Direct competitors, Xinhua Finance (TSE Mothers: 9399 and OTC: XHFNY) and China Finance Online (Nasdaq: JRJC), both released their annual financial results recently.Xinhua Finance recorded revenues of US$175 million and a net income of US$18.7 million in 2006. That represents a 59% increase in revenues and an 82% increase in net income over the 2005 figures. In 2006, Xinhua Finance opened two new offices in Shenzhen and Hong Kong. The company also launched several new products including China Bullet Points, China Mainwire and Daily China News Briefings.Xinhua’s much smaller competitor, China Finance Online, did not have an impressive year. China Finance Online posted a 5% decrease in revenues which fell to US$7.13 million in 2006, down from US$7.48 million in 2005. Net income fell dramatically dropping from a US$4.62 million profit in 2005 to a loss of US$600,000 in 2006.  The company did record strong growth in sales of its new product, Value Engines, the subscription service generated revenues of US$6.42 million in 2006. Last year, China Finance Online completed two acquisitions, Stockstar.com and Shenzhen Genius.  Source: Xinhua Finance Press Release, February 15, 2007; China Finance Online Press Release, February 27, 2007
Xinhua Finance Media (TSE Mothers: 9399; OTC: XHFNY; Nasdaq: XFML) will issue 23.1 million American Depositary Receipt (ADR) shares on March 9th at an estimated price of between US$12 and US$14 per share. The company will raise approximately US$300 million. According to Xinhua Finance, the proceeds will be used to repay debt, for strategic acquisitions and as general working capital.“Our content currently focuses on business and financial news as well as wealth management and affluent lifestyle programming,” the company said. “We focus on this programming because we believe it attracts the highest income audience in China. This audience is highly sought after by our target advertisers.” Source: Seeking Alpha, 4 March 2007 MarketWatch, 26 February 2007; Courtesy of BSG Hong Kong – www.bsgasia.com

 
BIIA Newsletter March – 2007 Issue