China Finance Online Co. Q4 2005 Earnings Conference Call Transcript (JRJC)

China Finance Online Co. (JRJC)
Q4 2005 Earnings Conference Call
February 13th 2006, 8:00 PM.

Executives:

Jing Wu, Investor Relations Manager
Zhao Zhiwei, Chief Executive Officer
Sam Qian, President, Chief Financial Officer

Analysts:

Youssef Squali, Jefferies & Company
John Bishop, XFN Asia
Jeff Keith, Acorn Global

Presentation

Operator

Thank you for holding, ladies and gentlemen, and welcome to the China Finance Online Fourth Quarter and Full Year 2005 Financial Results. At this time all participant lines are in a listen-only mode. The presentation will be followed by a question-and-answer session, and instructions will be provided at that time. I would now like to turn the conference over to your host, Ms. Jing Wu from China Finance Online. Please go ahead. Thank you.

Jing Wu, Investor Relations Manager

Thank you, operator. Welcome everyone, to China Finance Online fourth quarter and full year 2005 financial results. Today with me in the conference are Mr. Zhao Zhiwei, our Chief Executive Officer, and Mr. Sam Qian, our President and Chief Financial Officer. After market closed today, the Company issued a press release containing the financial results for the fourth quarter and full year 2005. The purpose of this conference call is to provide the investors with further detailed information regarding these financial results. Following our formal remarks, we’ll be happy to take any questions you might have.

Before we begin, it is my duty to remind you that during today’s conference call, we might make forward-looking statements. This announcement contains forward-looking statements. These statements are made under the Safe Harbor provision of the U.S. Private Securities and Litigation Reform Act of 1995. Statements that are not historical facts, including statements about our beliefs, 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 statements. Potential risks and uncertainties include, but are not limited to, China Financial Online’s historical and possible future losses, limited operating history, uncertain regulatory landscape in the People’s Republic of China, fluctuations in corporate operating results, failing to successfully complete against the new and existing competitors, and the Company’s reliance on China Financial Online’s relationship with Chinese Stock Exchanges and raw data providers. Further information regarding these and other risks is included in China Financial Online’s annual report on form 20-F for the year ended December 31, 2004 and other filings with the Securities and Exchange Commission. China Financial Online does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

Now, I’m going to pass this call to Mr. Zhao Zhiwei, our Chief Executive Officer.

Zhao Zhiwei, Chief Executive Officer

(Foreign Language)

(Translated by another Speaker)

Good morning, and good evening. Thank you for joining us today, China Financial Online’s fourth quarter and full year 2005 conference call. In the year 2005, the Chinese Stock Market is long time weak, which had some impact on our traditional subscription business. However, I’m still glad to see that our net revenue grew by 24% from $6.02 million for the full year 2004 to $7.48 million in our net income, which was $4.62 million for the full year 2005.

Looking back to the year 2005, China Financial Online has been working on enriching our products and in services so to better meet the diversified demands of our customers and to offset the impact from the Chinese stock market. We carried out a comprehensive financial information database plan for targeting the sophisticated institutional investors in early January. A brand new financial service package “Tao of Wealth