Attention:

Cheetah Global Lab, Cheetah Mobiles mobile internet-focused research institution, is responsible for all
content found in this report. If you excerpt, paraphrase or quote the contents of this report in any forum, please
remember to appropriately attribute Cheetah Global Lab.
About Cheetah Global Lab:
Cheetah Global Lab is Cheetah Mobiles mobile internet-focused research institution. Cheetah Global Lab
conducts research into the mobile internet and big data based on Cheetah Mobiles data resources and data
products, and releases its findings through comprehensive reports and industry summits. So far, Cheetah
Global Lab has released nearly 100 research reports, covering different industry segments, countries and
regions, publishers and case studies, providing internet practitioners with trends and insights into global
markets. Please visit http://lab.cmcm.com/en/ for information and additional reports.

Content of CGL Report

 Chinese App & Game Market Report in Southeast Asia, 2016

Since 2015, Mainland China has been challenged by the loss of demographic dividend. The growth of
Internet users is now experiencing a serious bottleneck. Under such circumstances, an explosive increase in
Internet companies from Mainland China that are seeking expansion overseas has been observed in 2016.
From traditional giants such as BAT that have already taken actions, to small teams that have had a vision of
going overseas since their start-up stage, internet companies in Mainland China are speeding up their entry
into overseas markets.

Additionally, with the critical timing of top-tier policies such as the "One Belt One Road" initiative from Mainland
China and the "New Southward Policy" in Taiwan, the opportunities brought by the global epidemic of smart
phones, and the human factor brought by the explosive increase in the demographic dividend generated from
internet users in Brazil, India and Southeast Asia, the time is right for Chinese mobile internet companies to set
off. Being geographically close to China, Southeast Asia has always been closely connected to China in terms
of culture, history and even religion. This seems to endow Chinese apps and games seeking a foothold in
Southeast Asia with a natural advantage.

Cheetah Global Lab partnered with Libra, the big data platform owned by Cheetah Mobile, to demonstrate,
from a multi-dimensional perspective, the current landscape of mobile markets in Indonesia, Thailand,
Malaysia, the Philippines, Singapore and Vietnam, as well as the performance of Chinese mobile internet
companies in these 6 countries, in order to figure out the kind of products suitable for Southeast Asia countries.
Hopefully this could serve a basis reference and provide help for mobile Internet professionals.

Note: Chinese companies and apps in the report refer to those based in Greater China.
 Content

I. Why go to Southeast Asia? .................................................................................................................... 1

1. Internet industry in Southeast Asia demonstrates great development potential. ............................ 1

2. Southeast Asias geographical advantage...................................................................................... 2

II. Overview of Chinese companies journey to Southeast Asia ................................................................. 3

1. Percentage of Chinese apps among the Top 200 List in the 6 Southeast Asian countries. ............ 3

2. Percentage of Chinese apps among the Top 200 List in the 6 Southeast Asian countries. ............ 4

III. Southeast Asia regional market analysis .............................................................................................. 6

1. Indonesia........................................................................................................................................ 6

Indonesian App market: e-commerce market with great potentials ............................................. 7

Game market in Indonesia - Where catering to preferences of dominant young users ensures
great success ............................................................................................................................ 13

2. Thailand ....................................................................................................................................... 15

Thai app market: Chinas music apps top the list ahead, surpassing Googles ......................... 15

Game market in Thailand - With gambling banned, casino games have been the big winner .. 19

3. Malaysia ....................................................................................................................................... 21

Malaysian App market - Where Chinese apps take the highest market share .......................... 22

Game market in Malaysia - Cute casual games are the favorite. .............................................. 26

4. The Philippines ............................................................................................................................. 29

Philippine app market: Everyone is the artistic" youth who adores photography and music the
most .......................................................................................................................................... 30

Game market in the Philippines - Arcade games and action games are equally popular and so
are games with excellent visuals. .............................................................................................. 33

5. Singapore ..................................................................................................................................... 37

Singaporean App market - Mature app market with a comprehensive range of categories ...... 37

Game market in Singapore - Where strategy games become the favorite and Casino games
 from Taiwan stand out ............................................................................................................... 40

6. Vietnam ........................................................................................................................................ 43

App market in Vietnam: Proportion of entertainment apps the highest among the 6 countries . 44

Game market in Vietnam - Where casual games dominate the market and mobile games
generate the highest revenue among the 6 countries. .............................................................. 46
I. Why go to Southeast Asia?

1. Internet industry in Southeast Asia demonstrates great development potential.

Growth rate of internet users in G20, 2015

60.0% 51.9%
50.0%

40.0%

30.0%

20.0% 14.7%
11.5% 11.1%
5.9%
10.0% 4.6% 1.8%1.7%1.8%2.1% 4.0%2.6%1.3%4.0% 4.0%2.9%
0.1%1.2% 0.8%
0.0%

Data source: Research Report on G20 Internet Development

Data from the Research Report shows, Mainland China is now facing the loss of demographic dividend, and
the growth of Internet users has come to a halt.

However, the growth potential of mobile internet in Southeast Asian countries is starting to become evident.
According to a joint research conducted by Google and Singapore Temasek Holdings in May this year, the
number of internet users in Southeast Asia is predicted to increase from 260 million to 480 million by 2020, with
Indonesia, the largest economy in the region, showing the fastest rate of growth. In the next decade, the
internet economy in Southeast Asia will grow fivefold to 200 billion US dollars, with online shopping, game and
advertising being 3 major areas of growth.

As consumers gradually get used to website browsing and online shopping with smartphones, the e-commerce
scale in the region is likely to reach 88 billion US dollars in the year 2025, representing a 15-fold growth as
compared to the present situation.

1
2. Southeast Asias geographical advantage

China and other countries in Southeast Asia are geographically connected. In additional to geographical
proximity, China also shares close economic ties with Southeast Asia. The geographical advantage gives
Chinese companies three great advantages when setting their sights on Southeast Asia. First, all countries in
Southeast Asia more or less tend to give Chinese companies preferential policies, such as tax holidays and tax
credits, in order to attract investment into the country; second, labor cost in Southeast Asian countries is
relatively cheap; third, the cost of expatriates has also been lowered given the proximity in terms of
geographical location and living habits as well as the relatively low consumption level.

These three factors have greatly reduced the cost of expanding to Southeast Asia for Chinese companies and
have made the journey more possible. While Chinese companies used to focus on taking utility Apps overseas,
now the products shifted to more content Apps. For Chinese companies, many apps that require in-depth
localized operations, such as social and shopping ones, are cheaper to develop in Southeast Asian countries
due to the geographical advantages mentioned earlier.

2
II. Overview of Chinese companies journey to Southeast Asia

1. Percentage of Chinese apps among the Top 200 List in the 6 Southeast Asian
countries.

Chinese apps in the Top 200 List in each

country
80
71
70
59
60 56 56
54
50
50

40

30

20

10

0
Malaysia The Indonesia Singapore Thailand Vietnam
Philippines

Note: Top lists ranked by weekly active penetration rate of each app in each country, period of data: Nov. 21, 2016 ~ Nov. 27, 2016, data
source: libra

As far as the numbers are concerned, Chinese apps made up around 30% of the Top 100 List in the 6
Southeast Asian countries.

Among the Chinese apps that entered the Top 200 in each country, the top 2 were utility tools and photography.
Utility tools and photography apps are both very suitable for an overseas move, because firstly, it is easiest to
overcome cultural barriers as they require little interactions from users to use smoothly; secondly, localized
operations based on native languages is not necessary for these apps. Therefore they can open up the local
market even if the corporate HQ is not located there. For example, Cheetah Mobiles Clean Master and
Camera360 by Pinguo technology, as well as YouCam Perfect and YouCam Makeup from Taiwan Perfect Corp.
are all excellent cases of apps successfully going overseas. Utility tools and photography apps remain the
most suitable apps to launch on overseas markets.

