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China Finance Online Co. (JRJC)

Q1 2007 Earnings Call

May 30, 2007 9:00 pm ET

Executives

Alice Yung - Investor Relations

Zhiwei Zhao - Chief Executive Officer

Jun Wang - Chief Financial Officer

Analysts

Dick Wei - JP Morgan

Ming Zhao - SIG

Jeri Chung

John Lye

Presentation

Operator

Thank you for holding and welcome to the China Finance Online first quarter 2007 earnings release conference call. (Operator Instructions) I would now like to turn the conference over to your host, Ms. Alice Yung of China Finance Online. Thank you, Ms. Yung. Please go ahead.

Alice Yung

Thank you, Operator. Hello, everyone. Welcome to China Finance Online’s first quarter 2007 conference call. Joining me today in the conference are our CEO, Mr. Zhiwei Zhao and our CFO, Mr. Jun Wang.

After market close today, we issued a press release containing the financial results for the first quarter of 2007. The purpose of this conference is to provide detailed information regarding these financial results. Following our formal remarks, we will be happy to take any questions you might have.

Before we start, it’s my duty to remind you that during today’s conference call, we will make some forward-looking statements, including statements about our future development, our market position in individual and institutional markets, and our second quarter revenue guidance. These statements are made under the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections and therefore you should not place undue reliance on them.

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, fluctuation in quarterly operating results, our ability to successfully compete against new and existing competitors, changes in accounting policies, our ability to successfully acquire and integrate businesses, and the impact of our investments on our financial results.

Further information regarding these and other risks is included in China Finance Online’s annual report on Form 20-F for the year ended December 31, 2006 and other filings with the Securities and Exchange Commission.

China Finance Online does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

Now, I will turn the call over to Mr. Zhao, our CEO.

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China Direct (ticker: CHND.OB) is a diversified management and consulting company. Our mission is to create a platform to empower medium sized Chinese entities to effectively compete in the global economy. As your direct link to China, our organization serves as a vehicle to allow investors to participate directly in the rapid growth of the Chinese economy.

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Zhiwei Zhao (Translation)

Hello, everyone. Welcome to China Finance Online’s 2007 first quarter earnings conference call. In the first quarter of 2007, we obtained great operating results. Net revenue was $4 million under U.S. GAAP, representing an increase of 58% quarter over quarter. Meanwhile, net operating cash inflow made a sizable increase as well in this quarter, among which cash subscription base paid by individual customers for this quarter were reported of $7.2 million. Other than positive impacts from the Chinese stock market, I believe that once again this demonstrates the improved marketing, product development and execution capabilities of our team.

At the same time, operating expenses, excluding share-based compensation, remained almost unchanged compared to the previous quarter, despite significant increases in both net revenues and cash revenues over the last quarter. This demonstrates our effectiveness in cost control through integration of the acquired businesses.

From an operations perspective, page views and unique visitors reached historical highs again in the first quarter of 2007, which indicated our continuously increasing market power. As of March 31, 2007, registered user accounts of jrj.com and stockstar.com increased by 9% to 6.57 million from the previous quarter and fee-based individual subscribers grew to 31,700, an increase of 12% from the previous quarter.

The quarter-over-quarter increases in both registered user accounts and fee-based individual subscribers were primarily due to our emphasis on investments in website development during this quarter. Currently, subscription services provided to individual investors are our core business. Therefore, in website development, we focused on attracting, retaining, identifying, mining and up-selling to our targeted customers. This was consistent with our business model and development directions. The increase in registered user accounts of our website lays a solid foundation for our future business development.

This March of 2007, jrj.com and stockstar.com, together with the securities channel, China Central Television, the largest and most influential TV station in China, the Chinese Securities Channel, one of the leading financial newspapers in China, and [Haitu] Securities, one of the top brokerage firms in China, have been preparing to host the country-wide 2007 China Market Investment Competition among individual investors, which was successfully launched at the beginning of May and is currently going on smoothly.

This competition, aimed to promote the ideas of investing and fundamental analysis to retail investors and it therefore facilitates the rational and mature development of the stock market in China. We believe that this competition will further enhance our market power in both individual and institutional markets and solidify our position as a market leader.

