During China Finance Online's (ticker: JRJC) Q3 2005 earnings conference call late last week an analyst pressed President and CFO Zhan Qian about his company's prospects. Management of the online financial information provider continues to point to the weak domestic Chinese stock market in explaining its weak results and diminishing subscribers. But according to the analyst the Shanghai stock market index was strong during Q3 and the company's results were still weak. So is the company planning more advertising or marketing initiatives to improve results? Here is President and CFO Zhan Qian's response:
You said the stock market improves quite a lot in the third quarter, but actually we see some capulation (ph). If you look at the average, the stock market level, the Shanghai stock exchange index, the second quarter’s average index level is pretty much in line with the third one. So, the stock market is less volatile in third quarter in my view, but by not much. And the company is aware that the subscription services is related to the stock market performance. That’s why we have devoted many of our resources into other financial service areas, such as the personal finance, which is a target that has a much broader mass market, and advertising. And we think those two new drivers will help us to deviate from the fluctuation and the volatility of the financial market in China. The company has no intention to predict and forecast the financial stock market of China, and so that’s why, even though, yes, we are aware of many of the problems in the stock market in [inaudible], but we don’t pass on the stock market.
…the company has been actively looking for new businesses that are less correlated with the stock market.
(Quotes are from the CCBN StreetEvents transcript.)