Company Study of Shanghai Xinhua Media Co., Ltd., 2007

In 2006, the annual total circulation of Liberation Daily Journalism Group reached 647.78 million, covering over 9 million readers. In 2003-2006, the ad income of Liberation Daily Journalism Group kept a compound growth rate of nearly 20% for the consecutive 5 years. In 2005, the gross ad value on contract exceeded RMB 1 billion, and the 11 newspapers of the group remained profitable on the whole, including 5 that realized the pre-tax profit of over RMB 10 million. Ever since the year 2002, Shanghai Morning Post has maintained the annual ad growth rate of 41.65%, and Shanghai Times has been receiving the annual ad income of over RMB 100 million.

The uppermost income source of Xinhua Publishing Group is the distribution of publication and cultural appliances. Wholesale business accounts for 57.4% of the group's gross turnover; ecdemic wholesale, retail outlet wholesale within the group and Shanghai social channel wholesale beyond the group respectively accounts for 6.7%, 89.6% and 3.7% of the total wholesale value. Besides, the retail business accounts for 42.6% of the total turnover.