We have made smooth and rapid progress in integrating the various business functions of Stockstar and Genius. In this quarter, we conducted the integration in user system management system at the group level. The integration was successfully completed in May.

Looking forward to the second quarter 2007, we will continue to remain focused on results and website development and marketing capabilities to improve product mix and roll out more and more innovative service packages and, at the same time, explore new business opportunities. With such effort, we are convinced that we will significantly enhance our competitive capabilities and market power and therefore create great value for our shareholders.

Finally, I would like to take this opportunity to express my great appreciation to our investors, research analysts, and all our partners. We look forward to your continued support.

Now I would like to turn the call over to Jeff, our CFO, to give more details on the financial part.

Jun Wang

Thank you. Hello, everyone. Welcome to our first quarter 2007 earnings conference call.

In this first quarter 2007, we reported net revenues of $4 million, compared to $1.41 million for the same period in 2006 and an increase of 58% from $2.52 million from the previous quarter. The year-on-year and quarter-on-quarter increases were primarily due to an increase in the revenue generated from subscription-based services provided to individual customers.

Revenues from subscription services provided to individual customers totaled $3.2 million for this quarter, compared to $0.87 million in the first quarter of 2006, and $1.86 million from the previous quarter.

As our current core business, subscription services provided to individual customers accounts for a greater percentage of net revenues due to strong growth in this service line. Revenues from subscription services provided to individual customers represent approximately 80% of net revenues in Q1 2007, compared to 73% in the previous quarter.

Revenues from wireless related services currently provided by Stockstar, which we acquired last year, were $299,000, representing 8% of net revenues for this quarter, compared to 12% in the previous quarter.

Revenues from subscription service fees paid by institutional customers were $192,000, representing 5% of total revenues for this quarter, compared to 7% in the previous quarter. For such services, we provide a financial database and analytics to institutional customers, mainly through Genius, which we acquired last year.

In this quarter, advertising related business brought in $247,000, representing 6% of net revenues for the quarter, compared to 8% in the previous quarter. Our websites, jrj.com and stockstar.com, are both considered platforms where we attract potential fee-based users for different service lines. We continue to allocate most online advertising inventories to promote our own subscription service packages and brands, as well as establishing partnerships to increase traffic volume to these two websites.

For this reason, online advertising was not considered as a sizable service line of our business in this quarter, nor do we expect it to be so in the following quarters of 2007. Once again, I am glad to say that such strategy paid off substantially, as illustrated by the significant increase in deferred revenues on our balance sheet and cash revenues from subscription services provided to individual customers in the quarter, which I will discuss later in my speech.

Gross margin was 79% in the first quarter compared to 85% for the same period in 2006 and to 75% for the fourth quarter of 2006.

Please note that cost of revenues for the first quarter of 2007 included website maintenance and development expenses of $525,000, up 50% over the past quarter, mainly due to higher bandwidth costs associated with increased traffic.

Website maintenance and development expenses consist of bandwidth costs, personnel related expenses, server depreciation expenses, and content expenses for our jrj.com and stockstar.com website. Since advertising business, which only represents 6% of net revenues for the first quarter of 2007, are no longer a sizable business of our company and websites are both used as a platform to attract and retain potential users of our subscription services, website maintenance and development expenses do not have a direct relationship with net revenues recognized in the first quarter of 2007. So excluding website maintenance and development expenses of $525,000, the gross margin for the first quarter of 2007 would have been 92%.

In order to help investors to better understand our business, starting from this quarter we will introduce the following disclosures.

First, we’ll provide cash flow measures, including operating cash flows, cash flows from subscription services provided to individual customers, net operating cash flows and net operating cash flows per ADS on a diluted basis.

We believe that as long as subscription services provided to individual customers remain as our core business, cash flow measures are important indicators of our ongoing operations and are helpful to investors for making well-informed investment decisions.

Second, we will provide more non-GAAP financial measures, which excludes share-based awards granted to employees. We believe that non-GAAP financial measures are provided to enhance investors’ overall understanding of our company’s current and past financial performance and the ongoing core operations, as well as prospects for the future. So non-GAAP financial measures we now provide include adjusted EBITDA, non-GAAP operating profit, non-GAAP net income, non-GAAP net income margin, and non-GAAP basic and diluted net income per ADS and per share.

