Profile: China Finance Online Co Ltd (JRJC.OQ)
7 Mar 2014
China Finance Online Co. Limited (CFO Hong Kong), incorporated in November 1998, is a provider of vertically integrated financial services, including news, data, analytics and brokerage through Web portals, software systems and mobile handsets. The Company has two principal operating segments: online financial data subscription service and other related services, and brokerage service. Through the Web portals, http://www.jrj.com and http://www.stockstar.com, the Company provides individual users with subscription-based service packages that integrate financial and listed company data, information and analytics from multiple sources with features and functions, such as data and information search, retrieval, delivery, storage and analysis. These features and functions are delivered through its software available by download, through Internet or through mobile handsets. Through its subsidiary, Shenzhen Genius Information Technology Co. Ltd. (CFO Genius), the Company provides financial information database and analytics to institutional customers, including domestic securities and investment firms. Through its subsidiary, Daily Growth Securities Limited (Daily Growth Securities), CFO Hong Kong provides securities brokerage services for stocks listed on the Hong Kong Stock Exchange.
The Company’s service offerings to users are used by and targeted at a range of investors in China, including individual investors, professional investors, high net worth individuals, other financial professionals, such as investment bankers, stock analysts and financial reporters, and middle class individuals. It offers a range of data and information regarding China’s and Hong Kong’s listed company stocks, bonds, mutual funds and stock index futures. It offers more than basic financial data, such as price and trading information and provide its subscribers with economic and financial news, detailed historical data and information, financial analysis tools, market coverage and listed company analysis and online forums.
The Company’s information platform integrates data and information from multiple, credible sources with features and functions, such as data and information search, retrieval, delivery, storage and analysis. It has established online bulletin boards and discussion forums where users can share with each other views on stocks and trends in the financial markets in China. In addition, it has introduced stock alert services that send messages to its users’ mobile phones alerting them of changes in stock prices and other trading related information of their interest, according to their pre-set query parameters, allowing them to extend their experience with its services beyond the Internet. It provides its subscribers and users access to real-time stock quotes, news and updated research reports to allow them to stay current with the latest market developments. Its research tools and its Website are designed with a screen layout, menu options and displays.
The Company operates two finance portals in China: www.jrj.com and www.stockstar.com. JRJ is the abbreviation of Jin Rong Jie, which translates the financial industry in Chinese. As of December 31, 2010, it had a total of approximately 20.2 million registered user accounts. The Company’s Website content and its research tools are the key components of its information platform. Its Websites have four primary functions: to attract visitors and market the Company’s subscription-based service offerings; to store content and serve as an integral part of its information platform; to serve as download platforms for its service offerings, and to display online advertisements. CFO Hong Kong offers a significant portion of its Website content free of charge. This free content includes real-time stock quotes, trading volumes, pricing indicators for listed companies in China, and market news from the Shanghai, Shenzhen and Hong Kong Stock Exchanges, as well as on the data, including market information, trading data and other information data related to Stock Index Futures from the China Financial Futures Exchange (CFFEX). Through its Websites, users can also participate in online forum discussions and bulletin boards. Its Websites also have a marketing function for its subscription-based service offerings. The Company’s content and features are accessible through its research tools, some of which are Web-based and others are computer based. Subscribers to its Web-based research tools are required to register and maintain personal accounts with the Company’s Websites. These subscribers can store important information they viewed and analytical results they obtained in their personal accounts maintained at its Websites, and later review that information and results using the same screen layouts and menu options its Websites provide.
The Company collects, processes, and through its research tools and its Website content, provides to its subscribers financial analysis tools, real-time and historical data, news, research reports and online forums in one integrated information platform, allowing them to make investment decisions with respect to all of China’s and Hong Kong’s listed company stocks, bonds, mutual funds and stock index futures based on specifications determined by investors. The Company offers subscription-based services on a single information platform that integrates data and information from multiple sources with features and functions, such as data and information search, retrieval, delivery, storage and analysis. It delivers these features and functions using software tools and mobile handsets that it has developed, which the Company refers to as research tools. Its research tools combine financial analysis tools that permit users to calculate and analyze quantitatively financial data; current and historical financial data and information for China’s and Hong Kong’s listed company stocks, bonds, mutual funds and stock index futures; categorized news and research reports, and online forums and bulletin boards.
CFO Hong Kong’s service offerings are divided into three categories: Securities Market Information, Technical Analysis and Fundamental Analysis. As of December 31, 2010, the Company had a total of approximately 156,000 active paying individual subscribers. Active paying individual subscribers refer to registered users who subscribe to one of its fee subscription-based services offered by either www.jrj.com or www.stockstar.com by download or through mobile devices. Its financial analysis tools are research tools that provide subscribers with the ability to quantitatively calculate and analyze financial data, which include securities market data analysis tools, Technical Analysis and Fundamental Analysis. The Company’s Securities Market Data service packages are developed on the basis of Level II quotes licensed from the Shanghai and Shenzhen Stock Exchange. In April 2010, the Company was certified by Shenzhen Securities Information Co., Ltd. to develop service packages based on Level II quotes, and upgrade the features and functions of the Company’s products.
Technical Analysis involves researching historical price and volume data, patterns and trends to predict the performance of a given stock. This type of analysis focuses on chart formations and formulas in identifying major and minor trends to recognize buying opportunities and exit points. Fundamental Analysis involves examining the Company’s financials and operations, especially sales, earnings, growth potential, assets, debt, management, products and competition. Fundamental Analysis takes into consideration only those variables that are directly related to the Company itself, rather than the overall state of the market or technical analysis data.
The Company’s integrated information platform offers subscribers interactive charts, quotes, reports and indicators on over 4,000 securities, including company stocks, bonds, warrants and mutual funds, listed on China’s Shanghai, Shenzhen and Hong Kong Stock Exchanges. It also offers its subscribers detailed historical data and information on listed companies, mutual funds and bonds. The Company’s news feature allows users to search and view economic and financial news, and information from China and worldwide. It does not report news itself. Through its integrated information platform, the Company’s users can view financial news letters and analytical reports from a number of China’s securities professionals. It hosts several online bulletin boards on its Websites, by which Chinese licensed securities advisors offer their commentaries on a variety of topics ranging from macroeconomic conditions to performance of individual stocks, bonds, mutual funds and stock index futures.
Through Daily Growth Securities, the Company provides certain brokerage and related services to its customers who invest in stocks listed on Hong Kong Stock Exchange. During the year ended December 31, 2010, brokerage and related services provided by Daily Growth Securities and Daily Growth Futures represented approximately 5% of the Company’s total net revenues, and such services were not part of the Company’s core business in 2010.
China Finance Online Co Ltd
9th Floor Towr C, Corporate Sq
No. 35 Financial Street
BEIJING BEJ 100033