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REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE
ACT OF 1934
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OR
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ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
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OR
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
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OR
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SHELL
COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE
ACT OF 1934
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SEC
1852 (12-05)
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Persons
who respond to the collection of information contained in this form
are
not required to respond unless the form displays a currently valid
OMB
control number.
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In
thousands, except per share, per ADS and
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For
the year ended December 31,
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|||||||||||||||||||||||
operating
data and percentages
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2002
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2003
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2004
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2005
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2006
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2006(1)
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||||||||||||||||||
Statement
of operations data
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Total
net revenues:
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||||||||||||||||||||||||
Enterprise
software
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RMB 93,375
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RMB 113,791
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RMB
188,720
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RMB
203,488
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RMB
116,833
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US$
14,971
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||||||||||||||||||
Software
development services
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14,400
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19,045
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12,723
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35,700
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36,017
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4,615
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||||||||||||||||||
Computer
hardware sales
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258
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72
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104
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678
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398
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51
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||||||||||||||||||
108,033
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132,908
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201,547
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239,866
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153,248
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19,637
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Cost
of revenues:
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||||||||||||||||||||||||
Enterprise
software
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(1,115 | ) | (1,532 | ) | (1,528 | ) | (495 | ) |
-
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-
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||||||||||||||
Software
development services
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(3,534 | ) | (4,939 | ) | (2,970 | ) | (18,192 | ) | (16,805 | ) | (2,153 | ) | ||||||||||||
Computer
hardware sales
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(216 | ) | (48 | ) | (9 | ) | (482 | ) | (134 | ) | (17 | ) | ||||||||||||
(4,865 | ) | (6,519 | ) | (4,507 | ) | (19,169 | ) | (16,939 | ) | (2,170 | ) | |||||||||||||
Gross
profit
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103,168
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126,389
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197,040
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220,697
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136,309
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17,467
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||||||||||||||||||
Operating
expenses:
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||||||||||||||||||||||||
Selling
expenses
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(13,604 | ) | (13,674 | ) | (15,977 | ) | (25,752 | ) | (13,604 | ) | (1,743 | ) | ||||||||||||
General
and administrative expenses
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(12,195 | ) | (56,911 | ) | (36,572 | ) | (49,538 | ) | (65,928 | ) | (8,448 | ) | ||||||||||||
Research
and development expenses
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(4,108 | ) | (2,691 | ) | (4,819 | ) | (11,249 | ) | (29,825 | ) | (3,822 | ) | ||||||||||||
Total
operating expenses
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(29,907 | ) | (73,276 | ) | (57,368 | ) | (86,539 | ) |
(109,357
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) |
(14,013
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) | ||||||||||||
Government subsidies | 458 | 211 | 1,340 | 447 | 705 | 90 | ||||||||||||||||||
Income
from operations
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73,719
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53,324
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141,012
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134,605
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27,657
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3,544
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||||||||||||||||||
Interest
income
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619
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1,220
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3,768
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17,625
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19,302
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2,473
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In
thousands, except per share, per ADS and
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For
the years ended December 31,
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|||||||||||||||||||||||
operating
data and percentages
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2002
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2003
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2004
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2005
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2006
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2006(1)
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Income
before provision for income taxes minority interests and equity
in
earnings of an affilliate
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RMB 74,338
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RMB 54,544
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RMB
144,780
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RMB
152,230
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RMB
46,959
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US$
6,017
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||||||||||||||||||
Provision
for income taxes
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(2,061 | ) | (4,116 | ) | (1,823 | ) | (626 | ) | (1,031 | ) | (132 | ) | ||||||||||||
Income
before minority interest and equity in earnings of an
affiliate
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72,277
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50,428
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142,957
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151,604
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45,928
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5,885
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||||||||||||||||||
Minority
interest
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(7,299 | ) | (9,239 | ) | (9,006 | ) |
—
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-
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-
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|||||||||||||||
Equity
in earnings of an affiliate
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79
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—
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—
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—
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-
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-
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||||||||||||||||||
Net
income
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65,057
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41,189
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133,951
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151,604
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45,928
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5,885
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Net
income per share and ADS(2):
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Basic
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2.96
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1.82
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4.96
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4.39
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1.32
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0.17
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Diluted
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2.96
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1.82
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4.74
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4.25
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1.30
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0.17
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Cash
flow data:
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Net
cash provided by operating activities
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56,984
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87,244
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143,270
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146,372
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40,832 | 5,232 | ||||||||||||||||||
Depreciation
and amortization
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1,126
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874
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2,120
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5,293
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9,137
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1,171
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Net
cash provided by (used in) investing activities
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15,613
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(39,629
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) | (179,405 | ) | (110,851 | ) | (176,483 | ) | (22,614 | ) | |||||||||||||
Net
cash provided by (used in) financing activities
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(30,531 | ) |
70,250
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565,597
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2,044
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6,328
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811
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As
of December 31,
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2002
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2003
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2004
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2005
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2006
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2006(1)
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Balance
sheet data:
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Cash
and cash equivalents
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RMB 49,666
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RMB167,531
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RMB696,993
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RMB731,474
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RMB598,648
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US$76,709
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Trade
receivables, net of allowance for doubtful debts, from:
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external
customers
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28,179
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31,096
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43,913
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45,996
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43,142
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5,528
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related
parties
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9,000
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31,885
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30,940
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29,752
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3,963
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508
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Term
deposits
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24,832
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65,664
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150,913
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207,000
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307,209
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39,365
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Total
assets
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133,287
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323,975
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1,222,182
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1,345,773
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1,365,289
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174,945
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||||||||||||||||||
Deferred
revenue
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44,420
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70,608
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97,230
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67,886
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26,383
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3,381
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Total
liabilities
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56,581
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94,234
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131,130
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98,808
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60,309
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7,728
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||||||||||||||||||
Mezzanine
equity
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—
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46,937
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—
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—
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-
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-
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||||||||||||||||||
Total
shareholders’ equity
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68,671
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165,530
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1,090,452
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1,246,365
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1,304,980
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167,217
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||||||||||||||||||
Number
of ordinary shares outstanding
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—
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22,780,000
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34,391,834
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34,991,834
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34,991,834
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34,991,834
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For
the convenience of the reader, the RMB amounts are expressed in
U.S.