The number of Chinese apps among the Top 200 List is highest in Malaysia, which means that Malaysia is the
most suitable destination for Chinese apps in the 6 countries. This is due to the tax benefits on technological
3
innovation provided by the Malaysian government, as a 5-year tax-free benefit is provided upon satisfaction of
specified criteria. Meanwhile, since Chinese is one of the 3 major languages in Malaysia, some of the apps that
involve linguistic interactions are also performing quite well, such as social and music apps.

2. Percentage of Chinese apps among the Top 200 List in the 6 Southeast Asian
countries.

Games from China in the Top 200 List in Each

Country
35
32
29 29
30
27
26
25

20

14
15

10

0
Malaysia The Thailand Indonesia Singapore Vietnam
Philippines

Note: Top lists ranked by weekly active penetration rate of each game in each country, period of data: Nov. 21, 2016 ~ Nov. 27, 2016, data
source: libra

Data shows that game markets in the 6 countries of Southeast Asia are currently dominated by games from US
and Europe. Among the Top 200 List in these countries, games from China took up around 13.5%.

Among the apps from Mainland China, Piano Titles 2 by Cheetah Mobile has performed well in all countries
due to its easy operation and excellent game experience. Some products from Taiwan companies are also
doing well in different regional markets. For example, the FaFaFa-Real Casino Slots developed by
International Games System Co., Ltd. from Taiwan ranked number 8 in Singapores top grossing games as the
most popular casino game in the country; Tricky Test 2 from Taiwan mobile game developer Orangenose
Studios has also become a hit in the Philippines, Indonesia, and Malaysia.

There are relatively fewer Chinese games in the Top 100 games in Vietnam. This might due to the rather
stringent regulations on game publishing licenses in Vietnam, where 6 to 9 months are required to obtain a
license for a game. At the same time, the Vietnamese government also imposes more strict regulations on
4
mobile games as compared to the Chinese government. And yet, this means that the game market in Vietnam
remains an unexplored area for China. If Chinese games can cater to Vietnamese users preferences through
well-grounded research and properly deal with the regulatory requirements in Vietnam, there is still a
considerable space for growth in the Vietnamese market.

5
III. Southeast Asia Regional Market Analysis

1. Indonesia

As Indonesia does not have the best Internet penetration rate among Southeast Asian countries, it is still a
potential powerhouse of Internet users worthy of attention, given its massive population base and its position
as the largest emerging economy in the region. Therefore, the mobile internet market in Indonesia is always
included in the strategic roadmap of global internet giants, Chinese internet business going overseas, and
internet start-up companies based in Southeast Asia.

Like India, Indonesia, as a latecomer to the internet world, had never experienced a mature and complete
stage of Internet development before directly moving into the age of mobile internet..

Data from eMarketer shows that the number of smart phone users in Indonesia in 2015 increased by 26.6%
compared to the previous year, and reached 52.2 million. The relatively cheap price of smart phones and
Indonesians particular favor for mobile technology are both drivers to the development of Indonesian mobile
internet.

In Indonesia, the top three most frequently used apps on daily basis are all communication apps. While popular
real-time communication softwares from all over the world are gathered here, BlackBerry Messenger (BBM), a
Blackberry mobile social platform, tops the list of communication apps and the most active apps of the day.

6
Indonesian App market: e-commerce market with great potentials

Top 200 Apps in Indonesia by category

Utility Tools
32
39 Photography
Communication
8 Business and Office
Social
9
Books/Reference books
10 27 News and magazines
Personalization
10
Shopping
11 Music
26
13 other
15

Top 200 Apps from China List in Indonesia

25 23

20
15
10 8 7
5
5 3 3 2 1 1 1 1 1
0

Note on data: Top lists ranked by weekly active penetration rate of each app in Indonesia, period of data: Nov. 21, 2016 ~ Nov. 27,
2016, source of data: libra

There were, in total, 56 apps listed in Indonesias Top 200 apps, almost half of which 23 were utility tool apps.
Of these apps, 55 are from companies based in Mainland China, and the remaining 1 is YouCam Makeup from
Perfect Corp, a company from Taiwan.

On the other hand, the real-world situation is that Indonesia is a "nation of a thousand islands" featuring
7
numerous volcanoes and frequent earthquakes. For this reason, the distribution of Indonesias 258 million
populations is concentrated on only a few islands. The crowded population sets higher demands for the
transmission rate on internet infrastructure. Apart from a few important islands such as Phuket, Kalimantan,
and Sumatra where the Internet has been relatively well developed, most Indonesian users are using
expensive and ineffective networks. This means that users needs, including transmission and conservation of
data, are rigid demand. Maybe this is exactly the background against which ShareIt, that focuses on data-free
transfers and US browsers optimized for data saving, have gained popularity in Indonesia.

Average no. of
Active
Rank list App Name Type opening/person/w Publisher
penetration
eek

13 UC Browser Communication 26.64% 43.23 Alibaba Group (UC)

15 SHAREit Tools 22.84% 10.35 Lenovo Technology

Note on data: active penetration rate = number of weekly active users of the app/weekly active users on Android in Indonesia, period of
data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

Additionally, photography apps, especially those with skin beautifying effects, have achieved outstanding
performances in Indonesia. In Indonesia, Photo Grid, Camera 360, BeautyCam and MakeupPlus, that have
had huge success in mainland China, and YouCam Makeup from Taiwan, are all doing a good job. This also
supports the conclusion that Cheetah Global think tank arrived at in the 2016 Global App Development Report:
that Indonesia is the country that loves selfies the most.

8
 Average no. of
Rank list App Name Type Active penetration opening/person/we Publisher
ek

16 Photo Grid Photography 20.22% 17.625 Cheetah Mobile

27 Camera360 Photography 7.59% 14.625 Pinguo Inc.

43 BeautyCam Photography 4.34% 17.43 Meitu Corporation

93 MakeupPlus Photography 1.44% 20.41 Meitu Corporation

134 fotorus Photography 0.75% 32.05 Fotoable,inc.

Youcam Perfect Corp.

145 Makeup Photography 0.65% 12.65 (Taiwan)

Note on data: active penetration rate = number of weekly active users of the app/weekly active users on Android in Indonesia, period of
data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

What is more noteworthy is the appearance of three social apps in the list. Social apps were considered
unsuitable for an overseas move in the past. However, the social apps from China have also been hugely
successful in foreign countries. Musical.ly is becoming increasingly popular in North America and has attracted
many online celebrities. Its approach of socialization based on mini-videos has also appealed greatly to young
users and therefore has been quite successful in Indonesia as well.

Average no. of
Active
Rank list App Name Type opening/person/w Publisher
penetration
eek

53 BIGO LIVE Social 3.13% 68.09 YY Inc.

114 musical.ly Social 1.06% 48.19 musical.ly

180 Nonolive Social 0.50% 25.07 Tang Internet Technology

9
 Note on data: active penetration rate = number of weekly active users of the app/weekly active users on Android in Indonesia, period of
data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

This was the year that live streaming in China really took off. During the peak period, there were as many as
200 live streaming platforms on the Chinese market, thus making the Chinese live streaming industry the
global leader. In the internet industry, there is a saying that "the faster rival beats the slower". Live streaming
from China, which moves one step earlier than the rest of the world, is bound to be exported overseas. BIGO
LIVE and nonolive are among the representative cases.