For a further explanation of our non-GAAP measures and detailed reconciliations between our GAAP and non-GAAP results, please refer to our earnings release.

Finally, also starting from this quarter, we will provide guidance on U.S. GAAP net revenues, which can help investors understand the prospects of our business.

So in this quarter, non-GAAP operating expenses totaled $2.41 million, down 1% compared to $2.44 million from the previous quarter, despite a significant increase of 58% in net revenues quarter over quarter. This demonstrates our strong execution capabilities, as well as our effectiveness in cost controls through seamless integration of acquired businesses, Stockstar and Genius.

In this quarter, non-GAAP operating profit was $767,000 compared to $190,000 in the first quarter of 2006 and a loss of $516,000 in the previous quarter.

Operating cash inflow during the first quarter of 2007 was $8.8 million, among which cash inflow from subscription services provided to individual customers was $7.2 million. Net operating cash flows for the first quarter of 2007 were $4.5 million, and net operating cash flow per ADS on a diluted basis was $0.22 for the first quarter of 2007.

We also reported $1.17 million non-GAAP net income for this quarter, compared to $536,000 from the first quarter of 2006 and a net loss of $149,000 from the previous quarter.

Adjusted EBITDA was $944,000 for the first quarter of 2007, compared to $223,000 in the first quarter of 2006 and a negative $368,000 in the previous quarter.

Let’s move on to the balance sheet. Our cash and cash equivalents were $49.5 million at the end of this quarter, an increase of $4.54 million compared to $42.96 million by the end of December, 2006.

Deferred revenue at the end of this quarter was recorded $10.89 million, compared to $6.42 million from the previous quarter.

Regarding our outlook, we currently expect to generate net revenues in an amount ranging between $5.3 million to $5.5 million for the second quarter of 2007. Please note that this forecast reflects our current and preliminary view, which is subject to change.

Now, we are ready to take any questions you may have.

Question-and-Answer Session

Operator

(Operator Instructions)

The first question is from Dick Wei from JP Morgan Hong Kong. Go ahead, please.

Dick Wei - JP Morgan

Good morning and congrats on a very strong quarter. I have a couple of questions from Mr. Zhao. The first question is in terms of the cash revenue of $7.2 million -- or I should say the cash inflow for the quarter, how much is it from the first-time customer and from repeat customers? What type of product breakdown, if you can give it out? It is mainly Value Engine or some other software?

Jun Wang

These are -- since they are related to the financial numbers, probably I will be in a better position to answer this question. Most of the -- actually, the cash from -- actually, we do not have a breakdown between the $7.2 million cash inflow between the first-time customers and the repeat customers. But I can tell you that about 62% comes from Value Engine, the fundamental analysis packages, and about 10% comes from figures and market data products, including Level 2 and the really high-end products. The rest comes from technical analysis products, including the Grand Reference series.

Dick Wei - JP Morgan

You said Value Engine is 52% -- 52?

Jun Wang

It is about 62%.

Dick Wei - JP Morgan

Great, and any breakdown in terms of repeat customers and new customers?

Jun Wang

Actually, we did not provide this breakdown now.

Dick Wei - JP Morgan

Okay, my next question is on some of the product pipelines. I think Mr. Zhao in the remarks said you guys will continue to broaden the product pipeline. I’m just wondering if you can give us an update of what kind of new products will be launched in the near future and what kind of price range is it going to be?

Zhiwei Zhao (Translation)

Regarding our next steps in R&D, we will further enhance our old products. Following the market setback, the cost setback, we have been trying to improve the old products and also, according to the new demand of the market, we will focus on developing product, some related products.

Dick Wei - JP Morgan

Great. My last question would be the Asian market has been quite volatile. Yesterday it was down by 6% or so. How would you think the stock market is going to impact your longer term financial performance for the company?

Jun Wang

First actually, for U.S. GAAP, the figures, for example net revenue and EPS, they are actually more to a large extent determined by our deferred revenues. You can see that we have already accumulated $10.9 million in deferred revenue, which will be used as a cushion to protect our revenue recognized in the coming quarters.

We do understand the Chinese stock market does have a certain correlation with our operation. This actually has more impact on our cash flow measures rather than on our net revenue measures.

