China Stock Profile – CDC Corporation (CHINA)1

Statistics for CHINA:

P/E NA
Long Term EPS Growth 18%
PEG Ratio NA
Net Margin -25%
Average Rating Value 1.86
Average Rating Buy
Average Target Price 2.33
Current Price 3.19
Year to Date Performance 177%
Institutional Ownership NA
Short Interest as % of Float 0.14%

Explanation of Terms

P/E - Price divided by Earnings

Long Term EPS Growth - Long-Term (next 3-5 years) EPS Growth Rate estimated by Wall Street analysts
PEG Ratio – P/E to Growth Ratio. Generally the lower the ratio the more attractive the stock
Net Margin – Net Profit divided by Revenue
Average Rating Value – Based on Ratings given by Wall Street analysts. Generally, the lower the value, the
higher the rating
Average Rating – Based on Ratings given by Wall Street analysts
Average Target Price – Based on Target Price given by Wall Street analysts
Current Price – Current Market Price of stock
Year to Date Performance – Year to Date Performance in Price of stock
Institutional Ownership - % of Shares held by Large Institutions
Short Interest as % of Float – Short Interest in the stock as a % of Equity Float

Chart of CHINA

CHINA Company Profile

CDC Corporation operates as an enterprise software and media company. Its Software segment offers
enterprise software applications and related services. The software suite includes enterprise resource
planning, customer relationship management, supply chain management, order management systems,
1
By H.U.
human resources and payroll management, and business intelligence products. This segment’s products are
designed to support and automate the processes of an organization to help achieve integration of business
and technical information across multiple divisions and organizational boundaries, such as finance,
manufacturing, logistics, human resources, marketing, sales, and customer service. The company’s Global
Services offers information technology services, eBusiness consulting, Web development, and outsourcing
in Australia and the United States; and marketing database and marketing support services principally in
Australia and New Zealand. It provides program management, outsourcing services, application
development, and ongoing support services using a range of technologies.

CDC Games is responsible for the development and operation of massively multiplayer online role-playing
games, which are online games that allow users to interact with one another in a virtual world in China. The
company’s China.com segment encompasses a range of businesses, including Internet media business,
which is focused on online entertainment, and Internet products and services that target users in China via
its portal network; and a Singapore-based travel trade publisher and organizer serving the travel and tourism
industry in the Asia Pacific region. It has operations in North America, Europe, the Middle East, Africa, and
the Asia Pacific region. The company was formerly known as chinadotcom corporation and changed its
name to CDC Corporation in April 2005. CDC Corporation was founded in 1997 and is headquartered in
Hong Kong.

Key Executives of CHINA

Mr. Hak Yung Yip , 56

Founder, Vice Chairman, Chief Exec. Officer, Member of Exec. Committee, Exec. Chairman CDC Software,
Chief Exec. Officer of CDC Games, Chief Exec. Officer of China.com, Exec. Director of hongkong.com Corp.
of CDC Games
Mr. Sean Yu , 43
Chairman of CDC Software China and VP of Devel., CDC Software
Mr. Matthew Lavelle , 42
Chief Financial Officer
Mr. Divesh V. Sisodraker C.A., 40
Chief Exec. Officer of Customer Relationship Management
Mr. Chen Qiyu ,
Admin. Pres of China.com

Analysts’ Estimates

Current Qtr Next Qtr Current Year Next Year

Earnings Estimate
Jun-09 Sep-09 Dec-09 Dec-10
Avg. Estimate 0.06 0.01 0.16 0.17
No. of Analysts 2 2 2 1
Low Estimate 0.05 -0.03 0.07 0.17
High Estimate 0.07 0.05 0.24 0.17
Year Ago EPS 0.04 0.02 0.16 0.16

Analysts estimate earnings growth of 6.3% for CHINA next year.

Recent News Headlines for CHINA

[July 16th] CDC Software Corporation, a unit of Hong Kong-based software and online services company
CDC Corporation announced that it has filed for an initial public offering of 4.8 million American
Depositary Shares at an estimated price of $11 to $13 each.

Proceeds to CDC Software from this offering are expected to be about $43.4 million based on the midpoint
of this price range, and total proceeds are expected to be about $52.1 million.

CDC Corporation will continue to own a majority stake in CDC Software, including a 98 percent voting
interest.

[July 20th] CDC Games, a business unit of CDC Corporation and pioneer of the "free-to-play, pay for
merchandise" model for online games in China, announced that, based on preliminary review of its financial
data and forecasts, it estimates that its revenue for the second quarter 2009 will increase by approximately
50 percent over revenues in the first quarter 2009.

