Profile of China Finance Online

Company background

This is an updated edition of the original report which was published in March 2007.

China Finance Online (CFO), founded in 1999, provides institutional and individual subscribers with financial news, data and analytical tools covering Chinese bonds, mutual funds and publicly-listed companies. The company has developed a software platform which enables their subscribers to use analytical and personal finance tools online.

As of 31st December 2007, the company claimed it had approximately 9 million registered users of which 56,200 were fee-based subscribers. As of September 2008, there were 10.9 million registered users on CFO which represents a 35% year-on-year increase. CFO's paid subscribers increased by 153% rising from 45,000 at the end of September 2007 to 115,000 at the end of September 2008.

CFO subscribers have access to:

• Real-time stock quotes
• Historical financial data covering listed companies, bonds & mutual funds
• Financial news articles
• Research reports
• Online forums and bulletin boards

The company provides real-time stock quotes from both the Shanghai and Shenzhen stock exchanges. In addition, news feeds from 235 publishers and media firms are made available to the company's subscribers.

CFO competes with other business data and news providers. Business publishers and distributors of traditional media such as China Securities Journal, Shanghai Securities News, International Times and 21st Century Business Herald compete with CFO. The company also competes with Internet portals providing business, finance and investing information such as Sina and Sohu.com. Purely financially-focused websites such as Hexun.com are also competitors. Personal stock research software vendors, such as Shanghai Qian Long High Tech Corporation, compete with some of CFO's downloadable products. With its acquisition of Daily Growth Securities, CFO now competes with a variety of brokerage firms in Hong Kong.

In 2007, revenues grew 263% reaching close to US$26 million up from US$7.1 million in 2006. Nearly US$23 million of its revenues (88% of total revenues) were generated from CFO's subscription fees. Other sources of revenues include online advertising, brokerage services and SMS service fees. CFO's operating income grew from a loss of US$700,000 in 2006 to a profit of US$4.6 million in 2007.

In the first nine months in 2008, CFO's revenues were close to US$41 million, up 140% over the corresponding period in 2007. Operating income in the first nine months of last year grew 230% to US$9.5 million.