But on the other hand, while we don’t believe that a short-term correction will have substantial impact on our long-term growth, even though we do admit the short-term correction, for example, what happened yesterday in China, 6% slide in the stock market index, may have a very short-term impact on our financial and actually cash flow capabilities in a week or two.

Dick Wei - JP Morgan

Great. I’ll go back in the queue. Thanks.

Operator

(Operator Instructions) Your next question comes from Ming Zhao from SIG U.S. Go ahead, please.

Ming Zhao - SIG

Thank you. Good morning, Mr. Zhao and Jeff. I have a couple of questions. The first question, can you provide me the operating cash inflow for the fourth quarter? I think you have $8.8 million this quarter and $7.2 million from individual subscribers. Do you have the two numbers from last quarter?

Jun Wang

Well, our cash inflow from subscription fees paid by customers in Q4 was about $5.4 million. The total cash inflow from operating activities in Q4 was $7.0 -- just close to $7 million.

Ming Zhao - SIG

Also, one question about the total number of subscribers, which is 31,700. Could you tell us how many of them are fresh new subscribers? I guess the remaining part is the old subscribers.

Jun Wang

In the first quarter of 2007, actually our new subscribers is about 7,000.

Ming Zhao - SIG

Okay, 7,000 -- and I just want to confirm that the Value Engine, what’s the Chinese name for that?

Jun Wang

[inaudible]

Ming Zhao - SIG

And how much does that cost on an annual basis?

Jun Wang

We have different versions of Value Engine, and the Chinese name is [inaudible]. We have low-end, high-end. On average, the subscription fee for Value Engine is around $4,000 per year.

Ming Zhao - SIG

$4,000?

Jun Wang

U.S. dollars per year.

Ming Zhao - SIG

$4,000 per year -- okay, that sounds very good. All right, so just broadly, what do you see the customer renewal rate when the stock market is up, and what kind of renewal rate do you see when the stock market is down? What is the difference? Could you give us some historical color on that?

Jun Wang

I would say actually the customer renewal rate, I believe we will be in a better position to evaluate this renewal rate probably the end of 2007. There are a couple of reasons. First, there is actually -- because after our IPO in 2005, the Chinese Government policy reasons and the stock market is actually, this is a bear market that trading volume has grown substantially. Also because now we improved our product categories, we now offer three major categories of products rather than only one which was operating in 2005 or the early part of 2006.

Before the second part of 2006, we did not have technical analysis of the product. The flagship product is Grand Reference. Now we also offer fundamental analysis, which is our Value Engine series, and also we offer securities market information products, including level two and high-end products.

Also, we improved our sales service and support capabilities, so I believe that we will be in a better position to evaluate the renewal rate probably in the fourth quarter.

Ming Zhao - SIG

Okay, just one final question. I forgot to ask you, in Q4, of the 28,316 subscribers, how many of them were new subscribers in that quarter?

Jun Wang

In that quarter, I don’t have the number on hand, but I believe it would be around 4,000.

Ming Zhao - SIG

So 4,000 goes up to 7,000, right?

Jun Wang

But I need to double-check that.

Ming Zhao - SIG

Okay, great. All right. Thank you very much.

Operator

The next question is from [Jeri Chung] from private fund, U.S.A.

Jeri Chung

I have a question about your Moloon investment. As you’ll remember, you invested about $15 million in 2005 for Moloon, the company. As for this quarter and on the book, you still own $5.6 million worth of Moloon’s investment, right?

Jun Wang

Yes.

Jeri Chung

I just came back to China and I read the news that Moloon is planning for IPO in 2008. Have you heard anything about it and have you participated in the discussion about the IPO plan?

Jun Wang

We are only a minority shareholder -- actually, a present stock shareholder of Moloon. We do not have a significant influence in Moloon’s management and their business decisions, so we cannot comment on this.

Jeri Chung

Okay, and can you tell me exactly what your percentage of Moloon shares, you know, that JRJ holds? What’s your percentage?

Jun Wang

We hold less than 20%.

Jeri Chung

20%, okay, less than 20%. So you don’t know the exact number?

Jun Wang

I think around 17%.

Jeri Chung

17%.

Jun Wang

17% to 18%.

Jeri Chung

Okay, I understand. [inaudible]

Jun Wang

I’m sorry?

Jeri Chung

So you can’t provide further comment about the IPO plan, anything?