dollars at the rate of RMB7.8041 to US$1.00, the noon buying rate
in
effect on December 29, 2006 as quoted by the Federal Reserve Bank
of New
York.
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(2)
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On
November 9, 2004, our shareholders approved a 4-for-1 share split.
All
shares and per share data have been restated to give retroactive
effect to
this share split. One ADS represents one ordinary
share.
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•
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executing
the inspection and quarantine, appraising and supervising of
import and
export commodities;
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•
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implementing
the quarantine and supervision for the import and export of animals
and
plants and the inspection, supervision and administration of
the sanitary
and food quality;
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•
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administering
health registrations of import and export food products and their
production units and external registration for export enterprises;
administering the import and export inspection and quarantine
marks,
import safety licenses, and export quality licenses; and implementing
the
import and export-related quality authentication and
accreditation;
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•
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administering
the issuance of Origin Certificates for commodities and the general
certificates of origin;
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•
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formulating
the development plan of technologies for commodity inspection
and
quarantine; and
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•
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developing
international cooperation and technology exchanges related to
commodity
inspection and quarantine and carrying out the implementation
work
relating to technological barriers to trade, as
stipulated.
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Location
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Office
space
(in
square meters)
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Number
of employees
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Guangdong
Province
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Dongguan
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921.69
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44
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Guangzhou
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120.85
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60
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Beijing
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551.65
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37
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Shanghai
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139.00
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12
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Total
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1,733.19
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153
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Year
ended
December
31,
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2004
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2005
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2006
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Total
net revenues:
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|||
Enterprise
software
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93.6%
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84.8%
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76.2%
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Software
development
services
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6.3
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14.9
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23.5
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Computer
hardware
sales
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0.1
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0.3
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0.3
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Cost
of revenues:
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|||
Enterprise
software
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0.7
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0.2
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-
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Software
development
services
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1.5
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7.6
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11.0
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Computer
hardware
sales
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–
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0.2
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0.1
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Gross
profit
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97.8
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92.0
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88.9
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Year
Ended
December
31,
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2004
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2005
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2006
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Operating
expenses:
|
|||
Selling
expenses
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7.9
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10.7
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8.9
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General
and administrative expenses
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18.2
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20.6
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43.0
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Research
and development expenses
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2.4
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4.7
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19.5
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Total operating expenses |
28.5
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36
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71.4
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Government
subsidies
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0.6
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0.2
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0.5
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Income
from
operations
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69.9
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56.2
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18.0
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Interest
income
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1.9
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7.3
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12.6
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Income
before provision for income taxes and minority
interest
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71.8
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63.5
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30.6
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Provision
for income
taxes
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0.9
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0.3
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0.6
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Income
before minority
interests
|
70.9
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63.2
|
30.0
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Minority
interests
|
4.4
|
–
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Net
income
|
66.5%
|
63.2%
|
30.0%
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For
the year ended December 31
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2005
|
2006
|
2006
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Audit
fees(1)
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RMB2,463,000
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RMB3,789,000
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US$486,000
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Audit
related
fees
|
372,000
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526,000
|
67,000
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Total
|
RMB2,835,000
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RMB4,315,000
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US$553,000
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(1)
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Audit
fees are the aggregate fees billed for each of the fiscal years
for
professional services rendered by our principal accountants for
their
audit and review of our annual financial statements and interim
financial
statements in connection with the statutory requirement and our
initial
public offering in 2004.
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Exhibit
Number
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Description
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12.1
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Certification
of Chief Executive Officer pursuant to SEC Rule
13a-14(a)
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12.2
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Certification
of Chief Financial Officer pursuant to SEC Rule
13a-14(a)
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13.1
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Certification
of Chief Executive Officer pursuant to SEC Rule
13a-14(b)
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13.2
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Certification
of Chief Financial Officer pursuant to SEC Rule
13a-14(b)
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NINETOWNS INTERNET TECHNOLOGY GROUP COMPANY LIMITED |
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By: /s/ Shuang Wang |
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Name: Shuang Wang |
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Title: Chief Executive Officer |