Line listed in the prospectus of a variety of risks hidden inside the company’s current situation

chat application Line will soon be listed on the New York stock exchange. Company to the U.S. Securities and Exchange Commission (SEC) Prospectus Documents set up a risk factor. This chapter is not in the relevant documents of the company’s business is to deny or an alarmist. But as a listed company, the shareholders will get investment from the stock market, unfavorable factors and risk to investors must be statement of future business conditions, financial condition and continued profitability etc., remind investors cautious investment.

 

Line’s well-known image of Benny rabbit

Line is a popular chat applications in Japan and South Korea, which is listed on this year’s largest science and technology IPO. Although it has achieved great success in the local market, there are still the following risks need to be vigilant.

1 single income risk

Line current products include online games, facial expressions, advertising products and other services, including the official account. Expression and advertising revenue accounted for a large part of them. Most of the revenue comes from Japanese businesses. Line will also expand the market in Taiwan and Southeast Asia in order to gain more profit opportunities, but these measures do not guarantee success.

2 Line existing business faces competition

although Line in Japan, South Korea has achieved great success, but Line is still facing several major competitors in the overseas market.

in the instant messaging services, including Facebook’s competitors WhatsApp and Messenger, as well as China’s WeChat. Apple’s iMessage has made considerable progress in recent years, it will also have a certain impact on the integration of the phone system and Line.

advertising business, Line’s opponents are more and more difficult, Facebook, Google, YAHOO Japan, these rivals on the one hand with social networking products, on the other hand there is a huge advertising business.

3 the risk of developing new business in the future

Line is located on a amidst the winds of change consumer market, instant chat application in recent years is undergoing changes in turn the world upside down. If you can not launch new business in line with market trends, it is likely to be eliminated competing products.

2013, Line online shopping mall in Japan Line Mall, expanded product lines and services. However, due to lack of experience in e-commerce, including the lack of experience in the third party distribution, merchandise sales, Line Mall eventually closed in May 31, 2016.

After

, Line will also launch a new business, but these services may not be effective, can not immediately bring real benefits, or in

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