Boom of Electronic Publishing in China Joe LI May, 2011

Agenda Overview of Publishers in China 1 E-Publishing in China 2 Trends of E-Publishing in China 3 Apabi and E-Publishing 4 www.apabi.cn

1. Publishers in China GAPP General Administration of Press and Publication of PRC 580 Book Publishers in China 221 Central Publishers and 359 Provincial Publishers 300+K titles/year, new edition 160+K titles/year General Books: 240K, 80% Text Books: 60K, 20% 9851 Periodical 30+ News Press Group 1937 Newspaper Paper’s Revenue 23 billion US$ For more detail, please access website http://www.gapp.gov.cn/cms/html/21/493/201009/702538.html www.apabi.cn

1. Publishers in China Rates of Publishers Social Science&General Science&Technology Academic&Education 1 Commercial Press 1 Science Press of China 1 Tsinghua University Press 2 People's Press 2 Tsinghua University Press 2 China RENMIN University Press 3 People's Literature Publishing House 3 Mechanical Industry Press 3 Peking University Press 4 Writers Publishing House 4 Electronics Industry Press 4 High Education Press 5 Yilin Publishing House 5 Chemical Industry Press 5 People's Education Press …… www.apabi.cn

Agenda Overview of Publishers in China 1 E-Publishing in China 2 Trends of E-Publishing in China 3 Apabi and E-Publishing 4 www.apabi.cn

2. E-Publishing In China Revenue of Electronic Publishing in 2010 11 billion US$ Including Games, Music, Periodical&thesis,eBooks, etc. 90% of Chinese publishers start e-publishing business 600+K eBooks 9000+ e-Periodical 600+ e-Newspaper eBook Reader handset 1.1 millions pieces sold in 2010 www.apabi.cn

eBooks published during 2001-2010 FROM: year 2001: 960 tiltes TO: year 2010: 600+K titles www.apabi.cn

eBooks published during 2001-2010 Some categories eBooks www.apabi.cn

eBook Statistics in 2010 www.apabi.cn

eBook Publishers Publishers comparing year 2009 and year 2010 +19% Publishers who establish e-Publishing department： +27% Publishers whose list selling price is over 20Ms us$： +19% Publishers who sell eBook synchronized： +22% www.apabi.cn

E-Newspaper published in China Oct. 2006: the first e-newspaper website launched by “Zhejiang Daily” in China 2010: 500 E-Newspaper online www.apabi.cn

E-Newspaper houses E-Newspaper Houses comparing year 2009 and year 2010 E-Newspaper Titles: +42% E-Newspaper selling by B2C model： +65% www.apabi.cn

E-Book Readers (Handset) Year 2009: at least 10 manufactures sell eBook Readers in e-Ink screen Year 2010: e-Ink devices are attacked by iPad www.apabi.cn

Roles in E-Publishing industry Roles changes in e-Publishing industry during these 10 years. 2001-2006: Book Publisher, Technical Company, Library, some website 2007-2008: Book Publisher, News Press, Technical Company, Library, Institution, some website 2009-2010: Book Publisher, News Press, Technical Company, Library, Institution, Mobile Carrier, Hardware Manufacture, Traditional Bookstore, Big .COM Company 2009-2010 2007-2008 2001-2006 www.apabi.cn

Agenda Overview of Publishers in China 1 E-Publishing in China 2 Trends of E-Publishing in China 3 Apabi and E-Publishing 4 www.apabi.cn

Trends of E-Publishing in China Industry Confusions: Lots of investing on technical system and platform, BUT ignoring the business model. Parties: Different parties in e-Publishing industry need to find their right role. Confusion Publisher is : Content Provider or Platform Integrator or Distribution Channel? Investment and Return www.apabi.cn

Trends of E-Publishing in China What will happen in the near future? Publishers will be union and collectivized. Publishers need to be partner with technical company. It is outsourcing for midium/small scale publishers. New e-Publishers will come forth. EBook manufactures will open eBookStore. Traditional bookstore will transform to sell e-version. Mobile Carrier is entering e-Publishing industry. More vertical professional database provider. …… www.apabi.cn

No Uniform System for Financial Balance? Trends of E-Publishing in China Problems we are facing: No Standard Format? Price Model? Business Model? No Uniform System for Financial Balance? User Experience? …… www.apabi.cn

Trends of E-Publishing in China Our prospects: League the consortium or union Release the standard Integrated e-Publishing with traditional publishing process closely Plot the strategy for e-Publishing Industry Uniform the market and business model Form the partnership www.apabi.cn

Agenda Overview of Publishers in China 1 E-Publishing in China 2 Trends of E-Publishing in China 3 Apabi and E-Publishing 4 www.apabi.cn

Founder Apabi APABI Author Aim Publisher Paperless Artery Application Buyer By Internet Internet Leading e-Publishing solution provider Publisher’s partner and e-Content provider www.apabi.cn

Founder Apabi Core Technology : CEBX & DRM Released Apabi Reader on Windows, iOS, Andorid system Public CEBX format: Integrated and supported by most eBook hardware and website. Copyrights Protection by DRM solution www.apabi.cn

Founder Apabi E-Publishing Partner A B C D Work with GAPP and MIIT Cooperated with Publisher and News press 4500 libraries and institutes customers B E-Publishing Partner C International Publishers: Penguin，DK，HarperCollins. HKU Press, etc. D “Clouds Service Platform” will be launched soon for consumer market. www.apabi.cn

Joe LI Email: li_jing@founder.com