Jun Wang

No, we cannot because we do not have -- we are not involved in Moloon’s management and their business decisions. For that reason, actually, previously before we dispose a certain percentage of our shares, even though we own almost 20%, we actually booked those investments on their cost basis because we could not exercise significant influence over Moloon’s business decisions. For that reason, we qualify to accounting for that investment on a cost basis rather than --

Jeri Chung

I see but you still have a role in building the process, right?

Jun Wang

I’m sorry?

Jeri Chung

Your voting power, I mean. You still have the voting power.

Jun Wang

Yes, we -- actually, we have a seat on their Board.

Jeri Chung

Okay, so what’s your plan -- can you give us your future plan for Moloon’s actions based on their -- what’s the expectation of you if Moloon decides to IPO? Are you going to get rid of the shares and cash out or hold your current holding, current shares? What’s your plan? That’s the thing I want to know.

Jun Wang

I would like to say that we are focused on providing financial information services to the Chinese institutions and individual customers, so Moloon now, as we mentioned in our earning release last quarter, Moloon used to be an SP provider. Now they are actually marketing to be an online mobile gamer, a gaming provider. So Moloon’s business direction is not our core business direction. For that reason, while we do -- for our -- we will not try to pursue Moloon’s business direction.

Jeri Chung

Okay, I understand. I got it. Thank you. I think I got the answer. Thank you.

Operator

(Operator Instructions) The next question is from Dick Wei from JP Morgan Hong Kong. Go ahead, please.

Dick Wei - JP Morgan

Just a couple of follow-up questions, please. The first one is what is the long-term deferred revenue that was not reported before in the prior release?

Jun Wang

Sure. That’s actually one, obviously one issue I want to actually about how we actually try to improve the retention rates. Starting from 2007, we started to offer our customers, some customers that are willing to do so to actually prepay subscription fees for a service period over one year, so typically two years. So a portion or a certain percentage of our customers now pay for a two-year service period.

For those over 12 months deferred revenue, they are accounted for as non-current.

Dick Wei - JP Morgan

Okay, great, that’s helpful. What about the PP&E, the property, plant and equipment up about 30% or so quarter over quarter? I just wonder, is it off the acquisitions that you integrated or it was the existing CapEx that you put into the company?

Jun Wang

Well, two reasons; the first is for Stockstar and for Genius, prior to the acquisitions, while they are short of actually they are replacing their servers and this equipment, as I mentioned previously, Stockstar prior to the acquisition, the average life of their server was well over three years. So that’s one reason why we actually increased in the PP&E.

The second is as Mr. Zhao, our CEO, mentioned that we actually do invest a lot in our website development and also maintenance, so as our traffic volume was up substantially in the first quarter, and even since the fourth quarter of 2006, so for this reason, for our own organic growth of our website traffic and development, we also need to actually purchase more servers and this kind of equipment.

Dick Wei - JP Morgan

Great. One of these things you have, the tax gains for the past while -- when is it that you are going to be recognizing tax expense? Any guidance on that?

Jun Wang

Did I mention the -- could you repeat your question?

Dick Wei - JP Morgan

Just the tax rate guidance, basically, on the income tax.

Jun Wang

The reason we have a tax benefit, the major reason is because of acquisitions. The Stockstar and Genius, they have a lot of operating losses that you can carry over. In 2007, the major areas we use for our business operations are still enjoying low tax rates or are exempt from income tax rates, so I think 2007, the effective tax rate would be less than 10%.

Dick Wei - JP Morgan

Less than 10%? Okay, and could you give more color on the guidance for the second quarter? Meaning that it will mainly come from the subscription business or other business? That would be great.

Jun Wang

When we made our forecast, we actually analyzed all of our service lines, including the retail subscription, institutional subscription, advertising and also for wireless services. As I mentioned, a lot of our deferred revenues kind of serve as a cushion for our net revenues for the second quarter so we can use to analyze, to estimate our financial performance.

On the other hand, we also estimate or forecast for our business performance in June and also the second-half of May for different service lines. This really is a combination of our financial reporting and also financial forecasting of different service lines.

Dick Wei - JP Morgan

Maybe the other way I could ask the question is do you expect the revenue to grow around $1.3 million to $1.5 million, quarter over quarter?