BIGO LIVE is developed by BIGO Technology Pte. Ltd., which is an independent firm based on the previous
new mobile product division of YY Inc. It can also be viewed as the product designed by YY Inc. specifically for
exporting overseas. Its real-time skin beautification and other functions are particularly popular among young
Indonesian users. Currently, BIGO LIVE is the number one social live streaming app in Indonesia.

Musical.ly is a mobile mini-video community which allows users to quickly and easily create 15-second videos
with amusing music to share with friends. Currently it is one of the most popular social apps in Europe and
America. Owing to its innovative approach to socialization, musical.ly has also attracted attention from young
Indonesians and become very popular among this group.

Another important element of the Indonesian market is e-commerce.

According to a report from Morckting, the Indonesian e-commerce market will increase by 50% in the future,
and by 2020, the market value of which is predicted to reach 130 billion US dollars, making it the third largest
Asian e-commerce market, following closely behind China and India.

Right now, the Indonesian e-commerce market is at a similar stage to the Chinese e-commerce when it first
started to emerge, and the platform has not been fully established. Most distributors are using social networks
to promote their products.

Compared to other emerging economies in Asia, Indonesia shows greater potential in e-commerce. By 2020,
the market value of the e-commerce market in this archipelagic country is likely to reach 130 billion US dollars,
making it the third largest Asian market behind China and India.

Apart from this, as the infrastructure in Indonesia is underdeveloped and there are fewer supermarket and
stores, strategies such as "mobile goes first" have provided substantial opportunities for the development of
mobile e-commerce in Indonesia. While Indonesian consumers are still prudent about online payment and
retailers, we believe that in the future, as the Indonesian e-commerce market becomes mature, the
consumption concept of the local people will start to change just as it did in China. Online payment will not
become an impediment to the development of Indonesian e-commerce.

10
There were 9 e-commerce apps in the Top 200 list in the Indonesian app market; that number was higher than
in all the other 5 countries. While the only shopping app from China among the list was LAZADA, as acquired
by Alibaba, it ranked number one on the list.

11
 Shopping apps among the Top 200 list in Indonesia

Average no. of
Rank list App Name Active penetration Publisher
opening/person/week

48 LAZADA 3.94% 15.44 Alibaba Group (LAZADA)

50 OXL 3.46% 58.4 Olx Indonesia

51 Tokopedia 3.32% 53.54 Tokopedia

66 Bukalapak 2.21% 29.75 Pt Bukalapak.com

73 Shopee 2.05% 60.51 Shopee

82 Telkomsel 1.85% 4.77 Telkomsel

156 Elevenia 0.59% 16.87 Xl Planet

159 Zalora Fashion 0.58% 7.97 Zalora South East Asia Pte Ltd

170 Belanja Online 0.53% 13.14 Blibli.com

Note on data: Top lists ranked by weekly active penetration rate of each app in Indonesia, period of data: Nov. 21, 2016 ~ Nov. 27, 2016,
source of data: libra

It seems that Alibaba has already pinpointed Indonesia of the future as a country of strategic importance. On
April 12th this year, Alibaba spent 1 billion US dollars on the controlling stake of the largest e-commerce
company in Southeast Asia, LAZADA. With the help of LAZADA, Alibaba has successfully connected
Southeast Asian consumers and Chinese products, thereby creating another export channel for products made
in China.

According to data from libra, the top 6 countries ranked by number of active users of LAZADA were precisely
the 6 Southeast Asian countries mentioned in this article. Among the active users, 1/3 was from Indonesia.

LAZADA Distribution of weekly active users by country

Ranking Country Active penetration

1 Indonesia 31.51%

2 The Philippines 21.06%

3 Thailand 19.89%

12
 4 Malaysia 14.25%

5 Vietnam 11.67%

6 Singapore 1.05%

Period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

Game market in Indonesia - Where catering to preferences of dominant young users ensures great
success

Top 200 Games in Indonesia by category

Casual game
19
36 Arcade game
6
6 Action game
7
Racing game
13 Sports game
29
Puzzle game
15
Simulation game
Strategy game
17
27 Adventure game
25 Education game
other

Top 200 Games From China List in Indonesia

7 6
6
5
4 3 3 3 3 3 3
3 2
2 1 1 1 1 1 1
1
0

Note: Top lists ranked by weekly active penetration rate of each game in Indonesia, period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source
of data: libra

13
According to statistics from Niko, while the mobile game market in Indonesia was valued at only 11 million US
dollars in 2013, there were a total of 24 million game players in the country with a regular tendency of paying
for the games. In Indonesia, in-app purchases are very common in free game apps.

Indonesia is one of the major destinations where Chinese apps are exported. According to libra, there were 27
games in total that entered the Top 200. Action game is the most popular one in Indonesian.

Among them, the performance of Crisis Action has been particularly eye-catching. This might be related to
conditions such as that Indonesia has the 4th largest population in the world and that internet users are in
general on the lower end of the age spectrum.

Active Average no. of

Rank list App Name Type Publisher
penetration opening/person/week

Yingxiong
21 Crisis action Action game 1.11% 31.41
Entertainment

Note on data: active penetration rate = number of weekly active users of the game/weekly active users on Android in Indonesia, period of
data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

Crisis Action, developed by Yingxiong Entertainment, is renowned for being the worlds first mobile e-sports
first-person 3D shooter game. It focuses on combat and requires relatively advanced levels of skills and
strategies from players. The intense and thrilling game experience is perfectly suited to young Indonesians
preferences. Meanwhile, Crisis Action has also introduced the concept of e-sports mobile games by
encouraging players to form combat teams within the game. The emphasis on team coordination has also
elicited a sense of identification among most of the young users. Another factor that boosts the popularity of
Crisis Action is the great number of online and offline competitions organized by Yingxiong Entertainment,
which offer generous bonuses to the winners.

Therefore, Crisis Action has achieved considerable success in Indonesia as the locals favorite action game.

Chinese publishers seeking to enter Indonesia market may focus on the fact that most Indonesian internet
users are young people so it is better to introduce exciting and stimulating games accordingly.

14
2. Thailand

Thailand is recognized by the World Bank as "an economy with middle-to-upper level income". Its economic
performance has been particularly remarkable against its unstable political environment and frequent natural
disasters in recent years. The Thai governments continued investment in mobile infrastructure has generated
preliminary results, and real demand on apps from its domestic mobile users is becoming evident.

According to the latest research report on 2016 Thailand Internet User Behavior published by the Thailand
Electronic Transaction Development Agency (ETDA), due to the penetration of smartphones and commercial
4G services, Internet usage time via mobile devices by Thai users increased by around 9% in 2016, reaching
approximately 6.2 hours. YouTube, Facebook, and Line were the social media platforms that were the most
visited.

According to the report, 70% of Thai users suggested that network delay was the greatest problem they faced,
followed by 26% who indicated that data charges were too expensive, and 21% who believed that the network
coverage in Thailand was inadequate. While the Thai mobile industry shows a less developed hardware aspect,
it shows a very promising development trend.

Thai app market: Chinas music apps top the list ahead, surpassing Googles

15
 Top 200 apps in Thailand by category
Utility Tools
Photography
34 Communication
53
Efficiency
7
Entertainment
7
8 Social
8 Finance
25
11 Personalization
12 Video
17 18
Music
Other

Chinese Apps in the Top 200 List in Thailand

30
25
25
20
15 12
10 6
5 3 2 2 1 1 1 1
0

Note on data: Top lists ranked by weekly active penetration rate of each app in Thailand, period of data: Nov. 21, 2016 ~ Nov. 27, 2016,
source of data: libra

There were 54 Chinese apps on the Thai Top 200 list in total. 53 of them were from Mainland China, and
YouCam Makeup was from Taiwan. Most of them were tool and photography apps.

Thailands mobile industry is on the rise, as the penetration of smartphones and user demands for tool and
photography apps are both increasing. Importantly, these are precisely the two app categories which Chinese
companies are good at exporting.

