Profile: KongZhong Corp (KONG.O)

KongZhong Corporation (KongZhong), incorporated on May 6, 2002, provides interactive entertainment, media and community services to mobile phone users through second-generation (2G) technology platforms, including short messaging services (SMS), interactive voice response (IVR) and color ring back tone (CRBT), and through 2.5G technology and operating platforms, including wireless application protocol (WAP), multimedia messaging services (MMS) and Java. The Company delivers a range of services that users can access directly from their mobile phones, by using its access code or by choosing an icon or a game pre-loaded in select models of handsets; from a telecommunications operator’s portal or Website, and from its wireless Internet Websites, including Kong.net and Ko.cn. Substantially all of its services are ordered or accessed by users directly through their mobile phones and all services are delivered through mobile phones. The Company’s services are organized in three categories : interactive entertainment, media and community.

KongZhong conducts substantially all of its wireless operations through Beijing AirInbox, Beijing Boya Wuji, Beijing WINT, Beijing Chengxitong, BJXR, Beijing Shiyuan Leya and Mailifang, which are wholly owned by the People’s Republic of China (PRC) citizens or entities. The Company’s subsidiaries include KongZhong Information Technologies (Beijing) Co., Ltd., or KongZhong Beijing, KongZhong China Co., Ltd., or KongZhong China, and Anjian Xingye Technology (Beijing) Co., Ltd., or Beijing Anjian Xingye.

Interactive Entertainment

The Company offers a range of interactive entertainment products, including mobile games, karaoke, electronic books and mobile phone personalization features, such as ringtones, wallpaper, icons, clocks and calendars. It provides its interactive entertainment services through all of its technology platforms. Mobile phone users can download on demand or subscribe for regular downloads of its interactive entertainment services. Some of its most popular interactive entertainment products include pictures and logos and polyphonic ringtones. Mobile phone users can download pictures and logos to personalize the background of their mobile phone screens. Such pictures include cartoons, pets and scenic photos. Its ringtones enable a mobile phone user to personalize their ringtones using the melodies of their favorite songs or special sound effects.

Media

KongZhong’s users can download its media content on either a single-transaction basis or a monthly subscription basis. Media content covers international and domestic news, entertainment, sports, fashion, lifestyle and other special interest areas. Some of its most popular media services include news, entertainment and sports. It offers international and domestic news, delivered in a format easy for the reader to peruse. The Company’s WAP version enables users to easily search for news that interests them. Its entertainment magazine focuses on celebrities and includes star biographies, interviews and photos. Its sports magazine features sports news, game scores and information about sports stars.

Community

The Company’s users can engage in community-oriented activities, such as interactive chatting, message boards, dating and networking. Users may access its community services on a monthly subscription basis or single-transaction basis. Some of its most popular community services include chat and photo albums. It offers a variety of chat services. It has a virtual reality game that allows mobile phone users to choose the lifestyle they dream of and interact with the city’s other inhabitants/players. Its photo albums allow mobile users to post and arrange their photos taken with their mobile handsets into albums accessible via their handsets. Utilizing the WAP technology platform, mobile users can access photo albums in a manner similar to accessing photo albums on the Internet.

The Company competes with Sina Corporation, Sohu.com Inc., TOM Online Inc., or TOM Online, Tencent Technology Limited, Glu Mobile Inc, and China Mobile.