for children in China, we are eagerly looking to the future.
The Road Ahead
Our success in developing an online entertainment community has translated into growing demand for our content in offline print media, merchandising, television, film and live performances.
We already offer a wide range of children's books and magazines, featuring iconic characters, story lines and images that the company has developed and franchised through partnering with authors and publishers. "Illustrated Handbook 1 of Seers" and "Illustrated Handbook 2 of Seers", two books based on Taomee's franchises were among the top five best-selling children's books sold in 2010 according to Beijing OpenBook, a Chinese leader in information services for the book market.
Licenses of our franchises to leading manufacturers of children's consumer products in China are growing rapidly; such as "Mengniu" in beverages and "Roly China" in apparel. We strongly believe that the demand for licensing our content is significant and to ensure the quality and integrity of our brand and franchises, we make sure to selectively seek out potential partners and enter into (exclusive) licensing arrangements.
In addition, we recently expanded our business into the film and television sector, jointly producing two animated series with over 100 planned episodes and two feature films based on the "Mole's World" and "Seer" franchises, which are expected to be released in 2011. We also stage, along with event organizers, carnivals and live performances featuring its franchises.
Our success is in part due to the effort we put in to reinforce parental trust by creating a safe and enjoyable entertainment environment with wholesome, age-appropriate content and standard-setting security safeguards. As one of the first children's entertainment company in China to launch a separate online monitoring portal, "Taomee Mom," we not only promote the appropriate use of the our virtual worlds, but create a channel in which parents are able to monitor their children's online activities and communicate directly with the our experienced staff.
Robust Technology Platform and Distribution Network
Our online business grew rapidly in part due to the strength of our robust technology platform and targeted distribution network. The reliable and flexible proprietary technology platform we created, coupled with our experienced research teams, allows us to quickly expand the user base, enhance the online experience of users and shorten development cycles. Our distribution network of over 65,000 retail outlets, as of March 31, 2011, were located near schools or other venues that are frequented by its targeted users in over 2,100 towns and cities across 31 provinces in China.