Apart from these categories in which Chinese Apps have a competitive edge, there were 2 apps that ranked
very high on the list.

16
 Average no. of
Rank list App Name Type Active penetration Publisher
opening/person/week

QQ
14 JOOX Music 11.91% 24.56 Tencent
Music

Note on data: active penetration rate = number of weekly active users of the app/weekly active users on Android in Thailand, period of data:
Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

The first one is Tencents music app, JOOX Music. JOOX Music is developed by Tencent specifically for
entering the overseas music market. Users can log into use JOOX to access a music library of over 1 million
songs with WeChat ID or Facebook ID. A JOOX Premium membership subscription offers privileges such as
online on-demand broadcasting, offline listening, ad removal, and enhanced sound quality. Currently JOOX
Music is ranked number one among music apps in terms of active penetration rate in Thailand, and is ahead of
Google Play music.

Trend of daily active penetration rate for JOOX and Google Play music in Thailand, period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source
of data: libra

Active Average no. of

Rank list App Name Type Publisher
penetration opening/person/week

32 LAZADA Shopping 4.63% 10.77 Alibaba Group (LAZADA)

17
 159 Aliexpress Shopping 0.43% 17.60 Alibaba Group (HK)

Note on data: active penetration rate = number of weekly active users of the app/weekly active users on Android in Thailand, period of data:
Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

Secondly, the performance of shopping app LAZADA, as acquired by Alibaba, has been rather remarkable in
Thailand. Currently LAZADA ranks top in terms of the active penetration rate among all shopping apps in
Thailand.

A relatively well-developed ecosystem has been established in Thailand, in which electronics, health and
beauty, and fashion products are the best-selling categories. The Thai e-commerce market possesses great
potential. Earlier in April of this year, Chinese e-commerce giant Alibaba acquired LAZADA. In the following
months, it offered support and made adjustments to the company from various aspects including logistics,
payment, finance and management level. The CEO of LAZADA Thailand, Alessandro Piscini, revealed that
LAZADA would benefit from Alibabas big data platform, which could help sellers to understand product
information and consumer behaviors in order to adjust how they run their own businesses.

In the current shopping industry in Thailand, the active penetration rate of LAZADA is more than 3 times that of
Kaidee, which sits in 2nd place.

Trends of daily active penetration rate for LAZADA and Kaidee in Thailand, period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data:
libra

18
Game market in Thailand - With gambling banned, casino games have been the big winner

Top 200 games in Thailand by category

Casual game

24 Action game
35
Arcade game
9
Sports game
9
Puzzle Game
10
33 Role playing game
10 Racing game

13 Simulation game
Strategy game
15 25
17 Casino game
Other

Top 200 Games from China List in Thailand

6
5 5
5
4 4
4
3 3
3
2
2
1 1 1
1
0

Note on data: Top lists ranked by weekly active penetration rate of each app in Thailand, period of data: Nov. 21, 2016 ~ Nov. 27, 2016,
source of data: libra

There were 29 games from China in Thailands Top 200 games list. Among them, casino and action games
took up the highest proportion.

While most of the games on the list were casual games, it seems that Chinas casino games have been
particularly popular in Thailand.

19
 5 games from Boyaa Interactive

Active Average no. of

Rank list App Name Type Publisher
penetration opening/person/week

Boyaa
15 Casino game 1.44% 20.47
Interactive

Boyaa
31 -- Casino game 0.76% 14.70
Interactive

Boyaa
59 - 1 Casino game 0.34% 39.95
Interactive

Boyaa
61 Casino game 0.33% 11.09
Interactive

Boyaa
192 - Casino game 0.10% 13.13
Interactive

Note: active penetration rate = number of weekly active users of the game/weekly active users on Android in Thailand, period of data:
2016.11.21~2016.11.2 , source of data: libra

The 5 Chinese casino games among the Top 200 list are all from Boyaa Interactive. It is a game developer and
operator from Shenzhen China and most of the companys games are chess games. Boyaa Interactives
competitive advantage in going overseas lies in its outstanding game localization ability, by which it repackages
the game with the local language and adapts the game to local cultural and market demands. For example, its
Boyaa Texas poker have 21 language versions.

Boyaa Mobiles overseas experience suggests that, in addition to its strong localization ability, mastering
knowledge of user habits is just as important. Boyaa Interactives marketing director suggested that "In
Thailand everyone gambles." About 79% of the 67 million people in the country shows a preference for
gambling. However, a few years ago the Thai government banned gambling, and abolished all gambling
activities except lottery and horse racing. Therefore, in todays Thailand, gambling has moved away from public
sight to the underground, and from offline activity to online games. Boyaa Interactive took advantage of the
prohibition of gambling.

20
3. Malaysia

The mobile industry is relatively sound in Malaysia, where all major cities are covered by 3G, and in some
specific areas even 4G services is also available. In addition, Wi-Fi has covered basically all the large cities,
with the coverage rate gradually improving in the suburban areas. Restaurants or cafes offering wireless
networks can always be found nearby. According to data from YeahMobi, there are about 21.35 million internet
users in Malaysia. The mobile internet penetration rate has reached 70%. Females account for 59% of mobile
internet users as the dominant group, whereas males take up the rest (41%). In addition, Malaysia has the
youngest mobile internet user population in Southeast Asia, as 79% of the users ages are below 35. This
derives from a considerable internet demographic dividend.

Based on libras data, the user conditions in general suggest that Malaysian users favorite real-time
communication app is WhatsApp, whose active penetration rate of 82.26% is also the highest in Malaysia. The
social platforms used most frequently by users in Malaysia are Facebook, Instagram and Google+. Their
respective active penetration rates are 68.89%, 36.20%, and 10.74%.

The widely spoken Chinese language represents one of the favorable conditions for Chinese apps
development in Malaysia. Language is usually believed to impede cultural exchange, as the language barrier
easily leads to cultural estrangement and brings multiple difficulties to the outbound journey for content-based
app products. While Malay is the official language in Malayia, Chinese is the one of the main languages as
there is a large population of Malaysian Chinese there.

21
Malaysian App market - Where Chinese apps enjoy the highest market share

Top 200 games in Malaysia by category

Utility Tools
Communication
36
45 Photography
Efficiency
6
Social
7
Music
7
8 26 Personalization
Video
12
Shopping
12 22
19 Life and fashion
other

Top 200 Apps from China List in Malaysia

35

29
30

25

20

15
12

10
7
5
5 3 3 3
2 2
1 1 1 1 1
0

Note: Top lists ranked by weekly active penetration rate of each app in Malaysia, period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of
data: libra

There are totally 71 apps from China that got to the Top 200 app list in Malaysia. The number was the highest
22
in the 6 countries. 64 of them are from Mainland China, with another 7 apps including SenseHome, YouCam
Perfect, YouCam Makeup and English-Chinese dictionary developed by HTC , Perfect Corp. and Bravolol from
Taiwan, respectively.

Chinese apps accounted for around 35% of the apps on Malaysias Top 200 list and their remarkable
performance indicates that Malaysia is a suitable destination for Chinese apps exporting overseas.

Given all the above-mentioned reasons, Chinese music, social, and communication apps are also quite
successful in Malaysia along with their tools and photography categories in which China has been strong.

Average no. of
Active
Rank list App Name Type opening/person/we Publisher
penetration
ek

18 JOOX Music Music 10.88% 38.03 Tencent

47 Kuwo Music HD Music 2.91% 14.30 Kuwo Music

111 Kuwo Music player Music 0.98% 16.39 Kuwo Music

Note on data: active penetration rate = number of weekly active users of the app/weekly active users on Android in Malaysia, period of data:
Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

For music apps, apart from JOOX Music we mentioned above, Kuwo music, especially its HD version has been
doing quite well in Malaysia. Kuwo music HD is a dedicated music player app for Android tablets. According to
backstage data from libra, most of the Kuwo music HD users are from Malaysia.