The projected increase is primarily attributed to the rebound of Yulgang metrics after its launch of a major
new version (3.0), called Nan Lin Feng Yun, on March 27, 2009.

"We are very pleased to see a significant rebound in revenue at CDC Games in our second quarter of this
year and believe this trend will continue as a result of the launch of Nan Lin Feng Yun,” said Monish Bahl,
CFO of CDC Games. "We also are excited about the prospects of our anticipated launch of The Lord of the
Rings Online in the second half of this year. With the continued popularity of Yulgang and our anticipated
launch of The Lord of the Rings Online, as well as new planned versions of some of our other games, we
feel optimistic about our prospects for the remainder of 2009 and beyond."
CHINA Financial Statements

Income Statement PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Total Revenue 409,070 402,384 309,528
Cost of Revenue 227,826 212,109 147,462

Gross Profit 181,244 190,275 162,066

Operating Expenses
Research Development 25,909 23,836 19,981
Selling General and Administrative 161,042 172,246 125,500
Non Recurring 57,456 80,152 1,974
Others 11,663 12,657 10,976

Total Operating Expenses 256,070 288,891 158,431

Operating Income or Loss (74,826) (98,616) 3,635

Income from Continuing Operations

Total Other Income/Expenses Net (28,296) (5,032) 15,617
Earnings Before Interest And Taxes (103,122) (103,648) 19,252
Interest Expense 8,981 9,086 3,038
Income Before Tax (112,103) (112,734) 16,214
Income Tax Expense 1,168 10,850 3,062
Minority Interest 1,364 18,551 (2,312)

Net Income From Continuing Ops (111,907) (105,033) 10,840

Non-recurring Events
Discontinued Operations (2,295) - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -

Net Income (114,202) (105,033) 10,840

Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common Shares ($114,202) ($105,033) $10,840

Balance Sheet PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06
Assets
Current Assets
Cash And Cash Equivalents 169,968 151,284 244,069
Short Term Investments 33,454 78,498 44,905
Net Receivables 80,714 91,035 94,498
Inventory - - -
Other Current Assets 11,944 22,930 -

Total Current Assets 296,080 343,747 383,472

Long Term Investments 23,028 40,841 112,262
Property Plant and Equipment 15,392 19,659 9,540
Goodwill 155,083 215,783 205,050
Intangible Assets 107,287 132,605 104,069
Accumulated Amortization - - -
Other Assets 5,166 6,390 8,351
Deferred Long Term Asset Charges 41,859 44,576 34,689

Total Assets 643,895 803,601 857,433

Liabilities
Current Liabilities
Accounts Payable 73,853 89,206 77,570
Short/Current Long Term Debt 210,415 33,892 18,991
Other Current Liabilities 61,977 67,989 46,033

Total Current Liabilities 346,245 191,087 142,594

Long Term Debt - 174,905 167,645
Other Liabilities 13,087 12,878 4,018
Deferred Long Term Liability Charges 27,624 28,496 16,041
Minority Interest 16,443 37,411 72,512
Negative Goodwill - - -

Total Liabilities 403,399 444,777 402,810

Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 28 28 28
Retained Earnings (439,030) (324,828) (217,290)
Treasury Stock (56,118) (54,646) (32,102)
Capital Surplus 722,890 713,096 692,143
Other Stockholder Equity 12,726 25,174 11,844

Total Stockholder Equity 240,496 358,824 454,623

Net Tangible Assets ($21,874) $10,436 $145,504

Cash Flow Statement PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Net Income (114,202) (105,033) 10,840

Operating Activities, Cash Flows Provided By or Used In

Depreciation 42,821 35,931 22,387
Adjustments To Net Income 104,131 102,060 4,402
Changes In Accounts Receivables 4,753 (14,188) (6,402)
Changes In Liabilities (19,365) (1,253) 14,150
Changes In Inventories - - -
Changes In Other Operating Activities 7,459 (8,233) (6,047)

Total Cash Flow From Operating Activities 25,597 9,284 39,330

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures (4,681) (12,515) (4,403)
Investments 77,233 21,799 406
Other Cashflows from Investing Activities (25,992) (108,273) (47,025)

Total Cash Flows From Investing Activities 46,560 (98,989) (51,022)

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid (16,450) - -
Sale Purchase of Stock (3,663) (10,366) (19,558)
Net Borrowings (29,096) 15,092 157,253
Other Cash Flows from Financing Activities - - -

Total Cash Flows From Financing Activities (49,209) 4,726 137,695

Effect Of Exchange Rate Changes 527 3,649 3,826

Change In Cash and Cash Equivalents $23,475 ($81,330) $129,829

Reference

Yahoo Finance and China Analyst