China.com's New Expectation on Sales

China.com's New Expectation on Sales. Check it out:
(Comtex Business Via Thomson Dialog NewsEdge) BEIJING, Sep 29, 2006 (SinoCast China IT Watch via COMTEX) --China.com, the company under the aegis of CDC Corporation, has issued an updated advisory to shareholders about the impact that Chinese telecom regulations issued in July will have on its financial results.



The new policies include requiring subscribers to provide double confirmations for orders and MVAS providers to send billing reminders to subscribers, and have resulted in China.com having fewer new subscribers for its services and higher cancellation rates. In addition, costs to acquire new users have increased.

China.com says it anticipates that both the revenue and net profit of its MVAS business unit will be significantly affected this quarter. The following table sets out the unaudited revenue for the Company's MVAS business unit for the months of July and August 2006 as compared with the same months in 2005.

The company says to further reduce costs and improve operational efficiencies it initiated a headcount reduction program in August, reducing the workforce of its mobile value- added services business unit by approximately 30 per cent.

China.com achieved quarterly revenue levels and its 22nd consecutive quarter of profits with total revenues of HKD 108 million, up 24 percent when compared to Q2 2005.

The company says its online games initiative continues to achieve strong growth, the portal continues to hit key operational matrices, and the MVAS business has undergone three sequential quarters of double-digit percentage revenue growth and has progressively diversified away from SMS revenues to a point where revenues from advanced mobile products such as MMS and WAP represent 60 percent of total MVAS revenue.

China.com has established a wholly-owned subsidiary, CDC Games Limited, to hold all current and future online game business assets and investments. With strong growth expected in China's online gaming market as well as with the company's online game offering, China.com plans to focus more resources to this fast-growing sector.

The company's mobile value-added services (MVAS) business continued to show healthy growth in the third quarter of 2005 with a 15 percent increase in total revenue over Q2 2005.

Sequential quarterly revenue increases from Advanced Mobile Products amounted to the following: Multimedia Messaging Services (MMS) - up 80percent, Interactive Voice Response (IVR) - up 61percent, and Wireless Application Protocol (WAP) - up 27percent.

The company's MVAS marketing strategy focused on cross- selling its products and services toward niche consumer groups across various platforms. The strategy resulted in meaningful ranking increases of some of the company's key WAP products on China Mobile's WAP product listings.

China.com is a mobile applications, Internet services and online game company in China. Its principle business areas are Mobile Value Added Services (MVAS), online entertainment, and Internet services that target users in China.

CDC Corporation is focused on enterprise software, mobile applications and online games. As part of its strategic review, the company has reorganized into two primary operating business units, CDC Software and China.com Inc.

Its principle business areas are Mobile Value Added Services (MVAS), online entertainment, and Internet services that target users in China. In the MVAS arena, China.com provides products and services on various platforms, including Short Messaging Service (SMS), Multimedia Messaging Service (MMS), Wireless Application Protocol (WAP) and Interactive Voice Response (IVR). The Company also offers online games and a broad range of online products and services via its portal network (www.china.com; www.hongkong.com).

From Nanfang Daily, Page 1, Thursday, September 28, 2006
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As of Monday, 09-25-2006 23:59, the latest Comtex SmarTrend(SM) Alert,
an automated pattern recognition system, indicated an UPTREND on
05-11-2006 for CHINA @ $4.89.

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