Fexon Technology Ltd: 968 million net profit but the interest 406.3

Fexon Technology Ltd: If Alibaba first below offer price because investors expected to report poor, but in Alibaba issued a substantial increase in the annual report earnings after the stock below Why is the second time a price?

Alibaba, the first page of the annual report on the disclosure, its 2007 operating income was 2.163 billion yuan, an increase of 59%, mainly due to the number of paying members, and the average consumption has increased. Net income for 968 million yuan, an increase of 340 percent, and earnings per share converted into Hong Kong dollars after 0.2041 Hong Kong dollar, an increase of 358 percent, and total registered users increased by 40%, to 27.6 million, the total enterprise shops increased by 43% to 300 10,000, the total paid membership increased by 39 per cent, more than 305,000.

Alibaba Chief Executive Officer Wei Zhe is a conference call, said that in 2007 the profit is far more than the company promised in the prospectus book of 6.2 billion, more than the major investment bank forecasts.

But Alibaba 968 million yuan in net profit, 406.3 million yuan from interest income, the main business of the only net profit of 561 million yuan, which does not include a government grant over 1,720 million. Alibaba interest income, mainly from its pre-IPO freeze funds of up to 420 billion.

"According to domestic accounting standards, interest income must be deducted the cost of issue, but as a Hong Kong can directly profit that is the concern of investors, net of interest income, Alibaba's operating profit is not offering brochures promised. "

But even more worrying is that investors Alibaba subscriber growth rate of decline in 2006, Alibaba subscriber growth rate of 55%, but in 2007, the growth rate declined to 39 percent.(Fexon Technology Ltd)