KONG Kongzhong Corporation

Exchange

NASDAQ

Sector

Technology

Industry

Telecommunications Equipment

Market Cap.

289.0M

Excellent Cash Return on Invested Capital over the past 5 years

KONG has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

KONG has created $31.34 of cash for every $100 invested.

Figures in USD. Fiscal year ends in December

	2007	2008	2009	2010	2011
Free Cash Flow	1.39M	10.64M	13.69M	24.30M	31.54M
divided by
Invested Capital	48.26M	24.69M	37.12M	60.78M	93.16M
Cash ROIC	2.88%	43.11%	36.88%	39.97%	33.86%

Very Poor Return on Equity over the past 5 years

KONG has shown an inability to deliver results for shareholders. This could be due to poor management, KONG operating in a highly competitive industry, or having a weak business in general.

KONG has generated a $0.29 loss for every $100 of Shareholders' Equity.

Figures in USD. Fiscal year ends in December

	2007	2008	2009	2010	2011
Net Income	2.83M	-20.66M	12.58M	11.92M	-7.65M
divided by
Stockholders' Equity	170.48M	160.69M	173.04M	213.94M	246.18M
Return on Equity	1.66%	-12.86%	7.27%	5.57%	-3.11%

Excellent Business Performance over the past 10 years

KONG has been able to maintain profitability in good times and bad. This could mean KONG has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

KONG has created positive free cash flow for 9 or more of the past 10 years.

Figures in USD. Fiscal year ends in December

	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011
Free Cash Flow	-872,009.00	1.10M	13.41M	27.42M	25.49M	1.39M	10.64M	13.69M	24.30M	31.54M