23
 Kuwo music HD Distribution of weekly active users by country and region

Ranking Country Active penetration

1 Malaysia 78.11%

2 Singapore 7.54%

3 Taiwan 2.53%

Hong Kong Special

4 2.04%
Administrative Region

5 South Korea 1.72%

6 Indonesia 1.49%

7 USA 1.26%

8 Japan 1.16%

9 Thailand 0.67%

10 China 0.58%

Period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

The reason may be that tablets are very popular in Malaysia. The YeahMobi report shows that apps of the HD
version are likely to be well received for the popularity of tablets in Malaysia.

Rank list App Name Type Active Average no. of Publisher

penetration opening/person/week

69 BIGO LIVE Social 1.86% 58.60 YY Inc.

121 musical.ly Social 0.90% 54.72 musical.ly

132 Weibo Social 0.73% 62.88 Sina

24
Note: active penetration rate = number of weekly active users of the app/weekly active users on Android in Malaysia, period of data: Nov.
21, 2016 ~ Nov. 27, 2016, source of data: libra

Social apps from China are also performing well in Malaysia. Besides BIGO LIVE and musical.ly that
mentioned earlier, Weibo, which is very familiar to Chinese users, accounts for a popular app. According to
data from the Cheetah global think tank, the number of Weibo users from Malaysia is even greater than that
from HK in terms of distribution by country and region.

Ranking Country Active penetration

1 China 94.38%

2 Taiwan 2.81%

3 Malaysia 0.86%

Hong Kong Special

4 0.70%
Administrative Region

5 Vietnam 0.26%

Period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

This may be related to the massive Chinese population in Malaysia. Given that many people speak Chinese
there, social and content apps in Chinese language seem to enjoy an inherent advantage.

Apart from these apps, other apps from China that are doing well for the language context in Malaysia fall into
the communication category. For example, the app that rules in China, WeChat, has its second largest user
group in Malaysia. Meanwhile, in Malaysia WeChat is also the number three communication app ranked by
active penetration rate, only next to Messenger and Chrome browser. In fact, it ranks higher than that of Gmail.

25
Game market in Malaysia - Cute casual games are the favorite.

Top 200 Games in Malaysia by category

Casual game

26 Action game
31
Arcade game
6
8 Puzzle Game
Sports game
10 28
Racing game
11
Strategy game

15 Simulation game
23
Casino Game
20 22 Education game
other

Top 200 Games from China List in Malaysia

7 6
6
5
4 3 3 3 3 3 3
3 2
2 1 1 1 1 1 1
1
0

Note: Top lists ranked by weekly active penetration rate of each game in Malaysia, period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of
data: libra

Malaysia is another major gathering point for Chinese games exporting overseas. There were in total 32
games in the Top 200 list. Among them, 30 are from Mainland China, and the other 2 are developed by Taiwan
developer International Games System Co., Ltd.

Similar to the situation in Indonesia, action games from China are the most popular Chinese games among
Malaysian users.

26
According to YeahMobis report, the revenue scale of the Malaysian game market will reach 268 million US
dollars in 2015, and is expected to reach nearly 400 million US dollars in 2017. There are 3 major payment
methods in Malaysias game market: Prepaid card, Online banking, and Alipay.

Payment
Introduction
Mode

Prepaid
Most common method of paying for games, can be purchased at convenience stores
card

Online Top-up and payment via online banking is also common. Influenced by Chinese culture,

banking online banking services provide by some banks from China are available. Major banks
supporting the service include: Malaysian bank Maybank, Bank of China, China
Construction Bank, RHB, CIMB, Bank of East Asia, etc.

Alipay If you use Alipay online banking transactions, use Malaysian bank cards to pay via
third-party payment organization, Revenue.

Malaysia and Indonesia are similar in that young users dominate the game market, as most players are
between the age of 16 (and under) and 36. Therefore, addressing the demands of young users will deliver
good results. Crisis Action, the action game that we mentioned above, has its second largest user group in
Malaysia.

Average no. of
Active
Rank list App Name Type opening/person/we Publisher
penetration
ek

11 Crisis action Action game 1.73% 32.79 Yingxiong Entertainment

Zhu Lai Le (Pig

22 Casual game 0.76% 63.39 vanggame
is coming)

Note: active penetration rate = number of weekly active users of the game/weekly active users on Android in Malaysia, period of data: Nov.
21, 2016 ~ Nov. 27, 2016, source of data: libra

In addition, the user habits of Malaysian resembling those from Taiwan and therefore Malaysian users also
27
enjoy cute Japanese-style visuals.

In addition to the intense Crisis Action, another game worth noting is Zhu Lai Le from Shenzhen Vanggame. It
is a casual game with social elements. Users can log on via Facebook to play this deeply socializing game
featuring cute animals. A luck draw wheel system, island building system, mine digging system, and ranking
system have been integrated into the game. With Facebook Friends Ranking and a pet system, players can
enjoy a multi-tiered social experience for more fun interaction, such as bombarding friends, taking revenge,
publishing wanted posters, stealing, and gift-giving.

Zhu Lai Le Distribution of active users by country and region

Ranking Country Active penetration

1 Taiwan 66.69%

2 Malaysia 29.61%

3 Singapore 2.50%

Period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

This game primarily targets Chinese-language markets, with its main users mostly from Taiwan, followed by
Malaysia and Singapore.

Currently, there is no official authority in Malaysia regulating online games. However, there are a few factors to
note when exporting games to Malaysia. The first one is religion. Malaysia is a country of religious pluralism
and Islam is its state religion. Given the substantial authority the religious bureau has, game publishing must
comply with religious rules to avoid intervention. Secondly, tablets are very popular in Malaysia and therefore
the adaptation for tablets is important.

28
4. The Philippines

Since Philippine President Duterte came into power this year, the previously frozen relationship between
Mainland China and the Philippines has quickly heated up and now entered the honeymoon stage. As a result,
the Philippine market has received a lot of attention. Overall, as a developing country and one of the emerging
markets, while the Philippines has demonstrated fast economic growth, there is still a profound gap between
the rich and the poor. It is listed by the World Bank as a low-to-middle income county and the percentage of
families living in poverty is still above 60%.

According to YeahMobis report, the internet penetration rate in the Philippines is around 46%, where users
spend on average 6 hours online per day. However, network speed is rather slow in the Philippines, where the
average speed of 2.5Mbps is only higher than that in India.

Philippine young people tend to use mobile internet more often. Philippine users aged between 18 and 24
account for 36% of mobile internet users, which is 8% higher than the Southeast Asian average. Among mobile
internet users, 40% are inclined towards using English, whereas the rest (60%) prefer Filipino.

According to a survey, 98% of mobile users in the Philippines watch advertisements, and 88% suggest they
welcome mobile ads. Most Philippine people like the mobile ads that can help them download apps, and ads
promoted through social platforms and search engines have been very effective.

Data from libra suggests that Facebook, Instagram, and Google+ are the most frequently used social platforms
among Philippine users. Their respective active penetration rates are 82.88%, 23.37%, and 11.76%. Facebook
is also the app that Philippine users love the most. In the Philippines, Google is the most frequently used
search engine, and the active penetration rates for Google and Chrome are 49.79% and 46.56%, respectively.

