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Sina.com to Move Its Financial Headquarter to HK
Sina.com, a leading portal website of China is planning to relocate its financial headquarter from the United States to Hong Kong. According to Wang Zhidong, CEO and President of Sina.com the removal meant to tone its business development in with that in China's mainland and Taiwan.
Wang Zhidong is also quoted as saying that job cut will be necessary to go along with the strategic development. However the company's current 648 staffs will stay on and there'll be no large number of layoffs in the near future.
Wang Zhidong believes that Sina's listing on the Nasdaq is successful.
Why Sina.com has based its business and market in the US is mainly because Sina's business is not limited to China only. It has made its presence and commitment in the world too. That is why Sina.com has chosen the Nasdaq to go public. Along with the financial headquarter, the Sina Group's CEO and CFO will also move to Hong Kong.
When commenting on the purchasing and merger of dotcom, Wang Zhidong says that the acquisition is costly as well as beneficial. Sina is looking for new partners and plans to tap the online trade and to have the contents on web pages charged. It is said that some contents of Sina's U.S. website have already been charged.
Presently, about 88 percent of Sina's revenue come from online advertisements, among which around 20 to 30 percent are from China's mainland portal. By the end of last December, Sina captures a total of US$122 million in cash, dropping 4 million from last September.
In addition, Sina.com also releases that up to the end of last December it had lost US$5.4 million in the second quarter, or a loss of 13 cents per share. The ad income declined in the second quarter, while the net revenue increased by 5.6 percent to US$7.6 million, up 158 percent over the same period of the previous year.
By PD Online staff member Cui Fang
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