Jun Wang

Not quarter over quarter. I’m just talking about second quarter.

Dick Wei - JP Morgan

Right, so I guess this quarter you have $4 million revenue, next quarter you expect to have roughly $5.4 million of revenue, so of the $1.4 million in incremental revenue, is that still mainly coming out from the subscription business, or is it from some other, the institutional product or the data service products?

Jun Wang

As I mentioned during the -- just now, actually, our subscription services provided to individual customers is still the core business of our business. In Q1 it accounts for 80% of net revenues, and Q4 is 73%. So in this sense, deferred revenue does have a substantial influence on our reported revenues, net revenues. And in this way, when doing a forecast, of course we also analyze cash revenues to be generated, for example, for subscription services provided to individual customers in June. As I mentioned, while this cash revenue will be recognized under U.S. GAAP basically over the service period, whether it’s 12 months or 24 months, even on various different service periods, so we do this kind of calculation.

Dick Wei - JP Morgan

Great, thanks a lot.

Operator

(Operator Instructions) The next question is coming from [John Lye] from the U.S.A., a [business advisor]. Go ahead, please.

John Lye

Two quick questions; one is can you give us some more clarity regarding operating margin going forward, given that the past two quarters there has been quite a bit of I guess digestion of the acquisition that you made in 2006. I just want to get comfortable with the margin going forward, because prior to 2006 the operating margin was quite high.

Jun Wang

We do have very tight cost control activities, so this way even though our revenues have increased substantially, our operating expenses may not increase proportionately to the net revenue, as illustrated in this quarter. So our net revenue increased by 58% but net operating expenses on a non-GAAP basis were almost unchanged.

So in this sense, we believe operating margins may improve as long as we can keep driving the growth of our net revenues.

Just very minor, as I mentioned, in our cost of revenue we account for the website maintenance expenses. In this quarter, it was $525,000. It is a 50% increase over Q4. Q4 it was about $349,000. So this increase, our goal is still to drive as much traffic as we can to our website and also to retain those individual investors as potential customers for current and future services.

In this sense, this website maintenance cost may actually drop down our operating margin, even if these costs keep increasing substantially in the coming quarters.

John Lye

Okay, second question -- this just came on the wire that Eastmoney.com, a Chinese website that provides financial news and information, they raised $500 million in the IPO on NASDAQ later this year. Do you view them as a competitor? Just looking at the numbers here, they have revenue between $11 million to $13 million, and they are trying to get a valuation of $500 million. If we annualize your first quarter revenue, and you are there as well but the market, it is under 200. So my question is do you think Eastmoney.com is a competitor or they are actually in different businesses?

Jun Wang

Eastmoney.com actually is a private business. We are not in a position to comment on their finance figures or operating figures. But we do -- our business model is different because we focus on providing subscription services to individual customers rather than generating advertising revenues from websites. So in this sense, we do not consider Eastmoney.com a competitor.

John Lye

How about in their financial data services and the analytics?

Jun Wang

Analytics to different customers?

John Lye

Are you familiar with this company, Eastmoney.com?

Jun Wang

Yes, we are.

John Lye

So they also provide financial information services and analytics, stock securities analysis as well, so in that regard they are a competitor, no?

Jun Wang

My understanding is that they started to promote these kinds of services just in the past half year, so we are not in a position to comment on their business performance. But on the other hand, as we mentioned we only have, even for our own business, we only have 31,000 paying customers. In terms of close to 100 million stock trading accounts in China, 30,000 is too tiny to comment on. So in this sense, I would say the pie is huge -- it is just how every single player tries to grab its own piece of the pie.

John Lye

Understood. Thank you.

Operator

(Operator Instructions) There are no further questions at this time.

Alice Yeung

All right. That’s all for today’s conference. If you still have any further questions, please call our IR group at 8610-5832-5288, and our e-mail address is ir@jrj.com. Ladies and gentlemen, thank you again for joining us today. Thank you.

Operator

Thank you for your participation in today’s conference. This concludes the meeting. You may now disconnect your line.

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China Direct (ticker: CHND.OB) is a diversified management and consulting company. Our mission is to create a platform to empower medium sized Chinese entities to effectively compete in the global economy. As your direct link to China, our organization serves as a vehicle to allow investors to participate directly in the rapid growth of the Chinese economy.

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