29
Philippine app market: Everyone is the artistic" youth who adores photography and music the most

Top 200 Apps in the Philippines by category

Utility Tools

22 Photography
5 44 Communication
7
Efficiency
9
Personalization
12 Social
28 Music
12
Video
17 Books/Reference books
25
19 News and magazines
Other

Top 200 Apps from China List in the

Philippines
25 23

20
15 12
10 8
5
5 3 2 2 1 1 1 1
0

Note: Top lists ranked by weekly active penetration rate of each app in the Philippines, period of data: Nov. 21, 2016 ~ Nov. 27, 2016,
source of data: libra

According to libra data from Cheetah Mobile, there were 59 apps in the Top 200 list in Malaysia. This number
came in second place among the 6 countries. 57 of these apps come from Mainland China, and 2 are from
Perfect Corp. in Taiwan.

30
 Number of photography apps and music apps in
the Top 200 list of Southeast Asian countries
45
40
35 12
30 8
12 7
25
3
20
9
15 28 27 25
10 22 20
14
5
0
The Indonesia Malaysia Thailand Singapore Vietnam
Philippines

Photography Music

Period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

In general, there were 17 music apps and 28 photography apps in the Philippines Top 200 List, both
representing the highest proportion of the list in the 6 countries. Because of this, Chinese photography apps
make up a large proportion of apps in the Philippines. Meanwhile, the percentage of the Chinese-speaking
population is not that high in the country, which might explain why there were only 2 Chinese music apps on the
list.

Active Average no. of

Rank list App Name Type Publisher
penetration opening/person/week

8 SHAREit Tools 38.26% 10.76 Lenovo Technology

Note on data: active penetration rate = number of weekly active users of the app/weekly active users on Android in the Philippines, period
of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

In terms of tool apps, the situation is quite similar to that of other Southeast Asian countries. High internet data
charges and slow speed enable SHAREit to become the most used tool app among Philippine users for
transmission.

31
 Average no. of
Active
Rank list App Name Type opening/person/wee Publisher
penetration
k

19 GO SMS Pro Communication 11.75% 181.0556 Sungy Mobile

Note: active penetration rate = number of weekly active users of the app/weekly active users on Android in the Philippines, period of data:
Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

In communication apps, GO SMS Pro from Sungy Mobile has been doing well as the best-performing Chinese
communication app in the Philippines. Previously, GO desktop from Sungy Mobile achieved immediate
success in overseas markets. Now the company is also gradually shifting towards content apps in its strategic
arrangement, and GO SMS Pro is the type of move that reflects such an attempt. GO SMS Pro can fully
replace system SMS and be combined perfectly with real-time communication. In addition to the functions of
system SMS, it also provides a variety of functions that the system SMS does not have, such as theme
changes, privacy boxes, pinned conversations, instant display of pop-up boxes, harassment blocking, etc.

32
Game market in the Philippines - Arcade games and action games are equally popular and so are
games with excellent visuals.

Top 200 Games List in the Philippines by

category
Arcade game
22 Action game
38
6 Casual game
6
7 Puzzle Game
8 Racing game
12 37 Sports game
Word game
14
Strategy game
18
32 Adventure game
Role playing game

Chinese Games in Top200 List in the

Philippines
9 8
8
7 6
6
5
4 3 3
3 2 2
2 1 1 1 1 1
1
0

Note: Top lists ranked by weekly active penetration rate of each game in the Philippines, period of data: Nov. 21, 2016 ~ Nov. 27, 2016,
source of data: libra

As about one third of mobile internet users in the Philippines are students and the unemployed, local users
prefer apps and games that can be downloaded for free. Another advantage of the local market is that there is
a huge group of online game players. Since local users are not interested in paid games, a suitable approach
to profit is to earn revenue with advertising.

29 games from China were among the Top 200 Games list in the Philippines; those that can be downloaded
and played for free account for the highest percentage.

33
 Active Average no. of
Rank list App Name Type Publisher
penetration opening/person/week

Knowledge
59 Tricky Test 2 0.48% 8.38 orangenose studio
Q&A game

Note: active penetration rate = number of weekly active users of the game/weekly active users on Android in the Philippines, period of data:
Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

Tricky Test 2, a rather uncommon knowledge Q&A game, was among the list and its ranking in the
all-category was actually quite high.

Tricky Test 2 is developed by the mobile game developer Orangenose Studios from Taiwan. While tagged as
knowledge Q&A game, Tricky Test 2 actually does not have much to do with the term Q&A. Tricky Test 2 is
a combination of various mini IQ-challenging games. It is easy to play and requires little language-based
interaction. Users who know simple English can play the game and can easily indulge themselves in the game
for its well-designed links. This particular arrangement has rendered the game to be very suitable for exporting
overseas.

According to data from libra, active users of Tricky Test 2 are widely distributed across many countries and
regions.

Tricky Test 2 Distribution of active users by county and region

Ranking Country Active penetration

1 The Philippines 23.65%

2 India 15.27%

3 Malaysia 9.21%

4 USA 6.22%

5 Indonesia 5.79%

34
6 Germany 4.24%

7 Italy 2.54%

8 Vietnam 2.48%

9 Egypt 2.37%

10 Poland 2.34%

Period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

35
The performance of the Legacy of Discord-Furious Wings, developed by the subsidiary of Youzu.com,
GTarcade, has also been quite remarkable in the Philippines.

Average no. of
Rank list App Name Type Active penetration Publisher
opening/person/week

Legacy of
Role playing
79 Discord-Furious 0.34% 26.52 Youzu.com
game
Wings

Note: active penetration rate = number of weekly active users of the game/weekly active users on Android in the Philippines, period of data:
Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

Legacy of Discord-Furious Wings is the second most popular role-playing action game in the Philippines, and
is the only role-playing game from China that entered the Top 100 games list in the country. The settings and
operations of the game are relatively complex. The players need to challenge the bosses in the underground
labyrinth to obtain top-grade weapons and equipment and PK with other players.

The Legacy of Discord-Furious Wings features excellent visuals with gorgeous character settings and battle
scenes. With its sophisticated visuals, the game has successfully overcome cultural estrangement and
attracted a large number of fans. Philippine users represent the third largest player group, coming only next to
that of Brazil.

Legacy of Discord-Furious Wings Distribution of active users by country

Ranking Country Active penetration

1 Indonesia 14.00%

2 Brazil 12.52%

3 The Philippines 11.43%

4 USA 7.72%

5 India 6.90%

Period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

36
5. Singapore

As the leading financial hub in Asia, Singapore is chosen by many start-ups to set their headquarters in Asia.
Advanced technology and well-established infrastructure have put Singapore ahead of others in certain
industries.

Singapore is the one of the most advanced digital markets in the world, and therefore users there are highly
receptive to mobile devices. According to data from Digital Influence Lab, a research institute, there are 4.4
million smartphone users in Singapore in 2015. The figure represents over 80% of the countrys population.
Network speed is very fast in Singapore, and can reach 16.2Mbps for mobile internet.

Singaporean users are one of the most active social media user groups around the world, with various social
media in the country. Data from libra shows that Singapore has the highest coverage of mobile social media,
and the total number of social apps and communication apps makes up the highest proportion on the Top 200
list among the 6 countries. WhatsApp is the most popular communication app in the country with an active
penetration of rate 83.17%. On the other hand, the most popular social app is Facebook, of which the active
penetration rate is 71.33%.

In addition, regulations and economies are relatively sound and well developed in the entire region, similarly
contributing to a solid foundation for the development of the internet and mobile internet markets in Singapore.
And Chinese is one of the four common languages in the country spoken by approximately 50% of the
Singaporean population. All these factors present a competitive advantage for Chinese companies to enter into
Singapore markets.

Singaporean App market - Mature app market with a comprehensive range of categories

37
 Top 200 apps in Singapore by category
Utility Tools
Communication
32
46 Efficiency
Photography
Social
25
9 Life and fashion

9 Maps and navigation

10 20 News and magazines

11 Music
14
12 12 Travel and local
Other

Top 200 Apps from China List in Singapore

25 21
20
15
10 8 7
4 3 3
5 2 2 1 1 1 1 1 1
0

Note: Top lists ranked by weekly active penetration rate of each app in Singapore, period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of
data: libra

There were in total 56 apps developed by Chinese companies on the Top 200 list in Singapore. The number is
the same as that in Indonesia. Among them, 54 are from Mainland China, and the remaining 2 are from
developers Bravolol in Taiwan and PCCW from HK, respectively.

Still, apps from China among the Top 200 list mainly fall under the tool and photography categories.

Active Average no. of

Rank list App Name Type Publisher
penetration opening/person/week

13 WeChat Communication 23.44% 136.91 Tencent

38
 75 Kuwo Music QQ Music 2.19% 13.65 Kuwo Music

84 qq Communication 2.02% 90.12 Tencent

103 Taobao Shopping 1.56% 82.500 Taobao

116 Tencent News News Feed 1.33% 109.79 Tencent

166 Weibo Social 0.86% 112.52 Sina

Note: active penetration rate = number of weekly active users of the game/weekly active users on Android in Singapore, period of data:
Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

However, in addition to utility tool and photography apps, the large Chinese-speaking proportion of Singapores
population makes communication apps such as WeChat and QQ, social apps such as Weibo, music apps such
as Kuwo, shopping app Taobao, News app Tencent news, and many commonly used apps in China also
occupy a space in the Top 200 list in Singapore.

39
Game market in Singapore - Where strategy games become the favorite and Casino games from
Taiwan stand out

Top 200 Games in Singapore by category

Casual game

26 Puzzle Game
34
Arcade game
8
Action game
9
Casino game
10 28 Sports game

14 Strategy game
Simulation game
14 22
Card game
15 20 Role playing game
Other

Top 200 Games from China List in Singapore

7 6
6
5
4 3 3
3 2 2 2 2 2
2 1 1 1 1
1
0

Note: Top lists ranked by weekly active penetration rate of each game in Singapore, period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source
of data: libra

A mobile game report from YeahMobi suggests that in Singapore, nearly 52% of players are male, and most
players are aged between 21 and 35. Singapore is also the only one of the 6 Southeast Asian countries where
the number of middle- to-senior aged players is higher than that of teenage players. Since English is widely
used, the leading games in the Singaporean game market are those from Europe and America.

There were 26 games from China that entered the top 200 games list in Singapore. 24 of them were from
Mainland China, and the other 2 were from International Games System Co., Ltd., a developer from Taiwan.

40
While the number of Chinese strategy games is the highest in the Singaporean market, all failed to enter the
Top 100 except for Castle Clash by IGG. In general, there were 14 strategy games in Singapores Top 200
games list. The higher percentage of strategy games in Singapore as compared to other countries indicates
the local preference for strategy games. No Chinese strategy game has achieved major success in Singapore
for the moment, and there is still space for development in Singapores strategy game market.

Active Average no. of

Rank list App Name Type Publisher
penetration opening/person/week

Strategy
82 Castle Clash 0.22% 15.98 IGG
game

Strategy
172 Clash of Kings 0.11% 209.24 Elex
game

Strategy
177 Lords Mobile 0.11% 50.37 IGG
game

Strategy
181 Clash of Lords 2 0.11% 9.47 IGG
game

Strategy
187 Legend of Super Heroes 0.10% 3.50 efun
game

Strategy
193 Battle of Zombies 0.10% 135.06 IM30
game

Note: active penetration rate = number of weekly active users of the game/weekly active users on Android in Singapore, period of data:
Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

Another noteworthy game is the FaFaFa-Real Casino Slots that ranked Number 2 in the top Chinese games
list and 8th in the all-category list.

Active Average no. of

Rank list App Name Type Publisher
penetration opening/person/w

41
 eek

International
FaFaFa-Real
8 Casino game 1.23% 24.66 Games System
Casino Slots
Co., Ltd.

International
Diamond Tiger
145 Casino game 0.13% 13.18 Games System
Casino
Co., Ltd.

Note: active penetration rate = number of weekly active users of the game/weekly active users on Android in the Philippines, period of data:
Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

This game is developed by the developer, International Games System Co., Ltd. from Taiwan. The game does
not come with a "real currency gambling" function, but replicates the real slot machine experience to the
maximum extent possible, and is intended for adult users aged above 21. FaFaFa-Real Casino Slots is known
as the "the worlds only authentic slot machine authorized by Casino Aristocrat" which allows the players to
experience different slot machines from famous casinos in Las Vegas, Singapore, Macau, etc. The other game
from International Games System Co., Ltd., Diamond Tiger Casino, employs the same strategy. It is ranked
145th in the Top 200 games list in Singapore. The good result achieved by International Games System Co.,
Ltd. did not come easily in Singapore where gambling is a legitimate activity.

In September 2016, the Singapore government shall announce the legalization of online gambling. It is likely
that in the future companies such as International Games System Co., Ltd. and Boyaa interactive that are good
at developing casino games will explore the Singaporean market in brandly new ways.

42
6. Vietnam

Vietnam and China share the same border, and its culture and customs resemble those of China the most
among the 6 Southeast Asian countries. As a result, many of the habits exhibited by Vietnamese users are
identical to those of Chinese users. Since the implementation of economic reform in 1986, Vietnams economy
growth has shown strong momentum. Its current economic situation is quite stable and healthy, with relatively
low overall living standards.

Currently, the mobile market in Vietnam is still in the stage of exploring this new frontier. According to a report
from Forbes Vietnam, the smartphone penetration rate in Vietnam in 2016 was only 36%. YeahMobi data
shows that currently there are around 34 million users in Vietnams mobile internet market. The dominating
male users account for 75% of the user group, which is the highest in all Southeast Asian countries. Another
major characteristic of the Vietnamese mobile market is its low internet charge and fast network speed.
Vietnam is a country with large Wi-Fi coverage, where most of the Wi-Fi access provided in big cities is free.

Meanwhile, as Vietnam is a relatively closed country, with linguistic and religious pluralism, the penetration of
the English language is not high. Therefore, content-based products should be well prepared for language
localization when exported to Vietnam.

As most apps in Vietnam are from developers in Europe and America as well as China, local developers are
also doing a good job. Data from libra indicates that communication app Zalo, developed by Zalo, and
entertainment app Zing as the most popular apps in their respective categories, - both receive good rankings
on the list. Their respective penetration rates are 66.69% and 48.04%.

43
App market in Vietnam: Proportion of entertainment apps the highest among the 6 countries

Top 200 Apps in Vietnam by category

Utility Tools
Communication
30
51 Photography
6 Efficiency
7
Entertainment
8
News and magazines
9
Social
21
11 Video

18 Shopping
20
19 Life and fasion
Other

Top 200 Apps from China List in Vietnam

30
24
25
20
15 11
10
5 4
5 2 1 1 1 1
0

Note: Top lists ranked by weekly active penetration rate of each app in Vietnam, period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of
data: libra

50 apps from China were among the Top 200 list in Vietnam, including 49 from Mainland China and 1 from
publisher Perfect Corp in Taiwan. Of the 50 apps, almost half were tool apps.

Compared to its outstanding performance in other countries, SHAREit only is mediocre in Vietnam, ranking
193rd on the all-category list. This might be because, while smartphone penetration is quite low in Vietnam, the
internet traffic charge is very cheap. It is reported that currently the mainstream prepaid data plan in Vietnam is
200,000 Dong (equivalent to 60 RMB) for 3GB, which comes with operator promotion of upper limit plan for the
extra data. Meanwhile, the network speed is quite fast, where 3G transfer speed is comparable to that of 10MB
Wi-Fi. This explains why Vietnamese users are less sensitive to data usage when compared to users from

44
other Southeast Asian countries, and why it is difficult for SHAREit to become a real hit in Vietnam despite its
popularity in other countries.

Active Average no. of

Rank list App Name Type Publisher
penetration opening/person/week

34 BIGO LIVE Social 4.11% 26.25 YY Inc.

Note on data: active penetration rate = number of weekly active users of the app/weekly active users on Android in Vietnam, period of data:
Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

The Vietnamese market is relatively closed due to complex historical and cultural factors. Combined with the
multi-lingual, multi-ethnic, and multi-religious characteristics of the country, these factors make the export of
content-based apps from China difficult. BIGO LIVE was the only social app that got into the Top 200.

45
Game market in Vietnam - Where casual games dominate the market and mobile games generate the
highest revenue among the 6 countries.

Top 200 Games in Vietnam by category

Casual game

22 Arcade game
41 Action game
8
8 Puzzle Game
10 Card game
Board game
10
29
Sports game
11
Role playing game
12 Strategy game
29
20 Casino game
Other

Top 200 Games from China List in Vietnam

3.5 3 3
3
2.5 2 2
2
1.5 1 1 1 1
1
0.5
0

Note on data: Top lists ranked by weekly active penetration rate of each game, period of data: Nov. 21, 2016 ~ Nov. 27, 2016, source of
data: libra

In the Vietnamese game market, the 10% withholding tax offers a generous discount as it is much lower
compared to the said tax in other Southeast Asian countries, which ranges from 15 to 25%. However, the
issuance of game publishing licenses in Vietnam is strictly regulated. License applications usually take 6 to 9
months for a game, and in most cases half a year is required. Not all publishers have the sufficient conditions
or capability to apply for a game license. At the same time, the Vietnamese government also imposes more
strict regulations on mobile games as compared to the Chinese government. Consequently, Chinese
developers going to Vietnam must conduct thorough research on applicable laws and regulations in the
46
country.

While neither high GDP nor smartphone penetration rate describe the situation in Vietnam, revenue generated
from mobile games in the country has been quite satisfactory. According to data published in 2015 by
SohaGame, the largest game platform in Vietnam, nearly 40% of revenue in the Southeast Asian mobile game
market is contributed by Vietnam. It is equivalent to the revenue generated in Indonesia, Malaysia, the
Philippines, and Singapore combined, or 1.5 times the revenue in Thailand.

However, only 14 games from China entered the Top 200 Games list in Vietnam, showing the lowest share
among the 6 countries. The Vietnamese game market is still dominated by European and American developers
and Vietnamese companies for the moment. However, this also means that the space for potential growth in
Vietnam is still very promising for Chinese companies.

Overall, the Vietnamese market is dominated by casual games. Indeed, Flappy Bird, which soared to popularity
overnight, was produced by a Vietnamese publisher. Cheetah Global Lab found that 41 casual games in the
Top 200 list were from Vietnam, and 2 Chinese casual games doing well were in the list.

Average no. of
Active
Rank list App Name Type opening/person/we Publisher
penetration
ek

47
 Casual
38 Fishing Joy 0.73% 7.46 Droidhen
game

Bubble Casual
107 0.27% 23.88 Candy Bubble Studio
Shooter game

Note on data: active penetration rate = number of weekly active users of the game/weekly active users on Android in Vietnam, period of
data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

Fishing Expert and Bubble Shooter are the respective works of Chinese publishers Droidhen and Candy
Bubble Studio. Just like casual games that become very popular in the US market, these two games are easy
to play, only requiring tapping the screen and are good to spend some spare time; at the same time, the simple
nature means that the language barrier shall not result in any significant cultural hurdles. Therefore, the two
games have been well received in Vietnam.

Average no. of
Rank list App Name Type Active penetration opening/person/w
eek

74 Castle Clash Strategy game 0.36% 34.57 IGG

100 Lord Mobile Strategy game 0.28% 60.24 IGG

Note on data: active penetration rate = number of weekly active users of the game/weekly active users on Android in Vietnam, period of
data: Nov. 21, 2016 ~ Nov. 27, 2016, source of data: libra

Besides casual games, Vietnamese users also seem to have a special preference for strategy games, which
are the second favorite category in Vietnam. According to statistics from the Cheetah Global Think Tank,
among the Top 200 games in Vietnam, 8 were strategy games. Castle Clash and Lord Mobile are both from
Chinese publisher IGG. These two are the all-time classics among exported games as even now they are still
enjoying high openings. The popularity of these 2 games may last quite a while.

48
Note:

1. Unless otherwise specified, all data is sourced from Cheetah Mobiles big data platform libra. On August 22,
2016, libra, Cheetah Mobiles big data platform, officially enabled new data sources with a larger range, and
greatly enhanced the magnitude of data. After the switch, the platform is able to provide data such as daily
active users, weekly active users, monthly active users, rate of new installations, retention rate and other
information to cover more dimensions, and therefore reflect the conditions of the mobile app market in a more
comprehensive and accurate manner. Cheetah Global Lab will use this powerful tool to deliver more
authoritative and detailed insights into the mobile Internet industry.

2. The data is collected via daily functions of Cheetah products in accordance with the applicable laws and
regulations.

3. The lists are applicable to Android platforms only.

4. The data is subject to the scale and distribution of users of Cheetah products.

49
 Cheetah Global Lab

As the mobile Internet research institute owned by Cheetah Mobile, Cheetah Global Lab has carried out mobile
internet and big data analysis centered on big data reports, content dissemination, and events and summits.

Cheetah Mobile is the worlds third largest mobile app developer and is committed to providing a faster, simpler,
and safer mobile internet experience for global mobile users. As of June 2016, Cheetah Mobile products
reached 3.464 billion installs worldwide, with mobile monthly active users reaching 612 million. The companys
core products include Clean Master, CM Security, Battery Doctor, CM Locker, Photo Grid, Duba Anti-virus,
Piano tiles 2, Live.me, News Republic, etc. In June 2015, Cheetah Mobile launched the first globally oriented
mobile advertisement platform in China, the Cheetah advertisement platform, thus making an important step
towards achieving its strategic objective of becoming a world leading mobile advertisement platform.

Based on its massive user base, Cheetah Mobile has developed a range of Big Data products such as libra.
Drawing upon these data products, Cheetah Global Lab regularly releases research reports and analytical
articles to provide insights into the latest trends in the global mobile Internet market, and to show internet
practitioners the business landscape for big data. It organizes industry summits and salons, gathers industry
experts and resources, and has established long-term partnerships with a large number of internet
organizations, companies and media.

Libra

Libra is a Big Data analysis platform developed by Cheetah Mobile that covers nearly 50% of global Android
users as the research sample. It draws on the big data technology provided by Cheetah Mobile to conduct
in-depth user data mining and analysis, thereby revealing to users the changes and trends in the global mobile
Internet industry through analysis reports, data products and case studies. libra is devoted to helping
developers, investment firms, marketing personnel, and industry professionals to obtain a multi-dimensional,
comprehensive, and in-depth understanding of both the history and current situation of the mobile internet
industry, identify industry opportunities, and achieve fast growth along with the rapidly developing mobile
industry market.

Please visit libras official website: libra.cmcm.com

Contact us

Email: cgl@cmcm.com

Website: lab.cmcm.com
50
Data, content, business and media cooperation

Please contact via WeChat ID: rrrosa

Email: rongrong@cmcm.com

Contact: Rong Rong

Events and meetings

Please contact via WeChat ID: zhting84

Email: zhouting@cmcm.com

Contact: Zhou Ting

51